[Federal Register Volume 67, Number 39 (Wednesday, February 27, 2002)]
[Rules and Regulations]
[Pages 9156-9172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4064]



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Part VII





Environmental Protection Agency





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40 CFR Part 63



National Emission Standards for Hazardous Air Pollutants for Leather 
Finishing Operations; Final Rule

  Federal Register / Vol. 67, No. 39 / Wednesday, February 27, 2002 / 
Rules and Regulations  

[[Page 9156]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 63

[FRL-7147-8]
RIN 2060-AH17


National Emission Standards for Hazardous Air Pollutants for 
Leather Finishing Operations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This action promulgates national emission standards for 
hazardous air pollutants (NESHAP) for leather finishing operations. The 
EPA has identified these facilities as major sources of emissions of 
hazardous air pollutants (HAP), such as glycol ethers, toluene, and 
xylene. These NESHAP will implement section 112(d) of the Clean Air Act 
(CAA) by requiring all leather finishing operations that are major 
sources to meet HAP emission standards reflecting the application of 
the maximum achievable control technology (MACT). We estimate the final 
NESHAP will reduce nationwide emissions of HAP from leather finishing 
operations by 375 tons per year (tpy). In addition, the final NESHAP 
will reduce non-HAP emissions of volatile organic compounds (VOC) by 
750 tpy. The emissions reductions achieved by these final NESHAP, when 
combined with the emissions reductions achieved by other similar 
standards, will provide protection to the public and achieve a primary 
goal of the CAA.

EFFECTIVE DATE: The effective date is February 27, 2002. The 
incorporation by reference of certain publications listed in the 
regulation is approved by the Director of the Federal Register as of 
February 27, 2002.

ADDRESSES: Docket. Docket No. A-99-38 contains the information 
considered by EPA in developing the NESHAP. This docket is located at 
the U.S. EPA, Air and Radiation Docket and Information Center (Mail 
Code 6102), 401 M Street, SW, Room M-1500, Waterside Mall, Washington, 
DC 20460. The docket may be inspected from 8:30 a.m. to 5:30 p.m., 
Monday through Friday, excluding legal holidays.

FOR FURTHER INFORMATION CONTACT: For information concerning 
applicability and rule determinations, contact the appropriate State or 
local agency representative. If no State or local representative is 
available, contact the EPA Regional Office staff listed in Sec. 63.13. 
For information concerning the analyses performed in developing these 
NESHAP, contact Mr. William Schrock, Organic Chemicals Group, Emission 
Standards Division, (MD-13), U.S. EPA, Research Triangle Park, North 
Carolina 27711; telephone number (919) 541-5032; facsimile number (919) 
541-3470; electronic mail address: [email protected].

SUPPLEMENTARY INFORMATION: Docket. The docket is an organized and 
complete file of all the information considered by the EPA in the 
development of this rulemaking. The docket is a dynamic file because 
material is added throughout the rulemaking process. The docketing 
system is intended to allow members of the public and industries 
involved to readily identify and locate documents so that they can 
effectively participate in the rulemaking process. Along with the 
proposed and promulgated standards and their preambles, the contents of 
the docket will serve as the record in the case of judicial review. 
(See section 307(d)(7)(A) of the CAA.) The regulatory text and other 
materials related to this rulemaking are available for review in the 
docket or copies may be mailed on request from the Air Docket by 
calling (202) 260-7548. A reasonable fee may be charged for copying 
docket materials.
    Public Comments. The NESHAP for leather finishing operations were 
proposed on October 2, 2000 (65 FR 58702) and seven comment letters 
were received on the proposal. The comment letters are available in 
Docket A-99-38, along with a summary of the comment letters and EPA's 
responses to the comments. In response to the public comments, EPA 
adjusted the final NESHAP where appropriate.
    World Wide Web (WWW). In addition to being available in the docket, 
an electronic copy of today's final NESHAP will also be available on 
the WWW through the Technology Transfer Network (TTN). Following the 
Administrator's signature, a copy of the NESHAP will be posted on the 
TTN's policy and guidance page for newly proposed or final rules at 
http://www.epa.gov/ttn/oarpg. The TTN provides information and 
technology exchange in various areas of air pollution control. If more 
information regarding the TTN is needed, call the TTN HELP line at 
(919) 541-5384.
    Regulated Entities. Categories and entities potentially regulated 
by this action include:

------------------------------------------------------------------------
                                                           Examples of
           Category              SIC Code    NAICS Code     regulated
                                                             entities
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Industry.....................         3111         3161  Leather
                                                          finishing
                                                          operations.
Federal government...........  ...........  ...........  Not affected.
State/local/tribal government  ...........  ...........  Not affected.
------------------------------------------------------------------------

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. Not all facilities classified under the NAICS or SIC codes are 
affected. Other types of entities not listed could be affected. To 
determine whether your facility is regulated by this action, you should 
examine the applicability criteria in Sec. 63.5285 of the final NESHAP. 
If you have any questions regarding the applicability of this action to 
a particular entity, consult the person listed in the preceding FOR 
FURTHER INFORMATION CONTACT section.
    Judicial Review. The NESHAP for leather finishing operations were 
proposed on October 2, 2000 (65 FR 58702). This action announces the 
EPA's final decision on the NESHAP. Under section 307(b)(1) of the CAA, 
judicial review of these NESHAP is available by filing a petition for 
review in the U.S. Court of Appeals for the District of Columbia 
Circuit by April 29, 2002. Only those objections to this rule which 
were raised with reasonable specificity during the period for public 
comment may be raised during judicial review. Under section 307(b)(2) 
of the CAA, the requirements that are the subject of today's final 
NESHAP may not be challenged later in civil or criminal proceedings 
brought by the EPA to enforce these requirements.
    Outline. The information presented in this preamble is organized as 
follows:

I. What are the environmental, energy and economic impacts?
II. What changes and clarifications did we make since proposal?
    A. Product Process Operations
    B. MACT Floor Determination
    C. Definitions
    D. Clarifications

[[Page 9157]]

III. How did we respond to significant comments?
    A. Rule Applicability
    B. MACT Floor Determination
    C. Product Process Operations
    D. Definitions
IV. What are the Administrative Requirements for this rule?
    A. Executive Order 12866, Regulatory Planning and Review
    B. Executive Order 13132, Federalism
    C. Executive Order 13175, Consultation and Coordination with 
Indian Tribal Governments
    D. Executive Order 13045, Protection of Children from 
Environmental Health Risks and Safety Risks
    E. Unfunded Mandates Reform Act
    F. Regulatory Flexibility Act (RFA), as Amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 
U.S.C. 601 et seq.
    G. Paperwork Reduction Act
    H. National Technology Transfer and Advancement Act of 1995
    I. Congressional Review Act
    J. Executive Order 13211, Actions Concerning Regulations that 
Significantly Affect Energy Supply, Distribution or Use

I. What Are the Environmental, Energy, and Economic Impacts?

    The nationwide environmental and cost impacts for today's final 
rule are the same as for the proposed rule. For all affected sources, 
we determined the total capital cost associated with the MACT level of 
control is approximately $5.6 million, and a total annualized cost of 
approximately $440,000 per year. The total annualized costs include the 
annualized capital costs and the costs associated with compliance 
monitoring, recordkeeping, and reporting.
    We determined the overall cost associated with the MACT level of 
control to be about $1,300 per ton of HAP emissions reduced. The MACT 
level of control will reduce HAP emissions from existing sources by 
approximately 375 tpy, a reduction of approximately 51 percent. We do 
not expect any significant secondary air emissions, wastewater, solid 
waste, or energy impacts resulting from the final rule.
    Additional information on the costs and environmental impacts of 
control options are discussed in the following four documents, which 
can be found in docket A-99-38:
    (1) National Emission Standards for Hazardous Air Pollutants: 
Leather Finishing Operations, proposed rule (65 FR 58702, October 2, 
2000).
    (2) ``Public Comments and EPA Responses to the Proposed NESHAP for 
Leather Finishing Operations,'' memorandum dated July 17, 2001.
    (3) ``Environmental and Energy Impacts for Leather Tanning and 
Finishing MACT Floor Regulatory Option,'' memorandum dated September 
30, 1999.
    (4) ``Cost Impacts Associated with HAP Emissions Reductions for 
Leather Tanning and Finishing Operations,'' September 2, 1999.
    The economic impacts of the MACT floor are discussed in the 
proposed rule and in the document, ``Economic Impact Analysis of 
Leather Tanning and Finishing Operations NESHAP.'' The major findings 
regarding the economic impacts of the rule have not changed as a result 
of public comments on the proposed rule. The total annualized costs 
associated with these final NESHAP are approximately $440,000 in 1997 
dollars. This cost represents only 0.014 percent of total industry 
revenues based on 1996 value of shipments. Because the total annualized 
costs associated with complying with the final NESHAP are such a small 
percentage of total market revenues (value of shipments), it is 
unlikely that market prices or production will change as a result of 
these final NESHAP. As an alternative to performing a market analysis, 
we evaluated the cost impacts on facility and firm revenues. The 
calculation of cost-to-sales ratios projects that only one firm (owning 
one facility) will have an impact that is greater than 1 percent of 
revenues (1.52 percent). All other firms have impacts well below \1/
10\th of 1 percent and range from 0.00 percent to 0.09 percent of firm 
revenues. Given that overall costs represent a small fraction of 
industry revenues, and individual firm revenues experience minimal 
impacts, we conclude that economic impacts associated with this final 
rule will be negligible.

II. What Changes and Clarifications Did We Make Since Proposal?

    This section describes the major changes made in response to public 
comments and several clarifications that did not change any of the 
proposed regulatory requirements.

A. Product Process Operations

    In the final rule, we have assigned the same HAP emission limit to 
the water-resistant leather product process operations and specialty 
leather finishing product process operations. Thus, the product process 
operation is now referred to as ``water-resistant/specialty.'' In the 
final rule, we have also added a definition for ``specialty leather.'' 
Under the proposed rule, specialty leather finishing had been 
categorized as a nonwater-resistant leather product process operation 
with a corresponding lower HAP emission limit.

B. MACT Floor Determination

    In the final rule, we revised the MACT emission limits as follows:
    (1) The MACT emission limit for existing sources with upholstery 
leather (less than 4 grams finish add-on per square foot) product 
process operations was decreased from 7.1 to 6.8 pounds of HAP per 
1,000 square feet of leather processed.
    (2) The MACT emission limit for new sources with upholstery leather 
(less than 4 grams finish add-on per square foot) product process 
operations was decreased from 2.9 to 2.5 pounds of HAP per 1,000 square 
feet of leather processed.
    (3) The MACT emission limit for existing sources with water-
resistant/specialty leather product process operations was decreased 
from 5.9 to 5.6 pounds of HAP per 1,000 square feet of leather 
processed. The revised definition of water-resistant product process 
operations to include specialty leather increases the emission limit 
for specialty leather product process operations from 3.4 to 5.6 pounds 
of HAP per 1,000 square feet of leather processed.
    (4) The MACT emission limit for existing sources with nonwater-
resistant leather product process operations was increased from 3.4 to 
3.7 pounds of HAP per 1,000 square feet of leather processed.

C. Definitions

    We have revised the definition of ``leather finishing'' to include 
dyes or other non film-forming coatings. We have also included a 
definition to describe a new term, ``specialty leather.''

D. Clarifications

    In the final rule, we have clarified the following points:
    (1) Facilities that finish leather solely for research and 
development purposes are not subject to this rule.
    (2) The quantity of leather shipped can be used as a surrogate for 
the quantity of leather processed in a particular month.
    (3) The quantity of leather processed cannot be recounted when the 
leather needs additional finishing or reworking, unless the piece of 
leather is completely stripped of all applied finishes and reprocessed 
through the entire finishing operation as if it were a new piece of 
leather.
    (4) Paper or cardstock may be used as a substrate material for 
determining the mass of finish add-on.

[[Page 9158]]

    (5) We updated the Maeser Flexes standard testing method to ASTM 
Standard D2099-00.
    (6) A total of 36 samples (i.e., three sections of leather 
substrate from at least 12 sides of leather) must be tested to 
determine the water-resistant characteristics of the leather.

III. How Did We Respond to Significant Comments?

    This section presents a summary of our responses to significant 
public comments received on the proposed rule. A comprehensive summary 
of public comments and responses can be found in the document entitled 
``Public Comments and EPA Responses to the Proposed NESHAP for Leather 
Finishing Operations'' (Docket No. A-99-38).

A. Rule Applicability

    Comment: One commenter requested that provisions in the rule should 
clarify that the ``once in, always in'' policy for MACT standards will 
not apply in certain cases. Primarily, this provision would apply to 
sources that have subsequently implemented pollution-prevention 
techniques to reduce HAP emissions from the source. If the source is 
able to reduce its emission level such that the source is no longer 
considered a major source, the source can then be excluded from the 
MACT requirements.
    Response: EPA has been working to develop regulatory options that 
would allow qualifying sources to satisfy the MACT requirements through 
innovative, streamlined approaches, if, after a source achieves 
compliance with an applicable MACT rule, it achieves HAP emissions 
reductions equivalent to or better than MACT levels of control through 
pollution-prevention measures. The regulatory options under 
consideration will include components that meet the legal requirements 
of the CAA and still resolve the issues regarding pollution prevention. 
We plan to develop rule language to propose to amend either the NESHAP 
General Provisions or existing MACT rules. We project proposing these 
amendments later in 2002.

B. MACT Floor Determination

    Comment: One commenter stated that the original HAP emission data 
submitted by the source for 1997 operations did not include ethylene 
glycol monobutyl ether acetate (EGBE) (CAS No. 112-07-2). The total HAP 
emissions including EGBE is nearly twice the value of their original 
HAP emissions submission. The commenter is concerned that other leather 
finishing operations may have excluded EGBE from their respective total 
HAP emissions estimated. The commenter also requested that the MACT 
floor be determined only from sources that have included EGBE in their 
total HAP emissions estimate.
    Response: In 1999, we distributed a second industry survey to 
ensure that all leather finishing operations had reported all 1997 HAP 
emissions, including glycol ethers and specifically, EGBE. Initially, 
we decided not to use the glycol ethers data gathered from the second 
industry survey in the MACT floor determinations for the proposed rule 
because of some observed inconsistencies with the reported data. Upon 
further evaluation of the glycol ether data, we have been able to 
resolve the inconsistencies. As a result, the total HAP emissions 
reported from six sources have been adjusted. Four sources resulted in 
higher total HAP emissions and two sources resulted in lower HAP 
emissions. The total HAP emissions adjustments affected the MACT 
determination for existing sources with any of the following three 
product process operations: (1) Upholstery leather (less than 4 grams 
finish add-on per square foot), (2) water-resistant/specialty leather, 
and (3) nonwater-resistant leather. In addition, the total HAP 
emissions adjustments affected the MACT determination for new sources 
with upholstery leather (less than 4 grams finish add-on per square 
foot) product process operations.
    We revised the MACT determinations for existing and new sources 
with upholstery leather (less than 4 grams finish add-on per square 
foot) product process operations as a sole result of adjustments to 
reported total HAP emissions. The MACT emission limit for existing 
sources in the upholstery leather (less than 4 grams finish add-on per 
square foot) product process operations decreased from 7.1 to 6.8 
pounds of HAP per 1,000 square feet of leather processed. The MACT 
emission limit for new sources in the upholstery leather (less than 4 
grams finish add-on per square foot) product process operations 
decreased from 2.9 to 2.5 pounds of HAP per 1,000 square feet of 
leather processed.
    We revised the MACT determinations for existing sources with water-
resistant/specialty leather and nonwater-resistant leather product 
process operations as a result of adjustments to the reported total HAP 
emissions and modifications to the definitions of these two product 
process operations. We reassigned specialty leather processes from the 
nonwater-resistant product process operation to the water-resistant 
product process operation based on greater similarities in applied 
coatings. Both specialty and water-resistant leather require the 
application of resins to produce the special color, texture, and water-
resistant qualities.
    Comment: Two commenters requested a recalculation of the MACT floor 
to exclude leather finishing operations that have closed since the 
initial survey of industry data in 1998. The commenters noted that four 
leather finishing operations have closed since 1998. One commenter also 
noted that one operation was recently sold to another company.
    Response: The commenters are correct that four leather finishing 
operations have closed. The determination of a MACT floor is based on a 
single period in time. For the leather finishing operations NESHAP, the 
MACT floor performance levels are based on industry performance data 
for calendar year 1997. Emissions and production rates are dynamic and 
may change since the selected performance period. Since the data 
obtained from the industry were considered representative for calendar 
year 1997, we have decided to make no changes to the MACT floor HAP 
emission limits to account for recent facility closings. In this 
regard, we note that no commenter suggested that the emission 
information from these now-closed facilities was inaccurate or 
unrepresentative. We are not aware of any such deficiencies. Our view 
is the data are both accurate and representative, thus we do not see 
any technical reason for not including this information in a 
calculation of emissions reductions reflecting MACT.

C. Product Process Operations

    Comment: Two commenters requested that we establish an additional 
leather product process operation and corresponding MACT floor 
performance level for ``specialty'' leather finishing. The commenters 
stated that no suitable method has been developed to replace the 
solvents necessary for the finishing of specialty leathers. At the 
sources' current HAP emission rates, the sources will be unable to 
achieve the MACT performance levels. In addition, one commenter 
requested that the additional product process operation be assigned a 
HAP emission limit of no less than 6.0 pounds of HAP per 1,000 square 
feet of leather processed.
    Response: Based on a review of additional information provided by 
one of the commenters on specialty leather processing operations, we 
have decided to modify and expand the definition of the water-resistant 
leather product process operations to specifically include specialty 
leather finishing.

[[Page 9159]]

Under the proposed rule, we categorized specialty leather finishing as 
a nonwater-resistant leather product process operation. The two sources 
identified with specialty leather finishing operations have now shifted 
from the nonwater-resistant product process operation to the water-
resistant/specialty product process operation. Thus, we have revised 
the MACT determination for these two product process operations to 
reflect the updated set of affected sources with each product process 
operation. However, we cannot arbitrarily assign a MACT performance 
level to a product process operation such as the 6.0 pounds of HAP per 
1,000 square feet of leather processed, as suggested by commenters, 
especially without providing any supporting information. The MACT floor 
for existing sources in each leather product process operation must be 
determined as the average emission limitation achieved by the best 
performing 12 percent. In cases where 30 or fewer sources exist in a 
source category, or subcategory (the situation here for nonwater-
resistant leather product process operations), the MACT floor is 
defined as the average emission limitation achieved by the best 
performing five sources.
    The MACT emission limits for the water-resistant/specialty and 
nonwater-resistant leather product process operations are based on the 
top five sources included in the revised definition of these two 
product process operations. The revised emission limits include all 
appropriate adjustments for variability and glycol ethers data from the 
second industry survey, as discussed in a previous comment concerning 
EGBE. As a result of the revised process definitions and adjustments 
for glycol ethers, the MACT emission limit for existing sources in the 
modified water-resistant/specialty leather product process operations 
has decreased from 5.9 to 5.6 pounds of HAP per 1,000 square feet of 
leather processed. The MACT emission limit for existing sources in the 
nonwater-resistant leather product process operations increased from 
3.4 to 3.7 pounds of HAP per 1,000 square feet of leather processed. 
Under the proposed rule, specialty leather operations were established 
with an emission limit of 3.4 pounds of HAP per 1,000 square feet of 
leather processed as a nonwater-resistant product process operation. 
Under the final rule, specialty leather operations are now established 
with an increased emission limit of 5.6 pounds of HAP per 1,000 square 
feet of leather processed as a water-resistant/specialty product 
process operation.

D. Definitions

    Comment: One commenter requested that the definition of leather 
``finishing'' be expanded to include coatings, such as dyes and 
pigments, that are not film-forming materials.
    Response: The EPA agrees with the commenter and the final rule 
reflects a revised definition of leather finishing. The definition now 
states ``Leather finishing adjusts and improves the physical and 
aesthetic characteristics of the leather surface through the multistage 
application of a coating comprising dyes, pigments, film-forming 
materials, and performance modifiers dissolved or suspended in liquid 
carriers.''

IV. What Are the Administrative Requirements for This Rule?

A. Executive Order 12866, Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), we must 
determine whether the regulatory action is ``significant'' and 
therefore subject to Office of Management and Budget (OMB) review and 
the requirements of the Executive Order. The Executive Order defines 
``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 loan programs, or the rights and obligation 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.
    Pursuant to the terms of Executive Order 12866, it has been 
determined that today's final rule is not a ``significant regulatory 
action'' because it will not have an annual effect on the economy of 
$100 million and is therefore not subject to OMB review.

B. Executive Order 13132, Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include rules that have ``substantial direct effects 
on the States, on the relationship between the national government and 
the States, or on the distribution of power and responsibilities among 
the various levels of government.'' Under Executive Order 13132, EPA 
may not issue a rule that has federalism implications, that imposes 
substantial direct compliance costs, and that is not required by 
statute, unless the Federal government provides the funds necessary to 
pay the direct compliance costs incurred by State and local 
governments, or EPA consults with State and local officials early in 
the process of developing the rule. The EPA also may not issue a rule 
that has federalism implications and that preempts State law unless the 
Agency consults with State and local officials early in the process of 
developing the rule.
    If EPA complies by consulting, Executive Order 13132 requires EPA 
to provide to OMB, in a separately identified section of the preamble 
to the rule, a federalism summary impact statement (FSIS). The FSIS 
must include a description of the extent of EPA's prior consultation 
with State and local officials, a summary of the nature of their 
concerns and the Agency's position supporting the need to issue the 
rule, and a statement of the extent to which the concerns of State and 
local officials have been met. Also, when EPA transmits a final rule 
with federalism implications to OMB for review pursuant to Executive 
Order 12866, EPA must include a certification from the Agency's 
Federalism Official stating that EPA has met the requirements of 
Executive Order 13132 in a meaningful and timely manner.
    Today's final rule will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, as specified in Executive Order 13132. 
This is because today's final rule applies to affected sources in the 
leather finishing industry, not to States or local governments. Nor 
will State law be preempted, or any mandates be imposed on States or 
local governments. Thus, the requirements of section 6 of the Executive 
Order do not apply to this final rule. The EPA notes, however, that 
although not required to do so by this Executive Order (or otherwise), 
it did consult with State

[[Page 9160]]

governments during development of today's final rule.

C. Executive Order 13175, Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 6, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' ``Policies that have tribal 
implications'' is defined in the Executive Order to include rules that 
have ``substantial direct effects on one or more Indian tribes, on the 
relationship between the Federal government and the Indian tribes, or 
on the distribution of power and responsibilities between the Federal 
government and Indian tribes.''
    This final rule does not have tribal implications. It will not have 
substantial direct effects on tribal governments, on the relationship 
between the Federal government and Indian tribes, or on the 
distribution of power and responsibilities between the Federal 
government and Indian tribes, as specified in Executive Order 13175. 
Thus, Executive Order 13175 does not apply to this rule.

D. 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, EPA must evaluate the environmental health or 
safety effects of the planned rule on children, and explain why the 
planned rule is preferable to other potentially effective and 
reasonably feasible alternatives considered by EPA.
    The EPA interprets Executive Order 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 Executive Order has 
the potential to influence the rule. Today's final rule is not subject 
to Executive Order 13045 because it establishes environmental standards 
based on technology, not health or safety risks. No children's risk 
analysis was performed because no alternative technologies exist that 
would provide greater stringency at a reasonable cost. Furthermore, 
today's final rule has been determined not to be ``economically 
significant'' as defined under Executive Order 12866.

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, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
1 year. Before promulgating an EPA rule for which a written statement 
is needed, section 205 of the UMRA generally requires the 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 the 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 that alternative was not adopted. Before the 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 our regulatory 
proposals with significant Federal intergovernmental mandates, and 
informing, educating, and advising small governments on compliance with 
the regulatory requirements.
    The EPA has determined that this final 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 1 year. The total annual cost of this final rule 
for any 1 year has been estimated at $440,000 per year. Thus, today's 
final rule is not subject to the requirements of sections 202 and 205 
of the UMRA.
    We have determined that today's final rule contains no regulatory 
requirements that might significantly or uniquely affect small 
governments because it contains no requirements that apply to such 
governments or impose obligations upon them. Therefore, today's final 
rule is not subject to the requirements of section 203 of the UMRA.

F. Regulatory Flexibility Act (RFA), as Amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et 
seq.

    The RFA generally requires us to give special consideration to the 
effect of Federal regulations on small entities and to consider 
regulatory options that might mitigate any such impacts. We must 
prepare a regulatory flexibility analysis unless we determine that the 
rule will not have a ``significant economic impact on a substantial 
number of small entities.'' Small entities include small businesses, 
small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of today's final rule on 
small entities, small entity is defined as: (1) A small business whose 
parent company has fewer than 500 employees; (2) a small governmental 
jurisdiction that is a government of a city, county, town, school 
district, or special district with a population of less than 50,000; 
and (3) a small organization that is any not-for-profit enterprise 
which is independently owned and operated and is not dominant in its 
field.
    After considering the economic impacts of today's final rule on 
small entities, we have determined that this action will not have a 
significant economic impact on a substantial number of small entities. 
There are currently a total of 16 facilities that are major sources of 
HAP emissions and affected by this final rule. The industry is 
characterized as having some finishing operations that are relatively 
small, often specializing in the manufacture of leather with unique 
attributes, while others employ several hundred people and produce a 
wide variety of leathers. However, many of the smaller leather 
finishing operations are owned by ultimate parent firms that are 
classified as large corporations. Also, this industry typically 
operates with more than 300 establishments, so only a small fraction of 
the firms in the industry are impacted by the final rule. We determined 
that the 16 affected facilities are owned by 14 parent firms, and only 
three of these firms are classified as small by the previously 
mentioned definition. Nearly all of the firms (small and large) have 
very minimal impacts which range from 0.00

[[Page 9161]]

percent to 0.09 percent of firm revenues. Only one firm of the 14 will 
experience compliance costs that exceed 1 percent of firm revenues 
(1.52 percent), and this firm is a small business. This impact, 
however, is not considered significant for this industry. Typical 
profit margins for the leather industry average 3.5 percent.
    Although this final rule will not have a significant economic 
impact on a substantial number of small entities, we nonetheless have 
tried to reduce the impact of this final rule on small entities. We 
have worked closely with the Leather Industry of America in determining 
the form of the standard and establishing methods for minimizing the 
compliance burden. This outreach included a series of meetings over a 
2-year period and our attendance at the industry's annual regulatory 
meeting of the Leather Industry of America. These meetings and outreach 
provided updates to the industry on the progress of the final rule and 
also forecasting the timeline for compliance with the final rule. In 
addition, these meetings provided us with useful information that we 
used in developing the final rule. For instance, currently no 
facilities use add-on control devices, and we anticipate that no 
facilities will need to install a device to achieve compliance with the 
final rule. This will minimize costs to achieve compliance as well as 
simplify demonstrating compliance since already maintained purchase and 
usage records are all that will be needed to demonstrate compliance. We 
are also requiring that compliance demonstrations be conducted monthly, 
rather than on a daily basis, which we believe will reduce the amount 
of records necessary to demonstrate compliance with the final rule. 
Furthermore, we require the minimum monitoring, recordkeeping, and 
reporting requirements specified in the NESHAP General Provisions (40 
CFR part 63, subpart A).

G. Paperwork Reduction Act

    The information collection requirements in today's final rule will 
be submitted for approval to the OMB under the Paperwork Reduction Act, 
44 U.S.C. 3501 et seq. The EPA has prepared an Information Collection 
Request (ICR) document (ICR No. 1985-02), and you may obtain a copy 
from Sandy Farmer by mail at the U.S. EPA, Office of Environmental 
Information, Collection Strategies Division (2822), 1200 Pennsylvania 
Avenue, NW, Washington, DC 20460, by e-mail at [email protected], or 
by calling (202) 260-2740. A copy may also be downloaded off the 
internet at http://www.epa.gov/icr. The information requirements are 
not effective until OMB approves them.
    The information requirements are based on notification, 
recordkeeping, and reporting requirements in the NESHAP General 
Provisions (40 CFR part 63, subpart A), which are mandatory for all 
operators subject to national emission standards. These recordkeeping 
and reporting requirements are specifically authorized by section 114 
of the CAA (42 U.S.C. 7414). All information submitted to the EPA 
pursuant to the recordkeeping and reporting requirements for which a 
claim of confidentiality is made is safeguarded according to EPA 
policies set forth in 40 CFR part 2, subpart B.
    The annual monitoring, reporting, and recordkeeping burden for this 
collection for all affected facilities, as averaged over the first 3 
years after the effective date of the rule, is estimated to be 485 
labor hours per year at a total annual cost of $21,600. The total 3-
year burden of monitoring, recordkeeping, and reporting for this 
collection for all affected facilities is estimated at 1,455 labor 
hours at a total annual cost of $64,700. There are no required capital 
and operations and maintenance costs for the leather finishing 
operations NESHAP. This estimate includes a one-time plan for 
demonstrating compliance, annual compliance certificate reports, 
notifications, and recordkeeping.
    Burden means the total time, effort, or financial resources people 
spend to generate, maintain, keep, or disclose to or for a Federal 
agency. This includes the time needed to review instructions; develop, 
acquire, install, and use technology and systems to collect, validate, 
and verify information; process, maintain, disclose, and provide 
information; adjust ways to comply with any previously applicable 
instructions and requirements; train people to respond to a collection 
of information; search data sources; collect and review information; 
and transmit or otherwise disclose the information.
    An Agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
rules are in 40 CFR part 9 and 48 CFR chapter 15.

H. National Technology Transfer and Advancement Act of 1995

    Under section 12(d) of the National Technology Transfer and 
Advancement Act (NTTAA) of 1995 (Pub. L. No. 104-113), all Federal 
agencies are required to use voluntary consensus standards (VCS) in 
their regulatory and procurement 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, business practices) developed or adopted by one or more 
voluntary consensus bodies. The NTTAA requires Federal agencies to 
provide Congress, through annual reports to the OMB, with explanations 
when an agency does not use available and applicable VCS.
    Consistent with the NTTAA, the EPA conducted a search for EPA 
Method 311 (Analysis of Hazardous Air Pollutant Compounds in Paints and 
Coatings by Direct Injection into a Gas Chromatograph) and found no 
candidate VCS for use in identifying glycol ethers, toluene, and 
xylene. This final rule references the National Emission Standards for 
Closed Vent Systems, Control Devices, Recovery Devices, and Routing to 
a Fuel Gas System or a Process (40 CFR part 63, subpart SS). Since 
there are no new technical standard requirements resulting from 
specifying subpart SS in this final rule, and no candidate consensus 
standards were identified for EPA Method 311 (glycol ethers, toluene, 
and xylene), EPA is not adopting any VCS in today's final rule.
    Section 63.5290(a) of today's final rule lists EPA Method 311. The 
EPA Method 311 has been used by States and industry for approximately 5 
years. Nevertheless, under Sec. 63.7(f) of 40 CFR part 63, subpart A, 
today's final rule allows any State or source to apply to EPA for 
permission to use an alternative method in lieu of EPA Method 311 
listed in Sec. 63.5290(a).

I. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801, et seq., as added by 
the SBREFA, generally provides that before a rule may take effect, the 
agency promulgating the rule must submit a rule report, which includes 
a copy of the rule, to each House of the Congress and to the 
Comptroller General of the United States. The EPA will submit a report 
containing this final rule and other required information to the U.S. 
Senate, the U.S. House of Representatives, and the Comptroller General 
of the United States prior to publication of the rule in the Federal 
Register. A major rule cannot take effect until 60 days after it is 
published in the Federal Register. This action is not a ``major rule'' 
as defined by 5 U.S.C. 804(2), and therefore will be effective February 
27, 2002.

[[Page 9162]]

J. Executive Order 13211, Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This rule is not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355, May 22, 2001) because it is not a 
significant regulatory action under Executive Order 12866.

List of Subjects in 40 CFR Part 63

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Hazardous substances, Incorporation by 
reference, Intergovernmental relations, Reporting and recordkeeping 
requirements.

    Dated: February 13, 2002.
Christine Todd Whitman,
Administrator.


    For the reasons stated in the preamble, title 40, chapter I, part 
63 of the Code of the Federal Regulations is amended as follows:

PART 63--[AMENDED]

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

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

Subpart A--[Amended]

    2. Section 63.14 is amended by adding and reserving paragraphs 
(b)(19) and (b)(20), and adding paragraph (b)(21) to read as follows:


Sec. 63.14  Incorporation by reference.

* * * * *
    (b) * * *
    (19) [Reserved]
    (20) [Reserved]
    (21) ASTM D2099-00, Standard Test Method for Dynamic Water 
Resistance of Shoe Upper Leather by the Maeser Water Penetration 
Tester, IBR approved for Sec. 63.5350.
* * * * *

    3. Part 63 is amended by adding subpart TTTT to read as follows:

Subpart TTTT--National Emission Standards for Hazardous Air 
Pollutants for Leather Finishing Operations

Sec.

What This Subpart Covers

63.5280   What is the purpose of this subpart?
63.5285   Am I subject to this subpart?
63.5290   What parts of my facility does this subpart cover?
63.5295   When do I have to comply with this subpart?

Standards

63.5305   What emission standards must I meet?

Compliance Requirements

63.5320   How does my affected major source comply with the HAP 
emission standards?
63.5325   What is a plan for demonstrating compliance and when must 
I have one in place?
63.5330   How do I determine the compliance ratio?
63.5335   How do I determine the actual HAP loss?
63.5340   How do I determine the allowable HAP loss?
63.5345   How do I distinguish between the two upholstery product 
process operations?
63.5350   How do I distinguish between the water-resistant/specialty 
and nonwater-resistant leather product process operations?
63.5355   How do I monitor and collect data to demonstrate 
continuous compliance?
63.5360   How do I demonstrate continuous compliance with the 
emission standards?

Testing and Initial Compliance Requirements

63.5375   When must I conduct a performance test or initial 
compliance demonstration?
63.5380   How do I conduct performance tests?
63.5385   How do I measure the quantity of finish applied to the 
leather?
63.5390   How do I measure the HAP content of a finish?
63.5395   How do I measure the density of a finish?
63.5400   How do I measure the quantity of leather processed?

Notifications, Reports, and Records

63.5415   What notifications must I submit and when?
63.5420   What reports must I submit and when?
63.5425   When must I start recordkeeping to determine my compliance 
ratio?
63.5430   What records must I keep?
63.5435   In what form and how long must I keep my records?

Other Requirements and Information

63.5450   What parts of the General Provisions apply to me?
63.5455   Who administers this subpart?
63.5460   What definitions apply to this subpart?

Figure to Subpart TTTT of Part 63

Figure 1 to Subpart TTTT of Part 63--Example Logs for Recording 
Leather Finish Use and HAP Content

Tables to Subpart TTTT of Part 63

Table 1 to Subpart TTTT of Part 63--Leather Finishing HAP Emission 
Limits for Determining the Allowable HAP Loss
Table 2 to Subpart TTTT of Part 63--Applicability of General 
Provisions to Subpart TTTT

What This Subpart Covers


Sec. 63.5280  What is the purpose of this subpart?

    This subpart establishes national emission standards for hazardous 
air pollutants (NESHAP) for leather finishing operations. These 
standards limit HAP emissions from specified leather finishing 
operations. This subpart also establishes requirements to demonstrate 
initial and continuous compliance with the emission standards.


Sec. 63.5285  Am I subject to this subpart?

    (a) You are subject to this subpart if you own or operate a leather 
finishing operation that is a major source of hazardous air pollutants 
(HAP) emissions or that is located at, or is part of, a major source of 
HAP emissions. A leather finishing operation is defined in 
Sec. 63.5460. In general, a leather finishing operation is a single 
process or group of processes used to adjust and improve the physical 
and aesthetic characteristics of the leather surface through multistage 
application of a coating comprised of dyes, pigments, film-forming 
materials, and performance modifiers dissolved or suspended in liquid 
carriers.
    (b) You are a major source of HAP emissions if you own or operate a 
plant site that emits or has the potential to emit any single HAP at a 
rate of 10 tons (9.07 megagrams) or more per year or any combination of 
HAP at a rate of 25 tons (22.68 megagrams) or more per year.
    (c) You are not subject to this subpart if your source finishes 
leather solely for the purpose of research and development.


Sec. 63.5290  What parts of my facility does this subpart cover?

    (a) This subpart applies to each new, reconstructed, or existing 
affected source at leather finishing operations.
    (b) The affected source subject to this subpart is the collection 
of all equipment and activities used for the multistage application of 
finishing materials to adjust and improve the physical and aesthetic 
characteristics of the leather surface. This subpart applies to the 
leather finishing operations listed in paragraphs (b)(1) through (4) of 
this section and as defined in Sec. 63.5460, whether or not the 
operations are collocated with leather tanning operations:
    (1) Upholstery leather with greater than or equal to 4 grams finish 
add-on per square foot of leather;
    (2) Upholstery leather with less than 4 grams finish add-on per 
square foot of leather;

[[Page 9163]]

    (3) Water-resistant/specialty leather; and
    (4) Nonwater-resistant leather.
    (c) An affected source does not include portions of your leather 
finishing operation that are listed in paragraphs (c)(1) and (2) of 
this section:
    (1) Equipment used solely with leather tanning operations; and
    (2) That portion of your leather finishing operation using a 
solvent degreasing process, such as in the manufacture of leather 
chamois, that is already subject to the Halogenated Solvent Cleaning 
NESHAP (40 CFR part 63, subpart T).
    (d) An affected source is a new affected source if you commenced 
construction of the affected source on or after October 2, 2000, and 
you meet the applicability criteria at the time you commenced 
construction.
    (e) An affected source is reconstructed if you meet the criteria as 
defined in Sec. 63.2.
    (f) An affected source is existing if it is not new or 
reconstructed.


Sec. 63.5295  When do I have to comply with this subpart?

    (a) If you have a new or reconstructed affected source, you must 
comply with this subpart according to paragraphs (a)(1) and (2) of this 
section:
    (1) If you startup your affected source before February 27, 2002, 
then you must comply with the emission standards for new and 
reconstructed sources in this subpart no later than February 27, 2002.
    (2) If you startup your affected source after February 27, 2002, 
then you must comply with the emission standards for new and 
reconstructed sources in this subpart upon startup of your affected 
source.
    (b) If you have an existing affected source, you must comply with 
the emission standards for existing sources no later than February 28, 
2005.
    (c) If you have an area source that increases its emissions or its 
potential to emit such that it becomes a major source of HAP and an 
affected source subject to this subpart, paragraphs (c)(1) and (2) of 
this section apply.
    (1) An area source that meets the criteria of a new affected 
source, as specified at Sec. 63.5290(d), or a reconstructed affected 
source, as specified at Sec. 63.5290(e), must be in compliance with 
this subpart upon becoming a major source.
    (2) An area source that meets the criteria of an existing affected 
source, as specified at Sec. 63.5290(f), must be in compliance with 
this subpart no later than 3 years after it becomes a major source.
    (d) You must meet the notification requirements in Sec. 63.5415 and 
in subpart A of this part. Some of the notifications must be submitted 
before you are required to comply with the emission standards in this 
subpart.

Standards


Sec. 63.5305  What emission standards must I meet?

    The emission standards limit the number of pounds of HAP lost per 
square foot of leather processed. You must meet each emission limit in 
Table 1 of this subpart that applies to you.

Compliance Requirements


Sec. 63.5320  How does my affected major source comply with the HAP 
emission standards?

    (a) All affected sources must be in compliance with the 
requirements of this subpart at all times, including periods of 
startup, shutdown, and malfunction.
    (b) You must always operate and maintain your affected source, 
including air pollution control and monitoring equipment, according to 
the provisions in Sec. 63.6(e)(1)(i).
    (c) You must perform all of the items listed in paragraphs (c)(1) 
through (10) of this section:
    (1) Submit the necessary notifications in accordance with 
Sec. 63.5415.
    (2) Develop and implement a plan for demonstrating compliance in 
accordance with Sec. 63.5325.
    (3) Submit the necessary reports in accordance with Sec. 63.5420.
    (4) Keep a finish inventory log, as specified at Sec. 63.5335(b), 
to record monthly the pounds of each type of finish applied for each 
leather product process operation and the mass fraction of HAP in each 
applied finish. You may be required to start recordkeeping prior to the 
compliance dates specified at Sec. 63.5295.
    (5) Keep an inventory log, as specified at Sec. 63.5430(f), to 
record monthly the surface area of leather processed in 1,000's of 
square feet for each product process operation. You may be required to 
start recordkeeping prior to the compliance dates specified at 
Sec. 63.5295.
    (6) Determine the actual HAP loss from your affected source in 
accordance with Sec. 63.5335.
    (7) Determine the allowable HAP loss for your affected source in 
accordance with Sec. 63.5340.
    (8) Determine the compliance ratio for your affected source each 
month as specified at Sec. 63.5330. The compliance ratio compares your 
actual HAP loss to your allowable HAP loss for the previous 12 months.
    (9) Maintain the compliance ratio for your affected source at or 
below 1.00 in accordance with Sec. 63.5330.
    (10) Maintain all the necessary records you have used to 
demonstrate compliance with this subpart in accordance with 
Sec. 63.5430.


Sec. 63.5325  What is a plan for demonstrating compliance and when must 
I have one in place?

    (a) You must develop and implement a written plan for demonstrating 
compliance that provides the detailed procedures you will follow to 
monitor and record data necessary for demonstrating compliance with 
this subpart. Procedures followed for quantifying HAP loss from the 
source and amount of leather processed vary from source to source 
because of site-specific factors such as equipment design 
characteristics and operating conditions. Typical procedures include 
one or more accurate measurement methods such as weigh scales and 
volumetric displacement. Because the industry does not have a uniform 
set of procedures, you must develop and implement your own site-
specific plan for demonstrating compliance not later than the 
compliance date for your source. You must also incorporate the plan for 
demonstrating compliance by reference in the source's title V permit. 
The plan for demonstrating compliance must include the items listed in 
paragraphs (a)(1) through (7) of this section:
    (1) The name and address of the owner or operator.
    (2) The physical address of the leather finishing operation.
    (3) Provide a detailed description of all methods of measurement 
your source will use to determine your finish usage, HAP content of 
each finish, quantity of leather processed, and leather product process 
operation type.
    (4) Specify when each measurement will be made.
    (5) Provide examples of each calculation you will use to determine 
your compliance status. Include examples of how you will convert data 
measured with one parameter to other terms for use in compliance 
determination.
    (6) Provide example logs of how data will be recorded.
    (7) Provide a quality assurance/quality control plan to ensure that 
the data continue to meet compliance demonstration needs.
    (b) You may be required to revise your plan for demonstrating 
compliance. We may require reasonable revisions if the procedures lack 
detail, are inconsistent, or do not accurately determine finish usage, 
HAP content of each finish, quantity of leather processed, or leather 
product process operation type.

[[Page 9164]]

Sec. 63.5330  How do I determine the compliance ratio?

    (a) When your source has processed leather for 12 months, you must 
determine the compliance ratio for your affected source by the 
fifteenth of each month for the previous 12 months.
    (b) You must determine the compliance ratio using Equation 1 of 
this section as follows:
[GRAPHIC] [TIFF OMITTED] TR27FE02.003

Where:

Actual HAP Loss = Pounds of actual HAP loss for the previous 12 months, 
as determined in Sec. 63.5335.
Allowable HAP Loss = Pounds of allowable HAP loss for the previous 12 
months, as determined in Sec. 63.5340.

    (1) If the value of the compliance ratio is less than or equal to 
1.00, your affected source was in compliance with the applicable HAP 
emission limits of this subpart for the previous month.
    (2) If the value of the compliance ratio is greater than 1.00, your 
affected source was deviating from compliance with the applicable HAP 
emission limits of this subpart for the previous month.


Sec. 63.5335  How do I determine the actual HAP loss?

    (a) This section describes the information and procedures you must 
use to determine the actual HAP loss from your leather finishing 
operation. By the fifteenth of each month, you must determine the 
actual HAP loss in pounds from your leather finishing operation for the 
previous month.
    (b) Use a finish inventory log to record the pounds of each type of 
finish applied for each leather product process operation and the mass 
fraction of HAP in each applied finish. Figure 1 of this subpart shows 
an example log for recording the minimum information necessary to 
determine your finish usage and HAP loss. The finish inventory log must 
contain, at a minimum, the information for each type of finish applied 
listed in paragraphs (b)(1) through (7) of this section:
    (1) Finish type.
    (2) Pounds (or density and volume) of each finish applied to the 
leather.
    (3) Mass fraction of HAP in each applied finish.
    (4) Date of the recorded entry.
    (5) Time of the recorded entry.
    (6) Name of the person recording the entry.
    (7) Product process operation type.
    (c) To determine the pounds of HAP loss for the previous month, you 
must first determine the pounds of HAP loss from each finish 
application according to paragraph (c)(1) or (2) of this section.
    (1) For facilities not using add-on emission control devices, the 
entire HAP content of the finishes are assumed to be released to the 
environment. Using the finish inventory log, multiply the pounds of 
each recorded finish usage by the corresponding mass fraction of HAP in 
the finish. The result is the HAP loss in pounds from each finish 
application. Sum the pounds of HAP loss from all finish applications 
recorded during the previous month to determine the total monthly HAP 
loss in pounds from your finishing operation.
    (2) For facilities using add-on emission control devices, the 
finish inventory log and the emission reduction efficiency of the add-
on capture and control devices can be used to determine the net HAP 
loss in pounds. The emission reduction efficiency for a control device 
must be determined from a performance test conducted in accordance with 
Secs. 63.5375 and 63.5380. Using the finish inventory log, multiply the 
pounds of each recorded finish usage by the corresponding mass fraction 
of HAP in the finish. The result is the gross HAP loss in pounds from 
each finish application prior to the add-on control device. Multiply 
the gross HAP loss by the percent emission reduction achieved by the 
add-on control device and then subtract this amount from the gross HAP 
loss. The result is the net HAP loss in pounds from each finish 
application. Sum the pounds of net HAP loss from all finish 
applications recorded during the previous month to determine the total 
monthly net HAP loss in pounds from your finishing operation.
    (d) After collecting HAP loss data for 12 months, you must also 
determine by the fifteenth of each month the annual HAP loss in pounds 
by summing the monthly HAP losses for the previous 12 months. The 
annual HAP loss is the ``actual HAP loss,'' which is used in Equation 1 
of Sec. 63.5330 to calculate your compliance ratio, as described in 
Sec. 63.5330.


Sec. 63.5340  How do I determine the allowable HAP loss?

    (a) By the fifteenth of each month, you must determine the 
allowable HAP loss in pounds from your leather finishing operation for 
the previous month.
    (b) To determine the allowable HAP loss for your leather finishing 
operation, you must select the appropriate HAP emission limit, 
expressed in pounds of HAP loss per 1,000 square feet of leather 
processed, from Table 1 of this subpart, for each type of leather 
product process operation performed during the previous 12 months. 
Under the appropriate existing or new source column, select the HAP 
emission limit that corresponds to each type of product process 
operation performed during the previous 12 months. Next, determine the 
annual total of leather processed in 1,000's of square feet for each 
product process operation in accordance with Sec. 63.5400. Then, 
multiply the annual total of leather processed in each product process 
operation by the corresponding HAP emission limit to determine the 
allowable HAP loss in pounds for the corresponding leather product 
process operation. Finally, sum the pounds of HAP loss from all leather 
product process operations performed in the previous 12 months. 
Equation 1 of this section illustrates the calculation of allowable HAP 
loss as follows:
[GRAPHIC] [TIFF OMITTED] TR27FE02.004


[[Page 9165]]


Where:

Annual Total of Leather Processed = 1,000's of square feet of leather 
processed in the previous 12 months in product process operation ``i''.
HAP Emission Limit = From Table 1 of this subpart, the HAP emission 
limit in pounds of HAP loss per 1,000 square feet of leather processed 
for product process operation ``i''.
n = Number of leather product process operation types performed during 
the previous 12 months.

    (c) The resulting ``allowable HAP loss'' is used in Equation 1 of 
Sec. 63.5330 to calculate your compliance ratio, as described in 
Sec. 63.5330.


Sec. 63.5345  How do I distinguish between the two upholstery product 
process operations?

    (a) Product process operations that finish leather for use in 
automobile and furniture seat coverings are categorized as an 
upholstery product process operation. There are two upholstery product 
process operations subject to the requirements of this subpart--
operations with less than 4 grams of finish add-on per square foot, and 
operations with 4 grams or more of finish add-on per square foot. You 
must distinguish between the two upholstery product process operations 
so that you can determine which HAP emission limit in Table 1 of this 
subpart applies to your affected source.
    (b) You must determine finish add-on by calculating the difference 
in mass before and after the finishing process. You may use an 
empirical method to determine the amount of finish add-on applied 
during the finishing process, as described in paragraphs (b)(1) through 
(4) of this section:
    (1) Weigh a one square foot representative section of polyester 
film, paper, cardstock, or equivalent material substrate to be 
finished. This will provide an initial mass and surface area prior to 
starting the finishing process.
    (2) Use a scale with an accuracy of at least 5 percent of the mass 
in grams of the representative section of substrate.
    (3) Upon completion of these measurements, process the 
representative section of substrate on the finishing line as you would 
for a typical section of leather.
    (4) After the finishing and drying process, weigh the 
representative section of substrate to determine the final mass. Divide 
the net mass in grams gained on the representative section by its 
surface area in square feet to determine grams per square foot of 
finish add-on. Equation 1 of this section illustrates this calculation, 
as follows:
[GRAPHIC] [TIFF OMITTED] TR27FE02.005

Where:

Finish Add-On = Grams per square foot of finish add-on applied to a 
representative section of polyester film or equivalent material 
substrate.
Final Mass = Final mass in grams of representative section of polyester 
film or equivalent material substrate, after finishing and drying.
Initial Mass = Initial mass in grams of representative section of 
polyester film or equivalent material substrate, prior to finishing.
Surface Area = Surface area in square feet of a representative section 
of polyester film or equivalent material substrate.

    (c) Any appropriate engineering units may be used for determining 
the finish add-on. However, finish add-on results must be converted to 
the units of grams of finish add-on per square foot of leather 
processed. If multiple representative leather sections are analyzed, 
then use the average of these measurements for selecting the 
appropriate product process operation.


Sec. 63.5350  How do I distinguish between the water-resistant/
specialty and nonwater-resistant leather product process operations?

    (a) Product process operations that finish leather for 
nonupholstery use are categorized as either water-resistant/specialty 
or nonwater-resistant product process operations. You must distinguish 
between the water-resistant/specialty and nonwater-resistant product 
process operations so that you can determine which HAP emission limit 
in Table 1 of this subpart applies to your affected source. Water-
resistant and nonwater-resistant product process operations for 
nonupholstery use can be distinguished using the methods described in 
paragraph (b) of this section. Specialty leather product process 
operations for nonupholstery use can be distinguished using the 
criteria described in paragraph (c) of this section.
    (b) To determine whether your product process operation produces 
water-resistant or nonwater-resistant leather, you must conduct the 
Maeser Flexes test method according to American Society for Testing and 
Materials (ASTM) Designation D2099-00 (incorporated by reference-see 
Sec. 63.14) or a method approved by the Administrator.
    (1) Statistical analysis of initial water penetration data 
performed to support ASTM Designation D2099-00 indicates that poor 
quantitative precision is associated with this testing method. 
Therefore, at a minimum, 36 leather substrate samples (i.e., three 
sections of leather substrate from at least 12 sides of leather), must 
be tested to determine the water-resistant characteristics of the 
leather. You must average the results of these tests to determine the 
final number of Maeser Flexes prior to initial water penetration.
    (2) Results from leather samples indicating an average of 5,000 
Maeser Flexes or more is considered a water-resistant product process 
operation, and results indicating less than 5,000 Maeser Flexes is 
considered a nonwater-resistant product process operation. However, 
leather samples resulting in less than 5,000 Maeser Flexes may be 
categorized as specialty leather in paragraph (c) of this section.
    (c) To determine whether your product process operation produces 
specialty leather, you must meet the criteria in paragraphs (c)(1) and 
(2) of this section:
    (1) The leather must be a select grade of chrome tanned, bark 
retanned, or fat liquored leather.
    (2) The leather must be retanned through the application of 
greases, waxes, and oils in quantities greater than 25 percent of the 
dry leather weight. Specialty leather is also finished with higher 
solvent-based finishes that provide rich color, luster, or an oily/
tacky feel. Specialty leather products may include, but not limited to, 
specialty shoe leather and top grade football leathers.

[[Page 9166]]

Sec. 63.5355  How do I monitor and collect data to demonstrate 
continuous compliance?

    (a) You must monitor and collect data according to this section.
    (b) You must collect data at all required intervals as specified in 
your plan for demonstrating compliance as specified at Sec. 63.5325.
    (c) For emission control devices, except for monitor malfunctions, 
associated repairs, and required quality assurance or control 
activities (including, as applicable, calibration checks and required 
zero and span adjustments), you must monitor continuously (or collect 
data at all required intervals) at all times that the affected source 
is operating.
    (d) You may not use data recorded during monitoring malfunctions, 
associated repairs, and required quality assurance or control 
activities in data averages and calculations used to report emission or 
operating levels, nor may such data be used in fulfilling a minimum 
data availability requirement, if applicable. You must use all the data 
collected during all other periods in assessing the compliance ratio, 
and, if an emission control device is used, in assessing the operation 
of the control device.


Sec. 63.5360  How do I demonstrate continuous compliance with the 
emission standards?

    (a) You must demonstrate continuous compliance with the emission 
standards in Sec. 63.5305 by following the requirements in paragraphs 
(a)(1) and (2) of this section:
    (1) You must collect and monitor data according to the procedures 
in your plan for demonstrating compliance as specified in Sec. 63.5325.
    (2) If you use an emission control device, you must collect the 
monitoring data according to 40 CFR part 63, subpart SS.
    (3) You must maintain your compliance ratio less than or equal to 
1.00, as specified at Sec. 63.5330.
    (b) You must report each instance in which you did not meet the 
emission standards in Sec. 63.5305. This includes periods of startup, 
shutdown, and malfunction. These deviations must be reported according 
to the requirements in Sec. 63.5420(b).
    (c) You must conduct the initial compliance demonstration before 
the compliance date that is specified for your source in Sec. 63.5295.

Testing and Initial Compliance Requirements


Sec. 63.5375  When must I conduct a performance test or initial 
compliance demonstration?

    You must conduct performance tests after the installation of any 
emission control device that reduces HAP emissions and can be used to 
comply with the HAP emission requirements of this subpart. You must 
complete your performance tests not later than 60 calendar days before 
the end of the 12-month period used in the initial compliance 
determination.


Sec. 63.5380  How do I conduct performance tests?

    (a) Each performance test must be conducted according to the 
requirements in Sec. 63.7(e) and the procedures of Sec. 63.997(e)(1) 
and (2).
    (b) You may not conduct performance tests during periods of 
startup, shutdown, or malfunction, as specified in Sec. 63.7(e)(1).
    (c) You must conduct three separate test runs for each performance 
test required in this section, as specified in Sec. 63.7(e)(3). Each 
test run must last at least 1 hour.


Sec. 63.5385  How do I measure the quantity of finish applied to the 
leather?

    (a) To determine the amount of finish applied to the leather, you 
must measure the mass, or density, and volume of each applied finish.
    (b) Determine the mass of each applied finish with a scale 
calibrated to an accuracy of at least 5 percent of the amount measured. 
The quantity of all finishes used for finishing operations must be 
weighed or have a predetermined weight.
    (c) Determine the density and volume of each applied finish 
according to the criteria listed in paragraphs (c)(1) through (3) of 
this section:
    (1) Determine the density of each applied finish in pounds per 
gallon in accordance with Sec. 63.5395. The finish density will be used 
to convert applied finish volumes from gallons into mass units of 
pounds.
    (2) Volume measurements of each applied finish can be obtained with 
a flow measurement device. For each flow measurement device, you must 
perform the items listed in paragraphs (c)(2)(i) through (v) of this 
section:
    (i) Locate the flow sensor and other necessary equipment such as 
straightening vanes in or as close to a position that provides a 
representative flow.
    (ii) Use a flow sensor with a minimum tolerance of 2 percent of the 
flow rate.
    (iii) Reduce swirling flow or abnormal velocity distributions due 
to upstream and downstream disturbances.
    (iv) Conduct a flow sensor calibration check at least semiannually.
    (v) At least monthly, inspect all components for integrity, all 
electrical connections for continuity, and all mechanical connections 
for leakage.
    (3) Volume measurements of each applied finish can be obtained with 
a calibrated volumetric container with an accuracy of at least 5 
percent of the amount measured.


Sec. 63.5390  How do I measure the HAP content of a finish?

    (a) To determine the HAP content of a finish, the reference method 
is EPA Method 311 of appendix A of 40 CFR part 63. You may use EPA 
Method 311, an alternative method approved by the Administrator, or any 
other reasonable means for determining the HAP content. Other 
reasonable means of determining HAP content include, but are not 
limited to, a material safety data sheet (MSDS) or a manufacturer's 
hazardous air pollutant data sheet. If the HAP content is provided on a 
MSDS or a manufacturer's data sheet as a range of values, then the 
highest HAP value of the range must be used for the determination of 
compliance to this standard. This value must be entered on the finish 
log for each type of finish applied. You are not required to test the 
materials that you use, but the Administrator may require a test using 
EPA Method 311 (or another approved method) to confirm the reported HAP 
content. However, if the results of an analysis by EPA Method 311 are 
different from the HAP content determined by another means, the EPA 
Method 311 results will govern compliance determinations.
    (b) You may use the weighted average of the HAP content analysis as 
determined in paragraph (a) of this section for each finish when you 
perform one of the actions listed in paragraphs (b)(1) and (2) of this 
section:
    (1) Mix your own finishes on site.
    (2) Mix new quantities of finish with previous quantities of finish 
that may have a different HAP content.


Sec. 63.5395  How do I measure the density of a finish?

    (a) To determine the density of a finish, the reference method is 
EPA Method 24 of appendix A of 40 CFR part 60. You may use EPA Method 
24, an alternative method approved by the Administrator, or any other 
reasonable means for determining the density of a finish. Other 
reasonable means of determining density include, but are not

[[Page 9167]]

limited to, an MSDS or a manufacturer's hazardous air pollutant data 
sheet. If the density is provided on a MSDS or a manufacturer's data 
sheet as a range of values, then the highest density value of the range 
must be used for the determination of compliance to this standard. This 
value must be entered on the finish log for each type of finish 
applied. You are not required to test the materials that you use, but 
the Administrator may require a test using EPA Method 24 (or another 
approved method) to confirm the reported density. However, if the 
results of an analysis by EPA Method 24 are different from the density 
determined by another means, the EPA Method 24 results will govern 
compliance determinations.
    (b) You may use the weighted average of finish densities as 
determined in paragraph (a) of this section for each finish when you 
perform one of the actions listed in paragraphs (b)(1) and (2) of this 
section:
    (1) Mix your own finishes on site.
    (2) Mix new quantities of finish with previous quantities of finish 
that may have different densities.
    (c) Equation 1 of this section may be used to determine the 
weighted average of finish densities, as follows:
[GRAPHIC] [TIFF OMITTED] TR27FE02.006

Where:

Average Weighted Density = The average weighted density of applied 
finishes in pounds per gallon.
Mass = Pounds of finish ``i'' applied.
Density = The density of finish ``i'' in pounds per gallon.
n = Number of finish types applied.


Sec. 63.5400  How do I measure the quantity of leather processed?

    (a) This section describes the information and procedures you must 
use to determine the quantity of leather processed at your affected 
source.
    (1) To determine the surface area (i.e., quantity) of leather 
substrate processed each month at your source for each product process 
operation, follow the procedures in your plan for demonstrating 
compliance. You must consistently measure the surface area of processed 
leather substrate at one of the manufacturing locations listed in 
paragraph (a)(1)(i) or (ii) of this section:
    (i) Measure the surface area of processed leather upon exiting the 
leather finishing operation.
    (ii) Measure the surface area of processed leather upon shipment 
from the source.
    (2) By the fifteenth of each month, you must determine the quantity 
of leather processed in 1,000's of square feet for each product process 
operation during the previous month. After collecting data on the 
amount of leather processed for 12 months, you must also determine by 
the fifteenth of each month the annual total of leather processed in 
1,000's of square feet for each product process operation by summing 
the monthly quantities of leather processed in each product process 
operation for the previous 12 months. The ``annual total of leather 
processed'' in each product process operation is used in Equation 1 of 
Sec. 63.5340 to calculate your allowable HAP loss as described in 
Sec. 63.5340. Your allowable HAP loss is then subsequently used to 
calculate your compliance ratio as described in Sec. 63.5330.
    (b) To determine the surface area of leather processed at your 
source for each product process operation, you must use one of the 
methods listed in paragraphs (b)(1) and (2) of this section:
    (1) Premeasured leather substrate sections being supplied by 
another manufacturer as an input to your finishing process.
    (2) Measure the surface area of each piece of processed or shipped 
leather with a computer scanning system accurate to 0.1 square feet. 
The computer scanning system must be initially calibrated for minimum 
accuracy to the manufacturer's specifications. For similar leather 
production runs, use an average based on a minimum of 500 pieces of 
leather in lieu of individual measurements.
    (c) Except as provided in paragraph (d) of this section, you must 
include the surface area of each piece of processed leather only once 
when determining the monthly quantity of leather processed, regardless 
of the number of times a piece of leather is reprocessed through a 
portion of the finishing operations.
    (d) If a piece of leather is completely stripped of all applied 
finishes and reprocessed through the entire finishing operation as if 
it were a new piece of leather, you may recount the surface area of 
leather reprocessed when determining the monthly quantity of leather 
processed.

Notifications, Reports, and Records


Sec. 63.5415  What notifications must I submit and when?

    (a) In accordance with Secs. 63.7(b) and (c) and 63.9(b) and (h) of 
the General Provisions, you must submit the one-time notifications 
listed in paragraphs (b) through (g) of this section.
    (b) As specified in Sec. 63.9(b)(2), if you start up your affected 
source before February 27, 2002, you must submit an Initial 
Notification not later than June 27, 2002.
    (c) In the Initial Notification, include the items in paragraphs 
(c)(1) through (4) of this section:
    (1) The name and address of the owner or operator.
    (2) The physical address of the leather finishing operation.
    (3) Identification of the relevant standard, such as the Leather 
Finishing Operations NESHAP, and compliance date.
    (4) A brief description of the source including the types of 
leather product process operations and nominal operating capacity.
    (d) As specified in Sec. 63.9(b)(1) and (2), if you startup your 
new or reconstructed affected source on or after February 27, 2002, you 
must submit an Initial Notification not later than 120 calendar days 
after you become subject to this subpart.
    (e) If you are required to conduct a performance test, you must 
submit a Notification of Intent to Conduct a Performance Test at least 
60 calendar days before the performance test is scheduled to begin as 
required in Sec. 63.7(b)(1).
    (f) You must submit a Notification of Compliance Status report not 
later than 60 calendar days after determining your initial 12-month 
compliance ratio. The notification of compliance status must contain 
the items in paragraphs (f)(1) through (5) of this section:
    (1) The name and address of the owner or operator.
    (2) The physical address of the leather finishing operation.

[[Page 9168]]

    (3) Each type of leather product process operation performed during 
the previous 12 months.
    (4) Each HAP identified under Sec. 63.5390 in finishes applied 
during the 12-month period used for the initial compliance 
determination.
    (5) A compliance status certification indicating whether the source 
complied with all of the requirements of this subpart throughout the 
12-month period used for the initial source compliance determination. 
This certification must include the items in paragraphs (f)(5)(i) 
through (iii) of this section:
    (i) The plan for demonstrating compliance, as described in 
Sec. 63.5325, is complete and available on site for inspection.
    (ii) You are following the procedures described in the plan for 
demonstrating compliance.
    (iii) The compliance ratio value was determined to be less than or 
equal to 1.00, or the value was determined to be greater than 1.00.
    (g) If your source becomes a major source on or after February 27, 
2002, you must submit an initial notification not later than 120 days 
after you become subject to this subpart.


Sec. 63.5420  What reports must I submit and when?

    (a) You must submit the first annual compliance status 
certification 12 months after you submit the Notification of Compliance 
Status. Each subsequent annual compliance status certification is due 
12 months after the previous annual compliance status certification. 
The annual compliance status certification provides the compliance 
status for each month during the 12-month period ending 60 days prior 
to the date on which the report is due. Include the information in 
paragraphs (a)(1) through (5) of this section in the annual 
certification:
    (1) The name and address of the owner or operator.
    (2) The physical address of the leather finishing operation.
    (3) Each type of leather product process operation performed during 
the 12-month period covered by the report.
    (4) Each HAP identified under Sec. 63.5390, in finishes applied 
during the 12-month period covered by the report.
    (5) A compliance status certification indicating whether the source 
complied with all of the requirements of this subpart throughout the 
12-month period covered by the report. This certification must include 
the items in paragraphs (a)(5)(i) and (ii) of this section:
    (i) You are following the procedures described in the plan for 
demonstrating compliance.
    (ii) The compliance ratio value was determined to be less than or 
equal to 1.00, or the value was determined to be greater than 1.00.
    (b) You must submit a Deviation Notification Report for each 
compliance determination you make in which the compliance ratio exceeds 
1.00, as determined under Sec. 63.5330. Submit the deviation report by 
the fifteenth of the following month in which you determined the 
deviation from the compliance ratio. The Deviation Notification Report 
must include the items in paragraphs (b)(1) through (4) of this 
section:
    (1) The name and address of the owner or operator.
    (2) The physical address of the leather finishing operation.
    (3) Each type of leather product process operation performed during 
the 12-month period covered by the report.
    (4) The compliance ratio comprising the deviation. You may reduce 
the frequency of submittal of the Deviation Notification Report if the 
responsible agency of these NESHAP does not object.


Sec. 63.5425  When must I start recordkeeping to determine my 
compliance ratio?

    (a) If you have a new or reconstructed affected source, you must 
start recordkeeping to determine your compliance ratio according to one 
of the schedules listed in paragraphs (a)(1) and (2) of this section:
    (1) If the startup of your new or reconstructed affected source is 
before February 27, 2002, then you must start recordkeeping to 
determine your compliance ratio no later than February 27, 2002.
    (2) If the startup of your new or reconstructed affected source is 
after February 27, 2002, then you must start recordkeeping to determine 
your compliance ratio upon startup of your affected source.
    (b) If you have an existing affected source, you must start 
recordkeeping to determine your compliance ratio no later than February 
27, 2004.
    (c) If you have a source that becomes a major source of HAP 
emissions after February 27, 2002, then you must start recordkeeping to 
determine your compliance ratio immediately upon submitting your 
Initial Notification, as required at Sec. 63.5415(g).


Sec. 63.5430  What records must I keep?

    You must satisfy the recordkeeping requirements in paragraphs (a) 
through (g) of this section by the compliance date specified in 
Sec. 63.5295.
    (a) You must keep the plan for demonstrating compliance as required 
at Sec. 63.5325 onsite and readily available as long as the source is 
operational. If you make any changes to the plan for demonstrating 
compliance, then you must keep all previous versions of the plan and 
make them readily available for inspection for at least 5 years after 
each revision.
    (b) You must keep a copy of each notification and report that you 
are required to submit in accordance with this subpart.
    (c) You must keep records of performance tests in accordance with 
this subpart.
    (d) You must record and maintain a continuous log of finish usage 
as specified at Sec. 63.5335(b).
    (e) You must maintain all necessary records to document the methods 
you used and the results of all HAP content measurements of each 
applied finish.
    (f) For each leather product process operation, you must maintain a 
monthly log of the items listed in paragraphs (f)(1) and (2) of this 
section:
    (1) Dates for each leather product process operation.
    (2) Total surface area of leather processed for each leather 
product process operation.
    (g) If you use an emission control device, you must keep records of 
monitoring data as specified at subpart SS of this part.


Sec. 63.5435  In what form and how long must I keep my records?

    (a) Your records must be in a form suitable and readily available 
for expeditious review according to Sec. 63.10(b)(1).
    (b) As specified in Sec. 63.10(b)(1), you must keep each record for 
5 years following the date of each occurrence, measurement, 
maintenance, corrective action, report, or record.
    (c) You must keep each record onsite for at least 2 years after the 
date of each occurrence, measurement, maintenance, corrective action, 
report, or record according to Sec. 63.10(b)(1). You can keep the 
records offsite for the remaining 3 years.

Other Requirements and Information


Sec. 63.5450  What parts of the General Provisions apply to me?

    Table 2 of this subpart shows which parts of the General Provisions 
in Secs. 63.1 through 63.15 apply to you.


Sec. 63.5455  Who administers this subpart?

    (a) This subpart can be administered by us, the United States 
Environmental Protection Agency (U.S. EPA), or a delegated authority 
such as your State, local, or tribal agency. If the U.S. EPA 
Administrator has delegated authority to

[[Page 9169]]

your State, local, or tribal agency, then that agency has the primary 
authority to administer and enforce this subpart. You should contact 
your U.S. EPA Regional Office to find out if the authority to implement 
and enforce this subpart is delegated to your State, local, or tribal 
agency.
    (b) In delegating implementation and enforcement authority of this 
subpart to a State, local, or tribal agency under subpart E of this 
part, the authorities contained in paragraph (c) of this section are 
retained by the Administrator of U.S. EPA and are not transferred to 
the State, local, or tribal agency.
    (c) The authorities that will not be delegated to State, local, or 
tribal agencies are listed in paragraphs (c)(1) through (4) of this 
section:
    (1) Approval of alternatives to the emission standards in 
Sec. 63.5305 under Sec. 63.6(g).
    (2) Approval of major alternatives to test methods under 
Sec. 63.7(e)(2)(ii) and (f) and as defined in Sec. 63.90.
    (3) Approval of major alternatives to monitoring under Sec. 63.8(f) 
and as defined in Sec. 63.90.
    (4) Approval of major alternatives to recordkeeping and reporting 
under Sec. 63.10(f) and as defined in Sec. 63.90.


Sec. 63.5460  What definitions apply to this subpart?

    Terms used in this subpart are defined in the Clean Air Act, 
Sec. 63.2, and in this section as follows:
    Area source means any stationary source of hazardous air pollutants 
that is not a major source as defined in this part.
    Compliance ratio means the ratio of the actual HAP loss from the 
previous 12 months to the allowable HAP loss from the previous 12 
months. Equation 1 in Sec. 63.5330 is used to calculate this value. If 
the value is less than or equal to 1.00, the source is in compliance. 
If the value is greater than 1.00, the source is deviating from 
compliance.
    Deviation means any instance in which an affected source subject to 
this subpart, or an owner or operator of such a source:
    (1) Fails to meet any requirement or obligation established by this 
subpart, including but not limited to any emission limits or work 
practice standards.
    (2) Fails to meet any emission limits, operating limits, or work 
practice standards in this subpart during startup, shutdown, or 
malfunction, regardless of whether or not such failure is permitted by 
this subpart.
    Drying means the process of removing all but equilibrium moisture 
from the leather. Drying methods currently in use include: toggling, 
hanging, pasting, and vacuum drying.
    Finish add-on means the amount of solid material deposited on the 
leather substrate due to finishing operations. Typically, the solid 
deposition is a dye or other chemical used to enhance the color and 
performance of the leather. Finish add-on is quantified as mass per 
surface area of substrate, such as grams of finish add-on per square 
foot of leather substrate.
    Hazardous air pollutants (HAP) means any substance or mixture of 
substances listed as a hazardous air pollutant under section 112(b) of 
the Clean Air Act.
    Leather means the pelt or hide of an animal which has been 
transformed by a tanning process into a nonputrescible and useful 
material.
    Leather finishing means a single process or group of processes used 
to adjust and improve the physical and aesthetic characteristics of the 
leather surface through the multistage application of a coating 
comprised of dyes, pigments, film-forming materials, and performance 
modifiers dissolved or suspended in liquid carriers.
    Leather substrate means a nonputrescible leather surface intended 
for the application of finishing chemicals and materials. The leather 
substrate may be a continuous piece of material such as side leather or 
may be a combination of smaller leather pieces and leather fibers, 
which when joined together, form a integral composite leather material.
    Leather tanning means the processes, commonly referred to as wet 
operations, used to purify and stabilize the collagen content of the 
hide. Wet operations are divided into three phases, the beamhouse 
(includes soaking and unhairing); the tanyard (includes bating, 
pickling, tanning, trimming/siding, and splitting); and the coloring 
department (includes retanning, coloring, and atliquoring operations).
    Month means that all references to a month in this subpart refer to 
a calendar month.
    Nonwater-resistant leather means nonupholstery leather that is not 
treated with any type of waterproof finish and, thus, cannot withstand 
5,000 Maeser Flexes with a Maeser Flex Testing Machine or a method 
approved by the Administrator prior to initial water penetration. This 
leather is typically used for dress shoes, handbags, and garments.
    Product process operation means any one of the four leather 
production classifications developed for ease of compliance with this 
subpart. The four leather product process operations are as follows: 
upholstery leather with greater than or equal to 4 grams finish add-on 
per square foot, upholstery leather with less than 4 grams finish add-
on per square foot, water-resistant/specialty leather, and nonwater-
resistant leather.
    Specialty leather means a select grade of chrome tanned, bark 
retanned, or fat liquored leather that is retanned through the 
application of greases, waxes, and oils in quantities greater than 25 
percent of the dry leather weight. Specialty leather is also finished 
with higher solvent-based finishes that provide rich color, luster, or 
an oily/tacky feel. Specialty leather products are generally low 
volume, high-quality leather, such as specialty shoe leather and top 
grade football leathers.
    Upholstery leather (greater than or equal to 4 grams finish add-on 
per square foot) means an upholstery leather with a final finish add-on 
to leather ratio of 4 or more grams of finish per square foot of 
leather. These types of finishes are used primarily for automobile 
seating covers. These finishes tend to be aqueous-based.
    Upholstery leather (less than 4 grams finish add-on per square 
foot) means an upholstery leather with a final finish add-on to leather 
ratio of less than 4 grams of finish per square foot of leather. These 
types of finishes are typically used for furniture seating covers. The 
finishes tend to be solvent-based and leave a thinner, softer, and more 
natural leather texture.
    Water-resistant leather means nonupholstery leather that has been 
treated with one or more waterproof finishes such that the leather can 
withstand 5,000 or more Maeser Flexes with a Maeser Flex Testing 
Machine or a method approved by the Administrator prior to initial 
water penetration. This leather is used for outerwear, boots and 
outdoor applications.

[[Page 9170]]

Figure to Subpart TTTT of Part 63

Figure 1 to Subpart TTTT of Part 63--Example Logs for Recording Leather 
Finish Use and HAP Content
Month:____________                    Year:____________

                                              Finish Inventory Log
----------------------------------------------------------------------------------------------------------------
                      Finish usage       HAP Content                                            Product process
   Finish type          (pounds)       (mass fraction)     Date and time     Operator's name       operation
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------


                                         Monthly Summary of Finish Usage
----------------------------------------------------------------------------------------------------------------
                                                               Upholstery     Water-  resistant/    Nonwater-
                                      Upholstery leather      leather  (4          specialty        resistant
                                     (4 grams)        grams)            leather           leather
----------------------------------------------------------------------------------------------------------------
Number of Entries..................  ....................  .................  .................  ...............
Total Finish Usage (pounds)........  ....................  .................  .................  ...............
Total HAP Usage (pounds)...........  ....................  .................  .................  ...............
----------------------------------------------------------------------------------------------------------------

Tables to Subpart TTTT of Part 63

    As required in Secs. 63.5305 and 63.5340(b), you must meet the 
appropriate emission limits in the following table:

   Table 1 to Subpart TTTT of Part 63--Leather Finishing HAP Emission
              Limits for Determining the Allowable HAP Loss
------------------------------------------------------------------------
                                                   HAP Emission Limit
                                                 (pounds of HAP loss per
                                                  1,000 square feet of
   Type of Leather Product Process Operation       leather processed)
                                               -------------------------
                                                  Existing
                                                  sources    New sources
------------------------------------------------------------------------
1. Upholstery Leather (4 grams add-          2.6          0.5
 on/square feet)..............................
2. Upholstery Leather (4 grams add-on/square            6.8          2.5
 feet)........................................
3. Water-resistant (5,000 Maeser             5.6          4.9
 Flexes)/Specialty Leather....................
4. Nonwater-resistant Leather (5,000 Maeser             3.7          2.1
 Flexes)......................................
------------------------------------------------------------------------

    As required in Sec. 63.5450, you must meet the appropriate NESHAP 
General Provision requirements in the following table:

       Table 2 to Subpart TTTT of Part 63--Applicability of General Provisions to Subpart TTTT of Part 63
----------------------------------------------------------------------------------------------------------------
                                     Subject of      Brief description of    Applies to
  General provisions citation         citation            requirement          subpart          Explanation
----------------------------------------------------------------------------------------------------------------
Sec.  63.1.....................  Applicability....  Initial applicability   Yes
                                                     determination;
                                                     applicability after
                                                     standard established;
                                                     permit requirements;
                                                     extensions,
                                                     notifications.
Sec.  63.2.....................  Definitions......  Definitions for Part    Yes.........  Except as specifically
                                                     63 standards.                         provided in this
                                                                                           subpart.
Sec.  63.3.....................  Units and          Units and               Yes
                                  abbreviations.     abbreviations for
                                                     Part 63 standards.
Sec.  63.4.....................  Prohibited         Prohibited activities;  Yes
                                  activities and     compliance date;
                                  circumvention.     circumvention,
                                                     severability.
Sec.  63.5.....................  Construction/      Applicability;          Yes.........  Except for paragraphs
                                  reconstruction.    applications;                         of Sec.  63.5 as
                                                     approvals.                            listed below.
Sec.  63.5(c)..................  [Reserved]
Sec.  63.5(d)(1)(ii)(H)........  Application for    Type and quantity of    No..........  All sources emit HAP.
                                  approval.          HAP, operating                        Subpart TTTT does not
                                                     parameters.                           require control from
                                                                                           specific emission
                                                                                           points.
Sec.  63.5(d)(1)(i)............  [Reserved]

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Sec.  63.5(d)(1)(iii), (d)(2),     ...............  Application for         No..........  The requirements of
 (d)(3)(ii).                                         approval.                             the application for
                                                                                           approval for new and
                                                                                           reconstructed sources
                                                                                           are described in Sec.
                                                                                            63.5320(b). General
                                                                                           provision
                                                                                           requirements for
                                                                                           identification of HAP
                                                                                           emission points or
                                                                                           estimates of actual
                                                                                           emissions are not
                                                                                           required.
                                                                                           Descriptions of
                                                                                           control and methods,
                                                                                           and the estimated and
                                                                                           actual control
                                                                                           efficiency of such do
                                                                                           not apply.
                                                                                           Requirements for
                                                                                           describing control
                                                                                           equipment and the
                                                                                           estimated and actual
                                                                                           control efficiency of
                                                                                           such equipment apply
                                                                                           only to control
                                                                                           equipment to which
                                                                                           the subpart TTTT
                                                                                           requirements for
                                                                                           quantifying solvent
                                                                                           destroyed by an add-
                                                                                           on control device
                                                                                           would be applicable.
Sec.  63.6.....................  Applicability of   Applicability of        Yes.........  Except for paragraphs
                                  general            general provisions.                   of Sec.  63.6 as
                                  provisions.                                              listed below.
Sec.  63.6(b)(1)-(3)...........  Compliance dates,  ......................  No..........  Section Sec.  63.5283
                                  new and                                                  specifies the
                                  reconstructed                                            compliance dates for
                                  sources.                                                 new and reconstructed
                                                                                           sources.
Sec.  63.6(b)(6)...............  [Reserved]
Sec.  63.6(c)(3)-(4)...........  [Reserved]
Sec.  63.6(d)..................  [Reserved]
Sec.  63.6(e)..................  Operation and      ......................  Yes.........  Except for subordinate
                                  maintenance                                              paragraphs of Sec.
                                  requirements.                                            63.6(e) as listed
                                                                                           below.
Sec.  63.6(e)(3)...............  Operation and      Startup, shutdown, and  No..........  Subpart TTTT does not
                                  maintenance        malfunction plan                      have any startup,
                                  requirements.      requirements.                         shutdown, and
                                                                                           malfunction plan
                                                                                           requirements.
Sec.  63.6(f)-(g)..............  Compliance with    Comply with emission    No..........  Subpart TTTT does not
                                  nonopacity         standards at all                      have nonopacity
                                  emission           times except during                   requirements.
                                  standards except   SSM.
                                  during SSM.
Sec.  63.6(h)..................  Opacity/visible    ......................  No..........  Subpart TTTT has no
                                  emission (VE)                                            opacity or visual
                                  standards.                                               emission standards.
Sec.  63.6(i)..................  Compliance         Procedures and          Yes
                                  extension.         criteria for
                                                     responsible agency to
                                                     grant compliance
                                                     extension.
Sec.  63.6(j)..................  Presidential       President may exempt    Yes
                                  compliance         source category from
                                  exemption.         requirement to comply
                                                     with subpart.
Sec.  63.7.....................  Performance        Schedule, conditions,   Yes.........  Except for paragraphs
                                  testing            notifications and                     of Sec.  63.7 as
                                  requirements.      procedures.                           listed below. Subpart
                                                                                           TTTT requires
                                                                                           performance testing
                                                                                           only if the source
                                                                                           applies additional
                                                                                           control that destroys
                                                                                           solvent. Sec.
                                                                                           63.5311 requires
                                                                                           sources to follow the
                                                                                           performance testing
                                                                                           guidelines of the
                                                                                           General Provisions if
                                                                                           a control is added.
Sec.  63.7(a)(2) (i) and (iii).  Performance        Applicability and       No..........  Sec.  63.5310(a) of
                                  testing            performance dates.                    subpart TTTT
                                  requirements.                                            specifies the
                                                                                           requirements of
                                                                                           performance testing
                                                                                           dates for new and
                                                                                           existing sources.
Sec.  63.8.....................  Monitoring         ......................  No..........  Subpart TTTT does not
                                  requirements.                                            require monitoring
                                                                                           other than as
                                                                                           specified therein.
Sec.  63.9.....................  Notification       Applicability and       Yes.........  Except for paragraphs
                                  requirements.      State delegation.                     of Sec.  63.9 as
                                                                                           listed below.
Sec.  63.9(e)..................  Notification of    Notify responsible      Yes.........  Applies only if
                                  performance test.  agency 60 days ahead.                 performance testing
                                                                                           is performed.

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Sec.  63.9(f)..................  Notification of    Notify responsible      No..........  Subpart TTTT has no
                                  VE/opacity         agency 30 days ahead.                 opacity or visual
                                  observations.                                            emission standards.
Sec.  63.9(g)..................  Additional         Notification of         No..........  Subpart TTTT has no
                                  notifications      performance                           CMS requirements.
                                  when using a       evaluation;
                                  continuous         notification using
                                  monitoring         COMS data;
                                  system (CMS).      notification that
                                                     exceeded criterion
                                                     for relative accuracy.
Sec.  63.9(h)..................  Notification of    Contents..............  No..........  Sec.  63.5320(d)
                                  compliance                                               specifies
                                  status.                                                  requirements for the
                                                                                           notification of
                                                                                           compliance status.
Sec.  63.10....................  Recordkeeping/     Schedule for            Yes.........  Except for paragraphs
                                  reporting.         reporting, record                     of Sec.  63.10 as
                                                     storage.                              listed below.
Sec.  63.10(b)(2)..............  Recordkeeping....  Record startup,         No..........  Subpart TTTT has no
                                                     shutdown, and                         recordkeeping
                                                     malfunction events.                   requirements for
                                                                                           startup, shutdown,
                                                                                           and malfunction
                                                                                           events.
Sec.  63.10(c).................  Recordkeeping....  Additional CMS          No..........  Subpart TTTT does not
                                                     recordkeeping.                        require CMS.
Sec.  63.10(d)(2)..............  Reporting........  Reporting performance   Yes.........  Applies only if
                                                     test results.                         performance testing
                                                                                           is performed.
Sec.  63.10(d)(3)..............  Reporting........  Reporting opacity or    No..........  Subpart TTTT has no
                                                     VE observations.                      opacity or visible
                                                                                           emission standards.
Sec.  63.10(d)(4)..............  Reporting........  Progress reports......  Yes.........  Applies if a condition
                                                                                           of compliance
                                                                                           extension.
Sec.  63.10(d)(5)..............  Reporting........  Startup, shutdown, and  No..........  Subpart TTTT has no
                                                     malfunction reporting.                startup, shutdown,
                                                                                           and malfunction
                                                                                           reporting
                                                                                           requirements.
Sec.  63.10(e).................  Reporting........  Additional CMS reports  No..........  Subpart TTTT does not
                                                                                           require CMS.
Sec.  63.11....................  Control device     Requirements for        Yes.........  Applies only if your
                                  requirements.      flares.                               source uses a flare
                                                                                           to control solvent
                                                                                           emissions. Subpart
                                                                                           TTTT does not require
                                                                                           flares.
Sec.  63.12....................  State authority    State authority to      Yes
                                  and delegations.   enforce standards.
Sec.  63.13....................  State/regional     Addresses where         Yes
                                  addresses.         reports,
                                                     notifications, and
                                                     requests are sent.
Sec.  63.14....................  Incorporation by   Test methods            Yes
                                  reference.         incorporated by
                                                     reference.
Sec.  63.15....................  Availability of    Public and              Yes
                                  information and    confidential
                                  confidentiality.   information.
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[FR Doc. 02-4064 Filed 2-26-02; 8:45 am]
BILLING CODE 6560-50-P