National Emission Standards for Hazardous Air Pollutants From the Portland Cement Manufacturing Industry and Standards of Performance for Portland Cement Plants, 28318-28326 [2011-12095]

Download as PDF 28318 Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Rules and Regulations ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 60 and 63 [EPA–HQ–OAR–2002–0051; EPA–HQ–OAR– 2007–0877; FRL–9306–7] RIN 2060–AQ93 National Emission Standards for Hazardous Air Pollutants From the Portland Cement Manufacturing Industry and Standards of Performance for Portland Cement Plants Environmental Protection Agency (EPA). ACTION: Denial in part and grant in part of petitions to reconsider. AGENCY: The Environmental Protection Agency (EPA or Agency) is denying in part and granting in part the petitions to reconsider the final revised National Emission Standards for Hazardous Air Pollutants emitted by the Portland Cement Industry and the New Source Performance Standards for Portland Cement Plants issued under sections 112(d) and 111(b) of the Clean Air Act, respectively. The EPA is also denying all requests that the EPA issue an administrative stay of the National Emission Standards for Hazardous Air Pollutants and the New Source Performance Standards. DATES: This action is effective May 17, 2011. ADDRESSES: The EPA’s docket for this action is Docket ID No. EPA–HQ–OAR– 2002–0051. All documents in the docket are listed on the https:// www.regulations.gov Web site. Although listed in the index, some information is not publicly available, e.g., confidential business information (CBI) or other information where disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically through https:// www.regulations.gov or in hard copy at the EPA’s Docket Center, Public Reading Room, EPA West Building, Room 3334, 1301 Constitution Avenue, NW., Washington, DC 20004. This Docket Center 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. Keith Barnett, Office of Air Quality Planning and Standards; Sector Policies jdjones on DSK8KYBLC1PROD with RULES SUMMARY: VerDate Mar<15>2010 13:18 May 16, 2011 Jkt 223001 and Programs Division, Minerals and Manufacturing Group (D243–02); Environmental Protection Agency; Research Triangle Park, NC 27111; telephone number: (919) 541–5605; fax number: (919) 541–5450; e mail address: barnett.keith@epa.gov. SUPPLEMENTARY INFORMATION: On August 6, 2010, the EPA signed a final rule establishing and amending various air emission limits applicable to the Portland cement industry. See 75 FR 54970 (Sept. 9, 2010). The rule establishes National Emission Standards for Hazardous Air Pollutants (NESHAP) for emissions of mercury, total hydrocarbons (THC), and particulate matter (PM) from new and existing cement kilns located at major and area sources, and for emissions of hydrochloric acid (HCl) from new and existing kilns located at major sources. The rule also establishes New Source Performance Standards (NSPS) for emissions of PM, nitrogen oxides, and sulfur dioxide at cement kilns that commence construction, modification, or reconstruction after June 16, 2008. Various entities representing both the regulated industry and the environmental community have petitioned the EPA for reconsideration of various standards in these rules, in particular the NESHAP. A number of industry petitioners also requested that the EPA issue an administrative stay of the NESHAP and NSPS. For the reasons stated below, the EPA is denying reconsideration on certain issues raised in the petitions and is granting reconsideration on a number of other issues. The EPA is also denying all requests that it issue an administrative stay. I. Standard for Reconsideration Section 307(d)(7)(B) of the Clean Air Act (CAA) states that: ‘‘Only an objection to a rule or procedure which was raised with reasonable specificity during the period for public comment (including any public hearing) may be raised during judicial review. If the person raising an objection can demonstrate to the Administrator that it was impracticable to raise such objection within such time or if the grounds for such objection arose after the period for public comment (but within the time specified for judicial review) and if such objection is of central relevance to the outcome of the rule, the Administrator shall convene a proceeding for reconsideration of the rule and provide the same procedural rights as would have been afforded had the information been available at the time the rule was proposed. If the PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 Administrator refuses to convene such a proceeding, such person may seek review of such refusal in the United States court of appeals for the appropriate circuit (as provided in subsection (b)). Such reconsideration shall not postpone the effectiveness of the rule. The effectiveness of the rule may be stayed pending such reconsideration, however, by the Administrator or the court for a period not to exceed three months.’’ As to the first procedural criterion for reconsideration, a petitioner must show why the issue could not have been presented during the comment period, either because it was impracticable to raise the issue during that time or because the grounds for the issue arose after the period for public comment (but within 60 days of publication of the final action). In the EPA’s view, an objection is of central relevance to the outcome of the rule only if it provides substantial support for the argument that the promulgated regulation should be revised. See, e.g., the EPA’s Denial of the Petitions to Reconsider the Endangerment and Cause or Contribute Findings for Greenhouse Gases under Section 202 of the Clean Air Act, 75 FR 49556, 49561 (Aug. 13, 2010). This interpretation is appropriate in light of the criteria adopted by Congress in this and other provisions in section 307(d). Section 307(d)(4)(B)(i) provides that ‘‘[a]ll documents which become available after the proposed rule has been published and which the Administrator determines are of central relevance to the rulemaking shall be placed in the docket as soon as possible after their availability.’’ This provision draws a distinction between comments and other information submitted during the comment period, and other documents which become available after publication of the proposed rule. The former are docketed irrespective of their relevance or merit, while the latter must be docketed only if a higher hurdle of central relevance to the rulemaking is met. For more extended discussions of the standard for reconsideration under section 307(d)(7)(B), please see 75 FR 49556, 49560–49563 (August 13, 2010) and 76 FR 4780, 4786–4788 (January 26, 2011). II. The Petitions for Reconsideration A. Petition of the Portland Cement Association (PCA) 1. PCA maintains that after the close of the comment period on the proposed cement NESHAP, the EPA proposed inter-related rules regulating E:\FR\FM\17MYR1.SGM 17MYR1 jdjones on DSK8KYBLC1PROD with RULES Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Rules and Regulations Commercial and Industrial Solid Waste Incinerators (CISWI) and proposing a definition of solid waste for nonhazardous secondary materials. Petition p. 2. PCA alleges that these proposed rules ‘‘eviscerate the statistical underpinning for the NESHAP rule.’’ Petition p. 2. PCA states that under the proposed rule defining non-hazardous secondary materials that are solid wastes (‘‘solid waste definition rule’’), many cement kilns would have been considered to be incinerators (i.e., units that combust ‘‘solid waste,’’ as that term is defined by the Administrator under RCRA, see section 129(g)(6)), rather than cement kilns. PCA further states that under the proposed waste definition rule, virtually all of the cement kilns comprising the pool of best performers for each of the cement NESHAP floors would be incinerators since they burn secondary materials that would have been defined as solid waste under the proposed solid waste definition rule. Although acknowledging that the EPA had discussed in the proposed cement NESHAP how it intended to classify cement kilns that burn secondary materials (Petition p. 8), PCA maintains that it had no notice of the potential impact of the CISWI rule and solid waste definition rule until the EPA proposed a definition of solid waste, and, in particular, that PCA was unaware of the potential practical implications of the issue until the EPA proposed a solid waste definition. Petition pp. 10, 12. Petitioners maintain that the EPA cannot permissibly classify the same kilns as affected sources under both rules, and requests that the EPA stay the Portland cement NESHAP administratively pending reconsideration of the issue. 2. PCA next maintains that the EPA adopted standards for open clinker cooler piles in the NESHAP without giving proper notice of what those standards might be. Petition p. 11. 3. PCA further requests reconsideration of the standards for startup and shutdown operations. PCA argues that the final standards deviated from those proposed, because the EPA had proposed that the same standards that apply during normal operation also apply during startup and shutdown operations, whereas the final rule adopts standards for startup and shutdown that differ from those applicable during normal operation. Petition p. 14. PCA maintains that it had no notice of the data on which such standards were based, because the standards are not based on emissions data. Id. p. 15. The petition further states that the standards for startup and shutdown were adopted in disregard of VerDate Mar<15>2010 13:18 May 16, 2011 Jkt 223001 the requirements of section 112(d)(3) of the CAA, again largely because the standards are not based on emissions data. Id. 4. In the final rule, the EPA adopted a provision establishing an affirmative defense to civil penalties for exceedances of emission standards which result from malfunction events. PCA requests that the EPA reconsider this affirmative defense provision, which it characterizes as overly cumbersome, and issued without notice and adequate opportunity for public comment. Id. at 16. 5. PCA also requests that the EPA reconsider the standards for PM, including the new source standard for PM in the NSPS. Id. PCA alleges that the EPA ‘‘reduce[d] the PM limits * * * dramatically’’ between proposal and final rule, and that the change was based on information hand-picked by the EPA which information was not known to petitioners. Id. In a follow-up letter of December 14, 2010, PCA expanded on its petition to state that the key change between proposal and final rule, made without proper notice, was to express the PM standard as a 30-day average and to use a statistical methodology (Upper Prediction Limit, or UPL) in calculating that limit. December 14 Letter p. 3. 6. PCA also requested that the EPA reconsider a number of issues of a more technical nature (many of which pertain to the standards for open clinker piles). Petition Exhibit 1. B. Petition of Eagle Materials Eagle Materials challenges application of the NESHAP’s monitoring requirements to sources equipped with monovents (vents on the top of a control device rather than a single stack). Although acknowledging that this issue was presented during the public comment period, Eagle Materials maintains that the EPA’s disposition of the issue was based on technical assumptions which are unfounded and unanticipated by Eagle and other commenters. Eagle Materials also maintains that the EPA adopted standards for clinker storage piles without providing adequate notice of what those standards might be. C. Petitions of Sierra Club, Downwinders at Risk, Friends of Hudson, Huron Environmental Activist League, Desert Citizens Against Pollution, Montanans Against Toxic Burning, and the Natural Resources Defense Council A number of environmental groups filed petitions requesting that the EPA reconsider the provision establishing an PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 28319 affirmative defense to civil penalties for emission exceedances demonstrated to have occurred as a result of a malfunction event (as defined). The petitions maintain that the EPA adopted this provision without adequate notice and opportunity for public comment. III. Decision on Issues Raised in the Petitions A. Issues on Which the EPA Is Denying Reconsideration 1. Relationship Between Portland Cement NESHAP, Solid Waste Definition and CISWI Rule PCA maintains that ‘‘EPA proposed the CISWI/‘solid waste’ definition rules after the comment period closed on the NESHAP rule, foreclosing any real opportunity for PCA to assess and comment on the impacts of the NESHAP. Indeed, it was not until EPA proposed the subsequent CISWI/‘solid waste’ rules that * * * PCA had notice with any real specificity of the number of cement facilities that may end up being regulated as CISWI facilities.’’ Petition p. 8. The EPA is denying rehearing on this issue because the petitioners have failed to demonstrate that it was impracticable to raise their objection during the public comment period. In addition, the fact that some cement kilns may have a later change of regulatory classification after the NESHAP is promulgated is not an issue of central relevance to the outcome of the NESHAP rule, as required by the statutory standard for reconsideration. Finally, as discussed below, even if the impacts of the solid waste rule had been assessed, it would not have made a significant difference in the final Portland Cement NESHAP. a. Was it impractical to raise the objection within the comment period? Section 307(d)(7)(B) requires the EPA to grant reconsideration of an issue ‘‘[i]f the person raising the objection can demonstrate to the Administrator that it was impracticable to raise such objection within [the period for public comment] or if the grounds for such objection arose after the period for public comment’’. PCA could have objected during the comment period on the proposed Portland Cement NESHAP to EPA’s classification of all Portland cement kilns burning secondary materials 1 as cement kilns. In the 1 A ‘‘secondary material’’ is a material that can potentially be classified as a solid waste under the Resource Conservation and Recovery Act when recycled. 50 FR 616 n. 4 (Jan. 4, 1985). Under the newly adopted regulatory definition of solid waste, secondary materials encompass ‘‘any material that is not the primary product of a manufacturing or E:\FR\FM\17MYR1.SGM Continued 17MYR1 28320 Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Rules and Regulations jdjones on DSK8KYBLC1PROD with RULES proposed Portland Cement NESHAP, the EPA proposed to classify all cement kilns, including those burning secondary materials, as cement kilns for the NESHAP rulemaking, and explained why it was doing so. The EPA discussed the interplay between the cement kiln NESHAP and the forthcoming rules for incinerators which burn solid waste, noting that ‘‘some Portland cement kilns combust secondary materials as alternative fuels’’. 74 FR at 21138. The EPA then stated that because there was no regulatory definition of solid waste that would distinguish which of these alternative fuels burned by cement kilns were wastes and which were not, the EPA would therefore classify all of the units as cement kilns. Id. The EPA reasoned that unless and until the Agency adopts a definition of solid waste classifying the alternative fuels, cement kilns burning secondary materials as fuels or otherwise using secondary materials are lawfully classified as cement kilns and rules for cement kilns therefore would apply to them. Id. The EPA also articulated the principle of which PCA states it lacked notice: The NESHAP would be based on the performance of all devices which were cement kilns at the time of the Portland Cement NESHAP rulemaking. Id. The EPA further found that combustion of secondary materials as alternative fuels by cement kilns ‘‘did not have any appreciable effect on the amount of hazardous air pollutants (HAP) emitted by any source.’’ Id. The record for the proposed rule included an inventory of every material burned by a large group of cement kilns over a 30-day period, including all of those comprising the pool of best performers for mercury.2 Neither PCA nor any other commenter objected to any aspect of the issue of the interplay between the cement kiln NESHAP and the CISWI/waste definition rules during the comment period.3 PCA has consequently failed to satisfy the requirement of section 307(d)(7)(B) that it was impractical to commercial process, and can include postconsumer material, off-specification commercial chemical products or manufacturing chemical intermediates, post-industrial material, and scrap.’’ 40 CFR 241.2. 2 See docket item EPA–HQ–OAR–2002–0051– 2043. 3 Two commenters (# 2816 and 2846) noted EPA’s approach. One of these commenters approvingly summarized EPA’s position to classify all cement kilns as cement kilns, based on their status at the time of the NESHAP. The other commenter simply summarized EPA’s position. Neither of these comments is an objection putting EPA on notice that a commenter disagreed with EPA’s approach or otherwise raising ‘‘with reasonable specificity’’ (section 307(d)(7)(B)) any issue that EPA’s approach was objectionable for legal or policy reasons. VerDate Mar<15>2010 13:18 May 16, 2011 Jkt 223001 raise the issue during the public comment period or that the grounds for their objection arose after the close of the comment period. Petitioners maintain that ‘‘it was impossible for PCA to provide informed comments on the interplay between the CISWI/‘solid waste’ definition rules and the NESHAP rule’’ until the Agency proposed those rules on April 29, 2010, after the close of the comment period in the NESHAP. Petition p. 10. Acknowledging that the EPA had already raised the issue in the proposed cement NESHAP, petitioners maintain that ‘‘[a] generic comment is not adequate to put stakeholders on fair notice that the CISWI/‘solid waste’ definition rules could fundamentally change the scope of the NESHAP source category.’’ Id.4 But the EPA’s discussion at proposal was not generic. It was a considered discussion stating the approach to classification the EPA intended to adopt (and did adopt) in the final rule, citing moreover to the EPA’s Advance Notice of Proposed Rulemaking (74 FR 42, January 2, 2009) which had discussed the universe of secondary materials burned by units including cement kilns, and the considerations the Agency might use in ultimately classifying these materials by rule as waste or non-wastes. The administrative record likewise contained item-by-item accounting— cited to by the EPA when presenting the issue of kiln classification for public comment—of every secondary material burned by a large group of cement kilns over an extended period. PCA appears to be stating that although the EPA had raised the issue of kiln classification at proposal, the practical implications of the EPA’s approach were not clear until the EPA proposed a solid waste definition and CISWI standards. But the EPA stated that it would classify all cement kilns as cement kilns during the NESHAP rulemaking unless a final definition of solid waste changed their regulatory status prior to the completion of the section 112 Portland Cement NESHAP. That issue was unaltered by the EPA issuing a proposed solid waste definition and proposed CISWI standards. Just like the proposed cement NESHAP, the final cement NESHAP was based on the performance of units classified as cement kilns at the time of the cement NESHAP rulemaking. This 4 Nonetheless, had the final solid waste definition been in place at the time of the final Portland Cement NESHAP rulemaking, there would have been only modest change in the scope of the NESHAP source category and the final standards would have been largely unaltered. See Table 1 below. PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 included all cement kilns burning alternative fuels. PCA’s objection is no different before the proposed solid waste definition and CISWI rules than after that proposal. The same issue is presented now as was presented at proposal: Whether devices which are classified as cement kilns in the absence of a regulatory waste definition are properly so classified if they were burning secondary materials that might ultimately be classified as solid wastes. Moreover, the type of secondary materials the cement kilns were burning was well-documented in the NESHAP administrative record (and known to PCA in any case).5 PCA’s decision not to comment on the issue because of perceived lack of practical effect was their choice, not the result of lack of notice. For this reason, PCA’s statement that it could not gauge the impact of the NESHAP until the proposed waste definition/CISWI rule appeared (Petition p. 10) misses the point. Those impacts were going to be the same because the EPA had made clear that it would continue to classify cement kilns as cement kilns so long as that remained their legal status. This status remained the same throughout the rulemaking. b. Are petitioners’ objections of central relevance to the outcome of the rule? Section 307(b)(7)(B) also requires that for reconsideration to be required, objections must be ‘‘of central relevance to the outcome of the rule.’’ The EPA does not believe that is the case here, for reasons both legal and practical. The EPA believes that it validly based the NESHAP on the performance of devices which were cement kilns at the time of the rulemaking. See section 112(d)(3)(A) which states that maximum achievable control technology (MACT) floors for existing sources are to reflect performance of sources for which the EPA has emissions information, indicating that standards are to reflect sources’ legal status and performance at the time of the rulemaking.6 Later rules 5 Fuels Use in Portland Cement Kilns, April 25, 2011. 6 There is no valid argument that cement kilns burning alternative fuels were already commercial and solid waste incinerators at the time of the NESHAP rulemaking. First, all of these kilns certified that they were cement kilns in compliance with the 1999 MACT standards for the Portland Cement category (pursuant to 40 CFR sections 63.1353(b)(5) and 63.9(h)). Second, the status of these alternative fuels as solid wastes or not solid wastes could not be determined in the absence of a regulatory definition addressing the status of those fuels. 74 FR at 21138. Although there is a statutory definition of solid waste in the Resource Conservation and Recovery Act (at section 1004 (27)), that definition does not apply directly to section 129, but must be implemented by means of an EPA-promulgated regulation. See CAA section E:\FR\FM\17MYR1.SGM 17MYR1 Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Rules and Regulations that prospectively establish the classification of certain of the alternative fuels that these kilns burned does not alter these kilns’ status— cement kilns—at the time of the cement NESHAP rulemaking. This is all that matters. The solid waste definition rule adopted a half year after the signature of the Portland Cement NESHAP rule is not relevant to the cement kilns’ classification at the time of the NESHAP rulemaking. PCA argues, however, that the situation here is controlled by the DC Circuit’s opinion in NRDC v. EPA, 489 F. 3d 1250 (DC Cir. 2007) (‘‘Boiler MACT’’). Petition p. 8. We disagree. In that case, the EPA had adopted a definition of ‘‘solid waste incineration unit’’ which classified ‘‘commercial or industrial waste’’ to include only solid waste combusted in units which do not recover energy. 489 F. 3d at 1258. The EPA issued MACT standards predicated upon no boilers being incinerators due to their energy recovery purpose and design. The court held that the definition was impermissible in that it classified units burning solid waste as boilers rather than as commercial and industrial solid waste incineration units and noted that ‘‘[t]he effect of these definitions is to substantially reduce the number of commercial or industrial waste combustors subject to section 129’s standards’’. Id. The court continued: [Since the Court is requiring] EPA to revise the CISWI Definitions Rule * * *, the Boilers Rule will need to be revised as well because the universe of boilers subject to its standards will be far smaller and more homogenous after all CISWI units * * * are removed from its coverage. Given the likelihood (if not certainty) that the Boilers Rule will change substantially as a result of our vacatur of the challenged ‘‘solid waste’’ definition, we believe the Boilers Rule should be vacated in its entirety and remanded for EPA to repromulgate after revising the CISWI Definitions Rule. 489 F. 3d at 1261. jdjones on DSK8KYBLC1PROD with RULES The NESHAP rule at issue in Boiler MACT was thus promulgated when there was a definition of commercial and industrial wastes (as incorporated in the definition of solid waste incinerator, 489 F. 3d at 1261), which classified all units as either boilers or incinerators, albeit improperly. Here, in 129(g)(6) (‘‘the ter[m] ‘solid waste’ * * * shall have the meanin[g] established by the Administrator pursuant to the Solid Waste Disposal Act’’.) Equally important, the status of alternative fuels cannot be determined from the statutory definition alone (as illustrated by the different regulatory classifications of different alternative fuels in the recently-adopted definition of non-hazardous secondary materials, and the significant changes between proposal and final rule that EPA made in classifying alternative fuels). VerDate Mar<15>2010 13:18 May 16, 2011 Jkt 223001 contrast, there was no regulatory definition of solid waste that determined (or otherwise addressed) the status of the alternative fuels burned by cement kilns. Thus, cement kilns burning alternative fuels or other secondary materials were not classified as incinerators during the cement NESHAP rulemaking, but as cement kilns. The cement NESHAP therefore was and is based exclusively on the performance of cement kilns, as properly classified at the time of the rulemaking.7 PCA states that the EPA cannot promulgate a NESHAP rule based on calculations that include CISWI units, but the EPA has not done that. Petition p. 10. All of the cement kilns were cement kilns during the NESHAP rulemaking. Moreover, although the EPA recognizes that there is case authority that agencies are compelled to reopen rules when the rules’ fundamental factual basis (or other essential premise) is altered by later events,8 the EPA does not believe that the factual basis of the NESHAP has changed. The units on which the standard was based were cement kilns at the time of the NESHAP rulemaking, and, consistent with section 112(d)(3), the EPA based the NESHAP on that classification. PCA also states that the EPA committed to reconsider the cement NESHAP once the CISWI/‘‘solid waste’’ definition rules were finalized. Petition p. 11. This is incorrect. The EPA never committed to reopening a promulgated rule for the cement source category or any other. In the preamble to the proposed cement NESHAP, the EPA stated: ‘‘EPA is basing all determinations as to source classification on the emissions information now available, as required by section 112(d)(3), and will necessarily continue to do so until the solid waste definition discussed above is promulgated.’’ 74 FR at 21138; see also 75 FR at 54972 which contains similar language. This statement means no more than it says: if the EPA had 7 As noted earlier, all cement kilns certified to EPA that they were cement kilns in compliance with the applicable section 112(d) standards for cement kilns up to and through the time of the amendments to the Portland Cement NESHAP. 8 See Geller v. FCC, 610 F. 2d 973, 979–80 (DC Cir. 1979) (rules justified as needed to encourage passage of Federal copyright legislation, without any further justification that the rules were in the public interest, may have lacked any nexus with the public interest after passage of the copyright legislation and the Federal Communications Commission could therefore be compelled to reexamine the rule); RSR v. EPA, 102 F. 3d 1266, 1270 (DC Cir. 1997) (noting that in Geller the sole basis for the challenged rule had ‘‘long since evaporated’’ and that agency was compelled to reexamine the rule in light of the ‘‘abnormal circumstances’’ of the case). PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 28321 promulgated a final definition of solid waste that changed the classification of these kilns during the rulemaking, then the EPA would have based that NESHAP on that new classification. That did not occur during the Portland Cement NESHAP rulemaking. The quoted language cannot fairly be read to say that the EPA would revise standards for source categories properly classified at the time of the NESHAP based on a post-promulgation definition of solid waste whether that category be Portland cement kilns, lime kilns, or any other source category which once burned secondary materials later defined as solid waste. The implications of PCA’s position are that all NESHAPs have to be reopened and amended if units in the source category were burning secondary material that were classified postpromulgation as solid wastes by a later rule. Potential examples are lime kilns, chemical recovery units, as well as cement kilns (including the 1999 dioxin standard for cement kilns, which was not reopened as part of the 2010 rulemaking amending the NESHAP). The EPA does not accept this position. All of the NESHAPs are properly based on the units’ classification at the time of the rulemaking.9 PCA’s position is disruptive to the rulemaking process and would potentially lead to frequent and substantial uncertainty for the regulated community and other stakeholders The EPA similarly disagrees with the premise that the Agency cannot develop standards for any source category which burns materials which might ultimately be classified as solid waste until developing and finalizing a solid waste definition rule. This conflicts with the EPA’s obligations under the statute, consent decrees, and settlement agreements (including the settlement agreement requiring the EPA to issue the NESHAP for Portland cement by August 2010) to complete NESHAPs for source categories listed pursuant to section 112(c)(1) by dates certain. The EPA’s obligation in fact is to issue NESHAPs based on the emissions information before it at the time of the rulemaking (see section 112(d)(3)(A)), which is what it did here. NESHAPs are thus necessarily based on the snapshotin-time assessment of performance within a source category, which necessarily includes the status of sources in that category at that moment 9 For the same reason, EPA cannot be deemed to have constructively reopened the NESHAP when it issued the solid waste definition and CISWI rules. Nothing in the later rules changes the kilns’ status as cement kilns at the time of the cement NESHAP rulemaking. E:\FR\FM\17MYR1.SGM 17MYR1 28322 Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Rules and Regulations in time. To do otherwise makes the process unworkable. Moreover, although not necessary to the decision to deny reconsideration, the EPA has evaluated the practical implications of the solid waste definition and CISWI standards that it recently adopted. If the newly-adopted solid waste definition had been applicable at the time cement kilns conducted the performance testing used as the basis for the MACT standards and at the time of promulgation of the final Portland Cement NESHAP, 23 cement kilns (by the EPA’s estimate) out of 146 would have been classified as incinerators. If these units were removed from the pool of cement kilns, the floors—with one exception—would have remained either identical or essentially identical and, since the EPA adopted the floors as the standards, the standards would likewise have remained identical or essentially identical. The one floor that would change appreciably is the floor for THC, which would become significantly more stringent because the revised data base would reflect cement kilns experiencing less variability in THC emissions.10 Given the minimal change in the standards, with the exception of the more stringent THC standard, kilns’ compliance strategy would be unaltered. TABLE 1—COMPARISON OF FLOORS WITH AND WITHOUT KILNS THAT COULD HAVE BEEN CISWI KILNS HAD THE DEFINITION OF SOLID WASTE APPLIED 11 Pollutant Existing source floor— 2010 Final Rule Existing source floor— CISWI kilns removed from inventory New source floor—2010 Final Rule Mercury .............................. Total Hydrocarbons ........... PM ..................................... HCl ..................................... 55 lb/MM tons clinker ........ 24 ppmvd .......................... 0.04 ................................... 3 ppmvd ............................ 58 lb/MM tons clinker ........ 15 ppmvd .......................... 0.05 ................................... 3 ppmvd ............................ 21 lb/MM tons clinker ........ 24 ppmvd .......................... 0.01 ................................... 3 ppmvd ............................ New source floor—CISWI kilns removed from inventory 24 lb/MM tons clinker. 11 ppmvd. 0.01. 3 ppmvd. jdjones on DSK8KYBLC1PROD with RULES In this analysis, the EPA finds that none of the cement kilns would have been potentially CISWI due to the use of secondary material ingredients (though some kilns would potentially have been CISWI due to secondary fuels burned). This is because none of these secondary ingredient materials identified by PCA as being used in cement kilns is considered to be combusted. A typical dictionary definition of ‘‘combustion’’ is ‘‘an act or instance of burning’’ or ‘‘a chemical process (as an oxidation) accompanied by the evolution of light and heat.’’ 12 Cement kilns typically process ingredients in the cold regions of the kiln, where ingredients are gradually heated until they reach the temperature where clinker formation takes place. This is not a chemical process marked by the evolution of light and heat, and so is not combustion. Rather, it is analogous to cooking as opposed to burning.13 Cement kiln dust is also used as an ingredient and is sometimes processed in the hot end of the cement kiln. Due to its inorganic, essentially inert composition, this material is not combusted.14 Non-hazardous secondary materials used as an ingredient (as opposed to being combusted) in combustion units are not solid wastes under newly promulgated definitional rules (to be codified at 40 CFR section 241.3 (b)(3)), assuming the legitimacy criteria in section 241.3 (d) are satisfied. The EPA’s analysis also reflects the results of Information Collection Requests (pursuant to section 114 of the CAA) regarding cement kilns’ use of tires as alternative fuels. Based on these ICR responses, the EPA finds that most of the responding cement kilns obtained tires from established tire programs as defined in newly promulgated part 241, and have reasonably established that the tires were not discarded and were handled as valuable commodities from the point of removal through arrival at the cement kiln and therefore would not have been solid wastes. The EPA does not interpret the certification required by section 60.2175(w) of the newlyadopted CISWI rule as requiring ultimate users to know the source of all tires obtained from an established tire collection program. This is a practical impossibility. In certifying, users also should not assume that tires from established programs which participate in occasional cleanup days were discarded. Rather, it is sufficient that the ultimate user verify that it is obtaining tires from an established tire collection program, which program can provide the user with reasonable assurance that it manages tires carefully from point of collection to point of burning and which does not receive tires which have been abandoned in landfills or otherwise. There are further practical considerations, which likewise indicate the relative lack of practical effect of the solid waste definition and CISWI standards on the NESHAP. First, cement kilns can choose whether to continue burning solid waste and being classified as incinerators, or not burn waste and remain classified as cement kilns. Second, burning alternative fuels (whether classified as solid wastes or not) does not appreciably affect cement kilns’ HAP emissions. 74 FR at 21138; Comments of PCA, Docket EPA–HQ– RCRA–2008–0329 (Aug. 3, 2010) (p. 27) (same). Thus, the measured performance of cement kilns that forms the basis of the standards in the NESHAP remains technically sound since that performance would remain the same whether or not kilns burn ‘‘solid waste’’ alternative fuels. Finally, PCA points out that until there is a solid waste regulatory definition and a CISWI rule, its members lack the information to make a rational choice as to which source category to be subject to—whether or not to continue burning secondary materials and whether to invest 10 Nor would EPA alter any of its determinations not to adopt more stringent beyond-the-floor standards. 11 In this analysis, nine of the eleven floor kilns for the final cement NESHAP remain cement kilns. One of the two floor kilns for THC would be a CISWI, although removing this kiln from the cement kiln data base would result in a significantly more stringent THC standard under the NESHAP because this kiln had more associated variability in its performance than the other kilns ranked closest to it. For PM, two of six kilns remain classified as cement kilns. For HCl, two of three floor kilns remain cement kilns, but there are a whole group of cement kilns that performed identically to the floor kiln for HCl that was, for purposes of our analysis, reclassified as a CISWI so there would be no effect on the standard. 75 FR at 54894 (standard based on analytic method detection limit times a variability factor rather than on the measured values because those values were so close to the analytic method minimum detection limit). See the memorandum Revised Floors Without Kilns That Would Have Been CISWI Kilns Had the Solid Waste Definition Applied, dated April 25, 2011. 12 Webster’s Ninth New Colleg1ate Dictionary. Merriam-Webster Inc. 1990. 13 See Combustion in a Cement Kiln and Cement Kilns’ Use of Tires as Fuel dated April 25, 2011. 14 Id. VerDate Mar<15>2010 13:18 May 16, 2011 Jkt 223001 PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 E:\FR\FM\17MYR1.SGM 17MYR1 Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Rules and Regulations immediately in the pollution control equipment and operational practices necessary for most kilns to comply with the Portland Cement NESHAP. Petition p. 18. The EPA has now adopted both a regulatory solid waste definition for non-hazardous secondary materials and CISWI standards, which should provide the basis for kilns to make these decisions within the necessary investment timeframe. jdjones on DSK8KYBLC1PROD with RULES Conclusion The EPA proposed to classify cement kilns burning secondary materials as cement kilns in the proposed rule, explained why it would do so, and finalized the NESHAP rule using the approach proposed. No objections to that approach were raised to the EPA during the rulemaking. We further reject the position that a solid waste definition adopted any time after promulgation of a NESHAP compels reexamination of the NESHAP because it alters the NESHAP’s fundamental premises. The EPA appropriately develops NESHAPs, including the Portland Cement NESHAP, based on the information available to it at the time of the rulemaking and it is undisputed that the units in question here were cement kilns at the time of the final cement NESHAP. The EPA thus concludes that reconsideration here is neither required nor appropriate under section 307(d)(7)(B). 2. Standards During Periods of Startup and Shutdown PCA maintains that the NESHAP’s limits that apply during periods of startup and shutdown do not meet the requirements of CAA section 112(d)(2) because the standards rest on engineering estimates of performance rather than on performance data, and that the EPA failed to provide adequate notice and opportunity for comment. Petition pp. 14–16. With respect to the startup and shutdown standards, PCA has not demonstrated that it was unable to raise its objections during the public comment period. Indeed, it did so. The EPA proposed that the same standards apply during startup and shutdown conditions as during normal operating conditions, and solicited any data which might show that some other standard would be more appropriate. 74 FR at 21162. PCA commented at length on these proposed standards. PCA Comments, pp. 7–8, 11–13. In response to PCA’s own comment that the proposed startup and shutdown standards should not be normalized to units of production (PCA Comment of Sept. 4, 2009 at 7–8, EPA–HQ–OAR– 2002–0051–2922.1), the EPA modified VerDate Mar<15>2010 13:18 May 16, 2011 Jkt 223001 the proposed standards so that they are expressed as stack concentrations. 75 FR at 54991. PCA’s main contention is that the EPA based the standards for startup and shutdown on its engineering judgment, so that commenters have had no opportunity to comment on emissions data supporting those conclusions. Petition p. 15. PCA is correct that the standards reflect the EPA’s engineering judgment, but the EPA may permissibly rely on engineering judgment in developing floor standards in a NESHAP. Sierra Club v. EPA, 167 F.3d 658, 665 (DC Cir. 1999); National Lime, 233 F.3d at 632; Mossville Environmental Action Now v. EPA, 370 F.3d 1232, 1241–42 (DC Cir. 2004); see also CAA section 112(d)(3)(A). Furthermore, neither PCA nor any other commenter provided emissions data for startup and shutdown operations, despite the EPA’s request. 74 FR at 21162. Under these circumstances, the EPA believes that the petitioner both had the opportunity to raise its objections during the public comment period and did so. Reconsideration is therefore neither required nor appropriate. The EPA, however, is granting reconsideration of one issue related to standards during startup and shutdown. This is the standard for HCl during startup and shutdown for kilns equipped with wet scrubbers but which do not use a continuous emissions monitor (CEM) to measure compliance. See issue B.4 below. 3. Standards for Particulate Matter PCA states that in the final rule ‘‘EPA dramatically deviated from the range of possible limits that it had proposed for particulate matter * * * by almost 90 per cent’’ for new facilities and by nearly 50 percent for existing facilities. Petition p. 16. PCA further maintains that this change resulted from ‘‘cherry picked’’ data, with the expanded dataset ‘‘arbitrarily and capriciously biased towards top performers,’’ those with new baghouses. Id. PCA further states that it was unable to comment on these data because the EPA did not make the data available until after promulgation of the final rule, and that the limits may not be achievable for sources that use wet scrubbers for acid gas control due to loadings of re-entrained particulate. Id. at 17. PCA raises the same issues with respect to the PM limit in the NSPS, which is identical to the new source standard under the NESHAP. Id. This part of PCA’s petition is largely mistaken, and does not present any grounds requiring the EPA to reconsider the PM standard in either the NESHAP PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 28323 or the NSPS. Indeed, PCA’s public comments suggested a different PM limit than proposed based largely on the additional performance data for which they now claim lack of notice. PCA Comments at p. 86 and App. 1 to those comments. See docket items EPA–HQ– OAR–2002–0051–2922.1 and 2922.2, September 4, 2009. Much of this information had already been submitted to the EPA by PCA and individual PCA members in the parallel NSPS rulemaking as well. See National Emission Standards for Hazardous Air Pollutants from the Portland Cement Manufacturing Industry Response to Comments Received on Proposed Rule (Aug. 6, 2010) (‘‘RTC’’) p. 155. See docket item EPA–HQ–OAR–2002–0051– 3464. PCA thus not only had an opportunity to comment on the data used by the EPA for the final standard, but did so. Nor did the EPA ‘‘cherry pick’’ among those data. See RTC at pp. 155, and 153–55 demonstrating the opposite: PCA had used the data selectively in constructing the alternative standard suggested in its comments, but the EPA’s analysis used all of the additional data from the pool of best performing sources for PM. PCA is also mistaken in its claim that it lacked opportunity to present its objection that the PM standard is based on unrepresentative performance because it was based on performance of plants with newly-installed baghouses. Indeed, it raised this issue in its public comments. PCA Comments at 86; see also RTC at pp. 155–56 indicating that baghouse performance can improve over time but is characterized by operating variability both when a baghouse is new and throughout its operating life. Commenters likewise raised the issue of baghouse performance decreasing due to re-entrained particulate resulting from use of wet scrubbers for acid gas control, and the EPA responded by citing data showing that PM levels from a cement kiln baghouse decreased after the kiln installed a wet scrubber to control its acid gas emissions. RTC at p. 158. Since there was ample notice and opportunity for comment on these issues (and, as just indicated, actual comment), the EPA is not required to reconsider them. In its December 14, 2010, letter, PCA takes a different tack, stating that the PM standard in the final NESHAP and NSPS is expressed as a 30-day rolling average rather than as a 1-day average (as at proposal), and that the EPA used a statistical equation, the Upper Prediction Limit at the 99th percentile (UPL 99) to construct that limit. December 14 letter pp. 3–4. The letter E:\FR\FM\17MYR1.SGM 17MYR1 28324 Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Rules and Regulations jdjones on DSK8KYBLC1PROD with RULES asserts that PCA lacked notice of either issue. PCA is correct that the final standard is expressed as a 30-day standard (met by averaging 30 daily observations per month). 75 FR at 54988.15 The EPA stated at proposal that it was considering adopting a PM standard whereby compliance would be measured with a CEM, and that CEMbased standards would be expressed as 30-day numbers. The EPA further had presented the statistical means of converting individual measurements into 30-day averages by means of the UPL 99 equation. 74 FR at 21157, 21158, 21141–42. PCA’s comments criticized use of the UPL 99 equation both generally, and for a PM standard specifically (PCA Comments pp. 5, 86), and documented their view that the UPL equation underestimated variability for PM generally and underestimated the projected 99th percentile of the distribution of PM values (PCA Comments at App. 2 p. ES– 7 and App. 2 p. 5–5). See also the EPA’s responses at 75 FR at 59474–76; Development of the MACT Floors for the final Portland Cement NESHAP (the EPA, August 6, 2010, docket item EPA– HQ–OAR–2002–0051–4550) at pp. 2–4, 9–10, 17, explaining why the UPL 99 equation is a reasonable statistical tool for assessing variability, including variability over a 30-day measuring period.16 PCA and member companies 15 PCA is not correct, however, that the standard became dramatically more stringent. If expressed as a not-to-exceed limit, as at proposal, the final existing source standard under the NESHAP would be approximately 0.07 lb/ton clinker, or only about 12 per cent more stringent than proposed. This slight increase in stringency results from corrections to the UPL equation used at proposal, corrections made in response to comments submitted by PCA. The additional performance data for PM actually made the standard less stringent (the net slight increase in stringency resulting, as noted from the revised UPL equation to the new data set). Development of the MACT Floors for the Final NESHAP for Portland cement (EPA, August 6, 2010, Docket # 4550) at p. 16. 16 The argument that the UPL equation underestimates variability of PM control performance because it underestimated variability for performance of THC is misleading. The UPL equation measures potential variability based on the within-source variance and between-source variance of the data set to which it is applied. 74 FR at 21141. The EPA’s initial data set for THC was comparatively sparse, and did not fully reflect the best-performing sources’ within-source variation and between-source variation. The EPA was able to gather additional performance data between proposal and comment to expand those data (and to calculate variability directly from the data; see 75 FR at 54980 n. 22). However, the problem was not the UPL equation but the data set to which it was applied. It also should be noted that baghouses controlling PM (the control device for all of the best performing cement kilns) are relatively impervious to input loadings, performing relatively constantly regardless of incoming ash load. 70 FR at 59449 (Oct. 12, 2005); 72 FR at 54879 (Sept. 27, 2007). VerDate Mar<15>2010 13:18 May 16, 2011 Jkt 223001 likewise submitted detailed comments questioning the reliability and suitability of PM CEMs and urged the EPA not to require their use in measuring the standard. RTC at pp. 163–67. The EPA consequently does not accept the contention that commenters lacked notice of these issues and that reconsideration is either required or appropriate. The EPA, however, is granting reconsideration of two standards related to PM, the NSPS for PM as applied to modified sources, and the alternative PM compliance alternative for sources that commingle certain internal exhaust gas streams. See issues B. 6 and B. 9 below. 4. Monovents Petitioner Eagle Materials claims that it lacked notice of the EPA’s basis for requiring use of CEMs for all cement kilns, including those having monovent exhaust configurations (vents on the top of a control device rather than a single stack). This issue was presented at proposal, and the company submitted comments on the issue, as the petitioner acknowledges. Petition at pp. 3, 5–9. The petitioner disagrees with the EPA’s response (which indicated that a source could install a separate stack for measurement purposes or seek an alternative monitoring regime on a sitespecific basis pursuant to the authority at 40 CFR section 63.7 (f), RTC at pp. 75, 120, 145–46, 172–73), but this does not demonstrate that there was a lack of opportunity to comment on the issue. The EPA is consequently not granting this petition. Although we are denying the request for reconsideration of the monitoring provisions for facilities with monovents, we note further that these types of monitoring issues tend to be very site specific, and there will likely be individual cases where the national rule will be impractical. The provisions of section 63.7(f) of the General Provisions exist for this purpose and we believe that issues related to monitoring facilities with monovents are best handled on a case-by-case basis under that rule. These provisions have been used in similar situations to authorize cost-effective, environmentally appropriate alternative monitoring and, to our knowledge, have not in and of themselves required the construction of a single stack. Baghouse variability thus can be assessed especially reliably by standard statistical means, such as the UPL equation. Id. PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 5. Emissions From Crushers Crushers are machines designed to reduce large rocks from a quarry into gravel-sized feed. See section 63.1341 (definition of ‘‘crusher’’). Crushers are typically located at the limestone quarry. In 2002, the EPA and the PCA entered into a settlement agreement regarding the 1999 NESHAP for the industry and, as part of that agreement, agreed to clarify that crushers are not part of the Portland cement source category. The EPA did so but used convoluted language 17 which created unnecessary confusion about collateral issues such as the regulatory status of other types of equipment such as storage bins. In the 2005 rule proposing to amend the NESHAP, the EPA proposed to eliminate the confusing language and simply state that crushers are not part of the Portland cement source category, and indicated in the preamble to the 2006 final rule that it intended to finalize this language. See 70 FR at 72341–42 (Dec. 2, 2005) and 71 FR at 76532 (Dec. 20, 2006). The EPA neglected to include the necessary rule language, and proposed to add it in this rulemaking. 74 FR at 21163. The final rule states that ‘‘[c]rushers are not covered by this subpart regardless of their location.’’ Section 63.1340 (c); see also RTC at p. 212 (explaining these actions and citing to earlier regulatory history). PCA asks that the EPA reconsider its decision and restore the amended regulatory text quoted below. Petition Exhibit 1. The EPA has provided numerous opportunities to comment on this issue so reconsideration is clearly not compelled under section 307 (d)(7)(B). Nor is reconsideration appropriate. The former regulatory text created confusion about collateral issues and failed to indicate clearly its ostensible subject—that crushers are not regulated under the Portland Cement NESHAP. The EPA has amended the rule to make this clear. Doing so is consistent with the 2001 Settlement Agreement on this point, the object of which was to make clear that crushers 17 Former section 63.1340(c) stated: ‘‘For Portland cement plants with on-site nonmetallic mineral processing facilities, the first affected source in the sequence of materials handling operations subject to this subpart is the raw material storage, which is just prior to the raw mill. Any equipment of the on-site nonmetallic mineral processing plant which precedes the raw material storage is not subject to this subpart. In addition, the primary and secondary crushers of the on-site nonmetallic mineral processing plant, regardless of whether they precede the raw material storage, are not subject to this subpart. Furthermore, the first conveyor transfer point subject to this subpart is the transfer point associated with the conveyor transferring material from the raw material storage to the raw mill.’’ E:\FR\FM\17MYR1.SGM 17MYR1 Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Rules and Regulations were not regulated under the NESHAP. In any case, nothing in that settlement agreement prevents the EPA from amending its regulations if it is appropriate to do so. The agreement in fact states that ‘‘[n]othing in this Agreement shall be construed to limit or modify the EPA’s discretion to alter, amend, or revise, or to promulgate regulations that supersede, the regulations identified in section III of this Agreement.’’ B. Issues on Which the EPA Is Granting Reconsideration 1. Standards for Clinker Storage Piles PCA and Eagle Materials both maintain that the EPA did not provide sufficient notice of the standards it might adopt for clinker storage piles. Although the EPA did give notice that it might adopt standards for these units (74 FR at 21163), the petitioners are correct that the Agency did not give sufficient notice of what those standards might be. The EPA is consequently granting the petition as to this issue. For the same reason, the EPA is granting the petition as to all of the miscellaneous issues pertaining to clinker storage piles (issues 1–4 in Exhibit 1 to PCA’s Petition for Reconsideration). 2. Affirmative Defense to Civil Penalties for Exceedances Occurring During Malfunctions Various petitioners representing environmental advocacy groups, as well as PCA, assert that the EPA adopted in the final rule an affirmative defense to civil penalties for exceedances of applicable emission standards during periods of malfunction. Section 63.1344. The petitioners are correct that there was not a proper opportunity to comment on this provision at proposal, and the EPA is therefore granting these petitions as to this issue. jdjones on DSK8KYBLC1PROD with RULES 3. Continuously Monitored Parameters for Alternative THC Standard Section 63.1343(b)(1) provides two options for meeting a standard for organic HAP. One is to meet a THC standard of 24 parts per million by volume dry (ppmvd); the other is to meet a limit of 9 ppmvd of total organic HAP. If the source elects to meet the total organic HAP standard, a site specific THC limit is established based on the THC results during the performance test used to establish compliance with the total organic HAP limit. Section 63.1348(a)(4)(v). PCA has noted that the site specific THC limit can unintentionally deprive kilns of operating flexibility where kilns have measured total organic HAP VerDate Mar<15>2010 13:18 May 16, 2011 Jkt 223001 comfortably below the alternative standard. For example, if a kiln has measured total organic HAP of 3 ppmvd and site specific levels of THC of 15 ppmvd during the performance test, it would be de facto subject to a considerably more stringent THC standard than if it were subject to the main THC standard. The EPA believes that the issue of unnecessarily constrained operating flexibility is worthy of reexamination and therefore is granting reconsideration of this issue. 4. HCl Limit of Zero During Startup for Sources That Do Not Have a CEM The final cement NESHAP provides that existing and new kilns have a standard of zero for HCl when operating at startup and shutdown and when compliance is measured by means other than a CEM. Section 63.1343(b) Table 1 note 4. Kilns equipped with wet scrubbers may elect to comply with the HCl standard by means of performance tests rather than a CEM, so the practical effect of this provision is that wetscrubber equipped kilns electing to comply by means of stack testing rather than continuous monitoring of HCl with a CEM would be subject to the emission limit of zero during startup and shutdown. See sections 63.1348(a)(6)(i) and 63.1349(b)(6)(i)(a). PCA indicates in its petition that the EPA is incorrect in finding that HCl is formed only from burning normal fuel (75 FR at 54992). PCA maintains that HCl can be formed by oxidizing chlorides in the raw materials present in the kiln regardless of the type of fuels used, and so can be present in emissions during startup and shutdown. PCA urges that the same limit (3 ppmvd) apply during startup as applies to all other kilns during all operating conditions. Petition Exhibit 1. The EPA is granting reconsideration on this issue since PCA’s petition may have technical merit. 5. Allowing Sources With Caustic Scrubbers To Comply With HCl Standard Using Performance Tests As just noted, the final rule allows sources equipped with wet scrubbers (and tray towers) to comply with the HCl standard by means of performance tests rather than with continuous monitoring of HCl with a CEM. (Sources electing to comply by means of stack tests do establish continuously monitored parameters—liquid flow rate, pressure and pH (see section 63.1350(m)(5)–(7)). PCA indicates that this compliance option should not be limited to wet scrubber equipped units, but should also be available for units equipped with caustic scrubbers, in part PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 28325 because some sources will be equipped with dry scrubbers (due to water shortages) and should have the same operating flexibilities as wet scrubberequipped kilns. The EPA is granting reconsideration to consider the issue of whether dry scrubber-equipped kilns should have the option of complying by means of stack tests rather than continuous monitoring. 6. Alternative PM Limit Some kilns combine kiln exhaust gas with exhaust gas from other unit operations, including the clinker cooler. See 75 FR at 54988. The final cement NESHAP seeks to accommodate these situations by providing for a site specific PM limit for commingled flows from the kiln and clinker cooler. Section 63.1343(b)(2). PCA points out, however, that other flows can be commingled as well. PCA Petition Exhibit 1 (referring to coal mill exhaust and exhaust from an alkali by-pass as instances of additional flows). Without an allowance for these additional flows, the site specific PM limit could be stricter than the EPA intended (since the PM concentration will be divided by a lower number in the implementing equation), and could penalize the environmentally beneficial practice of commingling these flows, a practice resulting in significant energy savings. 75 FR at 54988. The EPA therefore grants reconsideration on this issue. 7. Monitoring for Mercury and PM During Periods of Startup and Shutdown The standards for the four main pollutants regulated by the NESHAP (mercury, THC/organic HAP, HCl, and PM) are all measured continuously. This is true of the standards applying during normal operation and those that apply during startup/shutdown. However, two of the standards—for mercury and for PM—are normalized to production units during normal operation and expressed on a concentration basis during startup/ shutdown. See 75 FR at 54991–92. PCA suggests in its petition that cement companies would like to utilize the same monitoring device for both standards, but that this could pose operational obstacles if sorbent traps are used as the continuous monitoring device. Petition Exhibit 1. This is because data from a sorbent trap cannot be readily disaggregated, meaning that a dedicated trap would be needed to monitor startup and shutdown and a different sorbent trap used for normal operation. (Data from a CEM can be disaggregated, so that it is possible to evaluate data from startup/shutdown E:\FR\FM\17MYR1.SGM 17MYR1 28326 Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Rules and Regulations and normal operation from measurements taken by a single PM and mercury CEM.) PCA questions if this was the EPA’s intent. The EPA is granting the petition to consider the question of types of continuous monitoring allowed during startup and shutdown for mercury and PM. 8. Coal Mills (NESHAP and NSPS) In the EPA’s recent amendments to the Standards for Performance for Coal Mills, we exempted coal mills at cement manufacturing facilities whose only heat source was kiln exhaust. See 74 FR 51952, October 8, 2009. This change was made in response to comment from PCA. PCA argued that coal mills were similar to inline raw mills. In the case of inline raw mills, we consider the raw mill to be an integral part of the kiln. PCA requested the same treatment for coal mills, and the EPA agreed. However, in the amendments to the Portland Cement NESHAP and NSPS, the EPA did not address coal mills. This omission was due to the lack of information on emissions from coal mills. The EPA is granting reconsideration to reconsider the status of coal mills under the cement NESHAP. jdjones on DSK8KYBLC1PROD with RULES 9. PM Standard for Modified Sources Under the NSPS The EPA adopted the level of the new source standard under the NESHAP as the NSPS for both new and modified kilns. 75 FR at 54996. As PCA notes in its petition, there need not be functional equivalence between the NESHAP and NSPS PM limits for modified kilns, and further comment on the issue is appropriate. Petition p. 17. PCA also notes that the NSPS for modified kilns could have associated costs which need to be accounted for pursuant to CAA section 111(a)(1). Since such kilns would not be subject to the section 112(d) new source standard, any costs for such modified kilns to control PM to the new source limit could not be attributed to the section 112(d) new source limit. In addition, PCA notes that existing Portland cement kilns cannot be assumed to find ways to avoid triggering the NSPS modification criteria when making physical or operational changes due to the stringency of the newly adopted standards for PM. The EPA believes that PCA’s arguments on this point have merit and warrant reconsideration of the NSPS standard for PM for modified kilns. VerDate Mar<15>2010 13:18 May 16, 2011 Jkt 223001 IV. Requests for an Administrative Stay PCA also requests that the EPA issue an administrative stay of the rule pursuant to section 705 of the Administrative Procedure Act (APA), which authorizes an agency, when it finds that ‘‘justice so requires’’ to ‘‘postpone the effective date of action taken by it, pending judicial review. Petition p. 6. PCA also alludes to the authority in section 307(d)(7)(B) of the CAA under which the EPA may issue a stay for up to three months if it grants a petition to reconsider a final rule. First, the effective date of the NESHAP and NSPS—November 8, 2010—has already passed and thus a stay under APA section 705 is not appropriate. See 76 FR 4780, 4800 (Jan. 26, 2011) (‘‘[p]ostponing an effective date implies action before the effective date arrives’’). Section 307(d)(7)(B) of the CAA authorizes the EPA to stay a rule’s effectiveness for three months during reconsideration. Since the EPA is largely denying the petitions to reconsider and is not granting reconsideration as to challenges to the principal standards in the NESHAP or NSPS, an administrative stay is not appropriate under that authority. In reaching these conclusions, the EPA evaluated not only the legal applicability of the statutory provisions cited in PCA’s petition, but also the merits criteria for granting stays—the likelihood of success on the merits, possibility of irreparable harm to the petition, harm to other parties, and the ultimate public interest. As discussed above, the EPA believes that the NESHAP is validly based on the performance of cement kilns. The EPA’s technical evaluation of kilns’ performance is also sound because burning alternative fuels (whether or not those fuels are classified as solid waste) does not appreciably effect the amount of HAP cement kilns emit. The EPA also does not believe that the industry is facing the prospect of irreparable harm. As explained above, the industry’s legitimate concern of having to make critical investment decisions without knowing the final rules on waste classification and standards for solid waste incinerators has been rectified by the EPA’s issuance of a final regulatory definition of nonhazardous secondary materials that are solid waste and CISWI standards. In addition, given the similarity of many of the emissions limits, the compliance strategy for either rule would be expected to be similar. Moreover, the EPA does not believe that a stay of the rules’ compliance date PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 is in the public interest. The standards in the rule are projected to result in significant health benefits (thousands of serious health incidences avoided, including thousands fewer acute myocardial infarctions) and the rules’ monetized benefits are projected to substantially exceed the rules’ social costs. 75 FR at 55027 Table 13 and 55028 (social costs estimated at $926 to 950 million (2005$) and net monetized benefits are estimated at $6.5 billion to $18 billion (2005$ and a 7 percent discount rate). Cement kilns’ mercury emissions are among the highest of any emitting source category, and contribute significantly to the national inventory of airborne mercury. 75 FR at 54979 (cement industry contributes 7.5 tons of mercury emissions per year to national inventory of 50 tons per year). We note that mercury is a potent and bioaccumulative neurotoxin that remains in the environment for an extended period of time. As a result, the additional mercury that would be emitted as the result of a stay of the rule would remain in the environment for many years. The NESHAP here for the first time adopts statutorily-compliant limits to control those emissions. The EPA does not believe it in the public interest to delay those controls. V. Conclusion For all of the reasons discussed above, the petitions to reconsider the final NESHAP and NSPS for Portland cement plants are denied in part and granted in part. The EPA likewise denies the petitions for an administrative stay. Dated: May 11, 2011. Lisa P. Jackson, Administrator. [FR Doc. 2011–12095 Filed 5–16–11; 8:45 am] BILLING CODE 6560–50–P DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration 49 CFR 191, 192, 193, and 195 [Docket No. PHMSA–2011–0121] Pipeline Safety: National Pipeline Mapping System Data Submissions and Submission Dates for Gas Transmission and Gathering Systems and Liquefied Natural Gas Annual Reports Pipeline and Hazardous Materials Safety Administration (PHMSA), DOT. ACTION: Issuance of advisory bulletin. AGENCY: E:\FR\FM\17MYR1.SGM 17MYR1

Agencies

ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 76, Number 95 (Tuesday, May 17, 2011)]
[Rules and Regulations]
[Pages 28318-28326]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12095]

[[Page 28318]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 60 and 63

[EPA-HQ-OAR-2002-0051; EPA-HQ-OAR-2007-0877; FRL-9306-7]
RIN 2060-AQ93

National Emission Standards for Hazardous Air Pollutants From the
Portland Cement Manufacturing Industry and Standards of Performance for
Portland Cement Plants

AGENCY: Environmental Protection Agency (EPA).

ACTION: Denial in part and grant in part of petitions to reconsider.

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SUMMARY: The Environmental Protection Agency (EPA or Agency) is denying
in part and granting in part the petitions to reconsider the final
revised National Emission Standards for Hazardous Air Pollutants
emitted by the Portland Cement Industry and the New Source Performance
Standards for Portland Cement Plants issued under sections 112(d) and
111(b) of the Clean Air Act, respectively. The EPA is also denying all
requests that the EPA issue an administrative stay of the National
Emission Standards for Hazardous Air Pollutants and the New Source
Performance Standards.

DATES: This action is effective May 17, 2011.

ADDRESSES: The EPA's docket for this action is Docket ID No. EPA-HQ-
OAR-2002-0051. All documents in the docket are listed on the https://www.regulations.gov Web site. Although listed in the index, some
information is not publicly available, e.g., confidential business
information (CBI) or other information where disclosure is restricted
by statute. Certain other material, such as copyrighted material, is
not placed on the Internet and will be publicly available only in hard
copy form. Publicly available docket materials are available either
electronically through https://www.regulations.gov or in hard copy at
the EPA's Docket Center, Public Reading Room, EPA West Building, Room
3334, 1301 Constitution Avenue, NW., Washington, DC 20004. This Docket
Center 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. Keith Barnett, Office of Air
Quality Planning and Standards; Sector Policies and Programs Division,
Minerals and Manufacturing Group (D243-02); Environmental Protection
Agency; Research Triangle Park, NC 27111; telephone number: (919) 541-
5605; fax number: (919) 541-5450; e mail address:
barnett.keith@epa.gov.

SUPPLEMENTARY INFORMATION: On August 6, 2010, the EPA signed a final
rule establishing and amending various air emission limits applicable
to the Portland cement industry. See 75 FR 54970 (Sept. 9, 2010). The
rule establishes National Emission Standards for Hazardous Air
Pollutants (NESHAP) for emissions of mercury, total hydrocarbons (THC),
and particulate matter (PM) from new and existing cement kilns located
at major and area sources, and for emissions of hydrochloric acid (HCl)
from new and existing kilns located at major sources. The rule also
establishes New Source Performance Standards (NSPS) for emissions of
PM, nitrogen oxides, and sulfur dioxide at cement kilns that commence
construction, modification, or reconstruction after June 16, 2008.
Various entities representing both the regulated industry and the
environmental community have petitioned the EPA for reconsideration of
various standards in these rules, in particular the NESHAP. A number of
industry petitioners also requested that the EPA issue an
administrative stay of the NESHAP and NSPS. For the reasons stated
below, the EPA is denying reconsideration on certain issues raised in
the petitions and is granting reconsideration on a number of other
issues. The EPA is also denying all requests that it issue an
administrative stay.

I. Standard for Reconsideration

Section 307(d)(7)(B) of the Clean Air Act (CAA) states that: ``Only
an objection to a rule or procedure which was raised with reasonable
specificity during the period for public comment (including any public
hearing) may be raised during judicial review. If the person raising an
objection can demonstrate to the Administrator that it was
impracticable to raise such objection within such time or if the
grounds for such objection arose after the period for public comment
(but within the time specified for judicial review) and if such
objection is of central relevance to the outcome of the rule, the
Administrator shall convene a proceeding for reconsideration of the
rule and provide the same procedural rights as would have been afforded
had the information been available at the time the rule was proposed.
If the Administrator refuses to convene such a proceeding, such person
may seek review of such refusal in the United States court of appeals
for the appropriate circuit (as provided in subsection (b)). Such
reconsideration shall not postpone the effectiveness of the rule. The
effectiveness of the rule may be stayed pending such reconsideration,
however, by the Administrator or the court for a period not to exceed
three months.''
As to the first procedural criterion for reconsideration, a
petitioner must show why the issue could not have been presented during
the comment period, either because it was impracticable to raise the
issue during that time or because the grounds for the issue arose after
the period for public comment (but within 60 days of publication of the
final action).
In the EPA's view, an objection is of central relevance to the
outcome of the rule only if it provides substantial support for the
argument that the promulgated regulation should be revised. See, e.g.,
the EPA's Denial of the Petitions to Reconsider the Endangerment and
Cause or Contribute Findings for Greenhouse Gases under Section 202 of
the Clean Air Act, 75 FR 49556, 49561 (Aug. 13, 2010). This
interpretation is appropriate in light of the criteria adopted by
Congress in this and other provisions in section 307(d). Section
307(d)(4)(B)(i) provides that ``[a]ll documents which become available
after the proposed rule has been published and which the Administrator
determines are of central relevance to the rulemaking shall be placed
in the docket as soon as possible after their availability.'' This
provision draws a distinction between comments and other information
submitted during the comment period, and other documents which become
available after publication of the proposed rule. The former are
docketed irrespective of their relevance or merit, while the latter
must be docketed only if a higher hurdle of central relevance to the
rulemaking is met.
For more extended discussions of the standard for reconsideration
under section 307(d)(7)(B), please see 75 FR 49556, 49560-49563 (August
13, 2010) and 76 FR 4780, 4786-4788 (January 26, 2011).

II. The Petitions for Reconsideration

A. Petition of the Portland Cement Association (PCA)

1. PCA maintains that after the close of the comment period on the
proposed cement NESHAP, the EPA proposed inter-related rules regulating

[[Page 28319]]

Commercial and Industrial Solid Waste Incinerators (CISWI) and
proposing a definition of solid waste for non-hazardous secondary
materials. Petition p. 2. PCA alleges that these proposed rules
``eviscerate the statistical underpinning for the NESHAP rule.''
Petition p. 2. PCA states that under the proposed rule defining non-
hazardous secondary materials that are solid wastes (``solid waste
definition rule''), many cement kilns would have been considered to be
incinerators (i.e., units that combust ``solid waste,'' as that term is
defined by the Administrator under RCRA, see section 129(g)(6)), rather
than cement kilns. PCA further states that under the proposed waste
definition rule, virtually all of the cement kilns comprising the pool
of best performers for each of the cement NESHAP floors would be
incinerators since they burn secondary materials that would have been
defined as solid waste under the proposed solid waste definition rule.
Although acknowledging that the EPA had discussed in the proposed
cement NESHAP how it intended to classify cement kilns that burn
secondary materials (Petition p. 8), PCA maintains that it had no
notice of the potential impact of the CISWI rule and solid waste
definition rule until the EPA proposed a definition of solid waste,
and, in particular, that PCA was unaware of the potential practical
implications of the issue until the EPA proposed a solid waste
definition. Petition pp. 10, 12. Petitioners maintain that the EPA
cannot permissibly classify the same kilns as affected sources under
both rules, and requests that the EPA stay the Portland cement NESHAP
administratively pending reconsideration of the issue.
2. PCA next maintains that the EPA adopted standards for open
clinker cooler piles in the NESHAP without giving proper notice of what
those standards might be. Petition p. 11.
3. PCA further requests reconsideration of the standards for
startup and shutdown operations. PCA argues that the final standards
deviated from those proposed, because the EPA had proposed that the
same standards that apply during normal operation also apply during
startup and shutdown operations, whereas the final rule adopts
standards for startup and shutdown that differ from those applicable
during normal operation. Petition p. 14. PCA maintains that it had no
notice of the data on which such standards were based, because the
standards are not based on emissions data. Id. p. 15. The petition
further states that the standards for startup and shutdown were adopted
in disregard of the requirements of section 112(d)(3) of the CAA, again
largely because the standards are not based on emissions data. Id.
4. In the final rule, the EPA adopted a provision establishing an
affirmative defense to civil penalties for exceedances of emission
standards which result from malfunction events. PCA requests that the
EPA reconsider this affirmative defense provision, which it
characterizes as overly cumbersome, and issued without notice and
adequate opportunity for public comment. Id. at 16.
5. PCA also requests that the EPA reconsider the standards for PM,
including the new source standard for PM in the NSPS. Id. PCA alleges
that the EPA ``reduce[d] the PM limits * * * dramatically'' between
proposal and final rule, and that the change was based on information
hand-picked by the EPA which information was not known to petitioners.
Id. In a follow-up letter of December 14, 2010, PCA expanded on its
petition to state that the key change between proposal and final rule,
made without proper notice, was to express the PM standard as a 30-day
average and to use a statistical methodology (Upper Prediction Limit,
or UPL) in calculating that limit. December 14 Letter p. 3.
6. PCA also requested that the EPA reconsider a number of issues of
a more technical nature (many of which pertain to the standards for
open clinker piles). Petition Exhibit 1.

B. Petition of Eagle Materials

Eagle Materials challenges application of the NESHAP's monitoring
requirements to sources equipped with monovents (vents on the top of a
control device rather than a single stack). Although acknowledging that
this issue was presented during the public comment period, Eagle
Materials maintains that the EPA's disposition of the issue was based
on technical assumptions which are unfounded and unanticipated by Eagle
and other commenters. Eagle Materials also maintains that the EPA
adopted standards for clinker storage piles without providing adequate
notice of what those standards might be.

C. Petitions of Sierra Club, Downwinders at Risk, Friends of Hudson,
Huron Environmental Activist League, Desert Citizens Against Pollution,
Montanans Against Toxic Burning, and the Natural Resources Defense
Council

A number of environmental groups filed petitions requesting that
the EPA reconsider the provision establishing an affirmative defense to
civil penalties for emission exceedances demonstrated to have occurred
as a result of a malfunction event (as defined). The petitions maintain
that the EPA adopted this provision without adequate notice and
opportunity for public comment.

III. Decision on Issues Raised in the Petitions

A. Issues on Which the EPA Is Denying Reconsideration

1. Relationship Between Portland Cement NESHAP, Solid Waste Definition
and CISWI Rule
PCA maintains that ``EPA proposed the CISWI/`solid waste'
definition rules after the comment period closed on the NESHAP rule,
foreclosing any real opportunity for PCA to assess and comment on the
impacts of the NESHAP. Indeed, it was not until EPA proposed the
subsequent CISWI/`solid waste' rules that * * * PCA had notice with any
real specificity of the number of cement facilities that may end up
being regulated as CISWI facilities.'' Petition p. 8. The EPA is
denying rehearing on this issue because the petitioners have failed to
demonstrate that it was impracticable to raise their objection during
the public comment period. In addition, the fact that some cement kilns
may have a later change of regulatory classification after the NESHAP
is promulgated is not an issue of central relevance to the outcome of
the NESHAP rule, as required by the statutory standard for
reconsideration. Finally, as discussed below, even if the impacts of
the solid waste rule had been assessed, it would not have made a
significant difference in the final Portland Cement NESHAP.
a. Was it impractical to raise the objection within the comment
period?
Section 307(d)(7)(B) requires the EPA to grant reconsideration of
an issue ``[i]f the person raising the objection can demonstrate to the
Administrator that it was impracticable to raise such objection within
[the period for public comment] or if the grounds for such objection
arose after the period for public comment''. PCA could have objected
during the comment period on the proposed Portland Cement NESHAP to
EPA's classification of all Portland cement kilns burning secondary
materials \1\ as cement kilns. In the

[[Page 28320]]

proposed Portland Cement NESHAP, the EPA proposed to classify all
cement kilns, including those burning secondary materials, as cement
kilns for the NESHAP rulemaking, and explained why it was doing so. The
EPA discussed the interplay between the cement kiln NESHAP and the
forthcoming rules for incinerators which burn solid waste, noting that
``some Portland cement kilns combust secondary materials as alternative
fuels''. 74 FR at 21138. The EPA then stated that because there was no
regulatory definition of solid waste that would distinguish which of
these alternative fuels burned by cement kilns were wastes and which
were not, the EPA would therefore classify all of the units as cement
kilns. Id. The EPA reasoned that unless and until the Agency adopts a
definition of solid waste classifying the alternative fuels, cement
kilns burning secondary materials as fuels or otherwise using secondary
materials are lawfully classified as cement kilns and rules for cement
kilns therefore would apply to them. Id. The EPA also articulated the
principle of which PCA states it lacked notice: The NESHAP would be
based on the performance of all devices which were cement kilns at the
time of the Portland Cement NESHAP rulemaking. Id. The EPA further
found that combustion of secondary materials as alternative fuels by
cement kilns ``did not have any appreciable effect on the amount of
hazardous air pollutants (HAP) emitted by any source.'' Id. The record
for the proposed rule included an inventory of every material burned by
a large group of cement kilns over a 30-day period, including all of
those comprising the pool of best performers for mercury.\2\
---------------------------------------------------------------------------

\1\ A ``secondary material'' is a material that can potentially
be classified as a solid waste under the Resource Conservation and
Recovery Act when recycled. 50 FR 616 n. 4 (Jan. 4, 1985). Under the
newly adopted regulatory definition of solid waste, secondary
materials encompass ``any material that is not the primary product
of a manufacturing or commercial process, and can include post-
consumer material, off-specification commercial chemical products or
manufacturing chemical intermediates, post-industrial material, and
scrap.'' 40 CFR 241.2.
\2\ See docket item EPA-HQ-OAR-2002-0051-2043.
---------------------------------------------------------------------------

Neither PCA nor any other commenter objected to any aspect of the
issue of the interplay between the cement kiln NESHAP and the CISWI/
waste definition rules during the comment period.\3\ PCA has
consequently failed to satisfy the requirement of section 307(d)(7)(B)
that it was impractical to raise the issue during the public comment
period or that the grounds for their objection arose after the close of
the comment period.
---------------------------------------------------------------------------

\3\ Two commenters ( 2816 and 2846) noted EPA's
approach. One of these commenters approvingly summarized EPA's
position to classify all cement kilns as cement kilns, based on
their status at the time of the NESHAP. The other commenter simply
summarized EPA's position. Neither of these comments is an objection
putting EPA on notice that a commenter disagreed with EPA's approach
or otherwise raising ``with reasonable specificity'' (section
307(d)(7)(B)) any issue that EPA's approach was objectionable for
legal or policy reasons.
---------------------------------------------------------------------------

Petitioners maintain that ``it was impossible for PCA to provide
informed comments on the interplay between the CISWI/`solid waste'
definition rules and the NESHAP rule'' until the Agency proposed those
rules on April 29, 2010, after the close of the comment period in the
NESHAP. Petition p. 10. Acknowledging that the EPA had already raised
the issue in the proposed cement NESHAP, petitioners maintain that
``[a] generic comment is not adequate to put stakeholders on fair
notice that the CISWI/`solid waste' definition rules could
fundamentally change the scope of the NESHAP source category.'' Id.\4\
But the EPA's discussion at proposal was not generic. It was a
considered discussion stating the approach to classification the EPA
intended to adopt (and did adopt) in the final rule, citing moreover to
the EPA's Advance Notice of Proposed Rulemaking (74 FR 42, January 2,
2009) which had discussed the universe of secondary materials burned by
units including cement kilns, and the considerations the Agency might
use in ultimately classifying these materials by rule as waste or non-
wastes. The administrative record likewise contained item-by-item
accounting--cited to by the EPA when presenting the issue of kiln
classification for public comment--of every secondary material burned
by a large group of cement kilns over an extended period.
---------------------------------------------------------------------------

\4\ Nonetheless, had the final solid waste definition been in
place at the time of the final Portland Cement NESHAP rulemaking,
there would have been only modest change in the scope of the NESHAP
source category and the final standards would have been largely
unaltered. See Table 1 below.
---------------------------------------------------------------------------

PCA appears to be stating that although the EPA had raised the
issue of kiln classification at proposal, the practical implications of
the EPA's approach were not clear until the EPA proposed a solid waste
definition and CISWI standards. But the EPA stated that it would
classify all cement kilns as cement kilns during the NESHAP rulemaking
unless a final definition of solid waste changed their regulatory
status prior to the completion of the section 112 Portland Cement
NESHAP. That issue was unaltered by the EPA issuing a proposed solid
waste definition and proposed CISWI standards. Just like the proposed
cement NESHAP, the final cement NESHAP was based on the performance of
units classified as cement kilns at the time of the cement NESHAP
rulemaking. This included all cement kilns burning alternative fuels.
PCA's objection is no different before the proposed solid waste
definition and CISWI rules than after that proposal. The same issue is
presented now as was presented at proposal: Whether devices which are
classified as cement kilns in the absence of a regulatory waste
definition are properly so classified if they were burning secondary
materials that might ultimately be classified as solid wastes.
Moreover, the type of secondary materials the cement kilns were burning
was well-documented in the NESHAP administrative record (and known to
PCA in any case).\5\ PCA's decision not to comment on the issue because
of perceived lack of practical effect was their choice, not the result
of lack of notice. For this reason, PCA's statement that it could not
gauge the impact of the NESHAP until the proposed waste definition/
CISWI rule appeared (Petition p. 10) misses the point. Those impacts
were going to be the same because the EPA had made clear that it would
continue to classify cement kilns as cement kilns so long as that
remained their legal status. This status remained the same throughout
the rulemaking.
---------------------------------------------------------------------------

\5\ Fuels Use in Portland Cement Kilns, April 25, 2011.
---------------------------------------------------------------------------

b. Are petitioners' objections of central relevance to the outcome
of the rule?
Section 307(b)(7)(B) also requires that for reconsideration to be
required, objections must be ``of central relevance to the outcome of
the rule.'' The EPA does not believe that is the case here, for reasons
both legal and practical.
The EPA believes that it validly based the NESHAP on the
performance of devices which were cement kilns at the time of the
rulemaking. See section 112(d)(3)(A) which states that maximum
achievable control technology (MACT) floors for existing sources are to
reflect performance of sources for which the EPA has emissions
information, indicating that standards are to reflect sources' legal
status and performance at the time of the rulemaking.\6\ Later rules

[[Page 28321]]

that prospectively establish the classification of certain of the
alternative fuels that these kilns burned does not alter these kilns'
status--cement kilns--at the time of the cement NESHAP rulemaking. This
is all that matters. The solid waste definition rule adopted a half
year after the signature of the Portland Cement NESHAP rule is not
relevant to the cement kilns' classification at the time of the NESHAP
rulemaking.
---------------------------------------------------------------------------

\6\ There is no valid argument that cement kilns burning
alternative fuels were already commercial and solid waste
incinerators at the time of the NESHAP rulemaking. First, all of
these kilns certified that they were cement kilns in compliance with
the 1999 MACT standards for the Portland Cement category (pursuant
to 40 CFR sections 63.1353(b)(5) and 63.9(h)). Second, the status of
these alternative fuels as solid wastes or not solid wastes could
not be determined in the absence of a regulatory definition
addressing the status of those fuels. 74 FR at 21138. Although there
is a statutory definition of solid waste in the Resource
Conservation and Recovery Act (at section 1004 (27)), that
definition does not apply directly to section 129, but must be
implemented by means of an EPA-promulgated regulation. See CAA
section 129(g)(6) (``the ter[m] `solid waste' * * * shall have the
meanin[g] established by the Administrator pursuant to the Solid
Waste Disposal Act''.) Equally important, the status of alternative
fuels cannot be determined from the statutory definition alone (as
illustrated by the different regulatory classifications of different
alternative fuels in the recently-adopted definition of non-
hazardous secondary materials, and the significant changes between
proposal and final rule that EPA made in classifying alternative
fuels).
---------------------------------------------------------------------------

PCA argues, however, that the situation here is controlled by the
DC Circuit's opinion in NRDC v. EPA, 489 F. 3d 1250 (DC Cir. 2007)
(``Boiler MACT''). Petition p. 8. We disagree. In that case, the EPA
had adopted a definition of ``solid waste incineration unit'' which
classified ``commercial or industrial waste'' to include only solid
waste combusted in units which do not recover energy. 489 F. 3d at
1258. The EPA issued MACT standards predicated upon no boilers being
incinerators due to their energy recovery purpose and design. The court
held that the definition was impermissible in that it classified units
burning solid waste as boilers rather than as commercial and industrial
solid waste incineration units and noted that ``[t]he effect of these
definitions is to substantially reduce the number of commercial or
industrial waste combustors subject to section 129's standards''. Id.
The court continued:

[Since the Court is requiring] EPA to revise the CISWI
Definitions Rule * * *, the Boilers Rule will need to be revised as
well because the universe of boilers subject to its standards will
be far smaller and more homogenous after all CISWI units * * * are
removed from its coverage. Given the likelihood (if not certainty)
that the Boilers Rule will change substantially as a result of our
vacatur of the challenged ``solid waste'' definition, we believe the
Boilers Rule should be vacated in its entirety and remanded for EPA
to repromulgate after revising the CISWI Definitions Rule. 489 F. 3d
at 1261.

The NESHAP rule at issue in Boiler MACT was thus promulgated when
there was a definition of commercial and industrial wastes (as
incorporated in the definition of solid waste incinerator, 489 F. 3d at
1261), which classified all units as either boilers or incinerators,
albeit improperly. Here, in contrast, there was no regulatory
definition of solid waste that determined (or otherwise addressed) the
status of the alternative fuels burned by cement kilns. Thus, cement
kilns burning alternative fuels or other secondary materials were not
classified as incinerators during the cement NESHAP rulemaking, but as
cement kilns. The cement NESHAP therefore was and is based exclusively
on the performance of cement kilns, as properly classified at the time
of the rulemaking.\7\ PCA states that the EPA cannot promulgate a
NESHAP rule based on calculations that include CISWI units, but the EPA
has not done that. Petition p. 10. All of the cement kilns were cement
kilns during the NESHAP rulemaking.
---------------------------------------------------------------------------

\7\ As noted earlier, all cement kilns certified to EPA that
they were cement kilns in compliance with the applicable section
112(d) standards for cement kilns up to and through the time of the
amendments to the Portland Cement NESHAP.
---------------------------------------------------------------------------

Moreover, although the EPA recognizes that there is case authority
that agencies are compelled to reopen rules when the rules' fundamental
factual basis (or other essential premise) is altered by later
events,\8\ the EPA does not believe that the factual basis of the
NESHAP has changed. The units on which the standard was based were
cement kilns at the time of the NESHAP rulemaking, and, consistent with
section 112(d)(3), the EPA based the NESHAP on that classification.
---------------------------------------------------------------------------

\8\ See Geller v. FCC, 610 F. 2d 973, 979-80 (DC Cir. 1979)
(rules justified as needed to encourage passage of Federal copyright
legislation, without any further justification that the rules were
in the public interest, may have lacked any nexus with the public
interest after passage of the copyright legislation and the Federal
Communications Commission could therefore be compelled to reexamine
the rule); RSR v. EPA, 102 F. 3d 1266, 1270 (DC Cir. 1997) (noting
that in Geller the sole basis for the challenged rule had ``long
since evaporated'' and that agency was compelled to reexamine the
rule in light of the ``abnormal circumstances'' of the case).
---------------------------------------------------------------------------

PCA also states that the EPA committed to reconsider the cement
NESHAP once the CISWI/``solid waste'' definition rules were finalized.
Petition p. 11. This is incorrect. The EPA never committed to reopening
a promulgated rule for the cement source category or any other. In the
preamble to the proposed cement NESHAP, the EPA stated: ``EPA is basing
all determinations as to source classification on the emissions
information now available, as required by section 112(d)(3), and will
necessarily continue to do so until the solid waste definition
discussed above is promulgated.'' 74 FR at 21138; see also 75 FR at
54972 which contains similar language. This statement means no more
than it says: if the EPA had promulgated a final definition of solid
waste that changed the classification of these kilns during the
rulemaking, then the EPA would have based that NESHAP on that new
classification. That did not occur during the Portland Cement NESHAP
rulemaking. The quoted language cannot fairly be read to say that the
EPA would revise standards for source categories properly classified at
the time of the NESHAP based on a post-promulgation definition of solid
waste whether that category be Portland cement kilns, lime kilns, or
any other source category which once burned secondary materials later
defined as solid waste.
The implications of PCA's position are that all NESHAPs have to be
reopened and amended if units in the source category were burning
secondary material that were classified post-promulgation as solid
wastes by a later rule. Potential examples are lime kilns, chemical
recovery units, as well as cement kilns (including the 1999 dioxin
standard for cement kilns, which was not reopened as part of the 2010
rulemaking amending the NESHAP). The EPA does not accept this position.
All of the NESHAPs are properly based on the units' classification at
the time of the rulemaking.\9\ PCA's position is disruptive to the
rulemaking process and would potentially lead to frequent and
substantial uncertainty for the regulated community and other
stakeholders
---------------------------------------------------------------------------

\9\ For the same reason, EPA cannot be deemed to have
constructively reopened the NESHAP when it issued the solid waste
definition and CISWI rules. Nothing in the later rules changes the
kilns' status as cement kilns at the time of the cement NESHAP
rulemaking.
---------------------------------------------------------------------------

The EPA similarly disagrees with the premise that the Agency cannot
develop standards for any source category which burns materials which
might ultimately be classified as solid waste until developing and
finalizing a solid waste definition rule. This conflicts with the EPA's
obligations under the statute, consent decrees, and settlement
agreements (including the settlement agreement requiring the EPA to
issue the NESHAP for Portland cement by August 2010) to complete
NESHAPs for source categories listed pursuant to section 112(c)(1) by
dates certain. The EPA's obligation in fact is to issue NESHAPs based
on the emissions information before it at the time of the rulemaking
(see section 112(d)(3)(A)), which is what it did here. NESHAPs are thus
necessarily based on the snapshot-in-time assessment of performance
within a source category, which necessarily includes the status of
sources in that category at that moment

[[Page 28322]]

in time. To do otherwise makes the process unworkable.
Moreover, although not necessary to the decision to deny
reconsideration, the EPA has evaluated the practical implications of
the solid waste definition and CISWI standards that it recently
adopted. If the newly-adopted solid waste definition had been
applicable at the time cement kilns conducted the performance testing
used as the basis for the MACT standards and at the time of
promulgation of the final Portland Cement NESHAP, 23 cement kilns (by
the EPA's estimate) out of 146 would have been classified as
incinerators. If these units were removed from the pool of cement
kilns, the floors--with one exception--would have remained either
identical or essentially identical and, since the EPA adopted the
floors as the standards, the standards would likewise have remained
identical or essentially identical. The one floor that would change
appreciably is the floor for THC, which would become significantly more
stringent because the revised data base would reflect cement kilns
experiencing less variability in THC emissions.\10\ Given the minimal
change in the standards, with the exception of the more stringent THC
standard, kilns' compliance strategy would be unaltered.
---------------------------------------------------------------------------

\10\ Nor would EPA alter any of its determinations not to adopt
more stringent beyond-the-floor standards.

Table 1--Comparison of Floors With and Without Kilns That Could Have Been CISWI Kilns Had the Definition of
Solid Waste Applied \11\
----------------------------------------------------------------------------------------------------------------
Existing source New source floor--
Existing source floor--CISWI kilns New source floor-- CISWI kilns
Pollutant floor--2010 Final removed from 2010 Final Rule removed from
Rule inventory inventory
----------------------------------------------------------------------------------------------------------------
Mercury......................... 55 lb/MM tons 58 lb/MM tons 21 lb/MM tons 24 lb/MM tons
clinker. clinker. clinker. clinker.
Total Hydrocarbons.............. 24 ppmvd.......... 15 ppmvd.......... 24 ppmvd.......... 11 ppmvd.
PM.............................. 0.04.............. 0.05.............. 0.01.............. 0.01.
HCl............................. 3 ppmvd........... 3 ppmvd........... 3 ppmvd........... 3 ppmvd.
----------------------------------------------------------------------------------------------------------------

In this analysis, the EPA finds that none of the cement kilns would
have been potentially CISWI due to the use of secondary material
ingredients (though some kilns would potentially have been CISWI due to
secondary fuels burned). This is because none of these secondary
ingredient materials identified by PCA as being used in cement kilns is
considered to be combusted. A typical dictionary definition of
``combustion'' is ``an act or instance of burning'' or ``a chemical
process (as an oxidation) accompanied by the evolution of light and
heat.'' \12\ Cement kilns typically process ingredients in the cold
regions of the kiln, where ingredients are gradually heated until they
reach the temperature where clinker formation takes place. This is not
a chemical process marked by the evolution of light and heat, and so is
not combustion. Rather, it is analogous to cooking as opposed to
burning.\13\ Cement kiln dust is also used as an ingredient and is
sometimes processed in the hot end of the cement kiln. Due to its
inorganic, essentially inert composition, this material is not
combusted.\14\ Non-hazardous secondary materials used as an ingredient
(as opposed to being combusted) in combustion units are not solid
wastes under newly promulgated definitional rules (to be codified at 40
CFR section 241.3 (b)(3)), assuming the legitimacy criteria in section
241.3 (d) are satisfied.
---------------------------------------------------------------------------

\11\ In this analysis, nine of the eleven floor kilns for the
final cement NESHAP remain cement kilns. One of the two floor kilns
for THC would be a CISWI, although removing this kiln from the
cement kiln data base would result in a significantly more stringent
THC standard under the NESHAP because this kiln had more associated
variability in its performance than the other kilns ranked closest
to it. For PM, two of six kilns remain classified as cement kilns.
For HCl, two of three floor kilns remain cement kilns, but there are
a whole group of cement kilns that performed identically to the
floor kiln for HCl that was, for purposes of our analysis,
reclassified as a CISWI so there would be no effect on the standard.
75 FR at 54894 (standard based on analytic method detection limit
times a variability factor rather than on the measured values
because those values were so close to the analytic method minimum
detection limit). See the memorandum Revised Floors Without Kilns
That Would Have Been CISWI Kilns Had the Solid Waste Definition
Applied, dated April 25, 2011.
\12\ Webster's Ninth New Colleg1ate Dictionary. Merriam-Webster
Inc. 1990.
\13\ See Combustion in a Cement Kiln and Cement Kilns' Use of
Tires as Fuel dated April 25, 2011.
\14\ Id.
---------------------------------------------------------------------------

The EPA's analysis also reflects the results of Information
Collection Requests (pursuant to section 114 of the CAA) regarding
cement kilns' use of tires as alternative fuels. Based on these ICR
responses, the EPA finds that most of the responding cement kilns
obtained tires from established tire programs as defined in newly
promulgated part 241, and have reasonably established that the tires
were not discarded and were handled as valuable commodities from the
point of removal through arrival at the cement kiln and therefore would
not have been solid wastes. The EPA does not interpret the
certification required by section 60.2175(w) of the newly-adopted CISWI
rule as requiring ultimate users to know the source of all tires
obtained from an established tire collection program. This is a
practical impossibility. In certifying, users also should not assume
that tires from established programs which participate in occasional
cleanup days were discarded. Rather, it is sufficient that the ultimate
user verify that it is obtaining tires from an established tire
collection program, which program can provide the user with reasonable
assurance that it manages tires carefully from point of collection to
point of burning and which does not receive tires which have been
abandoned in landfills or otherwise.
There are further practical considerations, which likewise indicate
the relative lack of practical effect of the solid waste definition and
CISWI standards on the NESHAP. First, cement kilns can choose whether
to continue burning solid waste and being classified as incinerators,
or not burn waste and remain classified as cement kilns. Second,
burning alternative fuels (whether classified as solid wastes or not)
does not appreciably affect cement kilns' HAP emissions. 74 FR at
21138; Comments of PCA, Docket EPA-HQ-RCRA-2008-0329 (Aug. 3, 2010) (p.
27) (same). Thus, the measured performance of cement kilns that forms
the basis of the standards in the NESHAP remains technically sound
since that performance would remain the same whether or not kilns burn
``solid waste'' alternative fuels.
Finally, PCA points out that until there is a solid waste
regulatory definition and a CISWI rule, its members lack the
information to make a rational choice as to which source category to be
subject to--whether or not to continue burning secondary materials and
whether to invest

[[Page 28323]]

immediately in the pollution control equipment and operational
practices necessary for most kilns to comply with the Portland Cement
NESHAP. Petition p. 18. The EPA has now adopted both a regulatory solid
waste definition for non-hazardous secondary materials and CISWI
standards, which should provide the basis for kilns to make these
decisions within the necessary investment timeframe.
Conclusion
The EPA proposed to classify cement kilns burning secondary
materials as cement kilns in the proposed rule, explained why it would
do so, and finalized the NESHAP rule using the approach proposed. No
objections to that approach were raised to the EPA during the
rulemaking. We further reject the position that a solid waste
definition adopted any time after promulgation of a NESHAP compels
reexamination of the NESHAP because it alters the NESHAP's fundamental
premises. The EPA appropriately develops NESHAPs, including the
Portland Cement NESHAP, based on the information available to it at the
time of the rulemaking and it is undisputed that the units in question
here were cement kilns at the time of the final cement NESHAP. The EPA
thus concludes that reconsideration here is neither required nor
appropriate under section 307(d)(7)(B).
2. Standards During Periods of Startup and Shutdown
PCA maintains that the NESHAP's limits that apply during periods of
startup and shutdown do not meet the requirements of CAA section
112(d)(2) because the standards rest on engineering estimates of
performance rather than on performance data, and that the EPA failed to
provide adequate notice and opportunity for comment. Petition pp. 14-
16. With respect to the startup and shutdown standards, PCA has not
demonstrated that it was unable to raise its objections during the
public comment period. Indeed, it did so. The EPA proposed that the
same standards apply during startup and shutdown conditions as during
normal operating conditions, and solicited any data which might show
that some other standard would be more appropriate. 74 FR at 21162. PCA
commented at length on these proposed standards. PCA Comments, pp. 7-8,
11-13. In response to PCA's own comment that the proposed startup and
shutdown standards should not be normalized to units of production (PCA
Comment of Sept. 4, 2009 at 7-8, EPA-HQ-OAR-2002-0051-2922.1), the EPA
modified the proposed standards so that they are expressed as stack
concentrations. 75 FR at 54991.
PCA's main contention is that the EPA based the standards for
startup and shutdown on its engineering judgment, so that commenters
have had no opportunity to comment on emissions data supporting those
conclusions. Petition p. 15. PCA is correct that the standards reflect
the EPA's engineering judgment, but the EPA may permissibly rely on
engineering judgment in developing floor standards in a NESHAP. Sierra
Club v. EPA, 167 F.3d 658, 665 (DC Cir. 1999); National Lime, 233 F.3d
at 632; Mossville Environmental Action Now v. EPA, 370 F.3d 1232, 1241-
42 (DC Cir. 2004); see also CAA section 112(d)(3)(A). Furthermore,
neither PCA nor any other commenter provided emissions data for startup
and shutdown operations, despite the EPA's request. 74 FR at 21162.
Under these circumstances, the EPA believes that the petitioner
both had the opportunity to raise its objections during the public
comment period and did so. Reconsideration is therefore neither
required nor appropriate.
The EPA, however, is granting reconsideration of one issue related
to standards during startup and shutdown. This is the standard for HCl
during startup and shutdown for kilns equipped with wet scrubbers but
which do not use a continuous emissions monitor (CEM) to measure
compliance. See issue B.4 below.
3. Standards for Particulate Matter
PCA states that in the final rule ``EPA dramatically deviated from
the range of possible limits that it had proposed for particulate
matter * * * by almost 90 per cent'' for new facilities and by nearly
50 percent for existing facilities. Petition p. 16. PCA further
maintains that this change resulted from ``cherry picked'' data, with
the expanded dataset ``arbitrarily and capriciously biased towards top
performers,'' those with new baghouses. Id. PCA further states that it
was unable to comment on these data because the EPA did not make the
data available until after promulgation of the final rule, and that the
limits may not be achievable for sources that use wet scrubbers for
acid gas control due to loadings of re-entrained particulate. Id. at
17. PCA raises the same issues with respect to the PM limit in the
NSPS, which is identical to the new source standard under the NESHAP.
Id.
This part of PCA's petition is largely mistaken, and does not
present any grounds requiring the EPA to reconsider the PM standard in
either the NESHAP or the NSPS. Indeed, PCA's public comments suggested
a different PM limit than proposed based largely on the additional
performance data for which they now claim lack of notice. PCA Comments
at p. 86 and App. 1 to those comments. See docket items EPA-HQ-OAR-
2002-0051-2922.1 and 2922.2, September 4, 2009. Much of this
information had already been submitted to the EPA by PCA and individual
PCA members in the parallel NSPS rulemaking as well. See National
Emission Standards for Hazardous Air Pollutants from the Portland
Cement Manufacturing Industry Response to Comments Received on Proposed
Rule (Aug. 6, 2010) (``RTC'') p. 155. See docket item EPA-HQ-OAR-2002-
0051-3464. PCA thus not only had an opportunity to comment on the data
used by the EPA for the final standard, but did so.
Nor did the EPA ``cherry pick'' among those data. See RTC at pp.
155, and 153-55 demonstrating the opposite: PCA had used the data
selectively in constructing the alternative standard suggested in its
comments, but the EPA's analysis used all of the additional data from
the pool of best performing sources for PM.
PCA is also mistaken in its claim that it lacked opportunity to
present its objection that the PM standard is based on unrepresentative
performance because it was based on performance of plants with newly-
installed baghouses. Indeed, it raised this issue in its public
comments. PCA Comments at 86; see also RTC at pp. 155-56 indicating
that baghouse performance can improve over time but is characterized by
operating variability both when a baghouse is new and throughout its
operating life. Commenters likewise raised the issue of baghouse
performance decreasing due to re-entrained particulate resulting from
use of wet scrubbers for acid gas control, and the EPA responded by
citing data showing that PM levels from a cement kiln baghouse
decreased after the kiln installed a wet scrubber to control its acid
gas emissions. RTC at p. 158. Since there was ample notice and
opportunity for comment on these issues (and, as just indicated, actual
comment), the EPA is not required to reconsider them.
In its December 14, 2010, letter, PCA takes a different tack,
stating that the PM standard in the final NESHAP and NSPS is expressed
as a 30-day rolling average rather than as a 1-day average (as at
proposal), and that the EPA used a statistical equation, the Upper
Prediction Limit at the 99th percentile (UPL 99) to construct that
limit. December 14 letter pp. 3-4. The letter

[[Page 28324]]

asserts that PCA lacked notice of either issue.
PCA is correct that the final standard is expressed as a 30-day
standard (met by averaging 30 daily observations per month). 75 FR at
54988.\15\ The EPA stated at proposal that it was considering adopting
a PM standard whereby compliance would be measured with a CEM, and that
CEM-based standards would be expressed as 30-day numbers. The EPA
further had presented the statistical means of converting individual
measurements into 30-day averages by means of the UPL 99 equation. 74
FR at 21157, 21158, 21141-42. PCA's comments criticized use of the UPL
99 equation both generally, and for a PM standard specifically (PCA
Comments pp. 5, 86), and documented their view that the UPL equation
underestimated variability for PM generally and underestimated the
projected 99th percentile of the distribution of PM values (PCA
Comments at App. 2 p. ES-7 and App. 2 p. 5-5). See also the EPA's
responses at 75 FR at 59474-76; Development of the MACT Floors for the
final Portland Cement NESHAP (the EPA, August 6, 2010, docket item EPA-
HQ-OAR-2002-0051-4550) at pp. 2-4, 9-10, 17, explaining why the UPL 99
equation is a reasonable statistical tool for assessing variability,
including variability over a 30-day measuring period.\16\ PCA and
member companies likewise submitted detailed comments questioning the
reliability and suitability of PM CEMs and urged the EPA not to require
their use in measuring the standard. RTC at pp. 163-67. The EPA
consequently does not accept the contention that commenters lacked
notice of these issues and that reconsideration is either required or
appropriate.
---------------------------------------------------------------------------

\15\ PCA is not correct, however, that the standard became
dramatically more stringent. If expressed as a not-to-exceed limit,
as at proposal, the final existing source standard under the NESHAP
would be approximately 0.07 lb/ton clinker, or only about 12 per
cent more stringent than proposed. This slight increase in
stringency results from corrections to the UPL equation used at
proposal, corrections made in response to comments submitted by PCA.
The additional performance data for PM actually made the standard
less stringent (the net slight increase in stringency resulting, as
noted from the revised UPL equation to the new data set).
Development of the MACT Floors for the Final NESHAP for Portland
cement (EPA, August 6, 2010, Docket 4550) at p. 16.
\16\ The argument that the UPL equation underestimates
variability of PM control performance because it underestimated
variability for performance of THC is misleading. The UPL equation
measures potential variability based on the within-source variance
and between-source variance of the data set to which it is applied.
74 FR at 21141. The EPA's initial data set for THC was comparatively
sparse, and did not fully reflect the best-performing sources'
within-source variation and between-source variation. The EPA was
able to gather additional performance data between proposal and
comment to expand those data (and to calculate variability directly
from the data; see 75 FR at 54980 n. 22). However, the problem was
not the UPL equation but the data set to which it was applied. It
also should be noted that baghouses controlling PM (the control
device for all of the best performing cement kilns) are relatively
impervious to input loadings, performing relatively constantly
regardless of incoming ash load. 70 FR at 59449 (Oct. 12, 2005); 72
FR at 54879 (Sept. 27, 2007). Baghouse variability thus can be
assessed especially reliably by standard statistical means, such as
the UPL equation. Id.
---------------------------------------------------------------------------

The EPA, however, is granting reconsideration of two standards
related to PM, the NSPS for PM as applied to modified sources, and the
alternative PM compliance alternative for sources that commingle
certain internal exhaust gas streams. See issues B. 6 and B. 9 below.
4. Monovents
Petitioner Eagle Materials claims that it lacked notice of the
EPA's basis for requiring use of CEMs for all cement kilns, including
those having monovent exhaust configurations (vents on the top of a
control device rather than a single stack). This issue was presented at
proposal, and the company submitted comments on the issue, as the
petitioner acknowledges. Petition at pp. 3, 5-9. The petitioner
disagrees with the EPA's response (which indicated that a source could
install a separate stack for measurement purposes or seek an
alternative monitoring regime on a site-specific basis pursuant to the
authority at 40 CFR section 63.7 (f), RTC at pp. 75, 120, 145-46, 172-
73), but this does not demonstrate that there was a lack of opportunity
to comment on the issue. The EPA is consequently not granting this
petition.
Although we are denying the request for reconsideration of the
monitoring provisions for facilities with monovents, we note further
that these types of monitoring issues tend to be very site specific,
and there will likely be individual cases where the national rule will
be impractical. The provisions of section 63.7(f) of the General
Provisions exist for this purpose and we believe that issues related to
monitoring facilities with monovents are best handled on a case-by-case
basis under that rule. These provisions have been used in similar
situations to authorize cost-effective, environmentally appropriate
alternative monitoring and, to our knowledge, have not in and of
themselves required the construction of a single stack.
5. Emissions From Crushers
Crushers are machines designed to reduce large rocks from a quarry
into gravel-sized feed. See section 63.1341 (definition of
``crusher''). Crushers are typically located at the limestone quarry.
In 2002, the EPA and the PCA entered into a settlement agreement
regarding the 1999 NESHAP for the industry and, as part of that
agreement, agreed to clarify that crushers are not part of the Portland
cement source category. The EPA did so but used convoluted language
\17\ which created unnecessary confusion about collateral issues such
as the regulatory status of other types of equipment such as storage
bins. In the 2005 rule proposing to amend the NESHAP, the EPA proposed
to eliminate the confusing language and simply state that crushers are
not part of the Portland cement source category, and indicated in the
preamble to the 2006 final rule that it intended to finalize this
language. See 70 FR at 72341-42 (Dec. 2, 2005) and 71 FR at 76532 (Dec.
20, 2006). The EPA neglected to include the necessary rule language,
and proposed to add it in this rulemaking. 74 FR at 21163. The final
rule states that ``[c]rushers are not covered by this subpart
regardless of their location.'' Section 63.1340 (c); see also RTC at p.
212 (explaining these actions and citing to earlier regulatory
history).
---------------------------------------------------------------------------

\17\ Former section 63.1340(c) stated: ``For Portland cement
plants with on-site nonmetallic mineral processing facilities, the
first affected source in the sequence of materials handling
operations subject to this subpart is the raw material storage,
which is just prior to the raw mill. Any equipment of the on-site
nonmetallic mineral processing plant which precedes the raw material
storage is not subject to this subpart. In addition, the primary and
secondary crushers of the on-site nonmetallic mineral processing
plant, regardless of whether they precede the raw material storage,
are not subject to this subpart. Furthermore, the first conveyor
transfer point subject to this subpart is the transfer point
associated with the conveyor transferring material from the raw
material storage to the raw mill.''
---------------------------------------------------------------------------

PCA asks that the EPA reconsider its decision and restore the
amended regulatory text quoted below. Petition Exhibit 1. The EPA has
provided numerous opportunities to comment on this issue so
reconsideration is clearly not compelled under section 307 (d)(7)(B).
Nor is reconsideration appropriate. The former regulatory text created
confusion about collateral issues and failed to indicate clearly its
ostensible subject--that crushers are not regulated under the Portland
Cement NESHAP. The EPA has amended the rule to make this clear. Doing
so is consistent with the 2001 Settlement Agreement on this point, the
object of which was to make clear that crushers

[[Page 28325]]

were not regulated under the NESHAP. In any case, nothing in that
settlement agreement prevents the EPA from amending its regulations if
it is appropriate to do so. The agreement in fact states that
``[n]othing in this Agreement shall be construed to limit or modify the
EPA's discretion to alter, amend, or revise, or to promulgate
regulations that supersede, the regulations identified in section III
of this Agreement.''

B. Issues on Which the EPA Is Granting Reconsideration

1. Standards for Clinker Storage Piles
PCA and Eagle Materials both maintain that the EPA did not provide
sufficient notice of the standards it might adopt for clinker storage
piles. Although the EPA did give notice that it might adopt standards
for these units (74 FR at 21163), the petitioners are correct that the
Agency did not give sufficient notice of what those standards might be.
The EPA is consequently granting the petition as to this issue. For the
same reason, the EPA is granting the petition as to all of the
miscellaneous issues pertaining to clinker storage piles (issues 1-4 in
Exhibit 1 to PCA's Petition for Reconsideration).
2. Affirmative Defense to Civil Penalties for Exceedances Occurring
During Malfunctions
Various petitioners representing environmental advocacy groups, as
well as PCA, assert that the EPA adopted in the final rule an
affirmative defense to civil penalties for exceedances of applicable
emission standards during periods of malfunction. Section 63.1344. The
petitioners are correct that there was not a proper opportunity to
comment on this provision at proposal, and the EPA is therefore
granting these petitions as to this issue.
3. Continuously Monitored Parameters for Alternative THC Standard
Section 63.1343(b)(1) provides two options for meeting a standard
for organic HAP. One is to meet a THC standard of 24 parts per million
by volume dry (ppmvd); the other is to meet a limit of 9 ppmvd of total
organic HAP. If the source elects to meet the total organic HAP
standard, a site specific THC limit is established based on the THC
results during the performance test used to establish compliance with
the total organic HAP limit. Section 63.1348(a)(4)(v).
PCA has noted that the site specific THC limit can unintentionally
deprive kilns of operating flexibility where kilns have measured total
organic HAP comfortably below the alternative standard. For example, if
a kiln has measured total organic HAP of 3 ppmvd and site specific
levels of THC of 15 ppmvd during the performance test, it would be de
facto subject to a considerably more stringent THC standard than if it
were subject to the main THC standard.
The EPA believes that the issue of unnecessarily constrained
operating flexibility is worthy of reexamination and therefore is
granting reconsideration of this issue.
4. HCl Limit of Zero During Startup for Sources That Do Not Have a CEM
The final cement NESHAP provides that existing and new kilns have a
standard of zero for HCl when operating at startup and shutdown and
when compliance is measured by means other than a CEM. Section
63.1343(b) Table 1 note 4. Kilns equipped with wet scrubbers may elect
to comply with the HCl standard by means of performance tests rather
than a CEM, so the practical effect of this provision is that wet-
scrubber equipped kilns electing to comply by means of stack testing
rather than continuous monitoring of HCl with a CEM would be subject to
the emission limit of zero during startup and shutdown. See sections
63.1348(a)(6)(i) and 63.1349(b)(6)(i)(a). PCA indicates in its petition
that the EPA is incorrect in finding that HCl is formed only from
burning normal fuel (75 FR at 54992). PCA maintains that HCl can be
formed by oxidizing chlorides in the raw materials present in the kiln
regardless of the type of fuels used, and so can be present in
emissions during startup and shutdown. PCA urges that the same limit (3
ppmvd) apply during startup as applies to all other kilns during all
operating conditions. Petition Exhibit 1.
The EPA is granting reconsideration on this issue since PCA's
petition may have technical merit.
5. Allowing Sources With Caustic Scrubbers To Comply With HCl Standard
Using Performance Tests
As just noted, the final rule allows sources equipped with wet
scrubbers (and tray towers) to comply with the HCl standard by means of
performance tests rather than with continuous monitoring of HCl with a
CEM. (Sources electing to comply by means of stack tests do establish
continuously monitored parameters--liquid flow rate, pressure and pH
(see section 63.1350(m)(5)-(7)). PCA indicates that this compliance
option should not be limited to wet scrubber equipped units, but should
also be available for units equipped with caustic scrubbers, in part
because some sources will be equipped with dry scrubbers (due to water
shortages) and should have the same operating flexibilities as wet
scrubber-equipped kilns.
The EPA is granting reconsideration to consider the issue of
whether dry scrubber-equipped kilns should have the option of complying
by means of stack tests rather than continuous monitoring.
6. Alternative PM Limit
Some kilns combine kiln exhaust gas with exhaust gas from other
unit operations, including the clinker cooler. See 75 FR at 54988. The
final cement NESHAP seeks to accommodate these situations by providing
for a site specific PM limit for commingled flows from the kiln and
clinker cooler. Section 63.1343(b)(2). PCA points out, however, that
other flows can be commingled as well. PCA Petition Exhibit 1
(referring to coal mill exhaust and exhaust from an alkali by-pass as
instances of additional flows). Without an allowance for these
additional flows, the site specific PM limit could be stricter than the
EPA intended (since the PM concentration will be divided by a lower
number in the implementing equation), and could penalize the
environmentally beneficial practice of commingling these flows, a
practice resulting in significant energy savings. 75 FR at 54988. The
EPA therefore grants reconsideration on this issue.
7. Monitoring for Mercury and PM During Periods of Startup and Shutdown
The standards for the four main pollutants regulated by the NESHAP
(mercury, THC/organic HAP, HCl, and PM) are all measured continuously.
This is true of the standards applying during normal operation and
those that apply during startup/shutdown. However, two of the
standards--for mercury and for PM--are normalized to production units
during normal operation and expressed on a concentration basis during
startup/shutdown. See 75 FR at 54991-92.
PCA suggests in its petition that cement companies would like to
utilize the same monitoring device for both standards, but that this
could pose operational obstacles if sorbent traps are used as the
continuous monitoring device. Petition Exhibit 1. This is because data
from a sorbent trap cannot be readily disaggregated, meaning that a
dedicated trap would be needed to monitor startup and shutdown and a
different sorbent trap used for normal operation. (Data from a CEM can
be disaggregated, so that it is possible to evaluate data from startup/
shutdown

[[Page 28326]]

and normal operation from measurements taken by a single PM and mercury
CEM.) PCA questions if this was the EPA's intent.
The EPA is granting the petition to consider the question of types
of continuous monitoring allowed during startup and shutdown for
mercury and PM.
8. Coal Mills (NESHAP and NSPS)
In the EPA's recent amendments to the Standards for Performance for
Coal Mills, we exempted coal mills at cement manufacturing facilities
whose only heat source was kiln exhaust. See 74 FR 51952, October 8,
2009. This change was made in response to comment from PCA. PCA argued
that coal mills were similar to inline raw mills. In the case of inline
raw mills, we consider the raw mill to be an integral

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