National Emission Standards for Hazardous Air Pollutants for Iron and Steel Foundries Area Sources
[Federal Register: January 2, 2008 (Volume 73, Number 1)] [Rules and Regulations] [Page 225-265] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr02ja08-15] [[Page 226]] ----------------------------------------------------------------------- ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 63 [EPA-HQ-OAR-2006-0359; FRL-8509-6] RIN 2060-AM36 National Emission Standards for Hazardous Air Pollutants for Iron and Steel Foundries Area Sources AGENCY: Environmental Protection Agency (EPA). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: EPA is issuing national emission standards for hazardous air pollutants for two area source categories (iron foundries and steel foundries). The requirements for the two area source categories are combined in one subpart. The final rule establishes different requirements for foundries based on size. Small area source foundries are required to comply with pollution prevention management practices for metallic scrap, the removal of mercury switches, and binder formulations. Large area source foundries are required to comply with the same pollution prevention management practices as small foundries in addition to emissions standards for melting furnaces and foundry operations. The final standards reflect the generally achievable control technology and/or management practices for each subcategory. DATES: This final rule is effective on January 2, 2008. The incorporation by reference of certain publications listed in this final rule is approved by the Director of the Federal Register as of January 2, 2008. ADDRESSES: The EPA has established a docket for this action under Docket ID No. EPA-HQ-OAR-2006-0359. All documents in the docket are listed in the Federal Docket Management System index at http://www.regulations.gov index. Although listed in the index, some information is not publicly available, e.g., confidential business information or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy form. Publicly available docket materials are available either electronically in http://www.regulations.gov or in hard copy at the NESHAP for Iron and Steel Foundries Area Sources Docket, at the EPA Docket and Information Center, EPA West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566-1744, and the telephone number for the Air Docket is (202) 566-1742. FOR FURTHER INFORMATION CONTACT: Mr. Conrad Chin, Sector Policies and Programs Division, Office of Air Quality Planning and Standards (D243- 02), Environmental Protection Agency, Research Triangle Park, North Carolina 27711, telephone number: (919) 541-1512; fax number: (919) 541-3207; e-mail address: chin.conrad@epa.gov. SUPPLEMENTARY INFORMATION: Outline. The information in this preamble is organized as follows: I. General Information A. Does this action apply to me? B. Where can I get a copy of this document? C. Judicial Review II. Background Information III. Summary of the Final Rule and Changes Since Proposal A. What are the applicability provisions and compliance dates? B. What emissions standards are in the form of pollution prevention management practices? C. What are the requirements for small iron and steel foundries? D. What are the requirements for large iron and steel foundries? IV. Summary of Comments and Responses A. Applicability and Compliance Dates B. Pollution Prevention Management Practices C. Requirements for Large Iron and Steel Foundries D. Implementation and Enforcement E. Definitions F. Impact Estimates G. Miscellaneous V. Summary of Impacts of the Final Rule VI. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review B. Paperwork Reduction Act C. Regulatory Flexibility Act D. Unfunded Mandates Reform Act E. Executive Order 13132: Federalism F. Executive Order 13175: Consultation and Coordination with Indian Tribal Governments G. Executive Order 13045: Protection of Children from Environmental Health and Safety Risks H. Executive Order 13211: Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use I. National Technology Transfer Advancement Act J. Executive Order 12898: Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations K. Congressional Review Act I. General Information A. Does this action apply to me? The regulated category and entities potentially affected by this final action include: ------------------------------------------------------------------------ Examples of regulated Category NAICS code\1\ entities ------------------------------------------------------------------------ Industry....................... 331511 Iron foundries. Iron and steel plants. Automotive and large equipment manufacturers. 331512 Steel investment foundries. 331513 Steel foundries (except investment). ------------------------------------------------------------------------ \1\ North American Industry Classification System. This table is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be affected by this action. To determine whether your facility would be regulated by this action, you should examine the applicability criteria in 40 CFR 63.10880 of subpart ZZZZZ (National Emission Standards for Hazardous Air Pollutants for Iron and Steel Foundries Area Sources). If you have any questions regarding the applicability of this action to a particular entity, consult either the air permit authority for the entity or your EPA regional representative as listed in 40 CFR 63.13 of subpart A (General Provisions). B. Where can I get a copy of this document? In addition to being available in the docket, an electronic copy of this final action will also be available on the Worldwide Web (WWW) through EPA's Technology Transfer Network (TTN). A copy of this final action will be posted on the TTN's policy and guidance page for newly proposed or promulgated rules at the following address: http://www.epa.gov/ttn/oarpg/. The TTN provides information and technology exchange in various areas of air pollution control. [[Page 227]] C. Judicial Review Under section 307(b)(1) of the Clean Air Act (CAA), judicial review of this final rule is available only by filing a petition for review in the U.S. Court of Appeals for the District of Columbia Circuit by March 3, 2008. Under section 307(d)(7)(B) of the CAA, only an objection to this final rule that was raised with reasonable specificity during the period for public comment can be raised during judicial review. Moreover, under section 307(b)(2) of the CAA, the requirements established by this final rule may not be challenged separately in any civil or criminal proceedings brought by EPA to enforce these requirements. Section 307(d)(7)(B) also provides a mechanism for us to convene a proceeding for reconsideration, ``[i]f the person raising an objection can demonstrate to the EPA 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 (but within the time specified for judicial review) and if such objection is of central relevance to the outcome of the rule.'' Any person seeking to make such a demonstration to us should submit a Petition for Reconsideration to the Office of the Administrator, Environmental Protection Agency, Room 3000, Ariel Rios Building, 1200 Pennsylvania Ave., NW., Washington, DC 20460, with a copy to the person listed in the preceding FOR FURTHER INFORMATION CONTACT section, and the Associate General Counsel for the Air and Radiation Law Office, Office of General Counsel (Mail Code 2344A), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20004. II. Background Information Section 112(k)(3)(B) of the CAA requires EPA to identify at least 30 hazardous air pollutants (HAP), which, as the result of emissions of area sources,\1\ pose the greatest threat to public health in urban areas. Consistent with this provision, in 1999, in the Integrated Urban Air Toxics Strategy, EPA identified the 30 HAP that pose the greatest potential health threat in urban areas, and these HAP are referred to as the ``Urban HAP.'' See 64 FR 38715, July 19, 1999. Section 112(c)(3) requires EPA to list sufficient categories or subcategories of area sources to ensure that area sources representing 90 percent of the emissions of the 30 Urban HAP are subject to regulation. EPA listed the source categories that account for 90 percent of the Urban HAP emissions in the Integrated Urban Air Toxics Strategy.\2\ Sierra Club sued EPA, alleging a failure to complete standards for the area source categories listed pursuant to CAA sections 112(c)(3) and (k)(3)(B) within the time frame specified by the statute. See Sierra Club v. Johnson, No. 01-1537, (D.D.C.). On March 31, 2006, the court issued an order requiring EPA to promulgate standards under CAA section 112(d) for those area source categories listed pursuant to CAA section 112(c)(3). Among other things, the court order, as amended on October 15, 2007, requires that EPA complete standards for nine area source categories by December 15, 2007. We are issuing this final rule in response to the court order. Other final NESHAP will complete the required regulatory action for the remaining area source categories. --------------------------------------------------------------------------- \1\ An area source is a stationary source of hazardous air pollutant (HAP) emissions that is not a major source. A major source is a stationary source that emits or has the potential to emit 10 tons per year (tpy) or more of any HAP or 25 tpy or more of any combination of HAP. \2\ Since its publication in the Integrated Urban Air Toxics Strategy in 1999, EPA has revised the area source category list several times. --------------------------------------------------------------------------- Under CAA section 112(d)(5), the Administrator may, in lieu of standards requiring maximum achievable control technology (MACT) under section 112(d)(2), elect to promulgate standards or requirements for area sources ``which provide for the use of generally available control technologies or management practices by such sources to reduce emissions of hazardous air pollutants.'' As explained in the preamble to the proposed NESHAP, we are issuing emission standards based on GACT for the control of the Urban HAP for which the source category was listed (compounds of chromium, lead, manganese, and nickel) that are emitted from metal melting furnaces at area source facilities classified as large iron and steel foundries. In addition, we are establishing pollution prevention management practices based on GACT that apply to all area source foundries. The pollution prevention management practices reduce HAP emissions of organics, metals, and mercury generated from furnace charge materials and prohibit the use of methanol as a component of binder formulations in certain applications. Another pollution prevention management practice requires that foundries keep a record of the annual quantity and composition of each HAP-containing chemical binder or coating material used to make molds and cores. These records may assist area source foundry owners or operators in their pursuit of pollution prevention opportunities. III. Summary of the Final Rule and Changes Since Proposal A. What are the applicability provisions and compliance dates? The final NESHAP applies to each new and existing iron and steel foundry that is an area source of HAP. The final rule allows 2 years (instead of 1 year as proposed) for existing foundries to comply with the pollution prevention standards for mercury. As proposed, all foundries must comply with the pollution prevention management practices for scrap management and binder formulations by January 2, 2009. A large existing foundry must comply with applicable emissions limitations and operation and maintenance requirements no later than 2 years after initial classification.\3\ --------------------------------------------------------------------------- \3\ If additional time is needed to install controls, the owner or operator of an existing source can, pursuant to 40 CFR 63.6(i)(4), request from the permitting authority up to a 1-year extension of the compliance date. See CAA section 112(i)(3)(B). --------------------------------------------------------------------------- As proposed, different rule requirements apply to facilities classified as large foundries or small foundries. Based on public comment, we have revised the threshold level in the definitions of large foundry'' and ``small foundry'' as they apply to existing affected sources. For an existing affected source, we are defining a ``small foundry'' as an iron and steel foundry that has an annual metal melt production of 20,000 tons or less (instead of 10,000 tons). An existing affected source that has an annual metal melt production greater than 20,000 tons is classified as a large foundry. For new affected sources, we have revised the basis for determining the threshold. For a new affected source, we are defining a ``small foundry'' as an iron and steel foundry that has an annual metal melt capacity of 10,000 tons or less. A new affected source that has an annual metal melt capacity greater than 10,000 tons is classified as a large foundry. The term, ``annual metal melt capacity'' is defined in the final rule as: * * * the lower of the total metal melting furnace equipment melt rate capacity assuming 8,760 operating hours per year summed for all metal melting furnaces at the foundry or, if applicable, the maximum permitted metal melt production rate for the iron and steel foundry calculated on an annual basis. Unless otherwise specified in the permit, permitted metal melt production rates that are not specified on an annual basis must be annualized assuming 24 hours per day, 365 days per year of operation. If the permit limits the operating hours of the [[Page 228]] furnace(s) or foundry, then the permitted operating hours are used to annualize the maximum permitted metal melt production rate. Each existing foundry must determine its initial classification as a small or large foundry using production data for calendar year 2008. After the initial classification, an existing affected source classified as a small foundry that exceeds the 20,000 ton annual metal melt production threshold during the preceding calendar year must comply with the applicable requirements for a large foundry within 2 years of the date of the foundry's notification that the annual metal melt production exceeded 20,000 tons (provided the facility has never been classified as a large foundry). For example, if an existing small foundry produces more than 20,000 tons of melted metal from January 1 through December 31, 2009, that facility is required to comply with the requirements for a large foundry by January 2012. If the small foundry has previously been classified as a large foundry, the facility must comply with the requirements for a large foundry immediately (no later than the date of the foundry's most recent notification that the annual melt production exceeded 20,000 tons). If an existing facility is initially classified as a large foundry (or a small foundry becomes a large foundry), that facility must meet the applicable requirements for a large foundry for at least 3 years, even if its annual metal melt production falls below 20,000 tons. After 3 years, the foundry may reclassify the facility as a small foundry provided the annual metal melt production for the preceding calendar year was 20,000 tons or less. A large foundry that is reclassified as a small foundry must continue to comply with the applicable requirements for small foundries immediately (no later than the date the foundry notifies the Administrator of the reclassification). A large foundry that is reclassified as a small foundry and then exceeds an annual metal melt production of 20,000 tons for a subsequent calendar year, must comply with the applicable requirements for large foundries immediately (no later than the date the foundry notifies the Administrator of the reclassification). The owner or operator of a new area source foundry must comply with the rule requirements by January 2, 2008 or upon startup, whichever is later. Each new foundry must determine its initial classification as a small or large foundry based on its annual metal melting capacity at startup. Following the initial determination, a small foundry that increases their annual metal melting capacity to greater than 10,000 tons must comply with the requirements for a large foundry no later than the startup date for the new equipment or if applicable, the date of issuance for their revised State or Federal operating permit. If the new foundry is initially classified as a large foundry (or a small foundry subsequently becomes a large foundry), the owner or operator must comply with the requirements for a large foundry for at least 3 years before reclassifying the facility as a small foundry. After 3 years, the owner or operator may reclassify the facility as a small foundry provided the annual metal melting capacity is 10,000 tons or less. If a large foundry is reclassified as a small foundry, the owner or operator must comply with the requirements for a small foundry no later than the date the melting equipment was removed or taken out of service or if applicable, the date of issuance for their revised State or Federal operating permit. B. What emissions standards are in the form of pollution prevention management practices? 1. Metallic Scrap The material specification requirements are based on pollution prevention and require removal of HAP-generating materials from metallic scrap before melting. All foundries must prepare and operate according to written material specifications for one of two equivalent compliance options. One compliance option requires foundries to prepare and operate pursuant to written material specifications for the purchase and use of only metal ingots, pig iron, slitter, or other materials that do not include metallic scrap from motor vehicle bodies, engine blocks, oil filters, oily turnings, lead components, chlorinated plastics, or free liquids. The term ``free liquids'' is defined as material that fails the paint filter test by EPA Method 9095B (incorporated by reference-- see 40 CFR 63.14) in EPA Publication SW-846, ``Test Methods for Evaluating Solid Waste, Physical/Chemical Methods''. A new provision states that the requirement for no free liquids does not apply if the owner or operator can demonstrate that the free liquid results from scrap exposed to rain. The second compliance option requires foundries to prepare and operate pursuant to written material specifications for the purchase and use of scrap that has been depleted (to the extent practicable) of organics and HAP metals in the charge materials used by the foundry. Except for a cupola equipped with an afterburner, metallic scrap charged to a scrap preheater or metal melting furnace must be depleted (to the extent practicable) of used oil filters, chlorinated plastic parts, accessible lead-containing components, and free liquids. For scrap charged to a cupola metal melting furnace that is equipped with an afterburner, the material specifications must include requirements for metal scrap to be depleted (to the extent practicable) of chlorinated plastics, accessible lead-containing components, and free liquids. In response to comments, we deleted a provision in the proposed rule that would have exempted the routine recycling of baghouse bags or other internal process or maintenance materials in the furnace. Either material specification option will achieve a similar HAP reduction impact. Foundries may have certain scrap subject to one option and other scrap subject to another option provided the metallic scrap remains segregated until charge make-up. 2. Mercury Switch Removal The final standards for mercury are based on pollution prevention and require a foundry owner or operator who melts scrap from motor vehicles either to purchase (or otherwise obtain) the motor vehicle scrap only from scrap providers participating in an EPA-approved program for the removal of mercury switches or to fulfill the alternative requirements described below. The final rule clarifies that the requirements do not apply to scrap providers who do not provide motor vehicle scrap or to contracts and shipments that do not include motor vehicle scrap. Foundries participating in an approved program must maintain records identifying each scrap provider and documenting the scrap provider's participation in the EPA-approved mercury switch removal program. An equivalent compliance option is for the foundry to prepare and operate pursuant to an EPA-approved site-specific plan that includes specifications to the scrap provider that mercury switches must be removed from motor vehicle bodies at an efficiency comparable to that of the EPA-approved mercury switch removal program (see below). An equivalent compliance option is provided for facilities that recover only specialty scrap that does not contain mercury switches. Provisions are also included for scrap that does not contain motor vehicle scrap. We expect most facilities that use motor vehicle scrap will choose to comply by purchasing motor vehicle scrap only from scrap providers who participate in a program for removal of [[Page 229]] mercury switches that has been approved by the Administrator. The NVMSRP \4\ is an approved program under this final standard as is the mercury switch recovery program implemented by the State of Maine. Facilities choosing to use the NVMSRP as a compliance option must assume all of the responsibilities as described in the MOU. --------------------------------------------------------------------------- \4\ For details see: http://www.epa.gov/mercury/switch.htm. In particular, see the signed Memorandum of Understanding. --------------------------------------------------------------------------- Foundries may also obtain scrap from scrap providers participating in other programs. To do so, the facility owner or operator must submit a request to the Administrator for approval to comply by purchasing scrap from scrap providers that are participating in another switch removal program and demonstrate to the Administrator's satisfaction that the program meets the following specified criteria: (1) There is an outreach program that informs automobile dismantlers of the need for removal of mercury switches and provides training and guidance on switch removal, (2) the program has a goal for the removal of at least 80 percent of the mercury switches, and (3) the program sponsor must submit annual progress reports on the number of switches removed and the estimated number of motor vehicle bodies processed (from which a percentage of switches removed is easily derivable). Facilities that purchase motor vehicle scrap from scrap providers that do not participate in an EPA-approved mercury switch removal program must prepare and operate pursuant to and in conformance with a site-specific plan for the removal of mercury switches, and the plan must include provisions for obtaining assurance from scrap providers that mercury switches have been removed. The plan must be submitted to the Administrator for approval and demonstrate how the facility will comply with specific requirements that include: (1) A means of communicating to scrap purchasers and scrap providers the need to obtain or provide motor vehicle scrap from which mercury switches have been removed and the need to ensure the proper disposal of the mercury switches, (2) provisions for obtaining assurance from scrap providers that motor vehicle scrap provided to the facility meets the scrap specifications, (3) provisions for periodic inspection, or other means of corroboration to ensure that scrap providers and dismantlers are implementing appropriate steps to minimize the presence of mercury switches in motor vehicle scrap, (4) provisions for taking corrective actions if needed, and (5) requiring each motor vehicle scrap provider to provide an estimate of the number of mercury switches removed from motor vehicle scrap sent to the facility during the previous year and the basis for the estimate. The Administrator may request documentation or additional information from the owner or operator at any time. The site-specific plan must establish a goal for the removal of at least 80 percent of the mercury switches. All documented and verifiable mercury- containing components removed from motor vehicle scrap count towards the 80 percent goal. In response to comments, we have revised the final rule to include provisions designed to increase the effectiveness and enforceability of the EPA-approved programs. The requirements for a site-specific plan specify that the owner or operator must operate according to the plan during the review process, operate according to the plan at all times after approval, and address any deficiency identified by the Administrator or delegated authority within 60 days following disapproval of a plan. The owner or operator may request approval to revise the plan and may operate according to the revised plan unless and until the revision is disapproved by the Administrator or delegated authority. A new provision also requires the site-specific plan to include documentation of direction to appropriate staff to communicate to suppliers throughout the supply chain the need to promote the removal of mercury switches from end of life vehicles. The owner or operator must provide examples of materials that are used for outreach to suppliers at the request of the Administrator or delegated authority. We have also clarified that the information in the semiannual progress reports for each scrap provider can be submitted in aggregated form and does not have to be submitted for each shipment. We have also revised the option for approved mercury programs to require that foundries develop and maintain onsite a written plan demonstrating the manner through which the facility is participating in the EPA- approved program. The plan must include facility-specific implementation elements, corporate-wide policies, and/or efforts coordinated by a trade association as appropriate for each facility. The plan must include documentation of direction to appropriate staff to communicate to suppliers throughout the scrap supply chain the need to promote the removal or mercury switches from end-of-life vehicles. The owner or operator also must conduct periodic inspections or provide other means of corroboration to ensure that scrap providers are aware of the need for and are implementing appropriate steps to minimize the presence of mercury in scrap from end-of-life vehicles. An equivalent compliance option is provided for foundries that recover specialty metals. The option requires the facility to certify that the only materials they are charging from motor vehicle scrap are materials recovered for their specialty alloy content, such as chromium in certain exhaust systems, and these materials are known not to contain mercury switches. We have added to the final rule certification requirements for facilities that do not use motor vehicle scrap containing mercury switches. Records are required to document conformance with the material specifications for metallic scrap, restricted scrap, and mercury switches. Each foundry is required to submit semiannual reports that clearly identify any deviation from the scrap management requirements. These reports can be submitted as part of the semiannual reports required by 40 CFR 63.10 of the general provisions. 3. Binder Formulations For each furfuryl alcohol warm box mold or core making line, new and existing foundries must use a binder chemical formulation that does not use methanol as a specific ingredient of the catalyst formulation. This requirement does not apply to the resin portion of the binder system. This final rule includes recordkeeping requirements to document conformance with this requirement. C. What are the requirements for small iron and steel foundries? This final rule requires each new and existing affected source that is classified as a small foundry to comply with the pollution prevention management practices for metallic scrap, mercury switches, and binder formulations described above. The owner or operator is required to submit an initial notification of applicability no later than May 1, 2008 (or within 120 days after the foundry becomes subject to the standard; see 40 CFR 63.9(b)(2)). The foundry is also required to submit an initial written notification to the Administrator that identifies their facility as a small (or large) foundry; this notification is due no later than January 2, 2009. Subsequent notifications are required within 30 days for a change in [[Page 230]] process or operations that reclassifies the status of the facility and its compliance obligations. A small foundry is also required to submit a notification of compliance status according to the requirements in 40 CFR 63.9(h) of the General Provisions (40 CFR part 63, subpart A). The notification of compliance status must include certifications of compliance for the pollution prevention management practices. This final rule also requires small foundries to keep records of monthly metal melt production and report any deviation from the pollution prevention management practices in the semiannual report required by 40 CFR 63.10 of the NESHAP general provisions. We are also requiring small foundries to keep a record of the annual quantity and composition of each HAP-containing chemical binder or coating material used to make molds and cores. These records must be copies of purchasing records, Material Data Safety Sheets, or other documentation that provide information on binder materials. The purpose of this requirement is to encourage foundries to investigate and use nonHAP binder and coating materials wherever feasible. D. What are the requirements for large iron and steel foundries? This final NESHAP requires new and existing affected sources that are classified as large foundries to comply with the pollution prevention management practices described in section III.B of this preamble. In addition, large foundries are required to operate capture and collection systems for metal melting furnaces and comply with emissions standards, operation and maintenance, monitoring, testing, and recordkeeping and reporting requirements. 1. Emissions Limitations New and existing affected sources that are classified as large foundries must comply with emissions limits for metal melting furnaces. A metal melting furnace includes cupolas, EAF, EIF, or other similar devices (excluding holding furnaces, argon oxygen decarburization vessels, or ladles that receive molten metal from a metal melting furnace, to which metal ingots or other materials may be added to adjust the metal chemistry). The final emissions limits for metal melting furnaces are: • 0.8 pounds of PM per ton of metal charged or 0.06 pounds of total metal HAP per ton of metal charged for each metal melting furnace at an existing iron and steel foundry. • 0.1 pounds of PM per ton of metal charged or 0.008 pounds of total metal HAP per ton of metal charged for each metal melting furnace at a new iron and steel foundry. The owner or operator of a new or existing affected source may choose to comply with these emission limits utilizing emissions averaging as specified in this rule so that the production-weighted average emissions from all metal melting furnaces at the foundry for any calendar month meet the applicable emissions limit. The proposed rule included operating parameter limits that applied to PM control devices applied to emissions from a metal melting furnace. We eliminated the operating limit for baghouse pressure drop in response to comments because this operating parameter was determined not to be an appropriate indicator of performance. We have revised the other operating limits to apply to PM control devices at new affected sources instead of existing affected sources to minimize costs to existing sources associated with monitoring system retrofits. For a wet scrubber, a foundry must maintain the 3-hour average pressure drop and scrubber water flow rate at or above the minimum levels established during the initial or subsequent performance test. For an electrostatic precipitator, a foundry must maintain the voltage and secondary current (or total power input) to the control device at or above the level established during the initial or subsequent performance test. The final rule does not include an operating limit for baghouses at existing or new affected sources. The final NESHAP also includes a fugitive emissions opacity limit of 20 percent for each building or structure housing iron and steel foundry operations revised since proposal to allow one 6-minute average per hour that does not exceed 30 percent. Foundry operations covered by the fugitive emissions opacity limit include all process equipment and practices used to produce metal castings for shipment including mold or core making and coating; scrap handling and preheating; metal melting and inoculation; pouring, cooling, and shakeout; shotblasting, grinding and other metal finishing operations; and sand handling. 2. Operation and Maintenance Requirements The owner or operator is required to prepare and operate by an O&M plan for each control device used to comply with the standards. Any other O&M, preventative maintenance, or similar plan which satisfies the specified requirements may be used to comply with the requirements for an O&M plan. 3. Monitoring Requirements In response to comments, we have revised the proposed monitoring requirements in several respects. The monitoring requirements in the final rule apply to new and existing affected sources that are classified as large foundries (those having an annual metal melt production greater than 20,000 tons instead of 10,000 tons in the proposed rule). We are requiring that large foundries at new and existing affected sources conduct initial and periodic inspections of PM control devices (baghouses, wet scrubbers, and electrostatic precipitators) in lieu of the proposed monitoring requirements. As an alternative means of compliance, the owner or operator of an existing area source may use a bag leak detection system to demonstrate continuous compliance with a PM or total metal HAP emissions limit instead of complying with the inspection requirements for baghouses. We are requiring that large iron and steel foundries at new affected sources install and operate CPMS to measure and record operating parameters of wet scrubbers and electrostatic precipitators used to comply with PM or total metal HAP emissions limit. All CPMS must be operated and maintained according to the O&M plan. These foundries are also subject to control device operating limits that are the same as the proposed operating limits for wet scrubbers and electrostatic precipitators. No operating limits apply to baghouses at existing or new affected sources. Bag leak detection systems are required for positive or negative pressure baghouses at a new area source foundry. If a bag leak detection system is used, the owner or operator must prepare and operate pursuant to a monitoring plan for each bag leak detection system; specific requirements for the plan are included in this final rule. For additional information on bag leak detection systems that operate on the triboelectric effect, see ``Fabric Filter Bag Leak Detection Guidance'', U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards, September 1997, EPA-454/R-98-015, National Technical Information Service (NTIS) publication number PB98164676. This document is available from the NTIS, 5385 Port Royal Road, Springfield, VA 22161. Monthly inspections of the equipment that is important to the performance of the capture system are also required. The owner or operator must repair any defect or deficiency in the capture [[Page 231]] system as soon as practicable but no later than 90 days and record the results of each inspection and the date of any repair. If a large foundry complies with the emissions limits for furnaces using emissions averaging, the final NESHAP requires the owner or operator to demonstrate compliance on a monthly basis. The facility must determine the weighted average emissions from all metal melting furnaces at the foundry using an equation included in this final rule. We have reduced the default emissions factor for uncontrolled induction furnaces in an emissions averaging group from 3 pounds of PM per ton of metal charged (lb/ton) to 1.6 lb/ton. The owner or operator must maintain records of the monthly calculations and report any exceedance in the semiannual report. 4. Performance Tests We are requiring that each large foundry conduct a performance test to demonstrate initial compliance with the PM or total metal HAP emissions limit and the opacity limit for fugitive emissions within 180 days of the applicable compliance date and submit the results in the notification of compliance status. In lieu of conducting an initial performance test to demonstrate compliance with the applicable PM or total metal HAP limit for metal melting furnaces, the owner or operator of an existing foundry is allowed to submit the results of a previous performance test provided the test was conducted within the last 5 years using the methods and procedures specified in the rule and either no process changes have been made since the test, or the test results reliably demonstrate compliance with the applicable emissions limit despite process changes. If the owner or operator does not have a previous performance test that meets the rule requirements, a test must be conducted within 180 days of the compliance date. Special provisions also are included for testing electric induction furnaces (EIFs) at existing foundries. Performance tests are required for all new area source foundries. Subsequent tests for furnaces are required every 5 years and each time an operating limit is changed or a process change occurs that is likely to increase metal HAP emissions from the furnace. Provisions are included in this final rule for determining compliance with PM or total metal HAP emissions limits in a lb/ton of metal charged format and for establishing control device operating parameter limits. This final rule also includes requirements to perform opacity testing by Method 9 (40 CFR part 60, appendix A-4) every 6 months. This final rule describes the methods and requirements for these semiannual opacity observations. In response to comments, we have revised the proposed rule to allow an alternative to the Method 9 test. The alternative allows the owner or operator to conduct semiannual VE observations by Method 22 (40 CFR part 60, appendix A-7). If visible fugitive emissions from foundry operations occur for more than 10 percent of the Method 22 observation period (i.e., more than a cumulative 6 minutes of the 1-hour period), the owner or operator must conduct a Method 9 test of the fugitive emissions from foundry operations as soon as possible, but no later than 15 days after the Method 22 test to determine compliance with the opacity limit. 5. Recordkeeping and Reporting Requirements The owner or operator is required to submit an initial notification that identifies the facility as a large (or small) foundry. In addition, the owner or operator is required to comply with certain requirements of the General Provisions (40 CFR part 63, subpart A), which are identified in Table 3 of this final rule. The General Provisions include specific requirements for notifications, recordkeeping, and reporting, including provisions for a startup, shutdown, and malfunction plan/reports required by 40 CFR 63.6(e). In addition to the records required by 40 CFR 63.10, all foundries are required to maintain records to document conformance with the pollution prevention management practice emissions standards for metallic scrap, mercury switch removal, and binder formulations as well as to maintain records of annual melt production and corrective action(s). Large foundries must also prepare and operate according to the O&M plan and record monthly compliance calculations for metal melting furnaces that comply using emissions averaging, if applicable. The owner or operator must submit semiannual reports that provide summary information on excursions or exceedances (including the corrective action taken), monitor downtime incidents, and deviations from management practices or O&M requirements according to the requirements in 40 CFR 63.10. We are also requiring all foundries to keep a record of the annual quantity and composition of each HAP-containing chemical binder or coating material used to make molds and cores. These records must be copies of purchasing records, Material Data Safety Sheets, or other documentation that provide information on binder materials. The primary purpose of this requirement is to encourage foundries to investigate and use nonHAP binder and coating materials wherever feasible. 6. Exemption From Title V Permitting Requirements For the reasons discussed in the preamble to the proposed rule, we are exempting iron foundries and steel foundries area source categories from title V permitting requirements. Although the final rule exempts facilities that do not have a title V permit from the requirement to obtain a permit for the purposes of this rule, sources that already have a title V permit generally must include the requirements of this rule through a permit reopening or at renewal according to the requirements of 40 CFR part 70 and the title V permit program. IV. Summary of Comments and Responses We received a total of 37 comments on the proposed area source NESHAP from 31 companies, trade associations, and anonymous members of the public and from 6 States and State associations during the public comment period (September 17, 2007 to November 1, 2007). A public hearing was held on October 2, 2007, where we received testimony from two industry representatives. Sections IV.A through IV.G of this preamble provide responses to the public comments received on the proposed NESHAP, including our rationale for changes made as a result of the comments. A. Applicability and Compliance Dates Comment: Nine commenters stated that EPA should consider a higher plant size threshold of 15,000 tons per year (tpy) of melted metal because of the significant economic burden associated with the proposed rule. In addition, one commenter said the industry subcategorization threshold should be ``significantly above'' 15,000 tpy. Another commenter stated that it would be difficult to justify the proposed rule for foundries with a production of 30,000 tpy, and that it is not cost-effective to require controls on foundries with a melt production less than 15,000 tpy. One commenter recommended a threshold of 20,000 tpy and two commenters said that the threshold should be ``significantly above'' 30,000 tpy. One commenter opposed the rule as proposed and recommended that EPA reconsider the proposed size threshold of 10,000 tpy. [[Page 232]] One commenter supported the co-proposal which would implement only the pollution prevention management practices. The commenter stated that foundries are adequately regulated by existing Federal, State, and local regulations and the proposed rule would impose significant burden without significant environmental improvement. Response: Based on our consideration of comments, including the combined effect of the emission and cost impacts on both the nationwide cost-effectiveness and the economic impacts of the rule, we concluded that the proposed rule using a 10,000 tpy threshold for new and existing affected sources that are classified as large foundries may not be appropriate. Based on the revised impact analysis, we determined that the most appropriate size threshold for existing affected sources classified as large foundries is 20,000 tpy. However, we found no basis for increasing the size threshold for new affected sources. New affected sources do not have the same retrofit issues as existing affected sources. Moreover, there are existing affected sources with metal melt production of 10,000 tpy that operate controls. Therefore, we have retained the 10,000 tpy threshold at which a new affected source is classified as a large foundry. Comment: One commenter requested that EPA clarify that the rule does not apply to foundries that produce nonferrous metals where nonferrous metal means ``any pure metal other than iron or any metal alloy for which a metal other than iron is its major constituent by percent in weight.'' Response: We agree. The types of facilities identified by the commenter are covered under other source categories depending on the type of metal produced (e.g., secondary nonferrous metals, secondary aluminum, secondary copper, etc.). In response to this comment, we have added a definition of ``nonferrous metal'' to the final rule and revised the definition of ``iron and steel foundry'' to clarify that nonferrous metal in scrap, metal melting furnaces, and foundry operations is not covered by the rule. Comment: Twelve commenters requested 3 years to comply with the mercury switch removal program to allow for the program to develop based on participation by the larger steel producers. Another commenter requested 5 years to comply with the mercury switch removal program. Response: We agree that the typical area source foundry does not have the financial resources and market force over its scrap providers when compared with the much larger mini-mills. The area source foundries purchase only a small fraction of the national supply of scrap from end-of-life vehicles; the vast majority is used in steelmaking. Over time, we expect many more dismantlers will join the National Vehicle Mercury Switch Recovery Program (NVMSRP), and even the smaller scrap providers will find it to their advantage to participate. We believe that an appropriate solution to the difficulties identified by the commenters is to allow more time for these area source foundries to comply with the mercury requirements. Consequently, we are revising the rule to allow additional time (up to 2 years) to comply with the pollution prevention requirements for mercury. B. Pollution Prevention Management Practices 1. Requirements for Metallic Scrap Comment: Three commenters stated that the phrase ``to the extent practicable'' makes the requirements in the scrap specifications unenforceable. The commenters recommended that EPA either define the term or establish concrete criteria. One of the commenters recommended that for scrap containing free liquid, EPA should define ``to the extent practicable'' as scrap failing the paint filter test, similar to Sec. 63.10885(a)(1). Another of the commenters asks what ``to the extent practicable'' means and recommends that the phrase ``according to standard industry practice'' be used instead; this would make the foundry and electric arc furnace (EAF) rules more consistent. Response: The commenters are referring to the term, ``to the extent practicable'' as used in Sec. 63.10885(b)(2) of the proposed rule. We used this term to demonstrate our understanding that furnace charge materials can not be depleted of 100 percent of the organics and HAP metals or the presence of used oiled filters, chlorinated plastic parts, accessible lead-containing components, and free liquids. We do not see the need to codify a definition of ``practicable'' but note here that our intent is that something is practicable if it is capable of being put into practice and is feasible. However, we believe that the term ``standard industry practice'' does not have a significantly clearer meaning, and in fact may not result in as much removal. We are replacing the term in the final EAF rule with the term ``to the extent practicable'' as it relates to the removal of lead-containing components such as batteries and wheel weights. Therefore, we decided not to revise the proposed rule for foundries to replace ``to the extent practicable'' with ``standard industry practice.'' Comment: One commenter stated that the requirements for metallic scrap management in the proposed rule should be the same as for the EAF rule in that the pollution prevention plan should have Administrator approval and should require compliance inspections and corrective action. Response: The requirements for scrap management under the proposed foundries rule differ from the requirements for scrap management under the proposed EAF rule because we determined that GACT for the iron foundries and steel foundries area source categories is represented by written material specifications. The proposed area source rule for foundries requires that the facility operate by written specifications for the purchase and use of specified material or of only scrap that has been depleted of organics and HAP metals. These written specifications must be kept onsite and be readily available; consequently, they can be reviewed at any time by EPA or the delegated agency for completeness and for compliance with the rule's requirements. The owner or operator must maintain records demonstrating compliance with these requirements and must submit a certification of compliance to that effect. We continue to believe that these written material specifications represent GACT for iron and steel foundries, and the additional requirements recommended by the commenter are not warranted and would be unnecessarily burdensome for the large population of small area source foundries. Comment: One commenter stated that the proposed rule must be revised to require the facility's owner or operator to ensure the ``baghouse bags, internal process materials and maintenance materials'' that are charged in the foundry do not contain organics, HAP metals, chlorinated plastics, and free organic liquids. The commenter explained that under Sec. 63.10885(a)(1), if an inspector found organics, HAP metals, chlorinated plastics or free organic liquids in charge materials, the inspector would need to demonstrate that these wastes do not stem from ``internal process materials or maintenance materials.'' The commenter stated that this type of loophole will make enforcement difficult. Response: We agree with the commenter that the provision exempting baghouse bags, internal process materials and maintenance materials from scrap management requirements is not needed in this rule [[Page 233]] and have deleted the provision from the final rule. Comment: One commenter requested clarification on the limitations for scrap managed using a scrap preheater equipped with an afterburner. Response: We have revised the proposed rule to clarify that the limitations for metallic scrap are the same for all scrap preheaters and metal melting furnaces whether or not the preheater or furnace (except for a cupola) is equipped with an afterburner. A different set of limitations for metallic scrap applies only to cupolas with afterburners. Comment: One commenter stated that it is virtually impossible to ensure no free liquids on scrap received when it rains during the transport of the scrap. The commenter stated that the impact of this requirement has been underestimated. Response: Our intent in prohibiting free liquids was to minimize the presence of organic liquids. We have clarified in the final rule that the requirement for no free liquids does not apply if the owner or operator can demonstrate that the free liquid is water that resulted from scrap exposure to rain. 2. Requirements for Mercury Switch Removal Comment: One commenter requested that EPA establish mercury emission performance standards to supplement the scrap management program. The commenter recommended that EPA adopt emissions limits (effective in 2010) from the New Jersey standards which require a mercury limit of 35 milligrams per ton (mg/ton) of steel produced or a reduction of least 75 percent at the exit of the mercury control system. The commenter stated that the rule allows facilities time to reduce emissions by removing sources of mercury from the scrap they process but requires additional control if the source separation programs are not sufficient to meet the emissions limit. The commenter said that one New Jersey foundry had already installed an activated carbon injection system for mercury control and a baghouse for the cupola; mercury emission test results show mercury reductions greater than 90 percent. The commenter argued that such an emissions limit is needed to determine the success of the source separation program and the need for add-on controls for melters. Three commenters recommended that the final rule include testing and monitoring to verify the effectiveness of the mercury switch source reduction program. Two commenters stated that the final rule should require facilities to test emissions within 6 months of the final rule to establish a baseline for each facility. One of these commenters also stated that percent reduction targets and timelines be included in the final rule along with a sampling program. The third commenter requested that the final rule include performance or stack testing (inlet/outlet) and baghouse hopper dust analysis to confirm and demonstrate reduced mercury inputs and emissions. This commenter stated that baghouse hopper dust testing is used in some States and EPA should evaluate State requirements to develop national minimum requirements. Two of the commenters stated that there are monitoring technologies that are adaptable for use by any facility in this industry. The commenters noted that batch process emissions are tested and monitored in many industrial sectors, and EPA has established emission standards for many batch processes without requiring the use of continuous monitors, including Pesticide Active Ingredient Manufacturing and Miscellaneous Organic Chemical Manufacturing. The commenters also said that EPA has recently promulgated the ``sorbent tube'' method for sampling stack gases at coal-fired power plants (40 CFR part 75, appendix K). The commenters explained that because this method of monitoring mercury is capable of sampling flue gases over any period of time (hours or even days), there appears to be little impediment to using this method to sample ``batch'' processes like those at foundries. There are also several statistical sampling techniques that account for the variability of emissions. Response: We understand from the commenter that there is one major source foundry with a cupola that has installed emission controls for mercury. However, we are not aware that any of the more than 400 area source iron and steel foundries for which we have emission control information have installed mercury emission controls, and consequently, we do not believe that such controls represent GACT for area sources. On the other hand, pollution prevention practices have been used to reduce mercury emissions at foundries and similar sources, such as EAF steelmaking facilities, and these practices have been demonstrated to be successful at reducing mercury emissions. We determined that the pollution prevention requirements for mercury were economically and technologically feasible and concluded they represent GACT for iron and steel foundries that are area sources. As part of the GACT determination, we concluded that it was not feasible to prescribe or enforce an emission limit for mercury because mercury emissions are highly variable, and we have insufficient information to determine an emission limit that might be achieved on a continuing basis. On the other hand, the pollution prevention approach quantifies the reduction in mercury release to the environment by requiring that the amount of mercury recovered from end-of-life vehicles be reported. This type of recordkeeping and reporting is an important monitoring component of the rule and provides assurance that the requirements are achieving mercury reductions. The monitoring for mercury recommended by the commenters is not appropriate because it is not related to the rule requirements and provides no information related to enforcing the rule. We have chosen monitoring requirements that are applicable to the pollution prevention requirements in the rule. Comment: Three commenters recommended that the final rule include enforceable measures of accountability to ensure the effectiveness of the collection programs. The commenters stated that these measures should include written documentation and audits of the participation of suppliers and evaluation of switch recovery rates. One commenter recommended a provision for expectations that a certain percentage of switches will be collected from the vehicles and another commenter recommended quantifiable measures such as the fraction of switches collected from the vehicles. Both commenters stated that the final rule should include consequences if the programs do not meet their goals. One commenter was concerned about using an estimate of the percentage of mercury switches removed to determine whether an approved plan should continue to be approved because the estimate of the percentage of mercury switches removed is highly uncertain and dependant on many assumptions. The commenter stated that determining the effectiveness of site-specific mercury switch removal programs by comparing uncertain statistics with an aggressive removal goal (80 percent) may cause effective programs to have their approval revoked. Response: We determined at proposal that GACT for mercury emissions was the pollution prevention practice of removing mercury switches from end-of-life vehicles before the vehicles were crushed and shredded for use. GACT would be implemented by foundry owners purchasing scrap only from [[Page 234]] scrap providers that were participating in an EPA-approved program for switch removal, operating pursuant to an EPA-approved site-specific plan (of equal effectiveness to an EPA-approved program) that ensured scrap providers had removed mercury switches, or by not melting scrap from end-of-life vehicles. We determined that the National Vehicle Mercury Switch Removal Program (NVMSRP) met the requirements of an EPA- approved program. However, we received two comments questioning how the effectiveness of an EPA-approved program would be ensured and suggestions for improving aspects of the rule related to program transparency, enforcement, and implementation. We have incorporated several of these suggested improvements into the final rule. The improvements include developing and maintaining a plan showing how the facility is participating in the approved program, documentation of communication to suppliers of the need to remove mercury switches and corroboration to ensure suppliers are implementing switch removal procedures. The NVMSRP resulted from a 2-year process of collaboration and negotiation among a diverse group of stakeholders to create a dedicated nationwide effort to remove mercury-containing switches from end-of- life vehicles. The stakeholders included EPA, automakers, steel manufacturers, environmental groups, automobile scrap recyclers, and State agency representatives. These stakeholders signed a Memorandum of Understanding (MOU) detailing their respective responsibilities and commitments in the national switch recovery effort. This effort will result in substantial reductions in mercury emissions from foundries by removing the majority of mercury from metal scrap. In addition, it will have environmental benefits from reducing mercury emissions from sources other than foundries and will reduce mercury releases to media other than air. EPA recounts this history not to show that the Agency is blindly accepting this negotiated agreement, but that EPA has examined the agreement anew in light of the requirements of section 112(d) and finds that the program resulting from that agreement meets the statutory requirements. The success of the program has been documented by direct measurements of mercury in switches removed, and as of November 28, 2007, over 843,000 switches with 1,855 pounds of mercury have been recovered. As we stated in detail at proposal, this pollution prevention approach was determined to be GACT for reducing mercury emissions from foundries. Emissions of mercury result from the melting of scrap metal that contains mercury components. When these components are removed prior to charging the scrap to a metal melting furnace, the mercury emissions are prevented. Thousands of automobile recyclers have already joined the NVMSRP, although not all members have yet sent in recycled switches. Information on the program, including scrap suppliers who have joined and the number of switches they have turned in to date, can be found on the End of Life Vehicle Solutions (ELVS) Web site (http://www.elvsolutions.org).There are many elements in the NVMSRP that are designed to measure success and to evaluate its effectiveness. One year following the effective date of the MOU and each year thereafter, the parties or their designees and EPA agreed to meet to review the effectiveness of the program at the State level based upon recovery and capture rates. The parties to the agreement will use the results to improve the performance of the program and to explore implementation of a range of options in that effort. Two and one-half years from the inception of the program, the parties agreed to meet and review overall program effectiveness and performance. This review will include discussion of the number of switches that have been collected and what factors have contributed to program effectiveness. We note here that the Administrator is committed to evaluating the effectiveness of the approved program on a continuing basis and is a party to the agreement that established the NVMSRP. The parties (including the Administrator) recently reviewed the program's effectiveness after 1 year. The 1-year review showed reasonable progress, with recycling programs now available in every State. The national program was slightly ahead of the schedule projected for start-up. We now expect switch removals to steadily increase over the next year as these programs begin to fully operate. If the Administrator finds the program to be ineffective at the next scheduled review under the MOU, or at any time as provided in the rule, the Administrator may disapprove the program in whole or in part (e.g., for a particular State), and participation in the program would no longer be a compliance option, leaving foundry owners or operators obligated to develop site-specific programs for EPA approval in order to meet the requirements of this rule. Under the site-specific program, it would fall on the foundry owner or operator to provide a detailed accounting of switches removed and vehicles processed from all of their scrap providers to enable the Administrator or permitting authority to evaluate whether the facility is in compliance with the switch removal requirements. The somewhat lower documentation feature of the NVMSRP provides a strong incentive to all of the parties involved in switch removal to make every effort to ensure the NVMSRP is effective on a continuing basis. However, if the national program were to prove unsatisfactory and be subsequently disapproved as a compliance option, the burden would be on the foundry owner or operator to implement a site-specific approach. In either case (whether a national program or site-specific program), we have codified an approach that provides accountability and measures of effectiveness. A key element of measuring the success of the program is maintaining a database of participants that has detailed contact information; documentation showing when the participant joined the program (or started submitting mercury switches); records of all submissions by the participant including date, number of mercury switches; and confirmation that the participant has submitted mercury switches as expected. Another important element is aggregated information to be updated on a quarterly basis, including progress reports, summaries of the number of program participants by State, individual program participants, and records of State and national totals for the number of switches and the amount of mercury removed. The program is also estimating the number of motor vehicles recycled. The NVMSRP will issue reports quarterly during the first year of the program, every 6 months in the second and third year of the program, and annually thereafter. The reports prepared by ELVS will include the total number of dismantlers or other potential participants identified; the total number of dismantlers or others contacted; and the total number of dismantlers or others participating. The annual report will include the total mercury (in pounds) and number of mercury switches recovered nationwide; the total pounds of mercury, number of mercury switches, and an estimated national capture rate, with information organized by State, compared with the expected range of mercury switch retirement rates for each State; and the total number and identity of dismantlers or others dropped due to inactivity or withdrawal [[Page 235]] from the program. Mercury switch removal is already underway--more than 1,855 pounds of mercury from more than 843,000 switches have been recovered to date by program participants. This represents almost 20 percent of our estimated reduction in mercury emissions of 5 tons per year once the final rule is implemented. The commenters make valid points that the effectiveness of the rule could be improved by incorporating certain elements that the steel manufacturers have already agreed to in the MOU. We have revised the proposed rule to provide more specificity to the foundry owner or operator responsibilities and to improve the effectiveness of EPA- approved programs, which may include programs other than the NVMSRP. In addition, we are including these same requirements in the option for developing a site-specific plan for switch removal. The rule changes include: • Foundry owners or operators must develop and maintain onsite a plan demonstrating the manner through which their facility is participating in the EPA-approved program. The plan must include facility-specific implementation elements, corporate-wide policies, and/or efforts coordinated by a trade association as appropriate for each facility. • Foundry owners or operators must provide in the plan documentation of direction to appropriate staff to communicate to suppliers throughout the scrap supply chain the need to promote the removal of mercury switches from end-of-life vehicles. Upon the request of the permitting authority, the owner or operator must provide examples of materials that are used for outreach to suppliers, such as letters, contract language, policies for purchasing agents, and scrap inspection protocols. • Foundry owners or operators must conduct periodic inspections or provide other means of corroboration to ensure that suppliers are aware of the need for and are implementing appropriate steps to minimize the presence of mercury in scrap from end-of-life vehicles. In regard to the commenter's question regarding estimates of the recovery rate, the 80 percent minimum recovery rate is a goal that all parties to the MOU agreed to work toward. We recognize that 80 percent recovery will not be achieved in the first year or two; however, the parties to the MOU agreed to aim for collection of at least four million switches in the first 3 years of the NVMSRP and agreed to exceed this amount if possible. We believe that recovery of four million switches (approximately 4.4 tons of mercury at 1 gram per switch) in the first 3 years is a good beginning for working toward recovery of 80 percent of mercury switches. It is necessary to acknowledge that there will be an initial delay in many States that have recently joined the NVMSRP while individual dismantlers accumulate sufficient switches to make a shipment for recovery. It has been estimated that it may take from 6 to 12 months to fill a switch collection bucket (e.g., according to the ELVS website at http://www.elvsolutions.org,
switches are typically collected in 3.5 gallon buckets that can hold up to 450 pellets). Furthermore, the goal of removing 80 percent of the mercury switches is not the only criteria used to evaluate the success of a program. The Administrator can evaluate the success of an EPA-approved program at any time, identify States where improvements might be needed, recommend options for improving the program in a particular State, and if necessary, disapprove the program as implemented in a State from being used to demonstrate compliance with the rule based on an assessment of this performance. The evaluation would be based on progress reports submitted to the Administrator that provide the number of mercury switches removed, the estimated number of vehicles processed, and percent of mercury switches recovered. The Administrator can assess the information with respect to the program's goal for percent switch recovery and trends in recovery rates. For example, as the NVMSRP has ramped up, switch recovery rates have increased from 241,000 switches in 2006 to 602,000 through the first 10 months of 2007. Comment: One commenter stated that unlike the corresponding section of the EAF rule, Sec. 63.10885(b)(2) of the proposed foundries rule does not indicate or confirm that the NVMSRP is a program pre-approved by the EPA Administrator. The commenter states that this omission is counter to EPA's intentions as stated in section V.8.A of the MOU and does not provide a quick pathway for scrap providers to participate in a mercury switch removal program. The commenter stated that the final rule should provide pre-approval of the NVMSRP and pre-approval of existing State programs based on section VII.2.A.1.c of the MOU (which refers to existing State programs in its articulation of the NVMSRP's goal). The commenter argued that pre-approval of the eight existing State programs (which account for about 1,900 participants) would eliminate the need for scrap providers participating in those programs to obtain EPA's approval of their site-specific plans under Sec. 63.10885(b)(1). Response: We have revised the area source rule for iron and steel foundries to be consistent with the rule for EAF steelmaking by adding language confirming that the NVMSRP is a program pre-approved by the EPA Administrator. We are also identifying the mercury switch recovery program mandated by State law in Maine as an EPA-approved program because they submitted documentation that the requirements are equivalent to (or more stringent than) the approved national program. No other States made such requests or submitted information showing equivalency; consequently, we are not currently identifying other State programs as EPA-approved in the final rule. Comment: One commenter pointed to the provision in Sec. 63.10885(b)(2)(iii) which allows the Administrator to revoke approval for all or part of the NVMSRP based on review of the reported data. The commenter asked if the 90-day period between the revocation notice and the effective date of the revocation provides sufficient time for the Administrator to approve 100 site-specific plans under Sec. 63.10885(b)(1) and if there was a process in place for seeking reconsideration of the revocation. Response: The final rule requires the Administrator or delegated agency to review and approve the site-specific plan. This is what the proposed rule allowed because this authority was not among those listed in the rule as not being delegated. We believe the 90-day period is adequate for the approval process. The rule has no formal process for seeking reconsideration of revocation. Comment: One commenter stated that the requirement in Sec. 63.10885(b)(2)(iii) for the program sponsor to submit reports at least yearly should be consistent with the corresponding requirement in the proposed EAF rule. The commenter noted that the proposed foundries rule required that the report contain, among other data, the number of vehicles processed while the proposed EAF rule requires ``the estimated number of vehicles processed.'' The commenter requested correction of the proposed foundries rule to read ``the estimated number of vehicles processed''. Three commenters requested that EPA harmonize the language and content of the proposed foundries rule and the proposed EAF rule. Each of these commenters said that the proposed rule did not identify the NVMSRP as an [[Page 236]] approved program while the EAF proposed rule does identify the NVMSRP as an approved program. Two commenters added that the MOU suggests that the foundry rule should include and refer to the NVMSRP in its mercury requirements. One commenter objected to the requirement in Sec. 63.10885(b)(1)(iv) for a mercury switch removal goal of 80 percent because this requirement does not apply the goal to each provider as does the proposed EAF rule. The implication is that there can be different mercury switch removal standards for different scrap providers to foundries. This language has the potential to create inequalities. One commenter noted several differences between the proposed foundries rule and the proposed EAF rule including different heading, different phrasing of the same requirements, and specific differences in requirements and definitions. Response: We agree that the pollution prevention requirements for mercury for iron and steel foundries should be consistent with those for EAF steelmaking facilities because the technology for controlling mercury emissions (i.e., mercury switch removal from end-of-life vehicles) is the same for both source categories. We are making revisions to the final rule to ensure they are consistent. Changes to the site-specific plan for mercury switches include adding references to Resource Conservation and Recovery Act (RCRA) requirements and corrective action, requiring an 80 percent goal for each scrap provider and a separate semiannual report. Changes to the option for approved mercury programs include statements that the NVMSRP and the State of Maine program for mercury switch removal are EPA-approved programs, requiring reporting of an estimate of the number of vehicles processed instead of the number of vehicles processed, adding parenthetical mention of RCRA requirements, and adding a database requirement for progress reports. We have revised Sec. 63.10905 (Who implements and enforces this subpart?) to remove the phrase ``in addition to EPA'' and make the list of nontransferable authorities the same in both rules. We have also revised Sec. 63.10906 (What definitions apply to this subpart?) to add definitions applicable to the mercury switch removal program. Comment: Fifteen commenters stated that it is technically and economically unviable for small foundries to implement a site-specific plan for mercury switch removal that meets the proposed rule requirements. Also, small foundries do not have significant buying power to push suppliers to implement an EPA-approved mercury switch removal program, according to the commenters. While the commenters support the mercury switch removal efforts, they believe that the proposed rule requirements are unnecessarily onerous for foundries. One commenter stated they would support the mercury switch removal provisions once 80 percent of scrap dealers are registered in the Federal program. Response: Only foundries that purchase shredded motor vehicle scrap from non-program participants are required to prepare a site-specific plan. Most of the smaller area source foundries do not use shredded motor vehicle scrap, so they would not be required to prepare a site- specific plan for mercury switch removal. Furthermore, as indicated previously, we are providing area source foundries 2 years to comply with the mercury switch removal program specifically because area source foundries purchase much smaller quantities of scrap compared to EAF steel mills. By providing this additional compliance time, we believe that the NVMSRP will be sufficiently mature that area source foundries will be able to purchase motor vehicle scrap from participants of the program. Therefore, very few area source foundries will need to prepare a site-specific plan for mercury switch removal as a consequence of this final rule. Based on our analysis, we do not expect any foundries to incur a significant adverse economic impact as a result of the mercury switch removal requirements in this final rule. The commenters provided no additional information on the specific requirements they claim to be ``unnecessarily onerous.'' Consequently, we made no direct revisions to the requirements for the site-specific plan, if it is selected as the compliance option. Comment: One commenter noted that scrap supply has been very tight and the costs have doubled over the past year. Another commenter estimated that eliminating shredded auto scrap could cost the commenter's foundries approximately $4 million per year. Response: We understand that the price of scrap has increased over the past few years; however, the past increase and any future changes in price will not be affected in any significant way by the rule requirements for mercury switch removal. We expect most facilities will comply by participating in the NVMSRP and purchasing scrap only from scrap providers who are also participants. This program is independently funded and administered by several stakeholders. Consequently, there is no reason for the commenter to eliminate shredded automobile scrap. Comment: One commenter stated the corrective action requirements present significant obstacles to getting reasonable site-specific plans approved. The commenter also said that what constitutes an acceptable plan will vary by State and region, resulting in uneven regulatory burden and unfair competitive advantages. Response: Corrective actions are an important component of the site-specific plan to ensure that scrap providers are removing mercury switches. Corrective actions are not unique to the area source rule in that iron and steel foundries impose specifications on scrap related to quality and safety, and facilities take corrective actions when scrap shipments do not meet these specifications. The Administrator or delegated authority is the appropriate entity for review and approval of these plans, and the rule provides a clear description of the requirements for the plans that can be used as criteria for approval or disapproval. Comment: Sixteen commenters stated that the mercury switch removal requirements should not apply to automotive scrap, such as brake rotors and pump housings, that do not contain mercury switches. Two commenters recommended that EPA clarify the type of scrap subject to the metallic scrap requirements by describing it as ``shredded auto bodies'' or ``post-consumer automotive body scrap.'' One commenter requested specific exemptions from the mercury switch requirements for foundries that melt only pre-consumer scrap or that the rule be written to apply to only those melting recycled auto bodies. One commenter requested that the proposed rule include a fourth option that specifically excludes scrap that does not come in contact with mercury from the mercury switch removal provisions. Response: We have added a definition of the term ``motor vehicles scrap'' to the final rule. ``Motor vehicle scrap'' means vehicle or automobile bodies, including automobile body hulks, that have been processed through a shredder. This definition does not include automobile manufacturing bundles or miscellaneous vehicle parts such as wheels, bumpers, or other components that do not contain mercury switches. We have also clarified the rule by adding provisions specific to scrap that does not contain motor vehicle scrap. The final rule requires that for each scrap provider, contract, or shipment, the foundry must procure all scrap that does not contain [[Page 237]] motor vehicle scrap according to the requirements in Sec. 63.10885(b)(4) of the final rule. Section 63.10885(b)(4) requires the owner or operator to certify in the notification of compliance status that the scrap used at the foundry does not contain motor vehicle scrap and to keep records to document the certification. Comment: Four commenters stated other products that contain mercury beside automotive switches are included in the scrap metal used by foundries and should be covered by the mercury requirements. Three of the commenters said that components in household and commercial appliances, sump and bilge pumps, heating and air conditioning units, and industrial equipment (e.g., tilt switches, thermometers, flame sensors, float sensors, relays, switches, barometers, manometers, floats, and other types of sensing and control equipment) also contain mercury and should be included in a removal program. This could be done by expansion of the NVMSRP or through the establishment and funding by mercury product manufacturers and the steelmaking sector and/or collection programs targeting other products that contain mercury. One commenter stated that the proposed rule should be expanded to require the removal of all automotive switches, not just 80 percent of convenience light switches. Another commenter stated that the rule should expand the scope of the switch program to include any original equipment or aftermarket mercury tilt switch installed in a vehicle and used in convenience lighting, anti-lock braking systems (ABS) sensors, security systems, active ride control, or other applications. Response: During the development of the proposed EAF rule, the EPA considered the removal of other mercury-containing components in automobiles, such as switches in ABS, and determined the option was not justified as a beyond-the floor standard (72 FR 53824). Similarly, we conclude that removal of these sources of mercury does not represent GACT for iron and steel foundries. These sensors are considerably more difficult and time consuming to remove than are convenience light switches, and they contribute much less mercury (e.g., 87 percent of the mercury in end-of-life vehicles comes from convenience light switches). The commenters provided no data or rationale to support that the removal of other sources of mercury from the scrap supply was economically and technologically feasible for foundries or that their removal should represent GACT. Most mercury-containing components in appliances were phased out several years ago, and any that might remain would contribute very little mercury to the scrap supply compared to switches in automobiles. While some ABS contained mercury sensors, these too have been phased out and were much less common than mercury convenience light switches. Comment: One commenter stated that the NVMSRP is a voluntary program in his State and not all suppliers participate. The final rule should require effective participation by suppliers or compliance with the national program. Two commenters stated that the requirements of the mercury switch removal program must be incorporated in air permits, and the provisions must be clearly understood and enforceable by air agencies and their counterparts in other media programs. If these provisions are not explicit in the program, the pollution prevention approach will not be effective. Two commenters claimed that EPA has not taken the NVMSRP into account when developing these regulations in the development of this rule as required by the MOU. The commenters stated that the MOU was written as a nonbinding contract for EPA and several industries for the voluntary removal and disposal of mercury switches while the requirements in the rule are mandatory. Response: Although participation in the NVMSRP is voluntary, the pollution prevention standard for mercury establishes clear mandatory requirements for the removal of mercury switches to reduce mercury emissions from iron and steel foundries. Participation in the NVMSRP is only one option for compliance, and although we expect it to be the preferred compliance approach, each of the compliance approaches have common requirements to ensure switch removal and to provide an accounting of the number of switches removed and number of vehicles processed. The number of scrap providers participating in the NVMSRP has increased steadily since its inception, and as the area source rules for iron and steel foundries and EAF steelmaking are implemented, there will be additional incentives for many more scrap providers to participate to maintain their customer base. The rule requirements are explicit and should be clearly understood and enforceable by air agencies. Although the final rule exempts facilities that do not have a title V permit from the requirement to obtain a permit for the purposes of this rule, sources that already have a title V permit generally must include the requirements of this rule through a permit reopening or at renewal according to the requirements of 40 CFR part 70 and the title V permit program. Comment: One commenter stated that EPA must address ways to encourage or require mercury removal from scrap destined for export. Response: This area source rule addresses mercury in scrap destined for iron and steel foundries, and removal of mercury from scrap destined for export in not within the scope of the rule. However, we expect that the NVMSRP and State programs for mercury switch removal will result in the reduction in mercury in scrap for all users, including scrap that is exported. Comment: One commenter recommended that a sunset clause be added to the mercury switch removal requirements as mercury switches have been phased out of new automobiles. Response: Our information indicates that there is a 10-year supply of end-of-life vehicles that may contain mercury switches. Consequently, we do not think it is appropriate to add a sunset provision. However, review of the mercury requirements will be appropriate when the 8-year review of the standard is conducted. Comment: One commenter stated that the requirement to inspect the scrap poses a safety risk to the personnel inspecting the scrap. Response: Our information indicates that many facilities already inspect incoming scrap and have established procedures for doing so safely. Comment: One commenter stated that it is inappropriate to direct that every recycling facility should be removing the same amount of switches because there is no mechanism that can accurately gauge if facilities are removing the maximum number of switches. The commenter explained that a facility can be removing only 10 switches per month and be maximizing their removal while another facility can be removing 1,000 switches per month and only removing a portion of available switches based on the age and origin of the vehicles handled by the facility. Attempting to determine the recovery rate necessitates having both the number of switches recovered and the total number of vehicles processed but the number of vehicles processed is confidential business information (CBI). The commenter stated that the rate could vary from facility to facility and not be indicative of the facilities level of participation in an approved program. [[Page 238]] Another commenter said that the requirements in Sec. 63.10885(b)(1)(ii)(C), (b)(1)(iii), and (b)(1)(v) may require scrap providers to divulge CBI or to provide sensitive information to foundry operators to comply. Response: The NVMSRP does not require that facilities remove the same number of switches. There are two key statistics in determining the recovery rate of mercury switches: the number of switches removed and the number of vehicles processed. This information is essential in determining the progress towards meeting the recovery goal of 80 percent. The percent of switches recovered (the capture rate as defined in the MOU) is the number of mercury switches removed from end-of-life vehicles divided by the total mercury switch population in end-of-life vehicles in a given time period (e.g., each year of the program) times 100. Furthermore, the 80 percent goal recognizes that the total mercury switch population is dependent on the age of the vehicles processed. This approach accounts for the differences in the capacity or processing rate of different facilities, which is the subject of the comment. It is in the interest of both the scrap provider and foundry operator to provide the information required by the rule and to establish procedures if necessary to protect confidential information. The requirements in the final rule include: (1) Periodic inspections or other means of corroboration to ensure that scrap providers and dismantlers are implementing appropriate steps to remove mercury switches; (2) estimates of the number of switches removed; and (3) semiannual progress reports that provide the number of switches or weight of mercury removed, number of vehicles processed, estimate of the percent of switches removed, and certification of proper disposal of the switches. This information is an essential monitoring component of the rule to measure the effectiveness of a facility's pollution prevention program. The information on number of vehicles processed can be aggregated for a facility if it is important not to reveal the number of vehicles processed by a given scrap provider. We do not see nor did the commenter identify exactly what component of the requested information would be CBI; however, if the case can be made that the information is not emissions data and there is CBI involved, EPA and the permitting authorities have established procedures for managing and safeguarding CBI and will, of course, utilize them. Comment: One commenter stated that in Sec. 63.10885(b)(1)(i) and (ii), the requirement for removal of mercury switches from vehicle bodies used to make scrap does not seem to recognize the possibility of inaccessible switches. The commenter suggests replacing ``mercury switches'' with ``accessible mercury switches.'' Response: We have defined mercury switch to include only those switches that are part of a convenience light switch mechanism. Our information indicates that these switches are accessible and are easily removed, and it is important to the success of the pollution prevention program that they be removed. Consequently, we are not adding the additional requirement that they be ``accessible,'' which would introduce additional uncertainty because of the judgment that must be made as to what is accessible. Comment: One commenter stated the requirement in Sec. 63.10885(b)(1)(B) for assurances from scrap providers that scrap meets specifications does not seem to allow for uncertainty or error. The commenter suggested that the language read ``Provisions for obtaining assurance from scrap providers that to the best of their knowledge, motor vehicle scrap provided to the facility meets the scrap specification''. Response: We disagree that the change recommended by the commenter is necessary because the phrase ``to the best of their knowledge'' is subjective and provides no improvement. The foundry owner or operator must obtain assurance to their satisfaction that the scrap meets specifications. Comment: One commenter said the requirement in Sec. 63.10885(b)(1)(ii)(C) for a means of corroboration to ensure that scrap providers and dismantlers are implementing appropriate steps to minimize the presence of mercury switches in motor vehicle scrap should be replaced with appropriate steps ``to encourage the removal of accessible mercury switches from motor vehicles to be shredded''. Response: We disagree because corroboration to ensure that scrap providers and dismantlers are implementing appropriate steps to minimize the presence of mercury switches in motor vehicle scrap is necessary to ensure the effectiveness and credibility of the pollution prevention requirements. Comment: One commenter asked what is meant by taking corrective action in Sec. 63.10885(b)(1)(ii)(D) since the nonconforming actions are committed by different parties? Does a scrap provider have any recourse when corrective actions are deemed necessary by a foundry? One commenter stated that any corrective action plan elements approved by the Administrator should reference MOU sections V.3.H and V.7.C, which defines good faith participation as ``the actual removal of switches or the implementation of source control programs to assure removal of switches prior to receipt''. Response: The procedures for taking corrective actions must be described by the owner or operator in the site-specific plan, and these procedures may vary depending on the type of scrap, scrap provider, and other factors, some of which may be unique to the facility. The concept is not a new one because foundry owners or operators have historically taken corrective actions when scrap does not meet their specifications. The area source rule places no direct requirements on the scrap provider; however, we expect that the scrap provider would work with customers (the iron and steel foundry owners or operators) to resolve any questions of recourse with respect to corrective actions. Comment: One commenter objected to the requirement in Sec. 63.10885(b)(1)(iii), which effectively compels scrap providers to collect switch removal information from all upstream sources of end-of- life vehicles. The commenter stated that to impose such burdensome requirements on the suppliers of the regulated entity far exceeds the Agency's regulatory authority, poses CBI concerns, and imposes excessive paperwork and recordkeeping requirements on the scrap provider. These comments also apply to Sec. 63.10885(b)(1)(v) because the requirements are likely to compel scrap providers to provide information to foundry operators to comply. Another commenter stated that it is unreasonable to burden foundries to ensure scrap providers and dismantlers are implementing appropriate steps to remove and dispose of mercury switches. The commenter also noted that foundries would not be able to obtain information on the number of mercury switches or weight of mercury removed because most foundries use scrap brokers and are a step or two removed from the dismantlers. Another commenter stated that it is inappropriate for EPA to regulate end-users and that EPA should directly regulate the scrap sellers and processors with respect to mercury switch removal. Response: The burden imposed by the Agency is on the foundry owner or operator to obtain switch removal information because it is a critical [[Page 239]] monitoring component of the rule. The owner or operator in turn must require this information from scrap providers, and if such information is not obtained, the owner or operator could be found in violation of the rule. It is in the interest of the scrap provider, the owner or operator, the public health, and the environment that such information be obtained to ensure that mercury releases to the environment are reduced by the removal of mercury switches. Comment: One commenter objected to the credit allowed in Sec. 63.0085(b)(1)(iv) for calculating the 80 percent mercury switch removal goal for site-specific plans. The commenter objected to the credit because it allows counting of mercury removed from components other than convenience lighting while the approved plan requires only the removal of mercury switches from convenience lighting. The commenter stated that the provision is not consistent with the MOU, which states that only mercury switches used for convenience lighting will be counted for purposes of measuring program performance. The commenter argued that site-specific plans should not be held to a higher standard than the NVMSRP. Response: While it is true that only switches from convenience lighting apply to the 80 percent minimum goal of the NVMSRP, ELVS accepts switches from anti-lock brake systems and the automobile or scrap recyclers that remove them are paid the incentive fee of $1.00 per switch. We believe that this provides an incentive to remove switches from anti-lock brake systems as well as for convenience lighting. In the requirements for site-specific plans, other sources of mercury are included in determining the 80 percent goal, such as in anti-lock brake systems, security systems, active ride control, and other applications. Inclusion of these other components in the site- specific programs provides an incentive for their removal. These mercury-containing components contribute less mercury (13 percent compared to 87 percent from convenience light switches), and they are more difficult to locate, identify, and remove. Mercury-containing components in anti-lock brake systems will be the components other than convenience light switches that are most often removed. The removal of these components requires removing the rear seat and dismantling the anti-lock brake system. We believe that if a dismantler chooses to take the time to remove and recover mercury components from anti-lock brake systems or other components, they should receive some type of credit for doing so, thus they can include them in their 80 percent minimum recovery goal. C. Requirements for Large Iron and Steel Foundries 1. Subcategorization of Metal Melting Furnaces Comment: Five commenters stated that EPA should also consider a 5 ton per hour (tph) melting capacity threshold for each EIF as the most appropriate way to minimize impacts on small area source foundries if the per furnace basis is used. Another commenter recommended a size threshold 5 tph for EIF if the per furnace basis was used. In addition, two commenters opposed the proposed rule and asked EPA to reconsider the applicability to melting processes or allowable emissions. As discussed in section IV.F of this preamble, several commenters stated that control of metal melting furnaces and/or EIF was not cost-effective. Response: We considered EIF-specific thresholds, but concluded that these were not appropriate for several reasons. First, as described previously, we increased the size threshold for large area source foundries to 20,000 tpy. The increased size threshold more effectively reduced burden to the smaller foundries than an EIF-specific cut-off. Second, we could not identify a strong rationale as to why smaller induction furnaces at foundries with production greater than 20,000 tpy should be subcategorized. A significant portion of EIFs at foundries greater than 20,000 tpy metal melting capacity were controlled, regardless of the EIF size. Finally, emissions from EIF furnaces are much better correlated with the total melt production than the size of the furnace. Smaller furnaces can have higher emissions than larger furnaces if they process more metal. Therefore, we determined that an EIF-specific threshold was not appropriate and is not included in this final rule. 2. Emission Standards Comment: One commenter stated that because area source standards will not be subject to residual risk standards, it is important to regulate emissions of particulate matter (PM) and HAP as well as possible under this rule. Response: We agree. As discussed in the proposal preamble, we evaluated more stringent emission limits, but found that these were not cost-effective for existing sources. Although we increased the size threshold in this final rule, we rejected higher thresholds or additional EIF-specific thresholds specifically to regulate emissions of PM and HAP as well as possible, while considering the costs of these regulations. Comment: One commenter noted that in the proposal preamble EPA refers to the emission limit as pounds per ton of metal melted, but the regulatory language in Sec. 63.10895(b)(1) refers to ``per ton of metal charged.'' The commenter requested clarification as to EPA's intent, and recommended the use of ``per ton metal charged'' as the charge into the furnace is more amenable to measurement. Response: We agree with the commenter. We intended to require foundries to measure and record the tons of metal charged to the furnace as indicated in the proposed regulatory language. Although we commonly refer to this as tons of metal melted, we acknowledge that there is a subtle difference and we have tried to consistently refer to ``tons metal charged'' as the basis of the standards in this final rule and preamble. Comment: One commenter stated that the PM emissions limit (0.8 pound of PM per ton of metal charged) is too low because some existing wet scrubbers cannot achieve this emission limit and because the alternatives to improve the emission performance of these systems would be very costly. Response: The available data clearly indicate that the 0.8 lb/ton emission limit is easily achievable with a well performing wet scrubber or baghouse control system. The available data also indicated that a small percentage of cupola wet scrubbers would need to be upgraded in order to meet this emission limit. We have considered the costs of these upgrades and determined that these upgrades are reasonable for the large area source foundries. GACT need not be an emission limit that all wet scrubbers can meet, regardless of their design or performance. We selected the 0.8 lb/ton PM limit as GACT because this level of performance represented the typical performance of the generally available control technologies used to reduce PM and metal HAP emissions from foundry melting furnaces at reasonable cost. Comment: One commenter noted that Sec. 63.10895(a) requires ``each'' melting furnace to operate a capture system, but Sec. 63.10898(e)(3) provides default emission factors for uncontrolled EIF not equipped with a capture system for use in emissions averaging calculation. The commenter requested clarification that capture and collection systems are not required for ``each'' melting furnace. Response: We agree. We have revised the language in Sec. 63.10895(a) of the proposed rule and Sec. 63.10895(b) of the [[Page 240]] final rule to indicate that ``You must operate a capture and collection system for each metal melting furnace at a new or existing iron and steel foundry unless that furnace is specifically uncontrolled as part of an emissions averaging group.'' Comment: One commenter requested elaboration on EPA's intent when referencing ``accepted engineering standards published by ACGIH'' for capture systems. Response: Accepted engineering standards such as design procedures for local exhaust hoods and exhaust systems are included in each annual edition of Industrial Ventilation: A Manual of Recommended Practice published by the American Conference of Governmental Industrial Hygienists (ACGIH). The purpose of the rule requirement is to require foundries to install and operate capture systems using appropriate design factors for the hood and furnace emissions so that the capture systems will operate properly. Comment: One commenter said that he assumed the PM emissions limit applies only to melting (SCC 30400303), but it would be impossible to segregate these emissions from charge handling and inoculation (SCC 30400315 and 30400310), and stated that this issue requires further evaluation. Response: In general, all activities that are performed in the metal melting furnaces are subject to the emission limits. These include, but are not limited to: Charging, melting, alloying, refining, slagging, and tapping. We have provided more detail regarding the operating conditions for the performance tests to clarify this issue. Generally, inoculation is performed in the transfer ladle and transfer ladle operations are subject only to the building opacity limit. However, if inoculation occurs in the melting furnace, then inoculation emissions are subject to the overall furnace emission limit. Comment: Two commenters argued that the proposed opacity limit is more restrictive than the major source rule since it does not include an allowance for one 6-minute period per hour of up to 30 percent opacity. The commenters stated that the area source rule should not be more stringent than the major source foundry rule, which was based on MACT, and recommended that EPA include, at a minimum, an allowance for one 6-minute period per hour of up to 30 percent opacity. Another commenter stated that the opacity limit should not be based on MACT, but on GACT, which the commenter believes would be 30 percent or 40 percent average opacity. Response: We agree that the proposed opacity limit should not be more stringent than the corresponding MACT standard. We reviewed the State and local agency opacity requirements for selected States with significant foundry populations. There are several States that require 20 percent opacity, but nearly all of these State programs provide an allowance for one 6-minute period per hour; allowances provided in different State regulations include: 27, 30, 40 and 60 percent opacity limits. Although we do not agree with the second commenter that a limit of 30 to 40 percent opacity limit would represent GACT, we do agree that one 6-minute period per hour of up to 30 percent opacity reflects GACT for area source foundries. In response to the commenters' concerns, we have revised the proposed opacity limit to include the allowance for one 6-minute period per hour of up to 30 percent opacity. 3. Monitoring Comment: Eighteen commenters said that EPA should allow visible emissions (VE) observations to document compliance with the fugitive emissions limit in order to reduce burden on small foundries. One of the commenters stated that EPA underestimated the burden associated with Method 9 observations. The commenters recommended that if visible emissions were observed, a Method 9 test could be conducted to demonstrate compliance with the opacity limit. Another commenter stated that EPA should require VE observations on a weekly basis (noncertified individual would be acceptable under certain conditions) in addition to the semiannual Method 9 readings because weekly observations would be more effective for compliance than a certified reading occurring twice a year. Response: We agree with the commenters that allowing VE observations by Method 22 (40 CFR part 60, appendix A-7), with a subsequent test by Method 9 (40 CFR part 60, appendix A-4) is a reasonable alternative for determining compliance with the opacity limit for fugitive emissions from foundry operations and may reduce compliance costs. In response, we have revised Table 1 of the final rule to include such an alternative. The alternative allows foundries to conduct the semiannual performance tests using Method 22 instead of Method 9. The results of the Method 22 test demonstrate compliance with the opacity limit if no visible emissions occur for at least 90 percent of the 1-hour observation period. If visible fugitive emissions from foundry operations occur for more than 10 percent of the Method 22 observation period (i.e., more than a cumulative 6 minutes of the 1- hour period), the owner or operator must conduct a Method 9 test as soon as possible, but no later than 15 days after the Method 22 test to demonstrate compliance with the opacity limit. Comment: One commenter stated that the requirement to install and maintain a continuous parameter monitoring system (CPMS) is potentially costly and unnecessary. The commenter suggested that visual checks and manual recording of the operating parameter values once per shift as used in existing title V permits be allowed instead of a CPMS. Response: This commenter objected to CPMS as too costly and unnecessary. As discussed below, other commenters objected to the proposed operating parameters for baghouses, wet scrubbers, and electrostatic precipitators (ESPs) that would be monitored. In response to these comments, we have revised the proposed monitoring provisions for PM control devices. For PM control devices at existing affected sources, the final rule requires the owner or operator to conduct initial and periodic inspections of each PM control device. These inspection requirements are included in many title V permits for PM control devices. We have deleted the proposed inspection and monitoring requirements for fabric filters that required pressure drop monitoring of baghouses. Bag leak detection systems are required for fabric filters used at new affected sources. The owner or operator of an existing affected source may choose to comply with the requirements for bag leak detection systems or the new inspection requirements. We have also revised the proposed monitoring requirements for wet scrubbers and ESP to apply to new affected sources instead of existing affected sources. The final rule requires CPMS to measure the 3-hour pressure drop and water flow rate for each wet scrubber. For ESP, the owner or operator must maintain the voltage and secondary current (or total power output) to the control device at or above the level established during the initial or subsequent performance test. Table 2 of the final rule requires the operating limit for a wet scrubber to be based on the average pressure drop and average scrubber water flow rate measured during the performance test; for an ESP, the operating limit is to be based on the minimum hourly average measurements. Comment: Four commenters objected to basing the baghouse pressure drop [[Page 241]] operating limit on the pressure drop range observed during the performance test. The commenters stated that baghouses can operate effectively over a range of pressure drops and a single test is too short to encounter the full range of pressure drops that are normally encountered. The commenters recommended using manufacturer's recommended operating ranges or historical performance for the baghouse pressure drop operating limits. One commenter suggested volumetric flow rate or static pressure upstream of the baghouse may be more appropriate operating parameters to monitor. Four commenters objected to the baghouse pressure drop operating limit being determined across each baghouse cell. The commenters recommended using the pressure drop across the entire baghouse. One commenter said that baghouse pressure drop varies with overall building ventilation and balancing air flow in the foundry is a balancing act, and varies with the outdoor temperature. The commenter stated that it is impossible to capture these scenarios during a performance test. Response: We agree with the commenters that pressure drop is not a good indicator of baghouse performance. The requirement for pressure drop monitoring originated from baghouse maintenance requirements included in title V permits. As discussed above, we have replaced these provisions in the proposed rule with other inspection and maintenance requirements. Comment: Three commenters objected to basing the wet scrubber pressure drop operating limit on the pressure drop range observed during the performance test for the same reasons as their comments on baghouse pressure drop operating limits. The commenters argued that like baghouses, scrubbers can operate effectively over a range of pressure drops and a single test is too short to encounter the full range of pressure drops that are normally encountered. The commenters recommended using manufacturer's recommendations or operation history for setting the operating limits. One commenter extended these comments to electrostatic precipitators (ESPs). Response: We disagree with the commenters. In performance tests conducted on a cupola wet scrubber, we noted a strong (inverse) correlation between the wet scrubber pressure drop and the PM emissions from the control system. Relatively small changes in the pressure drop altered the emissions by a factor of two. A foundry may always re-test the control system at new (lower) operating limits if the operating limits determined during the initial test are too restrictive, but the foundry must demonstrate that they can meet the emissions limit at that lower operating limit. That said, we recognize that many existing foundries are not equipped with CPMS. Therefore, we have revised the monitoring requirements for existing sources, but we retain the requirements for CPMS for new sources. Comment: One commenter stated that new sources should not be required to install bag leak detection systems, but should be allowed to monitor their baghouses similar to existing sources. The commenter requested further explanation on EPA's position on this issue. Response: New sources should be able to employ improved monitoring technology. Wherever possible, we request that new sources use automated systems that will measure and record operating parameters (or emissions). Over time, we expect that this approach will improve monitoring technology and reduce costs for existing and new sources. 4. Operation and Maintenance Requirements Comment: Two commenters stated that EPA should eliminate the requirement to have a written operation and maintenance (O&M) plan because writing the plan is an unnecessary burden (in the range of $2,000 to $2,500 for a small facility, according to the commenters) with little environmental benefit. According to the commenters, monitoring and recording operating parameters are sufficient to demonstrate compliance and this can be done without a written plan. Response: We have reduced the burden associated with preparation of the O&M plan by revising the monitoring requirements. Several portions of the O&M plan requirements are related to the operation and maintenance of bag leak detection systems and CPMS. The final rule requires these monitoring systems only for new sources. We continue to believe that an O&M plan provides EPA and foundry representatives with a single source of information on monitoring and maintenance responsibilities. In the development of the proposed requirements for the O&M plan, we included many of the industry comments and recommendations for requirements that were reasonable for area source facilities. Comment: One commenter requested that EPA expand the O&M plan to include actions to be taken in the event of an opacity exceedance. If after a specified time with no opacity exceedances, the facility could be allowed to make weekly observations with a non-certified individual instead of Method 9 readings twice a year. Response: If the foundry exceeds the opacity limit, then that foundry is out of compliance with the emissions limit and could be subject to enforcement actions. Although we considered more frequent visible emission observations, the visible emission observations could not be tied to the opacity limit. Therefore, if visible emissions were observed, an opacity observation would be needed to verify that the visible emissions did not exceed the opacity limit. This would greatly increase the burden associated with the opacity requirements, which many commenters suggested were already too burdensome. A foundry may use weekly visible emission observations as means to ensure compliance with the opacity limit if they choose, and the foundry may include such observations and corrective actions to be taken within their O&M plan if they choose. Comment: Three commenters stated that the daily check of the compressed air supply for a pulse-jet baghouse was not necessary. The commenters argued that static pressure exceeding allowable ranges would be a better indicator of a problem and the need for corrective action measures. Three commenters stated that the monthly visual bag inspections are not necessary, and suggested that semi-annual inspections would be sufficient. Similarly, the commenters recommended that the quarterly inspection of baghouse physical integrity and fans is unnecessary and that semi-annual inspections would be sufficient. Response: The commenters' concerns have been addressed because we have removed the baghouse inspection and maintenance requirements from the proposed rule. These requirements have been replaced with more general inspection and maintenance requirements for PM control devices (baghouses, scrubbers, and electrostatic precipitators). Comment: One commenter requested guidance on what an acceptable alarm set point is when using a continuous bag leak detection system. Response: The alarm set point will vary according to the design of the equipment. For additional information on bag leak detection systems that operate on the triboelectric effect, we encourage the commenter to review ``Fabric Filter Bag Leak Detection Guidance'', Environmental Protection Agency, Office of Air Quality Planning and Standards, September 1997, EPA- [[Page 242]] 454/R-98-015, National Technical Information Service (NTIS) publication PM98164676. This document is available from the NTIS, 5385 Port Royal Road, Springfield, VA 22161. This document also may be available on the TTN at http://www.epa.gov/ttn/emc/cem.html. Comment: One commenter stated that, while 30 days may be sufficient time to implement minor repairs (i.e., time between inspections), some repairs may require more time (e.g., to solicit contract bids, perform engineering analysis, and install equipment). The commenter requested that the rule allow additional time for foundries to complete necessary repairs. Response: In response to the commenter's concern, we have added additional time to implement repairs to capture systems. The final rule requires that repairs be completed as soon as practicable, but no later than 90 days. Comment: One commenter stated that capture system requirements should be included in the O&M plan because PM build-up in capture systems, particularly for batch processes such as EIFs, could significantly reduce capture efficiency. The commenter recommended that EPA include capture system in the inspections required for control systems. Specifically, Sec. 63.10985(a) be revised to require ``* * * Each capture and collection system must meet and maintain * * * ''; Sec. 63.10896(a) be revised to require an O&M plan `` * * * for each capture and control device * * * ''; add a paragraph Sec. 63.10896(a)(6) to require ``Information on the inspection of the capture system components, including, but not limited to, emission intake devices, hoods, enclosures, ductwork, dampers, manifolds, plenums, and fans, to assure there is not material build-up impeding flow to the control device.''; and revising Sec. 63.10897(c)(8) to ``Inspect emission intake devices, hoods, enclosures, ductwork, dampers, manifolds, plenums, and fans for wear.'' Response: We appreciate the commenter's suggestions. While capture systems have been included in the O&M plans for major source rules, we have not included requirements for capture systems in the area source rule as one way of reducing compliance costs for area source foundries. In addition, the suggested revisions to Sec. 63.10897(c)(8) are not needed as inspection requirements for the capture system are already specified in Sec. 63.10897(e). 5. Testing Requirements Comment: One commenter requested clarification
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