[Federal Register Volume 63, Number 192 (Monday, October 5, 1998)]
[Rules and Regulations]
[Pages 53288-53290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26632]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 60
[FRL-6168-9]
New Source Performance Standards (NSPS)--Applicability of
Standards of Performance for Coal Preparation Plants to Coal Unloading
Operations
AGENCY: Environmental Protection Agency (EPA).
ACTION: Interpretation of standards of performance.
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SUMMARY: EPA issued an interpretation of the New Source Performance
Standards (NSPS) for Coal Preparation Plants, 40 CFR part 60, subpart
Y, on October 3, 1997, in response to an inquiry from the Honorable
Barbara Cubin, United States House of Representatives. After a careful
review of NSPS Subpart Y, the relevant regulations under Title V of the
Clean Air Act, and associated documents, EPA issued an interpretation
concluding that coal unloading that involves conveying coal to coal
plant machinery is subject to the NSPS, and that fugitive emissions, if
any, from coal dumping must be included in a determination of whether a
coal preparation plant is a major source subject to Title V permitting
requirements. The full text of the interpretation appears in the
SUPPLEMENTARY INFORMATION section of today's document.
FOR FURTHER INFORMATION CONTACT: Mr. Chris Oh, United States
Environmental Protection Agency (2223A), 401 M Street, SW., Washington,
D.C. 20460, telephone (202) 564-7004.
SUPPLEMENTARY INFORMATION: This interpretation does not supersede,
alter, or in any way replace the existing NSPS Subpart Y--Standards of
Performance for Coal Preparation Plants. This notice is intended solely
as a guidance and does not represent an action subject to judicial
review under section 307(b) of the Clean Air Act or section 704 of the
Administrative Procedures Act.
Analysis Regarding Regulatory Status of Fugitive Emissions From
Coal Unloading at Coal Preparation Plants
This analysis addresses the treatment of fugitive emissions from
coal unloading at coal preparation plants. The first question is
whether coal unloading is regulated under the New Source Performance
Standard (NSPS) for coal preparation plants, 40 CFR part 60, subpart Y.
The second question is whether fugitive emissions from coal unloading
must be included in determining whether the plant is a major source
subject to Title V permitting requirements. In this analysis, we use
the term ``coal unloading'' to encompass ``coal truck dumping'' and
``coal truck unloading,'' as well as dumping or unloading from trains,
barges, mine cars, and conveyors.
In a February 24, 1995, letter to the Wyoming Department of
Environmental Quality, signed by the Branch Chief for Air Programs, EPA
Region VIII concluded that coal unloading is not regulated by NSPS
Subpart Y (i.e., is not an ``affected facility''). Region VIII
approached the Title V issue by first determining whether coal
unloading is part of the NSPS coal preparation plant source category.
Having decided that coal unloading at the coal preparation plant site
is part of the source category, Region VIII concluded that fugitive
emissions from coal unloading must be included in determining whether
the plant is a major source subject to Title V permitting requirements.
Our independent review of NSPS Subpart Y and associated documents
leads us to conclude that coal unloading that involves conveying coal
to plant machinery is regulated under Subpart Y. Thus, we disagree with
the Region VIII letter to the extent it says that this type of coal
unloading is not an affected facility. We agree with Region VIII's
conclusion that fugitive emissions from coal unloading must be included
in determining whether the plant is a major source subject to Title V
permitting requirements. However, the relevant Title V regulations and
related provisions indicate that the analysis should focus on the
``source'' rather than the ``source category.'' In other words, the
central question is not whether coal unloading is within the NSPS
source category. Rather, it is whether coal unloading at a coal
preparation plant is part of the source that belongs to this source
category.
Accordingly, this analysis primarily addresses two issues: whether
coal unloading is an affected facility under NSPS Subpart Y, and
whether coal unloading is part of the source belonging to the coal
preparation plant NSPS source category. Underlying the second issue is
the question of whether fugitive emissions associated with coal
unloading should be included in major source determinations.
The question of whether fugitive emissions from coal unloading
should be included in major source determinations has implications for
permitting requirements under Title V of the Clean Air Act (``CAA'' or
``the Act''). Under the current Title V
[[Page 53289]]
implementing regulations, States must require ``major sources'' to
obtain a permit. 40 CFR 70.3. ``Major source,'' in turn, is defined as
``any stationary source (or any group of stationary sources that are
located on one or more contiguous or adjacent properties, and are under
common control of the same person (or persons under common control))
belonging to a single major industrial grouping * * *'' that is also a
major source under section 112 or a major stationary source under
section 302 or part D of Title I of the Act. 40 CFR 70.2. Relevant to
the analysis here is the section 302(j) definition of major stationary
source as any stationary source that emits or has the potential to emit
100 tons per year (tpy) or more of any air pollutant. Section 302(j)
also provides that fugitive emissions count towards the 100 tpy
threshold as determined by EPA by rule.
Pursuant to CAA section 302(j), the EPA has determined by rule that
fugitive emissions count towards the major source threshold for all
sources that belong to source categories regulated under the New Source
Performance Standards (NSPS) as of August 7, 1980. 49 FR 43202, 43209
(October 26, 1984). Because coal preparation plants are regulated by an
NSPS (40 CFR part 60, subpart Y) which was proposed on October 24, 1974
and promulgated on January 15, 1976, fugitive emissions from sources
that belong to the coal preparation plant source category count towards
this threshold. Thus, if coal unloading is part of the source belonging
to the coal preparation plant source category, then fugitive emissions
from coal unloading must be included in the major source determination.
After a careful review of NSPS Subpart Y, the relevant Title V
regulations, and associated documents, we conclude that: (1) Coal
unloading that involves conveying coal to plant machinery is an
affected facility under NSPS Subpart Y; and (2) All coal unloading at a
coal preparation plant is a part of the source belonging to the coal
preparation plant source category. We also determine that all coal
unloading at a coal preparation plant fits within the NSPS source
category. Finally, we conclude that fugitive emissions from coal
unloading must be counted in determining whether a coal preparation
plant is a major source subject to Title V permitting requirements. The
reasons for our conclusions are discussed below.
I. Is Coal Unloading an Affected Facility Under NSPS Subpart Y?
In NSPS Subpart Y, several emission points are identified and
regulated as part of a coal preparation plant. Subpart Y lists the
following affected facilities: thermal dryers, pneumatic coal-cleaning
equipment (air tables), coal processing and conveying equipment
(including breakers and crushers), coal storage systems, and coal
transfer and loading systems. Because coal unloading is not
specifically listed, the relevant question is whether it is covered
under one of the listed affected facilities.
EPA concludes that coal unloading that involves conveying coal to
plant machinery fits within the definition of ``coal processing and
conveying equipment.'' 40 CFR 60.251(g) defines ``coal processing and
conveying equipment'' as ``any machinery used to reduce the size of
coal or to separate coal from refuse, and the equipment used to convey
coal to or remove coal and refuse from the machinery. This includes,
but is not limited to, breakers, crushers, screens, and conveyor
belts.'' The key phrases are ``the equipment used to convey coal to * *
* machinery'' and ``but is not limited to.'' While the ``equipment''
involved in coal unloading varies from plant to plant (the definition
is written broadly enough to accommodate the differences), what is
important is that the equipment perform the function of conveying. It
should be noted that if the coal is unloaded for the purpose of
storage, then the unloading activity is not an affected facility under
NSPS Subpart Y. The coal must be directly unloaded into receiving
equipment, such as a hopper, to be subject to the provisions of NSPS
Subpart Y.
In addressing this question, EPA also reviewed a number of
supplementary documents associated with NSPS Subpart Y.1 The
supplementary documents, with one exception, are consistent with our
conclusion that coal unloading, if it involves conveying coal to plant
machinery, is an affected facility.
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\1\ The documents used in this discussion are the following: EPA
document number 340/1-77-022 (dated 11/77): ``Inspection Manual for
Enforcement of New Source Performance Standards: Coal Preparation
Plants'' (``1977 Inspection Manual''); EPA document number 450/3-80-
022 (dated 12/80): ``A Review of Standards of Performance for New
Stationary Sources--Coal Preparation Plants'' (``1980 Review''); EPA
document number 450/3-88-001 (dated 2/88): ``Second Review of New
Source Performance Standards for Coal Preparation Plants'' (``1988
Review'').
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The 1977 Inspection Manual identifies coal unloading areas as key
areas for fugitive emissions. It addresses fugitive emissions from coal
unloading in the context of both emission performance tests and
periodic compliance inspections. The manual states that the emission
performance tests are ``intended to serve as a basis for determining
[the] compliance status of the plant during later inspections.'' The
manual provides a checklist for recording test results; this checklist
includes places for recording emission opacity percentages associated
with unloading from trucks, barges, or railroads. The manual also
instructs the inspectors to use the emissions test checklist for
periodic compliance inspections. The inspectors are instructed to
compare current plant operations with those recorded during the
emissions performance tests. Clearly, this manual, which was issued
less than a year after Subpart Y was promulgated, treats coal unloading
as an affected facility.
The 1980 Review, in contrast, states that ``[a] significant source
of potential fugitive emission not regulated by current NSPS are coal
`unloading' or `receiving' systems.'' This is later tempered by the
statement that ``coal unloading systems were not mentioned as affected
facilities.'' The 1980 Review does not explore whether coal unloading,
although not specifically listed, might be covered by the definition of
``coal processing and conveying equipment.''
The 1988 Review does not specifically address coal unloading as an
affected facility, but it assumes that coal unloading is one of the
sources of fugitive emissions covered by the NSPS. For example, the
1988 Review identifies truck dumps as one of the sources of fugitive
emissions at a coal preparation plant and lays out the cost of
controlling fugitive emission sources at the plant. These cost figures
are used in calculating the cost effectiveness of the existing NSPS.
This cost effectiveness calculation is based on the premise that
complying with the NSPS means controlling fugitive emissions, including
emissions from truck dumps.
In light of the above information, EPA concludes that coal
unloading that involves conveying coal to machinery at coal preparation
plants is an affected facility under the NSPS for coal preparation
plants (40 CFR part 60, subpart Y) and is subject to all requirements
applying to ``coal processing and conveying equipment.'' EPA recognizes
that past determinations on the applicability of Subpart Y to coal
unloading varied from Region to Region. Therefore, we will notify all
Regional Offices of this conclusion. In the Regions that have been
exempting coal unloading from NSPS Subpart Y, no penalties will be
sought for past violations. We expect that coal preparation plants will
be able to control emissions from such coal
[[Page 53290]]
unloading in the future through use of add-on controls.
II. Is Coal Unloading Part of the Source That Belongs to the Source
Category for Coal Preparation Plants?
Whether a facility has been regulated as an affected facility does
not determine whether fugitive emissions from that facility are to be
counted in determining whether the source as a whole is major under
Title V. Rather, if the facility is part of a source that falls within
a source category which has been listed pursuant to section 302(j) of
the Act, then all fugitive emissions of any regulated air pollutant
from that facility are to be included in determining whether that
source is a major stationary source under section 302 or part D of
Title I of the Act and accordingly required to obtain a Title V permit.
Section 302(j) of the Act provides that EPA may determine whether
fugitive emissions from a ``stationary source'' count towards the major
source threshold. For purposes of the 302(j) rulemaking, the term
``stationary source'' is defined as ``any building, structure,
facility, or installation which emits or may emit any air pollutant
subject to regulation under the Act.'' 40 CFR 51.166(b)(5) and
52.21(b)(5). Building, structure, facility, or installation means ``all
of the pollutant emitting activities which belong to the same
industrial grouping, are located on one or more contiguous or adjacent
properties, and are under the control of the same person (or persons
under common control) except the activities of any vessel.'' 40 CFR
51.166(b)(6) and 52.21(b)(6).
EPA has determined by rule that fugitive emissions count towards
the major source threshold for all sources that belong to the source
category regulated by NSPS Subpart Y. 49 FR 43202, 43209 (October 26,
1984). Under the definition of source used in the 302(j) rulemaking,
all types of coal unloading at coal preparation plants are covered.
Coal unloading normally belongs to the same industrial grouping as
other activities at coal preparation plants, is located on contiguous
or adjacent property, and is under common control. Therefore, EPA
concludes that all coal unloading at a coal preparation plant is part
of the source belonging to the source category for coal preparation
plants.
Coal unloading of all types also fits within the NSPS source
category. A survey of EPA Regional Offices indicated that the majority
of the Regions treat coal unloading at a coal preparation plant as
being within the NSPS source category. Coal unloading that is regulated
under Subpart Y is clearly within the source category. Common sense
would dictate that coal unloading for temporary storage be treated no
differently. It is performed at the same facility and is an integral
part of the operations at that facility. The latter type of coal
unloading is simply an optional first step in the coal preparation
process.
EPA concludes that fugitive emissions from coal unloading must be
counted in determining whether a coal preparation plant is a major
source subject to Title V permitting requirements.
Dated: September 16, 1998.
Kenneth A. Gigliello,
Acting Director, Manufacturing, Energy and Transportation Division,
Office of Compliance.
[FR Doc. 98-26632 Filed 10-2-98; 8:45 am]
BILLING CODE 6560-50-P
