WPC pE只 _6EY泹e]EbHӾRtƸ!Ve` c]_uX]Ou6BIZ]W6#\n{Gg+ vT?Ldx?4޽]5h;&j*lc5:g3_ 솹ƚjwn\HB+oԒ2M w0p&Oњ*lIx]Lᩒuca' r$ `Gn:~w267CU+*8fB~>' RJMr1x<[ɧ4p\O1b~$]H0>Mh9H$S(c=wKdLxg&AOlJt!7ˆn9ȑk%-g A:"zjF1:@dxq= 0(V 0C~ 0= 03 B1 B*N Bx B B BU2 %$ D+ AQf D+, AMW  D+j AI  U. U: UBN w@ 4  UF UF9 0D D3 UF b< 0K@ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @  0DQ 0D D/($($    ($    ( $   d&0 d d d dP Pd d<  p`+CourierTT X Level 1 Level 2 Level 3 Level 4 Level 5)dd9: ;<C<< C Level 1 Level 2 Level 3 Level 4 Level 5)dd $!A<< C Level 1 Level 2 Level 3 Level 4 Level 5)ddAC<  p`ArialTT<  p`+"Courier NewTT<  p`*Times New RomanTT PE efF$3|x<9Z .Courier New Regular<9Z .Courier New Regular(3?A$ !  'dxd< 9Z .Courier New Regular!( $ Figure  1  Level 1Level 2Level 3Level 4Level 5(3?A$ !  ($$   1   ' dxd       TRY3'3'3' Letter3'TXX! X! XXX XHXX  񀀀UNITEDSTATESENVIRONMENTALPROTECTIONAGENCY   $  $ + 񀀀WASHINGTON,D.C.20460X=H$ h $ : qSqX=! .h!Ӏ,,HqqSOctober3,1997#qSqHI#Ԁ , Ѐ^3 ^qqSOFFICEOF  ЀENFORCEMENTAND̀COMPLIANCEASSURANCE#qSq ^^37#   W.  ^3 ^qqS  ^ ^ ^^3&B & ^^WTheHonorableBarbaraCubin    UnitedStatesHouseofRepresentativesWashington,D.C.205155001DearCongresswomanCubin: e eThisisinresponsetoyourJune26,1997,letterregardinghowtheUnitedStatesEnvironmentalProtectionAgency(EPA)regulatesfugitiveemissionsfromcoalunloadingatcoalpreparationplants.IregretthattheAgencywasunabletoreplytoyourrequestmorepromptly.TheissuesyouraisedrequiredagooddealofresearchandconsiderationwithintheAgency. e ee eWeunderstandthatthisissuewasoriginallybroughttoyourattentionthroughcorrespondencesentfromtheARCOCoalCompanytotheNationalMiningAssociation(NMA),onJuly12,1995,regardinganEPARegionVIIIletteronfugitiveemissionsfromcoalunloading.RegionVIIIconcludedthatcoalunloadingisnotregulatedbytheNewSourcePerformanceStandardforcoalpreparationplants(NSPSSubpartY).TheRegionalsoconcluded,however,thatfugitiveemissionsfromcoaldumpingatthesiteofacoalpreparationplantmustbecountedindeterminingwhetheracoalpreparationplantisamajorsourcesubjecttoTitleVpermittingrequirements. e ee eWehaveconductedanindependentreviewofboththeissuesaddressedintheRegionVIIIletter.Wehaveconcluded,onthebasisofTitle&A& &&BH&&AVf H&B & foftheCleanAir 0" Act,itsimplementingregulations,andotherrelatedprovisions,thatfugitiveemissionsfromcoaldumpingmustbeincludedinadeterminationofwhetheracoalpreparationplantisamajorsourcesubjecttoTitleVpermittingrequirements.Therefore,weagreewithRegionVIII'sconclusionthat&A& &&B&B &&&AtheTitleVissue. !& However,wedonotagreewithRegionVIII'sconclusionthat&A& &&BqSq&&Aq$qqqS&B &qq$coalunloadingis "'  eenotregulatedbyFSPSSubpartY.BasedonourreadingofNSPSSubpartYandassociateddocuments,weconcludethatcoalunloadingthatinvolvesconveyingcoal&A& &&BqSq&&Aq$qqqS&B &qq$tocoalplantmachineryissubjecttotheNSPS. ^%!*  &A& &&B^3 ^&&A  X($. ! ! ^ ^ ^^3&B & ^^7EXdd7 ! _! _Thereasonsforourconclusionsarediscussedintheenclosedanalysis,whichshouldbeviewedasanintegralpartofthisresponse.ThisresponseprovidestheAgency'scurrentpositionandsupersedesRegionVIII'searlierletter,totheextentitisinconsistentwiththisresponse. _ __ _ThisresponsewascoordinatedwithRegionVIII,EPA'sOfficeofGeneralCounsel(OGC),andtheofficeofAirQualityPlanningandStandards(OAQPS)inResearchTrianglePark,NorthCarolina.AnyquestionsregardingthisresponseshouldbedirectedtoChrisOhofmystaffat(202)5647004. __̀Sincerely, &A& &&B&&A#N  &B &#N󀀀StevenA.Herman Z Enclosure   i &&B#7EXXdXd7 XXJ  Ӏ  ЀπSeptember11,1997! ^XXJ !ӀAnalysisRegardingRegulatoryStatusofFugitiveEmissionsFrom    CoalUnloadingatCoalPreparationPlants  ! v^! vThisanalysisaddressesthetreatmentoffugitiveemissionsfrom   coalunloadingatcoalpreparationplants.ThefirstquestioniswhethercoalunloadingisregulatedundertheNewSourcePerformanceStandard(NSPS)forcoalpreparationplants,40CFRPart60SubpartY.ThesecondquestioniswhetherfugitiveemissionsfromcoalunloadingmustbeincludedindeterminingwhethertheplantisamajorsourcesubjecttoTitleVpermittingrequirements.Inthisanalysis,weusetheterm coalunloading"toencompass"coaltruckdumpingand"coaltruckunloading,aswellasdumpingorunloadingfromtrains,barges,minecars,andconveyors. v  InaFebruary24,1995,lettertotheWyomingDepartmentofEnvironmentalQuality,signedbytheBranchChiefforAirPrograms,EPARegionVIIIconcludedthatcoalunloadingisnotregulatedbyNSPSSubpart(i.e.,isnotan"affectedfacility").RegionVIIIapproachedtheTitleVissuebyfirstdeterminingwhethercoalunloadingispartoftheNSPScoalpreparationplantsourcecategory.Havingdecidedthatcoalunloadingatthecoalpreparationplantsiteispartofthesourcecategory,RegionVIIIconcludedthatfugitiveemissionsfromcoalunloadingmustbeincludedindeterminingwhethertheplantisamajorsourcesubjecttoTitleVpermittingrequirements. vv vOurindependentreviewofNSPSSubpartYandassociateddocumentsleadsustoconcludethatcoalunloadingthatinvolvesconveyingcoaltoplantmachineryisregulatedunderSubpartY.Thus,wedisagreewiththeRegionVIIIlettertotheextentitsaysthatthistypeofcoalunloadingisnotanaffectedfacility.WeagreewithRegionVIII'sconclusionthatfugitiveemissionsfromcoalunloadingmustbeincludedindeterminingwhethertheplantisamajorsourcesubjecttoTitleVpermittingrequirements.However,therelevantTitleVregulationsandrelatedprovisionsindicatethattheanalysisshouldfocusonthe"source"ratherthanthe"sourcecategory."Inotherwords,thecentralquestionisnotwhethercoalunloadingiswithintheNSPssourcecategory.Rather,itiswhether (-)) coalunloadingatacoalpreparationplantispartofthesourcethatbelongstothissourcecategory. v! o?v!  Accordingly,thisanalysisprimarilyaddressestwoissues:$ ?o?$whethercoalunloadingisanaffectedfacilityunderNSPSSubpartY,andwhethercoalunloadingispartofthesourcebelongingtothecoalpreparationplantNSPSsourcecategory.Underlyingthesecondissueisthequestionofwhetherfugitiveemissionsassociatedwithcoalunloadingshouldbeincludedinmajorsourcedeterminations.! o?! oThequestionofwhetherfugitiveemissionsfromcoalunloadingshouldbeincludedinmajorsourcedeterminationshasimplicationsforpermittingrequirementsunderTitleVoftheCleanAirAct( CAAor"theAct").UnderthecurrentTitleVimplementingregulations,Statesmustrequiremajorsources"toobtainapermit.40CFRsection70.3."Majorsource,inturn,isdefinedas"anystationarysource(oranygroupofstationarysourcesthatarelocatedononeormorecontiguousoradjacentproperties,andareundercommoncontrolofthesameperson(orpersonsundercommoncontrol))belongingtoasinglemajorindustrialgrouping...thatisalsoamajorsourceundersection112oramajorstationarysourceundersection302orpartDofTitleIoftheAct.40CFRsection70.2.Relevanttotheanalysishereisthesection302(j)definitionofmajorstationarysourceasanystationarysourcethatemitsorhasthepotentialtoemit100tonsperyear(tpy)ormoreofanyairpollutant.Section302(j)alsoprovidesthatfugitiveemissionscounttowardsthe100tpythresholdasdeterminedbyEPAbyrule. o oo oPursuanttoCAAsection302(j),theEPAhasdeterminedbyrulethatfugitiveemission'scounttowardsthemajorsourcethresholdforallsourcesthatbelongtosourcecategoriesregulatedundertheNewSourcePerformanceStandards(NSPS)asofAugust7,1980.49PR43202,43209(October26,1984).BecausecoalpreparationplantsareregulatedbyanNSPS(40CFRpart60,SubpartY)whichwasproposedonOctober24,1974andpromulgatedonJanuary15,1976,fugitiveemissionsfromsourcesthatbelongtothecoalpreparationplantsourcecategorycounttowardsthisthreshold."Thus,ifcoalunloadingispartofthesourcebelongingtothecoalpreparationplantsourcecategory,thenfugitiveemissionsfromcoalunloadingmustbeincludedinthemajorsourcedetermination. o o (-)) %i,o,%#,,,,oԨ2##i,,2# ] ]AfteracarefulreviewofNSPSSubpartY,therelevantTitleV v regulations,andassociateddocuments,weconcludethat:1)CoalunloadingthatinvolvesconveyingcoaltoplantmachineryisanaffectedfacilityunderNSPSSubpartY;and2)Allcoalunloadingatacoalpreparationplantisapartofthesourcebelongingtothecoalpreparationplantsourcecategory.WealsodeterminethatallcoalunloadingatacoalpreparationplantfitswithintheNSPSsourcecategory.Finally,weconcludethatfugitiveemissionsfromcoalunloadingmustbecountedindeterminingwhetheracoalpreparationplantisamajorsourcesubjecttoTitleVpermittingrequirements.Thereasonsforourconclusionsarediscussedbelow.! ;]!  B]Issue1:  IscoalunloadinganaffectedfacilityunderNSPS *    SubpartY?  B! ]}! ]InNSPSSubpartY,severalemissionpointsareidentifiedandregulatedaspartofacoalpreparationplant.SubpartYliststhefollowingaffectedfacilities:thermaldryers,pneumaticcoalcleaningequipment(airtables),coalprocessingandconveyingequipment(includingbreakersandcrushers),coalstoragesystems,andcoaltransferandloadingsystems.Becausecoalunloadingisnotspecificallylisted,therelevantquestioniswhetheritiscoveredunderoneofthelistedaffectedfacilities. ]]EPAconcludesthatcoalunloadingthatinvolvesconveyingcoaltoplantmachineryfitswithinthedefinitionof"coalprocessingandconveyingequipment.40CFRsection66.251(g)defines"coalprocessingandconveyingequipmentas"anymachineryusedtoreducethesizeofcoalortoseparatecoalfromrefuse,andtheequipmentusedtoconveycoaltoorremovecoalandrefusefromthemachinery.Thisincludes,butisnotlimitedto,breakers,crushers,screens,andconveyorbelts."Thekeyphrasesare"theequipmentusedtoconveycoalto...machineryand butisnotlimitedto.Whilethe"equipment"involvedincoalunloadingvariesfromplanttoplant(thedefinitioniswrittenbroadlyenoughtoaccommodatethedifferences),whatisimportantisthattheequipmentperformthefunctionofconveying.Itshouldbenotedthatifthecoalis ]  ) && ]unloadedforthepurposeofstorage,thentheunloadingactivityisnotanaffectedfacilityunderNSPSSubpartY.Thecoalmustbedirectlyunloadedintoreceivingequipment,suchasahoppertobesubjecttotheprovisionsofNSPSSubpartY. b bInaddressingthisquestion,wealsoreviewedanumberofsupplementarydocumentsassociatedwithNSPSSubpartY.1The   supplementarydocuments,withoneexception,areconsistentwithourconclusionthatcoalunloading,ifitinvolvesconveyingcoaltoplantmachinery,isanaffectedfacilityThe1977InspectionManualidentifiescoalunloading :bareasaskeyareasforfugitiveemissions.Itaddressesfugitiveemissionsfromcoalunloadinginthecontextofbothemissionperformancetestsandperiodiccomplianceinspections.Themanualstatesthattheemissionperformancetestsare"intendedtoserveasabasisfordetermining[the]compliancestatusoftheplantduringlaterinspections."Themanualprovidesachecklistforrecordingtestresults;thischecklistincludesplacesforrecordingemissionopacitypercentagesassociatedwithunloadingfromtrucks,barges,orrailroads.Themanualalsoinstructstheinspectorstousetheemissionstestchecklistforperiodiccomplianceinspections.Theinspectorsareinstructedtocomparecurrentplantoperationswiththoserecordedduringtheemissionsperformancetests.Clearly,thismanual,whichwasissuedlessthanayearafterSubpartYwaspromulgated,treatscoalunloadingasanaffectedfacility.$j9:$The1980Review,incontrast,statesthat"[a]significantsourceofpotentialfugitiveemissionnotregulatedbycurrentNSPSarecoal'unloading'orreceivingsystems."Thisislater$ >j9$temperedbythestatementthat"coalunloadingsystemswerenotmentionedasaffectedfacilities."The1980Reviewdoesnotexplorewhethercoalunloading,althoughnotspecificallylisted,mightbecoveredbythedefinitionof coalprocessingandconveyingequipment. b> %!! &B &iThedocumentsusedinthisdiscussionarethefollowing:&w*!& &&BEPA&B &!&&w*documentnumber &"## 340/177022(dated11/77):'InspectionManualforEnforcementofNewSourcePerformanceStandards:CoalPreparationPlants"("1977InspectionManual");EPAdocumentnumber450/386022(dated12/80):"AReviewofStandardsofPerformanceforNewStationarySourcesCoalPreparationPlantsb('1980Review");"&B & &&BEPA .*&' &B & &"&Bdocumentnumber450/388001(dated2/88):"SecondReviewofNewSource +'( PerformanceStandardsforCoalPreparationPlants("1988Review").#i &&B'H# +^()  ,8)*  sbThe1988reviewdoesnotspecificallyaddresscoalunloadingasanaffectedfacility,butitassumesthatcoalunloadingisoneofthesourcesoffugitiveemissionscoveredbytheNSPS.Forexample,the1988Reviewidentifiestruckdumpsasoneofthesourcesoffugitiveemissionsatacoalpreparationplantandlaysoutthecostofcontrollingfugitiveemissionssourcesattheplant.ThesecostfiguresareusedincalculatingthecosteffectivenessoftheexistingNSPS.ThiscosteffectivenesscalculationisbasedonthepremisethatcomplyingwiththeNSPSmeanscontrollingfugitiveemissions,includingemissionsfromtruckdumps.Inlightoftheaboveinformation,EPAconcludesthatcoalunloadingthatinvolvesconveyingcoaltomachineryatcoalpreparationplantsisanaffectedfacilityundertheNSPSforcoalpreparationplants(40CFRPart60,SubpartY)andissubjecttoallrequirementsapplyingto"coalprocessingandconveyingequipment."WerecognizethatpastdeterminationstheapplicabilityofSubpartYtocoalunloadingvariedfromRegiontoRegion.Therefore,wewillnotifyallRegionalOfficesofthis%ii%conclusion.In#%iqP#i%theRegionsthat H havebeenexemptingcoalunloadingfromNSPSSubpartY,nopenaltieswillbesoughtforpastviolations.Weexpectthatcoalpreparationplantswillbeabletocontrolemissionsfromsuchcoal%ii%unloadingin#%i#R# x i%thefuturethroughuseofaddoncontrols. $  s!xv!  1Issue11:  Iscoalunloadingpartofthesourcethatbelongstothe , sourcecategoryforcoal'Preparationplants?  1$ 3x}$ 3WhetherafacilityhasbeenregulatedasanaffectedfacilitydoesnotdeterminewhetherfugitiveemissionsfromthatfacilityaretobecountedindeterminingwhetherthesourceasawholeismajorunderTitle*V.Rather,ifthefacilityispartofasourcethatfallswithinasourcecategorywhichhasbeenlistedpursuanttosection302(j)oftheAct,thenallfugitiveemissionsofanyregulatedairpollutantfromthatfacilityaretobeincludedindeterminingwhetherthatsourceisamajorstationarysourceundersection302orpartDofTitleIoftheActandaccordinglyrequiredtoobtainaTitleVpermit. 3Ӏ l3ӹ lSection302(j)oftheActprovidesthatEPAmaydeterminewhetherfugitiveemissionsfroma"stationarysource counttowards h+'' themajorsourcethreshold.Forpurposesofthe302(j)rulemaking, z,(( theterm"stationarysourceisdefinedas anybuilding,structure,facility,orinstallationwhichemitsormayemitanyairpollutantsubjecttoregulationundertheAct.40CFRsections51.166(b)(5)and52.21(b)(5).Building,structurefacility,orinstallationmeans allofthepollutantemittingactivitieswhichbelongtothesameindustrialgrouping,atelocatedononeormorecontiguousoradjacentproperties,andareunderthecontrolofthesameperson(orpersonsundercommoncontrol)excepttheactivitiesofanyvessel."40CFRsections51.166(b)(6)and52.21(b(6).EPAhasdeterminedbyrulethatfugitiveemissionscounttowardthemajorsourcethresholdforallsourcesthatbelongtothesourcecategoryregulatedbyNSPSSubpartY.49FR43202,43209(October26,1984).Underthedefinitionofsourceusedinthe302(j)rulemaking,alltypesofcoalunloadingatcoalpreparationplantsarecovered.Coalunloadingnormallybelongstothesameindustrialgroupingasotheractivitiesatcoalpreparationplants,islocatedoncontiguousoradjacentproperty,andisundercommoncontrol.Therefore,weconcludethatallcoalunloadingatacoalpreparationplantispartofthesourcebelongingtothesourcecategoryforcoalpreparationplants. cl clCoalunloadingofalltypesalsofitswithintheNSPSsourcecategory.AsurveyofEPARegionalOfficesindicatedthatthemajorityoftheRegionstreatcoalunloadingatacoalpreparationplantasbeingwithintheNSPSsourcecategory.CoalunloadingthatisregulatedunderSubpartYisclearlywithinthesourcecategory.Commonsensewoulddictatethatcoalunloadingfortemporarystoragebetreatednodifferently.Itisperformedatthesamefacilityandisanintegralpartoftheoperationsatthatfacility.Thelattertypeofcoalunloadingissimplyanoptionalfirststepinthecoalpreparationprocess. c cc cWeconcludethatfugitiveemissionsfromcoalunloadingmustbecountedindeterminingwhetheracoalpreparationplantisamajorsourcesubjecttoTitleVpermittingrequirements. c̀