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## A-90-1 9 ll-E-2 1

SUMMARY O F MEETIN

GBETWEE NREPRESENTATIVE S O F CM AAND EPA/OAQP S DATE : PLACE : ATTENDEES : February28 , 199 1

Mutua l Building , Durham , Nort hCarolin a Dann yAnderson , Firs t Chemica l Jennife r Buzun , Radia n Corporatio n Lind a Chaput , EPA/ES D Nanc yCookson , CM

A Lesli e Evans , EPA/ES D Kare n Fidler , CM

A Li z Fisher , Roh

man d Haa s Compan

y Ja n Meyer , EPA/ES D Juli e Ann e Probert , Radia n Corporatio n Thoma s A . Robinson , Vulca n Chemical s Bo bRosensteel , EPA/ES D Jac k Schauer , Shel l Chemica l Richar d Sigman , CM

A TomStark , Amoc o Chemical s Bria n Taranto , Exxo n Chemica l Bil l Vatavuk , EPA/ES D Shery l Watkins , Radia n Corporatio n A l Wehe , EPA/ES D Jo e Woolbert , Texa s Eastman Compan y Susan Wyatt , EPA/ES D 

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' DE C I 8 199 2

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PURPOS E O F MEETING Representative s o f th e Chemica l Manufacturers ' Associatio n (CMA ) an

d th e Environmenta l Protectio n Agency' s (EPA's ) Offic e o f Ai r Qualit yPlanning an d Standard s (OAQPS ) me t t o discus s th e Hazardou s Organi c NESHAP (HON ) regulatorydevelopmen t program . Discussio n centere d o n thre e majo r issues :

• Explanatio n o f th e SOCM I categorie s tha t wil l b e covere d b

yth e HON ;

• CMA' s estimat e o f th e increas e i n demand fo r contro l equipment , engineering services , an d permitting time tha t wil l resul t fro mth e HON ; an

d

• CMA' s interes t tha t th e HONinclud e a phased-i n complianc e schedule .

MCH/00 5P. 3

SCOP E O F TH E HO N Mr . Bo bRosenstee l o f EPA' s Emission s Standard s Divisio n explaine d tha t a Syntheti c Organi c Chemica l Manufacturin g Industr y(SOCMI ) productio n proces s woul d b e covere d byth e HO N i f tha t process : 1 ) produce s anyo f 11 0 organi c Hazardou s Ai r Pollutant s (HAP's) , o r 2 ) use s anyo f th e 11 0 organi c HAP' s t o produc e a SOCM I chemical . Th e EP Apresentl yestimate s tha t thi s wil l includ e th e productio n processe s o f approximatel y39 0 SOCM I chemicals . Whe n aske d abou t th e definitio n o f a SOCM I chemical , Mr . Rosenstee l explaine d that , i n earlie r EP Acontrac t work , a lis t o f 66 0 chemical s wa s generated . Thi s lis t wa s presente d a s a se t o f chemica l tree s fo r relativel yhig hvolum e petrochemicals . A subse t o f 39 0 o f thes e 66 0 SOCM I chemical s i s anticipate d t o b e affecte d byth e HON , base d o n th e findin g tha t organi c HAP' s coul d b e emitte d fro mth e productio n o f thes e 39 0 chemicals . Chemica l processe s outsid e o f SOCM I whic hus e th e 11 0 HAP' s wil l no t b e affecte d byth e rule . Standar d Industria l Classificatio n (SIC ) code s 286 5 an d 286 9 ar e th e onl yone s included . Arepresentativ e o f CMAaske d whyEPA' s origina l mailou t fo r th e Nationa l Ai r Pollutio n Contro l Technique s Advisor yCommitte e (NAPCTAC ) ha d mentione d 45 0 chemical s a s oppose d t o 390 . Mr . Rosenstee l replie d tha t th e lis t ha d bee n refine d throug h furthe r investigatio n o f th e variou s chemica l productio n processes . I n som e cases , certai n processe s ar e n o longe r use d o r wer e foun d no t t o us e HAP's . I n addition , chemical s wer e remove d fro mth e lis t i f thei r productio n involve d onl yinorgani c HAP's . EP Ai s continuin g t o investigat e a fe wo f th e mor e comple xprocesses . I f thes e comple xprocesse s ar e broke n dow n int o thei r componen t processes , th e lis t o f 39 0 chemical s ma y expan d slightly . Ms . Ja n Meye r (EPA ) adde d that , sinc e th e negotiate d regulatio n fo r equipmen t leak s include s sourc e categorie s no t covere d byth e HON , th e lis t o f affecte d chemical s MCH/00 5 2P. 4

fo r th e equipmen t leak s rul e maydiffe r fro mth e on e fo r th e othe r HONsources . Whe n CM Aaske d whethe r ther e ar e 39 0 chemical s o r 39 0 processes , Mr . Rosenstee l replie d tha t ther e ar e 39 0 chemicals . EP

Adoe s no t pla n t o specif yroute s t o eac h chemical . Thus , ther e mayb e mor e tha n 39 0 processe s involve d sinc e ther e mayb e multipl e productio n processe s fo r some o f th e chemicals . Ther e wa s a questio n fro mCM Aregarding whethe r by-product s woul d b e regulated . Specifically , i f a proces s produce s X(no t a HAP ) a s a produc t an d Y (HAP ) a s a by-product , woul d tha t proces s b e regulated ? Mr . Rosenstee l replie d that , i f Yha s economi c valu e (i.e. , ca n b e sol d o r used) , the n th e proces s woul d b e covere d b

yth e HON . I f Yi s a waste d material , the n th e proces s woul d no t b e covered . Thi s woul d b e simila r t o th e ne wsourc e performanc e standar d (NSPS ) fo r distillatio n proces s vents . I n respons e t o a questio n regarding wha t i s th e differenc e betwee n rawmaterial s an

d reactants , Mr . Rosenstee l clarifie d tha t EP A consider s th e tw o t o b e equivalent , wit hth e exceptio n o f solvent s whic hwil l no t b e covere d b yth e HON . ESTIMAT E O F NUMBE R O F PROCES S UNIT S Mr . Rosenstee l explaine d tha t proces s unit s wer e develope d fro mreadil yavailabl e informatio n o n capacity . Dat a on facilit y names , locations , an d capacitie s wer e summarize d fro mth e Chemica l Marketing Reporter , Mannsvill e Chemica l Product s Synopsis , an

d SR I Directoryo f Chemica l Producers . Locatio n wa s significan t i n determining whic hstat e regulation s woul d b e applicabl e i n determining baselin e level s o f control . Th e HON dat a base s contai n approximatel y110 0 proces s unit s tha t ar e expecte d t o b e covere d b yth e HON . Mr . Rosenstee l adde d tha t ther e mayb e mor e tha n 110 0 affecte d proces s unit s sinc e sufficien t informatio n wa s no t availabl e fo r al l processes . CM A aske d ho wman

yo f th e proces s unit s EP Afel t comfortabl e wit h regarding quality . Mr . Rosenstee l replie d tha t EP Ai s reasonabl y comfortabl e wit hdat a (e.g. , location , capacity , proces s

MCH/00 5P. 5

description ) o n 4 0 percen t o f th e chemical s whic hrepresen t 9 5 percen t o f productio n tonnage . Arepresentativ e o f CM Aaske d i f earlie r wor k b y Hydroscienc e wa s being updated . Mr . Rosenstee l replie d that , i n th e interes t o f time , EPAi s relying primaril yon th e Hydroscienc e data . However , h e adde d tha t EPAha s reviewe d th e technica l proces s informatio n i n th e Hydroscienc e repor t an d ha s update d some o f th e informatio n wit hdat a fro mmor e recen t Sectio n 11 4 responses . Whe n aske d abou t th e type s o f model s EP Ai s using i n th e HON , Mr . Rosenstee l sai d tha t generi c emissio n an d cos t model s wer e assigne d t o evaluat e impacts . Th e numbe r o f model s varie s fro msourc e t o source . CM Asai d tha t i n th e Toxic s Releas e InventorySystem(TRIS) , ther e ar e 75 3 facilitie s i n SI C 286 5 an d 2869 . CM

Adoubt s tha t EPA' s estimat e o f 110 0 proces s unit s i s accurat e sinc e CM

Aestimate s betwee n 5 an d 1 5 proces s unit s pe r facility . Fo r 75 3 facilities , thi s woul d excee d EPA' s estimat e o f a nationa l tota l o f 110 0 proces s units . CM Aals o fel t tha t EPA' s estimat e o f chemica l productio n wa s low . Mr . Rosenstee l state d tha t h e though t th e EP Aestimat e wa s i n reasonabl e agreemen t wit hestimate s fro mpreviou s EP

Aprojects . Mr . Rosenstee l offere d tha t EP Acan shar e dat a fro mth e HO

Ndat a base s listing th e proces s unit s pe r chemica l an d CM Acan provid e informatio n o n an

ygap s i n thi s list . CM Asai d tha t theywoul d revie wth e EP

Aestimates . Ms . Lind a Chapu t (EPA ) emphasize d tha t EP Aha s no t decide d whethe r o r no t th e lis t o f 39 0 chemical s wil l b e include d i n th e tex t o f th e regulation . Companie s shoul d bas e thei r decisio n on participating i n th e earl yreductio n progra mon : (1 ) whethe r o r no t theyproduc e on e o f th e 66 0 SOCM I chemical s an d (2 ) whethe r theyemi t on e o f th e 18 9 HAP' s during tha t production . DEMAN D FOR CONTRO L EQUIPMENT , ENGINEERIN GSERVICES , AN

D PERMI T REVIE W Mr . A l Weh e an

d Mr . Bil l Vatavuk o f EPA' s Cos t an d Economi c Impact s Sectio n (CEIS ) reviewe d CMA' s lette r t o th e Agenc y regarding th e increas e i n deman d fo r contro l equipment , MCH/00 5 4P. 6

engineering services , an d permi t revie wtime tha t coul d resul t fromth e applicatio n o f MAC T standard s t o al l SOCM I processe s a t on e time . Mr . Weh e sai d tha t h e sawCMA' s perspectiv e a s being tha t o f th e "deman

d side " an

d tha t Mr . Vatavuk had some insigh t int o th e "suppl yside " base d o n conversation s wit hth e Industria l Ga s Cleaning Institut e (IGCI ) whic hi s a trad e associatio n fo r vendor s o f ai r pollutio n contro l equipment . Mr . Vatavuk describe d hi s conversation s wit hMr . RayConnor , Technica l Directo r o f IGCI . Mr . Conno r feel s tha t ther e i s enoughcapacit ywithi n hi s industryt o mee t th e need s o f th e chemica l industryfo r combustio n contro l devices . H e coul d no t commen t o n non-combustio n device s sinc e non e o f IGCI' s membe r companie s manufactur e them . Regarding equipmen t deliverytimes , Mr . Conno r fel t tha t 2 4 t o 3 6 month s wa s a wors t cas e estimat e an d tha t applicatio n o f MAC T standard s woul d no t increas e tha t time . Mr . Conno r had sai d tha t muc hshorte r deliverytime s ar e possibl e dependin g on whethe r th e equipmen t i s custom-designe d o r package d (ski d mounted) . Representative s o f CM Asai d tha t thi s di d no t squar e wit h thei r experience . CM Aargue d tha t vendor s generall yfee l lik e the yhav e t o saytha t theyca n mee t th e demand becaus e anything els e woul d soun

d bad . Mos t CM

Amember s d o no t bu yskid-mounte d equipmen t an

d recentl yhav e had bad experience s wit hequipmen t supply . CM

Aals o wante d t o kno wi f th e vendor s ca n improv e thei r performanc e (i.e. , meetin g commitment s o n schedule ) whil e simultaneousl ymeetin g a highe r demand . Mr . Weh e sai d tha t sinc e CMA' s lette r liste d combustio n device s a s th e mai n problem , wh ydon' t facilitie s ti e int o thei r existing combustio n capacity . CM Areplie d tha t thi s can caus e safet yproblem s (e.g. , lowflow , lowpressur e vents ) an d caus e exceedance s o f othe r d e minimi s levels . I t depend s o n wher e the cu t off s are . Mr . Vatavuk aske d wh ycombustio n device s hav e t o b e custom designed . CM

Aresponde d tha t specification s ca n varygreatl y depending o n strea

m characteristic s suc ha s pressure , temperature , composition , etc . Companie s tryno t t o integrat e thei r plant s to o muc hbecaus e o f safet yan d operationa l concerns .
MCH/00 5P. 7

Th e compatibilit yo f add-o n contro l equipmen t an d existing proces s contro l system s ha s prove n t o b e a difficul t problem . Mr . Vatavuk sen t a copyo f CMA' s lette r t o Mr . Conno r a t IGCI . Mr . Conno r i s currentl ysurveying some o f hi s 40 + membe r companies . Mr . Vatavuk expect s t o hea r th e result s o f th e survey sometime i n March . Accordin g t o CMA , th e lis t o f acceptabl e vendor s i s actuall y shorte r tha n th e 4 0 tha t Mr . Conno r i s surveying . CM Afeel s tha t th e chemica l industryi s entering an er a o f veryspecifi c an d difficul t permi t requirement s wit hmor e monitoring an d heavie r enforcement . Th e industrywil l nee d t o b e eve n mor e particula r abou t choosing vendor s tha t hav e prove n trac k record s i n orde r t o avoi d installing system s tha t wil l no t b e i n compliance . Thi s coul d resul t i n bottleneck s sinc e th e bette r vendor s wil l be i n highdemand . CM Abelieve s tha t experience d engineering manpowe r wil l b e a majo r proble msinc e th e chemica l industry , vendors , an d permi t reviewer s wil l al l b e competing fo r a limite d numbe r o f engineers . Eve n i f th e numbe r o f ne wengineering graduate s increases , th e SOCM I wil l stil l hav e a problemsinc e i t need s mor e experience d engineers . CM Aals o foresee s severa l peak s i n activit ywithi n th e anticipate d 3 year s o f complianc e time . Th e demand sid e (industry ) wil l pea k withi n th e firs t yea r an d th e suppl ysid e (vendors , permi t reviewers ) wil l pea k during th e las t tw o years . CM Ai s concerne d tha t th e additiona l burde n o n bot hvendor s an d permi t revie wagencie s wil l mak e i t impossibl e fo r industry t o compl ywithi n 3 years . CM Aha s estimate d th e increase d demand t o b e approximatel y4 t o 6 time s curren t demand an d vendor s ar e having a har d time meeting tha t curren t demand . Slowdelivery cut s int o th e 3 year s a s doe s slowpermi t review . CM Aadde d tha t o f th e tw o type s o f permit s —constructio n permit s an d operating permit s —constructio n permit s ar e th e rea l issu e sinc e they mus t b e obtaine d befor e an yconstructio n ca n begin . EP Aaske d fo r a representativ e timelin e fo r a shor t schedul e an d lon g schedul e regarding engineering design , permi t revie wan d installation/operation . Coul d CM Aboun d th e problem

wit hbes t an d wors t cases ? MCH/00 5 6P. 8

ACM Arepresentativ e aske d i f EPAi s plannin g t o projec t th e increas e i n demand fo r contro l equipment . Mr . Rosenstee l replie d tha t EPAcoul d estimat e an uppe r boun d assuming tha t everyon e had t o bu yne wdevices . Mr . Weh e emphasize d tha t i t i s stil l earl y t o mak e a rea l estimat e sinc e regulatoryalternative s hav e no t ye t bee n determined . Ther e wa s als o a questio n fro mCM Aregarding ho wEP Ai s estimating th e increas e i n demand fo r permi t review . CM Aha s thre e area s o f concern . First , variou s agencie s hav e publishe d document s addressing permitting issues . CM Afeel s tha t thes e issue s ar e no t cu t an d dry , bu t ar e continuall ybeing explore d an d re-answered . Secondly , unde r Titl e I o f th e CAA , State s wil l hav e t o provid e revision s t o thei r Stat e Implementatio n Plan s b y 199 2 regarding Ne wSourc e Review . Thirdly , Titl e V wil l requir e ne woperating permits . CM Awoul d lik e some feedbac k o n thes e area s fro

m EPA' s permitting people . Ms . Meye r suggeste d they contac t th e Permi t Program s Branc ht o discus s thei r concerns . EPAaske d CM

At o clarif yth e basi s fo r th e regulatory scenari o presente d i n thei r letter . CM Aresponde d tha t thei r estimat e o f a 4 t o 6 fol d increas e wa s base d o n a sampling o f thei r members . Contro l equipmen t wa s selecte d base d on NSP S requirement s an

d othe r estimate s o f MACT . Mos t o f th e contro l involve d add-o n devices . Afacto r wa s develope d t o represen t wha t contro l equipmen t had bee n adde d i n th e pas t an d wha t woul d b e neede d i n th e future . EPAaske d i f theycoul d se e th e CM A questionnaire . CM

Aagree d t o sen

d a copy . PHASE-I NO F TH E HON Representative s o f CM Aaske d wha t th e Clea n Ai r Ac t woul d allo wregarding schedule . Ar e ther e constraint s tha t woul d preven t EPAfro

mstaggering th e implementatio n fo r th e five source s o r fo r differen t set s o f processes ? Ms . Meye r responde d tha t ther e ar e lega l an d polic yissue s tha t stil l nee d t o b e answered . CM

Aaske d i f th e decisio n t o phas e th e regulatio n woul d complicat e things . Ms . Meye r responde d tha t EP Acoul d no t answe r tha t questio n yet .
MCH/00 5P. 9

CM Astate d tha t phasing th e regulatio n coul d b e helpfu l sinc e i t woul d allowEPAan d industryt o evaluat e ho wthing s wer e going an

d mak e change s i n late r phases . Mr . Rosenstee l responde d tha t tim e reall yi s no t a luxur yfo r th e HONsinc e unde r th e Clea n Ai r Ac t Amendments , EP Aha s onl y1 0 year s t o promulgat e standard s fo r al l sourc e categorie s an d subcategorie s tha t emi t HAP's . EPAneed s a veryconvincing argumen t fo r phasing th e rul e becaus e suc han approac hwoul d hav e t o b e supporte d b y informatio n i n th e publi c record i n th e even t o f a lawsui t b y environmenta l group s o r others . CM Aaske d EPAt o le t themkno w wha t informatio n woul d b e neede d t o buil d a persuasiv e cas e fo r phasing . Ms . Susan Wyat t (EPA ) sai d tha t th e fina l decisio n on phasing th e HONmayno t b e mad e unti l afte r th e proposal . Th e propose d Notic e o f Rulemaking migh t jus t discus s ho wphasing coul d b e implemente d an d reques t comments . Industrycoul d respond afte r theyhad see n th e actua l rul e an d determine d it s effects . Then , afte r consideratio n o f publi c comment , EP Acoul d decid e whethe r t o promulgat e a phase d complianc e schedule . CM Aals o mentione d tha t EPA' s Offic e o f Toxi c Substance s (OTS ) ha s a projec t tha t seem s t o b e i n direc t conflic t wit hth e HON . Th e Industria l Toxic s Projec t i s emphasizing "sourc e reduction " whic hCM Aha s understoo d t o mea n redesigning a proces s instead o f applying end-of-pip e contro l equipment . Ms . Meye r explaine d tha t muc ho f wha t th e Industria l Toxic s Projec t term s "sourc e reduction " o r "pollutio n prevention " i s consisten t wit h th e requirement s o f specifi c standard s unde r Section s 11 1 o r 112 . Th e rea l conflict s tha t hav e arise n ar e ove r th e complianc e schedules , wit hSectio n 11 1 an d 11 2 standard s having muc hshorte r times . I n general , th e actua l physica l change s o r equipmen t addition s wil l b e identical . Ms . Fishe r argue d tha t th e complianc e time allowe d unde r th e MAC T programi s no t sufficien t fo r implementing proces s change s an d therefor e encourage s th e us e o f end-of-pip e contro l equipment . CM

Abelieve s tha t companie s reall ywil l no t b e abl e t o pursu e bot hemissio n reductio n strategie s simultaneously . Ms . Fishe r adde d tha t EPAshoul d tak e step s t o ensur e tha t th e HONrule s ar e coordinate d wit hth e pollutio n preventio n program . MCH/00 5 8P.1 0

Ms . Meye r responde d tha t ther e woul d b e coordinatio n acros s Agenc yprograms . Ms . Meye r adde d that , i n orde r t o b e productive , an

yfutur e discussion s o n thi s subjec t nee d t o b e specifi c t o th e particula r regulatoryrequirement s an d sourc e operation s tha t appea r t o b e i n conflict . SUMMAR Y EPAagree d t o sen

d CM Aa lis t o f th e numbe r an d locatio n o f th e variou s proces s unit s i n th e HONdat a bases . I n addition , EPAwil l chec k wit hRayConno r abou t discussing wit hCM Ath e result s o f hi s surveyo f IGC I membe r companies . CM Aagree d t o sen

d EP Aa cop yo f th e questionnair e use d i n th e CM Asurveyalong wit hothe r assumption s relate d t o thei r estimat e o f increase d demand . CM Awil l als o sen

d a Gant t char t fo r a representativ e projec t constructio n an d permitting timeline . Thi s informatio n need s t o b e submitte d t o EPAb yth e en d o f Maya t th e lates t i n orde r t o b e helpfu l i n decisio n making . I n addition , CM Awil l tryt o se t up a meetin g wit hEPA' s permitting experts .

MCH/00 5