Additional Information Regarding setting a 112(d)(2) MACT standard Penny Lassiter to: Cortney

_ Higgins 03/24/2011 05:21 PM Cc: Wendy Blake, Mike Thrift, Nick Parsons, Mary Kissell History: This message has been forwarded. Cortney, Per our discussion yesterday on the RTR package, where you asked the question regarding setting MACT standards for certain P&R I categories where we have found risks to meet the ample margin of safety, I conferred with OGC this morning and relayed to them your interest in a writeup on this position. OGC suggested that I send you the following information, and then, we can discuss this point further with them on the phone tomorrow morning during our 10:30 am scheduled call.

Final Petroleum Refineries RTR rule - January 2009 states: "The requirements for heat exchange systems are appropriately developed under CAA section 112(d)(2) because a MACT standard had not been previously developed for this emissions source." (see pg. 47 of the attachment) This statement regarding setting a (d)(2) MACT standard is made in the context of the refinery rule where we find that the risks after implementation of the MACT standard
p rovides an ample margin of safety: "The maximum source category MIR remaining after implementation of MACT is 30-in-1 million, and the annual cancer incidence is estimated to be between 0.03 and 0.05 excess cancer cases per year. After implementation of heat exchange system MACT, there are an estimated 440,000 p eople exposed to risks exceeding 1-in-1 million for the source category. Additional controls for heat exchange systems would not reduce the maximum facility MIR and would reduce cancer incidence by approximately 0.0003 cases per year (i.e., p reventthree cancer cases every 10,000 years) at an additional cost of over $600 million per cancer incidence avoided." (see pg. 23 of the attachment)

Rules
Proposed Rule Final Rule 112 Area Source Rule 112 Major Source 129 Rule Technology Rules/Residual Risk Rule Name Final residual risk / technology review rule for petroleum refineries; rule also sets 112(d)(2)/(d)(3) MACT standard for cooling towers Date Due 01 / 16 / 2009 Reminder(s) To

Comments Final residual risk / technology review for petroleum refineries source category. The final rule also sets a MACT standard for cooling towers under 112(d)(2)/(d)(3). Jan Tierney is the ARLO contact Attachments

Portland Cement Final Rule (8/2010) - preamble discussion at 75 Fed. Reg. 54,987

" e . PM Emissions from Kilns Particulate matter serves as a surrogate for non-volatile metal HAP (a determination upheld for this source category in N ational Lime Ass’n , 233 F. 3d at 637-39). Existing and new major sources are presently subject to a PM limit of 0.3 lb/ton of feed which is equivalent to 0.5 lb/ton clinker. EPA is amending this standard for major sources, and also adding PM standards for existing and new area source cement kilns. In all instances, EPA is revising these limits because they do not represent MACT, but rather a level which is achievable by the bulk of the industry. See 63 FR at 14198 (March 24, 1998); see also 233 F. 3d at 633 (indicating that thestandards for PM were likely legally deficient but that the argument had not been properly
p reserved for the court to adjudicate). This is not legally permissible. Brick MACT , 479 F. 3d at 880-81. EPA thus does not accept the argument of some commenters that EPA may only amend promulgated MACT standards by means of the periodic review procedures of section 112 (d) (6), which does not include re-determining floor levels. Section 112 (d)(6)does not indicate that it is the exclusive means of amending MACT standards, and in particular does not speak to a situation where an original floor was palpably short of statutory requirements and where that floor became the ultimate standard. EPA consequently believes it has discretion to reconsider and redo the MACT floor analysis for PM, and to amend the standard as appropriate."
Penny Lassiter Group Leader Refining and Chemicals Group (D205-01) Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. EPA Research Triangle Park, NC 27711 (919) 541-5396