Document ID: EPA-HQ-OAR-2008-0708-0533
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2010-08-12T04:00Z

----- Forwarded by Melanie King/RTP/USEPA/US on 08/10/2010 06:51 PM
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  |Melanie King/RTP/USEPA/US                                                                                                                 
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  |"Bromberg, Kevin L." <kevin.bromberg@sba.gov>                                                                                             
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  |"Lee, Amanda I." <Amanda_I._Lee@omb.eop.gov>, "Higgins, Cortney" 
<Cortney_Higgins@omb.eop.gov>, Fred Talcott/DC/USEPA/US@EPA,             |
  |Nancy.Johnson@hq.doe.gov, RobertJ Wayland/RTP/USEPA/US@EPA, 
Stefan.Osborne@trade.gov, "Grahame, Thomas" <Thomas.Grahame@HQ.DOE.GOV>,      
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  |Michael Horowitz/DC/USEPA/US@EPA                                                                                                          
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  |07/26/2010 03:56 PM                                                                                                                       
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  |RE: Cost/Ton   Major Sources and Area Sources RICE                                                                                        
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I separated the estimated reductions out into subcategories.  Could you be 
more specific about where you are looking for cost per ton numbers, because 
for example for MACT floor, we do not consider cost, therefore we do not 
generate cost/ton numbers for the floor.  When we look above the floor, we do 
look at the cost/ton numbers, which I provided already.
So for major sources, we only went above the floor for 4SRB 300-500 HP, and I 
have given you those cost per ton numbers.  Are you mainly interested in the 
numbers for area sources?  I have given you the cost/ton numbers for area 
sources that look at what the cost/ton is for going beyond GACT and having an 
emission limit based on the use of add-on controls.  If we had a limit that 
was based on engine-out emissions without the use of add-on controls, there 
would be no reductions estimated and therefore we would not be able to 
determine a cost/ton.
(See attached file: Existing SI RICE NESHAP Impacts summary
6-24-2010.xls)

Melanie King
Energy Strategies Group
Sector Policies and Programs Division
Office of Air Quality Planning and Standards U.S. Environmental Protection 
Agency

Mail Code D243-01
RTP, NC  27711

Phone:  (919) 541-2469
Fax:       (919) 541-5450
king.melanie@epa.gov

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  |"Bromberg, Kevin L." <kevin.bromberg@sba.gov>                                                                                             
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  |Melanie King/RTP/USEPA/US@EPA                                                                                                             
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  |"Lee, Amanda I." <Amanda_I._Lee@omb.eop.gov>, "Higgins, Cortney" 
<Cortney_Higgins@omb.eop.gov>, Fred Talcott/DC/USEPA/US@EPA,             |
  |<Nancy.Johnson@hq.doe.gov>, RobertJ Wayland/RTP/USEPA/US@EPA, 
<Stefan.Osborne@trade.gov>, "Grahame, Thomas" <Thomas.Grahame@HQ.DOE.GOV>   |
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  |07/26/2010 12:50 PM                                                                                                                       
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  |RE: Cost/Ton   Major Sources and Area Sources RICE                                                                                        
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I've seen this file before.  This does not provide the cost/ton for each 
subcategory.  It does provide the total NOx reductions, for example for area 
sources 300-500 HP  - but not broken into the three relevant
subcategories:  2SLB, 4 SLB and 4SRB.

We would prefer the cost/ton in spreadsheet form.  We could use this before 
tomorrow's call.
Also - it would be nice to have the alternatives presented also - cost/ton 
with and without catalyst.

Thx
Kevin

-----Original Message-----
From: King.Melanie@epamail.epa.gov [mailto:King.Melanie@epamail.epa.gov]

Sent: Monday, July 26, 2010 12:36 PM
To: Bromberg, Kevin L.
Cc: Lee, Amanda I.; Higgins, Cortney; Talcott.Fred@epamail.epa.gov; 
Nancy.Johnson@hq.doe.gov; Wayland.Robertj@epamail.epa.gov; 
Stefan.Osborne@trade.gov; Grahame, Thomas
Subject: RE: Cost/Ton Major Sources and Area Sources RICE

(See attached file: Existing SI RICE NESHAP Impacts 6-24-2010.xls)

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  |"Lee, Amanda I." <Amanda_I._Lee@omb.eop.gov>, "Higgins, Cortney"
<Cortney_Higgins@omb.eop.gov>, Fred Talcott/DC/USEPA/US@EPA,
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  |<Nancy.Johnson@hq.doe.gov>, RobertJ Wayland/RTP/USEPA/US@EPA, 
<Stefan.Osborne@trade.gov>, "Grahame, Thomas"
<Thomas.Grahame@HQ.DOE.GOV>   |

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  |07/26/2010 09:36 AM
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  |RE: Cost/Ton   Major Sources and Area Sources RICE
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I don't see any bolded text below - and we don't need to review what happened 
anymore - we have too much other work that needs to be done.  I do understand 
now that these were cut-off calculations.

We still need the cost/ton data that I've already asked for earlier in any 
event.

Thanks
Kevin

-----Original Message-----
From: King.Melanie@epamail.epa.gov [mailto:King.Melanie@epamail.epa.gov]

Sent: Saturday, July 24, 2010 6:47 PM
To: Bromberg, Kevin L.
Cc: Lee, Amanda I.; Higgins, Cortney; Talcott.Fred@epamail.epa.gov; 
Nancy.Johnson@hq.doe.gov; Wayland.Robertj@epamail.epa.gov; 
Stefan.Osborne@trade.gov; Grahame, Thomas
Subject: RE: Cost/Ton Major Sources and Area Sources RICE

Kevin,
When I emailed the cost/ton spreadsheets to Cortney I explained what the 
numbers in the spreadsheets represented in the email.

It sounded to me from the email that Cortney sent out to you and the other 
folks reviewing the rule that she included the spreadsheets with the breakdown 
of the estimated costs of the rule by HP range.  See bolded text below.  Were 
those spreadsheets not included with her email?

From: Higgins, Cortney [mailto:Cortney_Higgins@omb.eop.gov]
Sent: Monday, July 19, 2010 4:58 PM
To: Bromberg, Kevin L.; 'DOE Reg Mailbox'; 'Johnson, Katrina M.'; 
'Stefan.Osborne@mail.doc.gov'; 'Johnson, Nancy'; Poster, Dianne L.; 'Zwicke, 
Greg - Portland, OR'; 'Grahame, Thomas'; Adamantiades, Mikhail A.; Ferris, Ann 
E.; Miljanich, Peter R.; 'Stefan.Osborne@mail.doc.gov'; Felix Mestey; 
'amelia.samaras@dot.gov'; 'DOT.REGULATIONS@dot.gov'
Cc: Lee, Amanda I.; Goldstein, Blair S.; Schwab, Margo; MacNeil, John S.; 
Mancini, Dominic J.
Subject: For Review: NESHAP --Existing Stationary Spark Ignition Engines
(Gas-Fired)

Hello All,

 Please find attached for EO 12866 review an EPA/OAR Proposed Rule titled 
"National Emission Standards for Hazardous Air Pollutants for Reciprocating 
Internal Combustion Engines--Existing Stationary Spark Ignition (Gas-Fired)."  
This final rule establishes emissions limits for hazardous air pollutants 
(HAP) for smaller (<500 HP) gas-fired engines at both major and area sources, 
such as irrigation pumps and oil pipeline pumps.  The rule is economically 
significant, and the RIA is also attached.  Also attached is an Excel 
worksheet with an estimate of costs and emissions by engine size.

Reminder:  Under the governing EO, this document and its contents are provided 
for review by Federal executive branch agencies only, and should not be 
distributed further.  I'm happy to provide guidance if anyone has questions 
about the EO 12866 process.

This rule has a court-ordered deadline for signature of August 8, 2010 (which 
is a Sunday – it will likely be signed on 8/6/2010).  Please provide comments 
to me by Tuesday, July 27.  If you need more time for review, please let me 
know.  If you have any questions, please call me at 202.395.7856.  I will 
likely be setting up an interagency call for later this week to provide a 
venue for initial questions you have.

Regards,

Cortney

Melanie King
Energy Strategies Group
Sector Policies and Programs Division
Office of Air Quality Planning and Standards U.S. Environmental Protection 
Agency

Mail Code D243-01
RTP, NC  27711

Phone:  (919) 541-2469
Fax:       (919) 541-5450
king.melanie@epa.gov

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  |"Lee, Amanda I." <Amanda_I._Lee@omb.eop.gov>, "Higgins, Cortney"
<Cortney_Higgins@omb.eop.gov>, <Nancy.Johnson@hq.doe.gov>, RobertJ
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  |Wayland/RTP/USEPA/US@EPA, <Stefan.Osborne@trade.gov>, "Grahame, Thomas" 
<Thomas.Grahame@HQ.DOE.GOV>, Fred Talcott/DC/USEPA/US@EPA
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  |07/23/2010 02:05 PM
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  |RE: Cost/Ton   Major Sources and Area Sources RICE
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Thanks for the quick reply  (I just got back in the office this
afternoon) - I certainly had no idea that you were calculating the cost/ton 
figure to evaluate going above the floor for MACT, or examining emission 
controls for area sources from reading the titles.

Regarding the conventional cost/ton calculations that we would normally see, 
could we see the cost/ton for each class of engine, and the incremental 
cost/ton for each engine class as in the final rule, and the incremental 
cost/ton for each engine class for the floor standard vs.
the ATF standard for the 4SRB category?

You may have already shared this with Cortney, but I don't know if she's in 
today.  Could you send to us what you've already sent to Cortney?

Also, I have a few documents requested that are still outstanding - including 
the memo outlining the MACT floor calculations and the guidance for the 
residential, institutional and commercial exclusion from the RICE category.

I know Cortney indicated she wanted to get together this week for some 
questions, and I suggest we plan a time for the near future given our 
schedule.  (But hopefully after the MACT floor document arrives today?)

Thnx,
Kevin

-----Original Message-----
From: King.Melanie@epamail.epa.gov [mailto:King.Melanie@epamail.epa.gov]

Sent: Thursday, July 22, 2010 8:36 PM
To: Bromberg, Kevin L.
Cc: Lee, Amanda I.; Higgins, Cortney; Nancy.Johnson@hq.doe.gov; 
Wayland.Robertj@epamail.epa.gov; Stefan.Osborne@trade.gov; Grahame, Thomas; 
Talcott.Fred@epamail.epa.gov
Subject: Re: Cost/Ton Major Sources and Area Sources RICE

Kevin,
I don't think you are interpreting the information in the spreadsheets 
correctly.  They are not breaking down the costs of the rule into different 
horsepower ranges.  These are the cost/ton numbers that we used when we were 
evaluating whether to go above the floor for major sources and going beyond 
GACT for area sources.  For major sources, what the spreadsheets are showing 
is the cost of going above the MACT floor, we are looking at an above the 
floor option of oxidation catalyst for 2SLB and NSCR for 4SRB.  For 4SLB, we 
already have oxidation catalyst at the floor so we didn't look at a cost for 
going above the floor.  That is why there is no sheet for 4SLB-major.

For area sources, we are looking at the cost of going beyond GACT, which was 
determined to be management practices.  So we are looking at what the cost 
would be if we imposed an emission limit based on emission controls for 
different sizes of engines.

I sent Cortney some other spreadsheets that showed the actual capital and 
annual costs of the rule broken down by the different components, HP ranges, 
and major/area source.  Perhaps you could check with her if she hasn't already 
shared that information with you.

Melanie King
Energy Strategies Group
Sector Policies and Programs Division
Office of Air Quality Planning and Standards U.S. Environmental Protection 
Agency

Mail Code D243-01
RTP, NC  27711

Phone:  (919) 541-2469
Fax:       (919) 541-5450
king.melanie@epa.gov

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  |"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>, RobertJ 
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"Lee,    |
  |Amanda I." <Amanda_I._Lee@omb.eop.gov>, <Nancy.Johnson@hq.doe.gov>, 
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  |07/22/2010 04:53 PM
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  |Cost/Ton   Major Sources and Area Sources RICE
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Thanks for providing the cost/ton excel spreadsheet:

Additional Questions:

1.       Do you have the costs for the 100 HP also – the 4 SRB and 4 SLB
are missing this category (both area and major).

2.      Missing costs for 4 SLB major sources

3.      For 4SRB Major – the NSCR is added at 300 HP (between 300-500
HP)  - why does the cost/ton not go up above 300?  This is the ATF standard – 
NSCR

            100-300 should have no aftertreatment  (Table 2, Draft June
            29 EC/R Impacts Memo)

4.      For 4SRB Area – the NSCR is added at 500 HP – why does the
cost/ton not go up above 500?  This is the ATF standard

5.      For 4SLB Area – the NSCR is added at 500 HP - why does the
cost/ton not go up above 500?

6.       For 4SRB and 4SLB Area – only management standards below 500  -
why are there significant capital costs below 500?

7.      For Major Sources below 100 –only management standards - why are
there significant capital costs below 100?

8.      Can EPA provide the incremental costs  for each category, as
well as these total costs for each category (0-50,  50-100, etc.)?  I think 
such a presentation provides more information than these point estimates 
(single 500 HP engine) convey, particularly the incremental costs – which is 
the more relevant comparison. 

9.      Need copy of June 28 EC/R memo re: Control Costs for Existing
Stationary SI RICE (cited on page 3 of Draft June 29 ECR Impacts Memo)

Also – note the capital costs/engine – don’t seem to jump up (other than 
linearly with size) at the point when NSCR and Oxidation cats are added.

Just my quick observations – I haven’t had the time to thoroughly vet all 
these observations.  Something is wrong with the EPA calculations,
or my interpretations.    Did EPA for example – include the cost for
catalysts, even where EPA is not using the catalysts in the smaller engines?  
That is one possibility.

Or are these tables simply assuming that these engines all have oxidation 
catalysts and NSCRs without regard to the actual final regulation?  In which 
case, we really need the response to #8 – costs for the EPA rule.

      Kevin Bromberg

      Office of Advocacy

      U.S. Small Business Administration

      409 Third Street, SW

      Washington, DC  20416

      Tel: 202-205-6964; Fax: 202-205-6928

      E-mail: kevin.bromberg@sba.gov

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