Document ID: EPA-HQ-OAR-2002-0058-0637
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2004-02-26T05:00Z

C.
Regulatory
Flexibility
Act
The
EPA
has
determined
that
it
is
not
necessary
to
prepare
a
regulatory
flexibility
analysis
in
connection
with
the
final
rule.
We
have
also
determined
that
the
final
rule
will
not
have
a
significant
impact
on
a
substantial
number
of
small
entities.
For
purposes
of
assessing
the
impacts
of
the
final
rule
on
small
entities,
small
entity
is
defined
as:
(
1)
A
small
business
according
to
Small
Business
Administration
size
standards
by
the
North
American
Industry
Classification
System
(
NAICS)
category
of
the
owning
entity.
The
range
of
small
business
size
standards
for
the
40
affected
industries
ranges
from
500
to
1,000
employees,
except
for
petroleum
refining
and
electric
utilities.
In
these
latter
two
industries,
the
size
standard
is
1,500
employees
and
a
mass
throughput
of
75,000
barrels/
day
or
less,
and
4
million
kilowatthours
of
production
or
less,
respectively;
(
2)
a
small
governmental
jurisdiction
that
is
a
government
of
a
city,
county,
town,
school
district
or
special
district
with
a
population
of
less
than
50,000;
and
(
3)
a
small
organization
that
is
any
not­
for­
profit
enterprise
that
is
independently
owned
and
operated
and
is
not
dominant
in
its
field.
After
considering
the
economic
impact
of
the
final
rule
on
small
entities,
we
have
determined
that
the
final
rule
will
not
have
a
significant
impact
on
a
substantial
number
of
small
entities.
Based
on
SBA
size
definitions
for
the
affected
industries
and
reported
sales
and
employment
data,
EPA
identified
185
of
the
576
entities,
or
32
percent,
owning
affected
facilities
as
small
entities.
Although
small
entities
represent
32
percent
of
the
entities
within
the
source
category,
they
are
expected
to
incur
only
4
percent
of
the
total
compliance
costs
of
$
862.7
million
(
1998
dollars).
There
are
only
ten
small
entities
with
compliance
costs
equal
to
or
greater
than
3
percent
of
their
sales.
In
addition,
there
are
only
24
small
entities
with
cost­
to­
sales
ratios
between
1
and
3
percent.
An
economic
impact
analysis
was
performed
to
estimate
the
changes
in
product
price
and
production
quantities
for
the
final
rule.
As
mentioned
in
the
summary
of
economic
impacts
earlier
in
this
preamble,
the
estimated
changes
in
prices
and
output
for
affected
entities
is
no
more
than
0.05
percent.
This
analysis
indicates
that
the
final
rule
should
not
generate
a
significant
impact
on
a
substantial
number
of
small
entities
for
following
reasons.
First,
there
are
only
34
small
entities
(
or
18
percent
of
all
affected
small
entities)
with
compliance
costs
equal
to
or
greater
than
1
percent
of
their
sales.
Of
these,
only
ten
small
entities
(
or
5
percent
of
all
affected
small
entities)
with
compliance
costs
equal
to
or
greater
than
3
percent
of
their
sales.
Second,
the
results
of
the
economic
impact
analysis
show
minimal
impacts
on
prices
and
output
from
affected
firms,
including
small
entities,
due
to
the
implementation
of
the
final
rule.
This
analysis,
therefore,
allows
us
to
certify
that
there
will
not
be
a
significant
impact
on
a
substantial
number
of
small
entities
from
the
implementation
of
the
final
rule.
For
more
information,
consult
the
docket
for
the
final
rule.
It
should
be
noted
that
these
small
entity
impacts
are
in
advance
of
any
facility
demonstrating
eligibility
for
the
health­
based
compliance
alternatives.
Depending
on
the
number
of
affected
facilities
demonstrating
eligibility
for
the
healthbased
compliance
alternatives,
the
estimated
small
entity
impacts
could
fall
to
8
small
entities
with
compliance
costs
equal
to
or
greater
than
3
percent
of
their
sales,
and
14
small
entities
with
compliance
costs
between
1
and
3
percent
of
their
sales.
Therefore,
the
small
entity
impacts
associated
with
the
healthbased
compliance
alternatives
are
8
small
entities
with
compliance
costs
equal
to
or
greater
than
3
percent
of
their
sales,
and
14
small
entities
with
compliance
costs
between
1
and
3
percent
of
their
sales.
The
final
rule
will
not
have
a
significant
economic
impact
on
a
substantial
number
of
small
entities
as
a
result
of
several
decisions
EPA
made
regarding
the
development
of
the
rule,
which
resulted
in
limiting
the
impact
of
the
rule
on
small
entities.
First,
as
mentioned
earlier
in
this
preamble,
EPA
identified
small
units
(
heat
input
of
10
MMBtu/
hr
or
less)
and
limited
use
boilers
(
operate
less
than
10
percent
of
the
time)
as
separate
subcategories
different
from
large
units.
Many
small
and
limited
use
units
are
located
at
small
entities.
As
also
discussed
earlier,
the
results
of
the
MACT
floor
analysis
for
these
subcategories
of
existing
sources
was
that
no
MACT
floor
could
be
identified
except
for
the
limited
use
solid
fuel
subcategory,
which
is
less
stringent
than
the
MACT
floor
for
large
units.
Furthermore,
the
results
of
the
beyond­
the­
floor
analysis
for
these
subcategories
indicated
that
the
costs
would
be
too
high
to
consider
them
feasible
options.
Consequently,
the
final
rule
contains
no
emission
limitations
for
any
of
the
existing
small
and
limited
use
subcategories
except
the
existing
limited
use
solid
fuel
subcategory.
In
addition,
the
alternative
metals
emission
limit
resulted
in
minimizing
the
impacts
on
small
entities
since
some
of
the
potential
entities
burning
a
fuel
containing
very
little
metals
are
small
entities.