DEPARTMENT OF ENVIRONMENTAL QUALITY
Chapter 340
Proposed Rulemaking
STATEMENT OF NEED AND FISCAL AND ECONOMIC IMPACT
This form accompanies a Notice of Proposed Rulemaking
Title of Proposed Rulemaking
| Adoption of Federal Air Quality Regulations
Adopt OARs: 340-228-0601, Applicability 340-228-0609, General Requirements 340-228-0611, Additional Requirements to Provide Heat Input Data 340-228-0613, Monitoring of Hg Mass Emissions and Heat Input at the Unit Level 340-228-0615, Monitoring of Hg Mass Emissions and Heat Input at Common and Multiple Stacks 340-228-0617, Special Provisions for Measuring Hg Mass Emissions using the Sorbent Trap Monitoring Methodology 340-228-0619, Procedures for Hg Mass Emissions 340-228-0621, Initial Certification and Recertification Procedures 340-228-0623, Quality Assurance and Quality Control Requirements 340-228-0625, Specifications and Test Procedures for Total Vapor Phase Mercury CEMS 340-228-0627, Quality Assurance and Operating Procedures for Sorbent Trap Monitoring Systems 340-228-0629, Out of Control Periods and Adjustment for System Bias 340-228-0631, Standard Missing Data Procedures for Hg CEMS 340-228-0633, Missing Data Procedures for Sorbent Trap Monitoring Systems 340-228-0635, Recordkeeping 340-228-0637, Reporting 340-228 Table 1, Missing Data Procedures for Hg CEMS 340-228 Table 2, Quality Assurance/Quality Control Criteria for Sorbent Trap Monitoring Systems 340-230-0335, Standards for Municipal Waste Combustor Fugitive Ash Emissions 340-230-0359, Compliance Schedule 340-244-0232 – 0252, Emission Standards for Gasoline Dispensing Facilities 340-244-0242 Table 4, Management Practices for Gasoline Dispensing Facilities Subject to Stage I Vapor Controls 340-244-0242 Table 4, Management Practices for Gasoline Cargo Tanks Unloading at Gasoline Dispensing Facilities Equipped with Stage I Vapor Controls
Amend OARs: 340-200-0040, State of Oregon Clean Air Act Implementation Plan 340-216-0060, General Air Contaminant Discharge Permits 340-216-0020 Table 1 340-216-0020 Table 2 340-228-0600, Purpose 340-228-0602, Definitions 340-228-0603, Measurements, Abbreviations, and Acronyms 340-228-0606, Hg Emission Standards 340-230-0300 – 0330, Municipal Waste Combustors 340-230-0340 – 0350, Municipal Waste Combustors 340-238-0040 – Definitions 340-238-0060 – Federal Regulations Adopted by Reference 340-238-0090, Delegation 340-242-0520, General Provisions 340-244-0020 – 0030, General Provisions for Stationary Sources 340-244-0100, Compliance Extensions for Early Reductions 340-244-0210 – 0220, Emissions Standards
Delete OARs: 340-228-0604, Applicability 340-228-0605, Retired Unit Exemption 340-228-0608, Computation of Time 340-228-0610, Appeal Procedures 340-228-0612, Authorization and Responsibilities of Hg Designated Representative 340-228-0614, Alternative Hg Designated Representative 340-228-0616, Changing Hg Designated Representative and Alternative Hg Designated Representatives; Changes in Owners and Operators 340-228-0618, Certificate of Representation 340-228-0620, Objections Concerning Hg Designated Representatives 340-228-0622, General Hg Budget Trading Program Permit Requirements 340-228-0624, Submission of Hg Budget Permit Applications 340-228-0626, Information Requirements for Hg Budget Permit Applications 340-228-0628, Hg Budget Permit Contents and Term 340-228-0630, Hg Budget Permit Revisions 340-228-0632, State Trading Budget 340-228-0634, Timing Requirements for Hg Allowance Allocations 340-228-0636, Hg Allowance Allocations 340-228-0638, Establishment of Accounts 340-228-0640 – 0678, Utility Mercury Rule 340-232-0070, Gasoline Dispensing Facilities 340-238-0050, General Provisions 340-244-0110 – 0180, Compliance Extensions for Early Reductions |
Statutory Authority or other Legal Authority
Statutes Implemented
| ORS 468.020 & 468A.310 |
ORS 468A.025 | |
Need for the Rule(s)
| This rulemaking is needed to ensure the maintenance of Oregon’s NESHAP and NSPS program delegations and emission guideline plan approvals from EPA, to respond to court decisions, and to protect public health.
Adopting the new and amended NSPS and NESHAP standards will make Oregon’s rules consistent with EPA’s so that the Department can implement and keep its delegation of these regulations, which benefits industrial sources and the public. Benefits to sources include quicker approval of applicability determination requests and alternative testing, monitoring, recordkeeping and reporting requests. Benefits to the public include allowing the Department to ensure that the required emission reductions are achieved in Oregon. |
Documents Relied Upon for Rulemaking
| DEQ relied primarily on the Federal Register, the Code of Federal Regulations, and the Oregon Revised Statues, in developing this rulemaking proposal. Copies of the documents relied upon in the development of this rulemaking proposal can be reviewed at the Department of Environmental Quality’s office at 811 S.W. 6th Avenue, Portland, Oregon. Please contact Jerry Ebersole for times when the documents are available for review. |
Requests for Other Options | Pursuant to ORS 183.335(2)(b)(G), DEQ requests public comment on whether other options should be considered for achieving the rule’s substantive goals while reducing negative economic impact of the rule on business. |
Fiscal and Economic Impact, Statement of Cost Compliance | |
Overview
| The rules proposed by DEQ consist of several parts: adoption by reference of new area source NESHAPs, adoption of new General Permits to implement the new area source NESHAPs, adoption of standards that implement and go beyond the federal Gasoline Dispensing NESHAP, adoption of standards that implement and go beyond the Emission Guidelines for municipal waste combustors, amendments to the Utility Mercury Rule to address the court vacated mercury cap-and-trade program, and the adoption of other federal air quality regulations.
This discussion of the estimated fiscal and economic impacts depends significantly on assumptions made by DEQ that are listed separately below in the section titled “Assumptions.”
Gasoline Dispensing Facilities (GDF): This rulemaking proposes to require stage I vapor control at moderate and high volume facilities. This would be accomplished by reducing the federal volume trigger for stage I vapor controls from 100,000 gallons per month to 20,000 gallons per month phased-in over a six year period. GDFs currently required to have stage I vapor controls would continue to be required to have stage 1 vapor controls. New and reconstructed GDFs with a monthly throughput of 100,000 gallons or more would be required to have stage I vapor controls upon startup. New and reconstructed GDFs with an average monthly throughput between 20,000 and 100,000 gallons would be required to have stage I vapor controls by December 13, 2009 or upon startup, whichever is later. Existing GDFs with an average monthly throughput of 100,000 gallons or more would be required to have stage I vapor controls by January 10, 2011, as required in the Gasoline Dispensing NESHAP. Existing GDFs with an average monthly throughput between 40,000 and 100,000 gallons would also be required to have stage I vapor controls by January 10, 2011. Existing GDFs with an average monthly throughput between 20,000 and 40,000 gallons would be required to have stage I vapor controls by January 10, 2014. It is estimated that Oregon has between 2,900 and 3,200 GDFs. It is estimated that 620 facilities in Oregon are currently required to have stage I vapor controls.
The federal NESHAP will reduce benzene emissions caused by the filling of gasoline storage and dispensing tanks in Oregon by an estimated 12 tons per year (32%) and VOC emissions by an estimated 680 tons per year (32%), as well as save an estimated 221,000 gallons of gasoline per year (0.016%) statewide. By going beyond the NESHAP, this rulemaking would additionally reduce stage I benzene emissions in Oregon by an estimated 16 tons per year (44%) and VOC emissions by an estimated 930 tons per year (44%), and save an estimated 303,000 gallons of gasoline per year (0.021%) statewide. Combined, the federal NESHAP and the proposed statewide stage I vapor control requirement would reduce stage I benzene emissions in Oregon by an estimated 28 tons per year (76%) and VOC emissions by an estimated 1,610 tons per year (76%), and save an estimated 524,000 gallons of gasoline per year (0.037%) statewide.
The proposed statewide stage I vapor control requirement would directly impact GDFs, many which are small businesses, and indirectly impact the general public if individual GDF owners pass on the cost of stage I vapor controls. If the gasoline terminals or bulk plants saving money from this rule were to pass on their savings to the GDF, it could offset the cost increases and lower the likelihood of changes in gasoline prices in Oregon due to this rule. However, members of the industry informed DEQ that it is unlikely that the gasoline savings will be passed on from the terminal or bulk plant to the individual GDF owners.
Large Municipal Waste Combustors: Oregon has one large municipal waste combustor, owned and operated by Covanta, and located in Brooks. Covanta is outperforming the newly tightened Emission Guidelines by a wide margin for dioxins/furans, cadmium, and lead. This rulemaking proposes to adopt standards that go beyond the federal Emission Guidelines for these pollutants.
DEQ anticipates no negative fiscal and economic impacts as a result of these proposed standards because annual testing over the past ten years has demonstrated that Covanta is meeting the proposed standards on a continual basis.
General Permits: The proposed adoption of the new federal area source NESHAPs would trigger the requirement for affected source to have a Simple ACDP. To minimize the fiscal impact on affected sources, many of which are small businesses, this rulemaking proposes the adoption of several new General ACDPs. To further minimize the fiscal impacts on affected sources, this rulemaking proposes to add two new lower-cost General ACDP categories for sources with limited requirements and where existing Department resources can be leveraged to reduce the cost needed to implement the new standards.
Utility Mercury Rule: On February 8, 2008, the D.C. Circuit Court vacated the federal utility mercury trading program. In response, this rulemaking proposes to remove references to the vacated federal trading rule but to retain the 90% control requirement and the State cap on mercury emissions. This rulemaking also proposed to insert monitoring requirements that were also vacated. The removal of the trading portions of the Utility Mercury Rule (UMR) would not have a negative fiscal or economic impact because the ability to buy and sell mercury credits ended when the D.C. Circuit Court vacated utility mercury trading program. The addition of the monitoring requirements would not have a negative fiscal or economic impact because the monitoring requirements were formerly referenced in the UMR.
Other Federal Air Quality Regulations: DEQ is proposing to match changes in federal law by (1) adopting by reference 17 new federal NESHAPs applicable to non-major or area sources including: hospital sterilizers; steelmaking facilities; iron and steel foundries; gasoline terminals, bulk plants, and pipeline facilities; gasoline dispensing facilities; polyvinyl chloride and copolymers production; copper smelting; nonferrous metals production and processing; acrylic and modacrylic fibers production; carbon black production; chromium compounds production; flexible polyurethane foam fabrication and production; lead acid battery manufacturing; wood preserving; clay ceramics manufacturing; and glass manufacturing, (2) adopting five new federal NSPSs applicable to: synthetic organic chemical manufacturing, petroleum refineries, stationary internal combustion engines, and stationary combustion turbines, (3) updating DEQ’s adoptions by reference of federal NESHAPs and NSPSs, and (4) removing the Boiler and Process Heater NESHAP recently vacated by the courts.
DEQ anticipates that there will be no negative fiscal and economic impacts as a result of these proposed rules because any negative fiscal and economic impacts occurred when the EPA adopted the rules, and because the rules applied in Oregon upon EPA’s adoption. Therefore, if the EQC adopts the proposed rules listed above, which are substantively identical to their federal counterparts, there will be no substantive change to the requirements already applicable in Oregon today. EPA has evaluated the fiscal and economic effects of their rules and lists those effects in the preambles to their regulations. A list of the federal NESHAP and NSPS rules can be found in Attachments E and F, and the EPA regulations themselves can be found by going to EPA’s website http://www.epa.gov/ttn/atw/eparules.html. |
Impacts on the General Public
| Direct Impacts: DEQ does not anticipate any direct fiscal or economic impacts from this proposed rulemaking on the general public.
Indirect Impacts: • Gasoline Dispensing Facilities. DEQ estimates that its proposal may indirectly impact the general public if individual GDF owners pass on the cost of stage I vapor controls (estimated at less than $0.003/gallon). If the gasoline terminals or bulk plants saving money from this rule were to pass on their savings to the GDF, it could offset the cost increases and lower the likelihood of changes in gasoline prices in Oregon due to this rule. However, members of the industry informed DEQ that it is unlikely that the gasoline savings will be passed on from the terminal or bulk plant to the individual GDF owners. • General Permits. The requirement that sources affected by a new federal area source NESHAPs obtain an ACDP permit could indirectly impact the general public if the permit fees are passed on in the form of higher prices for goods and services. • Public Health Benefits. Air pollution creates public health problems that can have negative economic impacts. DEQ anticipates that the proposed rule will reduce air pollution, and as a result, may benefit public health and welfare. It may also reduce public health costs associated with air pollution. |
Impacts to Small Business (50 or fewer employees –ORS183.310(10))
| Direct Impacts: • Gasoline Dispensing Facilities. The proposed statewide stage I vapor control requirement would directly impact GDFs, many which are small businesses. The cost to retrofit an existing tank with stage I vapor controls is estimated to be between $450 and $1,150. The cost to include stage I vapor controls on a new tank is approximately $350. DEQ estimates that going beyond the federal Gasoline Dispensing NESHAP would cost $570,000 per year statewide for all small and large businesses, local governments and agencies that operate GDFs. However, going beyond the federal Gasoline Dispensing NESHAP will save an estimated $1,300,000 per year worth of gasoline. Since the saved gasoline will be recovered at the bulk terminal or bulk plant, the fuel cost savings would not directly benefit facility owners. DEQ estimates the proposed rules would result in an annual expense to facility owners of between $0.001/gallon and $0.003/gallon, with the biggest impact on owners of smaller facilities. • General Permits. The proposed adoption of the new federal area source NESHAPs would directly impact sources, many which are small businesses, because it would trigger the requirement for affected sources to have a Simple or Standard ACDP. To minimize the fiscal impact on affected sources, this rulemaking proposes the adoption of several new General ACDPs. To further minimize the fiscal impacts on affected sources, this rulemaking proposes to add new lower-cost General ACDP categories for sources with limited requirements and where existing Department resources can be leveraged to reduce the cost needed to implement the standards. The proposed cost of these new General ACDPs is $120/year and $360/year. Currently the lowest cost General ACDP is $720/year. The proposed adoption of new General ACDPs would save sources affected by the new federal area source NESHAPs between $3,120 (81%) and $3,720 (97%) per year versus the requirement to have a Simple ACDP, which costs $3,840/year. In addition, this rulemaking proposes to delay the permitting requirement for GDFs until January of 2010. Delayed permitting will allow station owners to apply one year worth of permitting fees to the installation of a vapor balance system(s).
Indirect Impacts: • Gasoline Dispensing Facilities. DEQ estimates that its proposal may indirectly impact the small businesses if individual GDF owners pass on the cost of stage I vapor controls (estimated at less than $0.003/gallon). If the gasoline terminals or bulk plants saving money from this rule were to pass on their savings to the GDF, it could offset the cost increases and lower the likelihood of changes in gasoline prices in Oregon due to this rule. However, members of the industry informed DEQ that it is unlikely that the gasoline savings will be passed on from the terminal or bulk plant to the individual GDF owners. • General Permits. The requirement that sources affected by a new federal area source NESHAPs obtain an ACDP permit could indirectly impact small businesses if the permit fees are passed on in the form of higher prices for goods and services. |
Cost of Compliance on Small Business (50 or fewer employees –ORS183.310(10)) | a) Estimated number of small businesses subject to the proposed rule | Gasoline Dispensing Facilities DEQ estimates that Oregon has between 2,900 and 3,200 GDFs. It is estimated that of these 620 facilities in Oregon are currently required to have stage I vapor controls. General Permits DEQ estimates that 2,300 small businesses in Oregon are potentially affected by the new area source NESHAPs and/or the requirement to have a General ACDP. |
b) Types of businesses and industries with small businesses subject to the proposed rule | Gasoline Dispensing Facilities A GDF is any stationary facility which dispenses gasoline into the fuel tank of a motor vehicle. General Permits The 2,300 small businesses are in the following industries: clay ceramic manufacturing (13); flexible polyurethane foam fabrication and manufacturing (1); glass manufacturing (32); gasoline dispensing (2,200), hospital sterilization (4); iron and steel foundries (19); lead acid battery manufacturing (4); secondary nonferrous metals: (5); polyvinyl chloride production (13); and wood preserving (3). | |
c) Projected reporting, recordkeeping and other administrative activities required by small businesses for compliance with the proposed rule, including costs of professional services | Gasoline Dispensing Facilities: The proposed stage I vapor control requirement would trigger testing, recordkeeping, and reporting requirements for facilities that would not otherwise be required to meet these requirements under the federal Gasoline Dispensing NESHAP. These requirements include leak-rate, cracking pressure and static pressure testing. General Permits: The new General ACDPs will not contain reporting, recordkeeping and other administrative activities other than those already required by the new federal rules. EPA has evaluated the fiscal and economic effects of their rules and lists those effects in the preambles to their regulations. A list of the federal rules can be found in Attachments E and F, and the EPA regulations themselves can be found by going to EPA’s website http://www.epa.gov/ttn/atw/eparules.html. | |
d) The equipment, supplies, labor, and increased administration required by small businesses for compliance with the proposed rule | Gasoline Dispensing Facilities: The cost to retrofit an existing tank with stage I vapor controls is estimated to be between $450 and $1,150. The proposed rule would require initial testing of the stage I vapor controls. The cost to test stage I vapor controls is estimated to be $233 per tank. Many of these facilities have 3 tanks. The cost to retrofit and test 3 tanks is estimated to be between $2,049 and $4,149. The cost to operate and maintain stage I vapor controls for 3 tanks, and to maintain records, is estimated to be between $310 and $545 per year. General Permits: The new General ACDPs will ensure compliance with the new federal rules. EPA has evaluated the fiscal and economic effects of their rules and lists those effects in the preambles to their regulations. A list of the federal rules can be found in Attachments E and F, and the EPA regulations themselves can be found by going to EPA’s website http://www.epa.gov/ttn/atw/eparules.html. | |
e) A description of the manner in which the Department involved small businesses in the development of this rulemaking | Gasoline Dispensing Facilities: DEQ is involving small businesses affected by the proposal to go beyond the Gasoline Dispensing NESHAP through one on one discussion, industry associations, and public meetings. The Small Business Compliance Advisory Panel may also track and advise DEQ on the proposed rules. Industry associations involved in this rulemaking include the Oregon Petroleum Association and the Western States Petroleum Association. General Permits: The Small Business Compliance Advisory Panel has tracked and advised DEQ on the requirement and development of General ACDPs. |
Signed version on file with the Department _________________________________ __________________
Prepared by Printed name Date
_________________________________ _________________________________ __________________
Approved by DEQ Budget Office Printed name Date