[Federal Register Volume 61, Number 90 (Wednesday, May 8, 1996)]
[Rules and Regulations]
[Pages 20734-20736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11329]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 60

[FRL-5467-8]


Amendment to Standards of Performance for New Stationary Sources; 
Small Industrial-Commercial-Institutional Steam Generating Units

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final action.

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SUMMARY: Today's action promulgates revisions to the new source 
performance standards (NSPS) for new, modified, and reconstructed small 
industrial-commercial-institutional steam generating units (40 CFR part 
60, Subpart Dc) that were proposed on November 15, 1995. The revisions 
exclude certain small steam generating units, when conducting 
combustion research, from the category of small steam generating units 
subject to NSPS control requirements for sulfur dioxide (SO2) and 
particulate matter (PM). The NSPS are issued under the authority of 
section 111 of the Clean Air Act (CAA).
    Following promulgation of the NSPS, litigation was filed by Babcock 
and Wilcox, who repeated a concern they had expressed during the public 
comment period following proposal of the NSPS. That is, they had 
requested an exemption from the NSPS for steam generating units of 14.6 
MW (50 million Btu/hr) heat input capacity or less used for combustion 
research based on intermittent and infrequent operation.
    Discussions with Babcock and Wilcox made it clear that there is a 
legitimate concern regarding the ability of experimental, and sometimes

[[Page 20735]]

unpredictable, air pollution control technology to consistently meet 
the NSPS. This, coupled with the fact that these steam generating units 
provide valuable data on both the combustion process and methods of air 
pollution control which result in improved fuel efficiency, improved 
air pollution control efficiency, and less expensive air pollution 
control, led the EPA to provide the exemption in an effort to encourage 
combustion research.

EFFECTIVE DATE: May 8, 1996.

ADDRESSES: Docket. Docket No. A-86-02, containing information used in 
developing the original NSPS and the revisions, and the comments 
received during the public comment period, is available for public 
inspection and copying between 8 a.m. and 4 p.m., Monday through 
Friday, at the U.S. Environmental Protection Agency, Air and Radiation 
Docket and Information Center (6102), 401 M Street, S.W., Washington, 
D.C. 20460. The docket is located at the above address in room M-1500, 
Waterside Mall (ground floor). The materials are available for review 
in the docket center or copies may be mailed on request from the Air 
and Radiation Docket and Information Center by calling (202) 260-7548 
or -7549. The FAX number for the Center is (202) 260-4000. A reasonable 
fee may be charged for copying docket materials.

FOR FURTHER INFORMATION CONTACT: For information concerning specific 
aspects of this action, contact Mr. Rick Copland, (919) 541-5265 , or 
Mr. Fred Porter (919) 541-5251 Combustion Group, Emission Standards 
Division (MD-13), U.S. Environmental Protection Agency, Research 
Triangle Park, North Carolina 27711.

SUPPLEMENTARY INFORMATION: Today's rule resolves litigation in the case 
of Babcock and Wilcox Company v. U.S. EPA, No. 90-1509 (D.C. Cir.) (See 
60 FR 57373, November 15, 1995). The rule applies to any small steam 
generating unit used for combustion research as long as the heat 
generated during the conduct of such combustion research is not used 
for any purpose other than preheating the combustion air for the steam 
generating unit (i.e., the heat generated is released to the atmosphere 
without being used for space heating, process heating, driving pumps, 
preheating combustion air for other units, generating electricity, or 
any other purpose).
    Five comment letters were received during the public comment period 
on the November 15, 1995 proposal. All five commentors supported the 
proposal. One commentor suggested that the EPA extend today's rule to 
large steam generating units regulated under 40 CFR Part 60, Subpart Db 
and that the EPA allow the heat generated during the research activity 
to be used productively. One commentor suggested that all natural gas-
fired steam generating units be exempt from the provisions of Subpart 
Dc, including notification requirements. The comments did not reveal 
any facilities that conduct combustion research with small steam 
generating units and that also use the heat generated during periods of 
combustion research for purposes other than preheating the combustion 
air for the steam generating unit.
    The EPA believes that today's rule already represents a significant 
exercise of regulatory flexibility which does not warrant further 
expansion at this time. Accordingly, the EPA believes that the 
prohibition on the use of the heat generated during the conduct of 
combustion research is appropriate in that it allows for the conduct of 
such research without compromising the EPA's ability to enforce the 
NSPS for small steam generating units (See 60 FR at 57374). Indeed, 
this limitation merely reflects the existing operating practice of the 
Babcock and Wilcox steam generating unit at issue (described below). 
The EPA believes that this provision is also appropriate for any other 
steam generating unit that conducts combustion research.
    As discussed in the November 15, 1995 proposal, the EPA agreed to 
revise the applicability of the SO2 and PM emission control 
requirements of 40 CFR Part 60, Subpart Dc because of the limited 
potential impact of combustion research on the environment: Babcock & 
Wilcox Company, the petitioner which requested the revision of the 
applicability of the standards of performance, operates a single small 
steam generating unit occasionally (less than five percent of the 
unit's operating time) to evaluate the performance of, and to develop, 
unproven combustion technologies. Significantly, Babcock and Wilcox 
Company also does not use the heat that the steam generating unit 
produces during periods of combustion research for any purpose (such as 
space heating, process heating, electric generation, etc.) other than 
preheating the combustion air for the steam generating unit. 
Accordingly, in order to minimize the potential for inappropriate 
claims of combustion research (potentially undermining EPA's ability to 
enforce the standards of performance for small steam generating units), 
the EPA has conditioned the exclusion of certain limited combustion 
research activities from the standards of performance on the 
requirement that a steam generating unit not use the heat produced 
during combustion research for purposes other than preheating the 
combustion air for the steam generating unit.
    The comments that recommend expanding today's rule to include large 
steam generating units regulated under Subpart Db or all natural gas-
fired units are not appropriate for consideration within the scope of 
this limited action. The EPA will consider these comments as well as 
the comment concerning the definition of combustion research as a part 
of the ongoing activity to develop and/or revise standards of 
performance for industrial steam generating units under CAA sections 
111 and 112.

Economic and Regulatory Impacts

    Today's rule will impose no additional costs on the regulated 
community or the national economy. It would reduce the costs of 
compliance for some small steam generating units when conducting 
combustion research by not requiring them to comply with the NSPS for 
new, modified, and reconstructed small industrial-commercial-
institutional steam generating units. Accordingly, the EPA has 
determined that today's rule: (1) does not constitute a ``significant 
rule'' under Executive Order 12286 (the promulgation would not result 
in any increase in costs or prices and would not disrupt market 
competition), (2) does not constitute a substantial revision that would 
require an economic impact assessment pursuant to CAA section 317, (3) 
does not constitute a Federal mandate under Title II of the Unfunded 
Mandates Reform Act of 1995 (UMRA), P.L. 104-4, for State, local, or 
tribal governments or the private sector, (4) does not contain 
regulatory requirements that might significantly or uniquely affect 
small governments under Title II of UMRA, and (5) would not affect the 
public reporting burden for the collection of information required, in 
compliance with the Paperwork Reduction Act of 1980, under the NSPS for 
small steam generating units.
    Pursuant to 5 U.S.C. 605(b), the Administrator certifies that these 
revisions would not have a significant impact on a substantial number 
of small entities. Not only would today's rule reduce the regulatory 
burden on the small steam generating units source category, but it has 
previously been determined that, even without today's promulgated 
revisions, the standards would not affect a substantial number of small 
entities (See 55 FR 37682, September 12, 1990).

[[Page 20736]]

List of Subjects in 40 CFR Part 60

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

    Dated: April 30, 1996.
Carol M. Browner,
Administrator.

    For the reasons set out in the preamble, title 40, chapter I of the 
Code of Federal Regulations is amended as set forth below.

PART 60--STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES

    1. The authority citation for part 60 continues to read as follows:

    Authority: 42 U.S.C. 7401, 7411, 7414, 7416, 7429, and 7601.

    2. Section 60.40c is amended by revising paragraph (a) and adding 
paragraphs (c) and (d) to read as follows:


Sec. 60.40c  Applicability and delegation of authority.

* * * * *
    (a) Except as provided in paragraph (d) of this section, the 
affected facility to which this subpart applies is each steam 
generating unit for which construction, modification, or reconstruction 
is commenced after June 9, 1989 and that has a maximum design heat 
input capacity of 29 megawatts (MW) (100 million Btu per hour (Btu/hr)) 
or less, but greater than or equal to 2.9 MW (10 million Btu/hr).
* * * * *
    (c) Steam generating units which meet the applicability 
requirements in paragraph (a) of this section are not subject to the 
sulfur dioxide (SO2) or particulate matter (PM) emission limits, 
performance testing requirements, or monitoring requirements under this 
subpart (Secs. 60.42c, 60.43c, 60.44c, 60.45c, 60.46c, or 60.47c) 
during periods of combustion research, as defined in Sec. 60.41c.
    (d) Any temporary change to an existing steam generating unit for 
the purpose of conducting combustion research is not considered a 
modification under Sec. 60.14.
    3. Section 60.41c is amended by adding a new definition for 
``Combustion research'' in alphabetical order to read as follows:


Sec. 60.41c  Definitions.

* * * * *
    Combustion research means the experimental firing of any fuel or 
combination of fuels in a steam generating unit for the purpose of 
conducting research and development of more efficient combustion or 
more effective prevention or control of air pollutant emissions from 
combustion, provided that, during these periods of research and 
development, the heat generated is not used for any purpose other than 
preheating combustion air for use by that steam generating unit (i.e., 
the heat generated is released to the atmosphere without being used for 
space heating, process heating, driving pumps, preheating combustion 
air for other units, generating electricity, or any other purpose).
* * * * *
[FR Doc. 96-11329 Filed 5-7-96; 8:45 am]
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