Rule-Making Notices (Hearing Notices)

NR 423.037: This rule applies VOC controls to industrial cleaning operations at facilities emitting 6.8 kg/day (15 lb/day) of uncontrolled VOC emissions from industrial cleaning operations. The rule limits emissions by establishing solvent and solvent solution requirements, cleaning device and methods requirements, storage and disposal requirements, and recordkeeping requirements. Some industrial cleaning operations are regulated under industry specific RACT rules such as lithographic printers and large appliance manufacturers. Requirements in NR 423.035 continue to apply to facilities currently covered by that section.

Comparison with federal regulations

The Clean Air Act requires the Department to update existing VOC RACT rules when EPA issues an updated CTG. The rules for paper, film and foil coating, flat wood panel coating, furniture metal coating, large appliance coating, flexible package printing, lithographic printing, and industrial cleaning operations are based directly on the EPA CTGs. The rules regulate VOC emissions from individual printing and coating lines with emissions above specified thresholds as well as regulating VOC cleaning solvent work practices.

Comparison with rules in adjacent states

Illinois and Michigan are in the same position as Wisconsin regarding potentially deficient VOC RACT rules and they need to update their rules to reflect recently updated CTGs. Both states had previously adopted VOC RACT for the categories of sources subject to this rulemaking where such sources existed in their ozone nonattainment areas. Neither state has issued proposed new or updated regulations, but both are on a schedule to incorporate the required VOC RACT updates within their ozone SIPs. Minnesota and Iowa do not have designated ozone nonattainment areas and are not deficient in regard to VOC RACT.

Summary of factual data and analytical methodologies

The new paper, film and foil coating rule, the new furniture metal coating rule, and the new large appliance coating rule are based on the 2007 EPA CTGs for these categories. The new flexible package printing rule, the new lithographic printing rule, the new flatwood panel coating rule and the new industrial cleaning operations rule are based on the 2006 EPA CTGs for these source categories. All the recommended control measures in the CTGs are incorporated into the new rules. Retention of existing RACT limitations for these categories prevents backsliding. Some industrial cleaning operations will be regulated under industry specific RACT rules for lithographic printing; flexible package printing; flat wood paneling coatings; paper film and foil coatings; large appliance coatings; and metal furniture coatings.

Analysis and supporting documents used to determine the effect on small business

NR 422.075: The control requirements for individual large paper, film and foil coating lines will not impact small businesses. EPA established the number of affected facilities by surveys with consideration of state emission reporting and inventory estimates. Estimated cost per unit VOC reduced is provided by EPA in the CTG document.

An economic impact report was not requested.

NR 422.105: NR 422.115: NR 422.131: The control requirements for large metal furniture coating lines, large appliance coating lines and flatwood panel coating lines will not impact small businesses as these activities are already regulated for the facility threshold scale proposed. The coating activities and limits and control requirements reflect current industry coating types and application practices. EPA established the number of affected facilities by surveys with consideration of state emission reporting and inventory estimates. Estimated cost per unit VOC reduced is provided by EPA in the CTG document.

An economic impact report was not requested.

NR 422.141: NR 422.143: The control requirements for individual large printing flexible package printing presses and large lithographic packaging printing presses will not impact small businesses, since these large presses are not used by small businesses.

The solvent cleaning work practices are considered standard industrial practice. Most, if not all, facilities already perform good solvent cleaning work practices. The proposed rule establishes those standard work practices as requirements.

An economic impact report was not requested.

NR 423.037: The control requirements for industrial cleaning operations will not impact small businesses. The many solvent cleaning work practices are considered standard industrial practice. Most, if not all, facilities already perform good solvent cleaning work practices.

An economic impact report has not been requested.

Small Business Impact

These regulations will have a minimal economic cost to individual small businesses, because the major control requirements apply only to large facilities. Additionally, solvent cleaning work practices are considered standard industrial practice, therefore it is anticipated that most businesses affected by these rules are already implementing the requirements. More specific cost estimates are provided below.

NR 422.075: Through industry surveys EPA has estimated that no more than 7 facilities may be regulated in the large paper, foil and film coating category (inclusive of fabric and vinyl coaters regulated under NR 422.08 in Wisconsin nonattainment counties. A smaller number meet the 25 ton/coating line regulatory threshold. EPA estimated the national average cost of this RACT control as $1180/ton VOC ($2005).

NR 422.105: EPA estimated through prior survey work accomplished as background for the federal NESHAP that only143 facilities operate within ozone nonattainment areas nationwide. Comparative statistics suggest less than a dozen furniture metal coating facilities operate in Wisconsin's nonattainment area. EPA estimated the national average cost of this coating RACT control as $1670/ton VOC ($2005) with the incremental cost of the new coating limits and application practice requirements as $200/ton ($2005).

NR 422.115: For large appliance coating, EPA estimated the national average cost of this coating RACT control at $500/ton VOC ($2006).

NR 422.131: Through industry surveys, EPA has estimated that only 1 facility is likely to be regulated for flatwood panel coating in Wisconsin nonattainment counties. EPA estimated the national average cost of this coating RACT control as $1900/ton VOC ($2005) for interior and tileboard panels and $2600/ton VOC ($2005) for exterior siding.

NR 422.141: NR 422.143: EPA estimates that the total annual cost related to the cleaning requirements per small lithographic and flexible package printing facilities is approximately $1,485 (2005 dollars).

Small business regulatory coordinator

The Department's Small Business Regulatory Coordinator may be contacted at [e-mail] or by calling [phone].

Environmental Impact

The Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch. NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.

Fiscal Estimate

Assumptions

These volatile organic compounds (VOC) Reasonably Available Control Technology (RACT) rules are proposed so the Department will meet the Sec. 182(b)(2) requirement of the federal Clean Air Act. Section 182(b)(2) requires the Department to update existing VOC RACT regulations as US EPA issues updated Control Techniques Guidelines (CTG) for the RACT categories. US EPA released updated CTGs for the following seven source categories: flat wood paneling coating; paper, film and foil coating; large appliance coating; metal furniture coating; flexible package printing; offset lithographic printing; and industrial cleaning solvents. These rules will enable the Department to comply with the federal requirements.

Fiscal effect on state government

The rule requirements will not create a significant fiscal effect on state government because the majority of the sources affected are already inspected, permitted and otherwise regulated by the Department. There will not be a significant fiscal impact on the majority of source categories. However, the Department estimates that the industrial cleaning solvents rule will result in an estimated 400 ton/year future reduction in reported VOC emissions. Therefore, the Department may lose up to $15,000 (400 * $35.71/ton VOC) in emission fee revenue annually.

Fiscal effect on private sector

The Department believes that the proposed rules will not create a significant economic impact to private sector businesses. With a couple of minor exceptions, US EPA states in the CTGs that many facilities located in ozone nonattainment areas are already meeting the emission control levels recommended in the CTGs. In addition, the Department believes that the proposed industrial cleaning solvents work practices are already being implemented at many printing and coating facilities in the state.

State government fiscal effect

Decrease existing revenues.

Local government fiscal effect

None.

Fund sources affected

PRO

Affected Chapter 20 appropriations

Section 20.370 (2) (bg) and (bh), Stats.

Agency Contact Person

Larry Bruss

608-264-7543

[e-mail]

Notice of Hearing

Natural Resources

Environmental Protection — Air Pollution Control,
Chs. NR 400—

rulemaking_notices CR 08-103 CR 08-103

NOTICE IS HEREBY GIVEN THAT pursuant to ss. 227.11 (2) (a) and 285.11 (6), Stats., the Department of Natural Resources will hold a public hearing on revisions to Chapter NR 428, Wis. Adm. Code, relating to modification of existing rules for control of nitrogen oxide (NOx) emitted by stationary sources in the ozone nonattainment area in southeastern Wisconsin

Hearing Information

December 5, 2008   Rooms 140-141

Friday     DNR Southeast Region Hdqrs.

at 1:00 p.m.     2300 N. Dr. Martin Luther King Jr.
    Drive

    Milwaukee

Pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Robert Eckdale at [phone] with specific information on your request at least 10 days before the date of the scheduled hearing.

The hearing will be held in conjunction with the hearing for Natural Resources Board Order No. AM-19-08, CR 08-102, relating to the application of reasonably available control technology emission limitations to sources of volatile organic compounds in ozone non-attainment counties and Natural Resources Board Order No. AM-24-08, CR 08-104, relating to VOC emission controls for industrial wastewater collection and treatment operations. The order in which the proposals will be considered will be decided at the time of hearing.

Copies of Proposed Rules and Submission of Written Comments

The proposed rule and supporting documents, including the fiscal estimate may be viewed and downloaded and comments electronically submitted at the following Internet site: http://adminrules.wisconsin.gov. (Search this Web site using the Natural Resources Board Order No. AM-19-08. Written comments on the proposed rule may be submitted via U.S. mail to Mr. Tom Karman, Bureau of Air Management, P.O. Box 7921, Madison, WI 53707 or by e-mail to [e-mail]. Comments may be submitted until December 10, 2008. Written comments whether submitted electronically or by U.S. mail will have the same weight and effect as oral statements presented at the public hearings. If you do not have Internet access, a personal copy of the proposed rule and supporting documents, including the fiscal estimate may be obtained from Robert Eckdale, Bureau of Air Management, P.O. Box 7921, Madison, WI 53707 or by calling [phone].

Analysis Prepared by Department of Natural Resources

Statutes interpreted

Section 285.11 (6), Stats.

Statutory authority

Section 227.11 (2) (a) and 285.11 (6), Stats.

Related statute or rule

The current provisions of ch. NR 428 established nitrogen oxide emission limits for new and existing facilities which are located in ozone nonattainment counties. The primary intent of these provisions is to fulfill Clean Air Act (CAA) requirements for demonstrating rate-of-progress towards attaining the 1-hour ozone standard and establishment of a Reasonably Available Control Technology (RACT) program for major sources of nitrogen oxide emissions (NOx) in counties designated as nonattainment under the 8-hour ozone standard. Modifications are proposed to existing portions of ch. NR 428.

Plain language analysis

The proposed revisions relate to issues for State Implementation Plan approvability and miscellaneous implementation issues. The State Implementation Plan developed under s. 285.11 (6), Stats., is revised.

The proposed revisions address two areas: 1) required modifications to the NOx RACT program to meet minimum criteria for conditional Federal approval of the program into the State Implementation Plan (SIP); and 2) revisions identified by the department and stakeholders during implementation which clarify and facilitate implementation of requirements within ch. NR 428.

Revisions for SIP approval

As stated in s. NR 428.20, NOx RACT requirements are applicable to facilities which have potential NOx emissions equal to or greater than 100 tons per year. These facilities under the Clean Air Act are known as major sources. In proposing federal approval, the US EPA requires that the term "potential emissions", used in identifying major sources, be defined as the amount of NOx which can be theoretically emitted from emissions units at the facility on an uncontrolled basis over the year. These total potential emissions may consider a restriction on operational capacity or hours, if those restrictions are federally enforceable.

To address EPA's concerns, the proposed rules incorporate a definition of "maximum theoretical emissions" in identifying which sources are subject to NOx RACT requirements. This approach is consistent with the use of this term in s. NR 419.02 (11) for identifying the applicability of the state's VOC RACT requirements.

Revisions for Clarifications and Implementation

There are a number of miscellaneous revisions proposed in the rule package consistent with the intent of the existing rules. These revisions do not change the emission limitations or the sources subject to the emission limitations. The revisions are focused to implementation issues and clarification of requirements. These revisions include:

•   The existing NOx RACT rule identifies electric utility owned units as those subject to the federal CAIR rule. The proposed rule revision amends these provisions to account for the vacatur of the CAIR rule.

•   The existing NOx RACT rule allows sources to apply for an alternative emission limit or compliance schedule. However, the applications were due by May 1, 2008 even though in some cases requirements are not effective until 2013. The rule revision allows additional time for sources to submit an application for an alternative requirement.

•   The existing NOx RACT rule prohibits a source with an approved alternative emission limit or compliance schedule from participating in emissions averaging at any time. The rule revision only prohibits participation in the emissions averaging program for purposes of demonstrating compliance with an alternative emission limit of compliance schedule.

•   The new source NOx limits in s. NR 428.04 are applicable to units that undergo modification. The proposed revision modifies the existing rule to avoid triggering new source NOx limits when the modification is made solely to comply with existing NOx control requirements.

•   Several revisions allow sources subject to monitoring and reporting requirements under different provisions in ch. NR 428 to satisfy all requirements by meeting one set of monitoring and reporting requirements. These revisions also allow certain sources to demonstrate compliance through periodic stack testing instead of more costly continuous emissions monitoring.

•   A number of miscellaneous revisions are proposed to clarify monitoring requirements and deadlines.

•   The NOx limits in s. NR 428.05, established prior to the RACT program, are intended to apply to sources existing prior to February 1, 2001 with no lapse in applicability unless the source becomes subject to the new source limits in s. NR 428.04 due to a major modification. The applicability statement in s. NR 428.05 (1) is being revised to remove the reference to "modified" sources to clarify this intent.

Comparison with federal regulations

The NOx emission requirements of NR 428 are in place to fulfill federal ozone requirements in non-attainment areas for demonstrating rate-of-progress towards meeting 1 hour ozone attainment and for implementing a Reasonably Available Control Technology program for major sources of NOx emissions (NOx RACT). Since there are no direct federal emission limitations, states must meet these requirements through development of control requirements and adoption of them into the State Implementation Plan. Many states have NOx emission control programs in place or are in the process of evaluating and developing necessary rules to meet federal ozone non-attainment requirements.

EPA does regulate NOx emissions for similar sources and to similar control levels as those contained in ch. NR 428. These EPA regulations include new source performance standards, new source review and prevention of significant deterioration requirements, federal engine standards, the Acid Rain program, the NOx State SIP Call and various source specific consent decrees.

Comparison with similar rules in adjacent states

The need to implement NOx emission control requirements in adjacent states differ based on ozone non-attainment designations and the resulting applicable federal requirements. Illinois is in the process of developing NOx RACT rules. Ohio, Indiana, and Michigan are evaluating their applicable federal requirements based on attainment status. And Iowa and Minnesota currently do not have to respond to federal requirements for reduction in NOx emissions. As in the case of ch. NR 428, all rules developed by these states for ozone related purposes must undergo federal approval for inclusion into their State Implementation Plan.

Summary of factual data and analytical methodologies