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 Excepted 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

Amend OARs:

340-216-0060, General Air Contaminant Discharge Permits

340-216 Table 1

340-216 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 – 0060, New Source Performance Standards

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

340-244-0110 – 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 would ensure the maintenance of Oregon’s NESHAP and NSPS program delegations, and emission guideline plan approvals. Would be helpful to spell these abbreviations out initilally so we know what they mean

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.

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.” Good

Gasoline Dispensing Facilities:

This rulemaking proposes to phase in stage I vapor control statewide. This would be accomplished by reducing the federal volume trigger for stage I vapor controls from 100,000 gallons per month to 10,000 gallons per month, requiring that new tanks be equipped with stage I vapor controls, and requiring that any station with stage I vapor controls use those vapor controls. It is estimated that Oregon has 1,870 gasoline dispensing facilities. It is estimated that: 620 facilities in Oregon are currently required to have stage I vapor controls.

By phasing in stage I vapor controls statewide, the proposed rule would reduce benzene emissions in Oregon by an estimated 17 tons per year and VOC emissions by an estimated 989 tons per year. It would also save an estimated 320,000 gallons of gasoline per year.

Jerry, I think the above info is covered later (impacts to small and large businesses) where it is more appropriate. I would not include it in the overview.

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. Good overview

General Permits:

The proposed adoption of the new federal, area source NESHAPs would trigger the requirement for an 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.

This statement is more appropriate in the sections on impacts on small and large businesses, premature to provide this sentence here.

Utility Mercury Rule:

On February 8, 2008, the D.C. Circuit Court vacated CAMR. In response, this rulemaking proposes to remove the trading portions of the UMR but to retain the 90% control requirement and the State cap on mercury emissions. The removal of the trading portions of the UMR will 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 CAMR. Good overview

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: gasoline terminals, bulk plants, and pipeline facilities; hospital sterilizers; glass, clay ceramics, and lead battery manufacturing; metal processing and production; wood preserving; and flexible polyurethane foam fabrication and production, (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 the 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. 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/epahome/rules.html. Need to check this link Jerry, at best it is indirect

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 affect the general public as individual gasoline dispensing facility owners pass on the cost of stage I vapor controls. However, the gasoline savings that would result from the proposed phase-in of stage I vapor controls may result in slightly lower gasoline prices in Oregon.

General Permits

The requirement that sources affected by a new federal area source NESHAPs obtain an ACDP permit could indirectly affect the general public if the permit fees are passed on in the form of higher prices for goods and services.

Impacts to Small Business

(50 or fewer employees –ORS183.310(10))

Direct Impacts:

•  Gasoline Dispensing Facilities. The proposed phase-in of stage I vapor controls statewide would directly affect gasoline dispensing facilities, many which are small businesses. The cost to retrofit an existing tank with stage I vapor controls is between $450 and $1,150. The cost to include stage I vapor controls on a new tank is approximately $350. It is estimated that going beyond the federal Gasoline Dispensing NESHAP would cost an estimated $630,000 per year statewide. However, going beyond the federal Gasoline Dispensing NESHAP will save an estimated $1,200,000 per year worth of gasoline. Since the saved gasoline will be collected back into the tanker truck, the fuel cost savings would not directly benefit facility owners. The proposed rules would result in an annual expense to facility owners of between $0.001/gallon and $0.01/gallon, with the biggest impact on owners of smaller facilities.

•  General Permits. The proposed adoption of the new federal area source NESHAPs would directly affect affected sources, many which are small businesses, because it would trigger the requirement for affected sources to have a Simple 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. The proposed adoption of new General ACDPs would save affected sources between $3,120 (81%) and $3,720 (97%) per year versus the requirement to have a Simple ACDP.

Indirect Impacts:

Gasoline Dispensing Facilities

The proposed phase-in of stage I vapor controls statewide could indirectly affect small businesses in the form of higher gasoline prices. The increase is expected to be less than $0.01/gallon and could be mitigated by the fuel savings that would result from the statewide implementation of stage I vapor controls.

General Permits

The requirement that sources affected by a new federal area source NESHAPs obtain an ACDP permit could indirectly affect 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

It is estimated that Oregon has 1,870 gasoline dispensing facilities. It is estimated that: 620 facilities in Oregon are currently required to have stage I vapor controls.

General Permits

It is estimated that 1382 small business 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

Brief description of who/what these facilities are??

General Permits

The 1382 small businesses are in the following industries: clay ceramic manufacturing (13); flexible polyurethane foam fabrication and manufacturing (1); glass manufacturing (32); gasoline dispensing (1288), 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 phase-in of stage I vapor controls 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

No additional reporting or recordkeeping activities are forseen???

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 between $450 and $1,150. The cost to include stage I vapor controls on a new tank is approximately $350. Many of these facilities have 3 tanks. It is estimated that a facility with 3 tanks would have an annual operation and maintenance cost of $146 per year for the stage I vapor controls.

General Permits

No significant labor or administrative costs are forseen????

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 advisory committee 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.

Impacts on Large Business

(all businesses that are not “small businesses” under ORS183.310(10))

Direct Impacts:

•  Gasoline Dispensing Facilities. The proposed phase-in of stage I vapor controls statewide would directly affect gasoline dispensing facilities, some which are large businesses. The cost to retrofit an existing tank with stage I vapor controls is between $450 and $1,150. The cost to include stage I vapor controls on a new tank is approximately $350. It is estimated that going beyond the federal Gasoline Dispensing NESHAP would cost an estimated $630,000 per year statewide. However, going beyond the federal Gasoline Dispensing NESHAP will save an estimated $1,200,000 per year worth of gasoline. Since the saved gasoline will be collected back into the tanker truck, the fuel cost savings would not directly benefit facility owners. The proposed rules would result in an annual expense to facility owners of between $0.001/gallon and $0.01/gallon, with the biggest impact on owners of smaller facilities rather than large businesses.

•  General Permits. The proposed adoption of the new federal area source NESHAPs would directly affect affected sources, some of which are small businesses, because it would trigger the requirement for affected sources to have a Simple 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 a new lower cost General ACDP category for sources with limited requirements and where existing Department resources can be leveraged to reduce the cost needed to implement the new standards. The proposed cost of this new General ACDP is $360 per year. The proposed adoption of new General ACDPs would save affected sources between $3,120 (81%) and $3,720 (97%) per year versus the requirement to have a Simple ACDP.

Indirect Impacts:

Gasoline Dispensing Facilities

The proposed phase-in of stage I vapor controls statewide could indirectly affect large businesses in the form of higher gasoline prices. The increase is expected to be less than $0.01/gallon and could be mitigated by the fuel savings that would result from the statewide implementation of stage I vapor controls.

General Permits

The requirement that sources affected by a new federal area source NESHAPs obtain an ACDP permit could indirectly affect large businesses if the permit fees are passed on in the form of higher prices for goods and services.

Impacts on Local Government

Direct Impacts:

Gasoline Dispensing Facilities

The proposed phase-in of stage I vapor controls statewide would directly affect gasoline dispensing facilities, some of which are local governments. The cost to retrofit an existing tank with stage I vapor controls is between $450 and $1,150. The cost to include stage I vapor controls on a new tank is approximately $350. It is estimated that going beyond the federal Gasoline Dispensing NESHAP would cost an estimated $630,000 per year statewide. However, going beyond the federal Gasoline Dispensing NESHAP would save an estimated $1,200,000 per year worth of gasoline. Since the saved gasoline will be collected back into the tanker truck, the fuel cost savings will not directly benefit facility owners. The proposed rules would result in an annual expense to facility owners of between $0.001/gallon and $0.01/gallon, with the biggest impact on owners of smaller facilities.

General Permits

?????

Indirect Impacts:

Gasoline Dispensing Facilities

The proposed phase-in of stage I vapor controls statewide could indirectly affect local governments in the form of higher gasoline prices. The increase is expected to be less than $0.01/gallon and could be mitigated by the fuel savings that would result from the statewide implementation of stage I vapor controls.

General Permits

The requirement that sources affected by a new federal area source NESHAPs obtain an ACDP permit could indirectly affect local government if the permit fees are passed on in the form of higher prices for goods and services.

Impacts on State Agencies other than the Department

Direct Impacts:

Gasoline Dispensing Facilities

The proposed phase-in of stage I vapor controls statewide would directly affect gasoline dispensing facilities, some of which are state agencies. The cost to retrofit an existing tank with stage I vapor controls is between $450 and $1,150. The cost to include stage I vapor controls on a new tank is approximately $350. It is estimated that going beyond the federal Gasoline Dispensing NESHAP would cost an estimated $630,000 per year statewide. However, going beyond the federal Gasoline Dispensing NESHAP would save an estimated $1,200,000 per year worth of gasoline. Since the saved gasoline will be collected back into the tanker truck, the fuel cost savings will not directly benefit facility owners. The proposed rules would result in an annual expense to facility owners of between $0.001/gallon and $0.01/gallon, with the biggest impact on owners of smaller facilities.

General Permits

????

Indirect Impacts:

Gasoline Dispensing Facilities

The proposed phase-in of stage I vapor controls statewide could indirectly affect state agencies in the form of higher gasoline prices. The increase is expected to be less than $0.01/gallon and could be mitigated by the fuel savings that would result from the statewide implementation of stage I vapor controls.

General Permits

The requirement that sources affected by a new federal area source NESHAPs obtain an ACDP permit could indirectly affect state agencies if the permit fees are passed on in the form of higher prices for goods and services.

Impacts on the Department

Indirect Impacts:

Gasoline Dispensing Facilities

The proposed phase-in of stage I vapor controls statewide could indirectly affect DEQ in the form of higher gasoline prices. The increase is expected to be less than $0.01/gallon and could be mitigated by the fuel savings that would result from the statewide implementation of stage I vapor controls.

General Permits

The requirement that sources affected by a new federal area source NESHAPs obtain an ACDP permit could indirectly affect DEQ if the permit fees are passed on in the form of higher prices for goods and services.

Assumptions

Gasoline Dispensing Facilities: Assumptions to estimate the impact of the proposal to go beyond the Gasoline Dispensing NESHAP are as follows:

•  The cost to retrofit an existing tank with stage I vapor controls is between $450 and $1,150.

•  The cost to include stage I vapor controls on a new tank is approximately $350.

•  The cost of the retrofits will be financed over the 15-year life of a gasoline storage tank at an interest rate of 7%.

•  The operation & maintenance, testing, recordkeeping, and reporting costs will average $400 per year for the average GDF.

•  The average GDF has 3 gasoline storage tanks.

•  The average cost of a gallon of regular unleaded gasoline in Oregon is $3.837.

•  Stage I vapor controls reduce gasoline emissions by 4.9 pounds of VOC per thousand gallons of gasoline loaded.

•  Oregon has 1,870 GDFs.

•  620 GDFs facilities in Oregon are currently required to have stage I vapor controls.

•  Of the remaining 1,250 GDFs, 120 will be required to install stage I vapor controls under the federal NESHAP and the remaining facilities would be required to install stage I vapor controls if the proposed phase-in of stage I vapor controls statewide is adopted.

Housing Costs

Gasoline Dispensing Facilities:

DEQ has determined that the proposed rulemaking may have a negative effect, in the form of slightly higher gasoline prices, on the cost of development of a 6,000 square foot parcel and the construction of a 1,200 square foot detached single family dwelling on that parcel. The possible impact appears to be minimal because DEQ has estimated the maximum possible increased cost of gasoline at $0.01/gallon. However, DEQ cannot quantify this impact because the available information on the possible impacts of increased gasoline costs on the cost of development of a 6,000 square foot parcel and the construction of a 1,200 square foot detached single family dwelling on that parcel is not adequate to form a reasonable estimate, and any such estimate would be speculation. A minimal amount of gasoline is needed to construct a house and DEQ did not find information on the cost of gasoline to develop a parcel. DEQ notes that the increased gasoline cost could be mitigated by the fuel savings that would result from the statewide implementation of stage I vapor controls.

General Permits:

DEQ has determined that this proposed rulemaking may have a negative effect, in the form of slightly higher prices for goods and services, on the cost of development of a 6,000 square foot parcel and the construction of a 1,200 square foot detached single family dwelling on that parcel. However, DEQ cannot quantify this impact because the information available to DEQ on the possible impacts of increased cost of goods and services on the cost of development of a 6,000 square foot parcel and the construction of a 1,200 square foot detached single family dwelling on that parcel is not adequate to form a reasonable estimate, and any such estimate would be speculation.

Other Federal Air Quality Regulations:

DEQ estimates that the “other federal air quality regulations” would not significantly effect on the development of a 6,000 square foot parcel or the construction of a 1,200 square foot detached single family dwelling on that parcel.

Administrative Rule Advisory Committee

The standing Small Business Compliance Advisory Committee has been and will be utilized during this rulemaking. The purpose of addressing this committee is to present DEQ’s implementation strategy for the new area source NESHAPs and receive the committee’s input and/or recommendations. DEQ has and will meet with business associations in regard to the proposal to go beyond the Gasoline Dispensing NESHAP. DEQ will also convene a Fiscal Impact Advisory Committee for this rulemaking.