[Federal Register Volume 61, Number 87 (Friday, May 3, 1996)]
[Proposed Rules]
[Pages 19887-19889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11079]



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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 63

[AD-FRL-5468-1]


National Emission Standards for Hazardous Air Pollutants for 
Source Categories: Perchloroethylene Dry Cleaning Facilities; 
Amendments

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed amendments to rule.

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SUMMARY: This action proposes amendments to the national emission 
standards for hazardous air pollutants (NESHAP) for perchloroethylene 
(PCE) dry cleaning facilities promulgated in the Federal Register on 
September 22, 1993. The NESHAP was promulgated to minimize emissions of 
PCE, which has been listed by EPA as a hazardous air pollutant (HAP). 
The Administrator is proposing to implement a settlement agreement that 
the EPA has entered into regarding a small number of transfer machines.

DATES: Comments. Comments on the proposed amendments must be received 
by June 17, 1996.
    Public Hearing. Persons requesting a public hearing should contact 
Mr. George Smith at (919) 541-1549 by May 15, 1996. If anyone requests 
a public hearing by May 15, 1996, a public hearing will be held in 
Research Triangle Park, North Carolina. Persons wishing to make oral 
statements at this public hearing must contact Mr. Smith by May 15, 
1996 at (919) 541-1549, Emission Standards Division, U.S. EPA, MD-13, 
Research Triangle Park, NC 27711. Persons interested in attending the 
public hearing should also contact Mr. Smith for information on the 
exact location of the public hearing, if one is requested.

ADDRESSES: Comments. Comments on the proposed amendments should be 
submitted (in duplicate, if possible) to: The Air and Radiation Docket 
and Information Center, U.S. Environmental Protection Agency, Mail Code 
6102, 401 M Street, SW, Washington, DC 20460, attention Docket Number 
A-95-16.
    Docket. Docket Number A-95-16, containing supporting information 
used in developing the proposed amendments, is available for public 
inspection and copying between the hours of 8:00 a.m. and 5:30 p.m., 
Monday through Friday (except for government holidays) at The Air and 
Radiation Docket and Information Center, U.S. Environmental Protection 
Agency, 401 M Street SW., Washington, DC 20460. A reasonable fee may be 
charged for copying.

FOR FURTHER INFORMATION CONTACT: Mr. George Smith at (919) 541-1549, 
Emission Standards Division (MD-13), U. S. Environmental Protection 
Agency, Research Triangle Park, North Carolina 27711.

SUPPLEMENTARY INFORMATION: Regulated entities. Entities regulated by 
this action are dry cleaning facilities that use perchloroethylene. 
Regulated categories and entities include:

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                                                Examples of regulated   
                 Category                             entities          
------------------------------------------------------------------------
Perchloroethylene dry cleaning facilities.  Perchloroethylene dry       
                                             cleaning facilities that   
                                             installed transfer machines
                                             between proposal and       
                                             promulgation.              
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    The above table is an exhaustive guide for readers regarding 
entities to be regulated by this action.
    The information presented in this preamble is organized as follows:

I. Background, Summary, and Rationale for Rule Changes

II. Administrative Requirements
    A. Paperwork Reduction Act
    B. Executive Order 12866 Review
    C. Unfunded Mandates Act
    D. Regulatory Flexibility Act

I. Background, Summary, and Rationale for Rule Changes

    National emission standards for hazardous air pollutants (NESHAP) 
for perchloroethylene (PCE) dry cleaning facilities were promulgated on 
September 22, 1993 (58 FR 49354), and amended on December 20, 1993 (58 
FR 66287), as 40 CFR Part 63, subpart M. On December 20, 1993, the 
International Fabricare Institute (IFI), a trade association 
representing commercial and industrial dry cleaners nationwide, 
submitted a statement of issues to the U.S. Court of Appeals for the 
District of Columbia Circuit challenging the NESHAP. The Agency 
subsequently entered into a settlement agreement with IFI, notice of 
which was published prior to being lodged with the court (60 FR 52000, 
October 4, 1995).
    International Fabricare Institute raised the issue of new transfer 
machines purchased or installed between proposal and promulgation. The 
IFI's concern stems from the fact that the Agency did not propose to 
ban new transfer machines, yet at promulgation did ban such machines. 
The IFI argued that dry cleaners who installed new transfer machines 
between proposal and promulgation did so with the understanding that 
the Agency had not proposed any prohibitions against this. These dry 
cleaners now have no recourse but to scrap these new transfer machines 
and replace them with new dry-to-dry machines in order to comply with 
the NESHAP. The IFI asserted that this is unfair, given these dry 
cleaners acted in accordance with the law to the best of their 
knowledge at the time.
    At the time of proposal, the Agency believed that no new transfer 
machines were being sold or installed, and for this reason did not 
propose to ban purchase of new transfer machines. However, due to new 
information that the Agency received after proposal that is explained 
in the preamble to the final rule, the Agency banned the purchase of 
new transfer machines. The ban was considered reasonable because the 
Agency's analysis showed that emissions from clothing transfer could be 
eliminated by requiring dry-to-dry machines in their place. Emissions 
from clothing transfer account for about 25 percent of transfer machine 
emissions. The Agency's analysis also showed that in the typical case 
where a new dry-to-dry machine was installed instead of a new transfer 
machine, a net savings of $300 per ton of emission reductions would be 
realized by the dry cleaner. Hence, the Agency decided at promulgation 
to effectively ``ban'' new transfer machines from being introduced 
subsequent to promulgation, by making the emission limit for new 
transfer machines impossible to achieve. It was believed this decision 
would have no impact on dry cleaners, since no new transfer machines 
were being purchased or installed. It was only after promulgation that 
it became apparent that a few new transfer machines had been sold and 
installed between proposal and promulgation of the NESHAP.
    The Agency agrees with IFI on this issue. Consequently, the 
Administrator proposes to subcategorize new transfer machines into two 
types: new transfer machines installed after promulgation (i.e., 
September 22, 1993) and new transfer machines installed between 
proposal (i.e., December 9, 1991) and promulgation (i.e., September 22, 
1993). The requirements the Administrator is proposing today for new 
transfer machines installed after promulgation

[[Page 19888]]

do not change from what they are in the NESHAP--under no circumstances 
are new transfer machines installed after promulgation allowed to 
operate. The requirements the Administrator is proposing today for the 
new subcategory, new transfer machines installed between proposal and 
promulgation, are similar to those for existing transfer machines.
    Creation of the subcategory would recognize differences in the 
technologies used at new sources and the achievability of the emissions 
limit by these technologies. As noted, at the time it set the emissions 
limit, the Agency failed to recognize that some owners and operators 
had installed transfer machines after the proposal. Transfer machine 
technology is fundamentally different than dry-to-dry technology. In 
order to stay in business, an owner or operator that had installed new 
transfer machines after proposal would have to purchase both a transfer 
machine system and a dry-to-dry system in time period between December 
9, 1991 (proposal) and September 22, 1996 (final rule compliance date), 
while an owner and operator of a new source built after promulgation 
would only have to purchase one dry-to-dry system. The investment 
required for parties that had installed transfer machines would not be 
achievable for these parties, which are mostly small businesses. The 
proposal would not sacrifice significant emissions reductions because 
the number of affected machines is approximately one-tenth of one 
percent of all dry-cleaning machines. Today's proposal would allow for 
the greatest achievable emissions reductions by both those who had 
installed transfer machines prior to issuance of the final rule and all 
other new sources and would maintain the prospective prohibition on new 
transfer machines.

II. Administrative Requirements

A. Paperwork Reduction Act

    The information collection requirements of the previously 
promulgated NESHAP for PCE Dry Cleaning Facilities were submitted to 
and approved by the Office of Management and Budget. A copy of this 
Information Collection Request (ICR) document (OMB control number 2060-
0234) may be obtained from Sandy Farmer, Information Policy Branch (PM-
223Y); U.S. Environmental Protection Agency; 401 M Street, SW; 
Washington, DC 20460 or by calling (202) 260-2740. Today's changes to 
the NESHAP for PCE Dry Cleaning Facilities do not affect the 
information collection burden estimates made previously.

B. Executive Order 12866 Review

    Under Executive Order 12866 [58 FR 51735, (October 4, 1993)], the 
Agency must determine whether the regulatory action is ``significant'' 
and therefore subject to OMB review and the requirements of the 
Executive Order. The Order defines a ``significant regulatory action'' 
as one that is likely to result in a rule that may:
    1. Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    2. Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    3. Materially alter the budgetary impact of entitlements, grants, 
user fees, or land programs or the rights and obligations of recipients 
thereof; or
    4. Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    This rule was classified ``non-significant'' under Executive Order 
12866 and, therefore, was not reviewed by the Office of Management and 
Budget.

C. Unfunded Mandates Act

    Under Section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a statement to accompany any proposed rule where the 
estimated costs to State, local, or tribal governments, or to the 
private sector, will be $100 million or more in any one year. Under 
Section 205, EPA must select the most cost-effective and least 
burdensome alternative that achieves the objective of the rule and is 
consistent with statutory requirements. Section 203 requires EPA to 
establish a plan for informing and advising any small governments that 
may be significantly impacted by the rule. The unfunded mandates 
statement under Section 202 must include: (1) a citation of the 
statutory authority under which the rule is proposed, (2) an assessment 
of the costs and benefits of the rule, including the effect of the 
mandate on health, safety, and the environment, and the federal 
resources available to defray the costs, (3) where feasible, estimates 
of future compliance costs and disproportionate impacts upon particular 
geographic or social segments of the nation or industry, (4) where 
relevant, an estimate of the effect on the national economy, and (5) a 
description of EPA's prior consultation with State, local, and tribal 
officials.
    The amendments to the NESHAP that the Administrator is proposing 
today will not cause State, local, or tribal governments, or the 
private sector to incur costs that will be $100 million or more in any 
one year. Rather, the costs involved in this rulemaking are relatively 
insignificant in comparison to the $100 million threshold of the 
Unfunded Mandates Act. Therefore, the requirements of the Unfunded 
Mandates Act are not applicable to this rulemaking.

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 requires the identification 
of potentially adverse impacts of federal regulations upon small 
business entities. The Act specifically requires the completion of a 
Regulatory Flexibility Analysis in those instances where small business 
impacts are possible. Because this rulemaking imposes no adverse 
economic impacts, a Regulatory Flexibility Analysis has not been 
prepared.
    Pursuant to the provisions of 5 U.S.C. 605(b), I hereby certify 
that this rule will not have a significant economic impact on a 
substantial number of small business entities.

List of Subjects in 40 CFR Part 63

    Environmental protection, Air pollution control, Intergovernmental 
relations, Reporting and recordkeeping requirements.

    Dated: April 26, 1996.
Carol M. Browner,
Administrator.

    Title 40, chapter I, part 63, of the Code of Federal Regulations is 
proposed to be amended as follows:

PART 63--NATIONAL EMISSION STANDARDS FOR HAZARDOUS AIR POLLUTANTS 
FOR SOURCE CATEGORIES

    1. The authority citation for part 63 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart M--National Perchloroethylene Air Emission Standards for 
Dry Cleaning Facilities

    2. Section 63.320 is amended by revising paragraphs (c), (d), (e), 
and (f) to read as follows:


Sec. 63.320  Applicability.

* * * * *
    (c) Each dry cleaning system that commenced construction or 
reconstruction before December 9, 1991 and each new transfer machine 
system

[[Page 19889]]

and its ancillary equipment that commenced construction or 
reconstruction on or after December 9, 1991 and before September 22, 
1993 shall comply with Secs. 63.322 (c), (d), (i), (j), (k), (l), and 
(m), 63.323(d), and 63.324 (a), (b), (d)(1), (d)(2), (d)(3), (d)(4), 
and (e) beginning on December 20, 1993 and shall comply with other 
provisions of this subpart by September 23, 1996.
    (d) Each existing dry-to-dry machine and its ancillary equipment 
located in a dry cleaning facility that includes only dry-to-dry 
machines, and each existing transfer machine system and its ancillary 
equipment and each new transfer machine system and its ancillary 
equipment installed between December 9, 1991 and September 22, 1993 as 
well as each existing dry-to-dry machine and its ancillary equipment, 
located in a dry cleaning facility that includes both transfer machine 
system(s) and dry-to-dry machine(s) is exempt from Sec. 63.322, 
Sec. 63.323, and Sec. 63.324, except paragraphs 63.322 (c), (d), (i), 
(j), (k), (l), and (m), 63.323(d), and 63.324 (a), (b), (d)(1), (d)(2), 
(d)(3), (d)(4), and (e) if the total perchloroethylene consumption of 
the dry cleaning facility is less than 530 liters (140 gallons) per 
year. Consumption is determined according to Sec. 63.323(d).
    (e) Each existing transfer machine system and its ancillary 
equipment, and each new transfer machine system and its ancillary 
equipment installed between December 9, 1991 and September 22, 1993 
located in a dry cleaning facility that includes only transfer machine 
system(s) is exempt from Sec. 63.322, Sec. 63.323, and Sec. 63.324, 
except paragraphs 63.322 (c), (d), (i), (j), (k), (l), and (m), 
63.323(d), and 63.324 (a), (b), (d)(1), (d)(2), (d)(3), (d)(4), and (e) 
if the perchloroethylene consumption of the dry cleaning facility is 
less than 760 liters (200 gallons) per year. Consumption is determined 
according to Sec. 63.323(d).
    (f) If the total yearly perchloroethylene consumption of a dry 
cleaning facility determined according to Sec. 63.323(d) is initially 
less than the amounts specified in paragraph (d) or (e) of this 
section, but later exceeds those amounts, the existing dry cleaning 
system(s) and new transfer machine system(s) and its (their) ancillary 
equipment installed between December 9, 1991 and September 22, 1993 in 
the dry cleaning facility must comply with Sec. 63.322, Sec. 63.323, 
and Sec. 63.324 by 180 calendar days from the date that the facility 
determines it has exceeded the amounts specified, or by September 23, 
1996, whichever is later.
* * * * *
    3. Section 63.322 is amended by revising paragraphs (a) 
introductory text and (b) introductory text to read as follows:


Sec. 63.322  Standards.

    (a) The owner or operator of each existing dry cleaning system and 
of each new transfer machine system and its ancillary equipment 
installed between December 9, 1991 and September 22, 1993 shall comply 
with either (a)(1) or (a)(2) of this paragraph and shall comply with 
(a)(3) of this paragraph if applicable.
* * * * *
    (b) The owner or operator of each new dry-to-dry machine and its 
ancillary equipment and of each new transfer machine system and its 
ancillary equipment installed after September 22, 1993:
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[FR Doc. 96-11079 Filed 5-2-96; 8:45 am]
BILLING CODE 6560-50-P