----- Forwarded by Melanie King/RTP/USEPA/US on 08/10/2010 06:51 PM

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|Melanie King/RTP/USEPA/US

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|"Bromberg, Kevin L." <kevin.bromberg@sba.gov>

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|"Lee, Amanda I." <Amanda_I._Lee@omb.eop.gov>, "Higgins, Cortney"

<Cortney_Higgins@omb.eop.gov>, Fred Talcott/DC/USEPA/US@EPA, |

|Nancy.Johnson@hq.doe.gov, RobertJ Wayland/RTP/USEPA/US@EPA,

Stefan.Osborne@trade.gov, "Grahame, Thomas" <Thomas.Grahame@HQ.DOE.GOV>,

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|Michael Horowitz/DC/USEPA/US@EPA

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|07/26/2010 03:56 PM

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|RE: Cost/Ton Major Sources and Area Sources RICE

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I separated the estimated reductions out into subcategories. Could you be

more specific about where you are looking for cost per ton numbers, because

for example for MACT floor, we do not consider cost, therefore we do not

generate cost/ton numbers for the floor. When we look above the floor, we do

look at the cost/ton numbers, which I provided already.

So for major sources, we only went above the floor for 4SRB 300-500 HP, and I

have given you those cost per ton numbers. Are you mainly interested in the

numbers for area sources? I have given you the cost/ton numbers for area

sources that look at what the cost/ton is for going beyond GACT and having an

emission limit based on the use of add-on controls. If we had a limit that

was based on engine-out emissions without the use of add-on controls, there

would be no reductions estimated and therefore we would not be able to

determine a cost/ton.

(See attached file: Existing SI RICE NESHAP Impacts summary

6-24-2010.xls)

Melanie King

Energy Strategies Group

Sector Policies and Programs Division

Office of Air Quality Planning and Standards U.S. Environmental Protection

Agency

Mail Code D243-01

RTP, NC 27711
Phone: (919) 541-2469

Fax: (919) 541-5450

king.melanie@epa.gov

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|"Bromberg, Kevin L." <kevin.bromberg@sba.gov>

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|Melanie King/RTP/USEPA/US@EPA

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|"Lee, Amanda I." <Amanda_I._Lee@omb.eop.gov>, "Higgins, Cortney"

<Cortney_Higgins@omb.eop.gov>, Fred Talcott/DC/USEPA/US@EPA, |

|<Nancy.Johnson@hq.doe.gov>, RobertJ Wayland/RTP/USEPA/US@EPA,

<Stefan.Osborne@trade.gov>, "Grahame, Thomas" <Thomas.Grahame@HQ.DOE.GOV> |

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|07/26/2010 12:50 PM

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|RE: Cost/Ton Major Sources and Area Sources RICE

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I've seen this file before. This does not provide the cost/ton for each

subcategory. It does provide the total NOx reductions, for example for area

sources 300-500 HP - but not broken into the three relevant

subcategories: 2SLB, 4 SLB and 4SRB.

We would prefer the cost/ton in spreadsheet form. We could use this before

tomorrow's call.

Also - it would be nice to have the alternatives presented also - cost/ton

with and without catalyst.

Thx

Kevin

-----Original Message-----

From: King.Melanie@epamail.epa.gov [mailto:King.Melanie@epamail.epa.gov]

Sent: Monday, July 26, 2010 12:36 PM

To: Bromberg, Kevin L.

Cc: Lee, Amanda I.; Higgins, Cortney; Talcott.Fred@epamail.epa.gov;

Nancy.Johnson@hq.doe.gov; Wayland.Robertj@epamail.epa.gov;

Stefan.Osborne@trade.gov; Grahame, Thomas

Subject: RE: Cost/Ton Major Sources and Area Sources RICE

(See attached file: Existing SI RICE NESHAP Impacts 6-24-2010.xls)
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|"Bromberg, Kevin L." <kevin.bromberg@sba.gov>

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|Melanie King/RTP/USEPA/US@EPA

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|"Lee, Amanda I." <Amanda_I._Lee@omb.eop.gov>, "Higgins, Cortney"

<Cortney_Higgins@omb.eop.gov>, Fred Talcott/DC/USEPA/US@EPA,

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|<Nancy.Johnson@hq.doe.gov>, RobertJ Wayland/RTP/USEPA/US@EPA,

<Stefan.Osborne@trade.gov>, "Grahame, Thomas"

<Thomas.Grahame@HQ.DOE.GOV> |

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|07/26/2010 09:36 AM

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|RE: Cost/Ton Major Sources and Area Sources RICE

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I don't see any bolded text below - and we don't need to review what happened

anymore - we have too much other work that needs to be done. I do understand

now that these were cut-off calculations.
We still need the cost/ton data that I've already asked for earlier in any

event.

Thanks

Kevin

-----Original Message-----

From: King.Melanie@epamail.epa.gov [mailto:King.Melanie@epamail.epa.gov]

Sent: Saturday, July 24, 2010 6:47 PM

To: Bromberg, Kevin L.

Cc: Lee, Amanda I.; Higgins, Cortney; Talcott.Fred@epamail.epa.gov;

Nancy.Johnson@hq.doe.gov; Wayland.Robertj@epamail.epa.gov;

Stefan.Osborne@trade.gov; Grahame, Thomas

Subject: RE: Cost/Ton Major Sources and Area Sources RICE

Kevin,

When I emailed the cost/ton spreadsheets to Cortney I explained what the

numbers in the spreadsheets represented in the email.

It sounded to me from the email that Cortney sent out to you and the other

folks reviewing the rule that she included the spreadsheets with the breakdown

of the estimated costs of the rule by HP range. See bolded text below. Were

those spreadsheets not included with her email?

From: Higgins, Cortney [mailto:Cortney_Higgins@omb.eop.gov]

Sent: Monday, July 19, 2010 4:58 PM

To: Bromberg, Kevin L.; 'DOE Reg Mailbox'; 'Johnson, Katrina M.';

'Stefan.Osborne@mail.doc.gov'; 'Johnson, Nancy'; Poster, Dianne L.; 'Zwicke,

Greg - Portland, OR'; 'Grahame, Thomas'; Adamantiades, Mikhail A.; Ferris, Ann

E.; Miljanich, Peter R.; 'Stefan.Osborne@mail.doc.gov'; Felix Mestey;

'amelia.samaras@dot.gov'; 'DOT.REGULATIONS@dot.gov'

Cc: Lee, Amanda I.; Goldstein, Blair S.; Schwab, Margo; MacNeil, John S.;

Mancini, Dominic J.

Subject: For Review: NESHAP --Existing Stationary Spark Ignition Engines

(Gas-Fired)

Hello All,

Please find attached for EO 12866 review an EPA/OAR Proposed Rule titled

"National Emission Standards for Hazardous Air Pollutants for Reciprocating

Internal Combustion Engines--Existing Stationary Spark Ignition (Gas-Fired)."

This final rule establishes emissions limits for hazardous air pollutants

(HAP) for smaller (<500 HP) gas-fired engines at both major and area sources,

such as irrigation pumps and oil pipeline pumps. The rule is economically

significant, and the RIA is also attached. Also attached is an Excel

worksheet with an estimate of costs and emissions by engine size.

Reminder: Under the governing EO, this document and its contents are provided

for review by Federal executive branch agencies only, and should not be

distributed further. I'm happy to provide guidance if anyone has questions

about the EO 12866 process.

This rule has a court-ordered deadline for signature of August 8, 2010 (which

is a Sunday – it will likely be signed on 8/6/2010). Please provide comments

to me by Tuesday, July 27. If you need more time for review, please let me

know. If you have any questions, please call me at 202.395.7856. I will

likely be setting up an interagency call for later this week to provide a

venue for initial questions you have.

Regards,

Cortney

Melanie King

Energy Strategies Group

Sector Policies and Programs Division

Office of Air Quality Planning and Standards U.S. Environmental Protection

Agency

Mail Code D243-01

RTP, NC 27711

Phone: (919) 541-2469
Fax: (919) 541-5450

king.melanie@epa.gov

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|"Bromberg, Kevin L." <kevin.bromberg@sba.gov>

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|Melanie King/RTP/USEPA/US@EPA

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|"Lee, Amanda I." <Amanda_I._Lee@omb.eop.gov>, "Higgins, Cortney"

<Cortney_Higgins@omb.eop.gov>, <Nancy.Johnson@hq.doe.gov>, RobertJ

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|Wayland/RTP/USEPA/US@EPA, <Stefan.Osborne@trade.gov>, "Grahame, Thomas"

<Thomas.Grahame@HQ.DOE.GOV>, Fred Talcott/DC/USEPA/US@EPA

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|07/23/2010 02:05 PM

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|RE: Cost/Ton Major Sources and Area Sources RICE

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Thanks for the quick reply (I just got back in the office this

afternoon) - I certainly had no idea that you were calculating the cost/ton

figure to evaluate going above the floor for MACT, or examining emission

controls for area sources from reading the titles.

Regarding the conventional cost/ton calculations that we would normally see,

could we see the cost/ton for each class of engine, and the incremental

cost/ton for each engine class as in the final rule, and the incremental

cost/ton for each engine class for the floor standard vs.

the ATF standard for the 4SRB category?

You may have already shared this with Cortney, but I don't know if she's in

today. Could you send to us what you've already sent to Cortney?

Also, I have a few documents requested that are still outstanding - including

the memo outlining the MACT floor calculations and the guidance for the

residential, institutional and commercial exclusion from the RICE category.

I know Cortney indicated she wanted to get together this week for some

questions, and I suggest we plan a time for the near future given our

schedule. (But hopefully after the MACT floor document arrives today?)

Thnx,

Kevin

-----Original Message-----

From: King.Melanie@epamail.epa.gov [mailto:King.Melanie@epamail.epa.gov]

Sent: Thursday, July 22, 2010 8:36 PM

To: Bromberg, Kevin L.

Cc: Lee, Amanda I.; Higgins, Cortney; Nancy.Johnson@hq.doe.gov;

Wayland.Robertj@epamail.epa.gov; Stefan.Osborne@trade.gov; Grahame, Thomas;

Talcott.Fred@epamail.epa.gov

Subject: Re: Cost/Ton Major Sources and Area Sources RICE

Kevin,

I don't think you are interpreting the information in the spreadsheets

correctly. They are not breaking down the costs of the rule into different

horsepower ranges. These are the cost/ton numbers that we used when we were

evaluating whether to go above the floor for major sources and going beyond

GACT for area sources. For major sources, what the spreadsheets are showing

is the cost of going above the MACT floor, we are looking at an above the

floor option of oxidation catalyst for 2SLB and NSCR for 4SRB. For 4SLB, we

already have oxidation catalyst at the floor so we didn't look at a cost for

going above the floor. That is why there is no sheet for 4SLB-major.

For area sources, we are looking at the cost of going beyond GACT, which was

determined to be management practices. So we are looking at what the cost

would be if we imposed an emission limit based on emission controls for

different sizes of engines.

I sent Cortney some other spreadsheets that showed the actual capital and

annual costs of the rule broken down by the different components, HP ranges,

and major/area source. Perhaps you could check with her if she hasn't already

shared that information with you.

Melanie King

Energy Strategies Group

Sector Policies and Programs Division

Office of Air Quality Planning and Standards U.S. Environmental Protection

Agency

Mail Code D243-01

RTP, NC 27711

Phone: (919) 541-2469

Fax: (919) 541-5450

king.melanie@epa.gov

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|"Bromberg, Kevin L." <kevin.bromberg@sba.gov>

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|Melanie King/RTP/USEPA/US@EPA

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|"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>, RobertJ

Wayland/RTP/USEPA/US@EPA, "Grahame, Thomas" <Thomas.Grahame@HQ.DOE.GOV>,

"Lee, |

|Amanda I." <Amanda_I._Lee@omb.eop.gov>, <Nancy.Johnson@hq.doe.gov>,

<Stefan.Osborne@trade.gov>

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|07/22/2010 04:53 PM

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|Cost/Ton Major Sources and Area Sources RICE

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Thanks for providing the cost/ton excel spreadsheet:

Additional Questions:

1. Do you have the costs for the 100 HP also – the 4 SRB and 4 SLB

are missing this category (both area and major).

2. Missing costs for 4 SLB major sources

3. For 4SRB Major – the NSCR is added at 300 HP (between 300-500

HP) - why does the cost/ton not go up above 300? This is the ATF standard –

NSCR

100-300 should have no aftertreatment (Table 2, Draft June

29 EC/R Impacts Memo)

4. For 4SRB Area – the NSCR is added at 500 HP – why does the

cost/ton not go up above 500? This is the ATF standard

5. For 4SLB Area – the NSCR is added at 500 HP - why does the

cost/ton not go up above 500?

6. For 4SRB and 4SLB Area – only management standards below 500 -

why are there significant capital costs below 500?

7. For Major Sources below 100 –only management standards - why are

there significant capital costs below 100?

8. Can EPA provide the incremental costs for each category, as

well as these total costs for each category (0-50, 50-100, etc.)? I think

such a presentation provides more information than these point estimates

(single 500 HP engine) convey, particularly the incremental costs – which is

the more relevant comparison.

9. Need copy of June 28 EC/R memo re: Control Costs for Existing

Stationary SI RICE (cited on page 3 of Draft June 29 ECR Impacts Memo)

Also – note the capital costs/engine – don’t seem to jump up (other than

linearly with size) at the point when NSCR and Oxidation cats are added.

Just my quick observations – I haven’t had the time to thoroughly vet all

these observations. Something is wrong with the EPA calculations,

or my interpretations. Did EPA for example – include the cost for

catalysts, even where EPA is not using the catalysts in the smaller engines?

That is one possibility.

Or are these tables simply assuming that these engines all have oxidation

catalysts and NSCRs without regard to the actual final regulation? In which

case, we really need the response to #8 – costs for the EPA rule.

Kevin Bromberg

Office of Advocacy

U.S. Small Business Administration
409 Third Street, SW

Washington, DC 20416

Tel: 202-205-6964; Fax: 202-205-6928

E-mail: kevin.bromberg@sba.gov

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