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# 74 ) ll-F-2 1
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# A-90-1 9

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## A-90-1 9 ll-F-21

D2TE : Octobe r 15 , 199 2 SUBJECT : Draf t Languag e fo r ComplementaryLega l Theoryfo r

Broade r Emission s Averaging FROM : Ala n Eckert , EPA/OGC TO : Davi d Rivkin , Offic e o f th e Vic e Presiden t

Counci l on Economi c Competitivenes s
Se e attached
. 

# fjJJj JP. 3



### ^di . J^^T^T&^K .

Octobe r 15 , 199 2

4 0 C.F.R . Par t 6 3 - Hazardou s Organi c NESHA P ("HON" ) (SOCM I plu s seve n othe r sourc e categories ) Inser t Re : Plant"Wid e Emission s Averagin g EISA' s propose d standar d provides , a s note d above , a broa d averagin g approac hfo r HO Nunit s a t a plant
. EP Aals o solicit s commen t o n whethe r i t shoul d i n th e fina l rul e adop t a broade r averagin g approach , a s se t fort hbelow
. Thi s broade r averagin g approac hwoul d rel yupo n a n alternativ e lega l theor ywhic hwoul d permi t complianc e wit hth e HO NMAC T standar d throug hreductio n o f emission s fro mpoint s anywherf e withi n th e entir e contiguou s facility
. Th e basi c framewor k fo r settin g an d implementin g emission s standard s fo r hazardou s ai r pollutant s (HAPs ) i s containe d i n sectio n 112(d ) an d 112 ! (i ) o f th e Clea n Ai r Ac t Amendments
. Adoptin g a definitio n o f th e ter m"source " fo r regulator y purpose s ha s bee n recognize d byth e Suprem e Cour t a s a n are a i n whic ht[ n

e Administrato r i s accorde d a hig hdegre e o f flexibility
. Chevro n v . Natura l Resource s Defens e Council , (cite)
. Thi s approac hwoul d rea d Chevro n a s affordin g th e Administrato r sufficien t flexibilit yto , i n effect , adop t differen t definition s o f th e jter

m"source " fo r purpose s o f identifyin g sourc e categorie s an d fo r standar d settin g unde r section s 112(d)(2 ) an d (3 ) , ari

d o f th e sam e ter m fo r th e purpose s o f requirin g complianc e unde r sectio n 112(i)(3)
. Sectio n 112(i ) (3 ) doe s no t preclud e EP Afro midentifyin g th e "source " tha t mus t achiev e complianc e wit hth e standar d a s a "majo r source, " whic ho f cours e woul d normall yinclud e a n entir e plant
. Th e Administrato r solicit s commen t o n th e lega l authorit yan d polic yimplication s o f thi s interpretatio n o f section s 112(d ) an d (i ) t o permi t a broade r averagin g approach , an d als o o n implementatio n considerations
. Urider thi s approach , EP Awoul d mak e n o change s i n th e wa yi t ha s identifie d categorie s an d subcategorie s o f sources , no r i n th e wa yi t prescribe s emissio n standard s fo r thos e categorie s o r subcategories
. Fo r complianc e purposes , however , i f a n owne r o r operato r doe s no t wis ht o contro l a particula r emissio n point , th e uncontrolle d emission s fro mtha t poin t coul d b e offse t by emission s reduction s greate r tha n wha t i s require d byany standar d the n i n effec t unde r Sectio n 11 2 a t on e o r mor e othe r emissio n point s withi n th e entir e stationar ysource . I n addition , emission s averagin g woul d b e allowe d acros s al l th e

80012 ) O 6o*S T06^0/T TP. 4

emissio n point s withi n th e entir e plant , including th e SOCM I sourc e categorya s wel l a s point s no t covere d b yan yMAC T standard
. A s such , emission s fromproces s vents , wastewate r operations , storag e vessel s an d transfe r operation s coul d b e average d among themselve s o r wit hothe r emission s point s withi n tha Entir e stationarysource , i norde r t o provid e a s muc h flexibilit ya s possible
. EPAsolicit s commen t als o o nho wi t woul d se t th e baselin e fo r unregulate d emission s points , an d ho w i t woul d structur e limit s fo r suc hpoint s t o assur e th e standar d a s a whol e remain s enforceable
. Commen t i s als o requeste d o n legal ! authorit yfo r an d polic yimplication s o f including ne wan d existing source s i n th e same average . A s explaine d above , whil e equipmen t leak s ar e include d i n SOCM I sources , theycanno t a t thi s time b e include d i nemission s averages . Unde r thi s alternative , EPAwoul d expeditiousl y develo p method s t o assignallowabl e emissio n level s t o particula r leak point s o r group s o f leak points , an d woul d similarl ydevelo p method s fo r calculating emission s fromemissio npoint s no t regulate d b

yth e HON . Th e Administrato r seek s comment s o n appropriat e way s t o includ e a provisio n that , upo n petitio no f an yoirne r o r operato r o f a stationarysource , EP Awil l establis h calculatio n method s t o b e use d fo r emissio n averaging fo r equipmen t leaks
. 

# 1 Jnder thi s alternativ e approach , emissio nreduction s from emission s point s no t covere d b yth e HONwoul d b e useabl e t o generat e credits , subjec t t o th e previousl ydiscusse d limitation s an d ar^ ylimitation s adde d i n an yothe r MAC T standard applicabl e t o th 6 emissio n points , credit s coul d b e generate d a t an ytim e fromrion-HO

Nemissio n point s unti l the ybecome subjec t t o a MAC T standard
. Whe n the ybecome subjec t t o a MAC T standard , th e future j eligibilit yan d valu e o f reduction s a t thos e emissio n point s woul d b e governe d b yth e emissio n reduction s require d b y thos e standards
. Eac hfutur e MAC T standard mus t contai n a floo r calculation
. T o th e exten t tha t point s covere d b ythes e late r standard s hav e bee n controlle d fo r complianc e wit ha nearlie r standajrd , th e floo r fo r th e late r standard mayb e mor e stringent
. A S futjur

e MAC T standard s ar e adopted , EPAwoul d attemp t t o maximiz e averaging opportunitie s an d therefor e minimiz e complianc e delay s an d costs . 

# L S-bveral factor s mus t b e considere d i nimplementing thi s alternativ e approach
. First , th e averaging approac hallow s inclusio n o f point s tha t wil l b e regulate d b ysubsequen t MAC T standards
. I n calculating residua l ris k unde r sectio n112(f) , shoul d I al l point s i n th e initia l averag e b e include d i non e ris k calculatio n eve n thoughsome o f thos e point s wil l no t b e subjec t t o th e standard s unde r 112(d ) unti l a late r date ? Second , i t woul d requir e a determinatio n o nth e permissibilit yo f interpollutan t trades
. Thi s concer ni s alread y

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being evaluate d fo r VO C HAP s i nth e SOCM I soxirce category . Th e alternativ e approac hwoul d furthe r complicat e thi s issu e b y adding dissimila r categorie s (e.g. , industria l cooling towers ) emitting dissimila r pollutant s (e.g. , chromium)
. Sinc e th e HO N currentl yaddresse s onl yorgani c HAP s significan t change s woul d b e necessaryt o accommodat e non-VO C HAP controls
. T o facilitat e commen t o nthi s alternative , EPAi s setting fort hbelo wth e regulatorychange s tha t woul d b e necessaryt o implemen t it
. 1
. S63.10 0 Applicabilit yan d designatio no f source . Amend t o ad

d paragraph(h) , a s follows : "(h ) Subpart s F,G , an d H allo wemission s averaging withi n th e entir e stationarysourc e subjec t t o th e requirement s o f thi s Part , including an yadditiona l informatio n submittal s an d detaile d credit/debi t calculation s th e permitting authorit ymayrequire. " 2
. S63.10 1 Definitions
. Amend a s follows : "Emissio n poin t mean s a n individua l proces s vent , storag e vessel , transfe r rack , wastewate r stream , o r equipmen t leaJc , an

d fo r purpose s o f emission s averaging , an

yindividua l itemo f equipmen t withi nth e stationarysource . * * * "Stationarysourc e mean s an ybuilding , structure , facility , o r installatio nwhic hemit s o r mayemi t an y ai r pollutan t subjec t t o regulatio n unde r th e ACT . building , structure , facility , o r installatio nmean s al l o f th e pollutant-emitting activitie s whic hbelong t o th e same industria l grouping , ar e locate d o n on e o r mor e contiguou s o r adjacen t properties , an d ar e unde r th e contro l o f th e same perso n (or person s unde r commo n dontrol ) excep t th e activitie s o f an yvessel
. Pbllutant-emitting activitie s shal l b e considere d a s piar t o f th e same industria l grouping i f the ybelong t o th e same Majo r Grou p (i,e, , whic hhav e th e same two

digi t code ) a s describe d i n th e Standard Industria l Classificatio n Manual , 198 7 (Nationa l Technica l Ihformatio n Servic e stoc k numbe r P B 87-100012). " 3. S63.11 2 follows ; Emissio nlimits
. Amend paragraph(c) , a s "(c ) Complianc e wit hth e emissio n standar d i n paragraph(a ) o r (b ) shal l b e demonstrate d i non e o f tri e following tw o ways :



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"(2 ) th e owne r o r operato r mayelec t t o contro l differen t group s o f emissio npoint s withi nth e istationarysourc e t o differen t level s tha n specifie d unde r SS63.11 3 through63.14 7 a s long a s th e overal l i emission s reduction s fromth e stationarysourc e equa l o r excee d th e emissio nreductio n require d byS63.112
. "(i ) Owner s o r operator s using thi s emission s averaging complianc e approac hmus t calculat e thei r emissio n debit s an

d credit s fo r thos e emissio npoint s involve d i n th e emissio naverag e a s specifie d i n S63.150 , develop a n implementatio n programa s require d i n S63.151 , an

d compl ywit hth e genera l reporting requirement s i n S63.152
. "(ii ) Emissio n debit s an d credit s mus t b e calculate d separatel yfo r ne wan d existing sources . Ne wsource s ma yb e include d i nth e same emissio n averag e a s existing sources . Th e determinatio no f whethe r a n emissio n poin t i s par t o f a ne wo r existing sourc e shal l b e mad e according t o th e provision s o f Subpart s Aan

d F o f thi s Part. " 4
. S63.15 0 Emission s averaging Provisions
. a . Amend paragraph(c) , a s follows : "(c ) Th e following emissio n point s ca n b e Credite d i n a n emission s averag e t o offse t us e o f control s les s stringen t than th e referenc e technology o n Grou p l emissio npoints :

* * * "(6 ) Anyothe r emission s point s withi n th e stationarysourc e excep t thos e exclude d fromus e a s credit s i n a n emission s averag e b ya standard promulgate d unde r Sectio n112. " b
. Amend paragraph(d) , a s follows : "(d ) Th e following emissio n point s canno t b e use d t bgenerat e credit s i nemissio naveraging : "(1 ) Emissio n point s subjec t t o SS63.11 3 through 63.14 9 alread

ycontrolle d o no r befor e (Novembe r 15 , 1$90) , excep t thos e tha t wer e controlle d a s par t o f th e earl yreductio n progra mo r a pollutio npreventio n programa s describe d i nparagraph(c ) o f thi s section
. * * * "
c . Amend paragraph(e ) a s follows : 4

too o © f-C-S T ;6/t-0/T TP. 7

"(e ) Fo r al l point s include d i n a nemissio n average , th e owne r o r operato r shall :

* * * "(2 ) Calculat e credit s fo r al l emissio n point s tha t ar e overcontrolle d t o compensat e fo r th e debit s usin g equation s i n paragraph(g)
. Emissio n point s tha t mee t th e criteri a o f paragraph(c ) mayb e include d i n th e credi t calculation , wherea s thos e describe d i n paragraph(d ) shal l no t b e included
. \5. S63.15 1 Implementatio n program .

* * * ! " (b ) Fo r emissio n point s include d i na nemissio n average , th e fallowing informatio nshal l b e provide d a s par t o f th e writte n statemen t o f th e implementatio n program :

* * * "(8.5 ) Fo r eac hemissio n poin t include d i nth e averag e othe r tha n a proces s vent , storag e vessel , transfe r rac k o r wastewate r stream , th e owne r o r Operato r shal l documen t th e following information : "(i ) Th e informatio n regarding emission s averaging require d b yan yothe r standard propose d unde r Sectio n 112 ; o r "(ii ) Informatio nreasonabl ysimila r t o informatio n regarding emission s averaging require d by dn ystandard propose d unde r Sectio n112
. Th e supplementa l informatio n withi n3 0 day s afte r submission. " 6i
. Anyothe r necessaryconforming changes
.

© SC-S T66/fO/T T SOO®