99-9723. Project XL Site-Specific Rulemaking for Andersen Corporation's Facility in Bayport, Minnesota  

  • [Federal Register Volume 64, Number 74 (Monday, April 19, 1999)]
    [Proposed Rules]
    [Pages 19097-19106]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-9723]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 52
    
    [FRL-6324-5]
    
    
    Project XL Site-Specific Rulemaking for Andersen Corporation's 
    Facility in Bayport, Minnesota
    
    AGENCY: Environmental Protection Agency.
    
    ACTION: Proposed rule; request for comments on draft final project 
    agreement.
    
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    SUMMARY: The Environmental Protection Agency (``EPA'') is proposing to 
    implement a project under the Project XL program for the Andersen 
    Corporation (``Andersen'') facility located in Bayport, Minnesota. The 
    terms of the project are defined in a draft Final Project Agreement 
    (``FPA'') which is being made available for public review and comment 
    by this document. In addition, EPA is proposing a site-specific rule, 
    applicable only to the Andersen Bayport facility, to facilitate 
    implementation of the project. By this document, EPA solicits comment 
    on the proposed rule, the draft FPA, and the project generally.
        This proposed site-specific rule is intended to provide regulatory 
    changes under the Clean Air Act (``CAA'' or the ``Act'') to implement 
    Andersen's XL project, which will result in superior environmental 
    performance and, at the same time, provide Andersen with greater 
    operational flexibility. The proposed site-specific rule would change 
    some of the CAA requirements which apply to the Andersen Bayport 
    facility for the Prevention of Significant Deterioration (``PSD'') 
    program, in particular existing synthetic minor limits that apply to 
    some VOC sources in the Bayport facility. ``Synthetic minor'' limits 
    are operational and control limitations which serve to limit the net 
    emissions increase associated with proposed new or modified units or 
    systems to less than the applicable significance level and thereby keep 
    them out of PSD review.
    
    DATES: Comments. All public comments must be received on or before May 
    19, 1999. If a public hearing is held, the public comment period would 
    remain open until June 3, 1999
        Public Hearing. A public hearing will be held, if requested, to 
    provide interested persons an opportunity for oral presentation of 
    data, views, or arguments concerning this proposed rule to implement 
    Andersen's XL project. If anyone contacts the EPA requesting to speak 
    at a public hearing by April 29, 1999, a public hearing will be held on 
    May 3, 1999. Additional information is provided in the section entitled 
    ADDRESSES.
        Request to Speak at Hearing. Persons wishing to present oral 
    testimony must contact Ms. Rachel Rineheart at the EPA by April 29, 
    1999. Additional information is provided in the section entitled 
    ADDRESSES.
    
    ADDRESSES: Comments. Written comments should be submitted in duplicate 
    to: Ms. Rachel Rineheart, U.S. Environmental Protection Agency, Region 
    5, Air and Radiation Division, 77
    
    [[Page 19098]]
    
    West Jackson Boulevard (AR-18J), Chicago, IL, 60604-3590.
        Docket. A docket containing supporting information used in 
    developing this proposed rulemaking is available for public inspection 
    and copying at U.S. EPA, Region 5, 77 West Jackson Boulevard, Chicago, 
    Illinois 60604-3590, (312) 886-7017, 8:30 am-4:30 pm business days, and 
    U.S. EPA, 401 M Street, SW, Room 3802, Washington, D.C. 20460, (202) 
    260-2601, during normal business hours, and at the Bayport Public 
    Library, 582 North Fourth Street, Bayport, Minnesota 55003, (651) 439-
    7454. A reasonable fee may by charged for copying.
        Public Hearing. If a public hearing is held, it will be held in 
    Bayport, Minnesota. Persons interested in attending the hearing should 
    contact Ms. Rachel Rineheart at (312) 886-7017 to verify that a hearing 
    will be held.
    
    FOR FURTHER INFORMATION CONTACT: Ms. Rachel Rineheart, U.S. 
    Environmental Protection Agency, Region 5, Air and Radiation Division, 
    77 West Jackson Boulevard (AR-18J), Chicago, IL 60604-3590, (312) 886-
    7017.
    
    SUPPLEMENTARY INFORMATION:
    
    Outline of This Document
    
    I. Authority
    II. Background
        A. Overview of Project XL
        B. Overview of the Andersen XL Project
        1. Introduction
        2. Andersen XL Project Description
        a. Background
        b. Project Details
        3. Environmental Benefits
        4. Stakeholder Involvement
    III. Clean Air Act Requirements
        A. Summary of Regulatory Requirements for the Andersen XL 
    Project
        B. Prevention of Significant Deterioration
        C. Proposed Regulatory Changes
        1. Synthetic Minor Limits
        2. Duration
        3. Duration of Flexibility
        4. Summary
    IV. Additional Information
        A. Public Hearing
        B. Executive Order 12866
        C. Regulatory Flexibility
        D. Paperwork Reduction Act
        E. Unfunded Mandates Reform Act
        F. Executive Order 13045: Protection of Children from 
    Environmental Health Risks and Safety Risks
        G. Executive Order 12875: Enhancing Intergovernmental 
    Partnerships
        H. Executive Order 13084: Consultation and Coordination with 
    Indian Tribal Governments
        I. National Technology Transfer and Advancement Act
    
    I. Authority
    
        This regulation is being proposed under the authority of sections 
    101(b)(1), 110, 111, 161-169, and 301(a)(1) of the CAA. EPA has 
    determined that this rulemaking is subject to the provisions of section 
    307(d) of the CAA.
    
    II. Background
    
    A. Overview of Project XL
    
        This proposed site-specific regulation will implement a project 
    developed under Project XL, an EPA initiative to allow regulated 
    entities to achieve better environmental results at less cost. Project 
    XL--``eXcellence and Leadership''--was announced on March 16, 1995, as 
    a central part of the National Performance Review and the EPA's effort 
    to reinvent environmental protection. See 60 FR 27282 (May 23, 1995). 
    Project XL provides a limited number of private and public regulated 
    entities an opportunity to develop their own pilot projects to provide 
    regulatory flexibility that will result in environmental protection 
    that is superior to what would be achieved through compliance with 
    current and reasonably anticipated future regulations. These efforts 
    are crucial to the Agency's ability to test new regulatory strategies 
    that reduce regulatory burden and promote economic growth while 
    achieving better environmental and public health protection. The Agency 
    intends to evaluate the results of this and other Project XL projects 
    to determine which specific elements of the project(s), if any, should 
    be more broadly applied to other regulated entities for the benefit of 
    both the economy and the environment.
        Under Project XL, participants in four categories--facilities, 
    industry sectors, governmental agencies and communities--are offered 
    the flexibility to develop common sense, cost-effective strategies that 
    will replace or modify specific regulatory requirements, on the 
    condition that they produce and demonstrate superior environmental 
    performance. To participate in Project XL, applicants must develop 
    alternative pollution reduction strategies pursuant to eight criteria: 
    superior environmental performance; cost savings and paperwork 
    reduction; local stakeholder involvement and support; test of an 
    innovative strategy; transferability; feasibility; identification of 
    monitoring, reporting and evaluation methods; and avoidance of shifting 
    risk burden. They must have full support of affected Federal, state and 
    tribal agencies to be selected. For more information about the XL 
    criteria, readers should refer to the two descriptive documents 
    published in the Federal Register (60 FR 27282, May 23, 1995 and 62 FR 
    19872, April 23, 1997), and the December 1, 1995 ``Principles for 
    Development of Project XL Final Project Agreements'' document.
        The XL program is intended to allow the EPA to experiment with 
    untried, potentially promising regulatory approaches, both to assess 
    whether they provide benefits at the specific facility affected, and 
    whether they should be considered for wider application. Such pilot 
    projects allow the EPA to proceed more quickly than would be possible 
    when undertaking changes on a nationwide basis. As part of this 
    experimentation, the EPA may try out approaches or legal 
    interpretations that depart from or are even inconsistent with 
    longstanding Agency practice, so long as those interpretations are 
    within the broad range of discretion enjoyed by the Agency in 
    interpreting statutes that it implements. The EPA may also modify 
    rules, on a site-specific basis, that represent one of several possible 
    policy approaches within a more general statutory directive, so long as 
    the alternative being used is permissible under the statute.
        Adoption of such alternative approaches or interpretations in the 
    context of a given XL project does not, however, signal the EPA's 
    willingness to adopt that interpretation as a general matter, or even 
    in the context of other XL projects. It would be inconsistent with the 
    forward-looking nature of these pilot projects to adopt such innovative 
    approaches prematurely on a widespread basis without first determining 
    whether or not they are viable in practice and successful in the 
    particular projects that embody them. Furthermore, as EPA indicated in 
    announcing the XL program, the Agency expects to adopt only a limited 
    number of carefully selected projects. These pilot projects are not 
    intended to be a means for piecemeal revision of entire programs. 
    Depending on the results in these projects, EPA may or may not be 
    willing to consider adopting the alternative interpretation again, 
    either generally or for other specific facilities.
        The EPA believes that adopting alternative policy approaches and 
    interpretations, on a limited, site-specific basis and in connection 
    with a carefully selected pilot project, is consistent with the 
    expectations of Congress about EPA's role in implementing the 
    environmental statutes (so long as the Agency acts within the 
    discretion allowed by the statute). Congress' recognition that there is 
    a need for experimentation and research, as well as ongoing re-
    evaluation of environmental programs, is reflected in a variety of 
    statutory
    
    [[Page 19099]]
    
    provisions, such as sections 101(b) and 103 of the CAA.
    
    B. Overview of the Andersen XL Project
    
    1. Introduction
        This proposed site-specific rule will facilitate issuance of a 
    consolidated permit which will contain Federal and State permits as 
    outlined in the Andersen Windows Project XL draft FPA. The draft FPA 
    was developed by the Andersen Community Advisory Committee (``CAC''), 
    Andersen, the Minnesota Pollution Control Agency (``MPCA''), Washington 
    County, and the EPA. The draft FPA is available for review in the 
    docket for today's action and also is available on the world wide web 
    at http://www.epa.gov/projectxl. The draft FPA outlines how the project 
    addresses the eight Project XL criteria, in particular how the project 
    will produce, measure, monitor, report, and demonstrate superior 
    environmental benefits. In today's action, the Agency is soliciting 
    comment on proposed site-specific regulatory changes to implement the 
    project.
        The draft FPA contemplates issuance of a consolidated permit which 
    will contain Federal and State permits for Andersen's Bayport facility, 
    which MPCA would issue subsequent to the promulgation of a final rule. 
    The Andersen XL consolidated permit would be composed of a minor new 
    source review permit under the Minnesota State Implementation Plan 
    (``SIP''), a Title V permit under the Minnesota Title V program 
    approved under 40 CFR part 70, and a PSD permit under 40 CFR 52.21, as 
    proposed to be modified and made applicable to Andersen at 40 CFR 
    52.1246. Any such consolidated permit would be issued in accordance 
    with applicable public notice and comment, and administrative appeal 
    and petition provisions. In issuing a PSD permit, MPCA will be acting 
    as EPA's delegatee in accordance with 40 CFR 52.21(u) and 40 CFR part 
    124. EPA will send direct and timely notification of the public comment 
    period for the Andersen XL permit to any person who either comments on 
    this proposed rule, the draft FPA, or otherwise requests such notice.
        EPA also seeks comment on the draft FPA (which is available on the 
    world wide web, in the docket file for today's action, and upon 
    request) in light of the criteria outlined in the Agency's May 23, 
    1995, Federal Register document (60 FR 27282) regarding Regulatory 
    Reinvention (XL) Pilot Projects. Those criteria are: (1) environmental 
    performance superior to what would be achieved through compliance with 
    current and reasonably anticipated future regulations; (2) cost savings 
    or economic opportunity, and/or decreased paperwork burden; (3) 
    stakeholder support; (4) test of innovative strategies for achieving 
    environmental results; (5) approaches that could be evaluated for 
    future broader application; (6) technical and administrative 
    feasibility; (7) mechanisms for monitoring, reporting, and evaluation; 
    and (8) consistency with Executive Order 12898 on Environmental Justice 
    (avoidance of shifting of risk burden).
    2. Andersen XL Project Description
        a. Background. The Andersen Corporation is a leading manufacturer 
    of durable, energy efficient, high performance clad wood windows and 
    patio doors. Andersen's main manufacturing plant is at 100 Fourth 
    Avenue North in Bayport, Minnesota (Fourth Avenue Site), along the St. 
    Croix River, a federally designated ``Wild and Scenic River,'' which 
    forms the border between Minnesota and Wisconsin.
        Operating in the St. Croix Valley since 1903, Andersen has 
    demonstrated a long-term ethic of stewardship. This ethic is reinforced 
    by the high level of environmental performance of the current Andersen 
    operations. Andersen employs approximately 3,000 people at its Fourth 
    Avenue Site. Existing Fourth Avenue Site manufacturing facilities are 
    located on 110 acres, consisting of 78 buildings, most of which are 
    interconnected. Manufacturing and related processes at Andersen include 
    wood cutting and milling, wood preservative application, painting, 
    vinyl processing, adhesive operations, by-product transfer, wood-fired 
    boilers, assembly operations, technology development, production 
    support and maintenance functions.
        The Andersen West Site is located at 4001 Stagecoach Road North, on 
    the western boundary of Bayport. The Andersen West Site is located 
    approximately one mile West of the Fourth Avenue Site and is intended, 
    in part, to be a support operation for the Fourth Avenue Site. The 
    property was purchased by Andersen in 1994 to provide expansion space 
    for its various operations. The site is 245 acres in total size. Of 
    that acreage, approximately 150 acres are suitable for development. The 
    remaining acreage not able to be developed includes a wetland, a 
    bluffland tract that the Company has placed in a conservation easement, 
    and 3 probable Native American Burial sites. A site suitability study 
    is currently underway to identify the best possible use(s) for the 
    site.
        Except as specifically described in this proposed rule and the 
    draft FPA, nothing in this proposed rule, draft FPA, or the Andersen XL 
    permits will waive, modify, or otherwise affect any obligations 
    Andersen may have under local, State, and Federal law with respect to 
    development of the Andersen West property.
        b. Project Details. Andersen plans to expand its production 
    capacity for window components made using its special 
    FibrexTM technology, which is a combination of reclaimed 
    sawdust and vinyl that can be extruded into a variety of shapes without 
    the need for extensive milling or preservation treatment. In addition, 
    Andersen plans to expand the use of its waterborne treatment processes. 
    Both of these processes result in substantially fewer VOC emissions per 
    unit than traditional solvent-based wood treatment. To expedite this 
    expansion, Minnesota and EPA plan to allow Andersen to modify and add 
    VOC and milling and non-milling PM/PM10 sources without 
    additional PSD approvals and eliminate certain existing VOC synthetic 
    minor limits. Today's proposed rule would authorize, only within the 
    context of the Andersen XL project, the elimination of certain VOC 
    synthetic minor limits and establish a ten year contemporaneous period 
    for VOC and non-milling PM/PM10 emissions for the purpose of 
    determining net emission increases under the PSD program. All other 
    elements of the project will be incorporated in Andersen's XL permit 
    without the need for any change in applicable requirements.
        The cornerstone of this project is the creation of a novel 
    performance ratio approach to the regulation of VOCs which limits VOC 
    emissions per unit of production. This approach, which could not be 
    imposed under existing law, is intended to ``lock-in'' existing 
    efficient manufacturing methods and processes while encouraging 
    continued improvement.
        On a per period basis (13 periods per year) Andersen will calculate 
    the ratio of pounds VOC emitted per cubic foot of product shipped 
    (performance ratio) for the preceding 13 periods. That calculation will 
    be compared to the following series of tiered limits established as 
    part of this project:
        CAC Limit--The CAC limit shall serve as the main limit for 
    evaluating Andersen's ongoing environmental performance. The CAC limit 
    is the average of the prior five years' performance ratios. The CAC 
    limit will be recalculated once every three years, will decline if 
    appropriate, but will increase only if the CAC approves the
    
    [[Page 19100]]
    
    change, with the concurrence of EPA and MPCA. If Andersen's annual 
    performance ratio exceeds the CAC limit, Andersen will be required to 
    provide a specific explanation of the exceedance to the CAC as well as 
    establish a CAC--approved corrective action plan to bring the 
    performance ratio back below the limit.
        Enforcement Limit--A static enforcement limit for the ten-year 
    duration of the project will be established utilizing the initial CAC 
    limit plus two standard deviations. If the facility's annual 
    performance ratio exceeds the enforcement limit the company would 
    potentially be subject to the enforcement actions that are available 
    under current law.
        Project Limit--The adjusting project limit will be set at two 
    standard deviations above the CAC limit. It will be the same as the 
    enforcement limit for the initial three-year period, but will be 
    adjusted at the same time as the CAC limit. The project limit will 
    never exceed the enforcement limit. If Andersen's performance ratio 
    exceeds the project limit (but is below the enforcement limit) the 
    project will end unless Andersen demonstrates to the satisfaction of 
    the CAC, EPA, and MPCA, each acting in its independent capacity, why 
    the project should continue.
        Reward Limit--The reward limit will be set at two standard 
    deviations below the CAC limit. The reward limit will not increase and 
    will only decline if Andersen remains below it for three consecutive 
    years. The CAC limit could never go below the reward limit. If the 
    facility operates below the reward limit, it will potentially receive 
    rewards, depending upon the duration of reward performance, such as 
    formal recognition by U.S. EPA and MPCA, addition of Mini-Projects (to 
    be accomplished in accordance with the Section VI amendment provision 
    of the FPA, including any applicable public notice and comment 
    requirements), and extension of the Project duration which would be 
    treated as a modification of Andersen's XL Permit and be subject to 
    applicable rulemaking and permitting requirements.
        Beyond the performance ratio, Andersen will accept enforceable caps 
    on VOC emissions at its Bayport facility and an enforceable cap on non-
    milling PM/PM10 emissions. In exchange for accepting these caps, as 
    well as making the other project commitments discussed in this section, 
    Andersen will gain greater flexibility to make facility modifications . 
    This is especially important to a company such as Andersen that is 
    subject to fast-changing market conditions. Through greater 
    flexibility, Andersen will be able to quickly change its processes 
    based on changes in demand for its products.
        Andersen's Title V permit, which will be included in the Minnesota 
    XL permit, will contain provisions approving in advance some changes 
    anticipated at the facility. An example of possible permit provision 
    for a pre-approved change is included in Attachment D to the FPA. Any 
    such provision will include sufficiently detailed descriptions of the 
    preauthorized changes for compliance purposes and to give the public 
    sufficient notice of the types of changes that will be authorized. The 
    descriptions will also identify all applicable requirements that would 
    apply to the proposed change, including requirements for periodic 
    monitoring and recordkeeping. Pre-approving changes will provide 
    Andersen with the advantage of being able to make modifications without 
    delay and respond to the fast-paced market conditions in the 
    construction industry. This privilege is subject to conditions that 
    will ensure that Andersen's facility modifications are documented for 
    purposes of Agency oversight and public accountability, and will result 
    in superior environmental performance.
        In addition, Andersen will control all wood milling operations with 
    BACT baghouse units and monitor HAPs to ensure that they remain below 
    risk-based levels. Andersen will commit that new paint and preservative 
    processes will be at least as clean as their best performing existing 
    processes. If sufficient Fibrex and waterborne capacity exists, 
    Andersen will remove one of its two dip tanks within five years of the 
    project start.
        Andersen is making a voluntary commitment to reduce its generation 
    of solid and hazardous waste. Minnesota plans to provide Andersen with 
    flexibility from State requirements relating to decommissioning and 
    disposal of certain process units. Andersen is committing to enhance 
    its existing groundwater remediation system.
    3. Environmental Benefits
        One of the primary purposes of this project is to allow Andersen to 
    continue to convert production of window and door components to more 
    environmentally efficient processes, such as extrusion of Fibrex 
    composite window components (versus milled and preservative treated 
    wood components), waterborne preservative treatment (versus solvent 
    based preservative treatment), and higher solids paint coatings. These 
    types of processes result in fewer VOC emissions per unit of production 
    than traditional solvent-based processes.
        The Fibrex process, as compared to conventional wood milling and 
    preservation treatment processes, is environmentally beneficial for 
    several reasons. First, it reduces dependence on virgin wood materials 
    because it allows for the use of wood byproduct materials, rather than 
    the use of virgin wood. Second, the Fibrex process requires no wood 
    preservation treatment. Wood preservation treatment accounts for a 
    substantial amount of VOC air emissions from the Andersen facility. 
    Thus, expansion of the Fibrex process within Andersen's Bayport 
    facility will result in substantial reductions in the emissions of 
    Volatile Organic Compounds (``VOCs'') per unit of production. Refer to 
    Table 1 for a comparison of air emissions for the traditional vinyl 
    clad wood parts versus Fibrex composite produced parts.
    
     Table 1.--Air Emissions Comparison: Vinyl Clad Wood to Fibrex Composite
                [Based on 1,000,000 standard size window pieces]
    ------------------------------------------------------------------------
                                                     Vinyl-clad     Fibrex
                                                    profile air  profile air
                   Type of emission                  emissions    emissions
                                                       (tons)       (tons)
    ------------------------------------------------------------------------
    VOC...........................................         96.2          5.6
    PM/PM10.......................................         0.69         1.88
    HAP...........................................         0.19         0.03
    ------------------------------------------------------------------------
    
        In an effort to move away from solvent based wood preservation 
    treatment processes, Andersen worked with suppliers to develop water-
    borne wood preservative formulations that provide the same product 
    performance as their solvent-based predecessors. The VOC content of 
    water-borne formulations is typically 10-30% that of the traditional 
    solvent based formulations. Since 1990, Andersen has converted or 
    installed 12 waterborne preservative wood treatment systems to replace 
    older solvent-based preservative processes. Greater than 50% of the 
    wood window and door frame components are now preserved with a 
    waterborne wood preservative formulation, which has reduced VOC 
    emissions by over 350 tons annually. This agreement will facilitate 
    increased use of existing waterborne wood treatment systems by removing 
    certain synthetic minor limits which restrict use of those systems and 
    the installation of additional waterborne wood treatment systems, as 
    well as the
    
    [[Page 19101]]
    
    possible phase-out of one of two of the company's remaining solvent 
    based wood preservation diptanks. Refer to Table 2 for a comparison of 
    air emissions per unit of production from traditional solvent based 
    wood preservation processes versus waterborne processes.
    
      Table 2.--Air Emissions Comparison: Solvent-based to Waterborne Wood
                                    Treatment
                [(Based on 1,000,000 standard size window pieces]
    ------------------------------------------------------------------------
                                                      Solvent-    Waterborne
                                                     based wood      wood
                                                     treatment    treatment
                   Type of emission                     air          air
                                                     emissions    emissions
                                                       (tons)       (tons)
    ------------------------------------------------------------------------
    VOC...........................................         87.0         13.3
    HAP...........................................         0.16            0
    ------------------------------------------------------------------------
    
        Andersen window components manufactured from Fibrex composite offer 
    performance characteristics similar to the existing vinyl-clad wood 
    components. Currently, Andersen is using Fibrex composite technology in 
    their RenewalTM replacement window product line and has 
    introduced Fibrex composite components into some core product lines. 
    This Project XL agreement facilitates further expansion of Fibrex 
    composite production.
        Fibrex composite creates a high value usage of certain Andersen 
    byproduct materials, and is itself completely recyclable into new 
    Fibrex composite components, thus completing a product stewardship 
    circle of Fibrex composite to Fibrex composite.
        Andersen's conversion from VOC based processes to Fibrex and 
    waterborne preservation processes is, in part, limited by market 
    acceptance of Fibrex. The flexibility provided in this Project XL pilot 
    will allow Andersen to quickly react to increases in market demand or 
    to install additional waterborne preservation processes, whichever may 
    be most appropriate. In addition, removing the VOC synthetic minor 
    limits on the existing waterborne preservation processes will allow 
    Andersen to maximize use of those environmentally superior processes 
    while limiting the use of existing VOC-based preservation processes.
    4. Stakeholder Involvement
        Stakeholder involvement and participation is vital to the success 
    of the Andersen Project XL program. Andersen will continue to work with 
    the CAC which was established in December 1997. The CAC serves as the 
    primary contact with the community and other stakeholder groups, 
    conveying concerns to the community and forging an accountability link 
    between the community and the company.
        In addition, the CAC will serve in an oversight role. For example, 
    if Andersen's annual performance ratio exceeds the CAC limit, Andersen 
    will be required to provide a specific explanation of the exceedance to 
    the CAC as well as establish a CAC--approved corrective action plan to 
    bring the performance ratio back below the limit.
        The work of the CAC is based on the Stakeholder Involvement Plan, 
    which is included as an attachment to the draft FPA. Andersen will 
    continue outreach work with all Stakeholders using the strategies and 
    tactics contained in the plan. Andersen will also continue to be 
    responsive to community inquiries on operational matters including 
    traffic, noise and odor.
    
    III. Clean Air Act Requirements
    
    A. Summary of Regulatory Requirements for the Andersen XL Project
    
        Implementation of the Andersen Project XL pilot requires only 
    limited regulatory changes. Specifically, Andersen's use of its 
    waterborne inline wood treatment systems is currently restricted by 
    certain VOC ``synthetic minor'' limits. The PSD program for the State 
    of Minnesota would prohibit relaxation of permit operating restrictions 
    which were established for the purpose of limiting potential to emit 
    without first meeting the requirements of the PSD program, which 
    includes the installation of Best Available Control Technology (BACT) 
    and an air quality impacts analysis. For the reasons discussed in this 
    preamble, EPA proposes to allow relaxation of certain VOC ``synthetic 
    minor'' limits as a part of the Andersen Project XL pilot.
        In addition, the PSD program for the State of Minnesota would limit 
    the effectiveness of a plantwide applicability limit (PAL), referred to 
    as an emissions cap in the FPA, to 5 years. As described in the FPA, 
    the expected duration of the Andersen XL project, including the VOC and 
    non-milling PM/PM10 PALs, is 10 years. As explained below 
    (Section III.B.), EPA proposes to allow establishment of VOC and non-
    milling PM/PM10 PALs for Andersen, which would be effective 
    in avoiding PSD for a 10 year period.
        All other elements of the Andersen Project XL pilot, including the 
    ability to add or modify sources so long as emissions remain below the 
    VOC and non-milling PM/PM10 PALs which will be set at levels 
    to assure that no significant net emission increase will occur, would 
    not require regulatory amendments. The regulatory changes under this 
    proposed site-specific rule address only VOC and PM/PM10 
    emissions including the length of the contemporaneous period used to 
    determine the VOC and PM/PM10 PALs. Andersen will fully 
    comply with normally applicable regulations for all other pollutants. 
    In addition, Andersen will fully comply with provisions of any New 
    Source Performance Standards, the State Implementation Plan, including 
    minor New Source Review (``NSR''), and the Title V operating permit 
    program, that apply to its operations, and with all requirements for 
    the control of hazardous air pollutants (HAPs), including any Maximum 
    Achievable Control Technology standards that would apply to the 
    facility. Andersen will also comply with all existing and future 
    environmental requirements not specifically amended pursuant to EPA's 
    site-specific rulemaking for this project or pursuant to the permits 
    expected to be issued by the MPCA.
        While the draft FPA outlines the requirements that will be included 
    in the State of Minnesota XL permit (which will include the PSD 
    permit), a draft of that permit and the accompanying modeling and 
    analysis required by section 165 of the CAA have not been completed. 
    Therefore, a determination of whether the draft permit satisfies the 
    statutory PSD permitting criteria in section 165(a) of the Act will be 
    deferred until such time as the draft permit is made available for 
    public notice and comment. Because many of the details of the Andersen 
    Project XL pilot will necessarily be deferred until issuance of the 
    draft permit and in order to enhance participation in the Project XL 
    process, EPA will compile a list of persons wishing to receive direct 
    notice of the availability of the draft permit for review. Persons 
    desiring such notice may now submit a written request to EPA at the 
    address in the section entitled ADDRESSES.
        Once the public comment period on this proposed rule has closed, 
    EPA will review any comments received and determine in consultation 
    with Andersen, MPCA, and stakeholders whether to proceed to development 
    of the draft permit and whether any changes are necessary to the draft 
    FPA. In any event, EPA does not intend to take final action on this 
    proposed rule until such time as the draft permit has been public 
    noticed and any comments are available for consideration in this 
    rulemaking.
    
    [[Page 19102]]
    
    B. Prevention of Significant Deterioration
    
        As explained above, a determination of whether the draft Andersen 
    PSD permit meets the PSD requirements of the Act will be deferred to 
    such time as the draft permit is available for public review and 
    comment. However, for the purposes of this proposed rule which would 
    modify certain requirements of the PSD program, a brief description of 
    the PSD requirements may be useful to reviewers.
        The PSD program is a preconstruction review and permitting program 
    applicable to new or modified major stationary sources of air 
    pollutants regulated under the Act. In attainment areas (i.e., areas 
    meeting the National Ambient Air Quality Standards (``NAAQS'')) and 
    unclassifable areas, the requirements for the PSD program found in part 
    C of title I of the Act apply. The PSD provisions are a combination of 
    air quality planning and air pollution control technology program 
    requirements. Each SIP is required to contain a preconstruction review 
    program for the construction and modification of any major stationary 
    source of air pollution to assure that the NAAQS are achieved and 
    maintained; to protect areas of clean air; to protect Air Quality 
    Related Values (``AQRVs'') (including visibility) in national parks and 
    other natural areas of concern; to assure appropriate emission controls 
    are applied; to maximize opportunities for economic development 
    consistent with the preservation of clean air resource; and to ensure 
    that any decision to increase air pollution is made only after full 
    public consideration of all the consequences of such a decision. See 
    sections 101(b)(1), 110(a)(2)(C) and 160 of the Act. The Andersen 
    Bayport facility is located in an area that meets the NAAQS for all 
    criteria air pollutants except carbon monoxide (CO). The PSD program 
    under part C of title I of the Act applies to those criteria air 
    pollutants other than carbon monoxide (attainment area) while the major 
    non-attainment NSR program under part D of title I of the Act applies 
    to carbon monoxide.
        Because the SIP for the State of Minnesota did not meet the PSD 
    requirements of section 160-165 of the Act, EPA promulgated a PSD 
    program for the State by incorporating by reference the provisions of 
    40 CFR 52.21(b) through (w) into the applicable state plan for the 
    State of Minnesota (see 40 CFR 52.1234). In addition, EPA delegated 
    authority to the MPCA as the PSD permitting agency in Minnesota. 
    Therefore, MPCA will, with EPA oversight, draft, accept public comment 
    on, and issue any Andersen PSD permit, subject to procedural 
    requirements in 40 CFR 52.21 and 40 CFR part 124.
    
    C. Proposed Regulatory Changes
    
    1. Synthetic Minor Limits
        During the period from 1990 to 1995, Andersen developed and 
    installed 12 waterborne inline wood treatment systems and, within the 
    door subplant, three solventborne paint systems. In order to avoid PSD 
    review, Andersen obtained two minor new source review permits from MPCA 
    containing operational and control limitations on each of these 
    systems. These limitations are sometimes called ``synthetic minor'' 
    limits because they serve to limit the net emissions increase 
    associated with the proposed new units or systems to less than the 
    applicable significance level and thereby keep them out of PSD review. 
    As part of the Andersen Project XL pilot, Andersen seeks to replace 
    certain synthetic minor VOC limits with the tiered per unit of 
    production limits and the VOC PAL, as well as all the other aspects of 
    the project described in the draft FPA.
        In order to meet the goals embodied in the tiered per unit of 
    production limits, Andersen needs to utilize its waterborne inline wood 
    treatment systems at a capacity level higher than presently allowed 
    under the synthetic minor limits. Accordingly, Andersen seeks relief 
    from the synthetic VOC operational limits on its waterborne inline wood 
    treatment systems. Andersen's existing waterborne systems are superior 
    in terms of VOC emissions per unit of production as compared to the 
    solvent-based systems (see Table 2).
        Andersen also needs to fully utilize the three solventborne paint 
    systems within the door subplant, which are subject to both operational 
    and control limits (a catalytic oxidizer). According to information 
    provided by Andersen, assuming the catalytic oxidizer is in use, the 
    door plant paint lines emit approximately 1.6 pounds of VOCs for each 
    gallon of combined coatings applied. Other paint lines, which are not 
    subject to synthetic minor limits, emit approximately 4.5 pounds of 
    VOCs for each gallon of combined coatings applied. So, with respect to 
    use limits, the door subplant paint lines are lower emitting than 
    Andersen's other paint lines.
        Under its existing permits, Andersen is required to control VOC 
    emissions from the door subplant paint lines by operating a catalytic 
    oxidizer. Andersen requests that it be allowed to shut the catalytic 
    oxidizer off so long as it is able to maintain compliance with the VOC 
    PAL and per unit of production limits. Andersen believes that beyond 
    any cost savings, this would give them the flexibility to use the 
    catalytic oxidizer to more effectively control VOCs elsewhere in the 
    facility or to address community concerns about odors, which may or may 
    not be associated with use of the catalytic oxidizer.
        Andersen has explained that in order to maintain compliance with 
    the per unit of production limit it will need to reduce VOC emissions 
    on a per unit basis prior to shutting down the catalytic oxidizer. For 
    example, Andersen intends to convert the solvent based preservative 
    application systems, which account for approximately sixty percent of 
    VOC emissions from the door plant paint lines, to in-line waterborne 
    treatment systems. Still, Andersen believes that it will have to 
    further reduce VOC emissions from other sources within the facility 
    prior to shutting down the catalytic oxidizer.
        EPA believes that under the following permit and FPA conditions, 
    Andersen may be allowed to shut down the catalytic oxidizer:
        (1) Andersen must obtain MPCA's approval prior to shutting down the 
    catalytic oxidizer by demonstrating that:
    
        (a) in accordance with the MPCA Health Risk Assessment described 
    in section II.D.1.e. of the FPA, shut down of the catalytic oxydizer 
    will not present an unacceptable risk to public health;
        (b) Andersen's overall reduction of VOC emissions on a per unit 
    basis is sufficient to ensure continued compliance with the per unit 
    of production limit and the VOC cap; and
        (c) the CAC has agreed to the shut down of the oxidizer.
    
        (2) Once the oxidizer is shut down, Andersen may use it to control 
    VOC emissions elsewhere at the facility, leave it in place and 
    available for use on door plant paint line emissions, or, with MPCA 
    approval, dismantle it. If Andersen elects to dismantle the oxidizer, 
    it does so with the express understanding that it may be required to 
    reinstall the oxidizer or other appropriate control equipment if 
    necessary to comply with project emission limits during the project 
    term or applicable emission limits at the end of the project term. In 
    addition, costs associated with retrofitting or installing an oxidizer, 
    if necessary, will not be factors in determining whether an oxidizer is 
    appropriate or required.
        (3) Cost savings associated with shutting down the oxidizer must be 
    shown to be reinvested in VOC emission reduction projects.
        The applicable PSD regulations would not allow Andersen to relax 
    the
    
    [[Page 19103]]
    
    synthetic minor limits, unless Andersen subjected the systems to PSD 
    review. (See 40 CFR 52.21(r)(4), which has been incorporated into the 
    Minnesota SIP at 40 CFR 52.1234(b)). When a source or modification that 
    is minor because of enforceable operating limits later applies for a 
    relaxation of those limits, 52.21(r)(4) requires that PSD apply to the 
    source or modification as if the source or modification had not yet 
    been constructed.
        The primary purpose of 52.21(r)(4) is to prevent a source from 
    circumventing PSD and NSR permitting requirements by obtaining a 
    synthetic minor limit for a new or modified emission unit and 
    thereafter seeking to relax the limit, without undergoing PSD review. 
    See 45 FR 52676, 52689 (Aug. 7, 1980). The provision is a broadly 
    designed safeguard to prevent sources from improperly disaggregating a 
    major modification into two separate parts--an initial synthetic minor 
    modification and a subsequent relaxation of the synthetic minor limit--
    neither of which would be subject to PSD.
        EPA believes it has broad discretion to tailor the safeguard 
    embodied in section 52.21(r)(4) based on relevant factors. 
    Specifically, the Andersen XL project will contain several distinctive 
    features which assure EPA that Andersen is not circumventing the PSD 
    requirements. In this context, EPA believes it may eliminate the 
    section 52.21(r)(4) safeguard, as it applies to certain synthetic minor 
    VOC limits at the Andersen facility. First, Andersen is voluntarily 
    adopting a plantwide cap of 2397 tpy of VOC emissions, which is based 
    on lower than actual emissions levels from a period representative of 
    normal source operation. The plantwide cap eliminates the historic 
    problem in the PSD program that sources sometimes are able to increase 
    emissions above representative actual emissions levels without 
    undergoing PSD review by adding small projects which by themselves do 
    not trigger PSD and are not subject to any cumulative plantwide limit 
    on emissions. The fact that Andersen's VOC cap is based on actual 
    emissions places it on an even footing with respect to sources which do 
    not take a PAL and ensures that Andersen does not gain emissions 
    credits merely for reducing allowable emissions. Second, Andersen's 
    annual VOC emissions have declined steadily and significantly over time 
    since 1990, so EPA believes it is important to recognize that Andersen 
    likely could have adopted a plantwide, actual emissions-based VOC PAL 
    immediately prior to the 1990 synthetic minor permits (when its actual 
    VOC emissions level was 3,753 tpy) and thereby avoided the need to 
    obtain and accept synthetic minor limits for each new waterborne system 
    and the door plant paint lines in 1990 and 1995. Although determining 
    what could have happened or would have happened if different choices 
    were made is always difficult, EPA believes with reasonable certainty 
    that the 2397 tpy VOC PAL is at least equivalent to what Andersen could 
    have done outside of Project XL and is overall better for the 
    environment. Third, the tiered performance ratio approach will serve to 
    provide incentives for Andersen to reduce emissions further. Finally, 
    EPA reserves the right to terminate the project if there is no 
    environmental improvement.
        This limited replacement of the section 52.21(r)(4) safeguard is an 
    approach to preventing circumvention of the PSD program that, while not 
    the one generally adopted by the Agency, merits consideration on a 
    pilot project basis. If the project demonstrates that such an approach 
    leads to superior environmental and economic results and if EPA 
    determines that such an approach is transferable to other situations, 
    it could be considered for broader application. EPA emphasizes that 
    this innovative approach is not being adopted at this time for any 
    source other than the Andersen Bayport facility and indeed is being 
    adopted for Andersen only as to certain identified synthetic VOC 
    limits.
    2. Duration of PALs
        The expected duration of the Andersen Project XL pilot is 10 years. 
    Therefore, Andersen's XL project contemplates an effective period of 10 
    years for the PALs under the project. However, as discussed in further 
    detail below, applicable PSD requirements would limit the effectiveness 
    of Andersen's PAL to 5 years. Therefore, in order to implement the 
    Andersen Project XL pilot the PSD requirements must be modified to 
    allow the PAL to remain effective for 10 years.
        In addition, the Minnesota XL permit will include Andersen's Title 
    V permit. The Title V permit term may not exceed 5 years. As a result, 
    EPA anticipates that the Title V permit will be renewed after the 
    initial five-year term. EPA also anticipates that the VOC and PM/
    PM10 PALs will continue unchanged in the new permit.
        Under present regulations, a source that adds or modifies a unit 
    that would result in a significant emissions increase may ``net'' that 
    particular change out of review if the new emission increase plus the 
    sum of all other contemporaneous credible increases and decreases at 
    the source is less than significant. Under current requirements, PALs 
    are considered a form of netting whereby a range of future changes at a 
    source is determined beforehand not to result in a net emissions 
    increase, such that these changes may occur without triggering PSD 
    requirements. The Federal PSD requirements at 40 CFR 52.21(b)(3)(ii)(a) 
    limit the period within which changes may be considered contemporaneous 
    to 5 years and, therefore, limit the effectiveness of a PAL to 5 years. 
    States implementing a PSD or nonattainment NSR program under an EPA-
    approved SIP may define a different reasonable contemporaneous period.
        The current regulatory requirement regarding contemporaneity 
    derives from the interpretation of the Act's provisions governing 
    modifications set forth in Alabama Power Co. v. Costle, 636 F.2d 323 
    (D.C. Cir. 1979). Among other things, the court interpreted the statute 
    as providing for plantwide netting limited, however, to substantially 
    contemporaneous changes. The court explained that EPA retains 
    discretion to define ``substantially contemporaneous.'' Id. at 402. 
    Thereafter, EPA codified contemporaneity as a regulatory requirement. 
    See 45 FR 52676, 52700-52702 (August 7, 1980).
        In the specific context of the Andersen Project XL pilot, EPA is 
    proposing a 10 year contemporaneous period to facilitate the 10 year 
    duration of the Andersen Project XL pilot. When issuing permits to 
    implement the VOC and non-milling PM/PM10 caps, MPCA will 
    set the cap limits so that any changes during the project term do not 
    result in a significant net emissions increase. Consequently, complying 
    with the cap would demonstrate that no significant net emissions 
    increase is occurring at the facility. In addition, EPA recognizes that 
    Andersen is voluntarily making several important commitments which will 
    result in superior environmental performance: (1) the VOC and non-
    milling PM/PM10 caps, (2) the VOC performance ratio, (3) 
    control of all existing and future milling operations with baghouse 
    filters, (4) emission limits for new or reconstructed paintline or 
    preservative application equipment based on the current best performing 
    processes at Andersen, and (5) the health risk analysis for toxic air 
    emissions. Under these circumstances, EPA believes that a 10 year 
    contemporaneous period for the VOC and non-milling PM/PM10 
    PALs is appropriate.
    
    [[Page 19104]]
    
    3. Duration of Flexibility
        This site specific rule will expire 10 years from the date it is 
    promulgated. The parties have described in the FPA a process for 
    winding down the Andersen Project XL pilot. At least two years prior to 
    the project's expected conclusion, Andersen, MPCA, and EPA will 
    initiate a process to evaluate the project. The goal of the evaluation 
    will be to establish a process to evaluate the project and to determine 
    the terms of the final permit for the facility at the end of the 10-
    year project term. This evaluation shall conclude by no later than 18 
    months prior to the project's expected conclusion. The evaluation will 
    review the project's environmental results and impact, Andersen's 
    performance, and other relevant factors, as determined by all parties. 
    If the evaluation proves the project a success, Andersen may propose to 
    MPCA, EPA and the CAC to extend the project term and the XL permit 
    conditions described in this FPA through issuance of a final permit. 
    The final permit may incorporate limits similar to the limits 
    applicable during the project. If the parties do not agree to extend 
    the project, Andersen will submit an implementation schedule (as 
    discussed below) to achieve compliance with all requirements applicable 
    at the end of the 10-year project term.
        If, based on the evaluation, the project should not be extended, 
    Andersen will submit to EPA and MPCA an implementation schedule 
    specifying how Andersen will transition into compliance with all then 
    applicable requirements at the end of the 10-year project term. No 
    later than 12-months prior to the expiration of the project term, the 
    parties will agree to a 12-month implementation schedule. The 
    implementation schedule is intended to reflect Andersen's best efforts 
    to transition into compliance with all then applicable requirements as 
    quickly as practicable within the 12-month transitional period. In no 
    event will the implementation schedule extend beyond the end of the 10-
    year project term. The implementation schedule submitted by Andersen 
    must contain interim calendar, or milestone, dates for the purchase and 
    installation of any necessary equipment, performance testing, and other 
    necessary measures.
        The enforceable limits established as part of the project (i.e., 
    the VOC and PM/PM10 emissions caps, as well as the per unit 
    of production limit) will continue to be enforceable during the project 
    evaluation process and any transitional period as described above. In 
    any event, a final permit will be issued to either (1) extend the 
    project through the issuance of a final permit, or (2) transition 
    Andersen to compliance with all requirements applicable at the end of 
    the 10-year project term. The final permit will be based on the 
    permitting requirements, which are applicable at the conclusion of the 
    project. The applicable requirements that will govern the facility at 
    the end of the project's 10-year term will be included in the final 
    permit.
        In addition, the Parties have agreed to include rewards as 
    incentives for Andersen to achieve superior environmental performance. 
    For performance below the reward limit for 13 tracking periods or more, 
    Andersen may request an extension of the duration of the current 
    project. If Andersen chooses this reward, Andersen would have to 
    demonstrate to U.S. EPA and MPCA that extension is not only consistent 
    with the goals of the current project, but also that the extension is 
    consistent with EPA rules and policy concerning the duration of plant-
    wide applicability limit permits. Any such extension would be treated 
    as a modification of Andersen's Minnesota XL Permit which would be 
    accompanied by any necessary rulemaking by EPA. Both the modification 
    and rulemaking would be subject to applicable public notice and comment 
    requirements.
    4. Summary
        Therefore, under the specific circumstances at Andersen, within the 
    limited context of Project XL, and in advancement of the overall 
    purpose of the PSD program of the CAA, EPA proposes to modify the 
    applicable federally promulgated state plan for Minnesota so that MPCA 
    may issue Andersen a PSD (as EPA's delegatee), minor NSR, and Title V 
    permit: (1) relaxing certain existing synthetic minor VOC limits 
    without requiring PSD review, within the context of the Andersen XL 
    project, and (2) imposing VOC and PM/PM10 PALs based on 10 
    year contemporaneous periods.
    
    IV. Additional Information
    
    A. Public Hearing
    
        A public hearing will be held, if requested, to provide opportunity 
    for interested persons to make oral presentations regarding the 
    proposed regulation in accordance with section 307(d)(5) of the Clean 
    Air Act. Persons wishing to make oral presentation on the draft FPA or 
    proposed rule to implement the Andersen XL project should contact the 
    EPA at the address given in the ADDRESSES section of this document. Any 
    member of the public may file a written statement before, during, or 
    within 30 days after the hearing. Written statements should be sent to 
    EPA at the addresses given in the ADDRESSES section of this document. 
    If a public hearing is held, a verbatim transcript of the hearing and 
    written statements will be available for inspection and copying during 
    normal business hours at the EPA addresses given in the ADDRESSES 
    section of this document.
    
    B. Executive Order 12866
    
        Because this rule affects only one facility, it is not a rule of 
    general applicability and therefore not subject to OMB review and 
    Executive Order 12866. In addition, OMB has agreed that review of site 
    specific rules under Project XL is not necessary.
    
    C. Regulatory Flexibility
    
        The Regulatory Flexibility Act (RFA) generally requires an agency 
    to conduct a regulatory flexibility analysis of any rule subject to 
    notice and comment rulemaking requirements unless the agency certifies 
    that the rule will not have significant economic impact on a 
    substantial number of small entities. Small entities include small 
    businesses, small not-for-profit enterprises, and small governmental 
    jurisdictions. This proposed rule would not have a significant impact 
    on a substantial number of small entities because it only affects one 
    source, the Andersen Bayport facility, which is not a small entity. 
    Therefore, I certify that this action will not have a significant 
    economic impact on a substantial number of small entities.
    
    D. Paperwork Reduction Act
    
        This action applies only to one company, and therefore requires no 
    information collection activities subject to the Paperwork Reduction 
    Act, and therefore no information collection request (ICR) will be 
    submitted to OMB for review in compliance with the Paperwork Reduction 
    Act, 44 U.S.C. 3501 et seq.
    
    E. Unfunded Mandates Reform Act
    
        Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
    Law 104-4, establishes requirements for Federal agencies to assess the 
    effects of their regulatory actions on State, local and tribal 
    governments and the private sector. Under section 202 of the UMRA, EPA 
    generally must prepare a written statement, including a cost-benefit 
    analysis, for proposed and final rules with ``Federal mandates'' that 
    may result in expenditures to State, local,
    
    [[Page 19105]]
    
    and tribal governments, in the aggregate, or to the private sector, of 
    $100 million or more in any one year. Before promulgating an EPA rule 
    for which a written statement is needed, section 205 of the UMRA 
    generally requires EPA to identify and consider a reasonable number of 
    regulatory alternatives and adopt the least costly, most cost-effective 
    or least burdensome alternative that achieves the objectives of the 
    rule. The provisions of section 205 do not apply when they are 
    inconsistent with applicable law. Moreover, section 205 allows EPA to 
    adopt an alternative other than the least costly, most cost-effective 
    or least burdensome alternative if the Administrator publishes with the 
    final rule an explanation why the alternative was not adopted. Before 
    EPA establishes any regulatory requirements that may significantly or 
    uniquely affect small governments, including tribal governments, it 
    must have developed under section 203 of the UMRA a small government 
    agency plan. The plan must provide for notifying potentially affected 
    small governments, enabling officials of affected small governments to 
    have meaningful and timely input in the development of EPA regulatory 
    proposals with significant Federal intergovernmental mandates, and 
    informing, educating, and advising small governments on compliance with 
    the regulatory requirements.
        As noted above, this rule is limited to Andersen's facility in 
    Bayport, Minnesota. EPA has determined that this rule does not contain 
    a Federal mandate that may result in expenditures of $100 million or 
    more for State, local, and tribal governments, in the aggregate, or the 
    private sector in any one year. Thus, today's rule is not subject to 
    the requirements of sections 202 and 205 of the UMRA. Nevertheless, in 
    developing this rule, EPA worked closely with MPCA and received 
    meaningful and timely input in the development of this rule. EPA also 
    has determined that this rule contains no regulatory requirements that 
    might significantly or uniquely affect small governments.
    
    F. Executive Order 13045: Protection of Children From Environmental 
    Health Risks and Safety Risks
    
        Executive Order 13045, ``Protection of Children from Environmental 
    Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies 
    to any rule that: (1) Is determined to be ``economically significant,'' 
    as defined under Executive Order 12866; and (2) concerns an 
    environmental health or safety risk that EPA has reason to believe may 
    have a disproportionate effect on children. If the regulatory action 
    meets both criteria, the Agency must evaluate the environmental health 
    or safety effects of the planned rule on children, and explain why the 
    planned regulation is preferable to other potentially effective and 
    reasonably feasible alternatives considered by the Agency.
        The EPA interprets E.O. 13045 as applying only to those regulatory 
    actions that are based on health or safety risks, such that the 
    analysis required under section 5-501 of the Order has the potential to 
    influence the regulation. This proposed action is not subject to E.O. 
    13045 because it is not economically significant as defined in E.O. 
    12866, and it is based on technology performance and implements 
    previously promulgated health or safety-based ozone and particulate 
    matter Federal National Ambient Air Quality Standards (NAAQS). The 
    effects of ozone and particulate matter on children's health was 
    addressed in detail in EPA's rulemaking to establish these NAAQS, and 
    EPA is not revisiting those issues here.
    
    G. Executive Order 12875: Enhancing Intergovernmental Partnerships
    
        Under Executive Order 12875, EPA may not issue a regulation that is 
    not required by statute and that creates a mandate upon a State, local 
    or tribal government, unless the Federal government provides the funds 
    necessary to pay the direct compliance costs incurred by those 
    governments, or EPA consults with those governments. If EPA complies by 
    consulting, Executive Order 12875 requires EPA to provide to the Office 
    of Management and Budget a description of the extent of EPA's prior 
    consultation with representatives of affected State, local and tribal 
    governments, the nature of their concerns, copies of any written 
    communications from the governments, and a statement supporting the 
    need to issue the regulation. In addition, Executive Order 12875 
    requires EPA to develop an effective process permitting elected 
    officials and other representatives of State, local and tribal 
    governments ``to provide meaningful and timely input in the development 
    of regulatory proposals containing significant unfunded mandates.''
        Today's rule does not create a mandate on State, local or tribal 
    governments. The rule does not impose any enforceable duties on these 
    entities. Accordingly, the requirements of section 1(a) of Executive 
    Order 12875 do not apply to this rule. Nevertheless, in developing this 
    rule, EPA worked closely with MPCA and received meaningful and timely 
    input in the development of this rule.
    
    H. Executive Order 13084: Consultation and Coordination With Indian 
    Tribal Governments
    
        Under Executive Order 13084, EPA may not issue a regulation that is 
    not required by statute, that significantly or uniquely affects the 
    communities of Indian tribal governments, and that imposes substantial 
    direct compliance costs on those communities, unless the Federal 
    government provides the funds necessary to pay the direct compliance 
    costs incurred by the tribal governments. If the mandate is unfunded, 
    EPA must provide to the Office of Management and Budget, in a 
    separately identified section of the preamble to the rule, a 
    description of the extent of EPA's prior consultation with 
    representatives of affected tribal governments, a summary of the nature 
    of their concerns, and a statement supporting the need to issue the 
    regulation. In addition, Executive Order 13084 requires EPA to develop 
    an effective process permitting elected and other representatives of 
    Indian tribal governments to provide meaningful and timely input in the 
    development of regulatory policies on matters that significantly or 
    uniquely affect their communities. Today's rule does not significantly 
    or uniquely affect the communities of Indian tribal governments. There 
    are no communities of Indian tribal governments located in the vicinity 
    of the Andersen facility. Accordingly, the requirements of section 3(b) 
    of Executive Order 13084 do not apply to this rule.
    
    I. National Technology Transfer and Advancement Act of 1995 (``NTTAA'')
    
        Section 12(d) of NTTAA, Pub. L. 104-113, section 12(d) (15 U.S.C. 
    272 note) directs EPA to use voluntary consensus standards in its 
    regulatory activities unless to do so would be inconsistent with 
    applicable law or otherwise impractical. Voluntary consensus standards 
    are technical standards (e.g., materials specifications, test methods, 
    sampling procedures, and business practices) that are developed or 
    adopted by voluntary consensus standards bodies. The NTTAA directs EPA 
    to provide Congress, through OMB, explanations when the Agency decides 
    not to use available and applicable voluntary standards.
        This proposed rulemaking does not involve technical standards. 
    Therefore, EPA is not considering the use of any voluntary consensus 
    standards.
    
    [[Page 19106]]
    
    List of Subjects in 40 CFR Part 52
    
        Environmental protection, Air pollution control, Intergovernmental 
    Relations, Ozone, Particulate matter, Reporting and recordkeeping 
    requirements, Volatile organic compounds
    
        Dated: April 8, 1999.
    Carol M. Browner,
    Administrator.
    
        For the reasons set forth in the preamble, part 52 of chapter I of 
    title 40 of the Code of Federal Regulations is proposed to be amended 
    as follows:
    
    PART 52--[AMENDED]
    
        1. The authority citation for part 52 continues to read as follows:
    
        Authority: 42 U.S.C. 7401, et seq.
    
    Subpart Y--Minnesota
    
        2. Subpart Y is amended by adding a new Sec. 52.1246 to read as 
    follows:
    
    
    Sec. 52.1246  Prevention of significant deterioration of air quality 
    for Andersen Corporation's facility in Bayport, Minnesota.
    
        (a) Applicability. (1) This section applies only to the window and 
    patio door manufacturing facility, commonly referred to as Andersen 
    Windows, located at 4001 Stagecoach Trail and 100 Fourth Avenue, North, 
    Bayport, Minnesota.
        (2) This section sets forth the prevention of significant 
    deterioration of air quality preconstruction review requirements for 
    volatile organic compound (``VOC'') and non-milling PM/PM10 
    emissions.
        (3) For all other units and pollutants not specifically identified 
    in this section which are subject to regulation under the Act, the 
    preconstruction review requirements of Sec. 52.1234 still apply.
        (b) Regulations for Preventing Significant Deterioration of Air 
    Quality.
        (1) The provisions of 40 CFR 52.21(b) through (w) are applicable 
    and made a part of the state plan for the State of Minnesota, with the 
    exceptions and additions set forth in paragraphs (b)(2), (b)(3), and 
    (b)(4) of this section.
        (2) For the purposes of this Section, and in addition to paragraph 
    (b)(1) of this section:
        (i) ``Existing waterborne inline treatment units'' shall mean the 
    following specific units at the Andersen facility:
        (A) Five waterborne inline wood treatment systems in the main 
    facility, permit number 549-90-I/O-2.
        (B) Five waterborne inline wood treatment systems in the door 
    subplant, permit number 549-90-I/O-2.
        (C) Two waterborne inline wood treatment systems, permit number 
    16300001-017.
        (ii) ``Existing door subplant paint lines'' shall mean the three 
    solventborne paint and pretreatment systems located in the Andersen 
    facility door subplant, permit number 549-90-I/O-2.
        (iii) ``Milling operations'' shall be all those activities which 
    involve the cutting and shaping of wood or Fibrex except that shaping 
    by extrusion shall not be considered milling.
        (iv) ``Non-milling operations'' shall be all those activities that 
    generate PM/PM10 emissions and which are not milling 
    operations.
        (3) With respect to existing inline waterborne treatment units and 
    existing door subplant paint lines only:
        (i) ``An increase in the hours of operation or in the production 
    rate.'' applies instead of 40 CFR 52.21(b)(2)(iii)(f).
        (ii) The requirements of 40 CFR 52.21(r)(4) shall not apply.
        (4) With respect to VOC and non-milling PM/PM10 
    emissions, ``The date 10 years before construction on the particular 
    change commences; and'' applies instead of 40 CFR 52.21(b)(3)(ii)(a).
        (c) This rule expires [date 10 years from effective date of the 
    final rule].
    
    [FR Doc. 99-9723 Filed 4-16-99; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Published:
04/19/1999
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed rule; request for comments on draft final project agreement.
Document Number:
99-9723
Dates:
Comments. All public comments must be received on or before May 19, 1999. If a public hearing is held, the public comment period would remain open until June 3, 1999
Pages:
19097-19106 (10 pages)
Docket Numbers:
FRL-6324-5
PDF File:
99-9723.pdf
CFR: (1)
40 CFR 52.1246