These requirements include that Wisconsin promulgate VOC RACT rules which are based on EPA guidance for facilities classified as synthetic organic chemical manufacturing industry (SOCMI) that have air oxidation or distillation and reactor processes. The DNR is proposing a VOC RACT rule that would regulate these SOCMI VOC emission categories in Wisconsin's ozone nonattainment areas. Several sections of the proposed rule reference identical federal requirements contained in the NSPS for these source categories, which the Department has already adopted into ch.
NR 440, Wis. Adm. Code.
Comparison with federal regulations
The proposed rule will modify the Department's ozone state implementation plan (SIP) to meet the requirements of the federal Clean Air Act and to clarify other state requirements. Portions of the proposed rule reference similar federal requirements contained in the NSPS for these source categories, which the Department has adopted in ch.
NR 440, Wis. Adm. Code.
Comparison with similar rules in adjacent states
The proposed rule is based on requirements established in the federal Clean Air Act for states that have ozone nonattainment areas. Iowa and Minnesota have no ozone nonattainment areas. Illinois' requirements are similar to the proposed rule. Michigan has adopted the NSPS for SOCMI source categories into its own regulations.
Summary of factual data and analytical methodologies
The DNR has already adopted federal regulations that establish VOC emission control requirements for NSPS facilities classified as SOCMI air oxidation, distillation and reactor operations. Much of the EPA guidance that the DNR must follow in its proposed VOC RACT rulemaking for SOCMI facilities is identical to these federal regulations. Consequently, appropriate portions of the proposed SOCMI VOC RACT rule reference those portions of ch.
NR 440, Wis. Adm. Code, that are identical to EPA RACT guidance.
Analysis and supporting documents used to determine the effect on small business
EPA's guidance for the SOCMI VOC controls does not include any discussion on the regulations potential impact on small business. It is not anticipated that the proposed rule will have an effect on small businesses. An economic impact report was not requested for the proposed rule.
Small Business Impact
Any SOCMI facility would require a minimum of 100 tons VOC emissions per year (maximum theoretical) in order to be subject to the proposed rule. Any small business that is classified a SOCMI facility would likely not meet this relatively high emissions total criteria. Consequently, the proposed rule will likely have no effect on small businesses.
The position of Small Business Regulatory Coordinator is currently vacant. If you have questions on the impact of these rules on small businesses, please contact Robert Eckdale by E-mail at
Robert.Eckdale@wisconsin.gov or by phone at 608-266-2856.
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
Summary
The Department proposes an administrative rule in ch.
NR 421, Wis. Adm. Code, to establish reasonably available control technology (RACT) requirements for VOC emissions for air oxidation, distillation and reactor operations at SOCMI facilities classified as major VOC sources in Wisconsin's ozone nonattainment areas. A major SOCMI facility for VOC RACT purposes is defined as having maximum theoretical emissions of 100 tons or more of VOCs per year.
According to the US EPA's VOC RACT guidelines for these SOCMI categories (reactor and distillation: published in 1993, air oxidation: published in 1984) – the cost of installing, operating and maintaining control devices for VOC emissions (amortized over 10 years) would range between $800 and $4,000 per ton of VOC emissions reduced [Note: these cost estimates have not been adjusted for inflation since their original guideline publication dates].
In 2007 a Department investigation identified no facilities that would be subject to a proposed SOCMI VOC RACT rule for air oxidation, distillation, or reactor operations. Nevertheless, this rule is being proposed to avoid potential EPA action in the event that any SOCMI facilities are identified in Wisconsin's ozone nonattainment areas in the future.
No local governments currently process the VOC waste streams from SOCMI air oxidation, distillation and reactor operations. Consequently, there would be no local government costs associated with implementing the proposed SOCMI VOC RACT rule.
The Department is also proposing a minor change to s.
NR 439.075 (2) (c )3. j., Wis. Adm. Code, to reference s.
NR 440.705, Wis. Adm. Code, to require compliance emission testing for VOCs at reactor operations.
State fiscal effect
Indeterminate
Local government fiscal effect
None
Fund sources affected
PRO
Affected Ch.
20 appropriations
Long-range fiscal implications
None
Agency Contact Person
Bill Adamski
608-266-2660
