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

[[Page 53813]]

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Part II

Environmental Protection Agency

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40 CFR Part 63

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

[[Page 53814]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 63

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

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

AGENCY: Environmental Protection Agency (EPA).

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

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

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

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

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

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

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

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

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

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

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

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

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

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

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

[[Page 53815]]

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

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

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

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

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

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

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

D. When would a public hearing occur?

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

E. How is this document organized?

    The information in this preamble is organized as follows:

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

II. Background Information

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

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

[[Page 53816]]

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

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

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

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

Consistent with this legislative history, we can and do consider costs 
and economic impacts in determining GACT.
    As provided in CAA section 112(d)(5), EPA is electing to propose 
standards under CAA section 112(c)(3) based on GACT for EAF steelmaking 
facilities that are area sources. As stated further below (see section 
IV.D.3 of this preamble), we do not believe that a choice to base 
standards for these area sources on GACT, rather than MACT, requires 
justification. However, should justification be required, we are 
proposing standards based on GACT rather than on MACT because these 
facilities are already well controlled for the metal HAP these sources 
emit, and a regulation based on GACT will appropriately allow us to 
consider the costs and economic impacts of more stringent regulations. 
See the discussion of particulate matter (PM) controls in section 
IV.D.4 of this preamble. We believe the consideration of costs and 
economic impacts is especially important for EAF area sources because, 
given their current well-controlled levels, a MACT floor determination 
could result in only marginal reductions in HAP emissions at very high 
costs for modest incremental improvement in control. The consideration 
of cost is especially important for the small businesses that operate 
small specialty and stainless steel EAF facilities.
    We are proposing standards pursuant to CAA section 112(d)(2) for 
mercury emissions from all EAF steelmaking facilities that are area 
sources of HAP. Standards established under CAA section 112(d)(2) must 
reflect performance of MACT. The MACT-based regulation can be based on 
the emissions reductions achievable through application of measures, 
processes, methods, systems, or techniques including, but not limited 
to: (1) Reducing the volume of, or eliminating emissions of, such 
pollutants through process changes, substitutions of materials, or 
other modifications; (2) enclosing systems or processes to eliminate 
emissions; (3) collecting, capturing, or treating such pollutants when 
released from a process, stack, storage or fugitive emission point; (4) 
design, equipment, work practices, or operational standards as provided 
in section 112(h) of the CAA; or (5) a combination of the above.\3\
---------------------------------------------------------------------------

    \3\ Section 112(d)(4) (not relevant here) allows alternative 
risk-based standards for HAP which are threshold pollutants.
---------------------------------------------------------------------------

    The MACT floor is the minimum control level allowed for NESHAP and 
is defined under CAA section 112(d)(3). For new sources, MACT standards 
cannot be less stringent than the emission control achieved in practice 
by the best-controlled similar source, as determined by the 
Administrator. The MACT standards for existing sources can be less 
stringent than standards for new sources, but they cannot be less 
stringent than the average emission limitation achieved by the best 
performing 12 percent of existing sources in the category or 
subcategory (for which the Administrator has emission information) or 
the best performing 5 sources for categories or subcategories with 
fewer than 30 sources.
    Although emission standards are often structured in terms of 
numerical emissions limits, alternative approaches are sometimes 
necessary and are authorized pursuant to CAA section 112(d)(2). For 
example, in some cases, physically measuring emissions from a source 
may be not practicable due to technological and economic limitations. 
Sections 112(d)(2)(D) and 112(h) of the CAA authorize EPA to promulgate 
a design, equipment, work practice, or operational standard, or 
combination thereof, consistent with the provisions of CAA sections 
112(d) or (f), in those cases where it is not feasible to prescribe or 
enforce an emission standard. Under CAA section 112(h)(2), the phrase 
``not feasible to prescribe or enforce an emission standard'' includes 
situations in which the EPA determines that the HAP emissions cannot be 
emitted through a conveyance designed and constructed to emit or 
capture the emissions or the application of measurement methodology to 
a particular class of sources is not practicable due to technological 
and economic limitations.
    We are proposing an emissions standard for mercury pursuant to CAA 
section 112(d)(2)(A) that is based on pollution prevention measures 
which

[[Page 53817]]

``reduce the volume of, or eliminate emissions of, such pollutants 
through process changes, substitution of materials, or other 
modifications.'' We describe below why this standard establishes the 
MACT floor for mercury under section 112(d)(3), and further why we are 
not proposing beyond-the-floor standards for mercury. We note first, 
however, that we do not view standards requiring (or directly based 
upon) pollution prevention to be work practices under section 112(h). 
This is because the statute specifically differentiates between 
emission standards requiring pollution prevention measures (``measures 
which reduce the volume of, or eliminate emissions of, such [HAP] 
through * * * substitution of materials'') and those requiring work 
practices, with only the latter requiring separate justification under 
section 112(h). Compare section 112(d)(2)(A) and (D).\4\ This is a 
reasonable construction, since there is reason to favor standards 
requiring use of pollution prevention measures, which eliminate HAP 
emissions altogether, over standards reflecting merely the capture of 
some portion of an emitted HAP. There is thus no reason to disfavor 
pollution prevention-based standards by allowing their use only if the 
section 112(h) criteria are also satisfied.
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    \4\ Such a standard is an ``emission standard'' since it 
``limits the quantity * * * of emissions of air pollutants on a 
continuous basis''. See section 302(k)(definition of ``emission 
standard'').
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    However, even assuming, for the sake of argument, that the proposed 
pollution prevention standards for mercury are considered to be work 
practices, it is not feasible to prescribe or enforce an emissions 
limit for mercury, within the meaning of section 112(h). We believe 
that continuous emission monitoring systems (CEMS) for mercury 
concentration and volumetric flow rate would be needed for EAF, because 
EAF steelmaking is a batch process, and mercury emissions vary 
enormously from batch to batch as different scrap sources are 
processed. Indeed, emissions have been shown to vary by two orders of 
magnitude at a single plant.\5\ Cf. Mossville Environmental Action Now 
v. EPA, 370 F. 3d 1232, 1240 (D.C. Cir. 2004) (noting that EPA 
reasonably declined to establish MACT floor levels based on single 
emission level measurements from batch process operations because of 
constant change in those levels).
---------------------------------------------------------------------------

    \5\ See ``Analysis of Mercury Emissions Test Data'' in Docket ID 
No. EPA-HQ-OAR-2004-0083.
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    We therefore examined the technological and economic feasibility of 
continuous monitoring for mercury from these sources. We note first 
that mercury CEMS are not demonstrated for EAF, raising a threshold 
question of their technical feasibility for all EAF. Furthermore, most 
EAF discharge emissions from positive pressure baghouses without 
stacks. Continuous mercury monitoring would not be technically feasible 
for these EAF (i.e., stackless EAF), even assuming that mercury CEMS 
were otherwise demonstrated for EAF. This is because volumetric flow 
rate and concentration would need to be determined by CEMS to measure 
the mass emission rate of mercury, and without a stack, it is nearly 
impossible to obtain an accurate measurement of volumetric flow rate or 
to obtain representative measurements of mercury concentration in the 
discharged emissions. Indeed, EPA has previously determined that the 
use of continuous opacity monitoring systems (COMS) was not feasible 
for positive pressure baghouses without stacks for this 
reason.6, 7
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    \6\ For example, EPA estimated that 70 of 130 electric arc 
furnaces (EAF) subject to the new source performance standard (NSPS) 
were not required to install continuous opacity monitors because of 
the configuration of their baghouse. (See the EPA fact sheet for the 
NSPS amendments available at http://www.epa.gov/ttn/oarpg/t1/fact_sheets/eaf_npsfs.pdf
).

    \7\ Retrofitting such sources with stacks would be extremely 
costly for most electric arc furnaces (EAFs) to the point that it 
would not be economically practicable to do so. See ``Estimated 
Impacts of Proposed Area Source Standard for EAF'' in EPA Docket ID 
No. EPA-HQ-OAR-2004-0083. EPA believes that one takes a source as 
one finds it for purposes of applying section 112(h), and therefore 
that it is simply not technologically practicable to apply 
continuous mercury monitoring technology to a stackless EAF.
---------------------------------------------------------------------------

    Some EAF do have stacks, and the limited amount of mercury 
emissions data from EAF which EPA has comes from such sources. These 
limited test data were collected using manual test methods and are 
therefore not reliable for determining an EAF's actual performance 
because these short-term test results are not representative of the 
long-term operation of a cyclic batch process. The results of the 
different manual tests (typically 1-hour runs) show a variability of 
over two orders of magnitude within a single source (as well as across 
sources) and reinforce the conclusion that continuous monitoring would 
be needed to prescribe and enforce a numerical emissions limit for 
mercury.\8\ As noted, CEMS are not demonstrated for these sources. For 
these reasons, we do not believe it technologically practicable to 
apply continuous measurement methodology to even EAFs with stacks.
---------------------------------------------------------------------------

    \8\ See ``Analysis of Mercury Emissions Test Data'' in EPA 
Docket ID No. EPA-HQ-OAR-2004-0083.
---------------------------------------------------------------------------

    We also examined the possibility of setting a direct limit on the 
amount of mercury entering the EAF and thus limiting emissions.\9\ 
However, the scrap charged to EAF includes many shapes and sizes, 
bundles, discrete pieces, and various sizes of shredded metal. 
Accordingly, there is no way to obtain representative samples for 
analysis of mercury content to develop or enforce a mercury limit for 
the scrap. The number of mercury switches in the scrap (the predominant 
source of mercury in the scrap, and hence to an EAF) also cannot be 
determined for the same reasons. In addition, the switches would not be 
recognizable after scrap dealers have crushed and shredded incoming 
scrap. Consequently, we propose that it is not feasible or practicable 
to establish a limit for mercury in the scrap.
---------------------------------------------------------------------------

    \9\ However, as explained in section IV.D.1 of this preamble, 
the standard we are proposing effectively establishes such a limit.
---------------------------------------------------------------------------

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

III. Addition and Revision to Source Category Lists

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

    \10\ Additional information on the ``1990 Emissions Inventory of 
Section 112(c)(6) Pollutants'' is available at http://www.epa.gov/ttn/atw/112c6/112c6pg.html
.

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

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

[[Page 53818]]

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

IV. Proposed NESHAP for EAF Steelmaking Facilities

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

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

B. What are the production processes and emissions sources?

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

C. Summary of the Proposed Requirements

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

[[Page 53819]]

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

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

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

    EAF facilities could also obtain scrap from scrap providers 
participating in other programs. To do so, the facility owner or 
operator would have to submit a request to the Administrator for 
approval to comply by purchasing scrap from scrap providers that are 
participating in another switch removal program and demonstrate to the 
Administrator's satisfaction that the program meets the following 
specified criteria: (1) There is an outreach program that informs 
automobile dismantlers of the need for removal of mercury switches and 
provides training and guidance on switch removal, (2) the program has a 
goal for the removal of at least 80 percent of the mercury switches, 
and (3) the program sponsor must submit annual progress reports on the 
number of switches removed and the estimated number of motor vehicle 
bodies processed (from which a percentage of switches removed is easily 
derivable).
    EAF facilities that purchase motor vehicle scrap from scrap 
providers that do not participate in an EPA-approved mercury switch 
removal program would have to prepare and operate pursuant to and in 
conformance with a site-specific plan for the removal of mercury 
switches. The facility's scrap specifications would have to include a 
requirement for the removal of mercury switches, and the plan must 
include provisions for obtaining assurance from scrap providers that 
mercury switches have been removed. The plan would be submitted to the 
Administrator for approval and would demonstrate how the facility will 
comply with specific requirements that include: (1) A means of 
communicating to scrap purchasers and scrap providers the need to 
obtain or provide motor vehicle scrap from which mercury switches have 
been removed and the need to ensure the proper disposal of the mercury 
switches, (2) provisions for obtaining assurance from scrap providers 
that motor vehicle scrap provided to the facility meets the scrap 
specifications, (3) provisions for periodic inspection, site visits, or 
other means of corroboration to ensure that scrap providers and 
dismantlers are implementing appropriate steps to minimize the presence 
of mercury switches in motor vehicle scrap, (4) provisions for taking 
corrective actions if needed, and (5) requiring each motor vehicle 
scrap provider to provide an estimate of the number of mercury switches 
removed from motor vehicle scrap sent to the facility during the 
previous year and the basis for the estimate. The Administrator would 
be able to request documentation or additional information from the 
owner or operator at any time. The site-specific plan must establish a 
goal for the removal of at least 80 percent of the mercury switches. 
All documented and verifiable mercury-containing components removed 
from motor vehicle scrap would count towards the 80 percent goal.
    An equivalent compliance option would be provided for EAF 
steelmakers who do not utilize motor vehicle scrap that contains 
mercury. The option would require the facility to certify that the only 
materials they are charging from motor vehicle scrap are materials 
recovered for their specialty alloy, such as chromium in certain 
exhaust systems. Such materials are known not to contain mercury, and 
because the specialty steels must meet stringent product quality and 
performance specifications, automobile scrap with contaminants such as 
mercury, lead, zinc, and copper is not accepted.\12\
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    \12\ Letter from Joseph Green, Counsel to the Specialty Steel 
Industry of North America, to Steve Fruh, Environmental Protection 
Agency. Information Regarding Specialty Steel Industry Segment. July 
30, 2004.
---------------------------------------------------------------------------

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

[[Page 53820]]

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

[[Page 53821]]

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

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

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

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

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

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

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

[[Page 53822]]

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

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

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

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

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

    The NVMSRP is the result of a two-year collaborative effort 
involving EPA, the End of Life Vehicle Solutions Corporation 
(ELVS),\18\ the American Iron and Steel Institute, the Steel 
Manufacturers Association, the Institute of Scrap Recycling Industries, 
the Automotive Recyclers Association, Environmental Defense, the 
Ecology Center (Ann Arbor), and representatives of the Environmental 
Council of the States. The goal of the NVMSRP is to significantly 
reduce air emissions of mercury from steelmaking facilities that 
utilize auto shred by substantially reducing the number of mercury-
containing switches in scrap automobiles before they are crushed and 
shredded for recycling. This is being accomplished through education 
and outreach for those removing switches; removal, collection and 
management of switches; transport of the switches to a qualified 
retorter that has the permits that allow for managing the switches 
under RCRA subtitle C; recordkeeping and accountability of mercury 
recovery; scrap selection and corroboration; and review and improvemen