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National Emission Standards for Hazardous Air Pollutants: Plywood and Composite Wood Products; Effluent Limitations Guidelines and Standards for the Timber Products Point Source Category; List of Hazardous Air Pollutants, Lesser Quantity Designations, Source Category List

 [Federal Register: July 30, 2004 (Volume 69, Number 146)]
[Rules and Regulations]               
[Page 45943-45992]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30jy04-30]
[[Page 45944]]

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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Parts 63 and 429
[OAR-2003-0048, FRL-7634-1]
RIN 2060-AG52
 
National Emission Standards for Hazardous Air Pollutants: Plywood 
and Composite Wood Products; Effluent Limitations Guidelines and 
Standards for the Timber Products Point Source Category; List of 
Hazardous Air Pollutants, Lesser Quantity Designations, Source Category 
List

AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.

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SUMMARY: This action promulgates national emission standards for 
hazardous air pollutants (NESHAP) for the plywood and composite wood 
products (PCWP) source category under the Clean Air Act (CAA) and 
revisions to the effluent limitations, guidelines and standards for the 
timber products processing source category under the Clean Water Act (CWA).
    The EPA has determined that the PCWP source category contains major 
sources of hazardous air pollutants (HAP), including, but not limited 
to, acetaldehyde, acrolein, formaldehyde, methanol, phenol, and 
propionaldehyde. These HAP are associated with a variety of adverse 
health effects. These adverse health effects include chronic health 
disorders (e.g., damage to nasal membranes, gastrointestinal 
irritation) and acute health disorders (e.g., irritation of eyes, 
throat, and mucous membranes, dizziness, headache, and nausea). Three 
of the six primary HAP emitted have been classified as probable or 
possible human carcinogens. This action will implement section 112(d) 
of the CAA by requiring all major sources subject to the final rule to 
meet HAP emission standards reflecting the application of the maximum 
achievable control technology (MACT). The final rule will reduce HAP 
emissions from the PCWP source category by approximately 5,900 to 9,900 
megagrams per year (Mg/yr) (6,600 to 11,000 tons per year (tons/yr)). 
In addition, the final rule will reduce emissions of volatile organic 
compounds (VOC) by 13,000 to 25,000 Mg/yr (14,000 to 27,000 tons/yr).
    The EPA is also amending the effluent limitations, guidelines and 
standards for the timber products processing point source category 
(veneer, plywood, dry process hardboard, particleboard manufacturing 
subcategories). The amendments adjust the definition of process 
wastewater to exclude certain sources of wastewater generated by air 
pollution control devices expected to be installed to comply with the 
final PCWP NESHAP.
    The EPA is also amending the list of categories that was developed 
pursuant to section 112(c)(1) of the CAA. The EPA is delisting a low-
risk subcategory of the PCWP source category. This action is being 
taken in part to respond to comments submitted by the American Forest & 
Paper Association (AF&PA) and in part upon the Administrator's own 
motion, pursuant to section 112(c)(9) of the CAA. This action is based 
on EPA's evaluation of the available information concerning the 
potential hazards from exposure to HAP emitted by PCWP affected 
sources, and includes a detailed rationale for removing low-risk PCWP 
affected sources from the source category list.

DATES: The final NESHAP and the amendments to the effluent guidelines 
are effective September 28, 2004. The incorporation by reference of 
certain publications listed in the final NESHAP is approved by the 
director of the Office of the Federal Register as of September 28, 2004.

ADDRESSES: Docket numbers OAR-2003-0048 and A-98-44, containing 
supporting documentation used in development of this action, are 
available for public viewing at the EPA Docket Center (Air Docket), EPA 
West, Room B-108, 1301 Constitution Avenue, NW., Washington, DC 20460. 
These dockets also contain documentation supporting the amendments to 
40 CFR part 429.

FOR FURTHER INFORMATION CONTACT: For further information concerning 
applicability and rule determinations, contact the appropriate State or 
local agency representative. If no State or local representative is 
available, contact the EPA Regional Office staff listed in 40 CFR 
63.13. For information concerning the analyses performed in developing 
the final rule, contact Ms. Mary Tom Kissell, Waste and Chemical 
Processes Group, Emission Standards Division (C439-03), U.S. EPA, 
Research Triangle Park, North Carolina 27711, telephone number (919) 
541-4516, electronic mail (e-mail) address kissell.mary@epa.gov. For 
information concerning test methods, sampling, and monitoring 
information, contact Mr. Gary McAlister, Source Measurement Analysis 
Group, Emission Monitoring and Analysis Division (D243-02), U.S. EPA, 
Research Triangle Park, North Carolina 27711, telephone number (919) 
541-1062, e-mail address mcalister.gary@epa.gov. For information 
concerning the economic impacts and benefit analysis, contact Mr. Larry 
Sorrels, Innovative Strategies and Economics Group, Air Quality 
Strategies and Standards Division (C339-01), U.S. EPA, Research 
Triangle Park, North Carolina 27711, telephone number (919) 541-5041, 
e-mail address sorrels.larry@epa.gov. For information concerning the 
effluent guidelines, contact Mr. Donald Anderson, Engineering and 
Analysis Division (4303T), U.S. EPA, 1200 Pennsylvania Avenue, NW., 
Washington, DC 20460, telephone number (202) 566-1021, 
anderson.donaldf@epa.gov.

SUPPLEMENTARY INFORMATION: Regulated Entities. Categories and entities 
potentially regulated by this action include:

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                                                                SIC code    NAICS       Examples of regulated
               Category                          Rule               a      code b             entities
----------------------------------------------------------------------------------------------------------------
Industry.............................  NESHAP.................      2421    321999  Sawmills with lumber kilns.
                                                                    2435    321211  Hardwood plywood and veneer
                                                                                     plants.
                                                                    2436    321212  Softwood plywood and veneer
                                                                                     plants.
                                                                    2493    321219  Reconstituted wood products
                                                                                     (particleboard, medium
                                                                                     density fiberboard,
                                                                                     hardboard, fiberboard, and
                                                                                     oriented strandboard
                                                                                     plants).
                                                                    2439    321213  Structural Wood Members, Not
                                                                                     Elsewhere Classified
                                                                                     (engineered wood products
                                                                                     plants).
Effluent Guidelines..................  .......................      2436    321212  Softwood plywood and veneer
                                                                                     plants.
                                                                    2493    321219  Reconstituted wood products
                                                                                     (particleboard, medium
                                                                                     density fiberboard,
                                                                                     hardboard, fiberboard, and
                                                                                     oriented strandboard
                                                                                     plants).
----------------------------------------------------------------------------------------------------------------
\a\ Standard Industrial Classification.
\b\ North American Industrial Classification System.

[[Page 45945]]

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. To determine whether your facility is regulated by this action, 
you should examine the applicability criteria in Sec.  63.2231 of the 
final rule. If you have any questions regarding the applicability of 
this action to a particular entity, consult the person listed in the 
preceding FOR FURTHER INFORMATION CONTACT section.
    Docket. The EPA has established an official public docket for this 
action including both Docket ID No. OAR-2003-0048 and Docket ID No. A-
98-44. The official public docket consists of the documents 
specifically referenced in this action, any public comments received, 
and other information related to this action. All items may not be 
listed under both docket numbers, so interested parties should inspect 
both docket numbers to ensure that they have received all materials 
relevant to this rule. Although a part of the official docket, the 
public docket does not include Confidential Business Information or 
other information whose disclosure is restricted by statute. The 
official public docket is available for public viewing at the EPA 
Docket Center (Air Docket), EPA West, Room B-102, 1301 Constitution 
Avenue, NW., Washington, DC. The EPA Docket Center 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.
    Electronic Access. You may access this Federal Register document 
electronically through the EPA Internet under the Federal Register 
listings at http://www.epa.gov/fedrgstr/ You may also access a copy 
of this document through the Technology Transfer Network (TTN) at http://
www.epa.gov/ttn/atw/plypart/plywoodpg.html. An electronic version of 
the public docket is available through EPA's electronic public docket 
and comment system, EPA Dockets. You may use EPA Dockets at http://
www.epa.gov/edocket/ to view public comments, access the index listing 
of the contents of the official public docket, and access those 
documents in the public docket that are available electronically. 
Although not all docket materials may be available electronically, you 
may still access any of the publicly available docket materials through 
the docket facility identified above. Once in the system, select 
``search,'' then key in the appropriate docket identification number.
    Judicial Review. Under section 307(b)(1) of the CAA, judicial 
review of the standards and limitations of the final rule is available 
only by filing a petition for review in the U.S. Court of Appeals for 
the District of Columbia Circuit by September 28, 2004. Under section 
307(d)(7)(B) of the CAA, only an objection to the final rule that was 
raised with reasonable specificity during the period for public comment 
can be raised during judicial review. Under section 509(b)(1) of the 
CWA, judicial review of today's effluent limitations guidelines and 
standards is available in the United States Court of Appeals by filing 
a petition for review within 120 days from the date of promulgation of 
those guidelines and standards. In accordance with 40 CFR 23.2, the 
water portion of today's final rule shall be considered promulgated for 
the purposes of judicial review at 1 p.m. Eastern time on August 13, 
2004. Moreover, under section 307(b)(2) of the CAA and section 
509(b)(2) of the CWA, the requirements established by the final rule 
may not be challenged separately in any civil or criminal proceedings 
brought by EPA to enforce the requirements.
    Outline. The information presented in this preamble is organized as 
follows:

I. Introduction
    A. What Is the Source of Authority for Development of Today's 
Regulations?
    B. What Criteria Are Used in the Development of NESHAP?
    C. How Was the Final Rule Developed?
    D. What Are the Health Effects of the Pollutants Emitted From 
the PCWP Industry?
    E. Incorporation by Reference of NCASI Test Methods
    F. Incorporation by Reference of ASTM Test Method

II. Summary of the Final Rule

    A. What Process Units Are Subject to the Final Rule?
    B. What Pollutants Are Regulated by the Final Rule?
    C. What Are the Compliance Options?
    D. What Operating Requirements Are in the Final Rule?
    E. What Are the Work Practice Requirements?
    F. When Must I Comply With the Final Rule?
    G. How Do I Demonstrate Initial Compliance With the Final Rule?
    H. How do I Demonstrate Continuous Compliance With the Final Rule?
    I. How Do I Demonstrate That My Affected Source Is Part of the 
Low-risk Subcategory?

III. Summary of Environmental, Energy, and Economic Impacts

    A. How Many Facilities Are Impacted by the Final Rule?
    B. What Are the Air Quality Impacts?
    C. What Are the Water Quality Impacts?
    D. What Are the Solid Waste Impacts?
    E. What Are the Energy Impacts?
    F. What Are the Cost Impacts?
    G. What Are the Economic Impacts?
    H. What Are the Social Costs and Benefits?

IV. Summary of Responses to Major Comments and Changes to the 
Plywood and Composite Wood Products NESHAP

    A. Applicability
    B. Overlap With Other Rules
    C. Amendments to the Effluent Guidelines for Timber Products Processing
    D. Existing Source MACT
    E. New Source MACT
    F. Definition of Control Device
    G. Compliance Options
    H. Testing and Monitoring Requirements
    I. Routine Control Device Maintenance Exemption (RCDME)
    J. Startup, Shutdown, and Malfunction (SSM)
    K. Risk-Based Approaches

V. Statutory and Executive Order Reviews

    A. Executive Order 12866: Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Analysis
    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 & Safety Risks
    H. Executive Order 13211: Actions That Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act
    J. Congressional Review Act

I. Introduction

A. What Is the Source of Authority for Development of Today's Regulations?

    Section 112(c) of the CAA requires us to list categories and 
subcategories of major sources and area sources of HAP and to establish 
NESHAP for the listed source categories and subcategories. The PCWP 
source category was originally listed as the plywood and particleboard 
source category on July 16, 1992 (57 FR 31576). The name of the source 
category was changed to plywood and composite wood products on November 
18, 1999 (64 FR 63025), to more accurately reflect the types of 
manufacturing facilities covered by the source category. In addition, 
when we proposed the PCWP rule on January 9, 2003 (68 FR 1276), we 
broadened the scope of the source category to include lumber kilns 
located at stand-alone kiln-dried lumber manufacturing facilities or at 
any other type of facility. Major sources of HAP are those that have 
the potential to emit 9.1 Mg/yr (10 tons/yr) or more of any one HAP or 
22.3 Mg/yr (25 tons/yr) or more of any combination of HAP.
    Section 112(d) of the CAA directs us to adopt emission standards for

[[Page 45946]]

categories and subcategories of HAP sources. In cases where emission 
standards are not feasible, section 112(h) of the CAA allows us to 
develop design, equipment, work practice, and/or operational standards. 
The collection of compliance options, operating requirements, and work 
practice requirements in today's final rule make up the emission 
standards and work practice standards for the PCWP NESHAP.
    We are promulgating the amendments to 40 CFR part 429 under the 
authority of sections 301, 304, 306, 307, 308, 402, and 501 of the CWA.
    Section 112(c)(9) of the CAA allows us to delete categories and 
subcategories from the list of HAP sources to be subject to MACT 
standards under section 112(d) of the CAA, if certain substantive 
criteria are met. (The EPA construes this authority to apply to listed 
subcategories because doing so is logical in the context of the general 
regulatory scheme established by the statute, and is reasonable since 
section 112(c)(9)(B)(ii) expressly refers to subcategories.) To delete 
a category or subcategory the Administrator must make an initial 
demonstration that no source in the category or subcategory: (1) Emits 
carcinogens in amounts that may result in a lifetime cancer risk 
exceeding one in a million to the individual most exposed; (2) emits 
noncarcinogens in amounts that exceed a level which is adequate to 
provide an ample margin of safety to protect public health; and (3) 
emits any HAP or combination of HAP in amounts that will result in an 
adverse environmental effect, as defined by section 112(a)(7) of the CAA.

B. What Criteria Are Used in the Development of NESHAP?

    Section 112(d)(1) of the CAA requires that we establish NESHAP for 
the control of HAP from both new and existing major sources. Section 
112(d)(2) of the CAA requires the NESHAP to reflect the maximum degree 
of reduction in emissions of HAP that is achievable. This level of 
control is commonly referred to as the MACT.
    The MACT floor is the minimum control level allowed for NESHAP and 
is defined under section 112(d)(3) of the CAA. In essence, the MACT 
floor ensures that the standard is set at a level that ensures that all 
major sources achieve a level of control at least as stringent as that 
already achieved by the better-controlled and lower-emitting sources in 
each source category or subcategory. For new sources, the MACT floor 
cannot be less stringent than the emission control that is achieved in 
practice by the best-controlled similar source. 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 (or the best-performing 5 sources for 
categories or subcategories with fewer than 30 sources).
    In developing MACT under section 112(d)(2) of the CAA, we must also 
consider any control options that are more stringent than the floor. We 
may establish standards more stringent than the floor based on the 
consideration of cost of achieving the emissions reductions, any non-
air quality health and environmental impacts, and energy requirements.

C. How Was the Final Rule Developed?

    We proposed standards for PCWP on January 9, 2003 (68 FR 1276). The 
preamble for the proposed standards described the rationale for the 
proposed standards. Public comments were solicited at the time of 
proposal. The public comment period lasted from January 9, 2003, to 
March 10, 2003. Industry representatives, regulatory agencies, 
environmental groups, and the general public were given the opportunity 
to comment on the proposed rule and to provide additional information 
during the public comment period. We also offered at proposal the 
opportunity for a public hearing concerning the proposed rule, but no 
hearing was requested. We met with stakeholders on several occasions.
    We received a total of 57 public comment letters on the proposed 
rule during the comment period. Comments were submitted by industry 
trade associations, PCWP companies, State regulatory agencies, local 
government agencies, and environmental groups. Today's final rule 
reflects our consideration of all of the comments received during the 
comment period. Major public comments on the proposed rule, along with 
our responses to those comments, are summarized in this preamble.

D. What Are the Health Effects of the Pollutants Emitted From the PCWP 
Industry?

    The final rule protects air quality and promotes the public health 
by reducing emissions of some of the HAP listed in section 112(b)(1) of 
the CAA. The organic HAP from PCWP process units that have been 
detected in one or more emission tests include acetaldehyde, 
acetophenone, acrolein, benzene, biphenyl, bromomethane, carbon 
disulfide, carbon tetrachloride, chloroform, chloroethane, 
chloromethane, cresols, cumene, ethyl benzene, formaldehyde, 
hydroquinone methanol, methylene chloride, methylene diphenyl 
diisocyanate (MDI), methyl ethyl ketone (MEK), methyl isobutyl ketone 
(MIBK), n-hexane, phenol, propionaldehyde, styrene, toluene, xylenes, 
1,1,1-trichloroethane, bis-(2-ethylhexyl phthalate), 4-methyl-2-
pentanone, and di-n-butyl phthalate. Many of these HAP are rarely 
detected and occur infrequently. The predominant organic HAP emitted 
(i.e., those most likely to be emitted in detectable quantities and 
with high mass relative to other HAP) by PCWP facilities include 
acetaldehyde, acrolein, formaldehyde, methanol, phenol, and 
propionaldehyde. Exposure to these compounds has been demonstrated to 
cause adverse health effects when present in concentrations higher than 
those typically found in ambient air. This section discusses the health 
effects associated with the predominant HAP emitted by the PCWP 
industry, as well as the health effects of the HAP contributing the 
most to cancer and noncancer risks associated with these PCWP 
facilities (organic HAP and some metal HAP) that must be included in 
any demonstration of eligibility for the low-risk subcategory of PCWP 
sources.
    We do not have the necessary data on each PCWP facility and the 
people living around each facility to determine the actual population 
exposures to the HAP emitted from these facilities and the potential 
health effects. Our screening assessment, conducted using health-
protective assumptions, indicates that potential noncancer health 
impacts were negligible to target organ systems other than the central 
nervous and respiratory systems. Furthermore, only acrolein and 
formaldehyde showed the potential for acute exposures of any concern. 
Therefore, noncancer effects other than those effecting the central 
nervous or respiratory systems are not expected to occur prior to or 
after regulation, and are provided below only to illustrate the nature 
of the contaminant's effects at high dose. However, to the extent the 
adverse effects do occur, today's final rule would reduce emissions by 
sources subject to the standards and subsequent exposures to such emissions.
1. Acetaldehyde
    Acetaldehyde is ubiquitous in the environment and may be formed in 
the body from the breakdown of ethanol (ethyl alcohol). In humans, 
symptoms of chronic (long-term) exposure to

[[Page 45947]]

acetaldehyde resemble those of alcoholism. Long-term inhalation 
exposure studies in animals reported effects on the nasal epithelium 
and mucous membranes, growth retardation, and increased kidney weight. 
We have classified acetaldehyde as a probable human carcinogen (Group 
B2) based on animal studies that have shown nasal tumors in rats and 
laryngeal tumors in hamsters.
2. Acrolein
    Acute (short-term) inhalation exposure to acrolein may result in 
upper respiratory tract irritation and congestion. The major effects 
from chronic (long-term) inhalation exposure to acrolein in humans 
consist of general respiratory congestion and eye, nose, and throat 
irritation. Acrolein is a strong dermal irritant in humans. We consider 
acrolein to be a possible human carcinogen (Group C) based on limited 
animal cancer data suggesting an increased incidence of tumors in rats 
exposed to acrolein in the drinking water.
3. Formaldehyde
    Both acute (short-term) and chronic (long-term) exposure to 
formaldehyde irritates the eyes, nose, and throat. Limited human 
studies have reported an association between formaldehyde exposure and 
lung and nasopharyngeal cancer. Animal inhalation studies have reported 
an increased incidence of nasal squamous cell cancer. We consider 
formaldehyde a probable human carcinogen (Group B2).
4. Methanol
    Chronic (long-term) exposure of humans to methanol by inhalation or 
ingestion may result in blurred vision, headache, dizziness, and 
nausea. No information is available on the reproductive, developmental, 
or carcinogenic effects of methanol in humans. Birth defects have been 
observed in the offspring of rats and mice exposed to high 
concentrations of methanol by inhalation. A methanol inhalation study 
using rhesus monkeys reported a decrease in the length of pregnancy and 
limited evidence of impaired learning ability in offspring. We have not 
classified methanol with respect to carcinogenicity.
5. Phenol
    Oral exposure to small amounts of phenol may cause irregular 
breathing and muscular weakness. Anorexia, progressive weight loss, 
diarrhea, vertigo, salivation, and a dark coloration of the urine have 
been reported in chronically (long-term) exposed humans. 
Gastrointestinal irritation and blood and liver effects have also been 
reported. No studies of developmental or reproductive effects of phenol 
in humans are available, but animal studies have reported reduced fetal 
body weights, growth retardation, and abnormal development in the 
offspring of animals exposed to relatively high doses of phenol by the 
oral route. We have classified phenol in Group D, not classifiable as 
to human carcinogenicity.
6. Propionaldehyde
    Animal studies have reported that inhalation exposure to high 
levels of propionaldehyde results in anesthesia and liver damage. No 
information is available on the chronic (long-term), reproductive, 
developmental, or carcinogenic effects of propionaldehyde in animals or 
humans. We have not classified propionaldehyde for carcinogenicity.
7. Arsenic
    Chronic (long-term) inhalation exposure to inorganic arsenic in 
humans is associated with irritation of the skin and mucous membranes. 
Human data suggest a relationship between inhalation exposure of women 
working at or living near metal smelters and an increased risk of 
reproductive effects. Inorganic arsenic exposure in humans by the 
inhalation route has been shown to be strongly associated with lung 
cancer. We have classified inorganic arsenic as a Group A, human carcinogen.
8. Beryllium
    Chronic (long-term) inhalation exposure of humans to beryllium has 
been reported to cause chronic beryllium disease (berylliosis), in 
which granulomatous (noncancerous) lesions develop in the lung. 
Inhalation exposure to beryllium has been demonstrated to cause lung 
cancer in rats and monkeys. Human studies are limited, but suggest a 
causal relationship between beryllium exposure and an increased risk of 
lung cancer. We have classified beryllium as a Group B1, probable human 
carcinogen, when inhaled; data are inadequate to determine whether 
beryllium is carcinogenic when ingested.
9. Cadmium
    Chronic (long-term) inhalation or oral exposure to cadmium leads to 
a build-up of cadmium in the kidneys that can cause kidney disease. 
Cadmium has been shown to be a developmental toxicant at high doses in 
animals, resulting in fetal malformations and other effects, but no 
conclusive evidence exists in humans. Animal studies have demonstrated 
an increase in lung cancer from long-term inhalation exposure to 
cadmium. We have classified cadmium as a Group B1, probable human 
carcinogen when inhaled; data are inadequate to determine whether 
cadmium is carcinogenic when ingested.
10. Chromium
    Chromium may be emitted from PCWP facilities in two forms, 
trivalent chromium (chromium III) or hexavalent chromium (chromium VI). 
The respiratory tract is the major target organ for chromium VI 
toxicity. Bronchitis, decreased pulmonary function, pneumonia, and 
other respiratory effects have been noted from chronic high 
concentration exposure. Limited human studies suggest that chromium VI 
inhalation exposure may be associated with complications during 
pregnancy and childbirth, while animal studies have not reported 
reproductive effects from inhalation exposure to chromium VI. Human and 
animal studies have clearly established that inhaled chromium VI is a 
carcinogen, resulting in an increased risk of lung cancer. We have 
classified chromium VI as a Group A, human carcinogen by the inhalation 
exposure route.
    Chromium III is much less toxic than chromium VI. The respiratory 
tract is also the major target organ for chromium III toxicity, similar 
to chromium VI. Chromium III is an essential element in humans, with a 
daily oral intake of 50 to 200 micrograms per day ([mu]g/d) recommended 
for an adult. Data on adverse effects of high oral exposures of 
chromium III are not available for humans, but a study with mice 
suggests possible damage to the male reproductive tract. We have not 
classified chromium III for carcinogenicity.
11. Manganese
    Health effects in humans have been associated with both 
deficiencies and excess intakes of manganese. Chronic (long-term) 
exposure to low levels of manganese in the diet is considered to be 
nutritionally essential in humans, with a recommended daily allowance 
of 2 to 5 milligrams per day (mg/d). Chronic inhalation exposure to 
high levels of manganese by inhalation in humans results primarily in 
central nervous system (CNS) effects. Visual reaction time, hand 
steadiness, and eye-hand coordination were affected in chronically-
exposed workers. Impotence and loss of libido have been noted in male 
workers afflicted with manganism

[[Page 45948]]

attributed to high-dose inhalation exposures. We have classified 
manganese as Group D, not classifiable as to human carcinogenicity.
12. Nickel
    Nickel is an essential element in some animal species, and it has 
been suggested it may be essential for human nutrition. Nickel 
dermatitis, consisting of itching of the fingers, hands, and forearms, 
is the most common effect in humans from chronic (long-term) skin 
contact with nickel. Respiratory effects have also been reported in 
humans from inhalation exposure to nickel. No information is available 
regarding the reproductive or developmental effects of nickel in 
humans, but animal studies have reported such effects, although a 
consistent dose-response relationship has not been seen. The forms of 
nickel which might be emitted from PCWP facilities include soluble 
nickel, nickel subsulfide, and nickel carbonyl. We have classified 
nickel refinery dust and nickel subsulfide as Group A, human 
carcinogens, and nickel carbonyl as a Group B2, probable human 
carcinogen, by inhalation exposure. Human and animal studies have 
reported an increased risk of lung and nasal cancers from exposure to 
nickel refinery dusts and nickel subsulfide. Animal inhalation studies 
of soluble nickel compounds (i.e., nickel carbonyl) have reported lung 
tumors.
13. Lead
    Elemental lead may cause a variety of effects at low oral or 
inhaled dose levels. Chronic (long-term) exposure to high levels of 
lead in humans results in effects on the blood, CNS, blood pressure, 
and kidneys. Children are particularly sensitive to the chronic effects 
of lead, with slowed cognitive development, reduced growth, and other 
effects reported. Reproductive effects, such as decreased sperm count 
in men and spontaneous abortions in women, have been associated with 
lead exposure. The developing fetus is at particular risk from maternal 
lead exposure, with low birth weight and slowed postnatal 
neurobehavioral development noted. Human studies are inconclusive 
regarding lead exposure and cancer, while animal studies have reported 
an increase in kidney cancer from lead exposure by the oral route. We 
have classified lead as a Group B2, probable human carcinogen.
14. MDI
    The MDI has been observed to irritate the skin and eyes of rabbits. 
Chronic (long-term) inhalation exposure to MDI may cause asthma, 
dyspnea, and other respiratory impairments in workers. We have 
classified MDI within Group D, not classifiable as to human carcinogenicity.
15. Benzene
    Chronic (long-term) inhalation exposure has caused various 
disorders in the blood, including reduced numbers of red blood cells. 
Increased incidence of leukemia (cancer of the tissues that form white 
blood cells) has been observed in humans occupationally exposed to 
benzene. We have classified benzene as a Group A, known human carcinogen.

E. Incorporation by Reference of NCASI Test Methods

    Today's final rule amends 40 CFR 63.14 by revising paragraph (f) to 
incorporate by reference two test methods developed by the National 
Council of the Paper Industry for Air and Stream Improvement (NCASI): 
(1) Method CI/WP-98.01, ``Chilled Impinger Method for Use at Wood 
Products Mills to Measure Formaldehyde, Methanol, and Phenol'; and (2) 
NCASI Method IM/CAN/WP-99.02, ``Impinger/Canister Source Sampling 
Method for Selected HAPs and Other Compounds at Wood Products 
Facilities.'' These methods are available from NCASI, Methods Manual, 
P.O. Box 133318, Research Triangle Park, NC 27709-3318 or at http://
www.ncasi.org. Exit Disclaimer They are also available from the docket for the 
final rule (Docket Number OAR-2003-0048 and Docket Number A-98-44). These 
documents were approved for incorporation by reference by the Director 
of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR 
part 51.

F. Incorporation by Reference of ASTM Test Method

    Today's final rule amends 40 CFR 63.14 by adding paragraph (b)(54) 
to incorporate by reference a test method developed by the American 
Society for Testing and Materials (ASTM), ASTM D6348-03, ``Standard 
Test Method for Determination of Gaseous Compounds by Extractive Direct 
Interface Fourier Transform Infrared (FTIR) Spectroscopy.'' This test 
method is available from ASTM, 100 Barr Harbor Drive, Post Office Box 
C700, West Conshohocken, PA 19428-2959; or ProQuest, 300 North Zeeb 
Road, Ann Arbor, MI 48106. This document has been approved for 
incorporation by reference by the Director of the Federal Register in 
accordance with 5 U.S.C. 552(a) and 1 CFR 51.

II. Summary of the Final Rule

A. What Process Units Are Subject to the Final Rule?

    The final rule regulates HAP emissions from PCWP facilities that 
are major sources. Plywood and composite wood products are manufactured 
by bonding wood material (fibers, particles, strands, etc.) or 
agricultural fiber, generally with resin under heat and pressure, to 
form a structural panel or engineered wood product. Plywood and 
composite wood products manufacturing facilities also include 
facilities that manufacture dry veneer and lumber kilns located at any 
facility. Plywood and composite wood products include (but are not 
limited to) plywood, veneer, particleboard, oriented strandboard, 
hardboard, fiberboard, medium density fiberboard, laminated strand 
lumber, laminated veneer lumber, wood I-joists, kiln-dried lumber, and 
glue-laminated beams. Table 1 of this preamble lists the process units 
at PCWP facilities and indicates which process units are subject to the 
control requirements in today's final rule. ``Process unit'' means 
equipment classified according to its function such as a blender, 
dryer, press, former, or board cooler.
    The affected source for the final rule is the combination of all 
PCWP manufacturing operations, including PCWP process units, onsite 
storage of raw materials, onsite wastewater treatment operations 
associated with PCWP manufacturing, and miscellaneous coating 
operations located at a major source facility. One of the implications 
of this definition of affected source is that the control requirements, 
or ``floor,'' as defined in section 112(d)(3), are determined for the 
entire PCWP facility. Therefore, except for lumber kilns not otherwise 
located at PCWP facilities, the final rule contains the control 
requirements that represent the MACT level of control for the entire 
facility. For lumber kilns not otherwise located at PCWP facilities, 
the final rule contains the control requirements that represent the 
MACT level of control only for lumber kilns.

[[Page 45949]]

      Table 1.--Process Units That Are Subject to the Final Control
                              Requirements
------------------------------------------------------------------------
                                      Does today's final rule include
                                      control requirements for . . .
 For the following process units ---------------------------------------
              . . .                Existing affected     New affected
                                       sources?            sources?
------------------------------------------------------------------------
Softwood veneer dryers a;         Yes.                Yes.
 primary tube dryers; secondary
 tube dryers; rotary strand
 dryers; conveyor strand dryers;
 green rotary dryers; hardboard
 ovens; reconstituted wood
 product presses; and
 pressurized refiners.
Press predryers; fiberboard mat   No.                 Yes.
 dryers; and board coolers.
Dry rotary dryers a; veneer       No.                 No.
 redryers a; softwood plywood
 presses; hardwood plywood
 presses; engineered wood
 products presses; hardwood
 veneer dryers a; humidifiers;
 atmospheric refiners; formers;
 blenders; rotary agricultural
 fiber dryers; agricultural
 fiber board presses; sanders;
 saws; fiber washers; chippers;
 log vats; lumber kilns; storage
 tanks; wastewater operations;
 miscellaneous coating
 operations (including group 1
 miscellaneous coating
 operations a); and stand-alone
 digesters.
------------------------------------------------------------------------
a These process units have work practice requirements in today's final
  rule in addition to or instead of control requirements. Group 1
  miscellaneous coating operations include application of edge seals,
  nail lines, logo (or other information) paint, shelving edge fillers,
  trademark/grade-stamp inks, and wood putty patches to PCWP (except
  kiln-dried lumber) on the same site where the PCWP are manufactured.
  Group 1 miscellaneous coating operations also include application of
  synthetic patches to plywood at new affected sources.

B. What Pollutants Are Regulated by the Final Rule?

    The final rule regulates HAP emissions from PCWP facilities. For 
the purpose of compliance with 40 CFR part 63, subpart DDDD, we defined 
``total HAP'' to be the sum of the emissions of six primary HAP emitted 
from PCWP manufacturing. The six HAP that define total HAP make up 96 
percent of the nationwide HAP emissions from PCWP facilities and are 
acetaldehyde, acrolein, formaldehyde, methanol, phenol, and 
propionaldehyde. Other HAP are sometimes emitted and controlled along 
with these six HAP, but in lower quantities. Depending upon which of 
the compliance alternatives you choose, you could be required to 
measure emissions of total HAP, total hydrocarbon (THC), methanol, or 
formaldehyde as surrogates for measuring all HAP. For the purpose of 
determining whether your facility is a major source, you would have to 
include all HAP as prescribed by rules and guidance pertaining to 
determination of major source.

C. What Are the Compliance Options?

    Today's final rule includes a range of compliance options, which 
are summarized in the following subsections. You must use one of the 
compliance options to show compliance with the final rule. In most 
cases, the compliance options are the same for new and existing 
sources. Dilution to achieve compliance is prohibited, as specified in 
40 CFR 63.4.
1. Production-Based Compliance Options
    Today's final rule includes production-based compliance options 
(PBCO), which are based on total HAP and vary according to type of 
process unit. Total HAP emissions are defined in today's final rule as 
the total mass emissions of the following six HAP: acetaldehyde, 
acrolein, formaldehyde, methanol, phenol, and propionaldehyde. The PBCO 
are in units of mass of pollutant per unit of production. Add-on 
control systems may not be used to meet the production-based compliance 
options. For pressurized refiners and most dryers, the PBCO are 
expressed as pounds per oven-dried-ton of wood (lb/ODT). For presses, 
hardboard ovens, and some dryers, the PBCO are expressed as pounds per 
thousand square feet of board (lb/MSF), with a reference board 
thickness. There is no PBCO for conveyor strand dryers.
2. Add-On Control System Compliance Options
    If you operate a process unit equipped with an add-on control 
system, you may use any one of the following six compliance options. 
``Add-on control system'' or ``control system'' means the combination 
of capture and control devices used to reduce HAP emissions to the 
atmosphere.
    (1) Reduce THC emissions (as carbon, and minus methane if you wish 
to subtract methane) by 90 percent.
    (2) Reduce methanol emissions by 90 percent.
    (3) Reduce formaldehyde emissions by 90 percent.
    (4) Limit the concentration of THC (as carbon, and minus methane if 
you wish to subtract methane) in the outlet of the add-on control 
system to 20 parts per million by volume, dry basis (ppmvd).
    (5) Limit the concentration of methanol in the exhaust from the 
add-on control system to 1 ppmvd (can be used only if the concentration 
of methanol entering the control device is greater than or equal to 10 
ppmvd).
    (6) Limit the concentration of formaldehyde in the exhaust from the 
add-on control system to 1 ppmvd (can be used only if the concentration 
of formaldehyde entering the control device is greater than or equal to 
10 ppmvd).
    In the first three options ((1) through (3)), the 90 percent 
control efficiency represents a total control efficiency. Total control 
efficiency is defined as the product of the capture efficiency and the 
control device efficiency. For process units such as rotary strand 
dryers, capture efficiency is not an issue because the rotary strand 
dryer has a single exhaust point which is easily captured by the 
control device. However, for presses and board coolers, the HAP 
emissions cannot be completely captured without installing an 
enclosure. If the enclosure meets the criteria for a wood products 
enclosure as defined in Sec.  63.2292 in today's final rule, then you 
would assign the enclosure a capture efficiency of 100 percent. You 
must test other enclosures to determine capture efficiency using EPA 
Test Methods 204 and 204A through 204F (as appropriate) found in 40 CFR 
part 51, appendix M, or the alternative tracer gas procedure in 
appendix A to today's final rule. For the three concentration options 
((4) through (6)), you must have an enclosure that either meets the 
criteria for a wood products enclosure or achieves a capture efficiency 
greater than or equal to 95 percent.
    The six compliance options are equivalent ways to express the HAP 
control levels that represent the MACT floor. Because the compliance 
options are equivalent for controlling HAP emissions, you are required 
to meet only

[[Page 45950]]

one of the six compliance options for add-on control systems. However, 
you must designate in your permit which one of the six options you have 
selected for the affected process unit. If you plan to operate a given 
process unit under different conditions, you may incorporate multiple 
compliance options for the add-on control system into your permit, as 
long as each separate operating condition is identified along with the 
compliance option that corresponds to that operating condition.
3. Emissions Averaging Compliance Option
    Emissions averaging is a means of achieving the required emissions 
reductions in a less costly way. Therefore, if you operate an existing 
affected source, for each process unit you could choose to comply with 
the emissions averaging provisions instead of the production-based 
compliance options or add-on control system compliance options.
    Emissions averaging is a system of debits and credits in which the 
credits must equal or exceed the debits. ``Debit-generating process 
units'' are the PCWP process units that are required to meet the 
control requirements but that you choose to either not control or 
under-control. ``Credit-generating process units'' are the PCWP process 
units that you choose to control that are not required to be controlled 
under the standards. When determining your actual mass removal (AMR) of 
HAP, you may include partial credits generated from debit-generating 
process units that are under-controlled (e.g., you may receive credit 
for 25 percent control of a debit-generating process unit). Control 
devices used for credit-generating process units may not be assigned 
more than 90 percent control efficiency.
    Under the emissions averaging provisions, you would determine the 
required mass removal (RMR) of total HAP from debit-generating process 
units for a 6-month compliance period. Total HAP is defined in today's 
final rule to include acetaldehyde, acrolein, formaldehyde, methanol, 
phenol, and propionaldehyde. The RMR would be based on initial total 
HAP measurements for each debit-generating process unit, your process 
unit operating hours for a 6-month period, and the required 90 percent 
control system efficiency. One hundred percent of the RMR for debit-
generating process units would have to be achieved or exceeded by the 
AMR of total HAP achieved by credit-generating process units. The AMR 
is determined based on initial performance tests, the total HAP removal 
efficiency (not to exceed 90 percent) of the control systems used to 
control the credit-generating process units, and your process unit 
operating hours over the 6-month period.
    There are some restrictions on use of the emissions averaging 
provisions in today's final rule. You must limit emissions averaging to 
the process units located within your affected source. Emissions 
averaging may not be used at new affected sources. You may not include 
in an emissions average those process units that are not operating or 
that are shut down. Only PCWP process units using add-on control 
systems may be used to generate credits.

D. What Operating Requirements Are in the Final Rule?

    The operating requirements in today's final rule apply to add-on 
control systems used to comply with the final rule and to process units 
meeting the final production-based compliance options or emissions 
averaging provisions without an add-on control device (e.g., debit-
generating process units). For incineration-based control devices and 
biofilters, the final rule specifies that you must either monitor 
operating parameters or use a THC continuous emission monitoring system 
(CEMS) to demonstrate continuous compliance. The final operating 
requirements are summarized below:
    ? If you operate a thermal oxidizer, such as a regenerative 
thermal oxidizer (RTO), you must maintain the firebox temperature at a 
level that is greater than or equal to the minimum temperature 
established during the performance test. If you operate a combustion 
unit that accepts process exhaust into the flame zone, you are exempt 
from the testing and monitoring requirements described above for 
thermal oxidizers.
    ? If you operate a catalytic oxidizer, such as a 
regenerative catalytic oxidizer (RCO) or thermal catalytic oxidizer 
(TCO), you must maintain the average catalytic oxidizer temperature at 
or above the minimum temperature established during the performance 
test. You must also check the activity level of a representative sample 
of the catalyst at least every 12 months.
    ? If you operate a biofilter, you must maintain the average 
biofilter bed temperature within the range you develop during the 
initial performance test or during qualifying previous performance 
tests using the required test methods. If you use values from previous 
performance tests to establish the operating parameter ranges, you must 
certify that the biofilter and associated process unit(s) have not been 
modified subsequent to the date of the performance tests.
    ? If you operate an add-on control system not listed in 
today's final rule, you must establish operating parameters to be 
monitored and parameter values that represent your operating 
requirements during the performance test, subject to prior written 
approval by the Administrator.
    ? If you operate a process unit that meets the production-
based compliance options or a process unit that generates debits in an 
emissions average without an add-on control device, you must maintain 
on a daily basis the process unit controlling operating parameter(s) 
within the ranges established during the performance test corresponding 
to the representative operating conditions identified during the 
performance test.
    ? As an alternative to monitoring the operating parameters 
specified above for thermal oxidizers, catalytic oxidizers, biofilters, 
other control devices, and process units that meet compliance options 
without add-on control systems, you may monitor THC concentration in 
the outlet stack with a THC CEMS. If you select this option, you must 
maintain the outlet THC concentration below the maximum concentration 
established during the performance test. You may choose to subtract 
methane from the THC concentration measured by the CEMS if you wish to 
do so.

E. What Are the Work Practice Requirements?

    The work practice requirements in today's final rule apply to 
softwood veneer dryers, dry rotary dryers, veneer redryers, hardwood 
veneer dryers, and group 1 miscellaneous coating operations. For 
softwood veneer dryers, the work practice requirements require you to 
minimize fugitive emissions from the veneer dryer doors (by applying 
appropriate operation and maintenance procedures) and from the green 
end of the dryers (through proper balancing of hot zone exhausts). For 
group 1 miscellaneous coating operations, the work practice 
requirements specify that you must use a non-HAP coating. The work 
practice requirements also specify parameters that you must monitor to 
demonstrate that each dry rotary dryer, veneer redryer, and hardwood 
veneer dryer continuously operates in a manner consistent with the 
definitions of these process units provided in today's final rule, as 
follows:
    ? If you operate a dry rotary dryer, you must maintain the 
inlet dryer temperature at or below 600[deg]F and maintain the moisture 
content of the wood particles entering the dryer at or below 30 weight 
percent, on a dry basis.

[[Page 45951]]

    ? If you operate a veneer redryer, you must maintain the 
moisture content of the wood veneer entering the dryer at or below 25 
percent, by weight.
    ? If you operate a hardwood veneer dryer, you must process 
less than 30 percent, by volume, softwood species each year.

F. When Must I Comply With the Final Rule?

    Existing PCWP facilities must comply within 3 years of September 
28, 2004. New sources that commence construction after January 9, 2003, 
must comply immediately upon initial startup or on September 28, 2004, 
whichever is later.
    Existing sources that wish to be included in the delisted low-risk 
subcategory must receive EPA approval of their eligibility 
demonstrations no later than 3 years after September 28, 2004, or be in 
compliance with the final rule. New sources that wish to be included in 
the delisted low-risk subcategory must receive EPA approval of their 
eligibility demonstrations no later than initial startup or on 
September 28, 2004, which ever is later, or be in compliance with the 
final rule.

G. How Do I Demonstrate Initial Compliance With the Final Rule?

    The initial compliance requirements in today's final rule vary with 
the different compliance options.
1. Production-Based Compliance Options
    If you are complying with the PBCO in today's final rule, you must 
conduct an initial performance test using specified test methods to 
demonstrate initial compliance. You must test the efficiency of your 
emissions capture device during the initial performance test if the 
process unit is a press or board cooler. The actual emission rate of 
the press or board cooler is equivalent to the measured emissions 
divided by the capture efficiency. You must test prior to any wet 
control device operated on the process unit. During the performance 
test, you must identify the process unit controlling parameter(s) that 
affect total HAP emissions; these parameters must coincide with the 
representative operating conditions you describe in the performance 
test. For each parameter, you must specify appropriate monitoring 
methods and monitoring frequencies, and for continuously monitored 
parameters, you must specify averaging times not to exceed 24 hours. 
You must install process monitoring equipment or establish 
recordkeeping procedures to be used to demonstrate compliance with the 
operating requirements for the parameters you select. During the 
initial performance test, you must use the process monitoring equipment 
or recordkeeping procedures to establish the parameter value (e.g., 
maximum, minimum, average, or range, as appropriate) that represents 
your operating requirement for the process unit. Alternatively, you may 
install a THC CEMS and monitor the process unit outlet THC 
concentration and establish your THC operating requirement during the 
performance test.
2. Add-On Control System Compliance Options
    If you use the compliance options for add-on control systems, you 
must conduct an initial performance test using specified test methods 
to demonstrate initial compliance. With the exception of the 20 ppmvd 
THC concentration option, you must test at both the inlet and the 
outlet of the HAP control device. For HAP-altering controls in 
sequence, such as a wet control device followed by a thermal oxidizer, 
you must test at the functional inlet of the control sequence (e.g., 
prior to the wet control device) and at the outlet of the control 
sequence (e.g., thermal oxidizer outlet). If you use a wet control 
device as the sole means of reducing HAP emissions, you must develop 
and implement a plan to address how organic HAP captured in the 
wastewater from the wet control device is contained or destroyed to 
minimize re-release to the atmosphere such that the desired emission 
reduction is obtained. If you use any of the six compliance options for 
add-on control systems, and the process unit is a press or a board 
cooler without a wood products enclosure, you must also test the 
capture efficiency of your partial wood products enclosure. Prior to 
the initial performance test, you must install control device parameter 
monitoring equipment or THC CEMS to be used to demonstrate compliance 
with the operating requirements for add-on control systems in today's 
final rule. During the initial performance test, you must use the 
control device parameter monitoring equipment or THC CEMS to establish 
the parameter values that represent your operating requirements for the 
control systems. If your add-on control system is preceded by a 
particulate control device (e.g., baghouse or wet electrostatic 
precipitators (WESP)), you must establish operating parameter values 
for the HAP control system and not for the particulate control device. 
If your control device is a biofilter, then you may use values recorded 
during previous performance tests for the biofilter to establish your 
operating requirements as long as you were in compliance with the 
emission limits in today's final rule when the data were collected, the 
test data were obtained using the test methods in today's final rule, 
and no modifications were made to the process unit or biofilter 
subsequent to the date of the performance tests.
3. Emissions Averaging Compliance Option
    If you elect to comply with the emissions averaging compliance 
option in today's final rule, you must submit an Emissions Averaging 
Plan (EAP) to the Administrator for approval. The EAP must describe the 
process units you are including in the emissions average. The plan also 
must specify which process units will be credit-generating units 
(including under-controlled, debit-generating process units that also 
generate credits) and which process units will be debit-generating 
units. The EAP must also include descriptions of the control systems 
used to generate emission credits, documentation of the total HAP 
measurements made to determine the RMR, calculations and supporting 
documentation to demonstrate that the AMR will be greater than or equal 
to the RMR, and a summary of the operating parameters that will be 
monitored.
    Following approval of your EAP, you must conduct performance tests 
to determine the total HAP emissions from all process units included in 
the EAP. The credit-generating process units must be equipped with add-
on control systems; therefore, for those process units, you must follow 
the procedures for demonstrating initial compliance as outlined above 
for add-on control systems. For debit-generating process units without 
air pollution control devices (APCD), you must follow the same 
procedure for establishing your operating requirements as outlined 
above for process units meeting the PBCO. The emissions averaging 
provisions require you to conduct all total HAP measurements and 
performance test(s) when the process units are operating under 
representative operating conditions. Today's final rule defines 
``representative operating conditions'' as those conditions under which 
the process unit will typically be operating following the compliance 
date. Representative conditions include such things as using a 
representative range of materials (e.g., wood material of a typical 
species mix and moisture content, typical resin formulations) and

[[Page 45952]]

operating the process unit at typical operating temperature ranges.
4. Work Practice Requirements
    The work practice requirements in today's final rule do not require 
you to conduct any initial performance tests. To demonstrate initial 
compliance with the work practice requirements for dry rotary dryers, 
you must install parameter monitoring devices to continuously monitor 
the dryer inlet operating temperature and the moisture content (dry 
basis) of the wood furnish (i.e., wood fibers, particles, or strands 
used for making board) entering the dryer. You must then use the 
parameter monitoring devices to continuously monitor and record the 
dryer temperature and wood furnish moisture content for a minimum of 30 
days. If the monitoring data indicate that during the minimum 30-day 
demonstration period, your dry rotary dryer continuously processed wood 
furnish with an inlet moisture content less than or equal to 30 
percent, and the dryer was continuously operated at an inlet dryer 
temperature less than or equal to 600[deg]F, then your dryer meets the 
definition of a dry rotary dryer in today's final rule. You must submit 
the monitoring data as part of your notification of compliance status 
report.
    To demonstrate initial compliance with the work practice 
requirements for hardwood veneer dryers, you must calculate the 
annualized percentage of softwood veneer processed in the dryer by 
volume, using veneer dryer production records for the 12-month period 
prior to the compliance date. If the total annual percentage by volume 
of softwood veneer is less than 30 percent, your veneer dryer meets the 
definition of hardwood veneer dryer. You must then submit a summary of 
the production data for the 12-month period and a statement verifying 
that the veneer dryer will continue to process less than 30 percent 
softwoods as part of your notification of compliance status report.
    To demonstrate initial compliance with the work practice 
requirements for softwood veneer dryers, you must develop a plan for 
minimizing fugitive emissions from the veneer dryer green end and 
heated zones. You must submit the plan with your notification of 
compliance status report.
    To demonstrate initial compliance with the work practice 
requirements for veneer redryers, you must install a device that can be 
used to continuously monitor the moisture content (dry basis) of veneer 
entering the dryer. You must then use the moisture monitoring device to 
continuously monitor and record the inlet moisture content of the 
veneer for a minimum of 30 days. If the monitoring data indicate that 
your veneer dryer continuously processed veneer with a moisture content 
less than or equal to 25 percent during the minimum 30-day 
demonstration period, then your veneer dryer meets the definition of a 
veneer redryer in today's final rule. You must submit the monitoring 
data as part of your notification of compliance status report.
    To demonstrate initial compliance with the work practice 
requirement for group 1 miscellaneous coating operations, you must 
submit a signed statement with your notification of compliance status 
report stating that you are using non-HAP coatings. You must also have 
a record (e.g., material safety data sheets) showing that you are using 
non-HAP coatings as defined in today's final rule.

H. How Do I Demonstrate Continuous Compliance With the Final Rule?

    The continuous compliance requirements in today's final rule vary 
with the different types of compliance options.
1. Production-Based Compliance Options
    If you comply with the PBCO, then you must monitor and/or record 
the controlling operating parameter(s) identified as affecting total 
HAP emissions from the process unit(s) in the performance test. For 
each parameter, you must use the monitoring methods, monitoring 
frequencies, and averaging times (for continuously monitored parameters 
not to exceed 24 hours) specified in your performance test and 
Notification of Compliance Status. For each operating parameter, you 
must maintain on a daily basis the parameter at or above the minimum, 
at or below the maximum, or within the range (whichever applies) 
established during the performance test.
    Instead of monitoring process operating parameters, you may operate 
a CEMS for monitoring THC concentration to demonstrate compliance with 
the operating requirements in today's final rule. If you choose to 
operate a THC CEMS in lieu of a continuous parameter monitoring systems 
(CPMS), you must demonstrate continuous compliance, as described in the 
following subsection.
2. Add-On Control System Compliance Options
    For add-on control systems, you must install a CPMS to monitor the 
temperature or install a CEMS to monitor THC concentration to 
demonstrate compliance with the operating requirements in today's final 
rule. If you operate a CPMS, you must have at least 75 percent of the 
required recorded readings for each 3-hour or 24-hour block averaging 
period to calculate the data averages. You must operate the CPMS at all 
times the process unit is operating. You must also conduct proper 
maintenance of the CPMS and maintain an inventory of necessary parts 
for routine repairs of the CPMS. Using the data collected with the 
CPMS, you must calculate and record the average values of each 
operating parameter according to the specified averaging times.
    For thermal oxidizers, you must continuously maintain the 3-hour 
block average firebox temperature at or above the minimum temperature 
established during the performance test. For catalytic oxidizers, you 
must continuously maintain the 3-hour block average catalytic oxidizer 
temperature at or above the minimum value established during the 
performance test. You must also check the activity level of a 
representative sample of the catalyst at least every 12 months and take 
any necessary corrective action to ensure that the catalyst is 
performing within its design range.
    For biofilters, you must continuously maintain the 24-hour block 
average biofilter bed temperature within the operating range you 
establish during the performance test. You must also conduct a repeat 
performance test using the applicable method(s) within 2 years 
following the previous performance test and within 180 days after each 
replacement of any portion of the biofilter bed with a different media 
or each replacement of more than 50 percent (by volume) of the 
biofilter bed media with the same type of media.
    If you choose to operate a CEMS for monitoring THC concentration 
instead of operating a CPMS, you must install, operate, and maintain 
the CEMS according to Performance Specification 8 in 40 CFR part 60, 
appendix B. You must also comply with the CEMS data quality assurance 
requirements in Procedure 1 of appendix F of 40 CFR part 60. You must 
conduct a performance evaluation of the CEMS according to 40 CFR 63.8 
and Performance Specification 8. The CEMS must complete a minimum of 
one cycle of operation (sampling, analyzing, and data recording) for 
each successive 15-minute period. Using the data collected with the 
CEMS, you must calculate and record the 3-hour block average THC 
concentration for thermal or catalytic oxidizers. For biofilters, you 
must calculate and record the 24-hour block

[[Page 45953]]

average THC concentration. You must continuously monitor and maintain 
the 24-hour block average THC concentration at or below the maximum 
established during the performance test. You may use a CEMS that 
subtracts methane from the measured THC concentration if you wish to do so.
    If you comply with today's final rule using an add-on control 
system, you may request a routine control device maintenance exemption 
from the Administrator. Your request for a routine control device 
maintenance exemption must document the need for routine maintenance on 
the control device and the time required to accomplish the maintenance, 
describe the maintenance activities and the frequency of these 
activities, explain why the maintenance cannot be accomplished during 
process shutdowns, describe how you plan to make reasonable efforts to 
minimize emissions during these maintenance activities, and provide any 
other documentation required by the Administrator. If your request for 
the routine control device maintenance exemption is approved by the 
Administrator, it must be incorporated into your title V permit. The 
compliance options and operating requirements would not apply during 
times when control device maintenance covered under your approved 
routine control device maintenance exemption is performed. The routine 
control device maintenance exemption may not exceed 3 percent of annual 
operating uptime for each green rotary dryer, tube dryer, rotary strand 
dryer, or pressurized refiner controlled. The routine control device 
maintenance exemption is limited to 0.5 percent of the annual operating 
uptime for each softwood veneer dryer, reconstituted wood product 
press, reconstituted wood product board cooler, hardboard oven, press 
predryer, conveyor strand dryer, or fiberboard mat dryer controlled. If 
your control device is used to control a combination of equipment with 
different downtime allowances (e.g., a tube dryer and a press), then 
the highest (i.e., 3 percent) downtime allowance applies.
3. Emissions Averaging Compliance Option
    To demonstrate continuous compliance with the emissions averaging 
provisions, you must continuously comply with the applicable operating 
requirements for add-on control systems (described in the previous 
subsection). You also must maintain records of your operating hours for 
each process unit included in the EAP. For each semiannual compliance 
period, you must demonstrate that the AMR equals or exceeds the RMR 
using your initial (or most recent) total HAP measurements for debit-
generating units, initial (or most recent) performance test results for 
credit-generating units, and the operating hours recorded for the 
semiannual compliance period.
4. Work Practice Requirements
    To demonstrate continuous compliance with the work practice 
requirements for dry rotary dryers and veneer redryers, you must 
operate all dry rotary dryers and veneer redryers so that they 
continuously meet the definitions of these process units in today's 
final rule. For dry rotary dryers, you must continuously monitor and 
maintain the inlet furnish moisture content at or below 30 percent and 
the inlet dryer operating temperature at or below 600[deg]F. You must 
also calibrate the moisture monitor based on the procedures specified 
by the moisture monitor manufacturer at least once per semiannual 
compliance period to verify the readings from the moisture meter. For 
veneer redryers, you must continuously monitor and maintain the inlet 
veneer moisture content at or below 25 percent.
    To demonstrate continuous compliance with the work practice 
requirements for softwood veneer dryers, you must follow the procedures 
in your operating plan for minimizing fugitive emissions from the green 
end and heated zones of the veneer dryer and maintain records 
documenting that you have followed your plan. For hardwood veneer 
dryers, you must continue to process less than 30 percent softwood 
veneer by volume and maintain records on veneer dryer production.
    To demonstrate continuous compliance with the work practice 
requirements for group 1 miscellaneous coating operations, you must 
keep records showing that you continue to use non-HAP coatings as 
defined in the final rule.

I. How Do I Demonstrate That My Affected Source Is Part of the Low-Risk 
Subcategory?

    For your affected source to be part of the delisted low-risk 
subcategory, you must have a low-risk demonstration approved by EPA, 
and you must then have federally enforceable conditions reflecting the 
parameters used in your EPA-approved demonstration incorporated into 
your title V permit to ensure that your affected source remains low-
risk. Low-risk demonstrations for eight facilities were conducted by 
EPA, and no further demonstration is required for them. They will, 
however, need to obtain title V permit terms reflecting their status. 
(We will provide these sources and their title V permitting authorities 
with the necessary parameters for establishing corresponding permit 
terms and conditions.) These facilities are listed in Table 2 to this 
preamble. Other facilities may demonstrate to EPA that their PCWP 
affected source is low risk by using the look-up tables in appendix B 
to 40 CFR part 63, subpart DDDD or conducting a site-specific risk 
assessment as specified in appendix B to subpart DDDD. Appendix B to 
subpart DDDD also specifies which process units and pollutants must be 
included in your low-risk demonstration, emissions testing methods, the 
criteria for determining if an affected source is low risk, risk 
assessment methodology (look-up table analysis or site-specific risk 
analysis), contents of the low-risk demonstration, schedule for 
submitting and obtaining approval of your low-risk demonstration, and 
methods for ensuring that your affected source remains in the low-risk 
subcategory. If you demonstrate that your affected source is part of 
the delisted low-risk subcategory of PCWP manufacturing facilities, 
then your affected source is not subject to the MACT compliance 
options, operating requirements, and work practice requirements in the 
final PCWP rule (subpart DDDD).
1. Low-Risk Criteria
    We may approve your affected source as eligible for membership in 
the delisted low-risk subcategory of PCWP sources if we determine that 
it is low risk for both carcinogenic and noncarcinogenic effects. To be 
considered low risk, the PCWP affected source must meet the following 
criteria: (1) The maximum off-site individual lifetime cancer risk at a 
location where people live is less than one in one million for 
carcinogenic chronic inhalation effects; (2) every maximum off-site 
target-organ specific hazard index (TOSHI) (or, alternatively, an 
appropriately site-specific set of hazard indices based on similar or 
complementary mechanisms of action that are reasonably likely to be 
additive at low dose or dose-response data for your affected source's 
HAP mixture) at a location where people live is less than or equal to 
1.0 for noncarcinogenic chronic inhalation effects; and (3) the maximum 
off-site acute hazard quotients for acrolein and formaldehyde are less 
than or equal to 1.0 for

[[Page 45954]]

noncarcinogenic acute inhalation effects. These criteria are built into 
the look-up tables included in appendix B to subpart DDDD. Facilities 
conducting site-specific risk assessments must explicitly demonstrate 
that they meet these criteria. Facilities need not perform site-
specific multipathway human health risk assessments or ecological risk 
assessments since EPA performed a source category-wide screening 
assessment which demonstrates that these risks are insignificant for 
all sources.
2. PCWP Affected Sources Delisted in Today's Action
    Eight PCWP affected sources are being delisted today as part of the 
low-risk subcategory. They are listed below in Table 2 of this 
preamble. If your affected source is part of the low-risk subcategory 
and you do not wish it to remain in the subcategory, you may notify us, 
in writing, and we will remove your affected source from the low-risk 
subcategory. Any affected sources removed from the low-risk subcategory 
are subject to the requirements of subpart DDDD, as applicable. Please 
address your written notification to Ms. Mary Tom Kissell (see FOR 
FURTHER INFORMATION CONTACT section).

Table 2. -- Low - Risk Affected Sources in the Low-Risk PCWP Subcategory
------------------------------------------------------------------------
        Name of Affected Source                      Location
------------------------------------------------------------------------
Georgia-Pacific Plywood Plant..........  Monroeville, AL.
Georgia-Pacific--Hawthorne Plywood Mill  Hawthorne, FL.
Oregon Panel Products (Lebanite).......  Lebanon, OR.
Hardel Mutual Plywood Corporation......  Chehalis, WA.
Hood Industries, Incorporated..........  Wiggins, MS.
Plum Creek Manufacturing, LP...........  Kalispell, MT.
Potlatch Corporation--St. Maries         St. Maries, ID.
 Plywood.
SierraPine Limited, Rocklin MDF........  Rocklin, CA.
------------------------------------------------------------------------

    We performed a risk assessment to determine the magnitude of 
potential chronic human cancer and noncancer risks and the potential 
for acute noncancer risks and adverse environmental impacts associated 
with the sources in the PCWP source category. The risk assessment was 
performed for 181 of the 223 major PCWP affected sources. Affected 
sources where available location data were ambiguous or where all of 
their site-specific information was requested to be treated as 
confidential were excluded from the analysis, leaving a total of 181 
affected sources in the assessment. For the risk assessment, we used 
our baseline emission estimates (developed using average emission 
factors and, if available, site-specific process throughput data) and 
model PCWP emissions release characteristics as inputs into our Human 
Exposure Model (HEM) to generate cancer and non-cancer risk estimates 
for the 181 PCWP affected sources. The risk assessment methodology is 
explained in detail in the supporting information for this final rule.
    Because our risk estimates include model emissions release 
information, they are not as rigorous as the risk demonstrations we are 
requiring PCWP affected sources to perform. Therefore, to ensure the 
affected sources listed in Table 2 of this preamble meet the low risk 
criteria in appendix B to subpart DDDD, we subjected them to more 
stringent standards than required for risk demonstrations based on 
better (i.e., site-specific) data. First, we increased the level of 
protection to human health by a factor of 10. Instead of using the 
criteria established in appendix B to subpart DDDD of one in 1 million 
risk for cancer and TOSHI of less than or equal to 1.0, PCWP affected 
sources with cancer risk greater than 0.1 in 1 million or a TOSHI 
greater than 0.1 were excluded. For the remaining PCWP affected 
sources, we estimated emission factors based on the highest emissions 
test data we had. We remodeled these PCWP affected sources using worst-
case (i.e. highest) emission factors and the January 2004 IRIS cancer 
URE for formaldehyde. From this analysis, affected sources with hazard 
index values greater than 0.2 or cancer risks greater than one in 1 
million were excluded. Of the remaining affected sources, we eliminated 
those that are closed, have pending enforcement actions, and that did 
not submit or claimed as confidential site-specific throughput data. We 
also consulted with an industry trade association and they removed 
various affected sources from the list for various reasons.
3. Determining HAP Emissions From the Affected Source
    You must include in your low-risk demonstration every process unit 
within the PCWP affected source that emits one or more of the following 
HAP: acetaldehyde, acrolein, arsenic, benzene, beryllium, cadmium, 
chromium, formaldehyde, lead, MDI, manganese, nickel, and phenol. You 
must conduct emissions testing using the methods specified in appendix 
B to subpart DDDD. For reconstituted wood product presses or 
reconstituted wood product board coolers, you must determine the 
capture efficiency of the capture device. If you use a control device 
for purposes of demonstrating that your affected source is part of the 
low-risk subcategory, then you must collect monitoring data and 
establish operating limits for the control system using the same 
methods specified in subpart DDDD.
4. Low-Risk Demonstrations
    Once you have conducted emissions testing, you may perform a lookup 
table analysis or site-specific risk analysis. Regardless of the type 
of risk analysis used, you must use the most recent EPA-approved dose-
response values as posted on our Air Toxics Website at http://www.epa.gov/
ttn/atw/toxsource/summary.html to demonstrate that your 
affected source may be part of the low-risk subcategory. If you can 
demonstrate that your affected source is low-risk based on the look-up 
table analysis, then you need not complete a site-specific risk 
analysis. If your affected source is not low-risk based on the look-up 
table analysis, then you may elect to proceed with site-specific risk 
analysis. Appendix B to subpart DDDD specifies what your low-risk 
demonstration must contain.
    Look-up table analysis. You may use the look-up tables (Tables 3 
and 4 to 40 CFR part 63, subpart DDDD, appendix B) to determine if your 
affected source may be part of the low-risk subcategory. Table 3 to 
appendix B to subpart DDDD provides the maximum allowable toxicity-
weighted carcinogen emission rate, and Table 4 to appendix B to subpart 
DDDD provides the maximum allowable toxicity-weighted noncarcinogen 
emission rate that your affected source can emit. To use the look-up 
tables, you must determine your toxicity-weighted carcinogen and 
noncarcinogen emission rates using the equations in appendix B to 
subpart DDDD; the average stack height of all PCWP emission points at 
your affected source; and the minimum distance from any emission point 
to the nearest property boundary. If the total toxicity-weighted 
carcinogen and noncarcinogen emission rates for your affected source 
are less than or equal to the values in both look-up tables, then EPA 
may approve your affected source as part of the low-risk subcategory of 
PCWP affected sources.
    Site-specific risk assessment. You may use any scientifically-
accepted peer-reviewed risk assessment methodology to demonstrate to 
EPA that

[[Page 45955]]

your affected source may be low risk. An example approach to performing 
a site-specific risk assessment for air toxics that may be appropriate 
for your affected source can be found in the ``Air Toxics Risk 
Assessment Reference Library.'' However, this approach may not be 
appropriate for all affected sources, and EPA may require that any 
specific affected source use an alternative approach. You may obtain a 
copy of the ``Air Toxics Risk Assessment Reference Library, Volume 2, 
Site-Specific Risk Assessment Technical Resource Document'' through 
EPA's air toxics website at http://www.epa.gov/ttn/atw.
    For EPA to approve your low-risk demonstration, you must 
demonstrate that: (1) The maximum off-site individual lifetime cancer 
risk at a location where people live is less than one in one million 
for carcinogenic chronic inhalation effects; (2) every maximum off-site 
TOSHI at a location where people live is less than or equal to 1.0 for 
non-carcinogenic chronic inhalation effects; and (3) the maximum off-
site acute hazard quotients for acrolein and formaldehyde are less than 
or equal to 1.0 for noncarcinogenic acute inhalation effects.
5. When Must I Submit Risk Demonstrations to EPA?
    You must submit your low-risk demonstration to EPA for approval. If 
you have an existing affected source, you must submit your low-risk 
demonstration no later than July 31, 2006. To facilitate the review and 
approval process, EPA encourages facilities to submit their assessments 
as soon as possible. If you have an affected source that is an area 
source that increases its emissions or its potential to emit such that 
it becomes a major source of HAP before the effective date of subpart 
DDDD, then you must complete and submit for EPA approval your low-risk 
demonstration no later than July 31, 2006. If you have an affected 
source that is an area source that increases its emissions or its 
potential to emit such that it becomes a major source of HAP after the 
effective date of subpart DDDD, then you must complete and submit for 
approval your low-risk demonstration no later than 12 months after you 
become a major source or after initial startup of your affected source 
as a major source, whichever is later.
    If you have a new or reconstructed affected source you must conduct 
the emission tests upon initial startup and use the results of these 
emissions tests to complete and submit your low-risk demonstration 
within 180 days following your initial startup date. If your new or 
reconstructed affected source starts up before the effective date of 
subpart DDDD, for EPA to find that you are included in the low-risk 
subcategory, your low-risk demonstration must show that you were 
eligible for the low-risk subcategory no later than the effective date 
of subpart DDDD. If your new or reconstructed source starts up after 
the effective date of subpart DDDD, for EPA to find that you are 
included in the low-risk subcategory, your low-risk demonstration must 
show that you were eligible for the low-risk subcategory upon initial 
startup of your affected source.
    Affected sources that are not part of the low-risk subcategory 
within 3 years after the effective date of subpart DDDD must comply 
with the requirements of 40 CFR part 63, subpart DDDD. Facilities may 
not request compliance extensions from the permitting authority if they 
fail to demonstrate they are part of the low-risk subcategory or to 
request additional time to install controls to become part of the low-
risk subcategory. All approved low risk sources must then obtain title 
V permit revisions including terms and conditions reflecting the 
parameters used in their approved demonstrations, according to the 
schedules in their applicable part 70 or part 71 title V permit programs.
6. Remaining in the Low-Risk Subcategory
    You must ensure that your affected source is low risk by 
periodically certifying your affected source is low risk, monitoring 
applicable HAP control device parameters, and by maintaining certain 
records. You must certify with each annual title V permit compliance 
certification that the basis for your affected source's low-risk 
determination has not changed. Your certification must consider process 
changes that increase HAP emissions, population shifts, and changes to 
dose-response values. If your affected source commences operating 
outside of the low-risk subcategory, it is no longer part of the low-
risk subcategory. You must notify the permitting authority as soon as 
you know, or could have reasonably known, that your affected source is 
or will be operating outside of the low-risk subcategory. You must be 
in compliance with all of the applicable requirements of 40 CFR part 
63, subpart DDDD beginning on the date when your affected source 
commences operating outside the low-risk subcategory if you had a 
process change that increases HAP emissions. If you are operating 
outside of the low-risk subcategory due to a population shift or change 
to dose-response values, then you must comply with all of the 
applicable requirements of 40 CFR part 63, subpart DDDD no later than 
three years from the date your affected source commences operating 
outside the low-risk subcategory.

III. Summary of Environmental, Energy, and Economic Impacts

A. How Many Facilities Are Impacted by the Final Rule?

    Facilities with estimated potential to emit 25 tons or more of 
total HAP or 10 or more tons of an individual HAP are major sources of 
HAP and are subject to the final rule. Approximately 223 PCWP major 
source facilities nationwide are expected to meet the applicability 
criteria defined in today's final rule. These major source facilities 
generally manufacture one or more of the following products: Softwood 
plywood, softwood veneer, medium density fiberboard (MDF), oriented 
strandboard (OSB), particleboard, hardboard, laminated strand lumber, 
and laminated veneer lumber. However, only 212 of these facilities have 
equipment that is subject to the control requirements of the final 
rule. In addition, there are approximately 34 major source sawmill 
facilities that produce kiln-dried lumber; although these major source 
sawmill facilities meet the applicability criteria in the final rule, 
there are no control requirements for any of the equipment located at 
the sawmills.
    The number of impacted facilities was determined based on the 
estimated potential to emit (i.e., uncontrolled HAP emissions) from 
each facility, whether each facility has any process units subject to 
the compliance options, whether or not the facility already operates 
control systems necessary to meet the final rule, and whether or not 
the affected source is currently eligible (or may later demonstrate 
eligibility) for inclusion in the delisted low risk subcategory. Of the 
223 major source facilities, an estimated 162 are expected to install 
add-on control systems to reduce emissions. The remaining facilities 
already have installed add-on controls, do not have any process units 
subject to the compliance options, are expected to comply with work 
practice requirements only, or are one of the eight facilities 
currently eligible for inclusion in the delisted low-risk subcategory. 
We estimate that eventually as many as 147 of the 223 major source PCWP 
facilities may demonstrate eligibility for the low-risk subcategory, 
leaving 58 facilities expected to install add-on control systems to 
reduce emissions. Some of the 147 facilities expected to eventually

[[Page 45956]]

be included the low-risk subcategory were not expected to install 
controls to meet MACT because they either already have the necessary 
controls or do not have process units subject to the compliance options 
in today's final rule.
    The environmental and cost impacts presented in this preamble 
represent the estimated impacts for the range of facilities, from 58 
facilities estimated to be impacted following completion of eligibility 
demonstrations for the low-risk subcategory, to 162 facilities 
estimated to be impacted today. The impact estimates were based on the 
use of RTO (or in some cases a combination WESP and RTO) because RTO 
are the most prevalent HAP emissions control technology used in the 
PCWP industry. However, technologies other than RTO could be used to 
comply with today's final rule. For a facility that we feel already 
achieves the emissions reductions required by today's final rule, only 
testing, monitoring, reporting and recordkeeping cost impacts were estimated.

B. What Are the Air Quality Impacts?

    We estimate nationwide baseline HAP emissions from the PCWP source 
category to be 17,000 Mg/yr (19,000 tons/yr) at the current level of 
control. We estimate that today's final rule will reduce total HAP 
emissions from the PCWP source category by about 9,900 Mg/yr (11,000 
tons/yr). In addition, we estimate that today's final rule will reduce 
VOC emissions (approximated as THC) by about 25,000 Mg/yr (27,000 tons/
yr) from a baseline level of 45,000 Mg/yr (50,000 tons/yr). Depending 
on the number of facilities eventually demonstrating eligibility for 
the low-risk subcategory, these emission reductions could change to 
5,900 Mg/yr (6,600 tons/yr) for HAP or 13,000 Mg/yr (14,000 tons/yr) 
for VOC.
    In addition to reducing emissions of HAP and VOC, today's final 
rule will also reduce emissions of criteria pollutants, such as carbon 
monoxide (CO) from direct-fired emission sources and particulate matter 
less than 10 microns in diameter (PM10). We estimate that 
today's final rule will reduce CO emissions by about 9,500 Mg/yr 
(10,000 tons/yr). We also estimate that the final rule will reduce 
PM10 emissions by about 11,000 Mg/yr (12,000 tons/yr). 
Depending on the number of facilities eventually demonstrating 
eligibility for the low-risk subcategory, these emission reductions 
could change to 7,600 Mg/yr (8,400 tons/yr) for CO and 5,300 Mg/yr 
(5,900 tons/yr) for PM10.
    Combustion of exhaust gases in an RTO generates some emissions of 
nitrogen oxides (NOX). We estimate that the nationwide 
increase in NOX emissions due to the use of RTO will be 
about 2,100 Mg/yr (2,400 tons/yr). This estimated increase in 
NOX emissions may be an overestimate because some plants may 
select control technologies other than RTO to comply with today's final 
rule. Depending on the number of facilities eventually demonstrating 
eligibility for the low-risk subcategory, the estimated NOX 
emission increase could fall to 1,100 Mg/yr (1,200 tons/yr).
    Secondary air impacts of today's final rule could result from 
increased electricity usage associated with operation of control 
devices. The secondary air emissions of NOX, CO, 
PM10, sulfur dioxide (SO2) depend on the fuel used to 
generate electricity and on other factors. The EPA believes SO2 
emissions may not increase from electric generation since that the 
requirements of the Acid Rain trading program will keep power plants 
from increasing their SO2 emissions. Furthermore, we believe that 
NOX emissions increases from power plants may be limited. 
The EPA expects the emissions trading program that is part of the 
NOX SIP call will likely keep NOX emissions in 
the eastern United States from increasing as result of additional power 
generation to operate RTOs.

C. What Are the Water Quality Impacts?

    Wastewater is produced from WESP blowdown, washing out of RTO, and 
biofilters. We based all of our impact estimates on the use of RTO 
(with or without a WESP upstream depending on the process unit). We 
estimate that the wastewater generated from WESP blowdown and RTO 
washouts will increase by about 100,000 cubic meters per year (m\3\/yr) 
(27 million gallons per year (gal/yr)) as a result of today's final 
rule. Depending on the number of facilities eventually demonstrating 
eligibility for the low-risk subcategory, the wastewater impacts could 
fall to 90,000 cubic meters per year (m\3\/yr) (24 million gallons per 
year (gal/yr)). According to the data in our MACT survey, this 
nationwide increase in wastewater flow is within the range of water 
flow rates handled by individual facilities. Facilities would likely 
dispose of this wastewater by sending it to a municipal treatment 
facility, reusing it onsite (e.g., in log vats or resin mix), or 
hauling it offsite for spray irrigation. In addition, we are amending 
the effluent limitations, guidelines for the timber products processing 
point source category to allow facilities (on a case-by-case basis) to 
obtain a permit to discharge wastewaters from APCD installed to comply 
with today's final rule.

D. What Are the Solid Waste Impacts?

    Solid waste is produced in the form of solids from WESP and by RTO 
or RCO media replacement. We estimate that 4,500 Mg/yr (4,900 tons/yr) 
of solid waste will be generated as a result of today's final rule. 
Depending on the number of facilities eventually demonstrating 
eligibility for the low-risk subcategory, the solid waste increase 
could change to 2,800 Mg/yr (3,000 tons/yr). Some PCWP facilities have 
been able to use RTO or RCO media as aggregate in onsite roadbeds. Some 
facilities have also been able to identify a beneficial reuse for wet 
control device solids (such as giving them away to local farmers for 
soil amendment).

E. What Are the Energy Impacts?

    The overall energy demand (i.e., electricity and natural gas) is 
expected to increase by about 4.3 million gigajoules per year (GJ/yr) 
(4.1 trillion British thermal units per year (Btu/yr)) nationwide under 
today's final rule. The estimated increase in the energy demand is 
based on the electricity requirements associated with RTO and WESP and 
the fuel requirements associated with RTO. Electricity requirements are 
expected to increase by about 711 gigawatt hours per year (GWh/yr) 
under today's final rule. Natural gas requirements are expected to 
increase by about of 44 million m\3\/yr (1.6 billion cubic feet per 
year (ft\3\/yr)) under the final rule. Depending on the number of 
facilities eventually demonstrating eligibility for the low-risk 
subcategory, these energy estimates could fall to 2.3 million GJ/yr 
(2.2 trillion Btu/yr) for overall energy demand, 378 GWh/yr for the 
increase in electricity requirements, and 24 million m\3\/yr (0.9 
billion ft\3\/yr) for the increase in natural gas requirements.

F. What Are the Cost Impacts?

    The cost impacts estimated for today's final rule represent a high-
end estimate of costs. Although the use of RTO technology to reduce HAP 
emissions represents the most expensive compliance option, we based our 
nationwide cost estimates on the use of RTO technology at all of the 
impacted facilities because: (1) RTO technology can be used to reduce 
emissions from all types of PCWP process units; and (2) we could not 
accurately predict which facilities would use emissions averaging or 
PBCO or install add-on control devices that are less costly to operate, 
such as RCO and biofilters. Therefore, our cost estimates are likely to be

[[Page 45957]]

overstated as we anticipate that owners and operators of impacted 
sources will take advantage of available cost saving opportunities.
    The high-end estimated total capital costs of today's final rule 
are $471 million. Depending on the number of facilities eventually 
demonstrating eligibility for the low-risk subcategory, the capital 
costs could fall to $240 million. These capital costs apply to existing 
sources and include the costs to purchase and install both the RTO 
equipment (and in some cases, a WESP upstream of the RTO) and the 
monitoring equipment, and the costs of performance tests. Wood products 
enclosure costs are also included for reconstituted wood products presses.
    The high-end estimated annualized costs of the final standards are 
$140 million. Depending on the number of facilities eventually 
demonstrating eligibility for the low-risk subcategory, the annualized 
costs could fall to $74 million. The annualized costs account for the 
annualized capital costs of the control and monitoring equipment, 
operation and maintenance expenses, and recordkeeping and reporting 
costs. Potential control device cost savings and increased 
recordkeeping and reporting costs associated with the emissions 
averaging provisions in today's final rule are not accounted for in 
either the capital or annualized cost estimates.

G. What Are the Economic Impacts?

    The economic impact analysis shows that the expected price 
increases for affected output would range from 0.4 to 1.3 percent as a 
result of the NESHAP for PCWP manufacturers. The expected change in 
production of affected output is a reduction of 0.06 to 0.4 percent for 
PCWP manufacturers as a result of today's final rule. No plant closures 
are expected out of the 223 facilities affected by the final rule. 
Therefore, it is likely that there is no adverse impact expected to 
occur for those industries that produce output affected by the final 
rule, such as hardboard, softwood plywood and veneer, engineered wood 
products, and other wood composites.

H. What Are the Social Costs and Benefits?

    Our assessment of costs and benefits of today's final rule is 
detailed in the ``Regulatory Impact Analysis for the Proposed Plywood 
and Composite Wood Products MACT.'' The Regulatory Impact Analysis 
(RIA) is located in Docket number A-98-44 and Docket number OAR-2003-0048.
    It is estimated that 3 years after implementation of the final rule 
requirements, reductions of formaldehyde, acetaldehyde, acrolein, 
methanol, phenol and several other HAP from existing PCWP emission 
sources would be 5,900 Mg/yr (6,600 tons/yr) to 9,900 Mg/yr (11,000 
tons/yr), depending on how many affected sources are in the low-risk 
subcategory. The health effects associated with these HAP are discussed 
earlier in this preamble.
    At this time, we are unable to provide a comprehensive 
quantification and monetization of the HAP-related benefits of the 
final rule. Nevertheless, it is possible to derive rough estimates for 
one of the more important benefit categories, i.e., the potential 
number of cancer cases avoided and cancer risk reduced as a result of 
the imposition of the MACT level of control on this source category. 
Our analysis suggests that imposition of the MACT level of control 
would reduce cancer cases by less than one case per year, on average, 
starting some years after implementation of the standards. We present 
these results in the RIA. This risk reduction estimate is uncertain and 
should be regarded as an extremely rough estimate and should be viewed 
in the context of the full spectrum of unquantified noncancer effects 
associated with the HAP reductions.
    The control technologies used to reduce the level of HAP emitted 
from PCWP sources are also expected to reduce emissions of CO, 
PM10, and VOC. Depending on how many affected sources are in 
the low-risk subcategory, it is estimated that CO emissions reductions 
total approximately 7,600 Mg/yr (8,400 tons/yr) to 9,500 Mg/yr (10,000 
tons/yr), PM10 emissions reductions total approximately 
5,300 Mg/yr (5,900 tons/yr) to 11,000 Mg/yr (12,000 tons/yr), and VOC 
emissions reductions (approximated as THC) total approximately 13,000 
Mg/yr (14,000 tons/yr) to 25,000 Mg/yr (27,000 tons/yr). These 
estimated reductions occur from existing sources in operation 3 years 
after the implementation of the requirements of the final rule and are 
expected to continue throughout the life of the sources. Human health 
effects associated with exposure to CO include cardiovascular system 
and CNS effects, which are directly related to reduced oxygen content 
of blood and which can result in modification of visual perception, 
hearing, motor and sensorimotor performance, vigilance, and cognitive 
ability. The VOC emissions reductions may lead to some reduction in 
ozone concentrations in areas in which the affected sources are 
located. There are both human health and welfare effects that result 
from exposure to ozone, and these effects are listed in Table 3 of this 
preamble.

          Table 3.--Unquantified Benefit Categories From HAP, Ozone-Related, and PM Emissions Reductions
----------------------------------------------------------------------------------------------------------------
                                       Unquantified effects      Unquantified effect       Unquantified effect
                                     categories  associated    categories  associated    categories  associated
                                            with HAP                 with ozone                  with PM
----------------------------------------------------------------------------------------------------------------
Health Categories.................  Carcinogenicity            Airway responsiveness    Premature mortality
                                    Genotoxicity............  Pulmonary inflammation..  Chronic bronchitis
                                    Pulmonary function        Increased susceptibility  Hospital admissions for
                                     decrement.                to respiratory            chronic obstructive
                                    Dermal irritation.......   infection.                pulmonary disease,
                                    Eye irritation..........  Acute inflammation and     pneumonia,
                                    Neurotoxicity...........   respiratory cell damage.  cardiovascular
                                    Immunotoxicity..........  Chronic respiratory        diseases, and asthma
                                    Pulmonary function         damage/Premature aging   Changes in pulmonary
                                     decrement.                of lungs.                 function
                                    Liver effects...........  Emergency room visits     Morphological changes
                                    Gastrointestinal effects   for asthma.              Altered host defense
                                    Kidney effects..........  Hospital admissions for    mechanisms
                                    Cardiovascular             respiratory diseases.    Cancer
                                     impairment.              Asthma attacks..........  Other chronic
                                    Hematopoietic (Blood      Minor restricted           respiratory disease
                                     disorders).               activity days.           Emergency room visits
                                    Reproductive/                                        for asthma
                                     Developmental effects.                             Lower and upper
                                                                                         respiratory symptoms
                                                                                        Acute bronchitis
                                                                                        Shortness of breath
                                                                                        Minor restricted
                                                                                         activity days
                                                                                        Asthma attacks
                                                                                        Work loss days.

[[Page 45958]]

Welfare Categories................  Corrosion/Deterioration   Ecosystem and vegetation  Materials damage
                                    Unpleasant odors........   effects in Class I       Damage to ecosystems
                                    Transportation safety      areas (e.g., national     (e.g., acid sulfate
                                     concerns.                 parks)                    deposition)
                                    Yield reductions/Foliar   Damage to urban           Nitrates in drinking
                                     injury.                   ornamentals (e.g.,        water.
                                    Biomass decrease........   grass, flowers, shrubs,
                                    Species richness decline   and trees in urban
                                    Species diversity          areas).
                                     decline.                 Commercial field crops..
                                    Community size decrease.  Fruit and vegetable
                                    Organism lifespan          crops.
                                     decrease.                Reduced yields of tree
                                    Trophic web shortening..   seedlings, commercial
                                                               and non-commercial
                                                               forests.
                                                              Damage to ecosystems....
                                                              Materials damage........
                                                              Reduced worker
                                                               productivity.
----------------------------------------------------------------------------------------------------------------

    At the present time, we cannot provide a monetary estimate for the 
benefits associated with the reductions in CO. We also did not provide 
a monetary estimate for the benefits associated with the changes in 
ozone concentrations that result from the VOC emissions reductions 
since we are unable to do the necessary air quality modeling to 
estimate the ozone concentration changes. For PM10 , we did 
not provide a monetary estimate for the benefits associated with the 
reduction of the emissions, although these reductions are likely to 
have significant health benefits to populations living in the vicinity 
of affected sources.
    There may be increases in NOX emissions associated with 
today's final rule as a result of increased use of incineration-based 
controls. These NOX emission increases by themselves could 
cause some increase in ozone and particulate matter (PM) 
concentrations, which could lead to impacts on human health and welfare 
as listed in Table 3 of this preamble. The potential impacts associated 
with increases in ambient PM and ozone due to these emission increases 
are discussed in the RIA. In addition to potential NOX 
increases at affected sources, today's final rule may also result in 
additional electricity use at affected sources due to application of 
controls. As such, the final rule may result in additional health 
impacts from increased ambient PM and ozone from these increased 
utility emissions. We did not quantify or monetize these health impacts.
    Every benefit-cost analysis examining the potential effects of a 
change in environmental protection requirements is limited to some 
extent by data gaps, limitations in model capabilities (such as 
geographic coverage), and uncertainties in the underlying scientific 
and economic studies used to configure the benefit and cost models. 
Deficiencies in the scientific literature often result in the inability 
to estimate changes in health and environmental effects. Deficiencies 
in the economics literature often result in the inability to assign 
economic values even to those health and environmental outcomes which 
can be quantified. These general uncertainties in the underlying 
scientific and economics literatures are discussed in detail in the RIA 
and its supporting documents and references.
    In determining the overall economic consequences of the final rule, 
it is essential to consider not only the costs and benefits expressed 
in dollar terms but also those benefits and costs that we could not 
quantify. A full listing of the benefit categories that could not be 
quantified or monetized in our analysis is provided in Table 3 of this 
preamble.

IV. Summary of Responses To Major Comments and Changes to the Plywood 
and Composite Wood Products NESHAP

    We proposed the PCWP NESHAP on January 9, 2003 (68 FR 1276), and 
received 57 comment letters on the proposal during the comment period. 
In response to the public comments received on the proposed rule, we 
made several changes in developing today's final rule. Table 4 of this 
preamble provides a list of the major changes that we made to the final 
rule. The major comments and our responses are summarized in the 
following sections. A complete summary of the comments received during 
the comment period and responses thereto can be found in the background 
information document (BID) for the promulgated rule, which is available 
from several sources (see SUPPLEMENTARY INFORMATION section).

      Table 4.--Summary of Major Changes to Subpart DDDD of Part 63
------------------------------------------------------------------------
       Proposed section           Final section     Change from proposal
------------------------------------------------------------------------
Sec.   63.2231................  Sec.   63.2231...  Revised section to
                                                    state that subpart
                                                    DDDD does not apply
                                                    to facilities that
                                                    are part of the low-
                                                    risk subcategory of
                                                    PCWP manufacturing
                                                    facilities.
Sec.   63.2232(b).............  Sec.   63.2232(b)  Description of
                                                    affected source
                                                    revised to be
                                                    consistent with
                                                    revised definition.
Sec.   63.2240................  Sec.   63.2240...  Clarified application
                                                    of compliance
                                                    options to a single
                                                    process unit.
Sec.   63.2240(a).............  Sec.   63.2240(a)  Added wet control
                                                    device to the list
                                                    of devices that may
                                                    not be used to meet
                                                    the PBCO.
Sec.   63.2240(b).............  Sec.   63.2240(b)  Changed press
                                                    enclosure reference
                                                    from ``PTE'' to
                                                    ``wood products
                                                    enclosure.''

[[Page 45959]]

Sec.   63.2240(c)(1)..........  Sec.               Revised definition of
                                 63.2240(c)(1).     AMR and OCEPi in
                                                    emissions averaging
                                                    calculations to
                                                    clarify that sources
                                                    can receive partial
                                                    credits from debit-
                                                    generating process
                                                    units that are
                                                    undercontrolled;
                                                    revised definition
                                                    of CDi to address
                                                    test method for
                                                    biological treatment
                                                    units that do not
                                                    meet the definition
                                                    of biofilter.
Sec.   63.2240(c)(2)(iii).....  Sec.               Revised restriction
                                 63.2240(c)(2)(ii   on emissions average
                                 i).                related to process
                                                    units that are
                                                    already controlled.
                                Sec.   63.2241(c)  Added new section
                                                    that exempts dry
                                                    rotary dryers,
                                                    hardwood veneer
                                                    dryers, and veneer
                                                    redryers from work
                                                    practice
                                                    requirements if they
                                                    comply with more
                                                    stringent standards
                                                    in Sec.   63.2240.
Sec.   63.2250(a).............  Sec.   63.2250(a)  Revised section to
                                                    clarify that SSM
                                                    refers to both
                                                    process unit and
                                                    control device SSM.
Sec.   63.2250(d).............  Sec.   63.2250(a)  Moved and revised
                                                    section to
                                                    consolidate
                                                    explanation of SSM
                                                    provisions.
                                Sec.   63.2250(d)  Added specific
                                                    example of a
                                                    shutdown for direct-
                                                    fired burners and a
                                                    specific example of
                                                    a startup for direct-
                                                    fired softwood
                                                    veneer dryers.
Sec.   63.2250(e).............  .................  Removed requirement
                                                    to record control
                                                    device maintenance
                                                    schedule.
Sec.   63.2250(f).............  .................  Removed requirement
                                                    to maintain and
                                                    operate catalyst
                                                    according to
                                                    manufacturer's
                                                    specifications.
Sec.   63.2251(a).............  Sec.   63.2251(a)  Added partial list of
                                                    events eligible for
                                                    a routine control
                                                    device exemption;
                                                    clarified duty to
                                                    minimize emissions.
Sec.   63.2251(b)(1)..........  Sec.               Specified type of
                                 63.2251(b)(1).     strand dryer
                                                    controlled by a
                                                    control device
                                                    eligible for a
                                                    routine control
                                                    device maintenance
                                                    exemption of 3
                                                    percent of annual
                                                    uptime.
Sec.   63.2251(b)(2)..........  Sec.               Added conveyor strand
                                 63.2251(b)(2).     dryer to list of
                                                    process units
                                                    controlled by a
                                                    control device
                                                    eligible for a
                                                    routine control
                                                    device maintenance
                                                    exemption of 0.5
                                                    percent of annual
                                                    uptime.
Sec.   63.2251(e).............  Sec.   63.2251(e)  Removed requirement
                                                    to schedule control
                                                    device maintenance
                                                    at the beginning of
                                                    each semi-annual
                                                    period.
Sec.   63.2260(a).............  Sec.   63.2260(a)  Expanded exemption
                                                    from testing and
                                                    monitoring
                                                    requirements to all
                                                    combustion units
                                                    that introduce
                                                    process unit exhaust
                                                    into the flame zone.
Sec.   63.2262(d).............  Sec.               Added sampling
                                 63.2262(d)(1).     location
                                Sec.                requirements for
                                 63.2262(d)(2).     control devices in
                                                    sequence, process
                                                    units with no
                                                    control device, and
                                                    process units with a
                                                    wet control device.
Sec.   63.2262(g).............  Sec.               Reworded and
                                 63.2262(g)(1).     renumbered section
                                                    to allow for one
                                                    case in which non-
                                                    detect data is not
                                                    considered to be one-
                                                    half the method
                                                    detection limit.
                                Sec.               Added exception to
                                 63.2262(g)(2).     requirement to treat
                                                    non-detect data as
                                                    one-half the
                                                    detection limit.
Sec.   63.2262(k)(1)..........  Sec.               Clarified
                                 63.2262(k)(1).     requirements for
                                                    establishing the
                                                    minimum firebox
                                                    temperature for
                                                    thermal oxidizers.
Sec.   63.2262(k)(2)..........  .................  Removed sections on
Sec.   63.2262(k)(3)..........                      establishing
                                                    operating parameter
                                                    limits for static
                                                    pressure and stack
                                                    gas flow for thermal
                                                    oxidizers.
Sec.   63.2262(k)(4)..........  Sec.               Removed references to
                                 63.2262(k)(2).     static pressure and
                                                    gas flow rate
                                                    operating
                                                    parameters.
Sec.   63.2262(k)(5)..........  Sec.               Revised eligibility
                                 63.2262(k)(3).     criteria for
                                                    exemptions from
                                                    performance testing
                                                    and operating
                                                    requirements for
                                                    thermal oxidizers.
Sec.   63.2262(l)(1)..........  Sec.               Clarified
                                 63.2262(l)(1).     requirements for
                                                    establishing the
                                                    minimum catalytic
                                                    oxidizer
                                                    temperature.
Sec.   63.2262(l)(2)..........  .................  Removed sections on
Sec.   63.2262(l)(3)..........                      establishing
                                                    operating parameter
                                                    limits for static
                                                    pressure and stack
                                                    gas flow for
                                                    catalytic oxidizers.
Sec.   63.2262(l)(4)..........  Sec.               Removed references to
                                 63.2262(l)(2).     static pressure and
                                                    gas flow rate
                                                    operating
                                                    parameters.
Sec.   63.2262(m)(1)..........  Sec.               Revised requirements
Sec.   63.2262(m)(2)..........   63.2262(m)(1).     for establishing
                                Sec.                biofilter operating
                                 63.2262(m)(2).     limits (temperature
                                                    range).
Sec.   63.2262(n)(1)..........  Sec.               Revised monitoring
                                 63.2262(n)(1).     requirements for
                                                    process units that
                                                    meet compliance
                                                    options without the
                                                    use of an add-on
                                                    control device.
Sec.   63.2267................  Sec.   63.2267...  Added initial
                                                    compliance criteria
                                                    for a wood products
                                                    enclosure.
                                Sec.   63.2268...  Added criteria for
                                                    demonstration of
                                                    initial compliance
                                                    for a wet control
                                                    device.
Sec.   63.2268(a)(1)..........  Sec.               Revised continuous
                                 63.2269(a)(1).     parameter monitoring
                                                    system requirements.
Sec.   63.2268(a)(3)..........  Sec.   63.2270(d)  Revised and moved
Sec.   63.2268(a)(4)..........  Sec.   63.2270(e)   sections regarding
                                                    determination of
                                                    block averages and
                                                    valid data to
                                                    section on
                                                    continuous
                                                    compliance
                                                    requirements.
Sec.   63.2268(b)(2)..........  Sec.               Clarified temperature
Sec.   63.2268(b)(3)..........   63.2269(b)(2).     measurement
                                Sec.                requirements.
                                 63.2268(b)(3).
Sec.   63.2268(c).............  .................  Removed sections
Sec.   63.2268(d).............  .................   regarding pH,
Sec.   63.2268(e).............  .................   pressure, and flow
                                                    monitoring.

[[Page 45960]]

Sec.   63.2268(f)(1)..........  Sec.               Revised requirements
Sec.   63.2268(f)(2)..........   63.2269(c)(1).     for wood moisture
                                Sec.                monitoring.
                                 63.2269(c)(2).
                                Sec.               Added equation for
                                 63.2269(c)(5).     converting moisture
                                                    measurements from
                                                    wet basis to dry
                                                    basis.
Sec.   63.2270(c).............  Sec.   63.2270(c)  Added language to
                                                    specify that data
                                                    recorded during
                                                    periods of SSM may
                                                    not be used in data
                                                    averages and
                                                    calculations used to
                                                    report emission or
                                                    operating levels.
                                Sec.   63.2270(f)  Added requirement
                                                    that 75 percent of
                                                    readings recorded
                                                    and included in
                                                    block averages must
                                                    be based on valid
                                                    data.
Sec.   63.2280(f)(6)..........  Sec.               Revised EAP
                                 63.2280(f)(6).     submission
                                                    requirements to
                                                    include information
                                                    on debit-generating
                                                    process units.
                                Sec.   63.2282(e)  Added requirement to
                                                    keep records of
                                                    annual catalyst
                                                    activity checks and
                                                    subsequent
                                                    corrective actions
                                                    for catalytic
                                                    oxidizers.
Sec.   63.2291................  Sec.   63.2291...  Revised section to
                                                    state that EPA
                                                    retains authority to
                                                    review eligibility
                                                    demonstrations for
                                                    the low-risk
                                                    subcategory.
                                Sec.   63.2292...  Added definitions of
                                                    ``agricultural
                                                    fiber,''
                                                    ``combustion unit,''
                                                    ``conveyor strand
                                                    dryer,'' ``conveyor
                                                    strand dryer zone,''
                                                    ``flame zone,''
                                                    ``group 1
                                                    miscellaneous
                                                    coating
                                                    operations,'' ``non-
                                                    HAP coating,'' ``one-
                                                    hour period,''
                                                    ``partial wood
                                                    products
                                                    enclosure,''
                                                    ``primary tube
                                                    dryer,'' ``rotary
                                                    strand dryer,''
                                                    ``secondary tube
                                                    dryer,'' ``wet
                                                    control device,''
                                                    and ``wood products
                                                    enclosure.''
Sec.   63.2292................  .................  Removed definitions
                                                    of ``permanent total
                                                    enclosure,'' ``plant
                                                    site,'' and ``strand
                                                    dryer.''
Sec.   63.2292................  Sec.   63.2292...  Revised definitions
                                                    of ``affected
                                                    source,''
                                                    ``biofilter,''
                                                    ``deviation,''
                                                    ``fiber,''
                                                    ``fiberboard,''
                                                    ``hardboard,''
                                                    ``medium density
                                                    fiberboard,''
                                                    ``miscellaneous
                                                    coating
                                                    operations,''
                                                    ``particle,''
                                                    ``particleboard,''
                                                    ``plywood and
                                                    composite wood
                                                    products (PCWP)
                                                    manufacturing
                                                    facility,''
                                                    ``softwood veneer
                                                    dryer,'' and
                                                    ``thermal
                                                    oxidizer.''
Table 1A......................  Table 1A.........  Changed ``tube
                                                    dryers'' to
                                                    ``primary tube
                                                    dryers'' and added
                                                    ``secondary tube
                                                    dryers''; added PBCO
                                                    limit for secondary
                                                    tube dryers; revised
                                                    PBCO limit for
                                                    reconstituted wood
                                                    product board
                                                    coolers; changed
                                                    ``strand dryers'' to
                                                    ``rotary strand
                                                    dryers.''
Table 1B......................  Table 1B.........  Added ``rotary strand
                                                    dryers,'' ``conveyor
                                                    strand dryer zone
                                                    one (at existing
                                                    affected sources),''
                                                    and ``conveyor
                                                    strand dryer zones
                                                    one and two (at new
                                                    affected sources)''
                                                    to the list of
                                                    process units.
Table 2, Line 1...............  Table 2, Line 1..  Reduced thermal
                                                    oxidizer operating
                                                    requirements to
                                                    maintaining the
                                                    average firebox
                                                    temperature above
                                                    the minimum
                                                    temperature.
Table 2, Line 2...............  Table 2, Line 2..  Reduced catalytic
                                                    oxidizer operating
                                                    requirements to
                                                    maintaining the
                                                    temperature above a
                                                    minimum temperature
                                                    and checking the
                                                    activity level of a
                                                    representative
                                                    sample of the
                                                    catalyst every 12
                                                    months.
Table 2, Line 3...............  Table 2, Line 3..  Reduced biofilter
                                                    operating
                                                    requirements to
                                                    maintaining the
                                                    biofilter bed
                                                    temperature within a
                                                    range.
Table 2, Line 5...............  Table 2, Line 5..  Revised operating
                                                    requirements for
                                                    process units
                                                    without control
                                                    devices.
                                Table 3, Line 5..  Added work practice
                                                    requirements for
                                                    group 1
                                                    miscellaneous
                                                    coating operations.
Table 4, Line 9...............  Table 4, Line 9..  Revised the
                                                    performance test
                                                    criteria for
                                                    reconstituted wood
                                                    product presses and
                                                    reconstituted wood
                                                    product board
                                                    coolers.
Table 4, Line 11..............  Table 4, Line 11.  Revised text to
                                                    clarify that
                                                    performance test
                                                    requirements apply
                                                    to all process units
                                                    in an emissions
                                                    average plan.
Table 5, Line 7...............  Table 5, Line 7..  Removed minimum heat
                                                    input capacity
                                                    criterion for
                                                    combustion units.
                                Table 5, Line 8..  Added criteria for
                                                    performance testing
                                                    and initial
                                                    compliance
                                                    demonstrations for
                                                    wet control devices.
                                Table 6, Line 5..  Added initial
                                                    compliance
                                                    demonstration for
                                                    Group 1
                                                    miscellaneous
                                                    coating operations.
Table 7, Line 1...............  Table 7, Line 1..  Revised ``at or above
                                                    the maximum, at or
                                                    below the minimum''
                                                    to read ``at or
                                                    above the minimum,
                                                    at or below the
                                                    maximum.''
                                Table 7, Line 3..  Added continuous
                                                    compliance
                                                    requirements
                                                    (periodic testing)
                                                    for biofilters.
                                Table 7, Line 4..  Added continuous
                                                    compliance
                                                    requirements (annual
                                                    catalyst activity
                                                    check) for catalytic
                                                    oxidizers.
                                Table 7, Line 5..  Added continuous
                                                    compliance
                                                    requirements for
                                                    process units
                                                    achieving compliance
                                                    without an add-on
                                                    control device.
Table 8, Line 1...............  Table 8, Line 1..  Specified block
                                                    averages of 24 hours
                                                    for moisture and
                                                    temperature
                                                    measurements for dry
                                                    rotary dryers.
Table 8, Line 4...............  Table 8, Line 4..  Specified block
                                                    average of 24 hours
                                                    for moisture
                                                    measurements for
                                                    veneer dryers.
                                Table 8, Line 5..  Added continuous
                                                    compliance
                                                    requirements for
                                                    Group 1
                                                    miscellaneous
                                                    coating operations.
Table 10, Sec.   63.8(g)......  Table 10, Sec.     Added ``rounding of
                                 63.8(g).           data'' to
                                                    description of the
                                                    General Provisions
                                                    section.

[[Page 45961]]

Appendix A to Subpart DDDD....  Appendix A to      Made various
                                 Subpart DDDD.      revisions throughout
                                                    to reflect the
                                                    removal of a
                                                    permanent total
                                                    enclosure (PTE) as a
                                                    requirement for
                                                    reconstituted wood
                                                    products presses and
                                                    board coolers.
                                Appendix B to      Added appendix B to
                                 Subpart DDDD.      specify procedure
                                                    for demonstrating
                                                    that an affected
                                                    source is part of
                                                    the low-risk
                                                    subcategory.
------------------------------------------------------------------------

A. Applicability

1. Definition of Affected Source
    Comment: Several commenters requested that we clarify that the PCWP 
affected source includes refining and resin preparation activities such 
as mixing, formulating, blending, and chemical storage, and suggested 
that boilers be excluded. The commenters wanted to ensure that onsite 
resin preparation activities are specifically mentioned in and 
regulated by the final PCWP rule to avoid duplicate regulation of those 
activities under the Miscellaneous Organic Chemical Manufacturing 
NESHAP (subpart FFFF) or the Miscellaneous Coating Manufacturing NESHAP 
(subpart HHHHH). Commenters also recommended changing the proposed 
definition of affected source by revising the definition of ``plant 
site,'' which was used in the affected source definition at proposal. 
The commenters asked that we make the definition of ``plant site'' 
consistent with the definition of ``major source'' as defined for title 
V permitting in 40 CFR 70.2. According to the commenters, the proposed 
definition of ``plant site'' expanded the definition of a source beyond 
that used for title V permitting or MACT applicability in general.
    Response: We agree with the commenters that changes should be made 
to the definition of affected source, and the definition was adjusted 
in the final rule. We added resin preparation activities to the 
definition of ``affected source'' to clarify that these activities are 
part of the PCWP source category and are not subject to subpart FFFF to 
40 CFR part 63 or subpart HHHHH to 40 CFR part 63. Resin preparation 
includes any mixing, blending, or diluting of resins used in the 
manufacture of PCWP products which occurs at the PCWP manufacturing 
facility. We feel this change is appropriate because the MACT analysis 
for resin preparation activities was conducted under the PCWP final 
rulemaking. (As explained in the proposal BID and supporting 
documentation, we determined that MACT for new and existing blenders 
and resin storage/mixing tanks is no emissions reductions.) Subpart 
FFFF to 40 CFR part 63 and subpart HHHHH to 40 CFR part 63 exclude 
activities included as part of the affected source for other source 
categories. Thus, onsite resin preparation activities at a PCWP 
manufacturing facility are not subject to subpart FFFF to 40 CFR part 
63 or subpart HHHHH to 40 CFR part 63.
    We added refiners to the definition of affected source to clarify 
that these sources are part of the affected source and were part of the 
MACT analysis for the PCWP source category. (For new and existing 
pressurized refiners, we determined that MACT is based on the use of 
incineration-based control or a biofilter, and for new and existing 
atmospheric refiners, we determined that MACT is no emissions reductions.)
    We removed all references to ``plant site'' from the final rule and 
replaced references to ``plant site'' with the term ``facility'' to 
eliminate confusion regarding which emission sources constitute the 
affected source and which emission sources would be considered when 
making a major source determination. The term ``plant site'' was used 
only in the proposed definitions of ``affected source'' and ``plywood 
and composite wood products manufacturing facility.'' Inclusion of the 
term ``plant site'' in the proposed definition of affected source 
unintentionally broadened the definition such that emission sources not 
related to PCWP manufacturing could be construed as being part of the 
affected source. For example, under the proposed definitions of 
``affected source'' and ``plant site,'' if a company operated both a 
PCWP manufacturing facility and a wood building products surface 
coating facility at the same site, both operations might be considered 
to be part of the PCWP affected source because the ``plant site'' would 
encompass both operations, even though these two operations are 
regulated under separate NESHAP. We removed the term ``plant site'' 
from the final rule to clarify that the requirements in the final rule 
would only apply to the affected source, which is the PCWP 
manufacturing facility. However, we note that any major source 
determination would be based on total emissions from both operations 
since the two operations are colocated and under common control. (See 
definition of major source in the General Provisions (40 CFR part 63, 
subpart A).)
    We did not incorporate the commenters' suggestion to specifically 
exclude boilers from the definition of ``affected source'' because it 
is possible for a boiler to be subject to both the PCWP NESHAP and the 
Industrial/Commercial/Institutional Boilers and Process Heaters NESHAP 
(e.g., if a portion of the boiler exhaust is used to direct fire dryers 
while the remaining portion of the boiler exhaust is vented to the 
atmosphere). However, in most cases, combustion units would only be 
subject to one MACT. The overlap between the PCWP NESHAP and the 
Industrial/Commercial/Institutional Boilers and Process Heaters NESHAP 
is also discussed in this preamble.
2. Process Definitions
    Comment: Commenters recommended that a number of definitions 
included in the proposed rule be revised to better distinguish between 
particleboard, MDF and hardboard and/or to be consistent with 
definitions developed by the American National Standards Institute (ANSI).
    Response: We made changes to several of the proposed process-
related definitions including the definitions of particle, fiber, 
hardboard, MDF, and particleboard. These minor changes incorporate some 
of the wording in similar definitions used by ANSI but do not affect 
the scope or applicability of the final rule. We also added a 
definition of agricultural fiber recommended by commenters because the 
term ``agricultural fiber'' appears in the definition of plywood and 
composite wood products facility.
    Comment: Several commenters requested that the proposed definition 
of tube dryer be changed so that stages in multistage tube dryers would 
be considered as separate tube dryers. With this change, different 
control options could be applied to different dryer stages.
    Response: Under the proposed definition of tube dryer, a multistage 
tube dryer with more than one control

[[Page 45962]]

device and emissions point would be considered one process unit. In 
developing the proposed rule, we noted that the function of tube dryers 
is the same regardless of single-or multistage configuration and that 
distinguishing between dryer configurations would not change the 
results of the MACT floor analysis, despite the fact that the majority 
of the HAP emissions exhaust from the primary stage. Therefore, we made 
no distinction between single-stage and multistage tube dryers at 
proposal. However, we agree with the commenters that defining the 
stages of multistage tube dryers separately would allow facilities the 
flexibility of choosing different compliance options for each stage of 
the tube dryer, and we have included separate definitions of primary 
tube dryer and secondary tube dryer in the final rule. The MACT floor 
for both primary tube dryers and secondary tube dryers is the same 
(e.g., 90 percent reduction in emissions), but facilities may choose 
different control options for the primary and secondary tube dryers. 
For example, a facility with a multistage tube dryer could use an add-
on control device to reduce emissions from the primary tube dryer only 
and then use emissions averaging to offset the uncontrolled emissions 
from the secondary tube dryer.
3. Lumber Kilns
    Comment: We received comments from representatives of sawmills and 
wood treating facilities disagreeing with the inclusion of lumber kilns 
in the PCWP source category. The commenters stated that owners and 
operators of kilns that are not located at a PCWP facility may be 
subject to other requirements of the rule, as proposed, that do not 
truly apply to them, including costly monitoring, recordkeeping, and 
reporting. One commenter was concerned that the owners and operators of 
non-colocated lumber kilns could find themselves in violation of the 
May 15, 2002, case-by-case ``MACT Hammer'' deadline even though they 
did not anticipate being included in the rule, as proposed, and thus 
did not apply for the case-by-case consideration.
    Response: At proposal, we broadened the PCWP source category to 
include non-colocated lumber kilns (i.e., lumber kilns located at 
stand-alone kiln-dried lumber manufacturing facilities or at any other 
type of facility). In the preamble to the proposed rule, we noted that 
if non-colocated lumber kilns were not included in the PCWP NESHAP, 
then kiln-dried lumber manufacturing could be listed as a major source 
category under section 112(c) of the CAA in the future, requiring a 
separate CAA section 112(d) rulemaking and potentially becoming 
separately subject to the provisions of section 112(g) of the CAA as 
well. We felt it was reasonable to include non-colocated lumber kilns 
in the PCWP source category because the design and operation of lumber 
kilns are essentially the same regardless of whether the kilns are 
located at a sawmill or are colocated with PCWP or other types of 
manufacturing operations. At proposal, we noted that there are no 
currently applicable controls at any lumber kilns and that it would be 
both more efficient and expeditious to include all lumber kilns in the 
MACT analysis for the final PCWP rule than to separately address them 
in a rulemaking that likely would not result in meaningful emissions 
reductions from lumber kilns. In addition, we noted that including all 
lumber kilns in the final PCWP MACT results in placing them on a faster 
schedule for purposes of future residual risk analysis under CAA 
section 112(f).
    In an attempt to better understand the concerns of the commenters, 
we met with wood products industry representatives who requested that 
lumber kilns be included in the PCWP source category and with the 
commenters who disagreed that non-colocated lumber kilns should be 
included in the PCWP source category. After consideration of concerns 
expressed by all of the commenters on this issue, we maintain that it 
is more efficient for EPA, State regulators, and lumber kiln operators 
for EPA to include all lumber kilns in the final PCWP NESHAP. Because 
the MACT floor determination for lumber kilns is no emission reduction 
(as explained in the proposal preamble), there will not be a 
significant monitoring, recordkeeping, and reporting burden for 
facilities with only non-colocated lumber kilns. Only those facilities 
that are major sources of HAP emissions are subject to the final PCWP 
NESHAP. Facilities with non-colocated lumber kilns that are classified 
as major sources of HAP must submit an initial notification form 
required by the final PCWP NESHAP and the Part 1 ``MACT Hammer'' 
application required by section 112(j) of the CAA. We note that both of 
these forms simply ask the facilities to identify themselves to EPA. We 
acknowledge that operators of non-colocated lumber kilns were not aware 
that they were included in the PCWP source category until the proposed 
PCWP NESHAP was printed in the Federal Register on January 9, 2003, and 
therefore, would not have known to submit a Part 1 application by May 
15, 2002.
4. Regulated HAP
    Comment: One commenter objected to the fact that the proposed rule 
only set standards for six HAP. The commenter asserted that, according 
to the CAA and National Lime Ass'n v. EPA, 233 F.3d 625, 633-634 (D.C. 
Cir. 2000), we are required to set standards for every HAP listed in 
CAA section 112(b)(1) emitted by PCWP operations, not just the ones 
that are the easiest to measure. Other commenters disagreed and noted 
that a requirement that EPA impose an emission standard for every 
listed HAP, without regard to whether or not there are applicable 
methods for reducing HAP emissions or whether the MACT floor sources 
actually use such method, contradicts the plain language of the 
statute. These commenters contended that the statute specifically 
frames the inquiry in terms of degrees of reduction.
    Response: Today's final PCWP rule contains numerical emission 
limits in terms of methanol, formaldehyde, THC, or total HAP (which is 
defined in the final rule as the sum of six HAP including acrolein, 
acetaldehyde, formaldehyde, methanol, phenol, and propionaldehyde). The 
nationwide PCWP emissions of total HAP are 18,190 tons/yr, which is 96 
percent of the nationwide emissions of all HAP (19,000 tons/yr) emitted 
by PCWP facilities. The six HAP that comprise total HAP are found in 
emissions from all PCWP product sectors that contain major sources and 
in emissions from most process units. At proposal, when we stated that 
other HAP are emitted ``in low quantities that may be difficult to 
measure,'' we were referring to HAP that are often emitted at levels 
below test method detection limits (68 FR 1276, January 9, 2003). Our 
data clearly show that these other HAP are difficult or impossible to 
measure because they are either emitted in very low quantities or are 
not present. Such low quantities are not detectable by the applicable 
emission testing procedures (which are sensitive enough to detect HAP 
at concentrations below 1 part per million (ppm)). Many of these other 
HAP were detected in less than 15 percent of test runs, or for only one 
type of process unit.
    Based on our emissions data, we determined that methanol, 
formaldehyde, THC, or total HAP are appropriate surrogates for 
measuring all organic HAP measurably-emitted by the PCWP source 
category. The PBCO and emissions averaging compliance options in 
today's final PCWP rule are based on total HAP. Review of the emission

[[Page 45963]]

factors used to develop the emissions estimates for the PCWP source 
category indicates that uncontrolled emissions of HAP (other than the 
six HAP) are always lower than emissions of the six HAP for every 
process unit with MACT control requirements. Thus, process units 
meeting the PBCO based on total HAP also would have low emissions of 
other organic HAP. The emissions averaging provisions and add-on 
control device compliance options involve use of add-on APCD. The 
available data show that a reduction in one predominant HAP (or THC) 
correlates with a reduction in other HAP if the other HAP is present in 
detectable quantities and at sufficient concentration. The data also 
show that the mechanisms in RTO, RCO, and biofilters that reduce 
emissions of formaldehyde and methanol reduce emissions of the 
remaining HAP. In addition, an analysis of the physical properties of 
the organic HAP emitted from PCWP processes indicates that nearly all 
of the HAP would be combusted at normal thermal oxidizer operating 
temperatures. Today's standards are based on the use of add-on control 
devices because the available emissions data do not reveal any process 
variables that could be manipulated (without altering the product) to 
achieve a quantifiable reduction in emissions. Furthermore, nothing in 
the data suggests that process variables could be manipulated in a way 
that would alter the relationship between formaldehyde and methanol 
reduction and reduction of other HAP. We determined that it is 
appropriate for the final PCWP rule to contain compliance options in 
terms of total HAP, THC, formaldehyde, or methanol because the same 
measures used to reduce emissions of these pollutants also reduce 
emissions of other organic HAP.

B. Overlap With Other Rules

1. Overlap With Industrial/Commercial/Institutional Boilers and Process 
Heaters NESHAP
    Comment: Commenters expressed support for our proposal to regulate 
emissions from combustion units used to direct fire dryers and to 
exclude these emissions from the requirements of the Industrial/
Commercial/Institutional Boilers and Process Heaters NESHAP. However, 
the commenters expressed concern about potential NESHAP applicability 
questions that could arise during short periods when the exhaust gases 
from these combustion units are not exhausting through the dryers and 
would bypass any controls applied to these dryers. The commenters noted 
that in some of the combustion units associated with direct-fired 
dryers, a small percentage of combustion gas is routed to indirect heat 
exchange and then is normally and predominantly routed to direct-fired 
gas flow. According to the commenters, in these hybrid units, typically 
only a small fraction of combustion gas (e.g., less than 10 percent of 
total capacity) is routed to indirect heat exchange for hot oil/steam 
generation. This fraction of the combustion unit exhaust then generally 
exhausts through the direct-fired dryers and the emissions are treated 
by the add-on control device at the dryers' outlet. However, under 
certain circumstances (e.g., during startups, shutdowns, emergencies, 
or periods when dryers are down for maintenance but steam/thermal oil 
is still needed for plant and/or press heat), some systems may exhaust 
directly to the atmosphere without passing through the direct-fired 
dryers and the associated control systems. The commenters recommended 
that this small subset of combustion units be assigned a primary 
purpose (based on the predominant allocation of British thermal units 
per hour (Btu/hr) capacity and/or predominant mode of operation) and 
regulated accordingly. In the above example, the commenters assumed 
that the primary purpose is as a direct-fired dryer, such that the 
equipment would be subject to the final PCWP MACT and not to the 
Industrial/Commercial/Institutional Boilers and Process Heaters NESHAP.
    Response: In considering the commenters' request, we reviewed 
available information on direct-fired dryers and the associated 
combustion units at PCWP facilities. The available information 
indicates that there are many configurations of combustion units, 
dryers, and thermal oil heaters in the PCWP industry. While some 
systems have the hybrid configurations described by the commenters 
whereby a portion of the combustion gas is routed to indirect heat 
exchange, other systems retain all of the combustion gas within the 
direct-fired system. We do not have sufficient information (and no such 
information was provided by the commenters) to fully evaluate the need 
for a primary purpose designation for PCWP combustion units, to 
establish the percentage-of-operating-time or British thermal unit 
(Btu) limits for such a primary purpose designation, or to determine 
MACT for combustion units that would meet the primary purpose 
designation. For example, we do not know how many combustion units are 
configured to incorporate both indirect and direct heat exchange, and 
for these units we do not know the amount of time or the percentage of 
Btu allocation that is devoted to indirect heat exchange or the 
controls used to reduce emissions during indirect heat exchange. We 
expect that all of these factors vary substantially from facility to 
facility for those facilities that have these hybrid combustion units. 
We also lack information on the emissions reduction techniques (e.g., 
control devices) applied to combustion units associated with direct-
fired PCWP dryers that may bypass the dryers for some unknown 
percentage of time. Therefore, we feel it would be inappropriate for us 
to establish a primary purpose designation which could inadvertently 
allow facilities to configure their systems to direct a portion of 
their uncontrolled emissions to the atmosphere without these emissions' 
being subject to the Industrial/Commercial/Institutional Boilers and 
Process Heaters NESHAP. Also, we wish to clarify that the final PCWP 
rule regulates only that portion of emissions from a combustion unit 
that are routed through the direct-fired dryers. Any emissions from a 
combustion unit that are not routinely through the direct-fired dryers 
would be subject to the Industrial/Commercial/Institutional Boilers and 
Process Heaters NESHAP. Therefore, if the emissions from a combustion 
unit are split such that only a portion of the emissions are routed 
through a direct-fired dryer, then the combustion unit would be subject 
to both rules.
    For those occasions when a facility must shut down its direct-fired 
dryers but still wants to operate the combustion unit to heat oil for 
the press, the facility could propose in its startup, shutdown, and 
malfunction (SSM) plan to route exhaust through the thermal oil heater 
(and then to the atmosphere) during these periods. The permitting 
authority would then decide on a facility-specific basis if heating of 
the thermal oil heater (and the associated uncontrolled emissions) 
should be allowed during dryer SSM considering the amount of time that 
this condition occurs, the fraction of combustion unit Btu used to heat 
the thermal oil heater, and the type of control used to reduce 
combustion unit emissions.
2. Overlap With Wood Building Products (WBP) NESHAP
    Comment: Commenters on the proposed Wood Building Products (Surface 
Coating) rule (subpart QQQQ to 40 CFR part 63) asserted that neither 
asphalt-coated fiberboard nor ceiling tiles are coated with HAP-containing

[[Page 45964]]

materials and that regulating such products would be burdensome. These 
commenters requested that we include asphalt coating of fiberboard and 
ceiling tiles in today's final PCWP rule by including these coating 
operations under the definition of miscellaneous coating operations 
(for which the proposed MACT was no emissions reductions), so that 
these operations would be subject to the final PCWP rule and not the 
WBP rule, as proposed.
    Response: In the proposed rule, we addressed overlap between the 
WBP and PCWP NESHAP by including specific surface coating activities 
(which occur onsite at a PCWP manufacturing facility) in the definition 
of ``miscellaneous coating operations.'' Inclusion of these activities 
in the definition of miscellaneous coating operations means that these 
activities are subject to the final PCWP rule and not to the WBP rule, 
as proposed. We made changes to the definition of miscellaneous coating 
operations in today's final rule in response to the public comments we 
received on the proposed WBP rule relating to asphalt-coated fiberboard 
and ceiling tiles.
    We evaluated the types of coatings and processes used to make 
asphalt-coated fiberboard and found that only a few facilities in the 
United States make these products, with varying manufacturing and 
coating processes. An asphalt emulsion can be added during the 
fiberboard forming process, or asphalt can be applied to the fiberboard 
substrate. Information we collected on asphalt coatings suggests that 
they contain no HAP. Depending on the company and the process, the 
coating can be applied before or after the final dryer with the product 
allowed to air dry. Ceiling tiles are usually coated using non-HAP 
slurries of titanium dioxide and various clays, and no organic solvents 
are used. Most of the coatings associated with these types of products 
are applied during the substrate forming process (i.e., to the wet mat 
being formed) or prior to the final substrate drying operation, 
fiberboard coating operations (including those used in the manufacture 
of asphalt-coated fiberboard and ceiling tiles). Because no HAP are 
contained in the above-mentioned coatings, the coatings are applied as 
part of the manufacturing process, and MACT for these coating processes 
is no emissions reductions, we changed the definition of miscellaneous 
coating operations to include ``application of asphalt, clay slurry, or 
titanium dioxide coatings to fiberboard at the same site of fiberboard 
manufacture.'' These products are not subject to the final WBP surface 
coating rule.

C. Amendments to the Effluent Guidelines for Timber Products Processing

    Comment: Several commenters requested that we address potential 
conflicts between the PCWP rule as proposed and the effluent guidelines 
for the Timber Products Processing Point Source Category. These 
commenters noted that the effluent guidelines state that ``there shall 
be no discharge of process wastewater pollutants into navigable 
waters.'' However, according to the commenters, at the time that 
statement was written, air pollution controls were not common, and EPA 
was not aware of the large volumes of water that can be produced by 
APCD. The commenters recommended that we address this issue by revising 
the effluent guidelines at 40 CFR part 429. Specifically, these 
commenters asked us to amend the definition of process wastewaters at 
40 CFR part 429.11(c) so that the discharge prohibition in 40 CFR part 
429 would not apply to wastewaters associated with APCD operation and 
maintenance when installed to comply with the final PCWP MACT rule. 
These commenters asserted that effluent limitations for these 
wastewaters should be developed by permit writers on a case-by-case 
basis based upon best professional judgment. These commenters noted 
that the language we included in the preamble to the proposed rule 
would generally accomplish this purpose with some minor changes (see 68 
FR 1276, January 9, 2003). The commenters also provided rationale and 
data to support their recommendation. The commenters contended that we: 
(1) Underestimated the volume of wastewater that would be generated by 
the application of MACT and as a result, underestimated the associated 
costs of disposing of this wastewater; (2) failed to address the 
achievability/feasibility of MACT if the discharge of air pollution 
control wastewaters is prohibited; and (3) did not consider wastewater 
from air pollution control devices when the Timber Products zero 
discharge effluent guidelines were originally developed. The commenters 
submitted several case studies to demonstrate the variability in the 
volume of wastewater generated at various PCWP facilities and to show 
how each facility currently recycles, reuses, and disposes of 
wastewater generated from the operation and maintenance of RTO, WESP 
and biofilters. The commenters also argued that the available data do 
not support a conclusion that wastewaters generated from MACT control 
devices can, with Best Available Technology (BAT), be managed in a way 
that does not involve a discharge.
    Response: At the time we proposed the PCWP rule, we indicated that 
we would consider amending the definition of process wastewater in 40 
CFR part 429 to exclude those wastewaters generated by APCD operation 
and maintenance when installed to comply with the proposed PCWP NESHAP. 
We indicated in the preamble to the proposal that we would amend the 
definition of process wastewaters if information and data were 
submitted to support the industry's assertions that PCWP facilities in 
certain subcategories would not be able consistently to achieve the 
effluent limitations guidelines and standards applicable to them if 
they were to comply with the proposed PCWP NESHAP. As part of the PCWP 
proposal, we described with specificity how we would revise 40 CFR part 
429 if we were convinced that such revisions were appropriate and 
solicited data and information.
    Based on the data and information submitted by the commenters, we 
have concluded that facilities subject to 40 CFR part 429, subpart B 
(Veneer subcategory), subpart C (Plywood subcategory), subpart D (Dry 
Process Hardboard subcategory), and subpart M (Particleboard 
Manufacturing subcategory) are unable to comply consistently with the 
existing 40 CFR part 429 effluent limitations guidelines and standards, 
which prohibit the discharge of process wastewater pollutants, because 
of the volume of wastewaters generated by APCD that are installed to 
comply with the final PCWP NESHAP and because the technology basis for 
those effluent limitations guidelines and standards is insufficient, in 
light of that wastewater volume and the pollutant content, to achieve 
the prohibition on process wastewater discharges for these NESHAP-
related APCD wastewaters. Therefore, we are excluding from the 
definition of process wastewaters in 40 CFR 29.11(c) the following 
wastewaters associated with APCD used by PCWP facilities covered by 
subparts B, C, D, and M to comply with 40 CFR 63.22: wastewater from 
washout of thermal oxidizers and catalytic oxidizers, wastewater from 
biofilters, and wastewater from WESP used upstream of thermal oxidizers 
or catalytic oxidizers.
    In addition, we agree with comments that we will need considerably 
more data and information to promulgate new effluent limitations 
guidelines and standards for the process wastewaters at issue today. In 
particular, we will need

[[Page 45965]]

information to adequately characterize the quantity and quality of 
wastewater that would be generated as result of compliance with the 
MACT standards. The volume and pollutant content of wastewater 
generated at these facilities are related to production processes, air 
pollution control equipment that generate wastewater, the extent of 
opportunities for internal recycling of wastewater, and the 
availability of other process uses for wastewater. Until we promulgate 
effluent limitations guidelines and standards for pollutants in these 
process wastewaters, Best Practicable Technology (BPT) and BAT effluent 
limitations should be established on a case-by-case basis under 40 CFR 
125.3. Thus, individual facilities seeking a discharge permit will have 
the opportunity, on a case-by-case basis, to characterize and obtain 
discharge allowances for their wastewaters from APCD installed to 
comply with the final PCWP NESHAP. The permit writer would be expected 
to determine, based upon best professional judgment (BPJ), the 
appropriate effluent limitations for these APCD wastewaters. (See 40 
CFR 125.3.) The permit writer can take into account facility-specific 
information on wastewater volumes and pollutants, available wastewater 
control and treatment technologies, costs and effluent reduction 
benefits, receiving water quality, and any applicable State water 
quality standards. At a later date, we expect to consider whether to 
amend the existing effluent limitations guidelines and standards for 
the Timber Processing Industry to cover these process wastewaters. Such 
an effort would involve gathering and analyzing the information and 
data necessary to establish revised categorical effluent limitations 
affecting subparts B, C, D, and M of 40 CFR part 429 for these APCD 
wastewaters generated in complying with the final PCWP NESHAP.
    Today's amendment to the final rule is based on regulatory language 
included in the preamble accompanying the proposed NESHAP for PCWP 
facilities (68 FR 1276, January 9, 2003). The preamble described the 
relationship of the proposed MACT rule to the amendment to 40 CFR part 
429 under consideration. The preamble explained that the entities 
affected by the proposed MACT rule would also be affected by the 
proposed amendment to 40 CFR part 429; presented both the terms and 
substance of the amendment under consideration; and described the 
subjects and issues involved. In addition, we solicited comments on 
whether to amend 40 CFR 429.11(c) and information relevant to that 
decision. While at that time we indicated that we were considering 
employing a direct final rule to promulgate any such amendment, we have 
concluded with support from commenters that that procedure was 
unnecessary and instead are taking final action on the amendment today 
without further process.

D. Existing Source MACT

1. OSB Strand Dryers
    Comment: One commenter requested that further consideration be 
given to the emission standards for low-temperature OSB conveyor strand 
dryers. The commenter stated that because these conveyor strand dryers 
emit less HAP than rotary strand dryers and have been recognized as 
best available control technology (BACT) in Minnesota, they should be 
exempted from control requirements in the final PCWP rule. The 
commenter noted that the 12 conveyor strand dryers used by their 
company have three drying zones, each with its own heating system and 
exhaust vent(s). When drying hardwoods, no VOC control is required; 
however, when drying pine the company controls emissions from zones 1 
and 2. Zone 3 serves as a final conditioning zone and is exhausted to 
the atmosphere without need for VOC control. The proposed PCWP rule 
would have required the sum of the emissions from all three zones to be 
reduced to MACT levels (e.g., 90 percent reduction).
    Response: The MACT analysis we conducted at proposal treated 
conveyor strand dryers as a separate equipment group from rotary strand 
dryers. We noted that rotary strand dryers operate at much higher inlet 
temperatures (e.g., often greater than or equal to 900[deg]F) than 
conveyor strand dryers (e.g., typically less than 400[deg]F) and that 
rotary dryers provide greater agitation of the wood strands than 
conveyor strand dryers. As a result, the emissions from conveyor strand 
dryers are lower than the emissions from rotary strand dryers. The 
emissions test data we have for conveyor strand dryers (only 
formaldehyde and THC data are available) indicate that formaldehyde 
emissions from conveyor strand dryers are 1 to 2 orders of magnitude 
lower than for rotary strand dryers. The THC emissions are also lower 
for conveyor strand dryers than for rotary dryers. Our MACT analysis 
for conveyor strand dryers at proposal concluded that three of the 
eight conveyor strand dryers used in the U.S. operated with process 
incineration. Because there are less than 30 conveyor strand dryers, 
the MACT floor was based on the control level achieved by the third 
best-controlled dryer. Thus, at proposal, we determined that the MACT 
floor control system for new and existing conveyor strand dryers was 
the emissions reductions achievable with incineration-based control. We 
included one definition of ``strand dryers'' in the proposed PCWP rule 
since MACT for both rotary and conveyor strand dryers was represented 
by incineration-based control.
    As pointed out by the commenter, conveyor strand dryers have 
distinct zones, with each zone having its own heating system and 
exhaust. We reviewed our MACT survey data and learned that all of the 
conveyor strand dryers in the U.S. have three zones. Upon further 
scrutiny of the MACT analysis at proposal, we learned that the three 
conveyor strand dryers that formed the basis for the MACT floor at 
proposal were routing the emissions from zone 1 only to an onsite 
combustion unit for incineration. The remaining five conveyor strand 
dryers have no HAP control. Thus, our conclusions regarding the MACT 
floor for conveyor strand dryers at proposal were overstated. The third 
best-controlled conveyor strand dryer has incineration-based control 
only on zone 1 as opposed to controls on all zones. Therefore, we 
revised our analysis to reflect that the MACT floor for existing 
conveyor strand dryers is the emissions reduction achievable with 
incineration-based control on zone 1. To implement this change, we 
added definitions for ``conveyor strand dryer'' and ``conveyor strand 
dryer zone'' to the final rule.
    The commenter mentioned operating 12 conveyor strand dryers. Six of 
these conveyor strand dryers are located at new plants that were not 
included in our pre-proposal MACT floor analysis. These six conveyor 
strand dryers route emissions from zones 1 and 2 to a closed-loop 
incineration system for emissions control. Given that newer facilities 
are incinerating conveyor strand dryer exhaust from zones 1 and 2, we 
determined that the MACT floor for conveyor strand dryers at new 
sources is the emissions reductions achievable with incineration-based 
control for exhausts from zones 1 and 2.
    As described in the promulgation BID and supporting documentation, 
we determined that the environmental benefit of controlling additional 
conveyor dryer zones would not justify the cost for existing or new 
conveyor strand dryers.

[[Page 45966]]

2. Wood Products Press Enclosures
    Comment: Many commenters argued that EPA Method 204 compliance 
should not be a part of the PCWP MACT floor for presses because most of 
the press enclosures that were described in the industry survey data as 
having permanent total enclosures (PTE) were never certified by Method 
204 criteria. The commenters noted that most of these enclosures were 
designed according to Method 204 design criteria; however, the permits 
for these facilities never required them to comply fully with Method 
204 certification. The commenters contended that, of the 26 presses 
identified as having PTE, only 2 had actually undergone Method 204 
certification.
    The commenters also argued that Method 204 cannot be applied 
practically to the hot presses that are used at PCWP facilities. The 
commenters stated that Method 204 was developed for applications where 
the emissions have consistent properties; however, the temperature and 
density of emissions from a typical multiple-opening batch wood 
products press are constantly changing as the press opens and closes, 
which creates layers of gases with different physical properties within 
the enclosure. According to the commenters, instead of mixing and 
exiting the enclosure, the layers of gases can accumulate. The layers 
of gas in the upper region of the enclosure have a higher temperature 
and pressure than the air outside the press, and the lower layers of 
gas have a lower temperature and pressure than the air outside the 
press. The commenters maintained that to force the gases outside the 
enclosure, the operator would have to increase the airflow through the 
system to a rate that is three to four times higher than would be 
necessary for an enclosure operating at a homogenous temperature and 
pressure. The commenters contended that, while many of the wood 
products presses were designed to follow the Method 204 design 
criteria, they were not designed to overcome this phenomenon and may 
not be able to certify that all of the emissions are captured and 
contained.
    The commenters recommended that we address the press capture 
efficiency issue by implementing work practice requirements for 
enclosures. The commenters suggested that we replace the proposed 
definition of PTE with a definition that includes four of the five 
design criteria found in EPA Method 204, and replaces the requirement 
that ``all VOC emissions must be captured and contained for discharge 
through a control device'' with a requirement that ``fugitive emissions 
shall be minimized through appropriate operation and maintenance 
procedures applied to the PTE system.''
    Response: At proposal, we stated that the MACT floor determination 
for reconstituted wood products presses was based, in part, on the 
assumption that a sufficient number of these presses had enclosures 
that had been certified as PTE according to EPA Method 204. Presses 
equipped with Method 204 certified PTE would be allowed to claim 100 
percent capture efficiency, and thus, the rule requirements (e.g., 90 
percent emissions reductions) would effectively apply only to the 
captured emissions.
    Based on our review of available permit information, we agree with 
the commenters' assessment that few permits have required full Method 
204 certification for reconstituted wood products press enclosures, 
even though many of these press enclosures were constructed based on 
the Method 204 design criteria. We also agree that the nature of the 
batch pressing operations in the PCWP industry can make Method 204 
certification difficult. Unlike in the printing and publishing 
industry, for which Method 204 was originally developed, batch PCWP 
presses are heated, cyclical operations. Because of the internal 
pressurization within PCWP press enclosures, small amounts of fugitive 
emissions may appear around the outside of these enclosures. The 
percentage of press emissions that may be escaping from some of these 
enclosures has not been quantified but is expected to be small based on 
available information. We understand the commenters' concern that, due 
to the presence of these small amounts of fugitive emissions, 
facilities cannot certify that their Method 204 designed press 
enclosure can achieve all the Method 204 criteria, in particular the 
criteria in Method 204 section 6.2 which states that ``All VOC 
emissions must be captured and contained for discharge through a 
control device.'' While we feel that PCWP press enclosures should be 
designed to capture emissions under normal operating conditions, we do 
not feel it is necessary for PCWP facilities to increase the flow rate 
from their press enclosures (and the size of their APCD) three to four 
times to overcome the pressurization within the press enclosure. For 
the PCWP industry, we feel it would be particularly inappropriate to 
require such a large increase in exhaust flow to the APCD because the 
exhaust flows from PCWP process equipment, including presses, are 
already high volume, low concentration emission streams. High volume, 
low concentration exhaust streams generally are more costly to treat 
than low volume, high concentration emission streams. The best-
performing press enclosures that defined the MACT floor surround heated 
presses and are all expected to have pressurization within the press 
enclosure. In addition, we note that board cooler exhaust is sometimes 
directed into press enclosures and that enclosures around board coolers 
have not been certified according to EPA Method 204.
    Therefore, instead of requiring EPA Method 204 certification of 
PCWP press and board cooler enclosures as proposed, today's final rule 
sets forth slightly different criteria for press and board cooler 
enclosures. These criteria are based on the design criteria for PTE 
included in EPA Method 204, as recommended by the commenters; however, 
the criterion to capture and contain all VOC emissions has been 
replaced with a requirement that the enclosure be ``designed and 
maintained to capture all emissions for discharge through a control 
device.'' To effect this change, we removed references to PTE in the 
final rule and replaced the proposed definition of PTE with a new 
definition of ``wood products enclosure'' that lists the design 
criteria that must be met to comply with MACT. Enclosures that meet the 
definition of wood products enclosure do not have to test to determine 
the capture efficiency of these enclosures, but can assume 100 percent 
capture, such that the control requirements (e.g., 90 percent 
reduction) apply only to the captured emissions (i.e., the small amount 
of fugitive emissions outside the enclosure is disregarded).
    We also replaced the proposed definition of ``partial enclosure'' 
with a slightly revised definition of ``partial wood products 
enclosure'' to eliminate any references to PTE in the final rule. 
Because the capture efficiency of partial wood products enclosures is 
unknown, today's final rule requires facilities to test the capture 
efficiency of partial wood products enclosures using EPA Methods 204 
and 204A-F (as appropriate), or using the alternative tracer gas 
procedure included in appendix A to subpart DDDD of 40 CFR part 63. In 
addition, facilities have the option of using other methods for 
determining capture efficiency subject to the approval of the 
Administrator. As was proposed and suggested by the commenters, today's 
final rule requires facilities using partial wood products enclosures 
to demonstrate a combined 90 percent capture and control efficiency for 
those facilities showing

[[Page 45967]]

compliance with the percent reduction requirements for APCD. If the 
partial wood products enclosure does not achieve high capture 
efficiency, then facilities must offset the needed capture efficiency 
by achieving a higher destruction efficiency or with emissions 
averaging (with the press being an under-controlled process unit).
    Comment: One commenter objected to the proposed MACT floor for 
continuous presses and questioned the applicability of EPA Method 204 
to continuous presses. The commenter requested that we divide 
continuous and batch presses into two different process unit groups for 
the purpose of determining the MACT floor. The commenter provided 
information from environmental engineering firms and press 
manufacturers regarding the fundamental differences between the two 
types of presses. The commenter noted that continuous presses are much 
longer than batch presses, reaching lengths of 200 feet (ft), which 
makes them difficult to completely enclose. The commenter was unaware 
of any continuous presses that have Method 204 certified PTE. The 
commenter stated that enclosing a continuous press would cause 
operational problems, such as heat build-up and impaired visibility, 
which can lead to mechanical failures and unscheduled downtime. The 
commenter also cited potential safety concerns, such as increased fire 
risk and the possibility of unhealthy levels of HAP trapped inside the 
enclosure. The commenter further noted that the capital and operating 
costs of PTE applied to continuous presses would exceed those 
associated with batch presses due to the large size of the enclosure 
and the increased maintenance costs resulting from heat build-up within 
the enclosure. In addition, the commenter provided VOC emissions data 
based on measurements made at different points along the length of one 
of their continuous presses to demonstrate that emissions from the 
front stages are minimal and that the majority of emissions are from 
the last 40 percent of the press length, referred to as the 
``decompression zone.'' The commenter contended that gathering the 
emissions from all stages of the continuous press will result in a more 
dilute stream, which will be less cost-effective to treat, and that the 
large volume of exhaust to be treated would likely preclude the use of 
biofilters, which are more practical for treating smaller volumes of air.
    To remedy the situation, the commenter recommended that we divide 
batch and continuous presses into two different process unit groups for 
the purpose of determining the MACT floor. Because there are fewer than 
30 continuous presses, the MACT floor for existing continuous presses 
would be determined based on the average emissions limitation achieved 
by the five best-performing continuous presses. The commenter provided 
information to support the commenter's contention that none of the 
continuous presses achieved 100 percent capture and suggested that the 
MACT floor for capture efficiency is 80 percent capture of emissions 
from the decompression stages.
    Response: As explained in the proposal preamble, we based the MACT 
floor determinations for PCWP equipment on process units that are 
similar with respect to design, operation, and emissions. We 
acknowledge that continuous presses have a different design than 
multiopening batch presses. However, continuous presses have emissions 
that are within the same range as those from batch presses on a lb/MSF 
of board basis. Therefore, we feel it is reasonable to group batch and 
continuous presses together for purposes of determining the MACT floor. 
The MACT floor for continuous presses would be the same as the MACT 
floor for batch presses regardless of whether batch and continuous 
presses were placed in separate equipment groups. As explained below, 
we disagree that the MACT floor capture efficiency for continuous 
presses is 80 percent, as suggested by the commenter.
    The commenter was incorrect in suggesting that there are no 
continuous presses with Method 204 certified PTE. The two existing 
press enclosures in the PCWP industry identified as being Method 204 
certified surround continuous presses. The lengths of these two 
continuous presses are 41.5 ft and 110 ft. Due to the presence of these 
presses plus additional continuous presses equipped with total 
enclosures not certified via Method 204, the MACT floor for new and 
existing continuous presses is still a total enclosure and 
incineration-based control or biofilter, regardless of whether or not 
batch and continuous presses are treated as separate equipment groups. 
In addition, there is a Method 204 certified PTE around a 181-ft 
continuous press at a newer PCWP facility (which was not included in 
original data collection efforts and the pre-proposal MACT floor 
determination); however, this press has had some operational problems 
associated with its PTE. It is not clear if the operational problems 
experienced by this 181-ft-long press are the result of poor PTE design 
or inherent technical difficulties associated with enclosing long 
continuous PCWP presses.
    Long continuous presses are generally being installed at new PCWP 
facilities, as opposed to being retrofit at existing facilities. Given 
that there is at least one long continuous press (110 ft) with a Method 
204 certified PTE that has not experienced operational problems with 
its press enclosure, we feel that wood products enclosures (as defined 
in today's final rule) can be designed around long continuous presses. 
We recognize that higher cost may be associated with wood products 
enclosures around long continuous presses than for batch presses, but 
the CAA does not allow us to consider cost at the MACT floor control level.
    We note that enclosures greater than 200 ft in length are common in 
the printing/publishing industry. However, we do recognize there are 
differences in the enclosures used in the printing/publishing industry 
and those in the PCWP industry. Although not cyclical in operation like 
batch presses, continuous presses are heated operations and may also 
have internal pressurization issues similar to those raised by the 
commenters for batch presses. Therefore, we feel it is appropriate for 
the same definition of wood products enclosure promulgated for batch 
presses to apply to long continuous presses as well (as opposed to 
Method 204 certification).
3. MACT Floor Determinations of No Emissions Reductions
    Comment: Industry commenters supported our proposed MACT floor 
determinations of no emissions reductions for some process units, 
arguing our approach was fully consistent with applicable case law in 
the U.S. Court of Appeals for the D.C. Circuit. EPA properly determined 
that the average of the best-performing 12 percent of certain existing 
PCWP process units did not reflect the use of any control technology, 
and that no other universally applicable variables would affect HAP 
emissions, industry commenters stated. The commenters also claimed that 
EPA looked at pollution prevention (P2) measures and other approaches 
to determining the MACT floor, found none that are universally 
applicable, and therefore was permitted to base a no emissions 
reduction floor on the PCWP record.
    Response: As explained in the proposal preamble and supporting 
documentation, for those process units not required to meet the control 
requirements in the PCWP rule as proposed, we determined that: (1) the 
MACT floor level of control is no

[[Page 45968]]

emissions reductions, and beyond-the-floor control options are too 
costly to be feasible; or (2) insufficient information is available to 
conclude that the MACT floor level of control is represented by any 
emissions reductions. We based our MACT floor determinations for PCWP 
emission sources on the presence or absence of an add-on air pollution 
control device because we are not aware of any demonstrated P2 
techniques that can be universally applied across the industry, and we 
have no information on the degree of emissions reduction that can be 
achieved through P2 measures. Therefore, to our knowledge the use of 
add-on controls is the only way in which PCWP sources can currently 
limit HAP emissions, and the only way to identify the MACT floor for 
these sources is to identify a level that corresponds to that achieved 
by the use of add-on controls. When determining the MACT floor, we 
ranked the process units by control device rather than by actual unit-
specific emissions reductions because we have limited inlet/outlet 
emissions data. Based on the available information, we are not aware of 
any significant design or operational differences among each type of 
control system evaluated that would affect the ranking of process 
units. Furthermore, we are not aware of factors other than the type of 
control system used that would significantly affect the ranking of 
process units. An analysis of the available emissions data does not 
reveal any process variables that can be manipulated (without altering 
the product) to achieve a quantifiable reduction in emissions. Ranking 
process units according to control device, we determined that the MACT 
floor is no emissions reductions for several process unit groups 
including press predryers, fiberboard mat dryers, and board coolers at 
existing affected sources; and dry rotary dryers, veneer redryers, 
softwood plywood presses, hardwood plywood presses, engineered wood 
products presses, hardwood veneer dryers, humidifiers, atmospheric 
refiners, formers, blenders, rotary agricultural fiber dryers, 
agricultural fiber board presses, sanders, saws, fiber washers, 
chippers, log vats, lumber kilns, storage tanks, wastewater operations, 
miscellaneous coating operations, and stand-alone digesters at new and 
existing affected sources. As explained in the promulgation BID and 
supporting documentation, we also determined that beyond-the-floor 
control options are too costly for these process unit groups.
    At proposal, we requested comment on whether no emissions 
reductions for miscellaneous coating operations and for wastewater 
operations is appropriate (68 FR 1276, January 9, 2003). We also 
requested that commenters on this issue submit any information they 
might have on HAP or VOC emissions from miscellaneous coating 
operations and wastewater operations. However, no additional 
information on these operations was received from any of the commenters 
on the proposed rule. Following proposal, we reviewed our MACT analyses 
for miscellaneous coating and wastewater operations, as described in 
the following paragraphs and in the promulgation BID and supporting 
documentation. For miscellaneous coating operations, we gathered some 
additional information and were able to revise our conclusions 
regarding MACT in the absence of specific information on the emissions 
reduction achieved. However, we have no more reason to feel now than we 
did at proposal that PCWP wastewater operations are in fact subject to 
any emission control measures.
    Based on the available information, we have no basis to conclude 
that the MACT floor for new or existing sources is represented by any 
emission reductions for several of miscellaneous coating processes 
(i.e., anti-skid coatings, primers, wood patches applied to plywood, 
concrete forming oil, veneer composing, and fire retardants applied 
during forming), and we determined that there are no cost-effective 
beyond-the-floor measures to reduce HAP from these coating processes. 
However, some facilities reported use of water-based (non-HAP) coatings 
in their MACT survey responses for other types of coatings (including 
edge seals, nail lines, logo paint, shelving edge fillers, and 
trademark/gradestamp inks). Other facilities reported use of solvent-
based coatings for these processes. In some instances, a few 
respondents provided information on the percent HAP content of a 
solvent-based coating. Solvent-based coatings do not always contain HAP 
(e.g., the solvent may be mineral oil which does not contain HAP), and 
water-based coatings typically do not contain HAP. Thus, many of the 
coatings reported in the MACT survey responses are non-HAP coatings. 
While the emission reduction achieved as a result of coating 
substitutions cannot be determined, it is clear that use of non-HAP 
coatings represents the MACT floor because of the large number of 
facilities reporting use of non-HAP coatings. Beyond-the-floor options 
were not considered for edge seals, nail lines, logo paint, shelving 
edge fillers, and trademark/gradestamp inks because no further 
emissions reductions can be achieved than through use of non-HAP 
coatings. Based upon our revised MACT analysis, the final PCWP rule 
requires use of non-HAP coating for processes identified as group 1 
miscellaneous coating processes.
    The definition of non-HAP coating included in the final rule was 
based on the description of non-HAP coatings in the final WBP NESHAP 
(subpart QQQQ to 40 CFR part 63). This definition allows for 
unavoidable trace amounts of HAP that may be contained in the raw 
materials used to produce certain coatings. Through the definition of 
group 1 miscellaneous coatings in the final rule, kiln-dried lumber is 
excluded from the requirement to use non-HAP coatings because 
application of coatings used at kiln-dried lumber manufacturing 
facilities is not part of the PCWP source category. Although 
trademarks/gradestamps are applied to kiln-dried lumber, lumber kilns 
are the only processes at kiln-dried lumber manufacturing facilities 
covered under the PCWP source category.
    For wastewater operations, we concluded that we had insufficient 
information to conclude that the MACT floor level of control is 
represented by any emissions reductions. The available information on 
wastewater operations collected as part of the MACT survey of the PCWP 
industry and information contained in State permits indicated that 
these sources of emissions were not the subject of control requirements 
and were not expected to be significant sources of HAP or VOC 
emissions. As stated above, we received no comments containing 
additional information on emissions reduction measures or HAP/VOC 
emissions from wastewater operations. Thus, we have no more reason to 
feel now than we did at proposal that PCWP wastewater operations are in 
fact subject to any control measures. As a result, since no information 
shows that these PCWP operations use add-on controls, there is no 
identifiable numerical emissions level that would correspond to a MACT 
floor level reflecting the use of controls, and the only floor level 
demonstrable based on current data is no emissions reduction. 
Furthermore, given that our best data show that the emissions from 
wastewater operations are less than 1 ton/yr, we concluded that 
application of the control measures mentioned above would not be cost 
effective beyond-the-floor options. In response to the commenter's 
objection to the incompleteness of the data set for these PCWP 
operations, we note that the D.C. Circuit does not require EPA to 
obtain complete data as long as we are able to otherwise estimate the 
MACT floor

[[Page 45969]]

(Sierra Club v. EPA, 167 F.3d 658,662 (D.C. Cir. 1999)). Unlike dryers 
and presses at PCWP plants, wastewater operations have not been 
subjected by permitting authorities to controls for HAP emissions. We 
expended much effort in the early stages of the project gathering 
complete and accurate information on the PCWP processes with the most 
potential for HAP emissions and the greatest potential for emission 
control (i.e., the processes that have been the focus of permit 
requirements limiting HAP/VOC emissions) and the final PCWP rule 
addresses emissions from these process units.
    Had we been given reason to feel that there were emissions control 
measures associated with wastewater operations, we would have gathered 
more information for these processes earlier in the project. Even 
though we have determined that the current MACT floor for these PCWP 
operations is no emission reduction, since available information 
indicates they are not controlled, the HAP emissions from wastewater 
operations (and other PCWP sources with MACT determinations reflecting 
no emissions reductions) will be considered further when we review 
residual risk as required under section 112(f).

E. New Source MACT

    Comment: One commenter objected to our determination that MACT is 
the same degree of control for new and existing sources for many 
process units based on the fact that the best technology is the same 
for new and existing sources (i.e., incineration-based controls or 
biofilters). The commenter pointed out that, according to the proposal 
BID, the maximum percent control efficiency is in the upper 90s for 
THC, formaldehyde, and methanol. The commenter noted that the CAA 
requires the MACT floor to be based on the degree of emissions 
reduction achieved in practice by the best-controlled similar source. 
Thus, the commenter requested that we revise the new source MACT 
requirements for process units based upon the greatest reductions recorded.
    Response: As explained in the preamble to the proposed rule and 
supporting documentation, the MACT floor for both new and existing 
sources is based on the estimate of the performance achieved through 
application of RTO, RCO, or biofilters. We acknowledge that some 
incineration-based controls and biofilters can achieve greater than 90 
percent reduction in HAP or THC during a single performance test or a 
test run within a performance test. However, we also recognize that the 
percent reduction achieved can vary according to pollutant inlet 
concentration, a factor that is not directly controllable from a 
process or control device standpoint. Other unknown factors may also 
cause variability in control system performance. For example, we have 
THC percent reduction data for an RTO used to control emissions from 
three tube dryers and a press at an MDF plant for two emission tests 
conducted at different times. In 1996, the RTO achieved 92.7 percent 
reduction of THC, and in 1998 the same RTO achieved 98.9 percent 
reduction of THC. In addition, we have emissions test data for the same 
process unit and control system for multiple years, and these data show 
different emission factors, indicating that variability is inherent 
within each process unit and control system combination. Thus, we 
estimate that the best MACT technology achieves 90 percent HAP 
reductions when variations in operations and measurements are considered.

F. Definition of Control Device

    Comment: Several commenters requested that we add scrubbers and 
adsorbers to the proposed definition of ``control device'' and that 
condensers be omitted from the definition. One of the commenters 
operates a particleboard press that is equipped with a condenser that 
condenses steam from the press exhaust and then routes the condensate 
to an onsite wastewater treatment system. The remaining noncondensed 
gases are combusted in an onsite boiler as supplemental fuel. This 
commenter would like to be able to comply with the PBCO for 
reconstituted wood products presses rather than demonstrate compliance 
with one of the add-on control system compliance options (e.g., 90 
percent emissions reduction) or emissions averaging provisions; 
however, the commenter noted that PBCO only apply to uncontrolled 
emission sources. Therefore, the commenter requested that the 
definition of control device be limited only to those add-on control 
systems that were designed with HAP removal as the primary goal.
    Response: We disagree with the commenters that the proposed 
definition of control device should be changed. The definition in the 
final rule does not include scrubbers or absorbers but does include 
condensers and combustion units that incinerate process unit exhausts. 
For purposes of MACT standards development, the reason a control device 
is installed is immaterial. All control devices or techniques that 
reduce HAP emissions are considered when setting MACT standards. We 
note that the PBCO were developed and included in the PCWP rule for 
inherently low-emitting process units or process units with P2 
techniques and not for process units with add-on control systems. 
Therefore, the particleboard press equipped with the condenser and 
combustion unit described by the commenter cannot comply using the PBCO.
    In the proposed PCWP rule, we intentionally omitted absorbers 
(e.g., wet scrubbers) from the list of potential control devices 
because these technologies generally are not reliable for reducing HAP 
emissions. These wet systems may achieve short-term reductions in THC 
or gaseous HAP emissions; however, the HAP and THC control efficiency 
data, which range from slightly positive to negative values, indicate 
that the ability of these wet systems to absorb water-soluble compounds 
(such as formaldehyde) diminishes as the recirculating scrubbing liquid 
becomes saturated with these compounds. We wished to limit the examples 
included in the definition of control device to those devices for which 
we have data to demonstrate that they are effective in reducing HAP 
emissions from PCWP facilities. However, we note that the definition 
includes the phrase ``but not limited to'' and does not exclude other 
types of controls. We are aware that new technologies (some of which 
may be adsorption-based or absorption-based) may be developed that 
effectively reduce HAP emissions from PCWP sources. The definition of 
control device does not prevent their development or use.
    Facilities using wet scrubbers or WESP to meet the add-on APCD or 
emissions averaging compliance options can petition the Administrator 
for approval of site-specific operating requirements to be used in 
demonstrating continuous compliance. Alternatively, facilities using a 
wet scrubber or WESP may use a THC CEMS to show that the THC 
concentration in the APCD exhaust remains below the minimum 
concentration established during the performance test. In addition, 
facilities using wet control devices (e.g., wet scrubber or WESP) as 
the sole means of reducing HAP emissions must submit with their 
Notification of Compliance Status a plan for review and approval to 
address how organic HAP captured in the wastewater from the wet control 
device are contained or destroyed to minimize re-release to the 
atmosphere such that the desired emission reduction is obtained. 
Because wet scrubbers or WESP are add-on

[[Page 45970]]

APCD and have variable effects on HAP emissions, today's final rule 
specifies that sources cannot use add-on control systems or wet control 
devices to meet PBCO. As part of this change, we added a definition of 
``wet control device'' to today's final rule. We note that PCWP 
facilities demonstrating compliance with the PBCO for process units 
equipped with any wet control device that effects HAP emissions must 
test prior to the wet control device.

G. Compliance Options

1. Add-On Control System Compliance Options
    Comment: We received a number of comments related to the six add-on 
control systems compliance options and how these options might be 
implemented at an actual PCWP facility. One commenter argued that the 
use of multiple compliance options for add-on control systems will make 
it difficult for State agencies to determine if a facility is actually 
in compliance. The commenter pointed out that, if a facility tested for 
two options but passed only one, it would still be in compliance. 
However, the commenter stated that the rule as proposed was unclear 
whether a facility would be in violation if the facility chose to test 
for one option, failed that test, and then conducted another test to 
determine compliance with a different option. The commenter contended 
that this would constitute a violation of the standard, and any 
retesting to determine compliance with a different option would not 
reverse the initial violation. Therefore, the commenter requested that 
we clarify that the option to use the most beneficial results of two or 
more test methods applies only when these tests are conducted during a 
single performance test. According to the commenter, any facility that 
chose to use only one test method during the compliance test would have 
to accept the results of that test.
    Other commenters argued that a facility should be able to switch 
among the six add-on control options as needed to maintain compliance. 
To illustrate the necessity of the ability to switch from one add-on 
control option to another, the commenters provided an example whereby 
the operator of a veneer dryer might want to demonstrate compliance 
with the 90 percent THC reduction option (option 1 in Table 1B to the 
final rule) under certain operating conditions and with the 20 parts 
per million by volume (ppmv) THC option (option 2 in Table 1B to the 
final rule) under other operating conditions. One of the commenters 
also noted that production starts and stops and minor malfunctions are 
common at PCWP facilities, and most of them do not affect the 
performance of the air pollution control device. However, frequent SSM 
events resulting in a low concentration to the inlet of the control 
device could affect a facility's ability to comply with the percent 
reduction option. In this case, the commenter stated that the freedom 
to switch compliance options would be valuable. For these reasons, the 
commenters requested that we explicitly state in the final PCWP rule 
that ``a facility only need comply with any one of the six options at 
any one time, and that it can change between them as needed to fit 
process operating conditions.''
    Response: We understand the commenters' concerns on this issue and 
have written the final rule to clarify our intentions regarding how the 
add-on control system compliance options should be implemented at PCWP 
facilities. The proposed rule states at 40 CFR 63.2240 that ``You 
cannot use multiple compliance options for a single process unit.'' We 
included this provision to prevent PCWP sources from partitioning 
emissions from a single process unit and then applying different 
control options to each portion of the emissions stream. The MACT floor 
determinations and compliance options were all based on the full flow 
of emissions from process units, and therefore, compliance options 
should be applied to the same mass of emissions to ensure that the 
required MACT floor emissions reductions are achieved. When including 
this restriction, we did not intend necessarily to limit PCWP 
facilities to only one of the six options for add-on control systems. 
We did assume that each source would likely select only one option, and 
that at any point in time for purposes of assessing compliance, the 
given compliance option would have been pre-selected and reflected as 
applicable in the source's permit. In fact, in discussions with 
industry representatives prior to proposal, they expressed concern that 
the final rule be written to make it clear that a source would only 
have to comply with one option and not all six.
    Based on available data, we expect that most facilities will be 
able to demonstrate compliance with more than one of the compliance 
options for add-on control systems. When developing the six compliance 
options for add-on control systems, we felt that PCWP facilities would 
conduct emissions testing (e.g., inlet and outlet testing for THC, 
methanol, and formaldehyde over a range of APCD operating temperatures) 
and then, based on the results of testing, select the option that 
provides them with the most operating flexibility as well as an 
acceptable compliance margin (i.e., select the option that they feel 
will be easiest for them to meet on a continuous basis under varying 
conditions). The operating parameter limit to be reflected in the 
source's permit (e.g., minimum temperature) would be based on the 
measurements made during the compliant test runs. For example, if test 
results show that a facility can achieve 90 percent reduction for 
formaldehyde, 92 percent reduction for methanol, and 94 percent 
reduction for THC, then the facility may decide to reduce THC emissions 
by 90 percent, since this option appears to provide the greatest 
compliance margin. The corresponding operating parameter level measured 
during the testing (e.g., minimum 15-minute RTO temperature during a 
three-run test) would then be set as the operating limit in the permit 
for that source. In this example, if the RTO operating temperature 
drops below the operating limit, that would be a deviation, and any 
subsequent retesting done by the facility would presumably be done 
based on the chosen compliance option (e.g., reduce THC emissions by 90 
percent). Determining compliance in this case is relatively 
straightforward. However, we are aware that State agencies may simply 
refer to a NESHAP as part of a permit and not stipulate which 
compliance option the facility must meet. In these cases, we agree with 
the commenter who was concerned that compliance can be complicated when 
the referenced NESHAP contains multiple options, and that such a broad 
reference would not be adequate to identify the particular option (and 
parameter operating limits) applicable to the source. We also agree 
that, if a facility selects multiple options under the compliance 
options for add-on control systems, it should be required to conduct 
all necessary testing associated with compliance with the selected 
options concurrently. In addition the facility should obtain permit 
terms reflecting these options as alternate operating scenarios that 
clearly identify at what points and under what conditions the different 
options apply, such that compliance can be determined during a single 
time frame. For example, if the source wishes to include options 1, 3, 
and 5 in their permit, then it must perform inlet and outlet testing 
for THC, methanol, and formaldehyde any time the State agency has 
reason to require a repeat performance test (if all three options are 
simultaneously applicable) or test for the single applicable option

[[Page 45971]]

that corresponds to the given time and condition (if the options apply 
as alternate operating scenarios under different conditions). With this 
approach, we would avoid situations where a facility retests to 
determine compliance with a compliance option, fails to demonstrate 
compliance with that option, and then conducts additional testing to 
determine compliance with other options that are not pre-established as 
applicable at a later date.
    The final rule clarifies our intentions regarding the use of 
multiple control options with respect to add-on control systems versus 
the combining of control options for a single process unit. The 
language in 40 CFR 63.2240 of the final rule has been modified to 
remove the proposed text stating that a source ``cannot use multiple 
compliance options for a single process unit'' and replace it with a 
statement that a source ``cannot combine compliance options in 
paragraphs (a) [PBCO], (b) [add-on control systems compliance options] 
or (c) [emissions averaging provisions] for a single process unit.'' We 
feel that this wording change clarifies our intention to prevent 
sources from applying different control options to different portions 
of the emissions from a single process unit, while leaving open the 
potential for PCWP facilities to be able to include multiple compliance 
options for add-on control systems (i.e., one option per defined 
operating condition) in a State permit. Although add-on controls are 
used in emissions averaging plans to achieve full or partial control of 
emissions from a given process unit, the emissions from a single 
process unit cannot be parceled such that a portion of the emissions 
meets one of the add-on control system compliance options and another 
portion is used as part of an EAP. The final rule continues to state 
that sources must meet at least one of the six options for add-on 
control systems.
2. PBCO Limits
    Comment: Several commenters requested that PCWP facilities be 
allowed to use add-on control methods to achieve the PBCO limits. The 
commenters argued that allowing compliance with the PBCO using APCD is 
consistent with other MACT rules and P2 approaches. According to the 
commenters, numerous NESHAP allow emissions limits to be reached using 
add-on controls, P2 techniques, or a combination of both. The 
commenters stated that there was no legal or policy basis for imposing 
restrictions on the use of PBCO in the PCWP MACT. The commenters also 
stated that using add-on controls to comply with PBCO will benefit 
facilities that have process units that emit low levels of HAP. 
According to the commenter, some companies have already implemented P2 
strategies that have been established as BACT in a prevention of 
significant deterioration (PSD) permit. Because these P2 strategies may 
fall short of the PBCO, companies implementing these strategies would 
be unable to achieve compliance with the proposed rule without 
abandoning the P2 strategy and installing full control. The commenters 
also stated that incorporating add-on controls in the PBCO would 
provide incentives to find low-energy pollution control equipment. The 
commenters gave an example whereby part of the emission unit exhaust 
could be used as combustion air for an onsite boiler. The commenters 
noted that in most cases, the boiler could only handle a portion of the 
exhaust from multiple dryer stacks. The commenters stated that by 
combining this type of partial control approach with low-temperature 
drying, a facility may be able to meet the applicable dryer PBCO limit. 
According to the commenters, in this case, allowing for partial control 
would exclude the need for RTO technology and would provide a net 
benefit to the environment with a reduction of collateral oxidizer 
emissions. The commenters gave another example in which a facility with 
a conveyor strand dryer could send the exhaust from the first dryer 
section to a burner and then send the heat back to the dryer; the 
emissions from the remaining dryer sections would be uncontrolled if 
the total emissions were below the PBCO limit. In a third example 
provided by the commenters, a facility would remove enough HAP to 
comply with the PBCO limit using a scrubber, which would require less 
energy than incineration.
    Response: As in the proposed rule, the final rule does not allow 
sources to comply with the PBCO through the use of add-on control 
systems. Our intention for including the PBCO was to provide an 
alternative to add-on controls (e.g., allow for and encourage the 
exploration of P2, which currently has not been demonstrated as 
achieved by PCWP sources) and not to create another compliance option 
for sources equipped with add-on control systems that could 
inadvertently allow add-on control equipped systems to not perform to 
expected control efficiencies. Sources equipped with add-on control 
systems already have six different compliance options from which to 
choose, in addition to the emissions averaging compliance option. We 
note that the six options for add-on control systems are based on 
emissions reductions achievable with MACT control devices and thus are 
a measure of the performance of MACT control devices. This might not be 
true if a source combined PBCO and add-on controls, as explained below.
    At proposal, we established PBCO limits for 10 process unit groups. 
Initially, we felt that we needed total HAP data for at least one 
process unit in each process unit group that was equipped with a 
control system in order to establish the PBCO limits. However, we had 
to discard this approach because controlled total HAP data are not 
available for half (5 of 10) of the process unit groups. We developed a 
number of other approaches to establishing PBCO, and then compared the 
results of these approaches, where possible, with actual emissions in 
the outlet of MACT control devices. The approach that yielded results 
closest to actual emissions in the control device outlets was an 
approach based on a 90 percent reduction from the average emissions 
each process unit group. Thus, this approach was the one that resulted 
in limits that would most closely represent an alternative to the six 
compliance options for add-on control systems. However, our intention 
was not to develop an alternative limit to the six limits already 
established for add-on control devices. Our intention was to develop an 
alternative for P2 techniques. We decided to select an approach that 
allows sources that develop P2 techniques (or are otherwise inherently 
low-emitting sources) to comply and that reduces HAP emissions without 
generating the NOX emissions associated with incineration-
based controls. As a result, we selected a 90 percent reduction from 
the highest data point within each process unit group, because the 
results appeared to be at levels that would not preclude the 
development of environmentally beneficial P2 options as MACT.
    If PBCO were allowed as another option for measuring the 
performance of add-on control devices, operators could run the APCD so 
that the APCD would not achieve MACT level emissions reductions, but 
would meet the PBCO. We note that we did not develop the methanol and 
formaldehyde add-on control options (options 4 and 6 in Table 1B to the 
final rule) based on typical or maximum levels of methanol and 
formaldehyde found in the outlet of the control devices, but instead 
looked at the performance of the MACT control devices in reducing these 
HAP, set the levels based on the method detection limits for these 
compounds, and

[[Page 45972]]

included a minimum inlet concentration requirement for the use of the 
outlet concentration options to ensure that HAP emissions reductions 
are achieved. Allowing the use of APCD to comply with PBCO could allow 
circumvention of such optimization, which could render the MACT control 
itself to be less effective than MACT.
    Regarding the other MACT standards referenced by the commenters, we 
agree that these other rules may allow facilities more flexibility in 
meeting a production-based option (e.g., ``lb/ton'' emission limit); 
however, we cannot allow add-on controls to be used to meet the PBCO in 
the final PCWP rule because doing so would render these limits not 
equivalent to the other compliance options. For example, consider a 
typical wood products press with an annual production rate of 100 
million square feet of board per year and a total HAP emission rate of 
1.0 pound per thousand square feet of board on a \3/4\-inch basis (lb/
MSF \3/4\''). On an annual basis, the example press emits 50 tons of 
HAP per year. If the example press complies with the 90 percent HAP 
reduction requirement, then the HAP emissions reductions achieved will 
be at least 45 tons/yr. However, if this same press were allowed to 
comply with the applicable PBCO limit (0.30 lb/MSF \3/4\'') using an 
APCD (e.g., RTO), then the emissions reductions achieved could be as 
little as 35 tons/yr if the APCD is only applied to a portion of the 
press' emissions or if the APCD is not operated at MACT-level 
efficiency. Not only would a significantly lower HAP emission reduction 
be achieved in this situation, but there also would not be any net 
benefit to the environment to justify the lower HAP reduction (i.e., 
NOX emissions would still be created). Therefore, we feel it 
is appropriate and in keeping with the MACT floor to require PCWP 
process units with uncontrolled HAP emissions above the PBCO thresholds 
to achieve the full 90 percent reduction in emissions. We also wish to 
clarify that a PCWP facility may use any number of compliance options, 
as long as these options are not combined for an individual process 
unit. For example, a facility may choose to meet the applicable PBCO 
limit for one dryer, control emissions from a blender to avoid 
controlling emissions on the remaining two dryers as part of an 
emissions average, and comply with one of the add-on control systems 
compliance options for the press.
    Regarding the examples cited by the commenter as candidates for a 
PBCO if add-on controls were allowed, we note that the final rule 
includes a revised MACT floor for existing conveyor strand dryers, such 
that existing conveyor strand dryers that send the emissions from the 
first dryer section back to the combustion unit that heats the dryer 
should be able to meet the rule requirements without additional 
controls. In addition, partial control (e.g., routing part of the 
emission stream from a process unit to an onsite combustion unit for 
incineration) is allowed as part of an EAP as long as the actual 
emissions reductions achieved are greater than or equal to the required 
emissions reductions. When partial control is used as part of an EAP, 
the overall reductions are equivalent to what would be achieved if a 
source elected to comply using the add-on control system compliance 
options; however, the same would not be true if partial control were 
used to comply with a PBCO limit. Therefore partial incineration 
control is not allowed in the PBCO.
    Regarding the use of scrubbers to comply with a PBCO, as stated 
earlier in this preamble, the PCWP industry's own data do not support 
wet scrubbers as a reliable control technology for HAP, and sources 
equipped with wet control devices will be required to test prior to the 
wet control device if they elect to comply with a PBCO.
    Comment: Several commenters stated that PCWP facilities should be 
allowed to neglect nondetect HAP measurements for PBCO calculations. 
The commenters argued that if a facility is forced to use values of 
one-half the detection limit for nondetect HAP, that facility may be 
unable to use PBCO because the mass of emissions attributed to 
undetected compounds may consume 50 percent or more of the PBCO limit. 
The commenters also noted that the detection levels measured in the 
field by the NCASI test method, NCASI IM/CAN/WP-99.01, generally range 
between 0.35 and 1 ppm, and the detection levels of the FTIR method 
averages about 1 ppm. According to the commenters, even at these low 
concentrations, using one-half the detection limit for nondetect 
compounds can put the PBCO out of reach for a high-flow-rate PCWP 
stream. The commenters also provided a sample calculation to 
demonstrate the effect that the detection level has on the compliance 
calculation.
    Response: In responding to this request, we reviewed the 
information supplied by the commenters and analyzed the potential 
effects of making the requested change using available emissions data. 
After reviewing the total HAP data used to establish the PBCO limits, 
we decided that sources should be able to treat nondetect measurements 
for an individual HAP as zero for the sole purpose of determining 
compliance with the PBCO, if, and only if, the following two conditions 
are met: (1) The detection limit for that pollutant is set at a value 
that is less than or equal to 1 ppmvd, and (2) emissions of that 
pollutant are nondetect for all three test runs. We included the first 
condition to prevent test contractors from setting the detection limits 
too high, and thus generating false zeroes. We selected 1 ppmvd as the 
maximum detection limit value because it matches the detection limits 
achievable with the test methods included in the final PCWP rule. We 
included the second condition to ensure that the source is truly low-
emitting, as evidenced by three nondetect test runs. If emissions of 
the HAP are detected during any one test run, then any nondetect runs 
must be treated as being equal to one-half the detection limit. The 
option to treat nondetect measurements as zero does not apply to the 
compliance options for add-on control systems because treating the 
outlet emissions from a control device as zero would artificially 
increase the calculated control efficiency for that pollutant to 100 
percent.
    To ensure that the PBCO limits were developed in a manner 
consistent with how they would be applied, the PBCO limits were 
recalculated using zero for nondetect measurements when all test runs 
were nondetect. As a result, the PBCO limit for reconstituted wood 
product board coolers changed from 0.015 to 0.014 lb/MSF \3/4\''. No 
other PBCO limits changed as a result of using zero for nondetects when 
calculating the PBCO limits.
    We added a new PBCO limit to the final rule for secondary tube 
dryers. This new limit corresponds to our decision to treat primary and 
secondary tube dryers as separate process units, as discussed 
previously in this preamble. The final rule also differentiates between 
rotary strand dryers and conveyor strand dryers, as discussed 
previously in this preamble; however, no new PBCO limits have been 
added for these two process units groups. The final PBCO limit for 
rotary strand dryers is the same as the proposed limit for strand 
dryers because the data used to establish the proposed PBCO limit was 
based on data from rotary strand dryers exclusively. We do not have the 
necessary data to establish a PBCO for conveyor strand dryers, and thus 
the final rule does not include a PBCO limit for that process unit group.
3. Emissions Averaging Provisions
    Comment: Industry commenters generally expressed support for the

[[Page 45973]]

inclusion of an emissions averaging program in the PCWP rule as 
proposed, but requested that the proposed provisions be modified to 
allow for broader use of emissions averaging at PCWP facilities. 
Requested modifications include allowing sources to receive credit for 
achieving emissions reductions greater than 90 percent; basing 
compliance on a single pollutant; allowing sources to combine emissions 
averaging with PBCO; and allowing sources to receive credit for P2 
alternatives as part of an EAP.
    Response: We included an emission averaging compliance option in 
the proposed rule as an equivalent, more flexible, and less costly 
alternative to the compliance options for add-on control systems. 
Unlike previous MACT standards with emissions averaging, the proposed 
(and final) emissions averaging provisions in the PCWP rule do not 
include (1) limits on the number of sources that can be included in an 
emissions average, (2) requirements for a hazard or risk analysis, or 
(3) application of a 10 percent discount factor to emissions credit 
calculations. In addition, the emissions averaging provisions in the 
final PCWP rule require that credits for emissions reductions be 
achieved using APCD, and that the EAP be based on emissions of the six 
predominant HAP emitted from PCWP process units, referred to as total 
HAP. Also, the emissions averaging provisions do not allow credit for 
reductions beyond 90 percent.
    We disagree with the commenters' request to allow credit for 
achieving greater than 90 percent control of HAP as part of an EAP. We 
note that the 90 percent MACT floor level (upon which the emissions 
averaging provisions are based) reflects the inherent variability in 
uncontrolled emissions from PCWP process units and the decline in 
performance of control devices applied to these process units. The data 
set used to establish the MACT floor is composed of point-in-time test 
reports, some of which show a greater than 90 percent control 
efficiency; however, we selected 90 percent as the MACT floor level of 
control to reflect inherent performance variability. Therefore, it 
would be inappropriate to allow PCWP facilities to receive credit for 
similar point-in-time performance tests showing greater than 90 percent 
control, considering that the same types of control technologies would 
be used.
    Regarding the commenters' request to allow credit for greater than 
90 percent control for those sources with no MACT control requirements, 
we maintain that this would be inappropriate because the same issues of 
emissions variability and control device performance apply to those 
emission sources, and they likely would share control devices with PCWP 
process units that do have MACT control requirements.
    We have rejected the commenters' suggestion to base the emissions 
averaging provisions on a single pollutant (e.g., THC, methanol or 
formaldehyde), and retained the requirement in the final rule that the 
EAP must be based on total HAP. The predominant HAP emitted from a 
given process unit varies, with some process units emitting methanol as 
the predominant HAP and others emitting formaldehyde or acetaldehyde as 
the predominant HAP. However, the predominant HAP will always be one of 
the six we have identified in the definition of total HAP in the final 
PCWP rule. If we based the EAP on only one pollutant, process units 
that emit the target HAP in small quantities will not be correctly 
accounted for in the EAP, resulting in potentially less stringent 
control and greater potential risk than would result with other control 
options. As noted above, we did not include a hazard/risk study as part 
of the proposed EAP because we were requiring that the emissions 
reductions be based on total HAP, and PCWP process units generally emit 
the same six primary HAP, although in different quantities and ratios. 
Basing the EAP on a single pollutant would eliminate our rationale for 
not requiring a risk analysis. We also note that, while THC emissions 
are an acceptable surrogate for monitoring the performance of an add-on 
control device (same control device mechanisms that reduce THC 
emissions reduce HAP emissions), THC emissions are not an accurate 
surrogate for establishing baseline HAP emissions for uncontrolled 
process units, and thus the EAP should not be based solely on THC 
emissions. Although all PCWP process units emit THC, uncontrolled THC 
emissions from softwoods are substantially higher than from hardwoods 
due to non-HAP compounds (e.g., pinenes) present in softwoods. 
Therefore, allowing sources without add-on controls to focus on THC 
reductions achieved by increasing hardwood usage might reduce THC 
emissions but would have a minimal impact on HAP emissions. For these 
reasons, we feel that, for the purpose of the final rulemaking, THC 
should only be used as a surrogate for HAP when assessing the 
performance of an add-on control device, and should not be used as a 
surrogate for establishing the required and actual mass removal of HAP 
as part of an EAP.
    We disagree with the commenters that combining the emissions 
averaging option and PBCO will result in equivalent emissions 
reductions. As we stated in our response to previous comments in this 
section regarding PBCO, we developed the PBCO limits to provide an 
option for sources that develop P2 techniques. The PBCO limits 
represent applicability cutoffs such that sources with emissions below 
the applicable PBCO thresholds are not required to further reduce those 
emissions below MACT levels. By combining PBCO limits with the EAP, as 
proposed by the commenter, we would be allowing higher-emitting sources 
(i.e., those that cannot meet a PBCO and which should be controlled) to 
escape controls by artificially lowering their emissions (using the 
credits from the EAP) to levels that would qualify as low-emitting 
(below PBCO limits). This is counter to the intent of the PBCO and 
would result in lower emissions reductions than would be achieved 
without combining these two compliance options; therefore, this does 
not represent an option that is equivalent to the MACT floor and is not 
allowed in the final rule.
    We also disagree with the commenters' suggestion to modify the 
emissions averaging provisions to allow sources to receive credit for 
P2 projects because: (1) Compliance options (i.e., PBCO) already exist 
for any P2 projects that prove feasible, and (2) inclusion of currently 
undemonstrated P2 projects within EAP would unnecessarily complicate 
these plans and hamper enforcement. As we noted previously in this 
preamble, the final rule allows PCWP facilities to use both P2 (i.e., 
the PBCO) and emissions averaging at the same facility; sources are 
only limited in that they cannot apply both options to the same process 
unit. We also disagree with the commenters' assertion that quantifying 
the emissions reductions from P2 projects would not be difficult. 
Quantifying the emissions reductions associated with P2 projects has 
historically been a contentious issue, especially when a baseline 
emission level must be established from which to calculate the 
emissions reduction. We feel that the same issues apply for PCWP 
facilities, especially given the fact that P2 techniques have not been 
widely used or documented in the PCWP industry. In contrast, emissions 
reductions achieved through the use of add-on control systems are 
easily documented. The PBCO were established to address the future 
development and implementation of P2 techniques; however, the resultant

[[Page 45974]]

PBCO limits do not require that emissions reductions be determined. 
Instead, sources simply demonstrate that they are below the PBCO limit 
and will continue to operate in a manner that ensures they will remain 
below the PBCO limit.
    Regarding the suggested P2 option of increasing a facility's use of 
hardwood species, in addressing other issues, commenters stressed the 
difficulties associated with maintaining a consistent wood material 
flow in terms of species, moisture content, etc., which would suggest 
that an operating condition based on maintaining a set level of wood 
species would be unworkable. Furthermore, for veneer dryers, where 
species identification (hardwood vs. softwood), and thus enforcement, 
is fairly straightforward from the standpoint of both visual inspection 
and end-product, we have already established separate MACT floors for 
softwood and hardwood veneer dryers (and require no further emissions 
reductions from hardwood veneer dryers). When the end product is 
particleboard or MDF, and the raw material is in the form of wood 
chips, planer shavings, or sawdust, determining how much of that 
material is softwood versus hardwood would be very difficult, and 
likely unenforceable. Because of commenters' concerns that an operating 
condition based on wood species is technically unworkable and the 
associated enforcement issues, we feel this option is not viable.
    Regarding process changes such as reformulation, lowering dryer 
temperature, and routing process unit exhaust to existing combustion 
devices, the final rule already includes compliance options that would 
accommodate all of these strategies. For example, product reformulation 
and lowering dryer temperature are potential P2 options, and the PBCO 
limits would apply if the P2 efforts sufficiently lower emissions. The 
final PCWP rule distinguishes between green (high temperature, high 
moisture) rotary dryers and dry (low temperature, low moisture) rotary 
dryers and requires no further emissions reductions from dry rotary 
dryers. Regarding the use of existing combustion units as control 
devices, the final rule allows sources to route emissions to onsite 
combustion units for incineration. The final rule also allows sources 
to control a portion of a process unit's emission stream as part of an 
emissions average. However, we disagree that incineration of emissions 
in onsite process units is a P2 measure. Therefore, compliance with the 
PBCO using process incineration is not allowed in the final rule. The 
add-on control system and emissions averaging compliance options are 
available for process units controlled by routing exhaust to an onsite 
combustion unit.
    The final PCWP rule does not allow production curtailment to be 
counted as part of an EAP. As stated in the preamble to the proposed 
rule (68 FR 1276, January 9, 2003), we do not have facility-wide 
uncontrolled emissions data and facility-wide controlled emissions data 
for each PCWP facility to determine the baseline emissions and percent 
reduction in HAP achieved by each facility. Therefore, the MACT floor 
is not based on facility-wide emissions and emissions reductions 
achieved during year ``x.'' Instead, the MACT floor is based on (1) the 
presence or absence of certain MACT controls (in place as of April 
2000) on certain types of process units and (2) test data showing that 
these controls reduce emissions by greater than or equal to 90 percent. 
We applied the MACT floor methodology at the process unit level because 
we had the most accurate data at the process-unit level, making this 
approach the most technically and legally sound. The PCWP industry is 
very dynamic, with frequent shutdowns of equipment for maintenance, and 
occasionally longer shutdowns (e.g., month-long), if demand drops. The 
final PCWP rule requires emissions from specified process units at 
impacted PCWP facilities to be reduced by 90 percent, regardless of 
what the levels of emissions are for those facilities in a particular 
year. Therefore, implementation of the final PCWP rule at individual 
PCWP facilities will result in greater emissions reductions in years of 
greater production and lesser emissions reductions during years of 
lower production. As mentioned in the response to the previous comment, 
the emissions averaging provisions must achieve emissions reductions 
that are greater than or equal to those that would be achieved using 
the add-on control system compliance options, which specify which 
process units must be controlled. If we allowed credit for production 
curtailments, the overall emissions reductions achieved through the 
emissions averaging provisions would not be equivalent to what would be 
achieved through the use of the add-on control system compliance 
options, and therefore, the EAP would not be a MACT-equivalent 
alternative. For example, if we allowed production curtailments to 
count toward an emissions average, then a facility that shuts down one 
of two parallel production lines (each of which includes dryers and a 
press, plus HAP-emitting equipment that does not have associated 
control requirements) may not be required to control the emissions from 
any of the dryers or press on the remaining production line. However, 
if the same facility opted to comply with the add-on control system 
compliance options, then it would be required to control the press and 
dryer emissions from the remaining production line by 90 percent 
regardless of whether or not the other production line was shut down. 
In order to maintain equivalency between the emissions averaging 
provisions and the add-on control system compliance options and to 
preserve the required HAP emissions reductions, the final PCWP rule 
does not allow production curtailment to be counted as part of an EAP.
    Comment: One commenter objected to the inclusion of the emissions 
averaging option in the rule primarily because of the lack of a 
requirement to conduct a hazard or risk study. This commenter asserted 
that removing a certain mass of HAP regardless of identity is not 
equivalent to the other compliance options, and when the dose-response 
and exposure data are examined, it should be obvious that trading one 
HAP for another to meet a RMR is not an acceptable option. The 
commenter noted that there are currently no methods for weighting the 
toxicity of HAP and that the effects of simultaneous exposure to 
several HAP also are unknown.
    Response: We disagree with commenter's assertion that inclusion of 
the emissions averaging provisions will potentially increase toxic 
emissions at certain PCWP process units. As stated in the preamble to 
the proposed rule (68 FR 1289, January 9, 2003), PCWP facilities have 
fewer pollutants of concern (as compared to HON facilities) and are 
likely to have similar HAP emissions from the emission points (process 
units) that would be used to generate debits and credits. The PCWP 
facilities emit six primary HAP, whereas HON facilities may emit over 
140 different HAP. The PCWP facilities choosing to comply through 
emission averaging must account for the emissions of the six primary 
HAP (total HAP), which represent greater than 96 percent of the mass of 
HAP emitted from PCWP process units. Because the MACT control 
technologies are effective in reducing the emissions of all six of 
these HAP, and the emissions averaging provisions require the use of 
add-on control technologies for credit-generating sources in an EAP, we 
feel that the emissions averaging provisions will achieve a hazard/risk 
benefit

[[Page 45975]]

comparable to what would be achieved through point-by-point compliance. 
Although the final rule does not require a hazard/risk study, States 
will still have the discretion to require a PCWP facility that 
requested approval of an EAP to conduct a hazard/risk study (or could 
preclude the facility from using emissions averaging altogether).
    Comment: Several commenters requested that we write the definitions 
of some of the variables used in the emissions averaging equations in 
the final rule to clarify that sources can take credit for emission 
reductions achieved through partial control of debit-generating process 
units.
    Response: We agree with the commenters' request and have written 
the definitions of some of the variables used in the emissions 
averaging equations in today's final rule to clarify that partial 
credits generated from debit-generating process units that are 
undercontrolled can be included in the calculation of the AMR. For 
example, a PCWP facility may decide to control 30 percent of the 
emissions from a green rotary dryer and 80 percent of the emissions 
from a blender as part of an EAP in order to achieve a HAP reduction 
that is the same as or greater than what the facility would have 
achieved by controlling the green dryer emissions alone by 90 percent. 
In this example, the green rotary dryer is a debit-generating unit 
because it has MACT control requirements; however, the green dryer can 
receive credit in the AMR calculation for any partial emissions 
reductions that are achieved.

H. Testing and Monitoring Requirements

1. Test Methods
    Comment: Several commenters noted that one of the NCASI test 
methods, NCASI IM/CAN/WP-99.01, has been updated, and requested that 
the final rule refer to the revised version. One of the commenters 
provided a revised version of the method, identified as NCASI IM/CAN/
WP-99.02. This commenter noted that the trained NCASI sampling team was 
able to get good consistent results with the original version of the 
method both in the laboratory and in the field, but that sampling 
contractors had difficulty obtaining valid results. The commenter 
maintained that the revised version is easier to understand, includes 
more details, and reflects the comments of the contractors that have 
experience with the original method. The commenter also stated that the 
quality assurance requirements were strengthened in the revised version 
to ensure good results. Several commenters also noted that NCASI is 
currently developing a new method for measuring the six HAP (total HAP) 
listed in the PCWP rule as proposed. Therefore, the commenters 
requested that we include language in the final rule that would allow 
PCWP facilities to use future methods once they have been reviewed by 
EPA and have passed Method 301 validation at a PCWP plant.
    Response: We reviewed the revised NCASI method IM/CAN/WP-99.02 
supplied by the commenter and agree that the revised method is 
appropriate for measurement of the six HAP that comprise ``total HAP;'' 
therefore, we have included NCASI IM/CAN/WP-99.02 in the today's final 
rule. Regarding the development of future test methods, if and when a 
new method for measuring HAP from PCWP sources is developed and 
validated via EPA Method 301, we will issue an amendment to the final 
rule to include the use of that method as an alternative to the methods 
included in the final rule for measuring total HAP (i.e., NCASI Method 
IM/CAN/WP/99.02 and EPA Method 320--Measurement of Vapor Phase Organic 
and Inorganic Emission by Extractive FTIR). In the meantime, if the new 
method is validated using Method 301, then the Method 301 results can 
be used to request approval to use the new method on a site-specific basis.
    Comment: Several commenters noted that the tracer gas method for 
determining capture efficiency, developed by a PCWP company and 
included in the proposed rule (68 FR 1276, appendix A to 40 CFR part 
63), is a work in progress. These commenters included with their 
comments a copy of field validation tests conducted at a PCWP facility. 
The commenters noted that future tests are planned using the tracer gas 
method and that the results of these tests should help EPA improve the 
use and application of the proposed tracer gas test.
    Response: We have reviewed the results of the first field 
validation test of the tracer gas method and note that the commenters 
did not provide any specific recommendations for modifying the tracer 
gas method as it was proposed. Therefore, other than a few minor 
wording changes, we did not make any substantive changes to the tracer 
gas method in the final rule. If the results of subsequent field tests 
demonstrate a need to (further) modify the tracer gas method, we will 
issue an amendment to the final rule to incorporate the necessary changes.
2. Sampling Locations
    Comment: Several commenters recommended that the final rule be 
reworded to clearly state that inlet sampling should take place at the 
functional inlet of a control device sequence or at the primary HAP 
control device inlet. For example, the commenters noted that the final 
rule needs to clarify that sampling should take place at the inlet of a 
WESP that precedes an RTO instead of between the two devices. The 
commenters noted that many WESP-RTO control systems are too closely 
coupled to allow for a sampling location in between that meets the 
requirements of Method 1 or 1A, 40 CFR 60, appendix A.
    Response: We agree with the commenters and have written the final 
PCWP rule to indicate that, for HAP-altering controls in sequence, such 
as a wet control device followed by a thermal oxidizer, sampling sites 
must be located at the functional inlet of the control sequence (e.g., 
prior to the wet control device) and at the outlet of the control 
sequence (e.g., thermal oxidizer outlet) and prior to any releases to 
the atmosphere. In addition, as discussed previously in this preamble, 
the final rule also clarifies that facilities demonstrating compliance 
with a PBCO limit for a process unit equipped with a wet control device 
must locate the sampling site prior to the wet control device.
3. Testing Under Representative Operating Conditions
    Comment: Several commenters objected to the proposed requirement to 
test process units under representative operating conditions. The 
commenters argued that, because the initial compliance tests determine 
the outer limits of compliance, those tests should be conducted at the 
boundaries of expected performance for the process and control units. 
These commenters noted that testing at representative conditions would 
not accurately simulate true operating conditions, and thus, the 
operating parameter limits would be too narrow. Therefore, the 
commenters contended that the final rule should specify that initial 
compliance tests should be conducted at the extremes of the expected 
operating range for the parameter and control device function. In 
addition, one of the commenters noted that the testing provisions 
should also address potential conflicts with traditional State 
requirements to test at maximum or design conditions.
    Response: The proposed rule defined representative operating 
conditions as

[[Page 45976]]

those conditions under which ``the process unit will typically be 
operating in the future, including use of a representative range of 
materials[* * *] and representative temperature ranges.'' We disagree 
that the proposed requirement to test under representative operating 
conditions will conflict with State requirements and result in 
operating parameter limits/ranges that are too narrow. We wish to 
clarify that the definition of representative operating conditions 
refers to the full range of conditions at which the process unit will 
be operating in the future. We expect that facilities will test under a 
variety of conditions, including upper and/or lower bounds, to better 
define the minimum or maximum operating parameter limit or broaden 
their operating limit ranges (where applicable). For example, if a 
facility generally operates a process unit (equipped with an RTO) under 
conditions that require the RTO to be operated at a minimum temperature 
of 1450[deg]F to ensure compliance with the standards, but at other 
times operates that process unit under conditions such that the minimum 
RTO operating temperature must be 1525[deg]F to ensure compliance, then 
the facility has two options. One option is for the facility to 
incorporate both of these operating conditions into their permit such 
that they are subject to two different operating parameter limits 
(minimum temperatures), one for each (defined) operating condition. As 
an alternative, the facility could decide to comply with the parameter 
limit associated with the worst-case operating conditions (most 
challenging conditions for the RTO), which in this example would 
correspond to maintaining a minimum RTO operating temperature of 
1525[deg]F, and thus, they could demonstrate continuous compliance 
regardless of the operating condition as long as they maintained the 
RTO temperature at or above 1525[deg]F. We have revised the monitoring 
requirements for process units without control devices to allow these 
sources to establish a range of compliant parameter values. In 
addition, those PCWP facilities operating biofilters must maintain 
their biofilter bed temperature within the range established during the 
initial performance test and, if available, previous performance tests. 
If the final PCWP rule required testing at maximum operating 
conditions, there would be no way for facilities to identify their 
operating parameter ranges. For these reasons, we maintain that the 
requirement to test at representative operating conditions is 
appropriate for the PCWP rule.
4. Process Incineration Monitoring Requirements
    Comment: Several commenters expressed approval for the proposed 
exemption from testing and monitoring requirements for those process 
units with emissions introduced into the flame zone of an onsite 
combustion unit with a capacity greater than or equal to 44 megawatts 
(MW) (150 million Btu/hr). In addition, several of these commenters 
requested that we expand upon this exemption in the final rule. First, 
the commenters requested that we extend the exemption to include 
situations where the process unit exhaust is introduced into the 
combustion unit with the combustion air. The commenters noted that we 
had included such exemptions in the HON (40 CFR part 63, subpart G) and 
in the Pulp and Paper Cluster Rule (40 CFR part 63, subpart S) in 
recognition of the fact that boilers greater than 44 MW typically had 
greater than \3/4\-second residence time, ran hotter than 1,500[deg]F, 
and usually had destruction efficiencies greater than 98 percent (see 
65 FR 3909, January 25, 2000, and 65 FR 80762, December 22, 2000, at 
Sec.  63.443(d)(4)(ii)). The commenters stated that the design and 
construction of PCWP boilers follow the same principles that would 
allow for these operating conditions. Second, the commenters requested 
that we also exempt smaller combustion units (less than 44 MW, or 150 
million Btu/hr) from the testing and monitoring requirements if the 
process unit exhaust is introduced into the flame zone of the 
combustion unit. The commenters noted that most of the combustion units 
associated at PCWP facilities are smaller units and that testing of 
these units can be complicated by their configuration and integration 
with other process units.
    Response: After reviewing available information on process 
incineration at PCWP facilities, we decided to include smaller 
combustion units in the exemption from testing and monitoring 
requirements if the process exhaust enters into the flame zone. As part 
of this change, we have included definitions of ``flame zone'' and 
``combustion unit'' in the final rule. However, we decided not to 
include an exemption for PCWP combustion units that introduce the 
process exhaust with the combustion air. As noted by the commenters, 
the HON and the final pulp and paper MACT I rule exempt from testing 
and monitoring requirements combustion devices with heat input capacity 
greater than or equal to 44 MW. The HON also exempts from testing and 
monitoring combustion devices with capacity less than 44 MW if the 
exhaust gas to be controlled enters with the primary fuel. If the 
exhaust gas to be controlled does not enter with the primary fuel, then 
testing and continuous monitoring of firebox temperature is required by 
the HON. Similarly, the final pulp and paper MACT I rule exempts from 
testing and monitoring requirements combustion devices (including 
recovery furnaces, lime kilns, boilers, or process heaters) with 
capacity less than 44 MW if the exhaust stream to be controlled enters 
into the flame zone or with the primary fuel. Similar to the HON and 
pulp and paper MACT I rules, the final PCWP rule extends the exemption 
from testing and monitoring requirements to combustion units with heat 
input capacity less than 44 MW, provided that the exhaust gas to be 
treated enters into the combustion unit flame zone. If the exhaust gas 
enters into the combustion unit flame zone, the required 90 percent 
control efficiency may be assumed. If the exhaust gas does not enter 
into the flame zone, then the testing and monitoring requirements for 
thermal oxidizers will apply.
    As noted by the commenter, the HON and the final pulp and paper 
MACT I rule exempted boilers (and recovery furnaces at pulp and paper 
mills) with heat input capacity greater than 44 MW from testing and 
monitoring requirements because performance data showed that these 
large boilers achieve at least 98 percent combustion of HAP when the 
emission streams are introduced with the primary fuel, into the flame 
zone, or with the combustion air. Lime kilns at pulp and paper mills 
were excluded from this provision because we did not have any data to 
show that lime kilns can achieve the required destruction efficiency 
when the HAP emission stream is introduced with the combustion air. 
Therefore, lime kilns at pulp and paper mills that accept HAP emission 
streams must introduce the stream into the flame zone or with the 
primary fuel. We do not have the data to show that the design and 
construction of large (greater than 44 MW) combustion units at PCWP 
plants would be similar to boilers found at pulp and paper mills. 
Furthermore, combustion units at PCWP plants with heat input capacity 
of greater than 44 MW are less prevalent than smaller (i.e., less than 
44 MW) PCWP combustion units, and many of these smaller combustion 
units are not boilers. As stated above, the final rule exempts these 
smaller combustion units from the testing and monitoring requirements

[[Page 45977]]

provided that the HAP emission stream is introduced into the flame 
zone. For these reasons, the final PCWP rule does not extend the 
exemption from testing and monitoring to those boilers greater than 44 
MW that introduce the HAP emission stream with the combustion air.
5. Selection of Operating Parameter Limits for Add-On Control Systems
    Comment: Several commenters stated that the inlet static pressure 
to a thermal or catalytic oxidizer is not a reliable indicator of the 
flow through the oxidizer, the destruction efficiency, or the capture 
efficiency. The commenters also noted that the preamble to the PCWP 
rule stated that monitoring the static pressure can indicate to the 
operator when there is a problem such as plugging. However, the 
commenters stated that static pressure is usually the last indicator of 
these types of control device problems. As discussed in the 
promulgation BID, the commenters agreed that measuring those parameters 
helps to assess the overall condition of the oxidizer but provided 
reasons why setting limits on these parameters is inappropriate. The 
commenters further noted that monitoring the static pressure helps to 
control the speed of the fan or the oxidizer dampers so that all the 
air flows are balanced. According to the commenters, static pressure is 
adjusted to avoid vacuum conditions in the ductwork of multiple-dryer 
systems treated by one control device when one dryer is shut down, to 
improve emission collection efficiency and prevent fugitive emissions, 
and to adjust the pressure drop across a bag filter as it fills with 
particulates, among other reasons. However, the commenters stated that, 
if operators are required to keep the static pressure within an 
operating range, it will limit their ability to maintain capture 
efficiency. The commenters expressed similar concerns regarding air 
flow rate monitoring and noted that numerous factors affect the air 
flow through the control device, including the rate of water removal in 
dryers, leakage of tramp air into the process, the number of processes 
operating for control units that receive emissions from multiple 
production units, and the overall production speed due to process 
adjustments. The commenters noted that, in those cases where air flow 
to the oxidizer is not constant, monitoring the air flow through the 
oxidizer will not be an accurate measure of capture efficiency.
    Response: After reviewing the information provided by the 
commenters, we agree that, while monitoring the static pressure or air 
flow rate helps to assess the overall condition of the oxidizer and 
provides an indication that emissions are being captured, setting 
operating limits on these parameters is not appropriate for the reasons 
given by the commenters. Therefore, today's final rule does not include 
the proposed requirement to monitor the static pressure or air flow 
rate for thermal and catalytic oxidizers.
    Comment: Several commenters requested that we modify the procedures 
for determining the minimum operating temperature (operating limit) for 
thermal and catalytic oxidizers. The commenters stated that, due to the 
normal variation in combustion temperatures, a facility will have to 
perform the initial compliance test at lower-than-normal temperature 
conditions to ensure that the minimum combustion temperature will be 
set at a level that they can continuously meet. The commenters 
requested that we allow facilities to operate the thermal oxidizers up 
to 50[deg]F lower than the average obtained by the performance test and 
allow facilities to operate RCO at a level that is 100[deg]F above the 
minimum operating temperature of the catalyst. The commenters also 
noted that, when the THC concentration in the inlet is high, the RCO 
will not need any additional heat and it can operate at temperatures 
higher than the set point. Therefore, if the initial compliance tests 
are conducted under these conditions, the operating temperature limit 
will be too high for production rates at less than full capacity.
    Commenters also stated that, for RCO, the thermocouple should be 
placed in a location to measure the temperature of the gas in the 
combustion chamber between the catalyst beds instead of in a location 
to measure the gas stream before it reaches the catalyst bed. The 
commenters noted that, because the gas flow reverses direction in RCO, 
the inlet temperature monitor will not consistently measure the gas at 
the same point in the process such that sometimes the gas temperature 
will be recorded after the catalyst beds instead of before. The 
commenters further noted that placement of the monitor inside the 
combustion chamber would eliminate the need for multiple monitors and 
avoid problems such as overheating and burnout of the catalyst media 
caused by the temperature delay between the burner and the RCO inlet.
    Response: We disagree with the commenters' request to include a 
50[deg]F margin around the minimum operating temperature established 
during the thermal oxidizer compliance test. In general, selection of 
the representative operating conditions for both the process and the 
control device for conducting the performance test is an important, and 
sometimes complex, task. We maintain that establishing the add-on 
control device operating limit at the level demonstrated during the 
performance test is appropriate. We note that the PCWP rule as proposed 
allows a facility to select the temperature operating limits based on 
site-specific operating conditions, and the facility is able to 
consider the need for temperature fluctuations in this selection. The 
PCWP rule as proposed requires that the operating limit be based on the 
average of the three minimum temperatures measured during a 3-hour 
performance test (rather than on the average temperature over the 3-
hour period, for example) to accommodate normal variation during 
operation and ensure that the minimum temperature established 
represents the lowest of the temperatures measured during the compliant 
test. For example, during a 3-hour, three-run performance test, the 
operating limit would be determined by averaging together the lowest 
15-minute average temperature measured during each of the three runs. 
However, continuous compliance with the operating limit is based on a 
3-hour block average. For a typical 3-hour set of data, this means that 
the 3-hour block average will be higher than the average of the three 
lowest 15-minute averages, so the temperature monitoring provisions 
already have a built-in compliance margin. In addition, the final rule 
allows PCWP facilities to conduct multiple performance tests to set the 
minimum operating temperature for RCO and RTO, so PCWP sources would 
have the option to conduct their own studies (under a variety of 
representative operating conditions) in order to establish the minimum 
operating temperature at a level that they could maintain and that 
would provide them with an acceptable compliance margin. We feel these 
provisions allow sufficient flexibility, and an additional tolerance 
for a 50[deg]F temperature variation is not necessary. Therefore, the 
final rule does not allow facilities to operate thermal oxidizers 
50[deg]F lower than the average temperature during testing.
    With regard to RCO, we agree with the commenters that when the THC 
concentration in the inlet is high, the RCO will not need any 
additional heat and it can operate at temperatures higher than the set 
point. Therefore, if the initial compliance tests are conducted under 
these conditions, the operating temperature limit will be too

[[Page 45978]]

high for production rates at less than full capacity. However, the 
final rule requires emissions testing under representative operating 
conditions and not maximum operating conditions. In addition, we do not 
agree with the commenter's solution to set the operating limit at 
100[deg]F above the minimum operating (design) temperature of the 
catalyst. As with RTO, we feel it is incumbent upon the facility to 
demonstrate performance and establish the operating limits during the 
compliance demonstration test. Therefore, the final rule requires the 
facility to establish the minimum catalytic oxidizer operating 
temperature during the compliance test. However, as noted below, we 
have provided more flexibility to the facility regarding temperature 
monitoring for RTO and RCO.
    We recognize that in a typical RTO and RCO the combustion chamber 
contains multiple burners, and that each of these burners may have 
multiple thermocouples for measuring the temperature associated with 
that burner. The final rule requires establishing and monitoring a 
minimum firebox temperature for RTO. In an RTO, the minimum firebox 
temperature is actually represented by multiple temperature 
measurements for multiple burners within the combustion chamber. Thus, 
the final rule clarifies that facilities operating RTO may monitor the 
temperature in multiple locations within the combustion chamber and 
calculate the average of the temperature measurements to use in 
establishing the minimum firebox temperature operating limit.
    Regarding RCO, we agree with the commenters that, because the gas 
flow reverses direction in RCO, the inlet temperature monitor will not 
consistently measure the gas at the same point in the process, such 
that sometimes the gas temperature will be recorded after the catalyst 
beds instead of at the inlet to the beds. We did not intend to require 
the separate measurement of each inlet temperature by switching the 
data recording back and forth to coincide with the flow direction into 
the bed. The intention is to monitor the minimum temperature of the gas 
entering the catalyst to ensure that the minimum temperature is 
maintained at the operating level during which compliance was 
demonstrated. This can be accomplished by measuring the temperature in 
the regenerative canisters at one or more locations. Measuring the 
inlet temperatures of each catalyst bed and then determining the 
average temperature for all catalyst beds is one approach. Even though 
some of the beds are cooling and others are heating, the average across 
all of the catalyst beds should not vary significantly. Another 
acceptable alternative is monitoring the combustion chamber 
temperature, as suggested by the commenters. The monitoring location(s) 
selected by the facility may depend on the operating conditions (i.e., 
THC loading to the unit) during the performance test and how the unit 
is expected to be operated in the future. The objective is to establish 
monitoring and operating limits that are representative of the 
conditions during the compliance demonstration test(s) and 
representative of the temperature to which the catalyst is exposed. We 
recognize the need for flexibility in selecting the temperature(s) to 
be monitored as operating limits for RCO. Therefore, the final rule 
provides flexibility by allowing facilities with RCO to choose between 
basing their minimum RCO temperature limit on the average of the inlet 
temperatures for all catalyst beds or the average temperature within 
the combustion chamber. If there are multiple thermocouples at the 
inlet to each catalyst bed, then we would expect facilities to average 
the measurements from each thermocouple to provide a representative 
catalyst bed inlet temperature for each individual catalyst bed.
    Finally, the final rule also includes an option (in lieu of 
monitoring oxidizer temperature) for monitoring and maintaining the 
oxidizer outlet THC concentration at or below the operating limit 
established during the performance test. Use of the THC monitoring 
option would eliminate the concerns regarding establishing and 
monitoring oxidizer operating temperatures (in effect, it provides 
facilities complete flexibility in operation of the control device, as 
long as the THC outlet concentration remains below the operating limit).
    Comment: One commenter recommended that we require sampling and 
testing of the catalyst activity level for RCO. The commenter stated 
that the proposed requirement to monitor inlet pressure may not be 
sufficient to detect catalyst problems such as poisoning, blinding, or 
degradation.
    Response: We agree with the commenter that a catalyst activity 
level check is needed because catalyst beds can become poisoned and 
rendered ineffective. An activity level check can consist of passing an 
organic compound of known concentration through a sample of the 
catalyst, measuring the percentage reduction of the compound across the 
catalyst sample, and comparing that percentage reduction to the 
percentage reduction for a fresh sample of the same type of catalyst. 
Generally, the PCWP facility would remove a representative sample of 
the catalyst from the catalytic oxidizer bed and then ship the sample 
to a testing company for analysis of its ability to oxidize organic 
compounds (e.g., by a flame ionization detector).
    In response to this comment, we added to the final rule a 
requirement for facilities with catalytic oxidizers to perform an 
annual catalyst activity check on a representative sample of the 
catalyst and to take any necessary corrective action to ensure that the 
catalyst is performing within its design range. Corrective actions may 
include washing or baking out the catalytic media, conducting an 
emissions test to ensure the catalytic media is resulting in the 
desired emissions reductions, or partial or full media replacement. 
Catalysts are designed to have an activity range over which they will 
reduce emissions to the desired levels. Therefore, the final rule 
specifies that corrective action is needed only when the catalyst 
activity is outside of this range. It is not our intention for 
facilities to replace catalyst if the catalytic media is not performing 
at the maximum level it achieved when the catalyst was new. Also, the 
final rule specifies that the catalyst activity check must be done on a 
representative sample of the catalyst to ensure that facilities that 
may have recently conducted a partial media replacement do not sample 
only the fresh catalytic media for the catalyst activity check.
    Comment: Several commenters stated that the proposed operating 
requirements for pressure drop across the biofilter bed should be 
removed from the final PCWP rule. The commenters contended that 
pressure drop is a good parameter to monitor voluntarily because it 
indicates the permeability and age of the biofilter bed, helping to 
determine maintenance and replacement needs; however, it is not an 
indicator of destruction efficiency. The commenters noted that, because 
of normal wear and tear, the pressure drop gradually increases over the 
2- to 5-year life span of the biofilter, so it would not be possible to 
maintain a constant operating pressure. The commenters further noted 
that the supporting materials in the project docket did not provide any 
information or data that would support the idea that pressure drop is 
an indication of HAP destruction efficiency, but only indicated that 
pressure drop was an indication of the age of the biofilter. For these 
reasons, the commenters argued

[[Page 45979]]

that setting an absolute limit on pressure drop was inappropriate.
    The commenters also requested that the proposed requirements to 
monitor the pH of the biofilter bed effluent be removed from the final 
PCWP rule. The commenters noted that pH is a good parameter to monitor 
voluntarily because it indicates the environmental conditions inside 
the biofilter bed and can indicate the presence of organic acids and 
THC decomposition products, but it is not a reliable indicator of 
destruction efficiency. According to the commenters, small fluctuations 
of pH are expected and have little effect on the biofilter performance; 
therefore, the narrow range of pH values that would be established as 
an operating range by the initial compliance tests should not be used 
alone to determine biofilter performance. The commenters also noted 
some problems associated with continuous measurement of pH. According 
to the commenters, some biofilter units operate with periodic 
irrigation of the bed, such that the effluent flow is not constant and 
continuous monitoring is not possible. The commenters also pointed to 
an NCASI survey that confirmed that continuous pH monitoring would be 
impractical for the facilities surveyed. The commenters stated that, 
because none of the PCWP facilities surveyed could find a link between 
pH alone and biofilter performance, none of those facilities currently 
have continuous pH monitors on their biofilters.
    In addition, several commenters requested changes to the proposed 
requirement to monitor the inlet temperature of the biofilter. These 
commenters agreed that temperature is a parameter that should be 
monitored for biofilters, but argued that the location of the 
temperature monitor should be changed from the biofilter inlet to the 
biofilter bed or biofilter outlet. The commenters noted that the 
biofilter bed temperature has the greatest impact on biological 
activity. According to the commenters, the biofilter inlet temperature 
is not a good indicator of bed temperature and can change very rapidly 
depending upon the operating rate of the press, the humidity, and the 
ambient temperature.
    Response: We agree with the commenters that increases in pressure 
drop will occur over time and will not necessarily equate to a 
reduction in control efficiency, making an absolute limit on pressure 
drop ineffective in demonstrating continuous compliance. Therefore, we 
have not included the requirement to monitor pressure drop in the 
operating requirements for biofilters in the final PCWP rule. We have 
also removed the requirement to monitor pH from the final rule. 
Although pH is an indicator of the health of the microbial population 
inside the biofilter, we agree with the commenters that including 
continuous pH monitoring as an operating requirement for biofilters may 
not be appropriate.
    We also agree with the commenters that the biofilter bed 
temperature has the greatest impact on biological activity and that the 
location for monitoring the biofilter temperature should be changed. We 
did not propose monitoring of biofilter bed temperature because we 
thought that monitoring of biofilter inlet temperature would be simpler 
because only one thermocouple would be required. The temperature inside 
the biofilter bed can change in different areas of the bed, and 
therefore, depending on the biofilter, multiple thermocouples may be 
necessary to get an accurate picture of the temperature conditions 
inside the biofilter bed. Prior to proposal we rejected the idea of 
monitoring the biofilter exhaust temperature because temperature 
measured at this location can be affected by ambient temperature 
(especially for biofilters with short stacks) more than the temperature 
inside the biofilter bed. We now conclude that there is no better, more 
representative way to monitor the temperature to which the biofilter 
microbial population is exposed than to directly monitor the 
temperature of the biofilter bed. According to our MACT survey data, 
most facilities with biofilters are already monitoring biofilter bed 
temperature. Therefore, the final rule requires continuous monitoring 
of the temperature inside the biofilter bed.
    The proposed rule would have allowed facilities to specify their 
own monitoring methods, monitoring frequencies, and averaging times for 
the proposed biofilter operating parameters (i.e., inlet temperature, 
effluent pH, and pressure drop). However, monitoring of temperature is 
not as subjective as monitoring biofilter effluent pH and pressure 
drop; therefore, as an outgrowth of our decision to not require 
monitoring of biofilter effluent pH and pressure drop, the final rule 
specifies the monitoring method, frequency, and averaging time for 
biofilter bed temperature monitoring. The final rule requires that each 
thermocouple be placed in a representative location and clarifies that 
multiple thermocouples may be used in different locations within the 
biofilter bed. The temperature data (i.e., average temperature across 
all the thermocouples located in the biofilter bed if multiple 
thermocouples are used) must be monitored continuously and reduced to a 
24-hour block average. A 24-hour block average was selected for 
biofilter temperature monitoring because we recognize that there may be 
some diurnal variation in temperature. Facilities wishing to reflect a 
diurnal temperature variation when establishing their biofilter 
temperature may wish to perform some test runs during peak daily 
temperatures and other test runs early in the morning, when 
temperatures are at their lowest.
    Facilities may choose to observe parameters other than biofilter 
bed temperature, but will not be required to record or control them for 
the final PCWP rule. We feel that many factors can affect biofilter 
performance, either alone (e.g., a media change) or in concert with one 
another (e.g., a loss of water flow results in a sharp change in 
temperature and pH). The factors that have the greatest effect on 
biofilter performance are likely to be site-specific. However, based on 
the comments we have received, we conclude that extensive biofilter 
parameter monitoring is not the best method for ensuring continuous 
compliance. To promote enforceability of the final PCWP rule, we have 
added a requirement to perform periodic testing of biofilters. The 
final rule requires facilities to conduct a repeat test at least every 
2 years and within 180 days after a portion of the biofilter bed is 
replaced with a new type of media or more than 50 percent (by volume) 
of the biofilter media is replaced with the same type of media. Each 
repeat test must be conducted within 2 years of the previous test 
(e.g., 2 years after the initial compliance test, or 2 years after the 
test following a media change). We are requiring repeat testing after a 
partial or wholesale change to another media type (considered a 
modification of the biofilter) because such a modification can impact 
the performance of the biofilter. Facilities that replace biofilter 
media with a new type of media (e.g., bark versus synthetic media) must 
also re-establish the limits of the biofilter bed temperature range. We 
feel that substantial replacement of the biofilter media (e.g., 
replacement of more than 50 percent of the media) with the same type of 
media may affect short-term performance of the biofilter while the 
replacement media becomes acclimated, and therefore, the final rule 
requires a repeat performance test following this type of media 
replacement. However, PCWP facilities that replace biofilter media with 
the same type of media are not required to re-establish the biofilter

[[Page 45980]]

bed temperature range. In the case of same-media replacements, we feel 
it is appropriate for PCWP facilities to be able to use data from 
previous performance tests to establish the limits of the temperature 
range. During repeat testing following replacement with the same type 
of media, facilities can verify that the biofilter remains within the 
temperature range established previously or establish a new compliant 
temperature range. Facilities using a THC CEMS that choose to comply 
with the THC compliance options (i.e., 90 percent reduction in THC or 
outlet THC concentration less than or equal to 20 ppmvd) may use the 
data from their CEMS in lieu of conducting repeat performance testing.
    Comment: Several commenters requested that the final rule allow new 
biofilters a longer period than 180 days to establish operating 
parameter levels. These commenters suggested a 1-year period, because 
that would be long enough to observe the full seasonal variation in 
parameters and find the true operating maxima and minima.
    Response: We disagree that more than 180 days is necessary to 
establish operating parameter limits for biofilters. As mentioned 
previously, we have eliminated the proposed requirement to establish 
operating limits for pH and pressure drop. Today's final rule contains 
two options for biofilter operating parameter limits: biofilter bed 
temperature range and outlet THC concentration. While allowing 1 year 
to establish the biofilter bed temperature operating range is 
reasonable due to seasonal temperature variations, 1 year is not 
necessary for establishing an outlet THC concentration limit. 
Furthermore, the final rule already allows facilities to expand their 
operating ranges (see Sec.  63.2262(m)(3)) through additional emissions 
testing.
    The compliance date for existing facilities is 3 years after 
promulgation of the final PCWP rule, and existing facilities are 
allowed 180 days following the compliance date to conduct performance 
testing and establish the operating parameter limits. If there is 
concern that 180 days is not long enough for a new biofilter 
installation to operate under the full range of biofilter bed 
temperatures, then existing facilities should begin operation of their 
biofilter well before the compliance date (e.g., 180 days prior to the 
compliance date if 1 year is needed). Facilities also have the option 
of testing their biofilter prior to the compliance date to establish 
one extreme of their biofilter bed temperature range. The compliance 
date for new PCWP facilities is the effective date of the rule (if 
startup is before the effective date) or upon initial startup (if the 
initial startup is after the effective date of the rule), and 
biofilters installed at new PCWP facilities would have up to 180 days 
following the compliance date to establish the operating parameter 
limits. To address situations where a new biofilter is installed at an 
existing facility more than 180 days after the compliance date (e.g., 
to replace an existing RTO), we have included section Sec.  
63.2262(m)(2) to the final PCWP rule, which allows existing sources 
that install new biofilters up to 180 days following the initial 
startup date of the biofilter to establish the operating parameter 
limits. Thus, new biofilter installations are given time for 
establishment of operating parameter limits regardless of where they 
are installed at new or existing sources.
    Comment: Multiple commenters supported the option to continuously 
monitor THC at control device outlets to demonstrate compliance, but 
suggested that either the procedure for determining the operating 
limits or the length of the averaging periods be altered. The 
commenters stated that THC concentration at a control device outlet is 
not a parameter that can be easily adjusted by operators over short 
periods of time. The commenters stated that 3 hours is not a long 
enough block to avoid deviations from compliance given the variability 
of the process. The commenters provided an analysis of THC data from a 
biofilter outlet that showed multiple deviations occurring over a two 
month period when a 3-hour block average was used and few to zero 
deviations when a 24-hour or 7-day block average was used for the 
operating limits. The commenters stated that because HAP destruction 
efficiency of biofilters does not vary much with time, the longer block 
average would not be environmentally harmful.
    Response: While THC emissions at the outlet of a biofilter may 
vary, the THC emissions at the outlet of a thermal or catalytic 
oxidizer should not vary greatly. Although, as stated by the 
commenters, the HAP destruction efficiency of biofilters is not subject 
to large short-term variations, the same is not true for thermal and 
catalytic oxidizers (e.g., a sudden significant decrease in temperature 
could result in a sudden decrease in HAP reduction). Therefore, we feel 
it is appropriate to maintain the 3-hour block averaging requirement 
for THC monitoring for thermal and catalytic oxidizers. However, we 
have expanded the THC averaging requirement for biofilters to a 24-hour 
block average to provide more flexibility. The THC operating limit for 
biofilters would be established as the maximum of three 15-minute 
recorded readings during emissions testing. We also note the continuous 
monitoring of THC is not required for all APCD, but is an alternative 
to continuous monitoring of temperature. Furthermore, facilities can 
conduct multiple performance tests at different operating conditions to 
increase their maximum THC concentration operating limit.
6. Selection of Monitoring Requirements for Uncontrolled Process Units
    Comment: Several commenters recommended that we change the title of 
proposed Sec.  63.2262(n) (How do I conduct performance tests and 
establish operating requirements?--Establishing uncontrolled process 
unit operating requirements) to ``Establishing operating requirements 
for production-based compliance option process units'' for the final 
rule. The commenters stated that the proposed title implied that no 
controls of any kind are being applied to these process units, when in 
fact facilities may be using P2 techniques to reduce emissions. The 
commenters also objected to wording within the proposed section that 
suggests that temperature is the only parameter affecting HAP emissions 
from the process units. The commenters suggested that the requirements 
be revised in the final rule to give sources more flexibility in 
identifying and documenting those process unit operating parameters 
that are critical to maintaining compliance with the PBCO limits.
    Response: At proposal, our intention was to establish operating 
requirements for those process units complying with rule requirements 
without the use of an APCD. There are two situations in the PCWP rule 
as proposed where process units may not have an add-on control device: 
(1) When process units meet the PBCO, or (2) when process units used to 
generate emissions averaging debits do not have an add-on APCD that 
partially controls emissions. To clarify this for the final rule and to 
address the commenters' concern regarding applicability of Sec.  
63.2262(n), we changed the title of the section to ``Establishing 
operating requirements for process units meeting compliance options 
without a control device.''
    We agree with the commenters that temperature alone is not 
necessarily the sole factor affecting HAP emissions from some process 
units. A variety of factors can affect HAP emissions, and the 
controlling parameter for one process unit may be different than the 
controlling parameter for another process unit. Therefore, the final rule

[[Page 45981]]

gives sources more flexibility in selecting and establishing operating 
limits for process units without add-on controls. The final rule 
requires facilities to identify and document the operating parameter(s) 
that affect HAP emissions from the process unit and to establish 
appropriate monitoring methods and monitoring frequencies. We recognize 
that it is not practical to continuously monitor every process-unit-
specific factor that could affect uncontrolled emissions (e.g., there 
is no way to monitor and determine a 3-hour block average of wood 
species mix for a particleboard plant). However, some parameters are 
suitable for continuous monitoring (e.g., process operating 
temperature, furnish moisture content) and are already monitored as 
part of normal operation but not for compliance purposes. We feel that 
daily records of most parameters would be sufficient to ensure ongoing 
compliance (e.g., daily average process operating temperature, furnish 
moisture, resin type, wood species mix) if the parameters do not 
deviate from the ranges for these parameters during the initial 
compliance test. Therefore, in the final PCWP rule, we have replaced 
the proposed 3-hour block average temperature monitoring requirements 
for process units without control devices with a requirement to 
maintain, on a daily basis, the process unit operating parameter(s) 
within the ranges established during the performance test. This gives 
facilities the flexibility to decide which parameters they will monitor 
and control, while providing enforcement personnel with records that 
can be used to assess and compare the day-to-day operation of the 
process unit to the controlling operating parameters. Facilities are 
also allowed to decide for each parameter the appropriate monitoring 
methods, monitoring frequencies, and averaging times (not to exceed 24 
hours for continuously monitored parameters such as temperature and 
wood furnish moisture). Also, to ensure that the HAP emissions measured 
during the compliance tests are representative of actual emissions, the 
final rule requires testing at representative operating conditions, as 
defined in the rule.
7. Data Collection and Handling
    Comment: Several commenters requested clarifications and changes to 
the proposed requirements related to data collection and handling for 
CPMS. The commenters stated that the requirement that a valid hour of 
data must include at least three equally spaced data values for that 
hour is ambiguous and should be revised. The commenters recommended 
that the final rule require facilities to average at least three data 
points taken at constant intervals, provided the interval is less than 
or equal to 15 minutes. The commenters further noted that a better 
approach would be to drop the concept of an hourly average altogether 
and simply calculate the block average as the average of all evenly 
spaced measurements in the block period with a maximum measurement 
interval of 15 minutes. The commenters also noted that the proposed 
rule did not specify how to calculate the 3-hour block average when one 
or more of the individual hours does not contain at least three valid 
data values.
    Commenters also requested that the final rule consolidate and 
clarify the requirements in proposed Sec. Sec.  63.2268 and 63.2270 
regarding data that should be excluded from block averages. The 
commenters recommended that the final rule explicitly state that any 
monitoring data taken during periods when emission control equipment 
are not accepting emissions from the production processes should be 
excluded from hourly or block averages. The commenters also noted 
inconsistencies in the proposed rule language that seemed to imply that 
data collected during production downtime and SSM events would be 
included in the hourly averages but not in the block averages. The 
commenters stated that, because SSM events occur when the process is 
not in operation, there is no need to collect data from these periods.
    Response: We agree with the commenters that the proposed rule 
language regarding acceptable data and data averaging was somewhat 
ambiguous and have revised the language accordingly. Following the 
commenters' recommendation, we removed the concept of an hourly average 
from the final rule to allow block averages to be calculated as the 
average of all evenly spaced measurements in the 3-hour or 24-hour 
block period with a maximum measurement interval of 15 minutes. In 
place of the requirement for a valid hourly average to contain at least 
three equally spaced data values for that hour, we added a minimum data 
availability requirement. The minimum data availability requirement 
specifies that to calculate data averages for each 3-hour or 24-hour 
averaging period, you must have at least 75 percent of the required 
recorded readings for that period using only recorded readings that are 
based on valid data. The minimum data availability requirement appears 
in Sec.  63.2270(f) of today's final rule. To clarify what constitutes 
valid data and how to calculate block averages, we rearranged proposed 
Sec. Sec.  63.2268 and 63.2270. We moved proposed Sec.  63.2268(a)(3) 
and (4) to final Sec.  63.2270 (now Sec.  63.2270(d) and (e)) of 
today's final rule. Rather than repeating which data should be excluded 
from data averages in Sec.  63.2270(d) and (e), these new sections now 
refer to Sec.  63.2270(b) and (c) when discussing data that should not 
be included in data averages. We also added data recorded during 
periods of SSM to the list of data that should be excluded from data 
averages in Sec.  63.2270. We feel these changes to the structure and 
wording of the rule should fully address the commenters' concerns.
    Comment: Several commenters noted that the proposed PCWP rule does 
not provide any alternatives to the definition of a 1-hour period found 
in the MACT general provisions (40 CFR 63.2), which states that a 1-
hour period is any 60-minute period commencing on the hour. These 
commenters requested that facilities be given the option of beginning a 
1-hour period at a time that is convenient depending on shift changes, 
employee duties at the end of a shift, and settings on the systems that 
record data.
    Response: We agree with the commenters and have included a 
definition of 1-hour period in today's final rule that omits the phrase 
``commencing on the hour.''
8. Performance Specifications for CPMS
    Comment: Several commenters requested that we write sections of the 
final rule language that address temperature measurement. The 
commenters stated that the phrase ``minimum tolerance of 0.75 
percent,'' found in proposed sections 63.2268(b)(2), 63.2268(c)(3), and 
63.2268(e)(2), should be revised to read ``accurate within 0.75 percent 
of sensor range.'' The commenters argued that, because tolerances 
usually refer to physical dimensions, this revision more accurately 
reflects the intent of the final PCWP rule. Commenters also recommended 
that the sensitivity for chart recorders be changed from a sensitivity 
in the minor division of at least 20[deg]F to minor divisions of not 
more than 20[deg]F. The commenters noted that the wording in the 
proposed rule means that minor divisions could be 30[deg]F or 50[deg]F, 
but assumed that we probably meant that 20[deg]F is the largest minor 
division that a facility can use, and therefore, stated that the 
suggested revision is more accurate.
    Response: We agree that the proposed temperature measurement 
requirements should be clarified. In today's final rule,

[[Page 45982]]

we wrote the requirement in Sec.  63.2269(b)(2) (formerly proposed 
Sec.  63.2268(b)(2)) to read ``minimum accuracy of 0.75 percent of the 
temperature value.'' We eliminated proposed sections Sec. Sec.  
63.2268(c) and 63.2268(e) from the final rule because we removed the 
requirements for monitoring of pressure or flow. We also wrote proposed 
Sec.  63.2268(b)(3) to state that ``If a chart recorder is used, it 
must have a sensitivity with minor divisions of not more than 
20[deg]F.''
    Comment: Several commenters requested changes to the proposed work 
practice requirements for dry rotary dryers and veneer redryers related 
to moisture monitoring. The commenters noted that the proposed 
requirement to use a moisture monitor with a minimum accuracy of 1 
percent was appropriate for rotary dry dryers in the 25 to 35 percent 
moisture content range. However, the commenters stated that less 
stringent accuracy requirements should be included for veneer redryers 
to better correspond with current practices at softwood plywood and 
veneer facilities. Specifically, the commenters requested that the 
final rule revise the proposed performance specifications for moisture 
monitors for veneer redryers to allow the use of monitors with an 
accuracy of 3 percent in the 15 to 25 percent moisture 
range. Several commenters also requested that the proposed calibration 
procedures for moisture monitors be revised in the final rule to 
eliminate grab sampling and to allow facilities to follow the 
calibration procedures recommended by the manufacturer. The commenters 
argued that the proposed grab sampling procedure is impractical and 
that obtaining a representative grab sample would be difficult.
    Response: We agree with the commenters that the proposed moisture 
monitoring requirements should be adjusted in the final rule and have 
made the requested changes to the accuracy requirements for moisture 
monitors used with rotary dry dryers and veneer redryers. We have also 
adjusted the calibration procedures in the final rule to eliminate grab 
sampling and to allow facilities to follow the manufacturer's 
recommended calibration procedures for moisture monitors.

I. Routine Control Device Maintenance Exemption (RCDME)

    Comment: Several commenters requested that the proposed 
requirements for the RCDME be modified in the final rule to give PCWP 
facilities more flexibility. First, the commenters requested that the 
proposed RCDME allowances (expressed as a percentage of the process 
unit operating hours) be increased. The commenters argued that the 
proposed downtime allowance periods are too short to allow for proper 
maintenance. The commenters noted that the NCASI survey that was used 
to set the downtime allowance only included data from 1999, and many 
facilities may have conducted nonannual maintenance and repairs in the 
years preceding or following that year. According to the commenters, 
the 1999 survey was also limited in that the majority of the RTO 
included in the survey were less than 5 years old, and as the equipment 
ages over a lifetime of 5 to 15 years, performance will degrade below 
the levels seen in the 1999 survey. Therefore, the commenters suggested 
that we reexamine the NCASI downtime data and use the 79th percentile 
instead of the 50th percentile to select downtime allowances that 
represent the time needed for nonannual events.
    Response: After reviewing our previous analysis of the downtime 
data, we maintain that the percentage downtime we proposed (3 percent 
for some process units and 0.5 percent for others) calculated on an 
annual basis is appropriate for the final PCWP rule. The downtime 
allowance allowed under the RCDME is intended to allow facilities 
limited time to perform routine maintenance on their APCD without 
shutting down the process units being controlled by the APCD. We 
included the downtime allowance in the proposed rule because we 
recognize that frequent maintenance must be performed to combat 
particulate and salt buildup in some RTO and RCO for PCWP drying 
processes. The downtime allowance is not intended to cover every APCD 
maintenance activity, only those maintenance activities that are 
routine (e.g., bakeouts, washouts, partial or full media replacements) 
and do not coincide with process unit shutdowns. Most APCD maintenance 
should occur during process unit shutdowns; the RCDME is a downtime 
allowance in addition to the APCD maintenance downtime that occurs 
during process unit shutdowns. We note that most PCWP plants do not 
operate 8,760 hours per year without shutdowns. For example, the MACT 
survey responses indicate that softwood plywood plants operate for an 
average 7,540 hours per year, which would allow 1,220 hours for control 
device maintenance without the RCDME. Furthermore, the RCDME is allowed 
in addition to APCD downtime associated with SSM events covered by the 
SSM plan (e.g., electrical problems, mechanical problems, utility 
supply problems, and pre-filter upsets). For these reasons, the final 
rule retains the RCDME allowances included in the proposed rule.
    Comment: Several commenters objected to the proposed requirement 
that the maintenance be scheduled at the beginning of the semiannual 
period. The commenters argued that scheduling maintenance activities at 
the beginning of each semiannual period is neither consistent with 
industry practice nor practical. The commenters noted that downtime for 
maintenance is scheduled as the need arises, and downtime schedules 
change with need and production requirements. The commenters stated 
that most facilities have a general idea of when they intend to conduct 
routine maintenance activities and will schedule those activities 
whenever possible to coincide with process downtime as it approaches. 
The commenters further noted that the proposed PCWP rule does not 
clarify what would happen if maintenance were necessary before the 
scheduled date. Therefore, the commenters concluded that deleting the 
requirement to set the maintenance schedule at the beginning of each 
semiannual period would eliminate confusion and better represent 
industry practice.
    Response: We agree with the commenters and have removed the 
requirement to record the control device maintenance schedule for the 
semiannual period from the final rule. We agree that the proposed 
requirement would be impractical because process unit shutdowns are not 
scheduled semiannually. Also, the SSM provisions do not require 
scheduling of maintenance, and therefore, requiring scheduling of 
routine maintenance covered under the RCDME would be more restrictive 
than the requirements for SSM. To the extent possible, APCD maintenance 
should be scheduled at the same time as process unit shutdowns. Thus, 
today's final rule retains the requirement that startup and shutdown of 
emission control systems must be scheduled during times when process 
equipment is also shut down.
    Comment: Commenters also requested that the proposed RCDME 
requirement that facilities must minimize emissions to the greatest 
extent possible during maintenance periods be revised to require that 
facilities make reasonable efforts to minimize emissions during 
maintenance. The commenters stated that this revision is necessary 
because the proposed wording could be interpreted to mean that sources 
should limit production or shut down entirely

[[Page 45983]]

during maintenance periods, which is contrary to the intent of the RCDME.
    Response: We agree with the commenters and have modified the 
referenced requirement as suggested by the commenters.

J. Startup, Shutdown, and Malfunction (SSM)

    Comment: Several commenters noted inconsistencies between the 
proposed rule and the NESHAP General Provisions (40 CFR part 63, 
subpart A) and requested that these inconsistencies be resolved by 
making the final PCWP rule consistent with the latest version of the 
General Provisions.
    Response: Approximately 1 month prior to publication of the 
proposed PCWP rule, we published proposed amendments to the NESHAP 
General Provisions concerning SSM procedures (67 FR 72875, December 9, 
2002) and promulgated them in May 2003 (68 FR 32585, May 30, 2003). Due 
to the timing of the these rulemakings, the proposed PCWP rule language 
did not reflect our most recent decisions regarding SSM. To avoid 
confusion and promote consistency, we have written the final rule to 
reference the NESHAP General Provisions directly, where applicable, and 
to be more consistent with other recently promulgated MACT standards. 
Although the amendments to the NESHAP General Provisions regarding SSM 
plans are currently involved in litigation, the rule requirements 
promulgated on May 30, 2003, apply to the final PCWP NESHAP unless and 
until we promulgate another revision. In response to suggestions made 
by commenters, we also consolidated several sections to clarify the 
requirements related to SSM and to eliminate redundancies in the final 
rule. Specifically, we combined proposed Sec.  63.2250(d) with proposed 
Sec.  63.2250(a) and revised the resulting Sec.  63.2250(a) to clarify 
that the SSM periods mentioned in proposed Sec.  63.2250(a) apply to 
both process units and control devices and to clarify when the 
compliance options, operating requirements, and work practice 
requirements do and do not apply. We also removed proposed Sec.  
63.2250(e) from the final rule because it was a duplication of proposed 
Sec.  63.2251(e) regarding control device maintenance schedules. In 
addition, we removed proposed Sec.  63.2250(f) related to RCO catalyst 
maintenance because this section was misplaced and is not consistent 
with the RCO monitoring requirements in today's final rule.

K. Risk-Based Approaches

1. General Comments
Risk-Based Approaches
    Comment: Numerous commenters encouraged EPA to incorporate risk-
based options which would exclude facilities that pose no significant 
risk to public health or the environment. Commenters stated that 
inclusion of risk provisions has the potential to achieve overall 
environmentally superior results in a cost-effective manner, 
particularly in cases where criteria pollutants from control devices 
(i.e., incinerators) may result in greater impacts that the HAP 
emissions that they control. In particular, the commenter referred to 
EPA's projection that adoption of MACT floor level controls would 
result in increased emissions of NOX, a precursor to ozone 
and PM. According to the commenter, the proposed rule (without risk 
provisions) would work against the industry's voluntary commitment to 
reduce the emissions of greenhouse gases by 12 percent over the next 10 
years. The commenter concluded that, in its proposed form, the rule 
would impose significant additional cost with virtually no gain to 
either the environment or the health. The commenter stated that 
facilities wishing to take advantage of the risk-based exemption would 
take a federally-enforceable permit limit that would guarantee that 
their emissions remain below the risk-based emission standard. This 
would constitute an emission limitation, within the statutory 
definition of the term, and it would allow facilities to forego the 
installation of incinerators where they are not warranted by public 
health and environmental considerations, the commenter claimed.
    Some commenters argued that the risk-based options are legally 
justified, protective of human health and the environment, and 
economically sensible. These commenters stated that the risk-based 
options are supported under the CAA, through EPA's authority under 
sections 112(d)(4) and 112(c)(9) to set emission standards other than 
MACT for certain low-risk facilities and delist technology-defined low-
risk subcategories, respectively, and through what they claimed is 
EPA's inherent de minimis authority to avoid undertaking regulatory 
action in the absence of meaningful risk. One commenter pointed out 
that, by meeting the stringent health benchmarks necessary to qualify 
for the risk-based compliance approaches, facilities already would have 
satisfied the residual risk provisions 8 years ahead of the statutory 
requirements set forth in section 112(f) of the CAA.
    Two commenters believed that the risk-based approach would 
particularly benefit small mills located in rural areas with timber-
dependent economies. One commenter stated that, by offering 
manufacturers an opportunity to apply for subcategorization on a site-
specific basis, facilities that are remotely located, or which were 
originally planned and sited with thorough consideration of airshed 
impacts, would not be unduly burdened with MACT requirements which 
yield little or no public health benefits.
    Some commenters argued that such low-risk facilities should not be 
burdened with the requirements of MACT. One commenter noted that the 
regulatory framework exists within their State to implement a risk-
based approach. Another commenter agreed with the concept of a risk-
based approach but stated that it would not be appropriate for State 
and local programs to determine which facilities should be exempted 
from MACT. Another commenter suggested that exemptions be provided on a 
case-by-case basis to individual facilities that are able to 
demonstrate that they pose no significant risk to public health or the 
environment.
    Several commenters opposed the risk-based exemptions. Two 
commenters stated that the use of risk-based concepts to evade MACT 
applicability is contrary to the intent of the CAA and is based on a 
flawed interpretation of section 112(d)(4) written by an industry 
subject to regulation. One commenter added that the CAA requires a 
technology-based floor level of control and does not provide exclusions 
for risk or secondary impacts in applying the MACT floor. The other 
commenter was concerned about industry's unprecedented proposal to 
include de minimis exemptions and cost in the MACT standard process. 
The commenter stated that including case-by-case risk-based exemptions 
would jeopardize the effectiveness of the national air toxics program 
to adequately protect public health and the environment and to 
establish a level playing field. A third commenter noted that 
subcategorization and source category deletions under CAA section 
112(c) have been implemented several times since the MACT program began.
    Some commenters pointed out that they have not been able to comment 
on the technical merit of the risk analysis employed by the EPA. They 
argued that, until the residual risk analysis procedures have been 
implemented via the CAA section 112(f) process, risk

[[Page 45984]]

analysis should not be used in making MACT determinations pursuant to 
CAA section 112(d)(4). Also, risk analysis could never be used to 
establish a MACT floor.
    One commenter pointed out that, in separate rulemakings and 
lawsuits, EPA adopted legal positions and policies that they claimed 
refute and contradict the very risk-based and cost-based approaches 
contained in the proposal. In these other arenas, EPA properly rejected 
risk assessment to alter the establishment of MACT standards. The EPA 
also properly rejected cost in determining MACT floors and in denying a 
basis for avoiding the MACT floor.
    Response: We feel that the assertions by one commenter about the 
environmental disbenefits of the PCWP rule as proposed are overstated. 
We disagree that the PCWP industry as a whole poses a small-to-
insignificant risk to human health and the environment. However, we 
acknowledge that there are some PCWP affected sources that pose little 
risk to human health and the environment. Consequently, we have 
included an option in today's final PCWP rule that would allow 
individual affected sources to be found eligible for membership in a 
delisted low-risk subcategory if they demonstrate that they do not pose 
a significant risk to human health or the environment. The low-risk 
subcategory delisting in today's final PCWP rule is based on our 
authority under CAA sections 112(c)(1) and (9). The statute requires 
that categories or subcategories meet specific risk criteria in order 
to be delisted. To determine whether source categories and 
subcategories, and their constituent sources, meet these criteria, risk 
analyses may be used. We disagree with the commenter that we must wait 
for implementation of CAA section 112(f) before utilizing risk analysis 
in this manner. Section 112(d)(1) of the CAA gives us the authority to 
distinguish among classes, types, and sizes of sources within a 
category, and CAA section 112(c)(1) does not restrict our authority to 
base categories and subcategories on other appropriate criteria. As 
discussed in more detail elsewhere in this notice, we feel these 
provisions of the CAA allow us to define a subcategory of sources in 
terms of risk. Thus, the low-risk subcategory of PCWP affected sources 
is defined in terms of risk, not cost. We are not subcategorizing or 
determining MACT floors based on cost. Furthermore, because most 
affected sources will make their low-risk demonstrations following 
promulgation of today's final PCWP rule, the MACT level of emissions 
reduction required by today's final rule is not affected by affected 
sources becoming part of the low-risk subcategory.
    We are not pursuing the risk-based exemptions based on CAA section 
112(d)(4). We do not feel that a risk-based approach based on section 
112(d)(4) is appropriate for the PCWP industry because PCWP facilities 
emit HAP for which no health thresholds have been established and 
because the legislative history of the 1990 Amendments to the CAA 
indicates that Congress considered and rejected allowing us to grant 
such source-specific exemptions from the MACT floor. We also are not 
relying on de minimis authority. Legal issues associated with the risk-
based provisions are addressed elsewhere in this preamble.
    In today's final PCWP rule, we are identifying the criteria we will 
use to identify low-risk PCWP affected sources and requesting that any 
candidate affected sources, in addition to the affected sources already 
identified as low risk in today's action, submit information to us 
based on those criteria so that we can evaluate whether they might be 
low-risk. Today's final PCWP rule also establishes a low-risk PCWP 
subcategory based on the criteria (and including several identified 
affected sources) and delists the subcategory based on our finding that 
no source that would be eligible to be included in the subcategory 
based on our adopted criteria emits HAP at levels that exceed the 
thresholds specified in section 112(c)(9)(B) of the CAA. To be found 
eligible to be included in the delisted source category, affected 
sources will have to demonstrate to us that they meet the criteria 
established by today's final PCWP rule and assume federally enforceable 
limitations that ensure their HAP emissions do not subsequently 
increase to exceed levels reflected in their eligibility demonstrations.
    The criteria defining the low-risk subcategory of PCWP affected 
sources are included in appendix B to subpart DDDD of 40 CFR part 63. 
The criteria in the appendix were developed for and apply only to the 
PCWP industry and are not applicable to other industries. Today's final 
PCWP rule provides two ways that an affected source may demonstrate 
that it is part of the low-risk subcategory of PCWP affected sources. 
First, look-up tables allow affected sources to determine, using a 
limited number of site-specific input parameters, whether emissions 
from their sources might cause a hazard index (HI) limit for 
noncarcinogens or a cancer benchmark of one in a million to be 
exceeded. Second, a site-specific modeling approach can be used by 
those affected sources that cannot demonstrate that they are part of 
the low-risk subcategory using the look-up tables.
    The low-risk subcategory delisting that is included in today's 
final PCWP rule is intended to avoid imposing unnecessary controls on 
affected sources that pose little risk to human health or the 
environment. Facilities will have to select controls or other methods 
of limiting risk and then demonstrate, using appendix B to subpart DDDD 
of 40 CFR part 63 and other analytical tools, such as the ``Air Toxics 
Risk Assessment Reference Library,'' if appropriate in a source's case, 
that their emissions qualify them to be included in the low-risk 
subcategory, and, therefore, to not be subject to the MACT compliance 
options included in today's final PCWP rule.
    Comment: Several commenters objected to EPA using the preambles of 
individual rule proposals as the forum for introducing significant 
changes in the way that MACT standards are established. The commenter 
believed that allowing risk-based exemptions requires statutory 
changes. A third commenter expressed concern that other parties may 
miss commenting on the risk-based exemptions because they are contained 
within six separate proposals. The commenter added that to give the 
issue full consideration, the risk provisions should not be adopted 
within any of the final rules but should be addressed in one place, 
such as in revisions to the General Provisions of 40 CFR part 63, subpart A.
    Response: The discussion of risk-based provisions in MACT was 
included in individual proposals for several reasons. First, we 
recognize that such provisions might only be appropriate for certain 
source categories, and our decision-making process required source 
category-specific input from stakeholders. Second, the 10-year MACT 
standards, which are now being completed, are the last group of MACT 
standards currently planned for development, and for any risk 
provisions to be useful, the provisions must be finalized in a timely 
manner. We do not agree that statutory changes are necessary because of 
the discretion provided to the Administrator under CAA section 
112(d)(1) to distinguish among classes, types, and sizes of sources 
within a category and under CAA section 112(c)(1) to base categories 
and subcategories on any appropriate criteria. We consider low-risk affected

[[Page 45985]]

sources to be an appropriate subcategory of sources within the PCWP 
source category.
    Comment: Several commenters stated that the risk-based exemption 
proposal removes the level playing field that would result from the 
proper implementation of technology-based MACT standards. According to 
the commenters, establishing a baseline level of control is essential 
to prevent industry from moving to areas of the country that have the 
least stringent air toxics programs, which was one of the primary goals 
of developing a uniform national air toxics program under section 112 
of the 1990 CAA amendments. The commenters argued that risk-based 
approaches would jeopardize future reductions of HAP in a uniform and 
consistent manner across the nation. One commenter stated that National 
Air Toxics Assessment (NATA) data show that virtually no area of the 
country has escaped measurable concentrations of toxic air pollution. 
The NATA information indicates that exposure to air toxics is high in 
both densely populated and remote rural areas.
    One commenter disagreed with the assertion that the level playing 
field would be removed. The commenter pointed out that the argument 
that EPA should impose unnecessary and potentially environmentally 
damaging controls for the sole purpose of equalizing control costs 
across facilities would be at odds with the stated purpose of the CAA. 
According to the commenter, the claim that the risk-based approach 
would favor facilities located away from population centers is 
incorrect. As contemplated, the risk-based approaches to the NESHAP 
would be keyed to the comparison of health benchmarks with reasonable 
maximum chronic and acute exposures. According to the commenter, the 
presence or absence of human populations would have no effect on 
whether facilities would qualify.
    Response: We agree that one of the primary goals of developing a 
uniform national air toxics program under section 112 of the 1990 CAA 
amendments was to establish a level playing field. We do not feel that 
defining a low-risk subcategory in today's final PCWP rule does 
anything to remove the level playing field for PCWP facilities. Today's 
final PCWP rule and its criteria for demonstrating eligibility for the 
delisted low-risk subcategory apply uniformly to all PCWP facilities 
across the nation. Today's final PCWP rule establishes a baseline level 
of emission reduction or a baseline level of risk (for the low-risk 
subcategory). All PCWP affected sources are subject to these same 
baseline levels, and all facilities have the same opportunity to 
demonstrate that they are part of the delisted low-risk subcategory. 
The criteria for the low-risk subcategory are not dependent on local 
air toxics programs. Therefore, concerns regarding facilities moving to 
areas of the country with less-stringent air toxics programs should be 
alleviated.
    Although NATA may show measurable concentrations of toxic air 
pollution across the country, these data do not suggest that PCWP 
facilities that do not contribute to the high exposures and risk should 
be included in MACT regulations, notwithstanding our authority under 
CAA section 112(c)(9).
    Comment: One commenter stated that the dockets for the MACT 
proposals that contain the risk approaches make it clear that the White 
House Office of Management and Budget (OMB) and industry were the 
driving forces behind the appearance of these unlawful approaches in 
EPA's proposals. The commenter condemned the industry-driven agenda 
that it claimed is being promoted by the White House OMB.
    A second commenter stated that the accusations that EPA succumbed 
to industry lobbying and internal pressures are entirely unfounded.
    Response: We are required by Executive Order 12866 to submit to OMB 
for review all proposed and final rulemaking packages that would have 
an annual effect on the economy of $100 million or more. The comments 
we received from OMB reflect their position that low-risk facilities do 
not warrant regulation. However, the commenter is incorrect in implying 
that we have not exercised our independent judgment in addressing these 
issues. Our rationale for adopting the risk-based approach in this PCWP 
rulemaking is that such an approach is fully authorized under the CAA. 
This rule reflects the EPA Administrator's appropriate use of 
discretion to use CAA section 112(c)(9) to delist a low-risk subcategory.
Effects on MACT Program
    Comment: Several commenters expressed concern about the impact of a 
risk-based approach on the MACT program. Some commenters stated that 
the proposal to include risk-based exemptions is contrary to the 1990 
CAA Amendments, which calls for MACT standards based on technology 
rather than risk as a first step. The commenters pointed out that 
Congress incorporated the residual risk program under CAA section 
112(f) to follow the MACT standards, not to replace them. One commenter 
added that risk-based approaches would be used separately to augment 
and improve technology-based standards that do not adequately provide 
protection to the public.
    Another commenter believed that CAA section 112(d)(4) and the 
regulatory precedent established in over 80 MACT standards reject the 
inclusion of risk in the first phase of the MACT standards process. The 
commenter argued that the use of risk assessment at this stage of the 
MACT program is, in fact, directly opposed to title III of the CAA.
    Response: We disagree that inclusion of a low-risk subcategory in 
today's final PCWP rule is contrary to the 1990 CAA Amendments. The 
PCWP MACT rule is a technology-based standard developed using the 
procedures dictated by section 112 of the CAA. The only difference 
between today's final PCWP rule and other MACT rules is that we used 
our discretion under CAA sections 112(c)(1) and (9) to subcategorize 
and delist low-risk affected sources, in addition to fulfilling our 
duties under CAA section 112(d) to set MACT. The CAA requires that 
categories or subcategories meet specific risk criteria, and to 
determine this, risk analyses may be used. We disagree with the 
commenter that we must wait for implementation of CAA section 112(f) 
before utilizing risk analysis in this manner. We feel that today's 
final PCWP rule is particularly well-suited for a risk-based option 
because of the specific pollutants that are emitted by PCWP sources. 
For many affected sources, the pollutants are emitted in amounts that 
pose little risk to the surrounding population. However, the cost of 
controlling these pollutants is high, and may not be justified by 
environmental benefits for these low-risk affected sources. Only those 
PCWP affected sources that demonstrate that they are low risk are 
eligible for inclusion in the delisted low-risk subcategory. The 
criteria included in today's final PCWP rule defining the delisted low-
risk subcategory are based on sufficient information to develop health-
protective estimates of risk and will provide ample protection of human 
health and the environment.
    Inclusion of a low-risk subcategory in today's final PCWP rule does 
not alter the MACT program or affect the schedule for promulgation of 
the remaining MACT standards. We recognize that such provisions are 
only appropriate for certain source categories, and our decision-making 
process required source category-specific input from stakeholders. The 
10-year MACT standards, which are now being completed, are the last group

[[Page 45986]]

of MACT standards currently planned for development, and for any risk 
provisions to be useful, the provisions must be finalized in a timely 
manner.
    Comment: Several commenters stated that the inclusion of a risk-
based approach would delay the MACT program and/or promulgation of the 
PCWP MACT standard. If the proposed approaches are inserted into 
upcoming standards, the commenters feared the MACT program (which is 
already far behind schedule) would be further delayed.
    One commenter stated that they were strongly opposed to returning 
to the morass of risk-based analysis in an attempt to preempt the 
application of technology-based MACT standards and exempt facilities. 
The commenter stated that designing a risk-based analysis procedure 
would also take significant resources, as evidenced by the fact that it 
took five plus pages in the Federal Register to discuss just the basic 
issues to be considered in the analysis. The commenter indicated that 
the demand on government resources could cause a delay in the 
application of MACT nationwide. The commenter stated that EPA should 
also consider the issue of fairness since the rest of the industrial 
sector whose NESHAP have already been promulgated did not have a risk-
based option.
    Another commenter stated that it is evident that the proposed risk-
based exemptions would require extensive debate and review in order to 
launch, which would further delay promulgation of the remaining MACT 
standards. The commenter stated that delays could be exacerbated by 
litigation following legal challenges to the rules, and such delays 
would trigger the CAA section 112(j) MACT hammer provision, which would 
unnecessarily burden the State and local agencies and the industries. 
The commenter concluded that, obviously, further delay is unacceptable. 
Another commenter agreed, stating that it is imperative that EPA meet 
the new deadlines for promulgating the final MACT standards.
    Two commenters stated that EPA's proposal to improperly incorporate 
risk assessment into the technology-based standard process would 
cripple a MACT program already in disarray. The commenters argued that 
the risk-based approach could exacerbate the delay in HAP emissions 
reductions required by CAA section 112. One commenter noted that EPA's 
Office of Inspector General recently found that EPA is nearly 2 years 
behind in fulfilling its statutory responsibilities for implementing 
Phase 1 MACT standards. According to the commenter, this delay 
potentially harms the public and environment. The inclusion of risk-
based exemptions in 10-year MACT standards would only further delay 
this process. The other commenter noted that EPA lacks adequate 
emissions and exposure data, source characterization data, and health 
and ecological effects information to conduct this process anyway. This 
commenter believed that the air toxics program is flawed and failing to 
protect public health and the environment and argued that it was 
irresponsible for EPA to pursue a deregulatory agenda that would 
further weaken the effectiveness of the air toxics program. The 
commenter noted that EPA acknowledged the complexity and delays 
associated with the proposed risk-based approaches in deciding not to 
adopt the approaches in the final BSCP rule.
    Response: We disagree that identification and delisting of a low-
risk subcategory in today's final PCWP rule will alter the MACT program 
or affect the schedule for promulgation of the remaining MACT 
standards, especially the PCWP MACT rule. In fact, it has not caused 
such a delay for the final rule. We do not anticipate any further 
delays in completing the remaining MACT standards. The delisting of a 
low-risk subcategory in today's final PCWP rule affects only the PCWP 
rule, and not any other MACT standards.
    We feel that the final PCWP rule is particularly well-suited for a 
risk-based option because of the specific pollutants that are emitted. 
For many affected sources, the pollutants are emitted in amounts that 
pose little risk to the surrounding population. However, the cost of 
controlling these pollutants is high and may not be justified by 
environmental benefits for these low-risk facilities. Only those PCWP 
affected sources that demonstrate that they are low risk are eligible 
for inclusion in the delisted low-risk subcategory. The criteria 
defining the delisted low-risk subcategory are based on sufficient 
information to develop health-protective estimates of risk and will 
provide ample protection of human health and the environment.
    The final PCWP NESHAP is being promulgated by the February 2004 
court-ordered deadline. Any delays in implementation of the final PCWP 
NESHAP caused by legal challenges, which could and often do occur for 
any MACT standard we promulgate without a risk-based approach, are 
beyond our control.
2. Legal Authority
Section 112(d)(4) of the CAA
    Comment: We received multiple comments stating that CAA section 
112(d)(4) provides EPA with authority to exclude sources that emit 
threshold pollutants from regulation. We also received multiple 
comments disagreeing that CAA section 112(d)(4) can be interpreted to 
allow exemptions for individual sources. Several commenters supported 
the use of a CAA section 112(d)(4) applicability cutoffs for both 
threshold and non-threshold pollutants.
    Response: We feel that section 112(d)(4) does not give us the 
authority to exempt affected sources or emission points from MACT 
limitations on non-threshold pollutant emissions. All PCWP facilities 
emit carcinogens (e.g., formaldehyde), that are currently considered 
non-threshold pollutants. Therefore, we are not using section 112(d)(4) 
authority to create risk-based options for PCWP.
    We are not setting a risk-based emission limit, but, rather, we are 
using our CAA section 112(c)(9) authority to delist affected sources 
that demonstrate they meet the risk and hazard criteria for being 
included in this low-risk subcategory.

De minimis

    Comment: Some commenters attempted to identify a source of 
authority for risk-based approaches under the de minimis doctrine 
articulated by appellate courts. The commenters cited case law which 
they believe holds EPA may exempt de minimis sources of risk from MACT-
level controls because the mandate of CAA section 112 is not 
extraordinarily rigid and the exemption is consistent with the CAA's 
health-protective purpose. The commenters argued that CAA sections 
112(c)(9) and 112(f)(2) indicate that Congress considered a cancer risk 
below one in a million to be de minimis and, therefore, insufficient to 
justify regulation under section 112. The commenters stated that EPA's 
exercise of de minimis authority has withstood judicial challenge, and 
that application of de minimis authority is based on the degree of risk 
at issue, not on the mass of emissions to be regulated.
    Other commenters argued that de minimis authority does not exist to 
create MACT exemptions on a facility-by-facility or category-wide 
basis. The commenters stated that EPA lacks de minimis authority to 
delist subcategories based on risk. The commenters further noted that 
EPA has not revealed any administrative record

[[Page 45987]]

justifying a de minimis exemption, to demonstrate that compliance with 
MACT would yield a gain of trivial or no value.
    Response: We are not relying on de minimis principles for today's 
action, and therefore, do not need to respond to these comments.
Section 112(c)(9) of the CAA
    Comment: Two commenters opposed using subcategorization as a 
mechanism to exempt facilities. One of the commenters stated that 
subcategorization is a tool that should be used in the standard setting 
process, and using it to exempt facilities would have a detrimental 
effect on the stringency of the MACT floor and would generally degrade 
the standard. According to the commenter, the two-step 
subcategorization proposal is inconsistent with how subcategorization 
has been done in numerous previous NESHAP.
    The other commenter argued that EPA's subcategorization theories 
are unlawful. According to the commenter, CAA section 112(c)(9) does 
not authorize EPA to separate identical pollution sources into 
subcategories that are regulated differently to weed out low-risk 
facilities or reduce the scope/cost of the standard. The commenter 
stated that subcategories based solely on risk do not bear a reasonable 
relationship to Congress' technology-based approach or the statutory 
structure and purposes of CAA section 112, and are not authorized by 
the CAA. According to the commenter, categories and subcategories are 
required to be consistent with the categories of stationary sources in 
CAA section 111. The commenter was not aware of any instance in which 
EPA has established categories or subcategories based on risk. The 
commenter stated that EPA routinely defines subcategories based on 
equipment characteristics (e.g., technical differences in emissions 
characteristics, processes, control device applicability, or 
opportunities for P2). According to the commenter, EPA has not offered 
any explanation for why reinterpreting the statute to ignore nearly 12 
years of settled practices and expectations under the MACT program is 
reasonable, nor why reducing the applicability of HAP emission 
standards serves Congress's goals in enacting the 1990 CAA Amendments.
    The commenter noted that EPA's discussion of the risk-based 
exemptions was contained in a preamble section entitled, ``Can We 
Achieve the Goals of the Proposed Rule in a Less Costly Manner,'' which 
strongly suggests that EPA's motivation for considering these risk-
based approaches is consideration of cost. The commenter cited prior 
EPA documentation and stated that EPA in the past has rejected the 
notion that cost should influence MACT determination, and this prior, 
consistently applied interpretation better serves the purposes of CAA 
section 112. The commenter argued that subcategorizing to set a no-
control MACT floor is the same as refusing to set a MACT standard 
because the benefits would be negligible, which is unlawful.
    The commenter also stated that CAA section 112(c)(9)(B)(i) does not 
authorize EPA to delist subcategories. According to the commenter, 
section 112(c)(9)(B) contains two subsections: subsection (i) refers 
only to categories, and subsection (ii) refers to both categories and 
subcategories. The commenter argued that the absence of the term 
``subcategories'' in section 112(c)(9)(B)(i) indicates a Congressional 
choice not to permit the Administrator to delist subcategories of 
sources under section 112(c)(9)(B). The commenter stated that this is 
consistent with Congress' decision to require a higher standard to 
delist categories that emit carcinogens. According to the commenter, 
the section 112(c)(9)(B)(ii) requirement of less than one in a million 
lifetime cancer risk for the most exposed individual is a higher and 
more specific standard than the standard for other HAP.
    To the contrary, two commenters stated that EPA has ample authority 
under CAA sections 112(c)(1) and 112(c)(9) to create and delist low-
risk categories or subcategories. According to the commenters, section 
112(c)(1) provides the Administrator with significant flexibility to 
create categories and subcategories as needed to implement CAA section 
112. One commenter stated that there is nothing in the statute that 
limits the criteria the Administrator can use in establishing 
categories and subcategories. The commenter added that there is also 
nothing in the history of EPA's interpretation of section 112(c) that 
precludes subcategorization based on risk. In addition, EPA has stated 
that emission characteristics are factors to be considered when 
defining categories.
    The commenter stated that application of statutory authority to 
exclude sources from regulation under section 112(d)(3) is also 
supported by relevant case law, e.g., in the Vinyl Chloride case. (NRDC 
v. EPA, 824 F.2D 1126 (D.C. Cir. 1987)) According to the commenter, the 
court in that case established a range of acceptable levels of risk in 
establishing limits under prior language in section 112, and the 
establishment of an acceptable level of risk could be used to create a 
low-risk subcategory that could be delisted. The commenter stated that 
technological or operational differences among sources may also help 
discriminate between low-risk and high-risk sources. The commenter 
stated that effective use of section 112(c)(1) authority to create 
risk-based subcategories would significantly improve the cost-
effectiveness of the section 112 program without undermining its role 
in protecting public health and the environment.
    Both commenters noted that CAA section 112(c)(9)(B) provides EPA 
with broad authority to remove from MACT applicability those categories 
and subcategories of facilities whose HAP emissions are sufficiently 
low as to demonstrate a cancer risk less than one in a million to the 
most exposed individual in the population (for non-threshold 
carcinogens) and no adverse environmental or public health effect (for 
threshold HAP). (The commenter asserted that Congress used the terms 
category and subcategory interchangeably, indicating that either one 
can be delisted.) One commenter suggested that sources able to 
demonstrate a basis for inclusion in the delisted category on a case-
by-case basis would then be exempted from the MACT, subject to possible 
federally-enforceable conditions designed by EPA. The commenter stated 
that the new category could include the following: all low-risk 
facilities, facilities producing wood products found to pose no 
expected risk to human health (i.e., fiberboard, medium density 
fiberboard and plywood), facilities with acrolein emissions below a 
certain threshold, or facilities selected on the basis of some other 
risk criterion. The commenter suggested that the low-risk category be 
included in the final rule and delisted within 6 months following 
publication of the final rule. The delisting notices would designate 
health benchmarks and facilities would be required to submit evidence 
(e.g., tiered dispersion modeling) demonstrating that their emissions 
result in exposures that fall below the benchmarks. Following delisting 
of the category, an affected source could apply to EPA for a 
determination that it qualifies for inclusion in the low-risk category. 
After evaluating the source's petition, EPA would issue a written 
determination of applicability based on the petition that would be 
binding on the permitting authority (unless the petition was found to 
contain significant errors or omissions) and appealable by the affected 
source or interested parties.

[[Page 45988]]

The EPA could require all facilities that qualify for inclusion in the 
delisted category to comply with federally-enforceable conditions, 
similar to the conditions established in permits for synthetic minor 
sources (e.g., limits on potential to emit, production limits).
    The commenter also responded to objections regarding the 
subcategorization and delisting of low-risk facilities. The commenter 
stated that the contrasting of the terms category and subcategory 
offered a distinction that in no way limited EPA's authority to delist 
low-risk facilities. According to the commenter, the argument that EPA 
cannot create subcategories based on risk is contradicted by the 
statutory language, which expressly states that the categories and 
subcategories EPA creates under CAA section 112 need not match those 
created under CAA section 111. Furthermore, prior EPA statements do 
nothing to detract from EPA's broad discretion to establish categories 
and subcategories. The subcategorization factors previously discussed 
by EPA justify subcategorization based on risk. The authority cited by 
one commenter does not establish that EPA's discretion to alter 
subcategorization is limited in any way, and even if it were, EPA is 
not bound by any prior position. The arguments that EPA may not delist 
subcategories for carcinogens (or sources emitting carcinogens) rest on 
a formalistic distinction that EPA previously has rejected as 
meaningless, and that, at any rate, can be remedied with a simple 
recasting of a subcategory as a category. The commenter stated that 
doing so is undisputedly within EPA's authority.
    Three commenters addressed the issue of subcategorizing PCWP 
facilities based on characteristics other than risk. One commenter 
stated that the only option that appears consistent with the CAA, does 
not create excessive work for State and local agencies, and may be able 
to be based on science, is the subcategorization and delisting 
approach. However, the commenter added that the subcategories should be 
based on equipment or fuel use, not risk. The commenter stated that a 
subcategory based on site-specific risk creates a circular definition 
and does not make sense. The commenter also stated that subcategory 
delisting should occur before the compliance date so that facilities do 
not put off compliance in the hope or anticipation of delisting.
    The second commenter stated that EPA requested comment on the 
establishment of PCWP subcategories ostensibly based on physical and 
operational characteristics, but in reality based on risk. According to 
the commenter, this indirect approach is just a variation on the 
approach (direct reliance on risk) that it claims EPA itself notes 
would disrupt and weaken establishment of MACT floors, and is 
accordingly unlawful. The commenter stated that, even if these 
approaches were lawful, to the extent that EPA's proposal could be read 
to suggest that facilities could be allowed to become part of the 
allegedly low-risk subcategory in the future without additional EPA 
rulemaking, this too would be unlawful. According to the commenter, CAA 
section 112(c)(9) provides the EPA Administrator alone the authority to 
make delisting determinations, and such authority may not be delegated 
to other government authorities or private parties. The commenter 
stated that EPA's proposal suggests an approach entirely backward from 
the statute-allowing sources to demonstrate after-the-fact that they 
belong in a subcategory that has been delisted under section 112(c)(9), 
when the statute requires that EPA determine that no source in the 
category emits cancer-causing HAP above specified levels, or that no 
source in the category or subcategory emit non-carcinogenic HAP above 
specified levels, by the time EPA establishes the standard. The 
commenter stated that EPA has provided no explanation of how the 
suggested approaches would be lawful or workable.
    The third commenter indicated that low risk is an adequate and 
appropriate criterion for categorization. The commenter disagreed that 
EPA should create and delist categories on a technology basis when the 
intent is delisting of low-risk facilities. The commenter believed that 
seeking a technology-based surrogate for risk is unnecessary within the 
statutory framework. The commenter noted that the Congressional intent 
was ``to avoid regulatory costs which would be without public health 
benefit.'' (S. Rep. No. 228, 101st Cong., 1st. Sess. 175-6 (1990)) 
Nevertheless, the commenter described some technology-based criteria 
that they believed could be used to develop low-risk groups of PCWP 
facilities.
    Four commenters addressed the impact that creation of a low-risk 
subcategory under CAA section 112(c)(9) could have on the establishment 
of MACT floors for the PCWP category. Two commenters argued that such 
subcategorization would have a negative effect. One commenter stated 
that this situation provided a valid reason for EPA not to mix risk-
based and technology-based standards development. The commenter added 
that EPA also did not address how the ``once in, always in'' policy 
would apply in such a situation. The other commenter stated that this 
situation was another compelling reason why the suggested section 
112(c)(9) subcategorization approach was unlawful and arbitrary. The 
commenter stated that the flaw was so obvious, inherent, and contrary 
to the MACT floor provisions of CAA section 112 and its legislative 
history, that it proves the undoing of the suggested section 112(c)(9) 
exemption. According to the commenter, EPA cannot simultaneously 
exercise its source category delisting authority consistent with 
section 112(c)(9), establish appropriate MACT floors under CAA section 
112(d), and establish subcategory exemptions in the manner suggested by 
EPA, because the latter approach contravenes both section 112(c)(9) and 
the section 112(d) floor-setting process. The commenter stated that CAA 
section 112's major source thresholds and statutory deadlines make 
clear that sources meeting MACT by the time EPA is required to issue 
MACT standards must install MACT controls and may not subsequently 
throw them off or be relieved from meeting the MACT-level standards. 
While the CAA section 112(f) residual risk process allows EPA to 
establish more stringent emissions standards, there is nothing in the 
CAA that suggests EPA possesses authority to relax promulgated MACT 
standards.
    The third commenter indicated that dilution of the MACT floor would 
not occur if low-risk category delisting occurred as follows: (1) 
Propose low-risk category with final PCWP rule, (2) promulgate low-risk 
category 6 months after proposal, and (3) delist facilities prior to 
MACT compliance deadline. If EPA issued the final PCWP rule-thereby 
setting the MACT floor-before it allowed affected sources to apply for 
inclusion in the low-risk category to be delisted, then every affected 
source would be considered in the establishment of the MACT floor. 
Thus, as a result of this timing, the MACT floor could not be diluted 
because no sources would be exempted from MACT before the MACT floor is 
set.
    The fourth commenter believed that a MACT floor reevaluation would 
be appropriate and would further ensure that only facilities posing 
significant risk are required to install expensive controls.
    Response: We feel that establishing a low-risk PCWP subcategory 
under CAA section 112(c)(1) and deleting that subcategory under CAA 
section 112(c)(9) best balances Congress' dual

[[Page 45989]]

concerns that categories and subcategories of major sources of HAP be 
subject to technology-based (and possible future risk-based) emission 
standards, but that undue burdens not be placed on groups of sources 
within the PCWP source category whose HAP emissions are demonstrated to 
present little risk to public health and the environment. We do not 
contend that the CAA specifically directs us to establish categories 
and subcategories of HAP sources based on risk, and we recognize that, 
at the time of the 1990 CAA Amendments, Congress may have assumed that 
we would generally base categories and subcategories on the traditional 
technological, process, output, and product factors that had been 
considered under CAA section 111. However, when properly considered, it 
becomes apparent that Congress did not intend the unduly restrictive- 
and consequently over-regulatory-reading of the CAA that some 
commenters urge regarding low-risk PCWP facilities.
    Numerous CAA section 112 provisions evidence Congress' intent that 
we be able to find that sources, such as those in the PCWP category 
whose HAP emissions are below identified risk levels, should not 
necessarily be subject to MACT. These provisions, together with other 
indications of Congressional intent regarding the goals of section 112, 
must all be considered in determining whether we may base a PCWP 
subcategory on risk and delist that group of sources, without requiring 
additional HAP regulation that would be redundant for purposes of 
meeting Congress' risk-based goals.
    While it is true that CAA section 112(c)(1) provides that ``[t]o 
the extent practicable, the categories and subcategories listed under 
this subsection shall be consistent with the list of source categories 
established pursuant to section 111 and part C[,]'' the provision also 
states that ``[n]othing in the preceding sentence limits the 
Administrator's authority to establish subcategories under this 
section, as appropriate.'' Therefore, by its plain terms, section 
112(c)(1) does not preclude basing subcategories on criteria other than 
those traditionally used under section 111 before 1990, or those used 
after 1990 for sections 111 and 112. Moreover, while after 1990 we have 
principally used the traditional criteria to define categories and 
subcategories, such use in general does not restrict how we may define 
a subcategory in a specific case, ``as appropriate,'' since each HAP-
emitting industry presents its own unique situation and factors to be 
considered. (See, e.g., Sierra Club v. EPA, D.C. Cir. No. 02-1253, 2004 
U.S. App. LEXIS 348 (decided Jan. 13, 2004).)
    Even assuming for argument that the language of section 112(c)(1) 
may initially appear to restrict our authority to define subcategories, 
section 112(c)(1) cannot be read in isolation. A broad review of the 
entire text, structure, and purpose of the statute, as well as 
Congressional intent shows that, applied within the context of CAA 
section 112(c)(9), our approach of defining a low-risk subcategory of 
PCWP affected sources is reasonable, at the very least as a way to 
reconcile the possible tension between the arguably restrictive 
language of section 112(c)(1) and the Congressional intent behind 
section 112(c)(9). (See, e.g., Virginia v. Browner, 80 F.3d 869, 879 
(4th Cir. 1996).) Alternatively, even if the language is clear on its 
face in restricting our ability to define subcategories, we feel that, 
as a matter of historical fact, Congress could not have meant what the 
commenter asserts it appears to have said, and that as a matter of 
logic and statutory structure, it almost surely could not have meant 
it. (See, e.g., Engine Mfrs. Ass'n v. EPA, 88 F.3d 1075, 1089 (D.C. 
Cir. 1996).)
    Our interpretation of the CAA is a reasonable accommodation of the 
statutory language and Congressional intent regarding the relationship 
of the statutory categorization and subcategorization, delisting, MACT 
and residual risk provisions that apply to the PCWP category. This 
becomes clear in light of the issue addressed by commenters, which is 
whether we may delist a subcategory of low-risk PCWP affected sources 
only if such a group of sources is defined by criteria we have 
traditionally used to define categories and subcategories for 
regulatory, rather than delisting purposes. Our approach implements 
Congressional intent to avoid the over-regulatory result that flows 
from an overly rigid reading of the CAA. When the CAA is read as a 
whole, it is apparent that Congress-which in 1990 likely did not fully 
anticipate the policy considerations that come into play in regulating 
HAP emissions from PCWP affected sources-has not spoken clearly on the 
precise issue. Our interpretation is necessary to fill this statutory 
gap and prevent the thwarting of Congressional intent not to 
unnecessarily burden low-risk PCWP facilities by forcing them to meet 
stringent MACT controls when they already meet the risk-based goals of 
section 112. Our interpretation thus lends symmetry and coherence to 
the statutory scheme.
    While we do not feel that CAA section 112(c)(1) actually restricts 
our authority to establish a low-risk PCWP subcategory, even if the 
language is so restrictive, it must be read within the context of 
Congress' purpose in allowing us to delist categories and subcategories 
of low-risk sources that are defined according to the traditional 
criteria under CAA section 111. It is beyond dispute that Congress 
determined that certain identifiable groups or sets of sources may be 
delisted if, as a group and without a single constituent source's 
exception, they are below the enumerated eligibility criteria of CAA 
section 112(c)(9). There is no apparent reason why such a group or set 
of sources must be limited to those defined by traditional 
categorization or subcategorization criteria. This is because, first, 
Congress in section 112(c)(1) clearly did not absolutely prohibit us 
from basing categories and subcategories on other criteria generally; 
and, second, the underlying characteristic of an eligible set or group 
of sources under section 112(c)(9)-that no source in the set or group 
presents risks above the enumerated levels-can be applied under several 
approaches to defining categories and subcategories and is not 
dependent upon such set or group being traditionally defined in order 
to implement the purpose of section 112(c)(9). Put another way, there 
is nothing apparent in the statute that precludes us from delisting a 
discernible set of low-risk PCWP affected sources just because that set 
cannot also be defined according to other traditional criteria that 
have nothing to do with the question of whether each of the constituent 
PCWP affected sources is low risk. As a matter of logic and statutory 
structure, Congress almost surely could not have meant to require that 
every identifiable group of low-risk PCWP affected sources, no matter 
how large in number or in percentage with respect to higher-risk 
affected sources in the PCWP category, must remain subject to CAA 
section 112, simply because that group could not be subcategorized as 
separate from the higher risk PCWP affected sources by application of 
traditional subcategorization criteria.
    Where Congress squarely confronted the issue, it explicitly 
provided relief for categories and subcategories, defined by 
traditional criteria, that also happen to present little risk. (See CAA 
sections 112(d)(4), 112(c)(9), and 112(f)(2).) These CAA provisions 
addressing risk-based relief from, or thresholds for, HAP emissions 
regulation evidence

[[Page 45990]]

Congressional concern that the effects of such pollution be taken into 
account, where appropriate, in determining whether regulation under CAA 
section 112 is necessary. At the time of the 1990 Amendments, Congress 
did not consider it necessary to provide express relief for additional 
groups such as low-risk PCWP facilities, beyond those defined by 
traditional category and subcategory criteria, because it assumed we 
could implement a comprehensive regulatory scheme for air toxics that 
would both address situations where technology-based standards were 
needed to reduce source HAP emissions to levels closer to the risk-
based goals of section 112, and avoid unnecessary imposition of 
technology-based requirements on groups of sources that were already 
meeting those goals. Congress enacted or revised various CAA air toxics 
provisions--including sections 112(c), (d) and (f)--to that end. Had 
events unfolded in that anticipated fashion, in the case of each 
industrial category and subcategory, there would have been a perfect 
correlation between the traditional criteria for defining categories 
and subcategories and the facts showing whether those groups are either 
high-or low-risk HAP sources.
    This context turned out to be more complex than Congress 
anticipated, and in the case of PCWP facilities there is no clear 
differentiation between high-versus low-risk sources that corresponds 
to our traditional approach for identifying source categories and 
subcategories. Nevertheless, as in the case of a low-risk source group 
defined by traditional category or subcategory criteria, for the PCWP 
industry, we are able to identify a significant group of sources whose 
HAP emissions pose little risk to public health and the environment, 
applying the same section 112(c)(9) delisting criteria that would apply 
to any traditionally-defined source group. We feel it is reasonable to 
conclude that Congress would not have intended to over-regulate the 
low-risk PCWP affected sources due to the inability to define such a 
group by traditional criteria and thereby frustrate the coherent scheme 
Congress set forth of ensuring that HAP sources ultimately meet common 
risk-based goals under section 112.
    The commenter's assertion that we are inappropriately altering our 
interpretation of the applicable statutory provisions and departing 
from the traditional categorization and subcategorization criteria in 
addressing low-risk PCWP facilities is thus unfounded. As explained 
above, the complexity of the air toxics problem and the relationship 
between the traditional criteria and what might be groups of low-risk 
sources, a context not fully understood by either Congress or EPA at 
the time of the 1990 Amendments, provides adequate justification for 
any unique applications of the our approach for low-risk PCWP facilities.
    Our approach does not equate to one that Congress considered and 
rejected that would have allowed source-by-source exemptions from MACT 
based on individualized demonstrations that such sources are low risk. 
This is because, contrary to that approach, we rely upon the 
application of specific eligibility criteria that are defined in 
advance of any source's application to be included in the low-risk PCWP 
subcategory, in much the same way as any other applicability 
determination process works. Moreover, in response to the assertion 
that our approach nevertheless conflicts with legislative history 
rejecting a similar (but not identical) approach Congress considered 
under CAA section 112, this legislative history is not substantive 
legislative history demonstrating that Congress voted against relief 
from MACT in this situation-there is no such history. The commenters 
point to a provision in the House bill that was not enacted but that 
would have provided in certain situations for case-by-case exemptions 
for low-risk sources. There is no evidence that this provision was ever 
debated, considered, or voted upon, so its not being enacted is not 
probative of congressional intent concerning our ability to identify 
and delist a group of low-risk PCWP affected sources. Instead, it is 
reasonable to assume that, had Congress been aware in 1990 of the 
possibility that an identifiable group of PCWP affected sources is low 
risk, while that group does not correspond to traditional criteria 
differentiating categories and subcategories, Congress would have 
expressly, rather than implicitly, authorized our action here.
    Moreover, the commenters are unable to cite any provision in CAA 
section 112 that would prevent us from being able to add individual or 
additional groups of low-risk PCWP affected sources to the group we 
initially identify in our final delisting action, as those additional 
low-risk PCWP affected sources prove their eligibility for inclusion in 
the delisted group over time. In fact, the approach we are taking for 
identifying additional low-risk PCWP affected sources is fully 
consistent with the approach we have long taken in identifying, on a 
case-by-case basis and subject to appropriate review, whether 
individual sources are members of a category or subcategory subject to 
standards adopted under CAA sections 111 and 112.
    Regarding the comment that Congress did not expressly provide 
relief for carcinogen-emitting low-risk groups of sources within the 
PCWP category other than as an entire category, we construe the 
provisions of CAA section 112(c)(9) to apply to listed subcategories as 
well as to categories. This construction is logical in the context of 
the general regulatory scheme established by the statute, and it is the 
most reasonable one because section 112(c)(9)(B)(ii) expressly refers 
to subcategories. Under a literal reading of section 112(c)(9)(B), no 
subcategory could ever be delisted, notwithstanding the explicit 
reference to subcategories, since the introductory language of section 
112(c)(9)(B) provides explicit authority to only delist categories. 
Such a reading makes no sense, at the very least because Congress 
plainly assumed we might also delist another collection of sources 
besides either categories or subcategories, even in the case of sources 
of carcinogens. Both sections 112(c)(9)(B)(i) and (ii) refer 
additionally to groups of sources in the case of area sources as being 
eligible for delisting, even though only a category of sources is 
specifically identified as eligible for delisting in the introductory 
language of section 112(c)(9)(B). In light of the broader congressional 
purpose behind the delisting authority, we interpret the absence of 
explicit references to subcategories in this introductory language and 
in section 112(c)(9)(B)(i) as representing nothing more than a drafting 
error.
    Regarding the comments about establishing PCWP subcategories based 
on characteristics other than risk, the criteria for the low-risk 
subcategory we are delisting are based solely on risk and not on 
technological differences in equipment or emissions. We performed an 
analysis to determine which major source PCWP affected sources may be 
low-risk affected sources. Whether affected sources are low risk or not 
depends on the affected source HAP emissions; and affected source HAP 
emissions are a function of the type and amount of product(s) produced, 
the type of process units (e.g., direct-fired versus indirect-fired 
dryers) used to produce the product, and the emission control systems 
in place. Our analysis indicates that the affected sources which show 
low risk could include affected sources producing various products such 
as particleboard, molded particleboard, medium density fiberboard, 
softwood plywood, softwood veneer, fiberboard, engineered wood 
products, hardboard, and oriented strandboard. However, there are also 
major sources that

[[Page 45991]]

produce these products that are not low risk, and, therefore, product 
type cannot be used to define the low-risk subcategory. There is no 
correlation between production rate and low-risk affected sources 
(e.g., when affected sources are sorted by production rate for their 
product, the low-risk affected sources are not always at the lower end 
of the production rate range), so production rate cannot be used as 
criteria for defining the low-risk subcategory. The low-risk affected 
sources use a variety of process equipment (e.g., veneer dryers at 
softwood plywood plants and tube dryer at MDF plants). This same 
equipment is used at PCWP plants that are not low risk, and, therefore, 
there is no process unit type distinction that can be used to define 
the low-risk subcategory. The pollutant that drives the risk estimate 
can vary from affected source to affected source because of the 
different types of process units at each affected source. There is no 
clear distinction among low-risk and non-low-risk affected sources when 
ranked by emissions of individual pollutants because of other factors 
that contribute to affected source risk such as presence of a co-
located PCWP facility or variability in the pollutants emitted. Thus, 
there is no emissions distinction that can be used to define the low-
risk subcategory. There is no technological basis for creating a 
subcategory of PCWP affected sources that are low risk. The commonality 
between all of the low-risk PCWP affected sources is that they are low 
risk, and, therefore, we have established the low-risk subcategory 
based on risk.
    We do not agree with the commenters' assertions that our approach 
for the low-risk PCWP subcategory undermines our ability to identify 
the MACT floor for the larger PCWP category, either in today's final 
PCWP rule or in any future consideration of technological development 
under CAA section 112(d)(6). This is because, while low-risk PCWP 
affected sources will literally be part of a separate subcategory, 
there is nothing in the CAA that prevents us from including them in any 
consideration of what represents the best controlled similar source in 
the new source MACT floor context, and because it is not unprecedented 
for us to look outside the relevant category or subcategory in 
identifying the average emission limitation achieved by the best 
controlled existing sources if doing so enables us to best estimate 
what the relevant existing sources have achieved. In fact, EPA has 
taken this very approach in the Industrial Boilers MACT rulemaking, in 
order to identify the MACT floor for mercury emissions. Moreover, the 
unique issues presented by the low-risk PCWP subcategory show that it 
would be unreasonable to exclude any better-performing low-risk PCWP 
sources from the MACT floor pool for the larger PCWP category. 
Traditionally, EPA has based categories and subcategories partly on 
determinations of what pollution control measures can be applied to the 
relevant groups of sources in order to effectively and achievably 
reduce HAP. In other words, EPA has identified subcategories for 
purposes of identifying the MACT floor in a way that accounts for the 
differences of sources types in their abilities to control HAP 
emissions. But whether a PCWP source is a low-risk source does not 
necessarily turn on such a distinction--two sources might have 
identical abilities to control HAP emissions, but the unique 
circumstances of one source regarding the impacts of its HAP emissions 
will determine whether or not it is a low-risk PCWP source. (In fact, 
it is theoretically possible that between two sources the better 
performing source will be a high-risk source, and the worse-performing 
source will be a low-risk source, based on circumstances that are 
unrelated to the question of what abilities the sources have to control 
HAP emissions through application of MACT, such as the sources' 
locations vis a vis exposed human populations.) Therefore, EPA feels 
that not only is it appropriate to include any better-performing low 
risk PCWP sources in the MACT floor determinations for the larger PCWP 
category, but that excluding such sources simply based on the unique 
facts of the impacts of their emissions, with there being no difference 
in the abilities of high-risk and low-risk sources to apply HAP 
emission control measures, could result in an undesirable weakening of 
the MACT floor for the larger PCWP category. To that end, the MACT 
floors established for PCWP process units today are in no way affected 
by our establishment of the low-risk PCWP subcategory.
    Finally, we disagree with the argument by one commenter that the 
low-risk PCWP subcategory approach represents an impermissible cost-
based exemption from MACT or factor in determining MACT. Certainly it 
is true that costs may not be considered in setting the MACT floor. 
However, there is nothing in the CAA that prevents us from noting the 
cost impacts, beneficial or adverse, of our actions in setting MACT 
floors, assessing possible beyond-the-floor measures, or conducting 
risk-based actions under CAA section 112. In fact, we routinely 
evaluate the costs of our regulatory actions, even when cost factors 
may not be used to influence the regulatory decision itself, in order 
to comply with applicable Executive Order and statutory administrative 
review requirements. Simply because there is a cost benefit to some 
members of the PCWP category in our establishing a low-risk PCWP 
subcategory does not make that action impermissible, provided that our 
subcategorization and delisting are otherwise properly based on the 
appropriate risk-based criteria under CAA section 112(c)(9). Section 
112 by its own terms does not forbid the goal of achieving 
environmental protection in a less costly manner. Similarly, it is 
appropriate for EPA to note the beneficial air pollution-related 
impacts of not requiring low-risk PCWP sources to, for example, install 
criteria pollutant emission-producing RTOs. While it is true that such 
air quality-related impacts could not constitute non-air quality health 
and environmental impacts that EPA must consider when setting MACT 
under CAA section 112(d)(2), nothing in the CAA prevents EPA from 
taking account of such impacts in developing its policy regarding 
whether it is appropriate to delist a subcategory under section 
112(c)(9) when that subcategory otherwise meets the statutory criteria 
for delisting. Therefore, EPA does not agree with commenters who claim 
that its approach to delisting the low risk PCWP subcategory conflicts 
with how it has argued issues regarding either de minimis authority, 
cost-based exemptions from MACT, or the treatment of non-air quality 
impacts and the consideration of risk in setting the actual MACT 
standard before the U.S. Court of Appeals for the D.C. Circuit. Nor 
does our approach contravene any of that Court's rulings on these issues.
3. Criteria for Demonstrating Low Risk Dose-response Values
    Comment: Two commenters suggested that EPA incorporate into the 
PCWP rule the findings of the nationwide wood products risk assessment, 
which they claim demonstrates that the vast majority of wood products 
sources cause no meaningful risk to human health or the environment at 
current emission levels. The commenters stated that the risk assessment 
used existing air dispersion modeling studies of 34 wood products 
facilities throughout the U.S. to estimate the maximum annual off-site 
HAP concentrations at wood products facilities nationwide. According to 
the commenters, the risk assessment indicates that large

[[Page 45992]]

subgroups of facilities that are affected sources under the PCWP rule 
as proposed (i.e., fiberboard, medium density fiberboard, and plywood 
facilities) generally are expected to pose insignificant risks to human 
health, based on a comparison of predicted off-site concentrations with 
applicable health benchmarks. One of the commenters stated that many of 
the facilities with low off-site concentrations will likely be smaller 
plants that would not be able to justify installation of (additional) 
emission controls and may face closure without a risk-based compliance 
option. The other commenter stated that a comparison of off-site 
concentrations of formaldehyde and acetaldehyde with benchmarks 
reflecting the latest toxicological evidence indicates that exposures 
to those HAP are well below levels of concern. Acrolein was the only 
HAP with potential exposures at some affected sources (i.e., subset of 
fiberboard, medium density fiberboard and plywood affected sources) 
that exceeded the health benchmark. However, the commenter stated that 
the acrolein findings may not represent an actual risk to human health 
because exceedences of the benchmark may be attributable to EPA 
averaging a large number of non-detects at one-half the detection 
limit, thereby artificially increasing predicted acrolein emissions. 
Based on these overall findings, the commenter concluded that the wood 
products risk assessment indicates that incinerator control is not 
warranted on the basis of human health concerns for a large number of 
facilities.
    Response: We acknowledge receipt of the industry-sponsored 
nationwide wood products MACT risk assessment submitted by the 
commenter. However, we conducted our own risk analysis to evaluate the 
merits of including and delisting a low-risk subcategory in today's 
final PCWP rule. The methodology used in our risk analysis differed 
widely from the methodology used in industry's risk assessment. For 
example, industry's risk assessment was based on previously conducted 
air dispersion modeling studies for 34 PCWP facilities, while our 
analysis used emission estimates developed for each PCWP affected 
source expected to be a major source of HAP. We used different 
(generally more protective) human health benchmarks in our risk 
assessment than were used in industry's risk assessment. We also 
considered all HAP (including metal HAP) in our risk analysis, whereas 
industry's risk assessment considered only methanol, formaldehyde, 
acetaldehyde, acrolein, phenol, and propionaldehyde.
    Based on our risk analysis, we conclude that HAP emissions from 
some PCWP affected sources pose little risk to human health and the 
environment. Therefore, we have included a subcategory of low-risk PCWP 
affected sources in today's final PCWP rule, and are delisting that 
subcategory. Appendix B to subpart DDDD of 40 CFR part 63 includes 
procedures that facilities may use to demonstrate that they are part of 
the delisted low-risk subcategory, and, therefore, are not subject to 
the compliance options included in today's final PCWP MACT rule. To 
demonstrate eligibility for the low-risk subcategory, facilities must 
first conduct emissions testing for up to 13 HAP (five organic HAP from 
all process units, seven metal HAP from direct-fired process units, and 
MDI from presses processing product containing MDI resin). The 
rationale for selection of these 13 HAP is described elsewhere in this 
section and in the supporting documentation for the final rule. 
Facilities must use the results from emissions testing to preliminarily 
demonstrate, subject to EPA approval, that they are part of the low-
risk subcategory using either a look-up table analysis (based on the 
look-up tables included in appendix B to subpart DDDD of 40 CFR part 
63) or site-specific risk assessment methodology (described in appendix 
B to subpart DDDD of 40 CFR part 63 and other analytical tools, such as 
the ``Air Toxics Risk Assessment Reference Library'' if appropriate for 
the specific source) and risk benchmarks (described in appendix B to 
subpart DDDD of 40 CFR part 63).
    Regarding acrolein, the commenter is correct in that, when 
developing AP-42 emission factors, we used a value of one-half the 
detection limit for all non-detect sample runs if acrolein was detected 
in any sample runs from the applicable source category. Acrolein has 
been detected in process unit emissions from all sectors of the PCWP 
industry, except for hardwood plywood manufacturing. When using 
emission factors to estimate emissions from PCWP facilities, we did not 
estimate emissions of a pollutant when all of the emissions test runs 
were non-detect. However, we did use emission factors that included a 
mixture of detectable values and values based on one-half of the method 
detection limit (MDL) when acrolein was detected at least once for a 
particular type of process unit. We maintain that this approach to 
handling non-detects is appropriate for the purposes that we used the 
emissions data. Facilities will conduct emissions tests instead of 
using emission factors to demonstrate eligibility for the low-risk 
subcategory. To prevent facilities from including HAP that are not 
detected in their low-risk demonstrations, appendix B to subpart DDDD 
of 40 CFR part 63 states that facilities may use zero for non-detects 
when all of the emission test runs are below the MDL, provided that 
certain criteria are met to ensure that emissions testing and analysis 
procedures are adequate to detect low concentrations of HAP.
    Comment: One commenter stated that CAA section 112(d)(4) is 
particularly ill-suited to the PCWP and industrial boiler source 
categories. The commenter stated that, even if EPA had authority to 
create individualized MACT exemptions based on health thresholds, it 
could not do so if there is insufficient evidence on the pollutants 
emitted to establish a NOEL. According to the commenter, section 
112(d)(4) does not apply for chemicals that do not have a well-defined 
threshold based on reliable science. The commenter stated that 
available evidence does not establish a no-effect threshold for 
acetaldehyde, acrolein, benzene, carbon tetrachloride, chloroform, 
formaldehyde, manganese, methylene chloride, and phenol. As rationale, 
the commenter presented a summary of the available health effects data 
for each of these pollutants.
    Response: As stated elsewhere in this preamble, we are not pursuing 
establishment of a threshold emission rate for the PCWP source category 
under CAA section 112(d)(4) because PCWP affected sources emit non-
threshold pollutants. Therefore, this comment is irrelevant in the 
context of the PCWP rule. Comments pertaining to the Industrial/
Commercial/Institutional Boilers and Process Heaters NESHAP are 
addressed in the comment-response document for that rule. (See Docket 
ID No. OAR-2002-0058.)
    Comment: Two commenters expressed concern about the health 
benchmark data sources that EPA used. The first commenter argued that 
the proposal inappropriately used draft guidelines and toxicity 
profiles that had not been subject to public review and/or were not 
publicly available. The commenter was particularly concerned with the 
use of non-linear carcinogenic risk values and toxicity profiles (for 
HAP) that have not been finalized and are not available for review by 
the public.
    The second commenter argued that EPA should not rely solely on the 
health benchmarks in its Integrated Risk Information System (IRIS) 
database. The commenter stated that IRIS, while useful for obtaining 
information about the health effects of chemicals, is far

[[Continued on page 45993]] 

 
 


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