Document ID: EPA-HQ-OW-2004-0002-1592
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2006-06-21T04:00Z

June
20,
2006
NAICS
Code
Base
Size
Standards
Memo
to
the
Record
1
USING
UPDATED
NAICS
CODE
BASED
SIZED
STANDARDS
FOR
SMALL
BUSINESS
DETERMINATIONS
FOR
THE
FINAL
316(
B)
PHASE
III
RULE
As
described
in
Chapter
D1
of
the
Economic
and
Benefits
Analysis
for
the
Final
Section
316(
b)
Phase
III
Existing
Facilities
Rule
(
EPA­
821­
R­
06­
001),
the
SBA
small
business
size
standards
changed
from
a
SIC
code­
based
system
to
a
NAICS
code­
based
system
on
October
1,
2000.
The
NAICS
code
system
was
further
updated
effective
January
5,
2006.
Because
EPA
structured
its
data
collection
effort
for
existing
facilities
before
these
changes
and
based
on
the
SIC
code
framework,
EPA
performed
the
small
entity
analysis
for
existing
facilities
based
on
SIC
codes.
This
memorandum
presents
the
methodology
for
using
the
updated
NAICS­
based
size
standards,
effective
January
5,
2006,
for
use
in
the
small
entity
analysis.

Identifying
NAICS
Codes
and
Thresholds
EPA
started
with
the
unique
firm­
level,
4­
digit
SIC
codes
for
firms
that
own
existing
facilities
potentially
subject
to
Phase
III
regulation.
EPA
used
information
from
the
Economic
Census,
1997
Economic
Census:
Bridge
Between
NAICS
and
SIC,
to
determine
1997
NAICS
Codes
classifications
for
these
firms.
1
EPA
also
used
an
additional
Economic
Census
publication
and
dataset,
1997
NAICS
Matched
to
2002
NAICS,
to
bring
all
associated
NAICS
codes
forward
to
NAICS
2002
so
that
the
most
current
small
business
thresholds
could
be
used
(
Census,
2003).
EPA
then
matched
size
standards
from
the
updated
size
standards
effective
January
2006
to
the
NAICS
codes
associated
with
each
firm's
SIC
code.
Table
1
presents
firm­
level
SIC
codes
and
sector
descriptions,
and
the
corresponding
NAICS­
based
codes,
sector
descriptions,
and
small
business
thresholds,
of
firms
owning
any
Manufacturers
survey
facilities
(
i.
e.,
regardless
of
intake
size)
determined
to
be
potentially
subject
to
the
Phase
III
regulation.
For
ease
of
reference,
gray
shading
is
used
to
highlight
SIC
codes
with
corresponding
NAICS
code
that
have
a
different
size
standard
from
the
SIC
standard.

Table
1:
Small
Business
Thresholds
Based
on
SIC
Codes
and
NAICS
Codes
SIC
Code
SIC
Code
Description
NAICS
Code
NAICS
Code
Description
NAICS
Size
Standards
(
employees/
$
millions)

111991
Sugar
Beet
Farming
$
0.75
0133
Sugarcane
and
Sugar
Beets
111930
Sugarcane
Farming
$
0.75
1011
Iron
Ores
212210
Iron
Ore
Mining
500
1311
Crude
Petroleum
and
Natural
Gas.
211111
Crude
Petroleum
and
Natural
Gas
Extraction
500
2011
Meat
Packing
Plants
311611
Animal
(
except
Poultry)
Slaughtering
500
2046
Wet
Corn
Milling
311221
Wet
Corn
Milling
750
2061
Cane
Sugar,
Except
Refining
311311
Sugarcane
Mills
500
2062
Cane
Sugar
Refining
311312
Cane
Sugar
Refining
750
2063
Beet
Sugar
311313
Beet
Sugar
Manufacturing
750
311222
Soybean
Processing
500
2075
Soybean
Oil
Mills
311225
Fats
and
Oils
Refining
and
Blending
1,000
2211
Broadwoven
Fabric
Mills,
313210
Broadwoven
Fabric
Mills
1,000
1
Two
different
bridges
are
available
from
Census.
One
provides
a
bridge
based
on
the
processes/
activities
performed
and
the
other
bridge
is
based
on
establishment
classifications.
This
analysis
uses
the
bridge
based
on
establishment
classifications
(
Census,
2000).
June
20,
2006
NAICS
Code
Base
Size
Standards
Memo
to
the
Record
2
Table
1:
Small
Business
Thresholds
Based
on
SIC
Codes
and
NAICS
Codes
SIC
Code
SIC
Code
Description
NAICS
Code
NAICS
Code
Description
NAICS
Size
Standards
(
employees/
$
millions)

Cotton
321113
Sawmills
500
321912
Cut
Stock,
Resawing
Lumber,
and
Planing
500
321918
Other
Millwork
(
including
Flooring)
500
2421
Sawmills
and
Planing
Mills,
General
321999
All
Other
Miscellaneous
Wood
Product
Manufacturing
500
2611
Pulp
Mills
322110
Pulp
Mills
750
322121
Paper
(
except
Newsprint)
Mills
750
2621
Paper
Mills
322122
Newsprint
Mills
750
2631
Paperboard
Mills
322130
Paperboard
Mills
750
2653
Corrugated
and
Solid
Fiber
Boxes
322211
Corrugated
and
Solid
Fiber
Box
Manufacturing
500
322223
Plastics,
Foil,
and
Coated
Paper
Bag
Manufacturing
500
2673
Plastics,
Foil,
and
Coated
Paper
Bags
326111
Unsupported
Plastics
Bag
Manufacturing
500
322121
Paper
(
except
Newsprint)
Mills
750
2676
Sanitary
Paper
Products
322291
Sanitary
Paper
Product
Manufacturing
500
322222
Coated
and
Laminated
Paper
Manufacturing
500
322231
Die­
Cut
Paper
and
Paperboard
Office
Supplies
Manufacturing
500
2679
Converted
Paper
and
Paperboard
Products,
N.
E.
C.

322299
All
Other
Converted
Paper
Product
Manufacturing
500
2711
Newspapers:
Publishing,
or
Publishing
and
Printing
511110
Newspaper
Publishers
500
2812
Alkalies
and
Chlorine
325181
Alkalis
and
Chlorine
Manufacturing
1,000
2813
Industrial
Gases
325120
Industrial
Gas
Manufacturing
1,000
325131
Inorganic
Dye
and
Pigment
Manufacturing
1,000
325188
All
Other
Basic
Inorganic
Chemical
Manufacturing
1,000
325998
All
Other
Miscellaneous
Chemical
Product
and
Preparation
Manufacturing
500
2819
Industrial
Inorganic
Chemicals,
N.
E.
C.

331311
Alumina
Refining
1,000
2821
Plastics
Materials,
Synthetic
Resins,
and
Nonvulcanizable
Elastomers
325211
Plastics
Material
and
Resin
Manufacturing
750
2824
Manmade
Organic
Fibers,
Except
Cellulosic
325222
Noncellulosic
Organic
Fiber
Manufacturing
1,000
2833
Medicinal
Chemicals
and
Botanical
Products
325411
Medicinal
and
Botanical
Manufacturing
750
2834
Pharmaceutical
Preparations
325412
Pharmaceutical
Preparation
Manufacturing
750
2841
Soap
and
Other
Detergents,
Except
Specialty
Cleaners
325611
Soap
and
Other
Detergent
Manufacturing
(
pt)
750
2851
Paints,
Varnishes,
Lacquers,
Enamels,
and
Allied
Products
325510
Paint
and
Coating
Manufacturing
500
June
20,
2006
NAICS
Code
Base
Size
Standards
Memo
to
the
Record
3
Table
1:
Small
Business
Thresholds
Based
on
SIC
Codes
and
NAICS
Codes
SIC
Code
SIC
Code
Description
NAICS
Code
NAICS
Code
Description
NAICS
Size
Standards
(
employees/
$
millions)

325110
Petrochemical
Manufacturing
1,000
325120
Industrial
Gas
Manufacturing
1,000
325188
All
Other
Basic
Inorganic
Chemical
Manufacturing
1,000
325193
Ethyl
Alcohol
Manufacturing
1,000
2869
Industrial
Organic
Chemicals,
N.
E.
C.

325199
All
Other
Basic
Organic
Chemical
Manufacturing
1,000
2873
Nitrogenous
Fertilizers
325311
Nitrogenous
Fertilizer
Manufacturing
1,000
2874
Phosphatic
Fertilizers
325312
Phosphatic
Fertilizer
Manufacturing
500
2891
Adhesives
and
Sealants
325520
Adhesive
Manufacturing
500
311942
Spice
and
Extract
Manufacturing
500
325199
All
Other
Basic
Organic
Chemical
Manufacturing
1,000
325510
Paint
and
Coating
Manufacturing
500
2899
Chemicals
and
Chemical
Preparations,
N.
E.
C.

325998
All
Other
Miscellaneous
Chemical
Product
and
Preparation
Manufacturing
500
2911
Petroleum
Refining
324110
Petroleum
Refineries
1,500a
324199
All
Other
Petroleum
and
Coal
Products
Manufacturing
500
3312
Steel
Works,
Blast
Furnaces
(
Including
Coke
Ovens),
and
Rolling
Mills
331111
Iron
and
Steel
Mills
1,000
331112
Electrometallurgical
Ferroalloy
Product
Manufacturing
750
3313
Electrometallurgical
Products,
Except
Steel
331492
Secondary
Smelting,
Refining,
and
Alloying
of
Nonferrous
Metal
(
except
Copper
and
Aluminum)
750
331222
Steel
Wire
Drawing
1,000
3315
Steel
Wiredrawing
and
Steel
Nails
and
Spikes
332618
Other
Fabricated
Wire
Product
Manufacturing
500
3316
Cold­
Rolled
Steel
Sheet,
Strip,
and
Bars
331221
Cold­
Rolled
Steel
Shape
Manufacturing
1,000
3317
Steel
Pipe
and
Tubes
331210
Iron
and
Steel
Pipe
and
Tube
Manufacturing
from
Purchased
Steel
1,000
3334
Primary
Production
of
Aluminum
331312
Primary
Aluminum
Production
1,000
3339
Primary
Smelting
and
Refining
of
Nonferrous
metals,
Except
Copper
and
Aluminum
331419
Primary
Smelting
and
Refining
of
Nonferrous
Metal
(
except
Copper
and
Aluminum)
750
331315
Aluminum
Sheet,
Plate
and
Foil
Manufacturing
750
3353
Aluminum
Sheet,
Plate,
and
Foil
332996
Fabricated
Pipe
and
Pipe
Fitting
Manufacturing
500
3421
Cutlery
332211
Cutlery
and
Flatware
(
except
Precious)
Manufacturing
500
336211
Motor
Vehicle
Body
Manufacturing
1,000
3714
Motor
Vehicle
Parts
and
Accessories
336312
Gasoline
Engine
and
Engine
Parts
Manufacturing
750
June
20,
2006
NAICS
Code
Base
Size
Standards
Memo
to
the
Record
4
Table
1:
Small
Business
Thresholds
Based
on
SIC
Codes
and
NAICS
Codes
SIC
Code
SIC
Code
Description
NAICS
Code
NAICS
Code
Description
NAICS
Size
Standards
(
employees/
$
millions)

336322
Other
Motor
Vehicle
Electrical
and
Electronic
Equipment
Manufacturing
750
336330
Motor
Vehicle
Steering
and
Suspension
Components
(
except
Spring)
Manufacturing
750
336340
Motor
Vehicle
Brake
System
Manufacturing
750
336350
Motor
Vehicle
Transmission
and
Power
Train
Parts
Manufacturing
750
336399
All
Other
Motor
Vehicle
Parts
Manufacturing
750
332912
Fluid
Power
Valve
and
Hose
Fitting
Manufacturing
500
333995
Fluid
Power
Cylinder
and
Actuator
Manufacturing
500
333996
Fluid
Power
Pump
and
Motor
Manufacturing
500
3728
Aircraft
Parts
and
Auxiliary
Equipment,
N.
E.
C.

336413
Other
Aircraft
Part
and
Auxiliary
Equipment
Manufacturing
1,000b
3851
Ophthalmic
Goods
339115
Ophthalmic
Goods
Manufacturing
500
314999
All
Other
Miscellaneous
Textile
Product
Mills
500
316110
Leather
and
Hide
Tanning
and
Finishing
500
321999
All
Other
Miscellaneous
Wood
Product
Manufacturing
500
322299
All
Other
Converted
Paper
Product
Manufacturing
500
323110
Commercial
Lithographic
Printing
500
323111
Commercial
Gravure
Printing
500
323112
Commercial
Flexographic
Printing
500
323113
Commercial
Screen
Printing
500
323119
Other
Commercial
Printing
500
325998
All
Other
Miscellaneous
Chemical
Product
and
Preparation
Manufacturing
500
326199
All
Other
Plastics
Product
Manufacturing
500
332212
Hand
and
Edge
Tool
Manufacturing
500
332999
All
Other
Miscellaneous
Fabricated
Metal
Product
Manufacturing
500
335121
Residential
Electric
Lighting
Fixture
Manufacturing
500
337127
Institutional
Furniture
Manufacturing
500
3999
Manufacturing
Industries,
N.
E.
C.

339999
All
Other
Miscellaneous
Manufacturing
500
424510
Grain
and
Field
Bean
Merchant
Wholesalers
500
5153
Grain
and
Field
Beans
425110
Business
to
Business
Electronic
Markets
(
pt)
100
June
20,
2006
NAICS
Code
Base
Size
Standards
Memo
to
the
Record
5
Table
1:
Small
Business
Thresholds
Based
on
SIC
Codes
and
NAICS
Codes
SIC
Code
SIC
Code
Description
NAICS
Code
NAICS
Code
Description
NAICS
Size
Standards
(
employees/
$
millions)

425120
Wholesale
Trade
Agents
and
Brokers
(
pt)
100
424710
Petroleum
Bulk
Stations
and
Terminals
100
454311
Heating
Oil
Dealers
$
11.50
5171
Petroleum
Bulk
Stations
and
Terminals
454312
Liquefied
Petroleum
Gas
(
Bottled
Gas)
Dealers
$
6.50
522120
Savings
Institutions
$
165
million
in
assetsc
522210
Credit
Card
Issuing
$
165
million
in
assetsc
522220
Sales
Financing
$
6.50
6141
Personal
Credit
Institutions
522291
Consumer
Lending
$
6.50
6719
Offices
of
Holding
Companies,
N.
E.
C.
551112
Offices
of
Other
Holding
Companies
$
6.50
Notes
(
from
source
SBA
publications):

a
For
purposes
of
Government
procurement,
the
petroleum
refiner
must
be
a
concern
that
has
no
more
than
1,500
employees
nor
more
than
125,000
barrels
per
calendar
day
total
Operable
Atmospheric
Crude
Oil
Distillation
capacity.
Capacity
includes
owned
or
leased
facilities
as
well
as
facilities
under
a
processing
agreement
or
an
arrangement
such
as
an
exchange
agreement
or
a
throughput.
The
total
product
to
be
delivered
under
the
contract
must
be
at
least
90
percent
refined
by
the
successful
bidder
from
either
crude
oil
or
bona
fide
feedstocks.

b
Contracts
for
the
rebuilding
or
overhaul
of
aircraft
ground
support
equipment
on
a
contract
basis
are
classified
under
NAICS
code
336413.

c
A
financial
institution's
assets
are
determined
by
averaging
the
assets
reported
on
its
four
quarterly
financial
statements
for
the
preceding
year.
"
Assets"
for
the
purposes
of
this
size
standard
means
the
assets
defined
according
to
the
Federal
Financial
Institutions
Examination
Council
034
call
report
form.

Source:
Census,
2000;
Census,
2003;
U.
S.
SBA,
2006.

Determination
of
NAICS
Based
Size
Thresholds
In
instances
in
which
a
single
SIC
code
maps
to
more
than
one
NAICS
code
and
the
size
thresholds
for
the
NAICS
codes
vary,
EPA
used
the
higher/
highest
of
the
NAICS­
based
size
thresholds
for
the
small
entity
determination.
Using
the
higher/
highest
of
the
NAICS­
based
size
thresholds
for
the
determination
provides
a
more
conservative
test
of
the
chance
that
a
firm
would
have
been
classified
as
small
if
the
NAICS­
based
size
thresholds
had
been
used
in
the
small
entity
analysis
instead
of
the
SIC­
based
size
thresholds.
June
20,
2006
NAICS
Code
Base
Size
Standards
Memo
to
the
Record
6
REFERENCES
U.
S.
Census
Bureau
(
Census).
2003.
1997
NAICS
Matched
to
2002
NAICS.
May
2003.
Available
at:
http://
www.
census.
gov/
epcd/
naics02/
NAICS97toNAICS02.
xls.

U.
S.
Census
Bureau
(
Census).
2000.
1997
Economic
Census:
Bridge
Between
NAICS
and
SIC.
June
2000.
Available
at:
http://
www.
census.
gov/
epcd/
ec97brdg/
(
Table
2).

U.
S.
Small
Business
Administration
(
U.
S.
SBA).
2006.
Small
Business
Size
Standards
matched
to
North
American
Industry
Classification
System.
Available
at:
http://
www.
sba.
gov/
size/
sizetable2002.
html
U.
S.
Small
Business
Administration
(
U.
S.
SBA).
2002.
Small
Business
Size
Standards.
Available
at:
http://
www.
sba.
gov/
size/
indextableofsize.
html.

U.
S.
Small
Business
Administration
(
U.
S.
SBA).
2000.
Effective
until
September
30,
2000.
Small
Business
Size
Standards.
Available
at:
http://
www.
sba.
gov/
regulations/
siccodes/.