Document ID: EPA-HQ-OAR-2004-0083-0001
Agency: epa
Document Type: Proposed Rule
Title: Revision of Source Category Lists for Standards Under Sections 112(c) and 112(k) of the Clean Air Act; and National Emission Standards for Hazardous Air Pollutants for Area Sources: Electric Arc Furnace Steelmaking Facilities
Posted Date: 2007-09-20T04:00Z

[Federal Register: September 20, 2007 (Volume 72, Number 182)]
[Proposed Rules]               
[Page 53813-53836]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20se07-29]                         

[[Page 53813]]

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Part II

Environmental Protection Agency

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40 CFR Part 63

Revision of Source Category Lists for Standards Under Sections 112(c) 
and 112(k) of the Clean Air Act; and National Emission Standards for 
Hazardous Air Pollutants for Area Sources: Electric Arc Furnace 
Steelmaking Facilities; Proposed Rule

[[Page 53814]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 63

[EPA-HQ-OAR-2004-0083; FRL-8470-2]
RIN 2060-AM71

 
Revision of Source Category Lists for Standards Under Sections 
112(c) and 112(k) of the Clean Air Act; and National Emission Standards 
for Hazardous Air Pollutants for Area Sources: Electric Arc Furnace 
Steelmaking Facilities

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule; notice of revisions to source category lists.

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SUMMARY: EPA is adding electric arc furnace steelmaking facilities to 
the list of source categories subject to regulation under Clean Air Act 
(CAA) section 112(c)(6) and revising the area source category list for 
the Integrated Urban Air Toxics Strategy. At the same time, EPA is 
proposing national emission standards for electric arc furnace 
steelmaking facilities that are area sources of hazardous air 
pollutants (HAP). The proposed standards establish requirements for the 
control of mercury emissions that are based on the maximum achievable 
control technology (MACT) and requirements for the control of other 
hazardous air pollutants that are based on generally available control 
technology or management practices.

DATES: Comments must be received on or before October 22, 2007, unless 
a public hearing is requested by October 1, 2007. If a hearing is 
requested on the proposed rule, written comments must be received by 
November 5, 2007. Under the Paperwork Reduction Act, comments on the 
information collection provisions must be received by OMB on or before 
October 22, 2007.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2004-0083, by one of the following methods:
     http://www.regulations.gov: Follow the on-line 

instructions for submitting comments.
     E-mail: a-and-r-Docket@epa.gov. 
     Fax: (202) 566-9744.
     Mail: National Emission Standards for Hazardous Air 
Pollutants for Area Sources: Electric Arc Furnace Steelmaking 
Facilities Docket, Environmental Protection Agency, Air and Radiation 
Docket and Information Center, Mailcode: 2822T, 1200 Pennsylvania Ave., 
NW., Washington, DC 20460. Please include a total of two copies. In 
addition, please mail a copy of your comments on the information 
collection provisions to the Office of Information and Regulatory 
Affairs, Office of Management and Budget (OMB), Attn: Desk Officer for 
EPA, 725 17th St., NW., Washington, DC 20503.
     Hand Delivery: EPA Docket Center, Public Reading Room, EPA 
West, Room 3334, 1301 Constitution Ave., NW., Washington, DC 20460. 
Such deliveries are only accepted during the Docket's normal hours of 
operation, and special arrangements should be made for deliveries of 
boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-
2004-0083. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://www.regulations.gov including any personal information provided, 

unless the comment includes information claimed to be confidential 
business information (CBI) or other information whose disclosure is 
restricted by statute. Do not submit information that you consider to 
be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov Web site is an ``anonymous 

access'' system, which means EPA will not know your identity or contact 
information unless you provide it in the body of your comment. If you 
send an e-mail comment directly to EPA without going through http://www.regulations.gov
, your e-mail address will be automatically captured 

and included as part of the comment that is placed in the public docket 
and made available on the Internet. If you submit an electronic 
comment, EPA recommends that you include your name and other contact 
information in the body of your comment and with any disk or CD-ROM you 
submit. If EPA cannot read your comment due to technical difficulties 
and cannot contact you for clarification, EPA may not be able to 
consider your comment. Electronic files should avoid the use of special 
characters, any form of encryption, and be free of any defects or 
viruses.
    Docket: All documents in the docket are listed in the http://www.regulations.gov
 index. Although listed in the index, some 

information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy 
form. Publicly available docket materials are available either 
electronically in http://www.regulations.gov or in hard copy at the 

National Emission Standards for Hazardous Air Pollutants for Area 
Sources: Electric Arc Furnace Steelmaking Facilities Docket at the EPA 
Docket and Information Center in the EPA Headquarters Library, EPA 
West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. The 
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through 
Friday, excluding legal holidays. The telephone number for the Public 
Reading Room is (202) 566-1744, and the telephone number for the Air 
Docket is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: Mr. Phil Mulrine, Sector Policies and 
Program Division, Office of Air Quality Planning and Standards (D243-
02), Environmental Protection Agency, Research Triangle Park, North 
Carolina 27711, telephone number (919) 541-5289; fax number (919) 541-
3207, e-mail address: mulrine.phil@epa.gov.

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    The regulated category and entities affected by this proposed 
action include:

------------------------------------------------------------------------
                                                  Examples of regulated
            Category             NAICS code \1\          entities
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Industry.......................          331111  Steel mills with
                                                  electric arc furnace
                                                  steelmaking
                                                  facilities.
------------------------------------------------------------------------
\1\ North American Industry Classification System.

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be affected by this 
action. To determine whether your facility would be regulated by this 
action, you should examine the applicability criteria in 40 CFR 
63.10680 of subpart YYYYY (National Emission Standards for

[[Page 53815]]

Hazardous Air Pollutants for Area Sources: Electric Arc Furnace 
Steelmaking Facilities). If you have any questions regarding the 
applicability of this action to a particular entity, consult either the 
air permit authority for the entity or your EPA regional representative 
as listed in 40 CFR 63.13 of subpart A (General Provisions).

B. What should I consider as I prepare my comments for EPA?

    Do not submit information containing CBI to EPA through http://www.regulations.gov
 or e-mail. Send or deliver information identified 

as CBI only to the following address: Roberto Morales, OAQPS Document 
Control Officer (C404-02), Office of Air Quality Planning and 
Standards, Environmental Protection Agency, Research Triangle Park, 
North Carolina 27711, Attention Docket ID EPA-HQ-OAR-2004-0083. Clearly 
mark the part or all of the information that you claim to be CBI. For 
CBI information in a disk or CD-ROM that you mail to EPA, mark the 
outside of the disk or CD-ROM as CBI and then identify electronically 
within the disk or CD-ROM the specific information that is claimed as 
CBI. In addition to one complete version of the comment that includes 
information claimed as CBI, a copy of the comment that does not contain 
the information claimed as CBI must be submitted for inclusion in the 
public docket. Information so marked will not be disclosed except in 
accordance with procedures set forth in 40 CFR part 2.

C. Where can I get a copy of this document?

    In addition to being available in the docket, an electronic copy of 
this notice and proposed action will also be available on the Worldwide 
Web (WWW) through the Technology Transfer Network (TTN). Following 
signature, a copy of this proposed action will be posted on the TTN's 
policy and guidance page for newly proposed or promulgated rules at the 
following address: http://www.epa.gov/ttn/oarpg/. The TTN provides 

information and technology exchange in various areas of air pollution 
control.

D. When would a public hearing occur?

    If anyone contacts EPA requesting to speak at a public hearing 
concerning the proposed rule by October 1, 2007, we will hold a public 
hearing on October 5, 2007. If you are interested in attending the 
public hearing, contact Ms. Pamela Garrett at (919) 541-7966 to verify 
that a hearing will be held. If a public hearing is held, it will be 
held at 10 a.m. at the EPA's Environmental Research Center Auditorium, 
Research Triangle Park, NC, or an alternate site nearby.

E. How is this document organized?

    The information in this preamble is organized as follows:

I. General Information
    A. Does this action apply to me?
    B. What should I consider as I prepare my comments to EPA?
    C. Where can I get a copy of this document?
    D. When would a public hearing occur?
    E. How is this document organized?
II. Background Information
    A. What is the statutory authority for the proposed NESHAP?
    B. What criteria did EPA use in developing this proposed NESHAP?
III. Addition and Revision to Source Category Lists
IV. Proposed NESHAP for EAF Steelmaking Facilities
    A. What area source category is affected by the proposed NESHAP?
    B. What are the production processes and emissions sources?
    C. Summary of the Proposed Requirements
    D. What is our rationale for the proposed MACT and GACT 
standards?
V. Impacts of the Proposed Standards
VI. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act
    D. Unfunded Mandates Reform Act
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health and Safety Risks
    H. Executive Order 13211: Actions That Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer Advancement Act
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations

II. Background Information

A. What is the statutory authority for the proposed NESHAP?

    Section 112(k)(3)(B) of the CAA requires EPA to identify at least 
30 hazardous air pollutants (HAP), which, as the result of emissions of 
area sources,\1\ pose the greatest threat to public health in urban 
areas. Consistent with this provision, in 1999, in the Integrated Urban 
Air Toxics Strategy, EPA identified the 30 HAP that pose the greatest 
potential health threat in urban areas, and these HAP are referred to 
as the ``Urban HAP.'' See 64 FR 38715, July 19, 1999. Section 112(c)(3) 
requires EPA to list sufficient categories or subcategories of area 
sources to ensure that area sources representing 90 percent of the 
emissions of the 30 Urban HAP are subject to regulation. EPA listed the 
source categories that account for 90 percent of the Urban HAP 
emissions in the Integrated Urban Air Toxics Strategy.\2\ Sierra Club 
sued EPA, alleging a failure to complete standards for the area source 
categories listed pursuant to CAA sections 112(c)(3) and (k)(3)(B) 
within the time frame specified by the statute. See Sierra Club v. 
Johnston, No. 01-1537, (D.D.C.). On March 31, 2006, the court issued an 
order requiring EPA to promulgate standards under CAA section 112(d) 
for those area source categories listed pursuant to CAA section 
112(c)(3).
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    \1\ An area source is a stationary source of hazardous air 
pollutant (HAP) emissions that is not a major source. A major source 
is a stationary source that emits or has the potential to emit 10 
tons per year (tpy) or more of any HAP or 25 tpy or more of any 
combination of HAP.
    \2\ Since its publication in the Integrated Urban Air Toxics 
Strategy in 1999, EPA has revised the area source category list 
several times.
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    We added electric arc furnace (EAF) steelmaking facilities to the 
Integrated Urban Air Toxics Strategy Area Source Category List on June 
26, 2002 (67 FR 43112). The inclusion of this source category on the 
section 112(c)(3) area source category list is based on 1990 emissions 
data, as EPA used 1990 as the baseline year for that listing. This 
source category was listed as contributing a percentage of the total 
area source emissions for the following ``Urban HAP'': arsenic, 
cadmium, chromium, lead, manganese, mercury, nickel, and 
trichloroethylene. We subsequently discovered that the 1990 emissions 
data for trichloroethylene was for a few specialty EAF facilities that 
used trichloroethylene in vapor degreasing. These emission units at 
both major and area sources are already subject to standards for 
halogenated solvent cleaning under 40 CFR part 63, subpart T. 
Consequently, we are not proposing any additional standards for 
trichloroethylene from EAF steelmaking facilities.
    Section 112(c)(6) requires EPA to list, and subject to standards 
pursuant to section 112(d)(2) or (d)(4), categories of sources 
accounting for not less than 90 percent of emissions of each of seven 
specific HAP: alkylated lead compounds, polycyclic organic matter, 
hexachlorobenzene, mercury, polychlorinated biphenyls, 2,3,7,9-
tetrachlorodibenzofurans, and 2,3,7,8-tetrachloridibenzo-p-dioxin. 
Congress targeted these HAP for regulation because of their persistence 
and tendency to bioaccumulate in the environment. These HAP are also

[[Page 53816]]

associated with adverse health effects such as nervous system damage 
and reproductive effects. We published an initial list of source 
categories under CAA section 112(c)(6) on April 10, 1998 (63 FR 17838). 
As discussed below in section III of this preamble, we are adding EAF 
steelmaking facilities that are area sources to this list of source 
categories under CAA section 112(c)(6) solely on the basis of mercury 
emissions.
    During the development of these proposed emissions standards, we 
discovered two EAF facilities that are co-located at integrated iron 
and steel plants that are major sources, of which we were previously 
not aware. We plan to list EAF steelmaking facilities as major sources 
under CAA section 112(c) and to develop national emission standards for 
hazardous air pollutants (NESHAP) for them based on the performance of 
maximum achievable control technology (MACT). However, these two major 
sources are not needed to fulfill the CAA section 112(c)(6) requirement 
to develop standards for sources accounting for not less than 90 
percent of the emissions of mercury so we are not pursuing such action 
in this rulemaking given the severe time constraints to which this 
rulemaking is subject.

B. What criteria did EPA use in developing this proposed NESHAP?

    We are proposing standards for mercury in response to a court-
ordered deadline that requires promulgation of standards for listed CAA 
section 112(c)(6) source categories by December 15, 2007 (Sierra Club 
v. Johnson, no. 01-1537, D.D.C). The proposed standards for mercury 
emissions from all EAF steelmaking facilities that are area sources of 
HAP are consistent with CAA section 112(c)(6).
    The court order in Sierra Club v. Johnson also requires EPA to 
issue standards for 10 source categories that EPA listed pursuant to 
CAA section 112(c)(3) and (k)(3)(B) by December 15, 2007. In response 
to this requirement, we are proposing standards based on generally 
available control technology (GACT) for the control of the Urban HAP 
arsenic, cadmium, chromium, lead, manganese, and nickel from area 
source electric arc furnace steelmaking facilities. The bases for these 
standards are described below.
    Under CAA section 112(d)(5), we may elect to promulgate standards 
or requirements for area sources ``which provide for the use of 
generally available control technologies or management practices by 
such sources to reduce emissions of hazardous air pollutants.'' The 
alternative is to base standards on performance of MACT under section 
112(d)(2) and (3) as described below. Additional information on the 
definition of ``generally available control technology or management 
practices'' is found in the Senate report on the 1990 amendments to the 
CAA (S. Rep. No. 101-228, 101st Cong. 1st sess. 171-172). That report 
states that GACT is to encompass:

* * * methods, practices and techniques which are commercially 
available and appropriate for application by the sources in the 
category considering economic impacts and the technical capabilities 
of the firms to operate and maintain the emissions control systems.

Consistent with this legislative history, we can and do consider costs 
and economic impacts in determining GACT.
    As provided in CAA section 112(d)(5), EPA is electing to propose 
standards under CAA section 112(c)(3) based on GACT for EAF steelmaking 
facilities that are area sources. As stated further below (see section 
IV.D.3 of this preamble), we do not believe that a choice to base 
standards for these area sources on GACT, rather than MACT, requires 
justification. However, should justification be required, we are 
proposing standards based on GACT rather than on MACT because these 
facilities are already well controlled for the metal HAP these sources 
emit, and a regulation based on GACT will appropriately allow us to 
consider the costs and economic impacts of more stringent regulations. 
See the discussion of particulate matter (PM) controls in section 
IV.D.4 of this preamble. We believe the consideration of costs and 
economic impacts is especially important for EAF area sources because, 
given their current well-controlled levels, a MACT floor determination 
could result in only marginal reductions in HAP emissions at very high 
costs for modest incremental improvement in control. The consideration 
of cost is especially important for the small businesses that operate 
small specialty and stainless steel EAF facilities.
    We are proposing standards pursuant to CAA section 112(d)(2) for 
mercury emissions from all EAF steelmaking facilities that are area 
sources of HAP. Standards established under CAA section 112(d)(2) must 
reflect performance of MACT. The MACT-based regulation can be based on 
the emissions reductions achievable through application of measures, 
processes, methods, systems, or techniques including, but not limited 
to: (1) Reducing the volume of, or eliminating emissions of, such 
pollutants through process changes, substitutions of materials, or 
other modifications; (2) enclosing systems or processes to eliminate 
emissions; (3) collecting, capturing, or treating such pollutants when 
released from a process, stack, storage or fugitive emission point; (4) 
design, equipment, work practices, or operational standards as provided 
in section 112(h) of the CAA; or (5) a combination of the above.\3\
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    \3\ Section 112(d)(4) (not relevant here) allows alternative 
risk-based standards for HAP which are threshold pollutants.
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    The MACT floor is the minimum control level allowed for NESHAP and 
is defined under CAA section 112(d)(3). For new sources, MACT standards 
cannot be less stringent than the emission control achieved in practice 
by the best-controlled similar source, as determined by the 
Administrator. The MACT standards for existing sources can be less 
stringent than standards for new sources, but they cannot be less 
stringent than the average emission limitation achieved by the best 
performing 12 percent of existing sources in the category or 
subcategory (for which the Administrator has emission information) or 
the best performing 5 sources for categories or subcategories with 
fewer than 30 sources.
    Although emission standards are often structured in terms of 
numerical emissions limits, alternative approaches are sometimes 
necessary and are authorized pursuant to CAA section 112(d)(2). For 
example, in some cases, physically measuring emissions from a source 
may be not practicable due to technological and economic limitations. 
Sections 112(d)(2)(D) and 112(h) of the CAA authorize EPA to promulgate 
a design, equipment, work practice, or operational standard, or 
combination thereof, consistent with the provisions of CAA sections 
112(d) or (f), in those cases where it is not feasible to prescribe or 
enforce an emission standard. Under CAA section 112(h)(2), the phrase 
``not feasible to prescribe or enforce an emission standard'' includes 
situations in which the EPA determines that the HAP emissions cannot be 
emitted through a conveyance designed and constructed to emit or 
capture the emissions or the application of measurement methodology to 
a particular class of sources is not practicable due to technological 
and economic limitations.
    We are proposing an emissions standard for mercury pursuant to CAA 
section 112(d)(2)(A) that is based on pollution prevention measures 
which

[[Page 53817]]

``reduce the volume of, or eliminate emissions of, such pollutants 
through process changes, substitution of materials, or other 
modifications.'' We describe below why this standard establishes the 
MACT floor for mercury under section 112(d)(3), and further why we are 
not proposing beyond-the-floor standards for mercury. We note first, 
however, that we do not view standards requiring (or directly based 
upon) pollution prevention to be work practices under section 112(h). 
This is because the statute specifically differentiates between 
emission standards requiring pollution prevention measures (``measures 
which reduce the volume of, or eliminate emissions of, such [HAP] 
through * * * substitution of materials'') and those requiring work 
practices, with only the latter requiring separate justification under 
section 112(h). Compare section 112(d)(2)(A) and (D).\4\ This is a 
reasonable construction, since there is reason to favor standards 
requiring use of pollution prevention measures, which eliminate HAP 
emissions altogether, over standards reflecting merely the capture of 
some portion of an emitted HAP. There is thus no reason to disfavor 
pollution prevention-based standards by allowing their use only if the 
section 112(h) criteria are also satisfied.
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    \4\ Such a standard is an ``emission standard'' since it 
``limits the quantity * * * of emissions of air pollutants on a 
continuous basis''. See section 302(k)(definition of ``emission 
standard'').
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    However, even assuming, for the sake of argument, that the proposed 
pollution prevention standards for mercury are considered to be work 
practices, it is not feasible to prescribe or enforce an emissions 
limit for mercury, within the meaning of section 112(h). We believe 
that continuous emission monitoring systems (CEMS) for mercury 
concentration and volumetric flow rate would be needed for EAF, because 
EAF steelmaking is a batch process, and mercury emissions vary 
enormously from batch to batch as different scrap sources are 
processed. Indeed, emissions have been shown to vary by two orders of 
magnitude at a single plant.\5\ Cf. Mossville Environmental Action Now 
v. EPA, 370 F. 3d 1232, 1240 (D.C. Cir. 2004) (noting that EPA 
reasonably declined to establish MACT floor levels based on single 
emission level measurements from batch process operations because of 
constant change in those levels).
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    \5\ See ``Analysis of Mercury Emissions Test Data'' in Docket ID 
No. EPA-HQ-OAR-2004-0083.
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    We therefore examined the technological and economic feasibility of 
continuous monitoring for mercury from these sources. We note first 
that mercury CEMS are not demonstrated for EAF, raising a threshold 
question of their technical feasibility for all EAF. Furthermore, most 
EAF discharge emissions from positive pressure baghouses without 
stacks. Continuous mercury monitoring would not be technically feasible 
for these EAF (i.e., stackless EAF), even assuming that mercury CEMS 
were otherwise demonstrated for EAF. This is because volumetric flow 
rate and concentration would need to be determined by CEMS to measure 
the mass emission rate of mercury, and without a stack, it is nearly 
impossible to obtain an accurate measurement of volumetric flow rate or 
to obtain representative measurements of mercury concentration in the 
discharged emissions. Indeed, EPA has previously determined that the 
use of continuous opacity monitoring systems (COMS) was not feasible 
for positive pressure baghouses without stacks for this 
reason.6, 7
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    \6\ For example, EPA estimated that 70 of 130 electric arc 
furnaces (EAF) subject to the new source performance standard (NSPS) 
were not required to install continuous opacity monitors because of 
the configuration of their baghouse. (See the EPA fact sheet for the 
NSPS amendments available at http://www.epa.gov/ttn/oarpg/t1/fact_sheets/eaf_npsfs.pdf
).

    \7\ Retrofitting such sources with stacks would be extremely 
costly for most electric arc furnaces (EAFs) to the point that it 
would not be economically practicable to do so. See ``Estimated 
Impacts of Proposed Area Source Standard for EAF'' in EPA Docket ID 
No. EPA-HQ-OAR-2004-0083. EPA believes that one takes a source as 
one finds it for purposes of applying section 112(h), and therefore 
that it is simply not technologically practicable to apply 
continuous mercury monitoring technology to a stackless EAF.
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    Some EAF do have stacks, and the limited amount of mercury 
emissions data from EAF which EPA has comes from such sources. These 
limited test data were collected using manual test methods and are 
therefore not reliable for determining an EAF's actual performance 
because these short-term test results are not representative of the 
long-term operation of a cyclic batch process. The results of the 
different manual tests (typically 1-hour runs) show a variability of 
over two orders of magnitude within a single source (as well as across 
sources) and reinforce the conclusion that continuous monitoring would 
be needed to prescribe and enforce a numerical emissions limit for 
mercury.\8\ As noted, CEMS are not demonstrated for these sources. For 
these reasons, we do not believe it technologically practicable to 
apply continuous measurement methodology to even EAFs with stacks.
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    \8\ See ``Analysis of Mercury Emissions Test Data'' in EPA 
Docket ID No. EPA-HQ-OAR-2004-0083.
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    We also examined the possibility of setting a direct limit on the 
amount of mercury entering the EAF and thus limiting emissions.\9\ 
However, the scrap charged to EAF includes many shapes and sizes, 
bundles, discrete pieces, and various sizes of shredded metal. 
Accordingly, there is no way to obtain representative samples for 
analysis of mercury content to develop or enforce a mercury limit for 
the scrap. The number of mercury switches in the scrap (the predominant 
source of mercury in the scrap, and hence to an EAF) also cannot be 
determined for the same reasons. In addition, the switches would not be 
recognizable after scrap dealers have crushed and shredded incoming 
scrap. Consequently, we propose that it is not feasible or practicable 
to establish a limit for mercury in the scrap.
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    \9\ However, as explained in section IV.D.1 of this preamble, 
the standard we are proposing effectively establishes such a limit.
---------------------------------------------------------------------------

    The pollution prevention approach which is the basis for the 
proposed MACT standard for mercury is discussed below in section IV.D.1 
of this preamble.

III. Addition and Revision to Source Category Lists

    Section 112(c)(6) of the CAA requires us to list categories and 
subcategories of sources accounting for not less than 90 percent of the 
aggregate emissions of each of seven specific HAP. Since the 
publication of the original 1998 CAA section 112(c)(6) source category 
list, we have collected additional data on mercury emissions in 1990 
and performed another review of information on the 1990 baseline 
emissions inventory that served as the basis for the listing. In re-
evaluating the baseline inventory, we have determined that EAF 
steelmaking facilities emit mercury and contributed to the 90 percent 
of the aggregate emissions of mercury in 1990, and we have updated our 
estimates of the 1990 baseline year to reflect this contribution of 
mercury from EAF.\10\ Consequently, we are adding EAF steelmaking 
facilities to the list of source categories under CAA section 112(c)(6) 
on the basis of mercury emissions.
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    \10\ Additional information on the ``1990 Emissions Inventory of 
Section 112(c)(6) Pollutants'' is available at http://www.epa.gov/ttn/atw/112c6/112c6pg.html
.

---------------------------------------------------------------------------

    This notice also announces a revision to the area source category 
list developed under our Integrated Urban Air Toxics Strategy pursuant 
to CAA section 112(c)(3). The revision changes the name of the listed 
area source category, ``Stainless and Nonstainless Steel Manufacturing 
Electric Arc

[[Page 53818]]

Furnaces (EAF)'' to ``Electric Arc Furnace Steelmaking Facilities.'' We 
are making this revision to clarify that the source category includes 
all types of steel made in EAF, such as stainless steel, carbon steel, 
specialty steel, and other grades and alloys of steel. This is simply a 
change in the name of the source category and does not change the 
universe of sources that were the basis of the original listing notice.

IV. Proposed NESHAP for EAF Steelmaking Facilities

A. What area source category is affected by the proposed NESHAP?

    The EAF steelmaking area source category consists of facilities 
engaged in the production of steel using EAF to melt primarily ferrous 
scrap to produce molten steel. The molten steel is refined by ladle 
metallurgy processing and subsequently cast into basic steel shapes 
that are further processed in rolling mills.
    The U.S. steel industry produced about 106 million tons of raw 
steel in 2006, and approximately 93 ``minimills'' that melt ferrous 
scrap in EAF accounted for 57 percent of the total U.S. production. 
Critically, for purposes of the mercury standard proposed in this rule, 
the EAF at minimills produce steel by melting recycled ferrous scrap. 
The reason this is critical is that the mercury emitted by EAF comes 
almost exclusively from automotive scrap, and approximately 50 to 80 
percent of this mercury can be eliminated from the scrap feed by 
pollution prevention measures carried out upstream of the EAF.
    The production of steel in minimills has increased dramatically 
over the past 30 years. Minimills accounted for 10 percent of the 
national steel production in 1970, 30 to 40 percent in the 1980s, 40 to 
50 percent in the 1990s, and (as noted) 57 percent in 2006. The growth 
has been attributed in part to an expansion in the types and quality of 
steel products that minimills can produce, including heavy structurals, 
rail, plate, specialty bar, hot rolled, cold rolled, galvanized, and 
stainless flat rolled products.
    Most of the steel produced in EAF is carbon steel used in the 
manufacture of construction materials, automobiles, appliances, and 
other applications. Approximately 4 percent (about 2 million tons) is 
specialty and stainless steel, which are high value steel products. The 
types of steel are defined by their composition of alloying elements. 
Stainless and alloy steels contain less carbon and zinc and more 
chromium, manganese, and nickel than carbon steels. Some stainless 
steel grades contain 12 to 28 percent chromium and 4 to 25 percent 
nickel.
    U.S. minimills are the largest recyclers of metal scrap in the 
world. Recycled iron and steel scrap nationwide in 2004 included 25 
percent ``home scrap'' (from current operations at the plant), 26 
percent ``prompt scrap'' (from plants manufacturing steel products), 
and 49 percent post-consumer scrap. The primary source of post-consumer 
scrap is the automobile, and in 2004, the steel industry recycled 14.2 
million tons of iron and steel scrap from 14 million vehicles.

B. What are the production processes and emissions sources?

    Most EAF are equipped with three carbon electrodes that are raised 
or lowered through the furnace roof. When the electrodes are retracted, 
the furnace roof can be rotated to allow the charge of scrap steel by 
an overhead crane. Electric current that is passed between the 
electrodes and through the scrap generates heat to melt the scrap. The 
stages of each production cycle include charging (loading scrap and 
other raw materials into the furnace), melting, removing slag (a layer 
of impurities that forms on top of the molten steel), and tapping 
(pouring molten steel into a ladle). Operating cycles in this batch 
process range from 35 to more than 200 minutes; the longer cycle times 
are generally used when producing stainless and specialty steels. After 
tapping, the steel is transferred to the ladle metallurgy facility 
where it undergoes additional refining in a ladle to produce the 
desired final properties. After the composition and temperature are 
adjusted in the ladle metallurgy facility, the molten steel is 
transferred to the continuous caster, which forms the steel into semi-
finished shapes. The steel shapes are then processed in rolling mills 
to produce the final steel product.
    Emissions from the EAF occur during charging, melting, and tapping. 
Emissions may also occur when the molten steel is processed at the 
ladle metallurgy facility. The type and volume of emissions of HAP 
metals are affected by the quantity and type of HAP metals in the 
ferrous scrap being melted and the addition of certain alloys (e.g., 
chromium, manganese, and nickel). Some HAP metals, such as manganese, 
are an inherent and necessary component of ferrous scrap and the final 
steel product. Other HAP metals, such as mercury, arsenic, and cadmium, 
are undesirable elements introduced with the ferrous scrap. Other HAP 
metals, such as chromium and nickel, are introduced as alloying 
elements and are necessary to produce stainless and specialty steels.
    Capture systems for emissions from EAF typically include direct-
shell evacuation control (DEC) systems; canopy hoods, side draft hoods, 
and tapping hoods; partial or total enclosures; scavenger duct systems; 
and building evacuation systems. The most common types of capture 
systems for ladle metallurgy are canopy hoods, side draft hoods, and 
close fitting hoods. Nearly all plants duct process and fugitive 
emissions to a baghouse. These capture systems and PM control devices 
are highly efficient for the capture and control of PM and HAP metals 
that are in particulate form, including the Urban HAP arsenic, cadmium, 
chromium, lead, manganese, and nickel. However, mercury emitted from 
the EAF is in vapor form and is not controlled by the PM control 
devices.
    A detailed survey of 27 plants showed that EAF steelmaking 
facilities use scrap specifications, scrap management plans, and 
inspections to ensure that charge materials do not adversely affect the 
quality of steel or create dangerous operating conditions. Common 
requirements include testing for radiation; rejecting scrap containing 
sealed containers, hazardous materials, or explosives; and prohibiting 
materials such as lead, copper, oil, grease, batteries, and 
refrigerants. Most plants also require some type of visual inspection 
of incoming scrap. These scrap management procedures also serve to 
reduce HAP emissions by preventing HAP materials and precursors from 
entering the EAF and subsequently being emitted.

C. Summary of the Proposed Requirements

    This section presents a summary of the requirements of the proposed 
rule. Additional details and the rationale for the proposed 
requirements are provided in the following section IV.D of this 
preamble.
1. Applicability and Compliance Dates
    The proposed NESHAP applies to each new or existing EAF steelmaking 
facility that is an area source of HAP. We are proposing that the owner 
or operator of an existing area source that does not have to install or 
modify emissions control equipment to meet the opacity limit for 
fugitive emissions comply with all applicable rule requirements no 
later than six months after the date of publication of the final rule 
in the Federal Register. We are proposing that the owner or operator of 
an existing area source that must install

[[Page 53819]]

or modify emission control equipment to meet the opacity limit for 
fugitive emissions may request a compliance date for the opacity limit 
that is no later than two years after the date of publication of the 
final rule in the Federal Register based on a demonstration to the 
satisfaction of the permitting authority that the additional time is 
needed. The owner or operator of a new affected source would be 
required to comply with all applicable rule requirements by the date of 
publication of the final rule in the Federal Register (if the startup 
date is on or before promulgation) or upon startup (if the startup date 
is after promulgation).
2. Proposed MACT Standards for the Control of Mercury
    The proposed standards for mercury are based on pollution 
prevention and require an EAF owner or operator who melts scrap from 
motor vehicles either to purchase (or otherwise obtain) the motor 
vehicle scrap only from scrap providers participating in an EPA-
approved program for the removal of mercury switches or to fulfill the 
alternative requirements described below. EAF facilities participating 
in an approved program must maintain records identifying each scrap 
provider and documenting the scrap provider's participation in the EPA-
approved mercury switch removal program. A proposed compliance option 
is for the EAF facility to prepare and operate pursuant to an EPA-
approved site-specific plan that includes specifications to the scrap 
provider that mercury switches must be removed from motor vehicle 
bodies at an efficiency comparable to that of the EPA-approved mercury 
switch removal program (see below). An equivalent compliance option is 
provided for facilities that do not utilize motor vehicle scrap that 
contains mercury switches.
    We expect most facilities that use motor vehicle scrap will choose 
to comply by purchasing motor vehicle scrap only from scrap providers 
who participate in a program for removal of mercury switches that has 
been approved by the Administrator. The National Vehicle Mercury Switch 
Recovery Program (NVMSRP) \11\ would be an approved program under this 
proposed standard. Facilities choosing to use the NVMSRP as a 
compliance option would have to assume all of the responsibilities for 
steelmakers as described in the Memorandum of Understanding. The NVMSRP 
is described in detail in section IV.D.1 of this preamble.
---------------------------------------------------------------------------

    \11\ Additional details can be found at http://www.epa.gov/mercury/switch.htm
 and in section IV.D.1 of this preamble. In 

particular, see the signed Memorandum of Understanding.
---------------------------------------------------------------------------

    EAF facilities could also obtain scrap from scrap providers 
participating in other programs. To do so, the facility owner or 
operator would have to submit a request to the Administrator for 
approval to comply by purchasing scrap from scrap providers that are 
participating in another switch removal program and demonstrate to the 
Administrator's satisfaction that the program meets the following 
specified criteria: (1) There is an outreach program that informs 
automobile dismantlers of the need for removal of mercury switches and 
provides training and guidance on switch removal, (2) the program has a 
goal for the removal of at least 80 percent of the mercury switches, 
and (3) the program sponsor must submit annual progress reports on the 
number of switches removed and the estimated number of motor vehicle 
bodies processed (from which a percentage of switches removed is easily 
derivable).
    EAF facilities that purchase motor vehicle scrap from scrap 
providers that do not participate in an EPA-approved mercury switch 
removal program would have to prepare and operate pursuant to and in 
conformance with a site-specific plan for the removal of mercury 
switches. The facility's scrap specifications would have to include a 
requirement for the removal of mercury switches, and the plan must 
include provisions for obtaining assurance from scrap providers that 
mercury switches have been removed. The plan would be submitted to the 
Administrator for approval and would demonstrate how the facility will 
comply with specific requirements that include: (1) A means of 
communicating to scrap purchasers and scrap providers the need to 
obtain or provide motor vehicle scrap from which mercury switches have 
been removed and the need to ensure the proper disposal of the mercury 
switches, (2) provisions for obtaining assurance from scrap providers 
that motor vehicle scrap provided to the facility meets the scrap 
specifications, (3) provisions for periodic inspection, site visits, or 
other means of corroboration to ensure that scrap providers and 
dismantlers are implementing appropriate steps to minimize the presence 
of mercury switches in motor vehicle scrap, (4) provisions for taking 
corrective actions if needed, and (5) requiring each motor vehicle 
scrap provider to provide an estimate of the number of mercury switches 
removed from motor vehicle scrap sent to the facility during the 
previous year and the basis for the estimate. The Administrator would 
be able to request documentation or additional information from the 
owner or operator at any time. The site-specific plan must establish a 
goal for the removal of at least 80 percent of the mercury switches. 
All documented and verifiable mercury-containing components removed 
from motor vehicle scrap would count towards the 80 percent goal.
    An equivalent compliance option would be provided for EAF 
steelmakers who do not utilize motor vehicle scrap that contains 
mercury. The option would require the facility to certify that the only 
materials they are charging from motor vehicle scrap are materials 
recovered for their specialty alloy, such as chromium in certain 
exhaust systems. Such materials are known not to contain mercury, and 
because the specialty steels must meet stringent product quality and 
performance specifications, automobile scrap with contaminants such as 
mercury, lead, zinc, and copper is not accepted.\12\
---------------------------------------------------------------------------

    \12\ Letter from Joseph Green, Counsel to the Specialty Steel 
Industry of North America, to Steve Fruh, Environmental Protection 
Agency. Information Regarding Specialty Steel Industry Segment. July 
30, 2004.
---------------------------------------------------------------------------

3. Proposed GACT Standards for EAF and Ladle Metallurgy Operations
    We propose that the owner or operator would be required to install, 
operate, and maintain capture systems for EAF and ladle metallurgy 
operations that convey the collected gases and fumes to a venturi 
scrubber or baghouse for the removal of PM. We are proposing separate 
emissions limits for new and existing EAF steelmaking facilities that 
produce less than 150,000 tpy of stainless or specialty steel, and for 
larger, non-specialty EAF steelmaking facilities. The small facilities 
would be required to comply with a PM emissions limit of 0.8 pounds of 
PM per ton (lb/ton) of steel for each control device serving an EAF or 
ladle metallurgy operation and an opacity limit of 6 percent for melt 
shop emissions. All other EAF steelmaking facilities (both existing and 
new) would be required to meet a PM limit of 0.0052 grains per dry 
standard cubic foot (gr/dscf) for emissions from a control device for 
an EAF or ladle metallurgy operation. The opacity of emissions from 
melt shops from these sources would be limited to 6 percent.
    Performance tests would be required for each emissions source to 
demonstrate initial compliance with the

[[Page 53820]]

PM and opacity limits. Provisions are included in the proposed rule for 
conducting the tests. The owner or operator of an existing EAF 
steelmaking facility would be allowed to certify initial compliance 
with the emissions limits if a previous test was conducted during the 
past 5 years using the methods and procedures in the rule and either no 
process changes have been made since the test, or the owner or operator 
can demonstrate that the test results, with or without adjustments, 
reliably demonstrate compliance despite process changes.
    All EAF steelmaking facilities would be required to obtain a title 
V permit. The proposed rule would require each EAF steelmaking facility 
to monitor the capture system, PM control device, and melt shop; 
maintain records; and submit reports according to the compliance 
assurance monitoring (CAM) requirements in 40 CFR part 64. The existing 
part 64 rule requires the owner or operator to establish appropriate 
ranges for selected indicators for each emissions unit (i.e., operating 
limits) such that operation within the ranges will provide a reasonable 
assurance of compliance with the emissions limitations or standards.
    The CAM rule requires the owner or operator to submit certain 
monitoring information to the permitting authority for approval. This 
information includes: (1) The indicators to be monitored; (2) the 
ranges or designated conditions for such indicators, or the process by 
which such indicator ranges or designated conditions will be 
established; (3) performance criteria for the monitoring; and if 
applicable, (4) the indicator ranges and performance criteria for a 
CEMS, COMS, or predictive emissions monitoring system. The owner or 
operator also must submit a justification for the proposed elements of 
the monitoring control device (and process and capture system, if 
applicable) and operating parameter data obtained during the conduct of 
the applicable compliance or performance test.
    If monitoring indicates that the unit is operating outside of the 
acceptable range established in its permit, the owner or operator must 
return the operation to within the established range consistent with 40 
CFR 64.7(d).
4. Proposed GACT Standards for Scrap Management
    In addition to meeting PM and opacity limits reflecting GACT, we 
are also proposing that EAF facilities be required to restrict the use 
of certain scrap or follow a pollution prevention plan for scrap 
inspection and selection that minimizes the amount of specific 
contaminants in the scrap.
    The proposed requirements are based on two pollution prevention 
approaches depending on the type of scrap that is used, and a facility 
may have some scrap subject to one approach and other scrap subject to 
the other approach. One provision is for scrap that does not contain 
certain contaminants and would simply prohibit the processing of scrap 
containing these contaminants (restricted scrap). Compliance would be 
demonstrated by a certification that the owner or operator will not 
process scrap with the contaminants. This scrap management approach is 
expected to be most useful to stainless and specialty steel producers 
with stringent scrap specifications that do not permit the use of motor 
vehicle scrap and scrap containing free organic liquids. The other 
approach for scrap that may contain certain contaminants is more 
prescriptive and requires a pollution prevention plan, scrap 
specifications, and procedures for determining that these requirements 
are met. This pollution prevention approach was developed primarily for 
carbon steel producers that accept motor vehicle scrap and many other 
types of ferrous scrap.
    Under the restricted scrap provision, the plant owner or operator 
would agree to restrict the use of certain scrap, including metallic 
scrap from motor vehicle bodies, engine blocks, oil filters, oily 
turnings, machine shop borings, transformers and capacitors containing 
polychlorinated biphenyls (PCBs), lead-containing components, 
chlorinated plastics, or free organic liquids. The restriction on lead-
containing components would not apply to the production of leaded steel 
(where lead is obviously needed for production).
    The other proposed scrap management provision would require the 
plant owner or operator to prepare a pollution prevention plan for 
metallic scrap selection and inspection to minimize the amount of 
chlorinated plastics, lead (except for the production of leaded steel), 
and free organic liquids. This plan would be submitted to the 
Administrator for approval. The owner or operator would be required to 
keep a copy of the plan onsite and train plant personnel with materials 
acquisition or inspection duties in the plan's requirements.
    The plan would include specifications for scrap materials to be 
depleted (to the extent practicable) of lead-containing components 
(except for the production of leaded steel), undrained used oil 
filters, chlorinated plastics, and free organic liquids. The plan would 
also contain procedures for determining if these requirements are met 
(e.g., visual inspection or periodic audits of scrap suppliers) and 
procedures for taking corrective actions with vendors whose shipments 
are not within specifications.
5. Proposed Requirements for Recordkeeping and Reporting
    Area sources subject to the proposed requirements for EAF and ladle 
metallurgy operations would be subject to the recordkeeping and 
reporting requirements of the part 64 CAM rule. The general 
recordkeeping requirements of the part 64 rule directs the owner or 
operator to comply with the recordkeeping requirements for title V 
operating permits in 40 CFR 70.6(a)(3)(ii), which require records of 
analyses, measurements, and sampling data. The part 64 rule also 
requires the owner or operator to maintain records of monitoring data, 
monitor performance data, corrective actions taken, any written quality 
improvement plan (QIP), any activities undertaken to implement a QIP, 
and other supporting information required by the part 64 rule (such as 
data used to document the adequacy of monitoring, or records of 
monitoring maintenance or corrective actions).
    The general reporting requirements of part 64 require the owner or 
operator to submit monitoring reports to the permitting authority in 
accordance with the requirements for facilities with title V operating 
permits. The title V reporting requirements in 40 CFR 70.6(c)(1) and 40 
CFR 71.6(c)(1) include a 6-month monitoring report, deviation reports, 
and annual compliance certifications. The reporting requirements under 
part 64 requires that the 6-month monitoring report include: (1) 
Summary information on the number, duration and cause (including 
unknown cause, if applicable) of excursions or exceedances, as 
applicable, and the corrective actions taken; (2) summary information 
on the number, duration and cause (including unknown cause, if 
applicable) for monitor downtime incidents (other than downtime 
associated with zero and span or other daily calibration checks, if 
applicable); and (3) a description of the actions taken to implement a 
QIP during the reporting period. Upon completion of a QIP, the owner or 
operator must include in the next summary report documentation that the 
implementation of the plan has been completed and reduced the 
likelihood of similar levels of excursions or exceedances occurring.
    All EAF steelmaking facilities subject to this proposed NESHAP 
would also be subject to certain specified requirements

[[Page 53821]]

of the NESHAP general provisions (40 CFR part 63, subpart A). The 
general provisions include requirements for initial notifications; 
startup, shutdown, and malfunction records and reports; recordkeeping; 
and semiannual excess emissions and monitoring system performance 
reports. The information required in these records and reports is 
similar to the information required by the CAM rule (40 CFR part 64) 
and the operating permits rules (40 CFR parts 70 and 71).
    The proposed NESHAP also includes specific recordkeeping and 
reporting requirements for area source facilities subject to 
requirements for control of contaminants from scrap. The area source 
facilities would be required to keep records to demonstrate compliance 
with the requirements for their pollution prevention plan for 
minimizing the amount of chlorinated plastics, lead, and free organic 
liquids charged to a furnace or for the use of only restricted scrap 
and the site-specific plan for mercury or any of the mercury compliance 
options.
    As noted above, facilities subject to the site-specific plan for 
mercury would be required to keep records and submit semiannual reports 
on the number of mercury switches removed by the scrap provider or the 
weight of mercury recovered from those switches, an estimate of the 
percent of mercury switches recovered, and certification that the 
recovered mercury switches were managed at RCRA-permitted facilities. 
In contrast, facilities participating in an EPA-approved program for 
switch removal must keep records that identify their scrap providers 
and document that they participate in an approved switch removal 
program. As discussed in more detail in section IV.D.1 of this 
preamble, we are proposing to require more extensive records for a 
site-specific plan than for an approved program because extensive 
recordkeeping, reporting, and measurement of success are already 
required for approval of such a removal program, the NVMSRP being the 
prime example.
    All facilities subject to the requirements for the control of 
contaminants from scrap would be required to submit semiannual reports 
according to the requirements in Sec.  63.10(e) of the general 
provisions. The report would identify any deviation from the rule 
requirements and the corrective action taken.

D. What is our rationale for the proposed MACT and GACT standards?

1. Proposed MACT Standard for Mercury
    Background. Mercury enters the EAF steelmaking process almost 
exclusively with the ferrous scrap that is charged to the furnace. A 
few other materials are charged to the EAF in small quantities (e.g., 
coke, coal, lime); however, they contribute little mercury because they 
are used in very small quantities relative to the scrap charge and 
contain virtually no mercury in any case. The major source of mercury 
in ferrous scrap is convenience light switches in end-of-life vehicles 
that contain 0.8 grams (g) to 1.2 g of mercury per switch. These 
switches (called mercury switches or tilt switches) control lights 
under the hoods and in the trunks of older model vehicles. The Ecology 
Center estimated that the vehicles retired in 2003 contained 8.5 
million switches and 9.3 tons of mercury. Pilot studies in New Jersey 
and Michigan reported 0.54 to 0.8 mercury switches per vehicle 
processed. For 14 million vehicles recycled in 2004, the number of 
switches thus would be in the range of 7.6 to 11 million. Although 
mercury switches were phased out of automobiles in 2002, there is a 10 
to 15 year supply of existing vehicles destined for recycling that 
still contain the switches. There are other components in automobile 
scrap which contain small amounts of mercury, such as anti-lock braking 
sensors, security systems, and active ride control systems. However, 
most of the mercury is contributed by convenience light switches, which 
are estimated to be the source of 87 percent of the mercury in motor 
vehicle scrap by the Ecology Center.\13\
---------------------------------------------------------------------------

    \13\ The Ecology Center report and other information cited for 
mercury switches is available in EPA Docket ID No. EPA-HQ-OAR-2004-
0083.
---------------------------------------------------------------------------

    We have very limited data on the mercury species emitted from EAFs; 
however, the limited data indicate that over 99 percent of the mercury 
emissions are in the gaseous form, and about 93 percent of the gaseous 
mercury is elemental mercury. Although baghouses are highly efficient 
at removing HAP metals that are in the particulate phase, the baghouses 
do not control gaseous or vapor phase mercury and thus (for practical 
purposes) do not control mercury emissions from EAFs. No EAFs use add-
on controls for gaseous mercury emissions.
    The limited test data show extreme variability (orders of 
magnitude) in mercury emissions from plant to plant and from the same 
plant over time as different batches of scrap are melted. The limited 
sampling results of input materials likewise indicate that the mercury 
content of scrap typically varies widely.\14\
---------------------------------------------------------------------------

    \14\ See ``Analysis of Mercury Emissions Test Data'' in Docket 
ID No. EPA-HQ-OAR-2004-0083.
---------------------------------------------------------------------------

    We also examined scrap specifications that may be in use to reduce 
mercury emissions. Three companies reported in their survey responses 
that their scrap specifications prohibited mercury-containing 
components. However, there was no measure of effectiveness of the 
written specification.
    Over the past few years, there has been an increasing awareness 
that a highly effective way of reducing mercury releases to the 
environment from scrap using entities like EAFs is to remove mercury 
switches from end-of-life vehicles prior to crushing, shredding, and 
melting. Numerous interested parties have been involved at the local, 
State, and national level in the development and implementation of 
switch removal programs, including local and State environmental 
agencies, national and local environmental groups, steel recyclers, 
steel producers, automobile makers, various EPA offices, and others. 
Many successful State and local switch removal programs are already in 
place, and more are expected in the future.
    Several State programs for mercury switch removal have been 
implemented, and there are many different variations. Some programs are 
mandated by law, and others are voluntary. Some offer financial 
incentives provided by different stakeholders, some specify financial 
incentives to be provided by automobile makers, and some have no 
financial incentives. Some have a strict accounting of switches removed 
and requirements for proper collection, management, and disposal of the 
switches.
    There have been direct measurements of the mercury emission 
reductions that can be achieved at minimills by switch removal 
programs. For example, a pilot program administered by the New Jersey 
Department of Environmental Protection reported a reduction of 50 
percent in mercury emissions when the EAF melted scrap that had been 
processed in a switch removal program.\15\ We also identified one 
minimill in Minnesota that had implemented a mercury switch removal 
program that included removal prior to processing in their on-site 
shredder and a system for paying other

[[Page 53822]]

scrap suppliers to remove switches. This program has resulted in a 
quantifiable reduction in environmental releases of mercury. These two 
studies confirm that a national mercury switch removal program for end-
of-life vehicles will reduce mercury emissions.
---------------------------------------------------------------------------

    \15\ ``Mercury Switch Data Collection Pilot Project.'' Prepared 
by K.L. Woodruff. New Jersey Department of Environmental Protection. 
March 24, 2004.
---------------------------------------------------------------------------

    Switch removal programs reduce mercury releases to all media. 
Switch removal reduces mercury releases to air, water, and land when 
automobiles are crushed and shredded prior to delivery to the 
minimills. Mercury contamination of auto shred residue (plastics, 
fabrics, and other unwanted materials in the automobile) is reduced 
making safer the further management of the material. The switches 
themselves are isolated and managed in RCRA subtitle C hazardous waste 
management facilities where they are subject to stringent regulatory 
control. As a result of the mercury switch removal programs, mercury 
emissions are reduced at all facilities which use the scrap as raw 
material, including not only EAFs but integrated iron and steel plants 
and iron and steel foundries. Finally, mercury emissions are reduced 
from scrap that is exported and melted in furnaces in other countries.
    The National Vehicle Mercury Switch Recovery Program (NVMSRP).\16\ 
A significant step forward in reducing mercury emissions was made on 
August 11, 2006 when a Memorandum of Understanding (MOU) was signed by 
representatives of the steel industry, automobile makers, scrap 
recyclers, environmental groups, State and local agencies, and EPA.\17\ 
The MOU established the NVMSRP, and this program has been implemented 
and is already removing and recovering mercury switches from end-of-
life vehicles before the metallic scrap is recycled at EAFs (and other 
steel-producing entities).
---------------------------------------------------------------------------

    \16\ This section describes the national switch recovery program 
in detail. As discussed in the following sections of this preamble, 
the proposed rule does not codify these details as part of the 
proposed standard for mercury emissions. The proposed rule requires 
the owner or operator to: (1) Certify they are participants in the 
national program and that scrap is purchased only from scrap 
providers participating in such a national program, (2) maintain 
records documenting such participation, and (3) submit semiannual 
reports if there are any deviations from the requirements. However, 
the proposed rule also allows an owner or operator to comply with 
the proposed rule if they can demonstrate that they are 
participating in a program that is equivalent to the national 
program and is of demonstrably equal effectiveness.
    \17\ Additional details and the signed Memorandum of 
Understanding can be found at http://www.epa.gov/mercury/switch.htm.

---------------------------------------------------------------------------

    The NVMSRP is the result of a two-year collaborative effort 
involving EPA, the End of Life Vehicle Solutions Corporation 
(ELVS),\18\ the American Iron and Steel Institute, the Steel 
Manufacturers Association, the Institute of Scrap Recycling Industries, 
the Automotive Recyclers Association, Environmental Defense, the 
Ecology Center (Ann Arbor), and representatives of the Environmental 
Council of the States. The goal of the NVMSRP is to significantly 
reduce air emissions of mercury from steelmaking facilities that 
utilize auto shred by substantially reducing the number of mercury-
containing switches in scrap automobiles before they are crushed and 
shredded for recycling. This is being accomplished through education 
and outreach for those removing switches; removal, collection and 
management of switches; transport of the switches to a qualified 
retorter that has the permits that allow for managing the switches 
under RCRA subtitle C; recordkeeping and accountability of mercury 
recovery; scrap selection and corroboration; and review and improvement 
of the NVMSRP. The vehicle manufacturers and steelmakers have created a 
three-year, $4 million dollar implementation fund in support of the 
program. The fund will support the implementation of the NMSRP through 
incentive payments to those entities recovering (i.e. pulling) the 
switches. Performance will be assessed on a regular basis by all of the 
participating parties.
---------------------------------------------------------------------------

    \18\ ELVS is a non-profit corporation established by several 
motor vehicle manufacturers who are listed at http://www.elvsolutions.org/about.htm
.

---------------------------------------------------------------------------

    Finally, the MOU contains a provision providing that the agreement 
may terminate with the consent of the parties based on the phase out of 
automobiles containing mercury switches. A potential termination date 
mentioned in the MOU is December 31, 2017, a date when it is projected 
that 90 percent of vehicles containing mercury switches will be 
retired.\19\ EPA believes that any issues raised by this potential 
``sunset'' provision are best addressed when EPA reexamines the MACT 
standard pursuant to section 112(d)(6) (which must occur no later than 
2015). At that time, there will be robust information available as to 
switch removal rates and rate of fleet retirement.
---------------------------------------------------------------------------

    \19\ The MOU states ``The NVMSRP will be implemented until 
December 31, 2017 based on estimates that 90% of the vehicles 
containing mercury switches would be retired by that time. If, 
before that date, based on Program data and other information, the 
Parties or their designees determine that the number of remaining 
Mercury Switches no longer constitutes a significant source of 
mercury, they may determine that the program should end. In such a 
case, the Parties may terminate this MOU through written notice to 
all signatories and Participants. If the Parties or their designees 
determine that the number of mercury switches is still significant 
after that date, they may extend the Program. If the Program is 
extended, the Parties and U.S. EPA may continue this MOU through 
written mutual consent of all parties and U.S. EPA.''
---------------------------------------------------------------------------

    The NVMSRP was designed to harmonize with existing State programs 
and to be implemented State-by-State by the participants, in 
consultation with appropriate State agencies, in the remaining States 
to form a coordinated national program. The NVMSRP has shown success in 
just a few months following the MOU. As of July 9, 2007, programs were 
operational in 45 States, and 5,633 participants have collected more 
than 575,841 mercury switches with 1,267 pounds of mercury. Programs 
are expected to be implemented in all of the remaining States in 2007.
    Proposed MACT floor determination. More than 12 percent of the EAF 
steelmaking facilities are participants in this national program and 
have been participants in previous State and local programs. We believe 
that these operations pursuant to the national program represent the 
best performers and best performance for mercury--the chief source of 
mercury in emissions is being removed from feedstock--so that the MACT 
floor for new and existing EAF steelmaking facilities is for the owner 
or operator to operate pursuant to such a program; i.e., to obtain 
scrap only from scrap providers that are first removing mercury 
switches pursuant to the national program or an equivalent program of 
demonstrably equal effectiveness.\20\ We are also proposing that a 
switch removal program is the MACT floor for new sources because the 
best-controlled similar source is among those that prevent mercury 
switches from entering with the scrap.
---------------------------------------------------------------------------

    \20\ We estimate that the mercury switch removal program will 
reduce mercury emissions to below 90 mg Hg/ton of steel produced 
(based on two State pilot program studies showing approximately 50 
percent reduction from switch removal and average baseline mercury 
emissions of 180 mg Hg/ton), which results in an estimated reduction 
of 5 tpy of mercury. For perspective, 90 mg/ton of steel corresponds 
to a trace mercury level of 0.1 ppm in the steel scrap or the 
equivalent of about one mercury switch (one gram or 1,000 mg of 
mercury) per 10 tons of steel scrap (about one switch per ten end-
of-life vehicles at one ton of steel per vehicle). In contrast, we 
estimate that the MACT floor based on our limited mercury emissions 
test data, which comes from a time when switch removal agreements 
were not in place, would be 650 mg Hg/ton of steel. Additional 
details are provided in ``Analysis of Mercury Emissions Test Data'' 
in Docket ID No. EPA-HQ-OAR-2004-0083.
---------------------------------------------------------------------------

    We examined the features of the NVMSRP and other switch removal 
programs to identify those features that would be the necessary 
components of a national emission standard to ensure that the program 
would be effective at reducing mercury emissions. These features 
include assurance that each

[[Page 53823]]

facility is participating in a switch removal program that has been 
approved by the Administrator, a program goal for the percent of 
switches removed (80 percent), a system that accounts for the number of 
switches (or quantity of mercury) removed and the number of vehicle 
bodies processed, a mechanism to ensure the switches are properly 
disposed of or recycled, and an outreach program that informs 
dismantlers of the need for removal of mercury switches and provides 
training and guidance for removal. The national program has these 
features, and we are proposing that these features represent the MACT 
floor for mercury for new and existing sources because this is the 
mercury control approach that is being used by the best-performing 
sources.
    The national program also has a mechanism to measure performance 
because the number of switches and amount of mercury recovered is 
reported by State, and from an estimate of the number of vehicles 
processed, the progress toward the goal of 80 percent removal can be 
determined. The MOU also includes ongoing measures to track and measure 
progress. For example, the parties will assess development and 
implementation of State plans and identification and participation of 
program participants at three-month intervals for the first year 
following the effective date of the MOU. At six-month intervals 
thereafter, the parties will collectively review by State the status of 
implementation and participation in the program and make adjustments as 
necessary. The indicators to be reviewed will include the status of 
plans for 50-State implementation, number of States where the program 
has been initiated, the status of Web-based information on the NVMSRP, 
the status of identification of dismantlers and dismantler 
participation in all States (starting with those States targeted for 
initial implementation), and the status of the mercury recovery 
database and rate of information collection.
    The parties to the MOU expect that in the first three years of the 
program, capture rates will be ramping up due to the realities of 
program implementation and will not fully achieve the 80 to 90 percent 
switch recovery rate goal. It is expected that a minimum of four 
million mercury switches will be recovered during the first three years 
of the program in addition to the mercury being recovered by existing 
State programs. The parties agreed to make every effort to exceed this 
amount through aggressive implementation of the responsibilities 
detailed in this agreement.
    One year following the effective date of the MOU and each year 
thereafter, the parties or their designees and EPA agreed to meet to 
review the effectiveness of the program at the State level based upon 
recovery and capture rates. The parties to the agreement agreed to use 
the results to improve the performance of the program and to explore 
implementation of a range of options in that effort. Two and one-half 
years from the inception of the program, the parties agreed to meet and 
review overall program effectiveness and performance. This review will 
include discussion of the number of switches that have been collected 
and what factors have contributed to program effectiveness.
    A key element of measuring the success of the program is 
maintaining a database of participants that has detailed contact 
information, documentation showing when the participant joined the 
program (or started submitting mercury switches), records of all 
submissions by the participant including date, number of mercury 
switches, and confirmation that the participant has submitted mercury 
switches as expected. Another important element is aggregated 
information to be updated on a quarterly basis, including progress 
reports, summaries of the number of program participants by State, 
individual program participants, and State and national recovery 
totals. The program is also estimating the number of motor vehicles 
recycled. The NVMSRP will issue reports quarterly during the first year 
of the program, every six months in the second and third year of the 
program, and annually thereafter. The reports prepared by ELVS will 
include the total number of dismantlers or other potential participants 
identified; the total number of dismantlers or others contacted; and 
the total number of dismantlers or others participating. The annual 
report will include the total mercury (in pounds) and number of mercury 
switches recovered nationwide; the total pounds of mercury, number of 
mercury switches, and an estimated national capture rate, with 
information organized by State, compared with the expected range of 
mercury switch retirement rates for each State; and the total number 
and identity of dismantlers or others dropped due to inactivity or 
withdrawal from the program.
    Facilities choosing to use the NVMSRP to comply with this proposed 
standard would have to assume all of the responsibilities for 
steelmakers as described in the MOU and take steps consistent with the 
NVMSRP to minimize the presence of mercury in scrap from end-of-life 
vehicles. Participating steelmakers were to initiate the following 
steps when the NVMSRP went into effect:
     Issue a statement that the individual steel company is 
participating in the NVMSRP.
     Acting independently, develop a plan demonstrating the 
manner through which it is participating in the NVMSRP. The plan should 
include facility-specific implementation elements, corporate-wide 
policies, and/or efforts coordinated by a trade association as 
appropriate for each facility.
     Provide in the plan documentation of direction to 
appropriate staff to communicate to suppliers the need to promote the 
NVMSRP with suppliers throughout the scrap supply chain. The steel mill 
should be able to provide examples of materials that it uses for 
outreach to suppliers, such as letters, contract language, policies for 
purchasing agents, and scrap inspection protocols.
     Strongly encourage their suppliers and others in the scrap 
supply chain to support and participate in the NVMSRP.
     Take steps to minimize the presence of mercury in scrap, 
which includes notifying suppliers that the steelmaker, acting 
independently pursuant to the NVMSRP, intends to use in their 
operations, to the maximum extent possible, scrap from vehicles which 
do not contain mercury switches or from which mercury switches have 
been removed and to adapt their respective purchasing practices to that 
end.
     Use the ELVS database or other appropriate means to 
demonstrate that suppliers (spot suppliers and those under continuous 
contracts) are participating as anticipated in the NVMSRP and 
periodically re-affirm their commitment to provide only reduced-mercury 
automobile scrap. Steelmakers will conduct occasional spot checks, site 
visits or other means of corroboration to ensure that suppliers are 
aware of the need and are implementing appropriate steps to minimize 
the presence of mercury in automobile scrap.
     Cooperate with ELVS in the development of education, 
training materials, and outreach where appropriate.
     Work with the Institute of Scrap Recycling Industries to 
assure that any scrap work practice standards or other programs that 
may be implemented in accordance with the NVMSRP take into account 
market and technological factors and do not create unreasonable

[[Page 53824]]

or unworkable certification requirements for scrap processors.
    We propose that the Administrator can evaluate the success of the 
program at any time, identify States where improvements might be 
needed, recommend options for improving the program in a particular 
State, and if necessary, disapprove the program as implemented in a 
State from being used to demonstrate compliance with this proposed rule 
based on an assessment of this performance. The evaluation would be 
based on progress reports submitted to the Administrator that provide 
the number of mercury switches removed, the estimated number of 
vehicles processed, and percent of mercury switches recovered. The 
Administrator will assess the information with respect to the program's 
goal for percent switch recovery and trends in recovery rates.
    Although the national program would be an EPA-approved program for 
the purpose of complying with the proposed MACT standard, other State, 
local, or facility-specific programs could qualify as a compliance 
option on a case-by-case basis if they met the same criteria. 
Consequently, we also are proposing as the MACT floor participation in 
these other programs after satisfying criteria based on the national 
program, i.e., showing that these other programs would assure the same 
level of mercury control that the national program utilized by the best 
existing performers achieves, that would be used by the Administrator 
to determine if other switch removal programs could be used to 
demonstrate compliance.
    For example, we are proposing that a facility could prepare and 
operate pursuant to a site-specific plan for the removal of mercury 
switches and establish scrap specifications for the removal of mercury 
switches to achieve the MACT level of control (i.e., control as 
effective as the national plan). The plan would be submitted to the 
Administrator for approval and would demonstrate how the EAF 
steelmaking facility will comply with the following specific 
requirements: (1) A means of communicating to scrap purchasers and 
scrap providers the need to obtain or provide motor vehicle scrap from 
which mercury switches have been removed and the need to ensure the 
proper management of the removed mercury switches, (2) provisions for 
obtaining assurance from scrap providers that motor vehicle scrap 
provided to the EAF meets the scrap specifications, (3) provisions for 
periodic inspection, site visits, or other means of corroboration for 
the EAF to ensure that scrap providers and dismantlers are implementing 
appropriate steps to minimize the presence of mercury switches in motor 
vehicle scrap, (4) a goal for the removal of at least 80 percent of the 
mercury switches, (5) provisions for taking corrective actions if 
needed, and (6) requiring each motor vehicle scrap provider to provide 
an estimate of the number of mercury switches removed from motor 
vehicle scrap sent to the facility during the previous year and the 
basis for the estimate. The Administrator would be able to request 
documentation or additional information and change the approval status 
of the plan at any time based on a review of progress toward meeting 
the switch removal goal and other factors.
    We developed an equivalent compliance option (also based on 
pollution prevention) for steelmakers who do not purchase motor vehicle 
scrap that contains mercury switches. The compliance option would 
require the facility to certify that the only materials from motor 
vehicle scrap are materials recovered for their specialty alloy, such 
as chromium in certain exhaust systems, and that the type of scrap is 
not reasonably expected to contain mercury switches.
    Proposed beyond-the-floor determination. As a beyond-the-floor 
option, we considered the upstream removal of mercury-containing 
components other than mercury switches. There is no practical or 
reasonable way to remove trace amounts of mercury entering with raw 
materials (such as fluxing agents and alloys) other than scrap. 
Although there are other components in automobile scrap containing 
small amounts of mercury (see the earlier discussion above), pilot 
studies by various States have found that most of the mercury is 
contributed by the mercury switches, which take only a few minutes to 
locate and remove. (See the reports of switch removal studies in Maine, 
New Jersey, and Michigan in the rulemaking docket.) Other mercury-
containing components contribute less mercury, and they are more 
difficult to locate, identify, and remove. For example, the mercury 
switch study performed by the New Jersey Department of Environmental 
Protection found that convenience light switches could be located and 
removed in less than one minute. However, the time to remove and locate 
switches in anti-lock braking systems (ABS) required 7 to 8 minutes to 
locate, remove the rear seat, unbolt the unit, and remove it. In some 
cases, no ABS mercury switches were found. Some vehicles had to be 
raised on lifts, which required 10 to 15 minutes to locate and remove 
the ABS switch. In other cases, the ABS mercury bullet could not be 
removed separately because it was encased in a plastic resin material. 
Since the removal of these other mercury-containing components is 
costly and not practical in many cases, we have initially determined 
that the removal of these other mercury-containing components is not 
justified as a beyond-the-floor standard. However, we propose to 
encourage their removal by crediting all documented and verifiable 
mercury-containing components removed from motor vehicle scrap (such as 
sensors in ABS systems, security systems, active ride control, and 
other applications) when evaluating progress towards the 80 percent 
goal.
    We also examined the feasibility and cost of an add-on control 
device for mercury and continuous emissions monitoring as a beyond-the-
floor option for mercury for existing and new sources. Activated carbon 
injection has been used on other somewhat similar processes (i.e., 
similar with respect to temperature and volumetric flow rate); however, 
it has never been used at EAF facilities, and thus is not a 
demonstrated mercury control technology for EAF facilities. The 
nationwide cost of activated carbon injection and monitoring on EAFs is 
estimated as $100 million/yr. The mercury reductions are estimated as 
about 5 tpy after implementation of the national mercury switch 
recovery program. Assuming that activated carbon injection could be 
applied to EAFs and would reduce the remaining mercury emissions by 90 
percent (4.5 tpy), the cost effectiveness would be $22 million per ton 
of mercury. This cost does not include the further high cost of waste 
treatment and disposal noted in the next paragraph.
    We also considered other factors: (1) The EAF batch process has 
highly variable concentrations of mercury in the exhaust gases (which 
results in a great deal of uncertainty with respect to cost, design, 
and efficiency of an add-on control system), (2) carbon injection could 
result in landfilling large quantities of hazardous EAF dust (since the 
carbon injection residue is commingled with other baghouse dust) that 
is currently recycled to recover its zinc value (see American Petroleum 
Inst. v. EPA, 906 F. 2d 729, 734, 740-41 (D.C. Cir. 1990) and 53 FR 
11752-11753, August 17, 1988) because the mercury would either be re-
emitted at the zinc smelter (in which case there would effectively be 
no further reduction of mercury emissions) or the baghouse dust which 
is otherwise

[[Page 53825]]

recyclable would have to be treated and disposed in a RCRA subtitle C 
landfill (a non-air adverse environmental impact we are required to 
consider under section 112(d)(2)) at a significant cost, and (3) the 
operation of a carbon injection (or any type of mercury emissions 
control device) would result in increased energy consumption (another 
adverse impact we are required to consider under section 112(d)(2)).
    Based on the fact that activated carbon injection is not a 
demonstrated mercury control technology for EAF facilities, the 
uncertainty in design and performance of the add-on controls and hence 
of the actual mercury emission reductions for EAF facilities, the cost 
impacts per ton of emission reduction, and the adverse energy and solid 
waste impacts, we determined that control beyond the floor is not 
warranted for mercury. Therefore, we are proposing that the removal of 
mercury switches from the scrap before it is melted in the EAF 
represents MACT for mercury for new and existing EAF facilities.
2. Proposed GACT Standards for Metal HAP Other Than Mercury
    Background. EAF steelmaking facilities were listed under CAA 
section 112(c)(3) for emissions of the Urban HAP arsenic, cadmium, 
chromium, lead, manganese, mercury, and nickel (67 FR 43112). As just 
explained in section IV.D.2 of this preamble, we are proposing a MACT 
standard for mercury based on its listing under CAA section 112(c)(6). 
For metal HAP other than mercury, we decided that it is not practical 
to establish individual standards for each specific type of metallic 
HAP that could be present in the emissions (e.g., separate standards 
for manganese emissions, lead emissions, and so forth for each of the 
metals listed as HAP that may be present) because the types and 
quantities of metal HAP can vary widely in the scrap. When released, 
each of the metallic HAP compounds other than mercury behaves as PM. 
The control technologies used for the control of PM emissions achieve 
comparable levels of performance for these metallic HAP emissions, 
i.e., when PM is captured, HAP metals are captured non-preferentially 
as part of the PM. Therefore, emission standards requiring control of 
PM will also achieve comparable control of metallic HAP emissions. 
Establishing separate standards for each individual type of metallic 
HAP would impose costly and significantly more complex compliance and 
monitoring requirements and achieve no HAP emissions reductions beyond 
what would be achieved using the surrogate pollutant approach based on 
capture and control of PM.
    As provided in CAA section 112(d)(5), we are proposing standards 
representing GACT for the Urban HAP metals other than mercury. EPA 
believes that the statute allows the agency to elect to establish 
standards for area sources listed pursuant to section 112(c) based on 
GACT without further explanation. The statute simply does not set any 
condition precedent for issuing standards under section 112(d)(5) other 
than that the area source category or subcategory at issue must be one 
that EPA listed pursuant to section 112(c), which is the case here. See 
72 FR 38880 (July 16, 2007).
    We reviewed the control technologies and management practices used 
by the existing EAF steelmaking facilities, and we found that all of 
the plants are well controlled for PM emissions and are subject to 
emissions limits for PM. All plants have capture systems that collect 
emissions from charging, melting, tapping and ladle metallurgy and 
route the collected gases to a PM control device. All plants have title 
V permits because they are major sources for criteria pollutants (hence 
the standards proposed today would be implemented via title V permits). 
In addition, all plants are subject to the CAM requirements in 40 CFR 
part 64.
    There are a wide variety of capture systems and types of control 
devices that EAFs employ to achieve control of PM, and all of these 
systems are effective and generally available. For example, capture 
systems include direct-shell evacuation, canopy hoods, close-fitting 
hoods, side draft hoods, tapping hoods, partial enclosures, total 
enclosures, scavenger duct systems, building evacuation, or a 
combination. Control devices include many different types of baghouses 
(positive pressure, negative pressure, reverse air, shaker, and pulse 
jet) and venturi scrubbers. We concluded from our technology review 
that the generally available control technologies and management 
practices for PM emissions, and thus for emissions of HAP metals other 
than mercury, consist of the installation, operation, and maintenance 
of capture and control systems for PM emissions from charging, melting, 
tapping, and ladle metallurgy. Compliance assurance monitoring under 40 
CFR part 64 is required for EAF facilities to ensure that the capture 
and control systems are properly installed, operated, and maintained on 
a continuing basis.
    Subcategories. As part of the GACT analysis, we considered whether 
there were differences in processes, sizes, or other factors affecting 
emissions and control technologies that would warrant 
subcategorization. Under section 112(d)(1) of the CAA, EPA ``may 
distinguish among classes, types, and sizes within a source category or 
subcategory in establishing such standards * * *''. We found that there 
is a segment of the EAF steelmaking industry that is comprised of small 
facilities producing specialty and stainless steel. These facilities 
produce less than 150,000 tpy of steel per plant, and they represent 
0.5 percent of the national steelmaking capacity and contribute only 
0.5 percent of the HAP emissions.\21\ The EAF process at these small 
producers is characterized by small furnaces with low volume of 
emissions, longer cycle times, and intermittent rather than continuous 
operation. In addition, they use high quality scrap that must meet 
specifications much more stringent than those applied to scrap for 
carbon steel producers. The HAP metals emitted from these facilities 
are primarily chromium and nickel, whereas carbon steel producers emit 
primarily manganese and lead. Consequently, we are proposing to develop 
GACT standards for two subcategories of EAF steelmaking: one for all 
carbon steel and large stainless and specialty steel producers and one 
for small stainless and specialty steel producers (i.e., less than 
150,000 tpy).
---------------------------------------------------------------------------

    \21\ Additional details on the characteristics of the small 
specialty steel plants can be found in the rulemaking docket.
---------------------------------------------------------------------------

    Proposed GACT determination for carbon steel and large specialty 
steel producers. We examined emission limits in title V permits to 
determine if GACT for the carbon steel and large specialty steel 
producers could be expressed in terms of PM emission limits for control 
devices and opacity limits for fugitive emissions from the melt shop. 
The emission and opacity limits vary quite widely depending on whether 
the facility is in a non-attainment area for PM; whether the EAF had 
recently been constructed, modified, or reconstructed; EAF age; design 
of the capture and control system; and other factors. (Details on the 
permit information are provided in the rulemaking docket in the 
questionnaire responses for each company that was surveyed.) The most 
commonly-applied emissions and opacity limits are those in the new 
source performance standard (NSPS) in 40 CFR part 60, subpart AAa, 
which applies to EAFs constructed after August 7, 1983. Approximately 
80 of the 91 EAF steelmaking area source facilities that we have 
identified are subject to the NSPS. These limits are

[[Page 53826]]

0.0052 gr/dscf for the control device and a melt shop opacity limit of 
6 percent (6-minute average) for fugitive emissions.
    We gathered additional information on the 10 older EAFs in the 
carbon steel and large specialty steel subcategory that are not subject 
to the NSPS and found that four facilities are currently meeting the 
NSPS limits and six facilities are not meeting the NSPS opacity limit 
for fugitive emissions. We found that the facilities not meeting the 
NSPS opacity limit would require either new or extensively upgraded 
capture and control equipment to achieve the level of control required 
for the newer facilities subject to the NSPS. We confirmed that these 
facilities would need higher evacuation rates for their capture systems 
and new or expanded baghouse capacity. We obtained cost estimates from 
the plants, and we performed our own independent estimates of the cost 
to upgrade capture and control systems. The total nationwide capital 
cost to upgrade to meet the NSPS limit for opacity was estimated as $26 
to $34 million.\22\ The total annualized cost was estimated as $4.9 to 
$6.2 million per year nationwide. PM emissions would be reduced by 540 
tpy, and HAP metals other than mercury would be reduced by 34 tpy. The 
average cost effectiveness per plant ranged from $2,000 to $14,000 per 
ton of PM with an overall cost effectiveness of $10,000 per ton of PM. 
For metal HAP other than mercury, the average cost effectiveness per 
plant ranged from $40,000 to $250,000 per ton with an overall cost 
effectiveness of $160,000 per ton of HAP. The cost effectiveness for PM 
is well within the range that EPA has considered acceptable for other 
sources, such as PM standards for mobile sources. For example, the cost 
effectiveness of mobile source programs adopting (quite aggressive) PM 
controls has ranged from $2,390 per ton of PM to $31,530 per ton of PM 
with estimates for three mobile source programs in the range of $10,000 
to $20,000 per ton of PM (69 FR 39133, June 29, 2004).\23\
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    \22\ The capital cost per plant ranged from $1.5 million to $12 
million, and the total annualized cost per plant ranged from 
$140,000 to $2.8 million per year. All estimates of impacts (e.g., 
costs and emission reductions) are documented in the rulemaking 
docket.
    \23\ We note that, although section 112(d) only authorizes 
control of hazardous air pollutants (HAP), and particulate matter 
(PM) is not itself a HAP but a surrogate for HAP metals, Congress 
expected the maximum achievable control technology (MACT) program to 
result in significant emissions reductions of criteria air 
pollutants (of which PM is one), and viewed this as an important 
benefit of the MACT (and residual risk) provisions. See 5 
Legislative History at 8512 (Senate Committee Report) (``[w]hen 
establishing technology-based standards under this subsection, the 
Administrator may consider the benefits which result from control of 
air pollutants that are not listed but the emissions of which are, 
nevertheless, reduced by control technologies or practices necessary 
to meet the prescribed limitation'')
---------------------------------------------------------------------------

    Our economic analysis indicated the facilities are owned and 
operated by large corporations, and all but one of these corporations 
operate multiple plants with EAFs. We believe that the costs of 
upgrades to meet the NSPS level of control for opacity are economical 
and would not pose adverse economic impacts on the companies. After 
considering the economic impacts, the reasonable costs and cost 
effectiveness for control of PM and HAP, and the emissions reductions 
that would be obtained, we have determined initially that an opacity 
limit of 6 percent represented the GACT level of control for this 
subcategory of carbon steel and large stainless and specialty steel 
producers.
    We acknowledge that there is uncertainty in our estimates of costs, 
emission reductions, and cost effectiveness. The estimates of costs and 
cost effectiveness for the older non-NSPS plants could be higher than 
we have initially estimated, and if that is the case and these costs 
are disproportionately different from those of other sources, it might 
be appropriate to consider a separate subcategory based on the 
technical and economic feasibility (i.e., facilities constructed prior 
to 1983 may need to add or alter existing infrastructure, upgrade their 
hooding, close vents, install partitions, or re-route crane ways) of 
retrofitting facilities based on their age.\24\ If subcategorization on 
this basis is appropriate, we believe that GACT for these older 
facilities would achieve an opacity limit of 6 percent except for 20 
percent opacity during charging and tapping. This alternative standard 
would yield an improvement in existing performance at reasonable cost. 
We request comment, along with supporting documentation, on our 
estimates of cost and cost effectiveness and the possibility of 
creating a separate subcategory for older facilities and whether these 
costs are disproportionately different from those of other industry 
sources. Supporting documentation must be provided in sufficient detail 
to allow characterization of the quality and representativeness of the 
data.
---------------------------------------------------------------------------

    \24\ See Texas Oil and Gas Ass'n v. EPA, 161 F.3d 923, 934 (5th 
Cir. 1998) (age as subcategorization factor under Clean Water Act); 
American Iron and Steel Inst. v. EPA, 568 F. 2d 244, 299 (3rd Cir. 
1977) (same). Here, the year 1983 is critical since EPA promulgated 
new source performance standards (NSPS) for the electric arc furnace 
(EAF) source category in that year. Most of the industry is subject 
to these standards, but 10 EAFs are not, raising the question of 
whether these sources should be considered as a separate subcategory 
for purposes of determining generally available control technology 
(GACT). See Cf. American Iron and Steel Inst. v. EPA, 526 F. 2d 
1046, 1048 (3rd Cir. 1975) (age of source may bear on technical and 
economic feasibility of retrofitting).
---------------------------------------------------------------------------

    We also evaluated the generally available controls and emission 
limits applied to emissions from control devices on EAFs and ladle 
metallurgy operations. A total of 80 plants are subject to and achieve 
the NSPS PM limit of 0.0052 gr/dscf, and the other 10 plants not 
subject to the NSPS have installed baghouses that can achieve the 
limit. Consequently, we are also proposing that the PM limit of 0.0052 
gr/dscf is GACT for control devices applied to EAFs and ladle 
metallurgy operations.
    We also considered whether additional control and emission 
reductions might be generally available beyond those achieved by the 
NSPS. The NSPS opacity limit of 6 percent is one of the most stringent 
Federal limits in effect for fugitive emissions and is well below the 
most commonly applied limit of 20 percent for fugitive emissions in 
State regulations. The NSPS opacity limit was based on the best-
performing plants in terms of their ability to capture and control 
fugitive emissions. A limit more stringent than 6 percent opacity for 
fugitive emissions has not been applied to EAFs or other similar 
processes, and any limit more stringent would approach an infeasible 
standard of no visible emissions. Consequently, we concluded that an 
opacity limit of 6 percent is GACT for fugitive emissions from EAF 
operations.
    We also considered whether a PM limit more stringent than the NSPS 
limit of 0.0052 gr/dscf might be achieved by all facilities using the 
technology described above. Although the NSPS is 20 years old, it was 
based on the best technology and best-performing sources at that time. 
The NSPS level of control is achieved by a well-designed and properly-
operated baghouse with a low air-to-cloth ratio that is characteristic 
of baghouses in use today, and generally reflected testing of the 
baghouses when performing at their optimum. For example, essentially 
the same level of PM control (a limit of 0.005 gr/dscf) was promulgated 
as the MACT standard for EAFs and induction furnaces at iron and steel 
foundries, which melt similar scrap and have similar operating 
characteristics (69 FR 21924, April 22, 2004). An upgrade of existing 
baghouses (e.g., increasing bag filtering area to lower the air-to-
cloth ratio) would result

[[Page 53827]]

in expensive retrofit costs for a very marginal improvement in PM 
control. Consequently, we are proposing that the NSPS PM limit of 
0.0052 gr/dscf is GACT for control devices applied to EAFs and ladle 
metallurgy.
    Proposed GACT determination for small stainless and specialty steel 
producers. We also examined the control technologies used by the small 
stainless and specialty steel producers with a production of less than 
150,000 tpy. We identified five plants in this subcategory, and all of 
these plants apply capture systems for emissions from charging, 
melting, tapping, and ladle metallurgy (i.e., the direct, non-fugitive 
PM emissions) and vent the captured emissions to a PM control device. 
Most plants use baghouses as the PM control device and meet the NSPS 
limit; however, one plant uses a venturi scrubber as the control device 
and meets a PM emission level of 0.8 lb/ton of steel produced. We 
performed an analysis of costs and cost effectiveness to determine if 
the GACT level of emission control for this subcategory should be 
represented by the performance of a baghouse at the NSPS level of 
control, the level achieved by the venturi scrubber, or some other 
level. The estimated capital cost to replace the venturi scrubber with 
a baghouse ranged from $4 to $14 million (depending on retrofit 
assumptions and their costs) with a total annualized cost of $0.7 to $2 
million per year. PM emissions would be reduced by 27 tpy, and 
emissions of HAP metals other than mercury would be reduced by 4.6 tpy. 
The estimated cost effectiveness was $52,000 per ton of PM and $300,000 
per ton of HAP. We believe that the costs and cost effectiveness are 
unacceptably high and that the emission reductions achieved would be 
low (resulting in poor cost effectiveness (which is certainly higher 
than those considered acceptable in the context just discussed of 
fugitive emission control for EAFs). We concluded that the NSPS level 
of PM control (0.0052 gr/dscf) does not represent GACT for this 
subcategory.
    Consequently, we reviewed the emission control performance of the 
plant with the venturi scrubber. The results of four tests for PM 
emissions ranged from 0.4 to 0.7 lb/ton of steel with an average of 0.5 
lb/ton and a standard deviation of 0.11 lb/ton. The 99th percentile of 
performance (the average plus 2.33 standard deviations) is 0.8 lb/ton. 
(The 99th percentile is the level of emission control that the plant 
can achieve at least 99 percent of the time, i.e., 99 percent of the 
test results would be below this level.) See National Wildlife 
Federation v. EPA, 286 F.3d 554, 572 (D.C. Cir. 2002) (reasonableness 
of adopting 99th percentile confidence level); Chemical Mfr's. Ass'n v. 
EPA, 870 F.2d, 229 (5th Cir.) (same). We are proposing a PM emission 
limit of 0.8 lb/ton of steel produced for this source category of small 
stainless and specialty steel producers based on the 99th percentile of 
emission control performance demonstrated by the venturi scrubber.
    We also examined the control of fugitive emissions at the small 
stainless and specialty steel producers. All of the plants have 
effective capture and control systems for fugitive emissions. Although 
two plants are not subject to the NSPS opacity limit of 6 percent for 
fugitive emissions, these plants and all other plants in the 
subcategory can meet the NSPS limit. Consequently, we have initially 
determined that the NSPS limit of 6 percent for fugitive emissions from 
the melt shop represented GACT. As we discussed above, the NSPS opacity 
limit of 6 percent is one of the most stringent limits in effect for 
fugitive emissions and is well below the most commonly applied limit of 
20 percent for fugitive emissions in State regulations. The NSPS 
opacity limit was based on the best performing plants in terms of their 
ability to capture and control fugitive emissions. Consequently, we 
initially concluded that an opacity limit more stringent than 6 percent 
for this subcategory is not warranted and would not represent GACT.
    Proposed compliance monitoring. We are proposing compliance 
assurance monitoring as required by 40 CFR part 64 for all EAF 
steelmaking facilities. This proposal is based on a review of the 
compliance monitoring procedures that are currently in place at EAF 
facilities and are generally available. All EAF facilities have title V 
permits and are subject to the CAM requirements. The CAM rule requires 
the owner or operator to maintain records of monitoring data, monitor 
performance data, corrective actions taken, any written QIP, any 
activities undertaken to implement a QIP, and other supporting 
information required by the part 64 rule (such as data used to document 
the adequacy of monitoring, or records of monitoring maintenance or 
corrective actions). The general reporting requirements of part 64 
requires the owner or operator to submit monitoring reports to the 
permitting authority in accordance with the requirements for facilities 
with title V operating permits, which include a 6-month monitoring 
report, deviation reports, and annual compliance certifications. The 
reporting requirements under part 64 require that the 6-month 
monitoring report include: (1) Summary information on the number, 
duration and cause (including unknown cause, if applicable) of 
excursions or exceedances, as applicable, and the corrective actions 
taken; (2) summary information on the number, duration and cause 
(including unknown cause, if applicable) for monitor downtime incidents 
(other than downtime associated with zero and span or other daily 
calibration checks, if applicable); and (3) a description of the 
actions taken to implement a QIP during the reporting period. Upon 
completion of a QIP, the owner or operator must include in the next 
summary report documentation that the implementation of the plan has 
been completed and reduced the likelihood of similar levels of 
excursions or exceedances occurring. We are proposing to adopt the 
extensive compliance assurance monitoring requirements in part 64 in 
this proposed NESHAP for EAF steelmaking facilities.
3. Proposed GACT Standards for Scrap to Control HAP Other Than Mercury
    In addition to the standards for PM, EPA is proposing further 
measures to minimize the amount of contamination in scrap to EAFs. Our 
studies of industry practices indicate that many facilities have scrap 
specifications and procedures to minimize contaminants in the scrap. 
For example, emissions of the Urban HAP lead are reduced by ensuring 
that lead components, such as wheel weights, batteries, and cables, are 
removed before the scrap is processed and melted (loosely analogous to 
the mercury switch program discussed for mercury in that the HAP is 
removed from the scrap before it reaches the EAF). Although EAFs were 
not listed for emissions of organic Urban HAP, it is also common 
industry practice to limit the amount of plastics and organic liquids 
in the scrap, which reduces the emissions of organic HAP. Unlike 
mercury, bulky items such as batteries and cables, as well as dripping 
liquids, can often be visually detected in a scrap load. Consequently, 
we are proposing pollution prevention measures as GACT for lead and 
organic HAP. These pollution prevention measures reduce emissions 
beyond those achieved by the emission controls that are already in 
place. For example, all EAFs have PM control devices, which also 
control lead emissions; however, preventing lead from entering the EAF 
provides additional reductions even with PM controls. Similarly, some 
organic HAP are destroyed at the high temperatures used to melt scrap, 
but preventing plastics and organic liquids from entering with the 
scrap provides

[[Page 53828]]

reductions beyond that achieved by this thermal destruction.
    Our survey of EAF plants indicated that all of the plants have 
specifications for their scrap, including measures that reduce HAP 
emissions by preventing certain materials from entering the EAF with 
the scrap. For example, some specify no non-ferrous metals, no non-
metallic materials, no free-flowing oil, etc. Excluding organic 
materials (such as plastics and oil) and metals such as lead will 
reduce HAP emissions, and in the case of organics, also reduce the 
formation of combustion-product organic HAP at the high operating 
temperatures of the EAF.
    It is difficult to quantify specific emissions reductions achieved 
by these scrap management programs. First, nearly all plants implement 
some sort of formal or informal scrap management program (to maintain 
product quality), so it is difficult to assess what the baseline 
emissions might be without one. Second, these scrap management programs 
are used in conjunction with other air emissions control technologies 
to reduce emissions from the EAF. The emissions reductions specifically 
attributable to the scrap management program are impossible to separate 
out. Nonetheless, it is clear that any reduction in HAP content or HAP 
precursors entering the EAF will reduce the emissions of HAP metals and 
organics from the EAF.
    While a scrap management program is expected to reduce HAP 
emissions, it cannot be expected to eliminate all HAP elements or 
precursors in the scrap. First, scrap loads are generally large and 
difficult to inspect. A load of scrap may contain thousands of 
different pieces, and some scrap may be shredded and bundled. Visual 
inspections are only able to identify obvious off-specification 
materials that are on the top of a load. Second, some of the HAP 
elements are desirable components in the scrap iron and steel that 
contribute to the overall chemistry of the product and provide valuable 
properties in the cast metal (e.g., manganese and chromium.) Third, 
even undesirable HAP metals cannot be eliminated from the cast iron and 
steel as they are trace components in the scrap iron and steel that 
cannot be separated. For example, all cast iron contains trace amounts 
of lead (typically 0.5 to 4 percent). As such, a load of scrap meeting 
a ``no lead'' scrap specification does not mean that the scrap is lead-
free--only that the scrap is free of lead components (e.g., batteries 
or wheel weights).
    We have determined that the management practice of limiting the 
amount of organic impurities and lead in the scrap represents GACT 
(along with the emission controls described in the previous section of 
this preamble) because they are in widespread use, there is little 
additional cost for all plants to implement them (most already have), 
and there is no doubt that preventing these materials from entering the 
EAF will reduce emissions of the HAP which would otherwise be charged 
to the furnace. (A summary of the proposed scrap management practices 
is provided in section IV.C.4 of this preamble.)

V. Impacts of the Proposed Standards

    As proposed, the standards would reduce mercury emissions from EAF 
by an estimated 5 tons per year (tpy) and would reduce mercury releases 
to the environment by 8 tpy. The proposed standards would also reduce 
emissions of other metallic HAP (primarily manganese with some lead, 
nickel and chromium) by about 34 tpy. Emissions of PM would be reduced 
by 540 tpy.
    The capital cost of the proposed standards is estimated as $26 to 
$34 million. The total annualized cost of the proposed rule is 
estimated at $4.9 to $6.2 million/yr, including the annualized cost of 
capital and the annual operating costs for emission control systems. 
The additional cost of monitoring, reporting, and recordkeeping 
attributable to the proposed rule, including the preparation of scrap 
management plans and scrap specifications, is estimated as $122,000 per 
year. No adverse economic impacts are expected for large or small 
entities. Secondary impacts would include an increase in the generation 
of hazardous waste (540 tpy) and an increase in electricity usage 
(10,400 megawatt-hours per year) from additional fans and fan capacity 
associated with baghouse installations and upgrades to meet the 
proposed opacity standard. (All estimates of primary and secondary 
impacts are documented in the rulemaking docket.)

VI. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is a ``significant regulatory action'' because it may raise 
novel legal or policy issues. Accordingly, EPA submitted this action to 
OMB for review under Executive Order 12866, and any changes made in 
response to OMB recommendations have been documented in the docket for 
this action.

B. Paperwork Reduction Act

    The information collection requirements in the proposed rule have 
been submitted for approval to OMB under the Paperwork Reduction Act, 
44 U.S.C. 3501 et seq. The Information Collection Request (ICR) 
document prepared by EPA has been assigned EPA ICR No. 2277.02.
    The proposed information requirements are based on notification, 
recordkeeping, and reporting requirements in the NESHAP General 
Provisions (40 CFR part 63, subpart A), which are mandatory for all 
operators subject to national emission standards, and the recordkeeping 
and reporting requirements in the part 64 CAM rule, which are based on 
the requirements in the operating permits rule (40 CFR parts 70 and 
71). These recordkeeping and reporting requirements are specifically 
authorized by section 114 of the CAA (42 U.S.C. 7414). All information 
submitted to EPA pursuant to the recordkeeping and reporting 
requirements for which a claim of confidentiality is made is 
safeguarded according to Agency policies set forth in 40 CFR part 2, 
subpart B.
    The proposed rule requires all facilities to submit a one-time 
notification of applicability and notification of compliance status 
required by the NESHAP general provisions (40 CFR part 63, subpart A). 
The notification of compliance status would include compliance 
certifications for various rule requirements. The general provisions 
also require preparation of a test plan for performance tests and 
advance notification of the date the performance test is to be 
conducted.
    The proposed requirements for the control of contaminants from 
scrap require a pollution prevention plan to minimize the amount of 
chlorinated plastics, lead, and free organic liquids that are charged 
to the furnace and submit the plan to the Administrator for approval. 
Facilities must keep the plan onsite and train certain employees in the 
plan's requirements. Alternatively, the facility must restrict the type 
of scrap charged to the furnace. For mercury, facilities must prepare a 
site-specific plan for removal of mercury switches, submit the plan to 
the Administrator for approval, and submit semiannual progress reports 
containing information on the mercury switches that have been removed 
would also be required. Alternatively, facilities must purchase motor 
vehicle scrap only from suppliers that participate in an approved 
program for the removal of mercury switches or recover only

[[Page 53829]]

material for its specialty alloy content that does not contain mercury 
switches. Facilities would be required to maintain records to 
demonstrate compliance with the selected option. Records of specific 
information would be required for plants electing to comply with the 
site-specific plan for mercury; semiannual progress reports would also 
be required.
    All area source facilities would be required to conduct performance 
tests to demonstrate initial compliance with the applicable PM and 
opacity limits. Existing facilities would be allowed to certify initial 
compliance based on the results of a previous performance test that 
meets the rule requirements. All facilities would be required to 
monitor capture systems and PM control devices for EAF and ladle 
metallurgy operations, maintain records, and submit reports according 
to the part 64 CAM requirements. These reports include deviation 
reports, semiannual monitoring reports, and annual compliance 
certifications.
    Consistent with Sec.  63.6(e) of the general provisions, all plants 
would be required to prepare and operate by a startup, shutdown, and 
malfunction plan, and make an immediate report if a startup, shutdown, 
or malfunction was not consistent with their plan. Plants also would 
keep records and make semiannual reports according to the requirements 
in Sec.  63.10.
    The annual average monitoring, reporting, and recordkeeping burden 
for this collection (averaged over the first 3 years of this ICR) is 
estimated to total 2,393 labor hours per year at a cost of $121,573. 
This includes 2.7 responses per year from each of 91 respondents for an 
average of about 9.7 hours per response. There are no additional 
capital/startup costs or operation and maintenance costs associated 
with the proposed rule.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. This includes the time 
needed to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.
    An agency may not conduct or sponsor, and a person is not required 
to, respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR part 63 are listed in 40 CFR part 9.
    To comment on the Agency's need for this information, the accuracy 
of the provided burden estimates, and any suggested methods for 
minimizing respondent burden, including the use of automated collection 
techniques, EPA has established a public docket for the proposed rule, 
which includes this ICR, under Docket ID number EPA-HQ-OAR-2004-0083. 
Submit any comments related to the ICR for the proposed rule to EPA and 
OMB. See the ADDRESSES section at the beginning of this notice for 
where to submit comments to EPA. Send comments to OMB at the Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
725 17th Street, NW., Washington, DC 20503, Attention: Desk Office for 
EPA. Because OMB is required to make a decision concerning the ICR 
between 30 and 60 days after September 20, 2007, a comment to OMB is 
best assured of having its full effect if OMB receives it by October 
22, 2007. The final rule will respond to any OMB or public comments on 
the information collection requirements contained in the proposal.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act generally requires an agency to 
prepare a regulatory flexibility analysis of any rule subject to notice 
and comment rulemaking requirements under the Administrative Procedure 
Act or any other statute unless the agency certifies that the rule 
would not have a significant economic impact on a substantial number of 
small entities. Small entities include small businesses, small not-for-
profit enterprises, and small governmental jurisdictions.
    For the purposes of assessing the impacts of this proposed rule on 
small entities, small entity is defined as: (1) A small business that 
meets the Small Business Administration size standards for small 
businesses at 13 CFR 121.201 (whose parent company has fewer than 1,000 
employees for NAICS code 331111; (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 which is 
independently owned and operated and is not dominant in its field. We 
estimate that fewer than 9 EAF steelmaking facilities are owned by 
small businesses (less than 10 percent of the total facilities).
    After considering the economic impacts of this proposed rule on 
small entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities. Electric arc 
furnaces and ladle metallurgy operations at all EAF steelmaking 
facilities that are area sources are already equipped with capture 
systems and control devices. We have identified six plants that may 
have to upgrade the capture and control systems for fugitive emissions 
at a total capital cost of $26 to $34 million and a total annualized 
cost of $4.9 to $6.2 million per year. However, none of these plants 
are owned by small businesses. The only other additional requirements 
of the proposed NESHAP consist of preparing a scrap selection plan or 
mercury switch removal plan (if these options are selected) and 
maintaining records to document compliance with these requirements. The 
requirements of the part 63 General Provisions would include 
notifications, records, semiannual reports, and a startup, shutdown, 
and malfunction plan. The information required in these information 
collection requirements are very similar to the information collection 
requirements in 40 CFR parts 64, 70, and 71. The cost of these 
requirements (about $3,500 per year per facility) would not result in 
an adverse economic impact on any facility, large or small (i.e., the 
cost is less than one percent of total revenues, even for small 
businesses).
    Although the proposed rule will not have a significant economic 
impact on a substantial number of small entities, we nonetheless tried 
to reduce the impact of the proposed rule on small entities. We held 
meetings with industry trade associations and company representatives 
to discuss the proposed rule and have included provisions such as the 
lb/ton limit for small facilities that address their concerns. We have 
also proposed to include a subcategory based partially on facility size 
that allows more individualized consideration of EAFs in the proposed 
subcategory, which include small businesses. We continue to be 
interested in the potential impacts of the proposed action on small 
entities and welcome comments on issues related to such impacts.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local,

[[Page 53830]]

and tribal governments and the private sector. Under section 202 of the 
UMRA, EPA generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures by State, local, and tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any 1 year. Before promulgating an EPA rule for 
which a written statement is needed, section 205 of the UMRA generally 
requires EPA to identify and consider a reasonable number of regulatory 
alternatives and adopt the least costly, most cost-effective, or least 
burdensome alternative that achieves the objectives of the rule. The 
provisions of section 205 do not apply when they are inconsistent with 
applicable law. Moreover, section 205 allows EPA to adopt an 
alternative other than the least costly, most cost-effective, or least 
burdensome alternative if the Administrator publishes with the final 
rule an explanation why that alternative was not adopted. Before EPA 
establishes any regulatory requirements that may significantly or 
uniquely affect small governments, including tribal governments, it 
must have developed under section 203 of the UMRA a small government 
agency plan. The plan must provide for notifying potentially affected 
small governments, enabling officials of affected small governments to 
have meaningful and timely input in the development of EPA regulatory 
proposals with significant Federal intergovernmental mandates, and 
informing, educating, and advising small governments on compliance with 
the regulatory requirements.
    The EPA has determined that the proposed rule does not contain a 
Federal mandate that may result in expenditures of $100 million or more 
for State, local, and tribal governments, in the aggregate, or to the 
private sector in any one year. Thus, the proposed rule is not subject 
to the requirements of sections 202 and 205 of the UMRA. In addition, 
the proposed rule does not significantly or uniquely affect small 
governments. The proposed rule contains no requirements that apply to 
such governments and impose no obligations upon them, and the proposed 
rule is not subject to section 203 of the UMRA.

E. Executive Order 13132: Federalism

    Executive Order 13132 (64 FR 43255, August 10, 1999) requires EPA 
to develop an accountable process to ensure ``meaningful and timely 
input by State and local officials in the development of regulatory 
policies that have federalism implications.'' ``Policies that have 
federalism implications'' are defined in the Executive Order to include 
regulations that have ``substantial direct effects on the States, on 
the relationship between the national government and the States, or on 
the distribution of power and responsibilities among the various levels 
of government.''
    The proposed rule does not have federalism implications. It would 
not have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132. The proposed rule does not 
impose any requirements on State and local governments. Thus, Executive 
Order 13132 does not apply to the proposed rule.
    In the spirit of Executive Order 13132, and consistent with EPA 
policy to promote communications between EPA and State and local 
officials, EPA specifically solicits comments on this proposed rule 
from State and local officials.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175 (65 FR 67249, November 6, 2000), requires EPA 
to develop an accountable process to ensure ``meaningful and timely 
input by tribal officials in the development of regulatory policies 
that have tribal implications.'' The proposed rule does not have tribal 
implications, as specified in Executive Order 13175. It would not have 
substantial direct effects on tribal governments, on the relationship 
between the Federal government and Indian tribes, or on the 
distribution of power and responsibilities between the Federal 
government and Indian tribes, as specified in Executive Order 13175. 
The proposed rule imposes no requirements on tribal governments. Thus, 
Executive Order 13175 does not apply to the proposed rule.
    EPA specifically solicits additional comment on this proposed rule 
from tribal officials.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    Executive Order 13045 (62 FR 19885, April 23, 1997) applies to any 
rule that: (1) Is determined to be ``economically significant,'' as 
defined under Executive Order 12866, and (2) concerns an environmental 
health or safety risk that EPA has reason to believe may have a 
disproportionate effect on children. If the regulatory action meets 
both criteria, EPA must evaluate the environmental health or safety 
effects of the planned rule on children, and explain why the planned 
regulation is preferable to other potentially effective and reasonably 
feasible alternatives considered by the Agency.
    EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that are based on health or safety risks, such that 
the analysis required under section 5-501 of the Executive Order has 
the potential to influence the regulation. The proposed rule is not 
subject to the Executive Order because it is based on technology 
performance and not on health or safety risks.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This proposed rule is not a ``significant energy action'' as 
defined in Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use'' (66 FR 
28355, May 22, 2001) because it is not likely to have a significant 
adverse effect on the supply, distribution, or use of energy. Further, 
we have concluded that the proposed rule is not likely to have any 
adverse energy effects because only a slight increase in energy 
requirements would occur.

I. National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act (NTTAA) of 1995 (Public Law No. 104-113, 15 U.S.C. 272 note) 
directs EPA to use voluntary consensus standards (VCS) in its 
regulatory activities, unless to do so would be inconsistent with 
applicable law or otherwise impractical. The VCS are technical 
standards (e.g., materials specifications, test methods, sampling 
procedures, and business practices) that are developed or adopted by 
VCS bodies. The NTTAA directs EPA to provide Congress, through OMB, 
explanations when the Agency does not use available and applicable VCS.
    This proposed rule involves technical standards. EPA is proposing 
to use EPA Methods 1, 1A, 2, 2A, 2C, 2D, 2F, 2G, 3, 3A, 3B, 4, 5, 5D, 
and 9 in 40 CFR part 60, appendix A; EPA Method 9095B, ``Paint Filter 
Liquids Test,'' in ``Test Methods for Evaluating Solid Waste, Physical/
Chemical Methods,'' EPA Publication SW-846, revision 2 and subsequent 
revisions, dated November 2004 and in Update IIIB (incorporated by 
reference in 63.10692--see 40 CFR 63.14); and ASTM D2216-05 and

[[Page 53831]]

subsequent revisions, ``Standard Test Methods for Laboratory 
Determination of Water (Moisture) Content of Soil and Rock by Mass'', 
incorporated by reference approved for Sec.  63.10692.
    Consistent with the NTTAA, EPA conducted searches to identify VCS 
in addition to these EPA methods. No applicable VCS were identified for 
EPA Methods 1A, 2A, 2D, 2F, 2G, 5D, 9, 9095B, or ASTM D2216-05. The 
search and review results are in the docket for these proposed rules.
    One voluntary consensus standard was identified as applicable to 
this proposed rule. The standard ASME PTC 19.10-1981, ``Flue and 
Exhaust Gas Analyses,'' is cited in this proposed rule for its manual 
method for measuring the oxygen, carbon dioxide, and carbon monoxide 
content of the exhaust gas. This part of ASME PTC 19.10-1981 is an 
acceptable alternative to EPA Method 3B.
    The search for emissions measurement procedures identified 12 other 
VCS. The EPA determined that these 12 standards identified for 
measuring emissions of the HAP or surrogates subject to emissions 
standards in this proposed rule were impractical alternatives to EPA 
test methods. Therefore, EPA does not intend to adopt these standards 
for this purpose. The reasons for the determinations for the 12 methods 
are discussed in a memorandum included in the docket for this proposed 
rule.
    For the methods required or referenced by this proposed rule, a 
source may apply to EPA for permission to use alternative test methods 
or alternative monitoring requirements in place of any required testing 
methods, performance specifications, or procedures under Sec.  63.7(f) 
and Sec.  63.8(f) of subpart A of the General Provisions.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629, February 16, 1994) establishes 
Federal executive policy on environmental justice. Its main provision 
directs Federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States.
    EPA has determined that this proposed rule will not have 
disproportionately high and adverse human health or environmental 
effects on minority or low-income populations because it increases the 
level of environmental protection for all affected populations without 
having any disproportionately high and adverse human health or 
environmental effects on any population, including any minority or low-
income population. This proposed rule establishes national standards 
for the area source category.

List of Subjects in 40 CFR Part 63

    Environmental protection, Air pollution control, Hazardous 
substances, Reporting and recordkeeping requirements.

    Dated: September 12, 2007.
Stephen L. Johnson,
Administrator.

    For the reasons stated in the preamble, title 40, chapter I, part 
63 of the Code of Federal Regulations is proposed to be amended as 
follows:

PART 63--[AMENDED]

    1. The authority citation for part 63 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart A--[AMENDED]

    2. Section 63.14 is amended as follows:
    a. By adding paragraph (b)(63);
    b. By revising paragraph (i)(1); and
    c. By adding paragraph (k)(1)(iv).

Sec.  63.14  Incorporations by reference.

* * * * *
    (b) * * *
    (63) ASTM D2216-05 and subsequent revisions, ``Standard Test 
Methods for Laboratory Determination of Water (Moisture) Content of 
Soil and Rock by Mass'', IBR approved for Sec.  63.10692.
* * * * *
    (i) * * *
    (1) ANSI/ASME PTC 19.10-1981, ``Flue and Exhaust Gas Analyses [Part 
10, Instruments and Apparatus],'' IBR approved for Sec. Sec.  
63.309(k)(1)(iii), 63.865(b), 63.3166(a)(3), 63.3360(e)(1)(iii), 
63.3545(a)(3), 63.3555(a)(3), 63.4166(a)(3), 63.4362(a)(3), 
63.4766(a)(3), 63.4965(a)(3), 63.5160(d)(1)(iii), 63.9307(c)(2), 
63.9323(a)(3), 63.10702, 63.11148(e)(3)(iii), 63.11155(e)(3), 
63.11162(f)(3)(iii) and (f)(4), 63.11163(g)(1)(iii) and (g)(2), 
63.11410(j)(1)(iii, and Table 5 to subpart DDDDD of this part.
* * * * *
    (k) * * *
    (1) * * *
    (iv) Method 9095B, ``Paint Filter Liquids Test,'' (revision 2 and 
subsequent revisions), dated November 2004 and in Update IIIB, IBR 
approved for Sec.  63.10692.
* * * * *
    3. Part 63 is amended by adding subpart YYYYY to read as follows:
Subpart YYYYY--National Emission Standards for Hazardous Air Pollutants 
for Area Sources: Electric Arc Furnace Steelmaking Facilities

Applicability and Compliance Dates

Sec.
63.10680 Am I subject to this subpart?
63.10681 What are my compliance dates?

Standards and Compliance Requirements

63.10685 What are the requirements for the control of contaminants 
from scrap?
63.10686 What are the requirements for electric arc furnaces and 
ladle metallurgy operations?

Other Requirements and Information

63.10690 What parts of the General Provisions apply to me?
63.10691 Who implements and enforces this subpart?
63.10692 What definitions apply to this subpart?

Tables to Subpart YYYYY of Part 63

Table 1 to Subpart YYYYY of Part 63--Applicability of General 
Provisions to Subpart YYYYY

Subpart YYYYY--National Emission Standards for Hazardous Air 
Pollutants for Area Sources: Electric Arc Furnace Steelmaking 
Facilities

Applicability and Compliance Dates

Sec.  63.10680  Am I subject to this subpart?

    (a) You are subject to this subpart if you own or operate an 
electric arc furnace (EAF) steelmaking facility that is an area source 
of hazardous air pollutant (HAP) emissions.
    (b) This subpart applies to each new or existing affected source. 
The affected source is each EAF steelmaking facility.
    (1) An affected source is existing if you commenced construction or 
reconstruction of the affected source on or before September 20, 2007.
    (2) An affected source is new if you commenced construction or 
reconstruction of the affected source after September 20, 2007.
    (c) This subpart does not apply to research and development 
facilities, as defined in section 112(c)(7) of the Clean Air Act (CAA).
    (d) If you own or operate an area source subject to this subpart, 
you must obtain a permit under 40 CFR part 70 or 40 CFR part 71.

Sec.  63.10681  What are my compliance dates?

    (a) Except as provided in paragraph (b) of this section, if you own 
or operate

[[Page 53832]]

an existing affected source, you must achieve compliance with the 
applicable provisions of this subpart by no later than 6 months after 
the date of publication of the final rule in the Federal Register.
    (b) If you own or operate an existing affected source, you must 
achieve compliance with the opacity limit in Sec.  63.10686 (b)(2) or 
(c)(2) by no later than 2 years after the date of publication of the 
final rule in the Federal Register if you demonstrate to the 
satisfaction of the permitting authority that additional time is needed 
to install or modify emission control equipment.
    (c) If you start up a new affected source on or before the date of 
date of publication of the final rule in the Federal Register, you must 
achieve compliance with the applicable provisions of this subpart by no 
later than the date of publication of the final rule in the Federal 
Register.
    (d) If you start up a new affected source after the date of 
publication of the final rule in the Federal Register, you must achieve 
compliance with the applicable provisions of this subpart upon startup 
of your affected source.

Standards and Compliance Requirements

Sec.  63.10685  What are the requirements for the control of 
contaminants from scrap?

    (a) Chlorinated plastics, lead, and free organic liquids. For 
metallic scrap utilized in the EAF at your facility, you must comply 
with the requirements in either paragraph (a)(1) or (2) of this 
section. You may have certain scrap at your facility subject to 
paragraph (a)(1) of this section and other scrap subject to paragraph 
(a)(2) of this section provided the scrap remains segregated until 
charge make-up.
    (1) Pollution prevention plan. For the production of steel other 
than leaded steel, you must prepare and implement a pollution 
prevention plan for metallic scrap selection and inspection to minimize 
the amount of chlorinated plastics, lead, and free organic liquids that 
is charged to the furnace. For the production of leaded steel, you must 
prepare and implement a pollution prevention plan for scrap selection 
and inspection to minimize the amount of chlorinated plastics and free 
organic liquids in the scrap that is charged to the furnace. The 
requirements for a pollution prevention plan do not apply to the 
routine recycling of baghouse bags or other internal process or 
maintenance materials in the furnace. You must submit the scrap 
pollution prevention plan to the Administrator for approval. You must 
keep a copy of the plan onsite, and you must provide training on the 
plan's requirements to all plant personnel with materials acquisition 
or inspection duties. Each plan must include the information in 
paragraphs (a)(1) (i) through (iii) of this section:
    (i) Specifications that scrap materials must be depleted (to the 
extent practicable) of undrained used oil filters, chlorinated 
plastics, and free organic liquids at the time of charging to the 
furnace.
    (ii) A requirement in your scrap specifications for removal (to the 
extent practicable) of lead-containing components (such as batteries, 
battery cables, and wheel weights) from the scrap according to standard 
industry practice, except for scrap used to produce leaded steel.
    (iii) Procedures for determining if the requirements and 
specifications in paragraph (a)(1) of this section are met (such as 
visual inspection or periodic audits of scrap providers) and procedures 
for taking corrective actions with vendors whose shipments are not 
within specifications.
    (iv) The requirements of paragraph (a)(1) of this section do not 
apply to the routine recycling of baghouse bags or other internal 
process or maintenance materials in the furnace.
    (2) Restricted metallic scrap. For the production of steel other 
than leaded steel, you must not charge to a furnace metallic scrap that 
contains scrap from motor vehicle bodies, engine blocks, oil filters, 
oily turnings, machine shop borings, transformers or capacitors 
containing polychlorinated biphenyls, lead-containing components, 
chlorinated plastics, or free organic liquids. For the production of 
leaded steel, you must not charge to the furnace metallic scrap that 
contains scrap from motor vehicle bodies, engine blocks, oil filters, 
oily turnings, machine shop borings, transformers or capacitors 
containing polychlorinated biphenyls, chlorinated plastics, or free 
organic liquids. This restriction does not apply to any post-consumer 
engine blocks, post-consumer oil filters, or oily turnings that are 
processed or cleaned to the extent practicable such that the materials 
do not include lead components, chlorinated plastics, or free organic 
liquids. This restriction does not apply to motor vehicle scrap that is 
charged to recover the chromium or nickel content if you meet the 
requirements in paragraph (b)(3) of this section.
    (b) Mercury requirements. For each scrap provider, contract, or 
shipment, you must procure all motor vehicle scrap pursuant to one of 
the compliance options in paragraphs (b)(1), (2), or (3) of this 
section. You may have one scrap provider, contract, or shipment subject 
to one compliance option and others subject to another option.
    (1) Site-specific plan for mercury switches. You must comply with 
the requirements in paragraphs (b)(1)(i) through (v) of this section.
    (i) You must include a requirement in your scrap specifications for 
removal of mercury switches from vehicle bodies used to make the scrap.
    (ii) You must prepare and operate according to a plan demonstrating 
how your facility will implement the scrap specification in paragraph 
(b)(1)(i) of this section for removal of mercury switches. You must 
submit the plan to the Administrator for approval. The Administrator 
may change the approval status of the plan upon 90-days written notice 
based upon the semiannual compliance report or other information. The 
plan must include:
    (A) A means of communicating to scrap purchasers and scrap 
providers the need to obtain or provide motor vehicle scrap from which 
mercury switches have been removed and the need to ensure the proper 
management of the mercury switches removed from that scrap as required 
under the rules implementing subtitle C of the Resource Conservation 
and Recovery Act (RCRA) (40 CFR parts 261 through 265 and 268);
    (B) Provisions for obtaining assurance from scrap providers that 
motor vehicle scrap provided to the facility meet the scrap 
specification;
    (C) Provisions for periodic inspection, site visits, or other means 
of corroboration to ensure that scrap providers and dismantlers are 
implementing appropriate steps to minimize the presence of mercury 
switches in motor vehicle scrap and that the mercury switches removed 
are being properly managed, including the minimum frequency such means 
of corroboration will be implemented; and
    (D) Provisions for taking corrective actions (i.e., actions 
resulting in scrap providers removing a higher percentage of mercury 
switches or other mercury-containing components) if needed, based on 
the results of procedures implemented in paragraph (b)(1)(ii)(C) of 
this section).
    (iii) You must require each motor vehicle scrap provider to provide 
an estimate of the number of mercury switches removed from motor 
vehicle scrap sent to your facility during the previous year and the 
basis for the estimate. The Administrator may request documentation or 
additional information at any time.

[[Page 53833]]

    (iv) You must establish a goal for each scrap provider to remove at 
least 80 percent of the mercury switches. Although a site-specific plan 
approved under paragraph (b)(1) of this section may require only the 
removal of convenience light switch mechanisms, the Administrator will 
credit all documented and verifiable mercury-containing components 
removed from motor vehicle scrap (such as sensors in anti-locking brake 
systems, security systems, active ride control, and other applications) 
when evaluating progress towards the 80 percent goal.
    (v) For each scrap provider, you must submit semiannual progress 
reports to the Administrator that provide the number of mercury 
switches removed or the weight of mercury recovered from the switches, 
the estimated number of vehicles processed, an estimate of the percent 
of mercury switches removed, and certification that the removed mercury 
switches were recycled at RCRA-permitted facilities or otherwise 
properly managed pursuant to RCRA subtitle C regulations referenced in 
paragraph (b)(1)(A) of this section. The Administrator may change the 
approval status of a site-specific plan following 90-days notice based 
on the progress reports or other information.
    (2) Option for approved mercury programs. You must certify in your 
notification of compliance status that you participate in and purchase 
motor vehicle scrap only from scrap providers who participate in a 
program for removal of mercury switches that has been approved by the 
Administrator based on the criteria in paragraphs (b)(2)(i) through 
(iii) of this section. The National Vehicle Mercury Switch Recovery 
Program is an EPA-approved program under paragraph (b)(2) of this 
section unless and until the Administrator disapproves the program (in 
part or in whole) under paragraph (b)(2)(iii) of this section.
    (i) The program includes outreach that informs the dismantlers of 
the need for removal of mercury switches and provides training and 
guidance for removing mercury switches;
    (ii) The program has a goal for each scrap provider which is a 
party to the agreement to remove at least 80 percent of mercury 
switches from the motor vehicle scrap the scrap provider processes. 
Although a program approved under paragraph (b)(2) of this section may 
require only the removal of convenience light switch mechanisms, the 
Administrator will credit all documented and verifiable mercury-
containing components removed from motor vehicle scrap (such as sensors 
in anti-locking brake systems, security systems, active ride control, 
and other applications) when evaluating progress towards the 80 percent 
goal; and
    (iii) The program sponsor agrees to submit progress reports to the 
Administrator no less frequently than once every year that provide the 
number of mercury switches removed or the weight of mercury recovered 
from the switches, the estimated number of vehicles processed, an 
estimate of the percent of mercury switches recovered, and 
certification that the recovered mercury switches were recycled at 
facilities with permits as required under the rules implementing 
subtitle C of RCRA (40 CFR parts 261 through 265 and 268). The progress 
reports must be based on a database that includes data for each program 
participant; however, data may be aggregated at the State level for 
progress reports that will be publicly available. The Administrator may 
change the approval status of a program or portion of a program (e.g., 
at the State level) following 90-days notice based on the progress 
reports or on other information.
    (3) Option for specialty metal scrap. You must certify in your 
notification of compliance status that the only materials from motor 
vehicles in the scrap are materials recovered for their specialty alloy 
(including, but not limited to, chromium, nickel, molybdenum, or other 
alloys) content (such as certain exhaust systems) and, based on the 
nature of the scrap and purchase specifications, that the type of scrap 
is not reasonably expected to contain mercury switches.
    (c) Recordkeeping and reporting requirements. (1) In addition to 
the records required by Sec.  63.10, you must keep records to 
demonstrate compliance with the requirements for your pollution 
prevention plan in paragraph (a)(1) of this section and/or for the use 
of only restricted scrap in paragraph (a)(2) of this section and for 
mercury in paragraph (b)(1) of this section, including any compliance 
options in paragraphs (b)(2) and (3) of this section.
    (1) If you are subject to the requirements for a site-specific plan 
for mercury under paragraph (b)(1) of this section, you must:
    (i) Maintain records of the number of mercury switches removed or 
the weight of mercury recovered from the switches and properly managed, 
the estimated number of vehicles processed, and an estimate of the 
percent of mercury switches recovered; and
    (ii) Submit semiannual reports of the number of mercury switches 
removed or the weight of mercury recovered from the switches and 
properly managed, the estimated number of vehicles processed, an 
estimate of the percent of mercury switches recovered, and 
certification that the recovered mercury switches were recycled at 
RCRA-permitted facilities. The semiannual reports must include a 
certification that you have conducted inspections, site visits, or 
taken other means of corroboration as required under paragraph 
(b)(1)(ii)(C) of this section. You may include this information in the 
semiannual compliance reports required under paragraph (c)(3) of this 
section.
    (2) If you are subject to the option for approved mercury programs 
under paragraph (b)(2) of this section, you must maintain records 
identifying each scrap provider and documenting the scrap provider's 
participation in an approved mercury switch removal program.
    (3) You must submit semiannual compliance reports to the 
Administrator for the control of contaminants from scrap according to 
the requirements in Sec.  63.10(e). The report must clearly identify 
any deviation from the requirements in paragraphs (a) and (b) of this 
section and the corrective action taken. You must identify which 
compliance option in paragraph (b) of this section applies to each 
scrap provider, contract, or shipment.

Sec.  63.10686  What are the requirements for electric arc furnaces and 
ladle metallurgy operations?

    (a) You must install, operate, and maintain a capture system that 
collects the gases and fumes from each EAF (including charging, 
melting, and tapping operations) and ladle metallurgy operation and 
conveys the collected gas stream to a control device for the removal of 
particulate matter (PM).
    (b) Except as provided in paragraph (c) of this section, you must 
not discharge or cause the discharge into the atmosphere from an EAF or 
ladle metallurgy operation any gases which:
    (1) Exit from a control device and contain in excess of 0.0052 
grains of PM per dry standard cubic foot (gr/dscf); and
    (2) Exit from a melt shop and, due solely to the operations of any 
affected EAF(s) or ladle metallurgy operation(s), exhibit 6 percent 
opacity or greater.
    (c) If you own or operate a new or existing affected source that 
produces less than 150,000 tons per year (tpy) of stainless or 
specialty steel, you must not discharge or cause the discharge into the 
atmosphere from an EAF or ladle metallurgy operation any gases which:
    (1) Exit from a control device and contain in excess of 0.8 pounds 
of PM per ton (lb/ton) of steel; and

[[Page 53834]]

    (2) Exit from a melt shop and, due solely to the operations of any 
affected EAF(s) or ladle metallurgy operation(s), exhibit 6 percent 
opacity or greater.
    (d) Except as provided in paragraph (d)(6) of this section, you 
must conduct performance tests to demonstrate initial compliance with 
the applicable emissions limit for each emissions source subject to an 
emissions limit in paragraph (b) or (c) of this section.
    (1) You must conduct each PM performance test for an EAF or ladle 
metallurgy operation according to the procedures in Sec.  63.7 and 40 
CFR 60.275a using the following test methods in 40 CFR part 60, 
appendices A-1, A-2, A-3, and A-4:
    (i) Method 1 or 1A of Appendix A-1 of 40 CFR part 60 to select 
sampling port locations and the number of traverse points in each stack 
or duct. Sampling sites must be located at the outlet of the control 
device (or at the outlet of the emissions source if no control device 
is present) prior to any releases to the atmosphere.
    (ii) Method 2, 2A, 2C, 2D, 2F, or 2G of Appendix A-1 of 40 CFR part 
60 to determine the volumetric flow rate of the stack gas.
    (iii) Method 3, 3A, or 3B of Appendix A-2 of 40 CFR part 60 to 
determine the dry molecular weight of the stack gas. You may use ANSI/
ASME PTC 19.10-1981, ``Flue and Exhaust Gas Analyses (incorporated by 
reference--see Sec.  63.14) as an alternative to EPA Method 3B.
    (iv) Method 4 of Appendix A-3 of 40 CFR part 60 to determine the 
moisture content of the stack gas.
    (v) Method 5 or 5D of Appendix A-3 of 40 CFR part 60 to determine 
the PM concentration. Three valid test runs are needed to comprise a PM 
performance test. For EAF, sample only when metal is being melted and 
refined. For ladle metallurgy operations, sample only when the 
operation(s) are being conducted.
    (2) You must conduct each opacity test for a melt shop according to 
the procedures in Sec.  63.6(h) and Method 9 of Appendix A-4 of 40 CFR 
part 60. When emissions from any EAF or ladle metallurgy operation are 
combined with emissions from emission sources not subject to this 
subpart, you must demonstrate compliance with the melt shop opacity 
limit based on emissions from only the emission sources subject to this 
subpart.
    (3) During any performance test, you must monitor and record the 
information specified in 40 CFR 60.274a(h) for all heats covered by the 
test.
    (4) You must notify, and receive approval from the Administrator 
for procedures that will be used to determine compliance for an EAF or 
ladle metallurgy operation when emissions are combined with those from 
facilities not subject to this subpart.
    (5) To determine compliance with the PM emissions limit in 
paragraph (c) of this section for an EAF or ladle metallurgy operation 
in a lb/ton of steel format, compute the process-weighted mass 
emissions (Ep) for each test run using Equation 1 of this 
section:
[GRAPHIC] [TIFF OMITTED] TP20SE07.000

Where:

Ep = Process-weighted mass emissions of PM, lb/ton;
C = Concentration of PM or total metal HAP, gr/dscf;
Q = Volumetric flow rate of stack gas, dscf/hr;
T = Total time during a test run that a sample is withdrawn from the 
stack during steel production cycle, hr;
P = Total amount of metal produced during the test run, tons; and
K = Conversion factor, 7,000 grains per pound.

    (6) If you own or operate an existing affected source that is 
subject to the emissions limits in paragraph (b) or (c) of this 
section, you may certify initial compliance for one or more emissions 
sources based on the results of a previous performance test for that 
emissions source in lieu of the requirement for an initial performance 
test provided that the test(s) were conducted within 5 years of the 
compliance date using the methods and procedures specified in paragraph 
(d)(1) or (2) of this section; the test(s) were for the affected 
facility; and the test(s) were representative of current or anticipated 
operating processes and conditions. Should the permitting authority 
deem the prior test data unacceptable, the owner or operator must 
conduct an initial performance test within 180 days of the rule 
compliance date.
    (e) You must monitor the capture system and PM control device 
required by this subpart, maintain records, and submit reports 
according to the compliance assurance monitoring requirements in 40 CFR 
part 64. The exemption in 40 CFR 64.2(b)(1)(i) for emissions 
limitations or standards proposed after November 15, 1990 under section 
111 or 112 of the CAA does not apply. In lieu of the deadlines for 
submittal in 40 CFR 64.5, you must submit the monitoring information 
required by 40 CFR 64.4 to the applicable permitting authority for 
approval by no later than the compliance date for your affected source 
for this subpart and operate according to the approved plan by no later 
than 180 days after the date of approval by the permitting authority.

Other Requirements and Information

Sec.  63.10690  What parts of the General Provisions apply to this 
subpart?

    (a) You must comply with the requirements of the NESHAP General 
Provisions (40 CFR part 63, subpart A) as provided in Table 1 of this 
subpart.
    (b) The notification of compliance status required by Sec.  63.9(h) 
must include each applicable certification of compliance, signed by a 
responsible official, in paragraphs (b)(1) through (6) of this section.
    (1) For the pollution prevention plan requirements in Sec.  
63.10685(a)(1): ``This facility has submitted a pollution prevention 
plan for metallic scrap selection and inspection in accordance with 
Sec.  63.10685(a)(1)'';
    (2) For the restrictions on metallic scrap in Sec.  63.10685(a)(2): 
``This facility complies with the requirements for restricted metallic 
scrap in accordance with Sec.  63.10685(a)(2)'';
    (3) For the mercury requirements in Sec.  63.10685(b):
    (i) ``This facility has prepared a site-specific plan for mercury 
switches in accordance with Sec.  63.10685(b)(1)'';
    (ii) ``This facility participates in and purchases motor vehicle 
scrap only from scrap providers who participate in a program for 
removal of mercury switches that has been approved the EPA 
Administrator in accordance with Sec.  63.10685(b)(2)''; or
    (iii) ``The only materials from motor vehicles in the scrap charged 
to an electric arc furnace at this facility are materials recovered for 
their specialty alloy content in accordance with Sec.  63.10685(b)(3) 
which are not reasonably expected to contain mercury switches''.
    (4) This certification of compliance for the capture system 
requirements in Sec.  63.10686(a), signed by a responsible official: 
``This facility operates a capture system for each electric arc furnace 
and ladle metallurgy operation that conveys the collected gas stream to 
a PM control device in accordance with Sec.  63.10686(a)''.
    (5) If applicable, this certification of compliance for the 
performance test requirements in Sec.  63.10686(d)(6): ``This facility 
certifies initial compliance with the applicable emissions limit in 
Sec.  63.10686(a) or (b) based on the results of a previous performance 
test in accordance with Sec.  63.10686(d)(6)''.
    (6) This certification of compliance for the monitoring 
requirements in Sec.  63.10686(e), signed by a responsible

[[Page 53835]]

official: ``This facility has developed and submitted proposed 
monitoring information in accordance with 40 CFR part 64''.

Sec.  63.10691  Who implements and enforces this subpart?

    (a) This subpart can be implemented and enforced by the EPA or a 
delegated authority such as a State, local, or tribal agency. If the 
EPA Administrator has delegated authority to a State, local, or tribal 
agency, then that Agency has the authority to implement and enforce 
this subpart. You should contact your EPA Regional Office to find out 
if this subpart is delegated to your State, local, or tribal agency.
    (b) In delegating implementation and enforcement authority of this 
subpart to a State, local, or tribal agency under 40 CFR part 63, 
subpart E, the authorities contained in paragraph (c) of this section 
are retained by the Administrator and are not transferred to the State, 
local, or tribal agency.
    (c) The authorities that will not be delegated to State, local, or 
tribal agencies are listed in paragraphs (c)(1) through (3) of this 
section.
    (1) Approval of a major change to test methods under Sec.  
63.7(e)(2)(ii) and (f). A ``major change to test method'' is defined in 
40 CFR 63.90.
    (2) Approval of major change to monitoring under 40 CFR 63.8(f). A 
``major change to monitoring'' is defined in 40 CFR 63.90.
    (3) Approval of a major change to recordkeeping/reporting under 40 
CFR 63.10(f). A ``major change to recordkeeping/reporting'' is defined 
in 40 CFR 63.90.

Sec.  63.10692  What definitions apply to this subpart?

    Terms used in this subpart are defined in the Clean Air Act, in 
Sec.  63.2, and in this section as follows:
    Capture system means the equipment (including ducts, hoods, fans, 
dampers, etc.) used to capture or transport particulate matter 
generated by an electric arc furnace or ladle metallurgy operation to 
the air pollution control device.
    Chlorinated plastics means solid polymeric materials that contain 
chlorine in the polymer chain, such as polyvinyl chloride (PVC) and PVC 
copolymers.
    Control device means the air pollution control equipment used to 
remove particulate matter from the effluent gas stream generated by an 
electric arc furnace or ladle metallurgy operation(s).
    Deviation means any instance where an affected source subject to 
this subpart, or an owner or operator of such a source:
    (1) Fails to meet any requirement or obligation established by this 
subpart, including but not limited to any emissions limitation or work 
practice standard;
    (2) Fails to meet any term or condition that is adopted to 
implement an applicable requirement in this subpart and that is 
included in the operating permit for any affected source required to 
obtain such a permit; or
    (3) Fails to meet any emissions limitation in this subpart during 
startup, shutdown, or malfunction, regardless of whether or not such 
failure is permitted by this subpart.
    Electric arc furnace (EAF) means a furnace that produces molten 
steel and heats the charge materials with electric arcs from carbon 
electrodes. An electric arc furnace consists of the furnace shell, 
roof, and the transformer.
    Electric arc furnace (EAF) steelmaking facility means a steel plant 
that produces carbon, alloy, or specialty steels using an EAF. This 
definition excludes EAF steelmaking facilities at steel foundries.
    Free organic liquids means material that fails the paint filter 
test by EPA Method 9095B (incorporated by reference--see 40 CFR 63.14) 
after accounting for water using a moisture determination test by ASTM 
Method D2216-05 or subsequent versions (incorporated by reference-see 
40 CFR 63.14). If, after conducting a moisture determination test, any 
portion of the material passes through and drops from the filter within 
the 5-minute test period, the material contains free organic liquids.
    Ladle metallurgy means a steelmaking process that is performed 
typically in a ladle after initial refining in an electric arc furnace, 
including argon-oxygen decarburization, alloy addition, temperature 
adjustment, and other processes that adjust or amend the chemical and/
or mechanical properties of steel. This definition does not include 
vacuum degassing.
    Leaded steel means steel that must meet a minimum specification for 
lead content (typically 0.25 percent or more) and for which lead is a 
necessary alloy for that grade of steel.
    Mercury switch means each mercury-containing capsule or switch 
assembly that is part of a convenience light switch mechanism installed 
in a vehicle.
    Motor vehicle means an automotive vehicle not operated on rails and 
usually is operated with rubber tires for use on highways.
    Motor vehicle scrap means vehicle or automobile bodies, including 
automobile body hulks, that have been processed through a shredder. 
Motor vehicle scrap does not include automobile manufacturing bundles, 
or miscellaneous vehicle parts, such as wheels, bumpers or other 
components that do not contain mercury switches.
    Scrap provider means the person (including a broker) who contracts 
directly with a steel mill to provide motor vehicle scrap. Scrap 
processors such as shredder operators or vehicle dismantlers that do 
not sell scrap directly to a steel mill are not scrap providers.
    Specialty steel means low carbon and high alloy steel other than 
stainless steel that is processed in an argon-oxygen decarburization 
vessel.
    Stainless steel means low carbon steel that contains at least 10.5 
percent chromium.
    As required in Sec.  63.10691(a), you must comply with the 
requirements of the NESHAP General Provisions (40 CFR part 63, subpart 
A) shown in the following table:

           Table 1 To Subpart YYYYY of Part 63.--Applicability of General Provisions to Subpart YYYYY
----------------------------------------------------------------------------------------------------------------
              Citation                       Subject          Applies to Subpart YYYYY?         Explanation
----------------------------------------------------------------------------------------------------------------
Sec.   63.1(a)(1), (a)(2), (a)(3),   Applicability.........  Yes........................
 (a)(4), (a)(6), (a)(10)-(a)(12),
 (b)(1), (b)(3), (c)(1), (c)(2),
 (c)(5), (e).
Sec.   63.1(a)(5), (a)(7)-(a)(9),    Reserved..............  No.........................
 (b)(2), (c)(3), (c)(4), (d).
Sec.   63.2........................  Definitions...........  Yes........................
Sec.   63.3........................  Units and               Yes........................
                                      Abbreviations.
Sec.   63.4........................  Prohibited Activities   Yes........................
                                      and Circumvention.

[[Page 53836]]

Sec.   63.5........................  Preconstruction Review  Yes........................
                                      and Notification
                                      Requirements.
Sec.   63.6(a), (b)(1)-(b)(5),       Compliance with         Yes........................
 (b)(7), (c)(1), (c)(2), (c)(5),      Standards and
 (e)(1), (e)(3)(i), (e)(3)(iii)-      Maintenance
 (e)(3)(ix), (f), (g), (h)(1),        Requirements.
 (h)(2), (h)(5)-(h)(9), (i), (j).
Sec.   63.6(b)(6), (c)(3), (c)(4),   Reserved..............  No.........................
 (d), (e)(2), (e)(3)(ii), (h)(3),
 (h)(5)(iv).
Sec.   63.7........................  Applicability and       Yes........................
                                      Performance Test
                                      Dates.
Sec.   63.8(a)(1), (a)(2), (b),      Monitoring              Yes........................  Requirements in Sec.
 (c), (d),(e), (f)(1)-(5), (g).       Requirements.                                        63.8(c)(4)(i)-(ii),
                                                                                           (c)(5) and (c)(6),
                                                                                           (d), (e), and (g)
                                                                                           apply if a COMS or
                                                                                           CEMS is used.
Sec.   63.8(a)(3)..................  [Reserved]............  No.........................
Sec.   63.8(a)(4)..................  Additional Monitoring   No.........................
                                      Requirements for
                                      Control Devices in
                                      Sec.   63.11.
Sec.   63.8(c)(4)..................  Continuous Monitoring   Yes........................  Requirements apply if
                                      System Requirements.                                 a COMS or CEMS is
                                                                                           used.
Sec.   63.8(f)(6)..................  RATA Alternative......  Yes........................  Requirements apply if
                                                                                           a CEMS is used.
Sec.   63.9(a), (b)(1), (b)(2),      Notification            Yes........................
 (b)(5), (c), (d), (f), (g), (h)(1)-  Requirements.
 (h)(3), (h)(5), (h)(6), (i), (j).
Sec.   63.9(b)(3), (h)(4)..........  Reserved..............  No.........................
Sec.   63.9(b)(4)..................  ......................  No.........................
Sec.   63.10(a), (b)(1), (b)(2)(i)-  Recordkeeping and       Yes........................  Additional records for
 (v), (b)(2)(xiv), (b)(3), (c)(1),    Reporting                                            CMS in Sec.
 (c)(5)-(c)(8), (c)(10)-(c)(15),      Requirements.                                        63.10(c) (1)-(6), (9)-
 (d), (e)(1)-(e)(4), (e)(4), (f).                                                          (15), and reports in
                                                                                           Sec.   63.10(d)(1)-
                                                                                           (2) apply if a COMS
                                                                                           or CEMS is used.
Sec.   63.10(b)(2)(xiii)...........  CMS Records for RATA    Yes........................  Requirements apply if
                                      Alternative.                                         a CEMS is used.
Sec.   63.10(c)(2)-(c)(4), (c)(9)..  Reserved..............  No.........................
Sec.   63.11.......................  Control Device          No.........................
                                      Requirements.
Sec.   63.12.......................  State Authority and     Yes........................
                                      Delegations.
Sec.   63.13-63.16.................  Addresses,              Yes........................
                                      Incorporations by
                                      Reference,
                                      Availability of
                                      Information,
                                      Performance Track
                                      Provisions.
----------------------------------------------------------------------------------------------------------------

 [FR Doc. E7-18343 Filed 9-19-07; 8:45 am]

BILLING CODE 6560-50-P