OAR Box 1781 

Prepped by Ollie Stewart 

Document Number: 

92) IV-C-6 

Docket Number: 

A-90-37 

Printed 10/29/2008 10:46:22 AM Sheet 92 of 142 

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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

RESEARCH TRIANGLE PARK. NC 27711 

MAR 3 | 1999 OFFICE OF 

AIR QUALITY PLANNING ' 

AND STANDARDS 

Mr. Patrick Raher 

Hogan and Hartson, L.L.P. 

Columbia House Square 

555 Thirteenth Street, N.W. 

Washington, DC 20004-1109 

Dear Mr. Raher: 

FEB 2 5 2000 

EPA AIR DOCKET 

Thank you for your February 17,1999 letter that outlines a suggested process for 

developing the criteria for plant wide apphcabihty limits (PAL) as a mechanism for sources to 

make changes at an existing facility without triggering new source review (NSR). Your letter 

suggests a meeting take place between industry stakeholders and EPA in early March, followed 

by an industry and non-EPA stakeholder meeting in mid-April followed by another EPA- . 

Stakeholder meeting in late April to get feedback from EPA. The goal would be to have a work 

product by May 10,1999. You may recall that in the February 2-3 meeting with stakeholders, 

there was considerable diversity among the proposals. We asked that by February 28, 

stakeholders provide written proposals that addressed some of the key issues identified on 

February 2-3. To date, we have received only one written product. 

We greatly appreciate your efforts to develop a constructive proposal for PAL. I am 

willing to have a meeting between EPA and your group some time in the last part of April, if you 

have a work product that would help us as we have further deliberations on PAL. Because of 

EPA's interest in moving forward on NSR Reform, we have already resumed work to produce a 

final rulemaking, based largely on the 1996 proposal, the 1998 Notice of Availability and the 

ensuing comments on each. We plan to promulgate the rulemaking around the end of 

December 1999, which would have us completing a draft of the Federal Register package around 

June. If a work product on the applicability issues can be produced in a timely manner relative to 

our schedule, we will take due consideration of it in promulgating the final rule. This means that 

you should provide such information to us by May 21,1999, so that we can stay on track with 

our schedule. Please contact Bill Harnett (919) 541-4979 or Karen Blanchard (919) 541-5503 

regarding whether and when the meeting will be scheduled. 

Sincerely, 

Seitz 

Director 

Office of Air Quality Planning 

and Standards 
P.3 

03/01/99 MON 12:34 FAX 2tf2 260 97766 

Feb. n. 1999 3:59PM HOf.AN'fc MKTS08 DG2 

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BY FACSIMILE 

JohnSeitz 

Environmental Protection Agency 

Office of Air Quality Plaaning.and Standards 

Research Triangle-Park, 

North Carolina 27711 

' Dear Mr. Seitz: 

Gornpletionof PAL/NSR Development Process 

As you are aware, at this recent EPA public meeting regarding NSK . 

reform, presentations w-ere made byia number of companies that have developed or . 

are interested in PAL permite. Thistietter ie submitted oa behalf of 

DaimlerChrysler Corporation, Intel porporation, Eli Lilly & Company, and Merck . 

& Company and represent a aspropo^al by these companies to participate in a 

process designed to exploEe*possible (components ofa PAL regulatory program in the 

NSR reform context. 

We recognize that 

shareholders on NSK reform. 

PALs would be primarily focused 

EPA may engage in a dialogue with other industry 

would envision, however, that 3. discussion of 

in^the process being proposed here. 

PiQ-pogefl T«ne EVarftij, 

The Companies noted above recognize the position expressed by 

.Assistant Administrator Pereiasej*)^ at the recent Clean Air Advisory Committee 

meeting that NSft reform deeisionsjmust be made in the near term. Accordingly, 

the Companies are comniitted to completing this proposal in an expeditious 

manner. The Companies believe that, barring.unforeseen circumstances, the 

process can be completed no later than May 10, 1999. The Companies would 

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1*7.1999 3:59PM HOGAN h HARTSON DC2 

HOGAN &HARZSON 

No. 6342 r. 4/5 

121003 

JohnSeitz 

February 17,1999 

Page 2 

propose to use the following check points to assure that progress is. being made 

toward identification and resolution of issues surrounding PAL/NSR reform. 

Initial Meeting With EPA 

The Companies would propose an initial meeting with 

EPA between March 1 and 3 to discuss issues and alternatives surrounding 

. PAL implementation. As you know, the P.AL presentations at the recent EPA 

public meeting identified the need for a PAL process to recognize differences 

among various types of manufacturing facilities that utilize a PAL. Thus, the 

meeting with EPA would utilize the presentations of DaimlerChrysler, Intel, 

and Lilly as the starting point for discussion of issues and possible 

alternatives.. ' , • 

Meeting With Non-EPA Interested Parties. 

* • 

Between our EPA meeting and March 22,1999, the 

Companies will discuss with state and environmental groups their 

perspective on the overall PAL concepts. The Companies would expect to 

obtain from these discussions a greater understanding of areas of 

commonality and possible differences. 

Report to EPA Regarding Open Issues. 

During the week of April 19,1999, the Companies plan to 

provide EPA with a summary of the areas of commonality and open issues, if 

any, with respect to PAL/NSR reform concepts. At that time, the Companies 

would be prepared to meet with EPA again to determine if the Agency felt 

that any further process steps would be useful in addressing open issues. 

At the conclusion of tjie foregoing meeting, the Companies would 

propose preparing a paper by no later than May 10,1999, summarizing the 

issues and alternatives that have been discussed as well as any remaining 

open issues and submit to EPA recommendations for resolving these issues. 

The Companies very much appreciate the Agency's commitment 

to NSR reform approaches that include PAL regulatory reform and look 

forward to being able tQ work with you and your staff in this regard. 

WNBC . tun/is • WMUS.OI 3 
03/01/99 MON 12:35 FAX 2012 2«0 Itl f 

•'Feb ] 17.199 9 3:59PM HOGAN I HARTSON Kl 

HOGAN &HAKTSON UL.* 

No. 6342. f. a/'D 

John Seitz 

February 17,1999 

Page 8 

Following your Teviaw of this letter, please do not hesitate to contact zne and 

we can hopefully arrange for aaa initial meeting between the Companies and 

EPA. 

JL5 

Best regards. 

Sincerely, 

Patrick M. Raher 

for 

DaimlerChrysler Corporation 

Eli Lilly & Company 

Intel, Corporation 

Merck & Company 

cc: Tom Curran 

m* Jacqueline Savage 

John Holmes 

Steve Harper

 ; 

Julia Hatcher 

BemiePaul 

Dorothy Bowers 

MikeBabos 

Todd^rde 

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