MEMORANDUM

SUBJECT : Inadvertent Errors in the Final Ru le, Final Regulations to Establish Requirements for Cooling Water Intake Structures at Existing Facilities and Amend Requirements at Phase I Fa cilities (Tier 1, SAN 5210, RIN 2040-AE95) - Correction of Inadvertent Errors

FROM : Nancy K. Stoner Acting Assistant Administrator Office of Water (4101M)

THRU: Steven M. Neugeboren Associate General Counsel Office of General Counsel (2355A)

Joel Beauvais Associate Administrator Office of Policy (1804A)
TO : Gina McCarthy EPA Administrator (1101A)

There were several inadvertent errors made in th e process of preparing th e signature package for a final rule under Clean Wate r Act section 316(b) entitled Final Regulation to Establish Requirements for Cooling Water Intake Stru ctures at Existing Facilities and Amend Requirements at Phase I Facilities. The rule was signed on May 19, 2014. This memo identifies these errors and shows the corrected text . These corrections are described below. 1

● Exhibit I-4 on page 44 is amended to make the changes shown below because the examples provided are incorrect and at odds with the regulatory text. The table identifies as examples of new units at an ex isting facility units that are not new units as defined in the regulatory text at § 125.92(u). The regulatory text defines a “new un it” as, in part, a stand-alone unit, further stating that a “stand-alone unit is a separate unit added to a facility for either the same general industrial operation or another opera tion.” The examples provided in the table are incorrect and inconsistent with the regulatory te xt because they identify as “new units” those units that are not additions to an existing facility but are rather substitutions for existing units at a facility. Similarly, the example provided of an existing unit has been changed in order to clarify that retrofitting of an existing uni t with a new boiler or use of a di fferent fuel does not result in conversion of an existing unit to a new unit fo r consistency with the regulatory text.

1 Note that the cited page numbers refer to the page in the redline/strikeout version of the preamble and therefore may not correspond to th e page on which the error appears on the prepublication copy.Exhibit I-4. Examples of new and existing units at existing electric generation facilities

Examples of new units at an existing facility Examples of existing units
A unit that is constructed at a stand-alone location at

an existing facility intake-structure regardless of any plans to retire any other unit at the facility in the
future A unit retrofitted with where a new boiler or fuel type Is employed

An existing unit is retired and demolished, with a new

unit constructed in the former unit’s location as a replacement (regardless of the change in generating capacity, the change in cooling water intake flow, or the use of an existing intake structure) A unit that is repowered or undergoes significant
modifications

● Exhibit I-5 on page 47 is amended to make the changes below because the examples provided are incorrect and at odds with the re gulatory text. These changes parallel those identified above. Exhibit I-5 identifies as exampl es of new units at an existing facility units that are not new units as defined in the regulatory te xt at § 125.92(u). The regulatory text defines a “new unit” as, in part, a stand-alone un it, further stating that a “stand-alone unit is a separate unit added to a facility for either the same genera l industrial operation or another operation.” The examples provided in the table are incorrect and inconsistent with the regulatory text because they identify as “new units” those units that are no t additions to an existing facility but are rather substitutions for existing units at a facility.

Exhibit I-5. Examples of new and existing units at manufacturers

Examples of new units at an existing facility Ex amples of existing units at an existing facility
A unit that is constructed at a stand-alone location at

an existing facility (either adjacent to existing units or on newly acquired or developed property) regardless of any plans to retire any other unit at the facility in the future A unit where only the waste heat generating process equipment or the cooling system equipment is replaced

A unit that is constructed adjacent to an existing unit

for the same industrial activity (such as expanding the production output by building a second unit as a stand-alone unit next to the existing unit) A unit where modifications are made to the waste heat generating process equipment or the cooling system (e.g., optimization, repairs, upgrades to operational elements) An existing unit is retired before or after a new unit is

constructed as a replacement (regardless of the change in production capacity, the change in Replacement or upgrade of ancillary equipment (e.g., pumps, motors, HVAC, etc.)