p. 1 

# OAR Box 1384 Prepped by Charmelle Mathews



### DocumentNumber: 

# 8 ) ll-E-20 8 Docket Number: 

# A-94-5 2

Printed 7/2/20088:42:12 AM Sheet 248of 264P. 2

TO : FROM : RE : DATE : MEMORANDU M

Fil e Dian e McConkey , EPA/OG C 

# It- t£-lO$

Meetin g wit

h Composite s Fabricator s Associatio n Representative s t o Discus s Lega l Issue s Relatin g t o Reinforce dPlastic s MAC T Jun e 16 , 200 0 O n May 1 , 2000 , representative s o f th e Composite s Fabricator s Associatio n (CFA ) me t wit h EP A staf

f t o discus s th e MAC T standar dfor th e reinforce dplastic s sourc e category . Participants : Bil l Pederse n Lowel l Mile s Joh n Schweitze r Gar y Multane n Dian e McConke y Penn y Lassite r Keit h Barnet t Shaw Pittman

Mile s Fiberglas s & Composite s CF A Fiberglas s Systems , Inc . EPA/OG C EPA/OAQPS/ES D (b y conferenc e call ) EPA/OAQPS/ES D (b y conferenc e call ) Th e participant s discusse dapape r tha t CF A ha dprepare dsettin g fort h it s positio n regardin g developmen t

o f ne w sourc e MAC T for

th e reinforce dplastic s category . Thi s pape r i s attached .

Attachmen t 

## M I 9 

## 200 1 EP A AI R DOCKE

TP. 3

Discussio n Pape r fo r Composite s Fabricator s Association / EPA Meeting , Ma y 1 , 200 0 Doe s EPA Hav e Lega l Authorit y t o Se tOn e Ne w Sourc e MAC T Standar d fo r Large r Sources , an d Anothe r fo r Smalle r Sources , withi n th e Sam e Existin g Sourc e MAC T Categor y o r Subcategory ? Introductio n 1 . CF A believe s tha t

oxidatio n woul dno t

b e th e "best " technolog y for HA P contro l a

t composite s manufacturer s becaus e i t woul dincreas e greenhous e ga s emissions , conflic t with OSH A rules , an ddiscourag e pollutio n prevention . 2 . CF A als o believe s tha t oxidatio n i s no t

aprope r "abov e th e floor " control . Th e industry simply canno t

affor dit . I n addition , oxidation' s cost-effectivenes s i n reducin g emission s i s lo w compare dt o th e cost-effectivenes s o f pollutio n prevention . 3 . Accordingly , CF A oppose s an y require dus e o f

oxidatio n unde r

th e composite s fabricatin g MACT . 4 . However , EP A ha s sai dit i s considerin g ane w sourc e MAC T standar dtha t woul d requir e th e us e o f

oxidation . Althoug h CFA will continu e t o oppos e an y suc h standard , th e possibilit

y tha t EP A will propos e it

raise s th e question : "I f

EP A require s oxidatio n for som e ne w composit e manufacturin g plant s withi n agive n 'category ' o r 'subcategory' , ca

n it legally limi

t th e applicatio n o f

thi s ne w sourc e MAC T t o plant s abov e acertai n emission s threshol dwithi n tha t category o r

subcategory? " Lega l Reason s Wh y EP

A Ca n Establis h DifTeren tNe w Sourc e MAC T Standard s Withi n a Categor y o r Subcategor y 1 . Th e languag e o f

th e law allow s EP A t o establis h mor e than on e ne w sourc e MAC T standar dwithi n acategory o r subcategory . CA A §112(d)(3 ) require s ne w sourc e MAC T t o reflec t

th e contro l leve l achieve dby th e "bes t controlle dsimila

r source " i n a "categor y o r

subcategory" . No t

ever y ne w sourc e withi n acategor y o r subcategory will alway s b e "similar " t o al l othe r ne w sources . T o th e exten t tha t ne w source s ar e no t "similar " t o eac h other , th e referenc e t o "similar " source s require s EP A t o set mor e tha n on e ne w sourc e MAC T t o reflec t th e dissimilarity . Indeed , if Congres s ha

d mean t t o forbi dsuc h distinctions , i t woul dhav e require dne w sourc e MAC T t o b e base do n th e "bes t

controlled " sourc e withi n acategory o r subcategory , omittin g th e wor d"similar" . Th e wor d"similar " woul dhav e n o meanin g if it di dno t giv e EP A powe r t o establis h mor e than on e ne w sourc e MAC T withi n acategory o r subcategory . I n addition , CA A §112(d)(1 ) authorize s th e Administrato r t o "distinguis h amon g classes , type s an dsize s o f source s withi n acategory o r subcategory " i

n establishin g MAC T standards , (emphasi s added) . 2 . Th e structur e o f

th e law support s EPA' s authority t o establis h mor e than on e ne w sourc e MAC T in acategory o r subcategory . Definin g th e existin g sourc e MAC T floo rP. 4

i s th e basi c purpos e o f

acategory o r

subcategory . A category o r subcategory tha t

i s optimu mfor

thi s purpos e ma

y yiel dquestionabl e o r

eve n absur dresult s i

f ever y ne w sourc e tha t

fits withi n i t

mus t mee t th e same MAC T standard . Allowin g differen t ne w sourc e MACT s t o b e establishe dfor differen t type s o f ne w source s withi n acategory o r subcategory avoid s thi s bind . Polic y Reason s Wh y EPA Migh tWan tt o Establis h Differen tNe w Sourc e MACT s fo r

Differen tType s o f

Source s withi n A Categor y o r Subcategor y I f EP A coul dno t

establis h differen

t ne w sourc e MACT s for

differen t type s o f ne w source s withi n acategory o r subcategory , th e Agenc y coul deasily b e force dt o th e choic e o f eithe r (1 ) applyin g t o al

l ne w source s dow n t o th e 1 0 to n level ane w sourc e MAC T standar dtha t

only ver y larg e source s coul daffor dt o meet . That woul dpreven t

all constructio n o f

small ne w composite s fabricatin g plants , wit

h disastrou s consequence s for th e structur e an dfuture o f th e industry ; o r (2 ) settin g asingl e ne w sourc e MAC T tha t al l type s o f ne w source s i

n th e category o r

subcategory coul dmeet . That might no t alway s b e appropriate , sinc e ne w source s ma y var y widel y i n thei r abilit y t o meet ne w sourc e MAC T standards . Wha tFactor s Ca n EPA Conside r i n Distinguishin g Amon g Source s Whe n Settin g Ne w Sourc e MACT ? EP A ca n conside r

an y factor s tha t

make sens e i

n decidin g t o establis h differen t ne w sourc e MAC T standard s for

differen t type s o f source s withi n acategory o r subcategory . Thos e factor s expressl y includ e technical feasibility , sourc e size , cost , non-ai r qualit y healt h an d environmental impact , energ y impact , an dimpac t o n small business . 1 . Th e statut e only require s tha t th e source s subjec t

t o asingl e ne w sourc e MAC T b e "similar " t o eac h other . Whe n Congres s use s broa dlanguag e lik e this , th e agenc y ha s grea t discretio n t o adop t

any reasonabl e polic y choic e t o implement it . Chevron . Inc . v . NRDC . 46 7 U.S . 837 , 86 6 (1984) . 2 . CA A §112(d)(1 ) authorize s th e Administrato r t o "distinguis h amon g classes , type s an d size s o f source s withi n acategory o r subcategory " i

n establishin g MAC T standards . Thi s languag e directl y authorize s EP A t o distinguis h o n th e basi s o f sourc e siz e when settin g ne w sourc e MAC T for source s withi n acategory o r subcategory . 3 . CA A §112(d)(2 ) require s th e Administrato r t o conside r

" cost , non-ai r

healt h and environmental impact s andenerg y requirements " in establishin g MAC T for "ne w and existing " sources . I f

suc h factor s coul dno t

b e considere di

n decidin g whe n source s wer e "similar " t o eac h other , the y coul dno t b e considere da

t all i n settin g ne w sourc eP. 5



### MACT , since th e judgmen

t o f "similarity " essentiall

y determine s th e MAC

T standard . Since th e la

w plainl y require s EP

A t o conside

r suc h factors , i t follow s tha

t EP A mus t conside r the mi n decidin g whethe r o r no t source s ar e "similar " enoug

h t o b e covered b y th e sam e ne w sourc e MAC

T standard . Th e statutor y referenc e t o confinin

g ne w sourc e MAC

T t o "similar " source s cam

e fromth e Hous e version o

f th e 199 0 Amendments . Th

e Hous e Repor

t (p . 328 ) confirm s EPA' s powe

r t o conside r "energy , environmenta

l impacts , economic impacts an dothe r cost s as wel

l as an y othe r factors a s th e Administrato r identifie s b

y rule " i n definin g ne w sourc e MACT . Th e grea t majorit y o f composite s fabricators ar

e smal l businesses . Unde

r SBREF A EP A must exercis e an

y statutor y discretion i

t possesse s t o minimiz

e th e impac

t o f it s rule s o n smal l businesses . Since EP

A has discretion t o determin e whe n ne w source s ar e "similar " enoug

h t o eac h othe r to b e coveredb

y th e sam e ne w sourc e MAC

T standard , i t must defin e "similar " s o as t o minimiz e th e impac

t of ne w sourc e MAC

T o n smal l businesses .