82_FR_5412 82 FR 5401 - National Emission Standards for Hazardous Air Pollutants: Ferroalloys Production

82 FR 5401 - National Emission Standards for Hazardous Air Pollutants: Ferroalloys Production

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 82, Issue 11 (January 18, 2017)

Page Range5401-5409
FR Document2017-00156

This action sets forth the Environmental Protection Agency's (EPA's) final decision on the issues for which it announced reconsideration on July 12, 2016, that pertain to certain aspects of the June 30, 2015, final amendments for the Ferroalloys Production source category regulated under national emission standards for hazardous air pollutants (NESHAP). The EPA is amending the rule to allow existing facilities with positive pressure baghouses to perform visible emissions monitoring twice daily as an alternative to installing and operating bag leak detection systems (BLDS) to ensure the baghouses are operating properly. In addition, this final action explains that EPA is maintaining the requirement that facilities must use a digital camera opacity technique (DCOT) method to demonstrate compliance with opacity limits. However, this final action revises the rule such that it references the recently updated version of the DCOT method. In this action, the EPA also explains that no changes are being made regarding the rule provision that requires quarterly polycyclic aromatic hydrocarbons (PAH) emission testing for furnaces producing ferromanganese (FeMn) with an opportunity for facilities to request decreased compliance test frequency from their permitting authority after the first year. Furthermore, in this action, the EPA is denying the request for reconsideration of the PAH emission limits for both FeMn and silicomanganese (SiMn) production furnaces.

Federal Register, Volume 82 Issue 11 (Wednesday, January 18, 2017)
[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)]
[Rules and Regulations]
[Pages 5401-5409]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00156]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 63

[EPA-HQ-OAR-2010-0895; 9958-01-OAR]
RIN 2060-AS90


National Emission Standards for Hazardous Air Pollutants: 
Ferroalloys Production

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule; notice of final action on reconsideration.

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SUMMARY: This action sets forth the Environmental Protection Agency's 
(EPA's) final decision on the issues for which it announced 
reconsideration on July 12, 2016, that pertain to certain aspects of 
the June 30, 2015, final amendments for the Ferroalloys Production 
source category regulated under national emission standards for 
hazardous air pollutants (NESHAP). The EPA is amending the rule to 
allow existing facilities with positive pressure baghouses to perform 
visible emissions monitoring twice daily as an alternative to 
installing and operating bag leak detection systems (BLDS) to ensure 
the baghouses are operating properly. In addition, this final action 
explains that EPA is maintaining the requirement that facilities must 
use a digital camera opacity technique (DCOT) method to demonstrate 
compliance with opacity limits. However, this final action revises the 
rule such that it references the recently updated version of the DCOT 
method. In this action, the EPA also explains that no changes are being 
made regarding the rule provision that requires quarterly polycyclic 
aromatic hydrocarbons (PAH) emission testing for furnaces producing 
ferromanganese (FeMn) with an opportunity for facilities to request 
decreased compliance test frequency from their permitting authority 
after the first year. Furthermore, in this action, the EPA is denying 
the request for reconsideration of the PAH emission limits for both 
FeMn and silicomanganese (SiMn) production furnaces.

DATES: This final action is effective on January 18, 2017. The 
incorporation by reference of certain publications listed in the rule 
is approved by the Director of the Federal Register as of January 18, 
2017.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID

[[Page 5402]]

No. EPA-HQ-OAR-2010-0895. All documents are listed on the http://www.regulations.gov Web site. Although listed in the index, some 
information is not publicly available, e.g., confidential business 
information or other information whose disclosure is restricted by 
statute. Certain other material, such as copyrighted material, is not 
placed on the Internet and will be publicly available only in hard copy 
form. Publicly available docket materials are available either 
electronically through http://www.regulations.gov or in hard copy at 
the EPA Docket Center (EPA/DC), Room 3334, EPA WJC West Building, 1301 
Constitution Ave. NW., Washington, DC 20004. The Public Reading Room is 
open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding 
legal holidays. The telephone number for the Public Reading Room is 
(202) 566-1744, and the telephone number for the Docket Center is (202) 
566-1742.

FOR FURTHER INFORMATION CONTACT: Phil Mulrine, Sector Policies and 
Programs Division (D243-02), Office of Air Quality Planning and 
Standards, Environmental Protection Agency, Research Triangle Park, 
North Carolina 27711; telephone number: (919) 541-5289; fax number: 
(919) 541-3207; email address: [email protected].

SUPPLEMENTARY INFORMATION: Organization of this Document. The following 
outline is provided to aid in locating information in this preamble.

I. General Information
    A. Does this action apply to me?
    B. How do I obtain a copy of this document and other related 
information?
    C. Judicial Review and Administrative Reconsideration
II. Background Information
III. Summary of Final Action on Issues Reconsidered
    A. Alternative Monitoring for Existing Positive Pressure 
Baghouses
    B. DCOT Compliance Demonstration and Revised DCOT Test Method
    C. Quarterly PAH Testing for Furnaces Producing FeMn
IV. Denial of Petition for Reconsideration of FeMn and SiMn PAH 
Emission Limits
V. Impacts Associated With This Final Rule
    A. What are the air impacts?
    B. What are the energy impacts?
    C. What are the compliance costs?
    D. What are the economic and employment impacts?
    E. What are the benefits of the final standards?
VI. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Paperwork Reduction Act (PRA)
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act (NTTAA) and 
1 CFR Part 51
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    K. Congressional Review Act (CRA)

I. General Information

A. Does this action apply to me?

    Regulated Entities. Categories and entities potentially regulated 
by this action are shown in Table 1 of this preamble.

 Table 1--NESHAP and Industrial Source Categories Affected By This Final
                                 Action
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              NESHAP and source  category                 NAICS \a\ code
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Ferroalloys Production.................................          331112
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\a\ North American Industry Classification System.

    Table 1 of this preamble is not intended to be exhaustive, but 
rather to provide a guide for readers regarding entities likely to be 
affected by the final action for the source category listed. To 
determine whether your facility is affected, you should examine the 
applicability criteria in 40 CFR part 63, subpart XXX (National 
Emission Standards for Hazardous Air Pollutants: Ferroalloys 
Production). If you have any questions regarding the applicability of 
this final action to a particular entity, consult either the air 
permitting authority for the entity or your EPA Regional representative 
as listed in 40 CFR 63.13 (General Provisions).

B. How do I obtain a copy of this document and other related 
information?

    The docket number for this final action regarding the Ferroalloys 
Production NESHAP (40 CFR part 63, subpart XXX) is Docket ID No. EPA-
HQ-OAR-2010-0895.
    In addition to being available in the docket, an electronic copy of 
this document will also be available on the World Wide Web (WWW). 
Following signature, a copy of this document will be posted at https://www.epa.gov/stationary-sources-air-pollution/ferromanganese-and-silicomanganese-production-national-emission.

C. Judicial Review and Administrative Reconsideration

    Under Clean Air Act (CAA) section 307(b)(1), judicial review of 
this final action is available only by filing a petition for review in 
the United States Court of Appeals for the District of Columbia Circuit 
by March 20, 2017. Under CAA section 307(b)(2), the requirements 
established by this final rule may not be challenged separately in any 
civil or criminal proceedings brought by the EPA to enforce the 
requirements.
    Section 307(d)(7)(B) of the CAA further provides that ``[o]nly an 
objection to a rule or procedure which was raised with reasonable 
specificity during the period for public comment (including any public 
hearing) may be raised during judicial review.'' This section also 
provides a mechanism for the EPA to reconsider the rule ``[i]f the 
person raising an objection can demonstrate to the Administrator that 
it was impracticable to raise such objection within [the period for 
public comment] or if the grounds for such objection arose after the 
period for public comment (but within the time specified for judicial 
review) and if such objection is of central relevance to the outcome of 
the rule.'' Any person seeking to make such a demonstration should 
submit a Petition for Reconsideration to the Office of the 
Administrator, U.S. EPA, Room 3000, EPA WJC Building, 1200 Pennsylvania 
Ave. NW., Washington, DC 20460, with a copy to both the person(s) 
listed in the preceding FOR FURTHER INFORMATION CONTACT section, and 
the Associate General Counsel for the Air and Radiation Law Office, 
Office of General Counsel (Mail Code 2344A), U.S. EPA, 1200 
Pennsylvania Ave. NW., Washington, DC 20460.

II. Background Information

    The EPA published a final residual risk and technology review (RTR) 
rule for the Ferroalloys Production source category in the Federal 
Register on June 30, 2015 (80 FR 37366), which included, among other 
things, the following:
     Revisions to the emission limits for particulate matter 
(PM) from stacks for the electric arc furnaces, metal oxygen refining 
(MOR) processes, and crushing and screening operations to minimize PM 
emissions from these units;
     Emission limits for four previously unregulated hazardous 
air pollutants

[[Page 5403]]

(HAP): Formaldehyde, hydrogen chloride, mercury, and PAH;
     Requirements to capture process fugitive emissions using 
effective, enhanced local capture, and duct the captured emissions to 
control devices;
     An average opacity limit of 8 percent during a full 
furnace cycle and a maximum opacity limit of 20 percent for any two 
consecutive 6-minute periods to ensure effective capture and control of 
process fugitive emissions;
     A requirement to conduct opacity observations using the 
DCOT at least once per week for a full furnace cycle for each operating 
furnace and each MOR operation for at least 26 weeks. After 26 weeks, 
if all tests are compliant, facilities can decrease to monthly opacity 
observations;
     A requirement to use BLDS to monitor PM emissions from all 
furnace baghouses; and
     A requirement to conduct periodic performance testing to 
demonstrate compliance with the stack emission limits for the various 
HAP, including a requirement to conduct PAH performance testing every 3 
months for furnaces producing FeMn with the opportunity to reduce to 
annual testing after the first year.
    Following promulgation of the final rule, the EPA received two 
petitions for reconsideration of several provisions of the NESHAP 
pursuant to CAA section 307(d)(7)(B). The EPA received a petition dated 
August 25, 2015, from Eramet Marietta Inc. (Eramet) and a petition 
dated August 28, 2015, from Felman Production LLC (Felman). In the 
petition submitted by Eramet, the company requested the EPA reconsider 
the following issues: (1) The requirement to conduct PAH performance 
testing every 3 months for furnaces producing FeMn; (2) the requirement 
to demonstrate compliance weekly with shop building opacity limits 
using the American Society for Testing and Materials (ASTM) DCOT test 
method; and (3) the PAH emission limits for existing furnaces producing 
FeMn and SiMn. In addition, Eramet requested a stay of 90 days from the 
effective date of the final amendments pending completion of the 
reconsideration proceeding. In the petition submitted by Felman, the 
company stated that it supported and adopted the petition submitted by 
Eramet and requested reconsideration of the requirement to use BLDS to 
monitor emissions from positive pressure baghouses. Copies of the 
petitions are provided in the docket (see EPA Docket ID No. EPA-HQ-OAR-
2010-0895).
    On November 5, 2015, the EPA sent letters to the petitioners 
granting reconsideration of two issues: The PAH testing compliance 
frequency issue raised by Eramet and the use of BLDS on positive 
pressure baghouses raised by Felman. In those letters, the EPA said it 
was still reviewing the other issues and intended to take final action 
on those when it took final action on BLDS and PAH testing frequency. 
The agency also stated in the letters that a proposed Federal Register 
notice would be issued initiating the reconsideration process for the 
issues that the EPA is granting reconsideration. The EPA published the 
proposed notice of reconsideration in the Federal Register on July 12, 
2016 (81 FR 45089).
    In addition to the two requirements mentioned above (i.e., PAH 
testing frequency for furnaces producing FeMn and the use of BLDS to 
monitor PM emissions from positive pressure baghouses), the EPA also 
granted reconsideration of a third issue in the reconsideration 
proposal notice (81 FR 45089): the requirement to use DCOT in 
accordance with ASTM D7520-13 to demonstrate compliance with shop 
building opacity standards. However, for each of these three 
requirements, after further analyses, evaluation, and consideration, we 
explained in the reconsideration proposal notice that we continued to 
believe these requirements were appropriate. Therefore, we did not 
propose any changes to these requirements. Instead, we provided further 
discussion and explanation as to why we believed it was appropriate to 
maintain these requirements in the rule, provided additional technical 
information to the record, and requested comment on the three 
requirements for which the EPA granted reconsideration.

III. Summary of Final Action on Issues Reconsidered

    After reviewing and considering all the public comments received in 
response to the reconsideration proposal, the EPA has decided to amend 
the baghouse monitoring requirements to allow existing facilities with 
positive pressure baghouses to perform visible emissions monitoring 
twice daily using Method 22 as an alternative to using BLDS. In 
addition, although EPA is maintaining the requirement to use DCOT to 
demonstrate compliance with the opacity standards, this final action 
amends the references to the ASTM DCOT test method in the opacity 
monitoring requirements to the recently updated version of the method 
(ASTM D7520-16). The EPA is also maintaining the quarterly PAH emission 
testing requirement for furnaces producing FeMn with an opportunity for 
facilities to request decreased compliance test frequency from their 
permitting authority after the first year. Each of these issues is 
discussed in more detail in this section of the preamble.

A. Alternative Monitoring for Existing Positive Pressure Baghouses

    In their petition for reconsideration, one petitioner (Felman) 
objected to the EPA's requirement to use BLDS for positive pressure 
baghouses. The petitioner pointed out that the EPA's own guidance \1\ 
indicates that BLDS are not appropriate for use on a positive pressure 
baghouse, given the different configurations of these types of units. 
The petitioner commented that although the EPA stated that it had 
knowledge of BLDS in operation on positive pressure baghouses, the EPA 
did not provide any specific examples. In addition, the petitioner 
claimed the EPA had not evaluated the costs associated with the 
application of BLDS on positive pressure baghouses but instead simply 
estimated the cost to be comparable with BLDS for negative pressure 
baghouses.
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    \1\ EPA Office of Air Quality Planning and Standards (OAQPS), 
Fabric Filter Bag Leak Detection Guidance, EPA-454/R-98-015, 
September 1997.
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    In their comments on the reconsideration proposal (81 FR 45089), 
the petitioner stated that the EPA's supporting documents did not 
provide any examples of BLDS in operation on positive pressure 
baghouses comparable to those used at the petitioner's facility, which 
are low airflow and use natural-draft openings instead of stacks. The 
petitioner provided cost quotes from vendors of $1.1 million to install 
the BLDS and make the necessary structural improvements (including a 
catwalk system) to support the operation of the BLDS.
    In light of the petitioner's assertions, we re-evaluated the BLDS 
requirement for positive pressure baghouses. While we maintain that 
BLDS can be installed and operated on positive pressure baghouses, we 
agree that, due to their particular circumstances, it would be 
difficult to retrofit this facility based on the specific design of 
their positive pressure baghouses. Furthermore, we agree that 
installing BLDS and the associated infrastructure would not be cost 
effective. In our analysis for the proposal, we estimated the capital 
cost of installing BLDS on the three positive pressure baghouses to be 
$269,100, with annualized costs of $219,000. However, we did not 
include any additional costs for structural improvements to support 
BLDS on these baghouses. The petitioner provided a cost estimate of

[[Page 5404]]

$870,000 for structural improvements to install BLDS on their three 
baghouses. Given this additional information, we now estimate the 
capital costs would be about $1.1 million, and annualized costs would 
be $330,000. Because of the structural modifications needed to install 
BLDS, the higher annualized costs and the potential technical issues on 
this particular control configuration at Felman, it would be 
unreasonable to require BLDS as the sole method for monitoring positive 
pressure baghouses in this rule. Nevertheless, we believe the baghouses 
need to be monitored on a regular basis to ensure they are operating as 
intended and that there are no tears or holes in the bags. Therefore, 
we have revised the rule to allow for an alternative monitoring method 
to the BLDS requirement for positive pressure baghouses used to control 
emissions from an electric arc furnace. We are allowing twice daily 
visual monitoring of the outlet of each furnace baghouse using Method 
22 for evidence of any visible emissions indicating abnormal operations 
as an alternative to BLDS. We believe this revision will reduce the 
cost burden associated with monitoring the positive pressure baghouses 
used to control emissions from the furnaces and avoid possible 
technical issues, but still provide assurance that the baghouses are 
functioning correctly and controlling metal HAP emissions from the 
furnaces. More details are available in the Summary of Public Comments 
and Responses on Reconsideration of the Ferroalloys Production NESHAP 
Final Rule in the docket for this rulemaking.

B. DCOT Compliance Demonstration and Revised DCOT Test Method

    In the June 30, 2015, final rule (80 FR 37366), we finalized 
opacity standards for process fugitive emissions from the furnace 
buildings and required the use of DCOT and the ASTM D7520-13 test 
method to demonstrate compliance with the opacity standards. In their 
petitions for reconsideration, Eramet and Felman objected to the use of 
DCOT in lieu of EPA Method 9 and stated that the EPA did not propose 
DCOT as the only method for demonstrating compliance with the opacity 
standards. The petitioners argued that DCOT was an unproven substitute 
for EPA Method 9 to measure opacity from emission sources and that 
variability in plume location and orientation at the ferroalloy 
production buildings would make DCOT infeasible at their facilities. 
The petitioners also noted that the ASTM test method only applies to 
stack openings of 7 feet in diameter or less and that DCOT is only 
provided by one vendor.
    In their comments on the reconsideration proposal (81 FR 45089), 
several commenters objected to the use of DCOT as the sole method for 
opacity compliance and stated that the EPA should allow the option of 
using EPA Method 9. The commenters argue that DCOT is limited to 
stationary point sources and not fugitive emissions, and they pointed 
out that the supporting data for DCOT are all from studies performed on 
stationary point sources and not long, open vent sources such as those 
at the Eramet facility. A few commenters had concerns with the 
timeliness of the opacity determinations and the accuracy of the 
results. The commenters were also concerned that there is currently 
only one vendor of DCOT and that the EPA should not choose vendors for 
an entire industry.
    On the other hand, a few commenters were supportive of the use of 
the DCOT. In the opinion of one commenter, DCOT is comparable to Method 
9 observations, on all shapes, sizes, types of sources, and that DCOT 
is configurable with all types of cameras to tailor the implementation 
at the shop/building level to support cost-effective and efficient 
observations.
    Another commenter explained that strong monitoring, testing and 
compliance measures are an essential part of the emission standards, 
and that the use of these measures also increases the incentive for 
sources to comply with the standards. The commenter states that EPA's 
requirement for DCOT is consistent with and an important way to 
implement EPA's ``next generation compliance.'' The commenter notes 
that the EPA's next generation compliance policy includes, among other 
things, the following: (1) Use and promotion of advanced emissions/
pollutant detection technology so that regulated entities, the 
government, and the public can more easily see pollutant discharges, 
environmental conditions, and noncompliance; (2) expanded transparency 
by making information more accessible to the public; and (3) 
development and use of innovative enforcement approaches (e.g., data 
analytics and targeting) to achieve more widespread compliance.
    Other comments and responses on DCOT can be found in the Summary of 
Public Comments and Responses on Reconsideration of the Ferroalloys 
Production NESHAP Final Rule in the docket for this rulemaking.
    Based on the information provided by the petitioners and the 
commenters, we re-evaluated the DCOT opacity monitoring requirement and 
determined that DCOT is still an appropriate method for determining 
opacity from the shop buildings for this source category.
    As explained in the initial proposal (76 FR 72508), supplemental 
proposal (79 FR 60238), and in the 2015 final rule (80 FR 37366), 
process fugitive emissions from the shop buildings are a significant 
source of risk from the production of ferroalloys. In each of these 
three actions, we concluded risks were unacceptable, largely driven by 
process fugitive emissions of air toxics metals.
    To reduce risks to acceptable levels and protect the public with an 
ample margin of safety, in the initial proposal, we proposed facilities 
would need to install and operate full building enclosures to capture 
and control fugitive emissions. In response to the initial proposal, 
industry commented that full building enclosure requirement would be 
very costly and difficult to implement, and suggested an alternative 
approach using localized capture equipment to reduce fugitive emissions 
from the shop buildings. Modeling of the localized capture approach 
indicated that similar reductions in risk could be achieved, making 
this option more feasible and at significantly lower cost than full 
building enclosure. Based on these modeling results and consideration 
of costs and feasibility, we proposed the localized capture approach to 
significantly reduce fugitive emissions from the shop buildings in the 
supplemental proposal (79 FR 60238), and finalized this approach in the 
2015 final rule (80 FR 37366). Specifically, the final rule requires 
facilities to install, maintain and operate a system designed to 
effectively capture and control process fugitive emissions. 
Furthermore, for this rule, opacity standards are the main compliance 
approach to ensure the process fugitive emissions are effectively 
captured and controlled on a continuous basis, and that the public is 
protected with ample margin of safety. Since process fugitive emissions 
were the main contributor to the unacceptable risks at baseline, and 
since opacity is the main tool to ensure these process fugitive 
emissions are effectively captured and controlled and that the public 
is protected with an ample margin of safety, we finalized requirements 
for the use of DCOT to demonstrate compliance with the opacity standard 
in the June 30, 2015, final rule (80 FR 37366).
    The DCOT provides a photographic record of each of the opacity 
readings. In addition, the photographs are evaluated by a third party 
and the opacity is determined by the degree the plume reduces the 
transmitted light and obscures the background. While we

[[Page 5405]]

believe, based on validation studies, that EPA Method 9 and DCOT 
provide comparable opacity results, the DCOT provides better 
documentation, including a permanent re-analyzable photographic record 
of the opacity determinations, which we believe will be beneficial to 
both the industry and the public. There is an advantage of having 
better documentation in this specific case where fugitive emissions are 
driving the risk from the Ferroalloys Production source category. In 
addition, we disagree with the commenters assertion that this 
methodology will not work with this source category. Fugitive emissions 
from this source category are emitted through roof vents at the top of 
the furnace buildings. Currently, the facilities in this source 
category use EPA Method 9 to measure opacity from the roof vents. The 
EPA Method 9 opacity method has procedures and requirements for 
determining opacity from roof vents and rectangular outlets, which are 
the same procedures and requirements used in the DCOT test method (ASTM 
D7520-16). Because the same procedures and requirements are used to 
measure opacity from roof vents from both these methods, we believe 
that opacity can be measured from this source category using the DCOT 
test method. Therefore, we are maintaining the requirement in the final 
rule that facilities in this source category must use the ASTM DCOT 
methodology to demonstrate compliance with the opacity standards and we 
are denying the petitioners' request to allow EPA Method 9 as an 
alternative method for determining compliance. However, we are revising 
the final rule language to replace the ASTM D7520-13 Standard Test 
Method for Determining the Opacity of a Plume in the Outdoor Ambient 
Atmosphere with the latest revision of the method, ASTM D7520-16. The 
ASTM D7520-13 method was revised by removing the stack diameter scope 
limitation along with editorial corrections in April 2016. We believe 
that this change will address the commenter's concerns specifically 
with the 7 foot stack diameter scope limitation in the ASTM D7520-13 
method because the updated ASTM D7520-16 method has removed that 
limitation. However, fugitive emissions from this source category are 
not emitted from stacks with a diameter greater than 7 feet, but from 
roof vents. Therefore, we do not believe that the 7-foot diameter 
limitation prevented us from requiring the use of the ASTM method for 
measuring opacity using DCOT. As stated earlier in this section, the 
ASTM D7520-16 method provides the same approach for determining opacity 
from nontraditional point sources such as roof vents as would EPA 
Method 9.

C. Quarterly PAH Testing for Furnaces Producing FeMn

    In the reconsideration proposal (81 FR 45089), the EPA also 
reconsidered the requirement for furnaces producing FeMn to conduct PAH 
performance testing every 3 months with an option following the first 
year, to do annual performance testing. The petitioner stated that the 
PAH testing frequency for furnaces producing FeMn in the supplemental 
proposal (79 FR 60238) was every 5 years and that the quarterly testing 
requirement was added in the final rule. The petitioner also noted that 
the change in PAH testing frequency represents an increase in 
compliance costs of $75,000 in the first year of implementation and an 
increase of $475,000 in compliance costs over the first 5 years 
(assuming the facility is not granted reduced frequency of testing 
after the first year), in comparison to the supplemental proposal PAH 
testing requirement. The petitioner also argued that if the EPA 
believes that the PAH emissions dataset is inadequate to establish a 
representative and reliable MACT floor, the proper solution is to 
collect additional data pursuant to CAA section 114(a), rather than 
collecting data through compliance tests. We granted reconsideration on 
this issue to provide an opportunity for public comment on the PAH 
testing frequency for furnaces producing FeMn. A summary of the 
comments received on this issue and the responses are provided in the 
Summary of Public Comments and Responses on Reconsideration of the 
Ferroalloys Production NESHAP Final Rule available in the docket for 
this rulemaking.
    As we stated in the reconsideration proposal (81 FR 45089), we 
received additional PAH test data just 3 weeks prior to the signature 
of the supplemental proposal (which we were not able to include in our 
analyses in time for signature of the supplemental proposal) and yet 
more data during the comment period for the supplemental proposal. This 
new data showed PAH emissions from furnaces producing FeMn were over 12 
times higher in concentration than previous test reports submitted by 
the petitioner. As we explained in the reconsideration proposal, this 
data thus demonstrates that PAH emissions from furnaces producing FeMn 
are highly variable. Moreover, PAH emissions are a major source of 
cancer risks from these furnaces. In the risk assessment performed for 
the supplemental proposal (79 FR 60238), we estimated the maximum 
lifetime individual cancer risk posed by actual emissions from the 
ferroalloys production facilities was 20-in-1 million, with PAH 
contributing 49 percent of the cancer risk.
    Testing frequency is part of verification that the limit is met. 
Stack testing is an important tool used to determine a facility's 
compliance with both initial and on-going compliance with the CAA 
requirements. A highly variable set of measurements on which the limit 
is based leads to us to want more certainty about the source's 
compliance with the limit, and such certainty can be provided by more 
frequent testing. Because of the variability of the PAH emissions 
during FeMn production, we believe that the quarterly testing is 
appropriate for ensuring compliance with the emission limit and 
protecting human health.
    Furthermore, as we explained in the final rule and the 
reconsideration proposal, we believe the quarterly testing, along with 
the collection of process information that a facility may choose to 
collect voluntarily, could provide data that would help facilities 
learn what factors or conditions are contributing to the quantity and 
variation of PAH emissions. For example, we believe the collection and 
analyses of information about the amounts and types of input materials, 
types of electrodes used, electrode consumption rates, furnace 
temperature, and other furnace, process, or product information may 
help facilities understand what factors are associated with the higher 
PAH emissions and could provide insight regarding how to limit these 
emissions. Furthermore, as we described in the preamble of the final 
rule (80 FR 37383), if a facility decides to apply for a decreased 
frequency of performance testing from their permit authority, the type 
of information described above could be helpful input for such an 
application. For these reasons, the quarterly performance testing with 
an opportunity after the first year for facilities to request from 
their permitting authority a decreased frequency to annual performance 
testing is appropriate for ensuring compliance with the PAH emission 
limit and protecting human health. The option for decreased performance 
testing also provides an incentive for the facilities to achieve 
compliance with the PAH standards. Therefore, we are not making any 
changes to the PAH testing frequency for furnaces producing FeMn.

[[Page 5406]]

IV. Denial of Petition for Reconsideration of FeMn and SiMn PAH 
Emission Limits

    In the final rule, the EPA set PAH limits of 0.130 milligrams per 
dry standard cubic meter (mg/dscm) for furnaces producing SiMn and 12 
mg/dscm for furnaces producing FeMn. Both petitioners requested 
reconsideration of these emission limits and asserted that they did not 
have an opportunity to comment on the limits. The petitioners were 
concerned that achieving these PAH emission limits may require 
additional controls. The petitioners also argued with how the PAH 
emission limits were calculated. The petitioners claimed that the EPA 
used a normal data distribution to determine the upper prediction limit 
(UPL), but the data sets have lognormal distributions. The petitioners 
further claim that had the EPA used a lognormal distribution, it would 
have resulted in higher emission limits. In addition, one petitioner 
argued that EPA should not have excluded a 3-hour single test run.
    As stated in the preamble for the final rule (80 FR 37366), the PAH 
emission limits were re-evaluated in the final rule to include PAH test 
data that were received just prior to publication of the supplemental 
proposal and during the comment period for the supplemental proposal. 
The expanded PAH test data set was analyzed using the same statistical 
procedures from the EPA's UPL memorandum used to calculate the PAH 
emissions limits in the supplemental proposal. Using the statistical 
procedures from this memorandum (which describes the EPA's established 
procedures for calculating MACT floor limits), the PAH data sets were 
determined to have a normal distribution. Therefore, the UPL equation 
for calculating the 99-percent UPL was used to determine the PAH 
emission limit. The EPA had already provided adequate notice of the 
analyses and application of the UPL in the memorandum in the 
supplemental proposal (79 FR 60238). With regard to the 3-hour single 
test run the petitioner referred to in their reconsideration petition, 
we determined there were quality assurance and control issues with the 
laboratory analysis, and therefore did not include these data in the 
UPL analysis. The results of every valid 3-run test provided by the 
industry were below the final PAH limits for both FeMn and SiMn 
production. Therefore, we believe both facilities should be able to 
comply with these limits without the need for additional add-on 
controls. Furthermore, EPA calculated the limits using well established 
EPA policy and procedures. At the time the EPA published the 
supplemental proposal (79 FR 60238, October 6, 2014), the EPA made the 
existing PAH emissions data and the methodologies used to calculate the 
limits available for public comment. The limits in the final rule were 
a logical outgrowth of the limits in the supplemental proposal as EPA 
made no changes to the methodology used to calculate the limits and 
simply recalculated the limits after the addition of the newly 
available data with the previously received data. Therefore, we have 
decided to deny reconsideration of the PAH emission limits for both 
FeMn and SiMn production furnaces. More details are available in the 
Summary of Public Comments and Responses on Reconsideration of the 
Ferroalloys Production NESHAP Final Rule in the docket for this 
rulemaking.

V. Impacts Associated With This Final Rule

    We project that this rule will result in no significant changes in 
costs, emission reductions or benefits. Even though there are changes 
to the costs, these changes are small relative to the overall costs and 
benefits of the 2015 final rule. However, the costs for monitoring 
baghouses will be lower than the costs in the final rule due to the 
additional option provided in this action to use visible emissions 
monitoring to monitor positive pressure baghouses as an alternative to 
installing and operating a BLDS.

A. What are the air impacts?

    Even though we have allowed for an alternative monitoring method to 
the BLDS requirement for positive pressure baghouses, we believe that 
this change will result in no additional emissions from the baghouses 
used to control emissions from the furnace. Accordingly, we believe 
that the final rule will not result in significant changes in emissions 
of any of the regulated pollutants.

B. What are the energy impacts?

    The changes to the final rule are anticipated to have minimal 
effect on the supply, distribution or use of energy. As previously 
stated, we are allowing for an alternative monitoring method to the 
BLDS requirement for positive pressure baghouses controlling emissions 
from the furnace. By allowing this alternative, we anticipate slightly 
lower energy usage by the one facility that uses this type of baghouse.

C. What are the compliance costs?

    We believe there will be no significant change in compliance costs 
as a result of the changes to the final rule. However, as mentioned 
above, we anticipate that one facility will have moderately lower 
compliance costs due to allowing an alternative monitoring method for 
positive pressure baghouses. We anticipate that the alternative 
monitoring method will have an annual cost of $38,000, whereas the 
annual operating cost for a BLDS was estimated to be $219,000. Overall, 
we anticipate the Ferroalloys Production source category will not incur 
significant compliance costs or savings as a result of the changes to 
the final rule.

D. What are the economic and employment impacts?

    We believe that there will be a slight economic benefit to one of 
the facilities due to allowing an alternative monitoring method for 
positive pressure baghouses. In the reconsideration proposal, we 
estimated the capital cost for the installation of BLDS for each 
facility would be $269,100 and annualized costs would be $219,000. For 
this final action, based on information received from the company, we 
now estimate capital costs for the BLDS for Felman would be $1.1 
million with annualized costs of $330,000. We believe allowing an 
alternative monitoring method for positive pressure baghouses in this 
final action will reduce the cost of complying with the final rule for 
this facility. However, we believe this final action will not have any 
impacts on the price of electricity, employment or labor markets or the 
U.S. economy.

E. What are the benefits of the final standards?

    We do not anticipate any emission changes, and therefore there are 
no direct monetized benefits or disbenefits associated with the changes 
to this final rule.

VI. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was, 
therefore, not submitted to the Office of Management and Budget (OMB) 
for review.

[[Page 5407]]

B. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden 
under the PRA. OMB has previously approved the information collection 
activities contained in the existing regulations and has assigned OMB 
control number 2060-0676. This action adds an alternative monitoring 
requirement and a revised test method, but does not make revisions to 
the reporting requirements in the final rule. Therefore, this action 
does not change the information collection requirements previously 
finalized and, as a result, does not impose any additional burden on 
industry.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. This 
final action will not impose any requirements on small entities. The 
agency has determined that neither of the companies affected by this 
action is considered to be a small entity.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain an unfunded mandate of $100 million or 
more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. The action imposes 
no enforceable duty on any state, local, or tribal governments or the 
private sector.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It 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.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications as specified in 
Executive Order 13175. There are no ferroalloys production facilities 
that are owned or operated by tribal governments. Thus, Executive Order 
13175 does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    This action is not subject to Executive Order 13045 because it is 
not economically significant as defined in Executive Order 12866, and 
because the EPA does not believe the environmental health or safety 
risks addressed by this action present a disproportionate risk to 
children. The health risk assessments completed for the final rule are 
presented in the Residual Risk Assessment for the Ferroalloys Source 
Category in Support of the 2015 Final Rule document, which is available 
in the docket for this action (EPA-HQ-OAR-2010-0895-0281), and are 
discussed in Section V.G of the preamble for the final rule (80 FR 
37366).

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

    This action is not subject to Executive Order 13211, because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act (NTTAA) and 1 CFR 
Part 51

    This action involves technical standards. The EPA decided to use 
ASTM D7520-16, ``Standard Test Method for Determining the Opacity of a 
Plume in the Outdoor Ambient Atmosphere,'' for measuring opacity from 
the shop buildings. The ASTM D7520-16 is a method to assess opacity 
whereby a Digital Still Camera is used to capture a set of digital 
images of a plume against a contrasting background. Each image is 
analyzed with software that determines plume opacity by comparing a 
user defined portion of the plume image where opacity is being measured 
in comparison to the background providing the contrasting values. The 
Analysis Software is used to average the opacities from the series of 
digital images taken of the plume over a fixed period of time. The 
software is also used to archive the image set utilized for each 
opacity determination including the portion of each image selected by 
the operator. Each DCOT vendor shall provide training for operators of 
their DCOT system. The training shall include the content of the 
``Principles of Visual Emissions Measurements and Procedures to 
Evaluate those Emissions Using the Digital Camera Optical Technique 
(DCOT)'' and a description of how to operate that specific DCOT system 
that passed smoke school. This standard is an acceptable alternative to 
EPA Method 9 and is available from the American Society for Testing and 
Materials, 100 Barr Harbor Drive, Post Office Box C700, West 
Conshohocken, PA 19428-2959. See http://www.astm.org/.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    The EPA believes that this action does not have disproportionately 
high and adverse human health or environmental effects on minority 
populations, low-income populations and/or indigenous peoples, as 
specified in Executive Order 12898 (59 FR 7629, February 16, 1994). 
This action does not affect the level of protection provided to human 
health or the environment because it only provides an alternative 
monitoring provision and revised test method that will not affect the 
emission standards that were finalized on June 30, 2015.

K. Congressional Review Act (CRA)

    This action is subject to the CRA, and the EPA will submit a rule 
report to each House of the Congress and to the Comptroller General of 
the United States. This action is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

List of Subjects in 40 CFR Part 63

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

    Dated: December 28, 2016.
Gina McCarthy,
Administrator.
    For the reasons stated in the preamble, the Environmental 
Protection Agency is amending title 40, chapter I, part 63 of the Code 
of Federal Regulations (CFR) as follows:

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

0
1. The authority citation for part 63 continues to read as follows:

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

Subpart A--General Provisions

0
2. Section 63.14 is amended by:
0
a. Redesignating paragraphs (h)(96) through (h)(104) as (h)(97) through 
(h)(105), respectively; and
0
b. Adding new paragraph (h)(96).


Sec.  63.14  Incorporations by reference.

* * * * *
    (h) * * *
    (96) ASTM D7520-16, Standard Test Method for Determining the 
Opacity of a Plume in the Outdoor Ambient Atmosphere, approved April 1, 
2016, IBR approved for Sec. Sec.  63.1625(b).
* * * * *

[[Page 5408]]

Subpart XXX--National Emission Standards for Hazardous Air 
Pollutants for Ferroalloys Production: Ferromanganese and 
Silicomanganese

0
3. Section 63.1625 is amended by:
0
a. Revising paragraphs (b)(9) introductory text, (b)(9)(i), (b)(9)(ii), 
and (b)(9)(v); and
0
b. Revising paragraphs (d)(1)(ii) through (iv).
    The revisions read as follows:


Sec.  63.1625  What are the performance test and compliance 
requirements for new, reconstructed, and existing facilities?

* * * * *
    (b) * * *
    (9) ASTM D7520-16 to determine opacity (incorporated by reference, 
see Sec.  63.14) with the following conditions:
    (i) During the digital camera opacity technique (DCOT) 
certification procedure outlined in Section 9.2 of ASTM D7520-16, you 
or the DCOT vendor must present the plumes in front of various 
backgrounds of color and contrast representing conditions anticipated 
during field use such as blue sky, trees and mixed backgrounds (clouds 
and/or a sparse tree stand).
    (ii) You must have standard operating procedures in place including 
daily or other frequency quality checks to ensure the equipment is 
within manufacturing specifications as outlined in Section 8.1 of ASTM 
D7520-16.
* * * * *
    (v) Use of this method does not provide or imply a certification or 
validation of any vendor's hardware or software. The onus to maintain 
and verify the certification and/or training of the DCOT camera, 
software and operator in accordance with ASTM D7520-16 and these 
requirements is on the facility, DCOT operator and DCOT vendor.
* * * * *
    (d) * * *
    (1) * * *
    (ii) You must conduct the opacity observations according to ASTM 
D7520-16 (incorporated by reference, see Sec.  63.14), for a period 
that includes at least one complete furnace process cycle for each 
furnace.
    (iii) For a shop building that contains more than one furnace, you 
must conduct the opacity observations according to ASTM D7520-16 for a 
period that includes one tapping period from each furnace located in 
the shop building.
    (iv) You must conduct the opacity observations according to ASTM 
D7520-16 for a 1-hour period that includes at least one pouring for 
each MOR located in the shop building.
* * * * *

0
4. Section 63.1626 is amended by:
0
a. Revising paragraphs (c) introductory text and (c)(1);
0
b. Redesignating paragraphs (d) through (o) as paragraphs (e) through 
(p), respectively;
0
c. Adding new paragraph (d);
0
d. Republishing the heading of redesignated paragraph (e), and revising 
paragraphs (e)(1), (e)(3) introductory text, (e)(4) introductory text, 
and (e)(4)(ii);
0
e. Revising redesignated paragraph (h) introductory text;
0
f. Revising redesignated paragraph (j) introductory text;
0
g. Revising redesignated paragraph (k) introductory text; and
0
h. Revising redesignated paragraph (p) introductory text.
    The revisions and additions read as follows:


Sec.  63.1626  What monitoring requirements must I meet?

* * * * *
    (c) For an existing positive pressure baghouse used to control 
emissions from an electric arc furnace that is not equipped with a bag 
leak detection system, you must specify in the standard operating 
procedures manual for inspections and routine maintenance, at a 
minimum, the requirements of paragraphs (c)(1) and (2) of this section.
    (1) You must visually inspect the outlet of each baghouse using 
Method 22 on a twice daily basis (at least 4 hours apart) for evidence 
of any visible emissions indicating abnormal operations and must 
initiate corrective actions within 1 hour of any visible emissions that 
indicates abnormal operation. Corrective actions shall include, at a 
minimum, isolating, shutting down and conducting an internal inspection 
of the baghouse compartment that is the source of the visible emissions 
that indicate abnormal operations.
* * * * *
    (d) For all other non-furnace baghouses that are not equipped with 
bag leak detection or CEMS, the procedures that you specify in the 
standard operating procedures manual for inspections and routine 
maintenance must, at a minimum, include the requirements of paragraphs 
(d)(1) and (2) of this section.
    (1) You must observe the baghouse outlet on a daily basis for the 
presence of any visible emissions.
    (2) In addition to the daily visible emissions observation, you 
must conduct the following activities:
    (i) Weekly confirmation that dust is being removed from hoppers 
through visual inspection, or equivalent means of ensuring the proper 
functioning of removal mechanisms.
    (ii) Daily check of compressed air supply for pulse-jet baghouses.
    (iii) An appropriate methodology for monitoring cleaning cycles to 
ensure proper operation.
    (iv) Monthly check of bag cleaning mechanisms for proper 
functioning through visual inspection or equivalent means.
    (v) Quarterly visual check of bag tension on reverse air and 
shaker-type baghouses to ensure that the bags are not kinked (kneed or 
bent) or lying on their sides. Such checks are not required for shaker-
type baghouses using self-tensioning (spring loaded) devices.
    (vi) Quarterly confirmation of the physical integrity of the 
baghouse structure through visual inspection of the baghouse interior 
for air leaks.
    (vii) Semiannual inspection of fans for wear, material buildup and 
corrosion through visual inspection, vibration detectors, or equivalent 
means.
* * * * *
    (e) Bag leak detection system. (1) For each baghouse used to 
control emissions from an electric arc furnace, you must install, 
operate, and maintain a bag leak detection system according to 
paragraphs (e)(2) through (4) of this section, unless a system meeting 
the requirements of paragraph (p) of this section, for a CEMS and 
continuous emissions rate monitoring system, is installed for 
monitoring the concentration of particulate matter, or an existing 
positive pressure baghouse used to control emissions from an electric 
arc furnaces that is subject to paragraph (c) of this section. You may 
choose to install, operate, and maintain a bag leak detection system 
for any other baghouse in operation at the facility according to 
paragraphs (e)(2) through (4) of this section.
* * * * *
    (3) Each bag leak detection system must meet the specifications and 
requirements in paragraphs (e)(3)(i) through (viii) of this section.
* * * * *
    (4) You must include in the standard operating procedures manual 
required by paragraph (a) of this section a corrective action plan that 
specifies the procedures to be followed in the case of a bag leak 
detection system alarm. The corrective action plan must include, at a 
minimum, the procedures that you

[[Page 5409]]

will use to determine and record the time and cause of the alarm as 
well as the corrective actions taken to minimize emissions as specified 
in paragraphs (e)(4)(i) and (ii) of this section.
* * * * *
    (ii) The cause of the alarm must be alleviated by taking the 
necessary corrective action(s) that may include, but not be limited to, 
those listed in paragraphs (e)(4)(ii)(A) through (F) of this section.
* * * * *
    (h) Shop building opacity. In order to demonstrate continuous 
compliance with the opacity standards in Sec.  63.1623, you must comply 
with the requirements Sec.  63.1625(d)(1) and one of the monitoring 
options in paragraphs (h)(1) or (2) of this section. The selected 
option must be consistent with that selected during the initial 
performance test described in Sec.  63.1625(d)(2). Alternatively, you 
may use the provisions of Sec.  63.8(f) to request approval to use an 
alternative monitoring method.
* * * * *
    (j) Requirements for sources using CMS. If you demonstrate 
compliance with any applicable emissions limit through use of a 
continuous monitoring system (CMS), where a CMS includes a continuous 
parameter monitoring system (CPMS) as well as a continuous emissions 
monitoring system (CEMS), you must develop a site-specific monitoring 
plan and submit this site-specific monitoring plan, if requested, at 
least 60 days before your initial performance evaluation (where 
applicable) of your CMS. Your site-specific monitoring plan must 
address the monitoring system design, data collection and the quality 
assurance and quality control elements outlined in this paragraph and 
in Sec.  63.8(d). You must install, operate and maintain each CMS 
according to the procedures in your approved site-specific monitoring 
plan. Using the process described in Sec.  63.8(f)(4), you may request 
approval of monitoring system quality assurance and quality control 
procedures alternative to those specified in paragraphs (j)(1) through 
(6) of this section in your site-specific monitoring plan.
* * * * *
    (k) If you have an operating limit that requires the use of a CPMS, 
you must install, operate and maintain each continuous parameter 
monitoring system according to the procedures in paragraphs (k)(1) 
through (7) of this section.
* * * * *
    (p) Particulate Matter CEMS. If you are using a CEMS to measure 
particulate matter emissions to meet requirements of this subpart, you 
must install, certify, operate and maintain the particulate matter CEMS 
as specified in paragraphs (p)(1) through (4) of this section.
* * * * *
0
5. Section 63.1656 is amended by revising paragraphs (b)(7) 
introductory text, (b)(7)(i) and (ii), and (b)(7)(v) to read as 
follows:


Sec.  63.1656   Performance testing, test methods, and compliance 
demonstrations.

* * * * *
    (b) * * *
    (7) Method 9 of appendix A-4 of 40 CFR part 60 to determine 
opacity. ASTM D7520-16, ``Standard Test Method for Determining the 
Opacity of a Plume in the Outdoor Ambient Atmosphere'' may be used 
(incorporated by reference, see Sec.  63.14) with the following 
conditions:
    (i) During the digital camera opacity technique (DCOT) 
certification procedure outlined in Section 9.2 of ASTM D7520-16, the 
owner or operator or the DCOT vendor must present the plumes in front 
of various backgrounds of color and contrast representing conditions 
anticipated during field use such as blue sky, trees and mixed 
backgrounds (clouds and/or a sparse tree stand).
    (ii) The owner or operator must also have standard operating 
procedures in place including daily or other frequency quality checks 
to ensure the equipment is within manufacturing specifications as 
outlined in Section 8.1 of ASTM D7520-16.
* * * * *
    (v) Use of this approved alternative does not provide or imply a 
certification or validation of any vendor's hardware or software. The 
onus to maintain and verify the certification and/or training of the 
DCOT camera, software and operator in accordance with ASTM D7520-16 and 
these requirements is on the facility, DCOT operator and DCOT vendor.
* * * * *
[FR Doc. 2017-00156 Filed 1-17-17; 8:45 am]
 BILLING CODE 6560-50-P



                                                                     Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations                                                                         5401

                                                the modifications described in section                                 September 22, 2014, and before                                       ■ Par. 8. Section 1.7874–12T is
                                                304(c)(3)(B)) less than five percent (by                               November 19, 2015, taxpayers may elect                               amended by revising the introductory
                                                vote and value) of the stock of (or a                                  to apply paragraph (d)(1) of this section.                           text of paragraph (a) to read as follows:
                                                partnership interest in) each member of                                For domestic entity acquisitions
                                                the expanded affiliated group.                                         completed on or after September 22,                                  § 1.7874–12T       Definitions (temporary).
                                                *      *    *      *    *                                              2014, and before January 13, 2017,                                      (a) Definitions. Except as otherwise
                                                   (i) Applicability date. Except as                                   taxpayers may elect to apply paragraph                               provided, the following definitions
                                                otherwise provided in this paragraph (i),                              (d)(2) of this section or § 1.7874–                                  apply for purposes of this section and
                                                this section applies to domestic entity                                10T(d)(2) as contained in the Internal                               §§ 1.367(b)–4T, 1.956–2T, 1.7701(l)–4T,
                                                acquisitions completed on or after                                     Revenue Bulletin (IRB) 2016–20 (see                                  1.7874–2, 1.7874–2T, 1.7874–4, 1.7874–
                                                September 22, 2014. Paragraph (d)(2) of                                https://www.irs.gov/irb/2016-20_IRB/                                 5, and 1.7874–6T through 1.7874–11T.
                                                this section applies to domestic entity                                ar05.html). In addition, for domestic
                                                acquisitions completed on or after                                     entity acquisitions completed on or after                            *      *    *     *     *
                                                January 13, 2017, and paragraph (d)(1)                                 September 22, 2014, and before April 4,                              §§ 1.7874–1, 1.7874–6T, 1.7874–7T, 1.7874–
                                                of this section applies to domestic entity                             2016, taxpayers may elect to determine                               9T, and 1.7874–10T [Amended]
                                                acquisitions completed on or after                                     NOCDs consistently on the basis of
                                                November 19, 2015. Paragraph (g) of this                               taxable years, in lieu of 12-month                                   ■ Par. 9. For each provision listed in the
                                                section applies to domestic entity                                     periods, in a manner consistent with the                             table below, removing the language in
                                                acquisitions completed on or after April                               principles of this section. See paragraph                            the ‘‘Remove’’ column and adding in its
                                                4, 2016. However, for domestic entity                                  (h)(5) of this section.                                              place the language in the ‘‘Add’’
                                                acquisitions completed on or after                                     *     *      *     *    *                                            column:

                                                                                            Provision                                                                      Remove                                         Add

                                                § 1.7874–1(c)(1), second sentence .........................................................               § 1.7874–4T ...................................   § 1.7874–4
                                                § 1.7874–1(c)(1), second sentence .........................................................               § 1.7874–4T(h) ...............................    § 1.7874–4(h)
                                                § 1.7874–6T(g), Example 4(iii), first sentence ........................................                   § 1.7874–4T(i)(7) ...........................     § 1.7874–4(i)(2)
                                                § 1.7874–7T(b)(1), first sentence ............................................................            § 1.7874–4T(b) ...............................    § 1.7874–4(b)
                                                § 1.7874–7T(c)(1) ....................................................................................    § 1.7874–4T(b) ...............................    § 1.7874–4(b)
                                                § 1.7874–7T(f)(1)(i) ..................................................................................   § 1.7874–4T(i)(7) ...........................     § 1.7874–4(i)(2)
                                                § 1.7874–7T(f)(2), introductory text .........................................................            § 1.7874–4T(b) ...............................    § 1.7874–4(b)
                                                § 1.7874–7T(f)(3)(i) ..................................................................................   § 1.7874–4T(b) ...............................    § 1.7874–4(b)
                                                § 1.7874–7T(f)(3)(ii) .................................................................................   § 1.7874–4T(b) ...............................    § 1.7874–4(b)
                                                § 1.7874–7T(g), Example 1(i), penultimate sentence .............................                          § 1.7874–4T(i)(7) ...........................     § 1.7874–4(i)(2)
                                                § 1.7874–7T(g), Example 1(ii), first sentence .........................................                   § 1.7874–4T(c) ...............................    § 1.7874–4(c)
                                                § 1.7874–7T(g), Example 1(ii), first sentence .........................................                   § 1.7874–4T(b) ...............................    § 1.7874–4(b)
                                                § 1.7874–7T(g), Example 2(i), last sentence ..........................................                    § 1.7874–4T(i)(7) ...........................     § 1.7874–4(i)(2)
                                                § 1.7874–7T(g), Example 2(ii), first sentence .........................................                   §§ 1.7874–4T(b) and .....................         §§ 1.7874–4(b) and
                                                § 1.7874–7T(g), Example 3(i), penultimate sentence .............................                          § 1.7874–4T(i)(7) ...........................     § 1.7874–4(i)(2)
                                                § 1.7874–9T(e)(3), introductory text ........................................................             § 1.7874–4T ...................................   § 1.7874–4
                                                § 1.7874–10T(d)(1), introductory text ......................................................              §§ 1.7874–4T(b) and .....................         §§ 1.7874–4(b) and
                                                § 1.7874–10T(f)(3)(iii)(B) .........................................................................      §§ 1.7874–4T and ..........................       §§ 1.7874–4 and



                                                John Dalrymple,                                                        ACTION:Final rule; notice of final action                            the rule such that it references the
                                                Deputy Commissioner for Services and                                   on reconsideration.                                                  recently updated version of the DCOT
                                                Enforcement.                                                                                                                                method. In this action, the EPA also
                                                  Approved: December 6, 2016.                                          SUMMARY:    This action sets forth the                               explains that no changes are being made
                                                Mark J. Mazur                                                          Environmental Protection Agency’s                                    regarding the rule provision that
                                                Assistant Secretary of the Treasury (Tax                               (EPA’s) final decision on the issues for                             requires quarterly polycyclic aromatic
                                                Policy).                                                               which it announced reconsideration on                                hydrocarbons (PAH) emission testing for
                                                [FR Doc. 2017–00643 Filed 1–13–17; 4:15 pm]                            July 12, 2016, that pertain to certain                               furnaces producing ferromanganese
                                                BILLING CODE 4830–01–P
                                                                                                                       aspects of the June 30, 2015, final                                  (FeMn) with an opportunity for facilities
                                                                                                                       amendments for the Ferroalloys                                       to request decreased compliance test
                                                                                                                       Production source category regulated                                 frequency from their permitting
                                                                                                                       under national emission standards for                                authority after the first year.
                                                ENVIRONMENTAL PROTECTION                                               hazardous air pollutants (NESHAP). The                               Furthermore, in this action, the EPA is
                                                AGENCY                                                                 EPA is amending the rule to allow                                    denying the request for reconsideration
                                                                                                                       existing facilities with positive pressure                           of the PAH emission limits for both
                                                40 CFR Part 63                                                         baghouses to perform visible emissions                               FeMn and silicomanganese (SiMn)
                                                                                                                       monitoring twice daily as an alternative                             production furnaces.
                                                [EPA–HQ–OAR–2010–0895; 9958–01–OAR]                                    to installing and operating bag leak
                                                                                                                                                                                            DATES:  This final action is effective on
                                                                                                                       detection systems (BLDS) to ensure the
                                                                                                                                                                                            January 18, 2017. The incorporation by
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                                                RIN 2060–AS90                                                          baghouses are operating properly. In
                                                                                                                                                                                            reference of certain publications listed
                                                National Emission Standards for                                        addition, this final action explains that
                                                                                                                                                                                            in the rule is approved by the Director
                                                Hazardous Air Pollutants: Ferroalloys                                  EPA is maintaining the requirement that
                                                                                                                                                                                            of the Federal Register as of January 18,
                                                Production                                                             facilities must use a digital camera
                                                                                                                                                                                            2017.
                                                                                                                       opacity technique (DCOT) method to
                                                AGENCY: Environmental Protection                                       demonstrate compliance with opacity                                  ADDRESSES:   The EPA has established a
                                                Agency (EPA).                                                          limits. However, this final action revises                           docket for this action under Docket ID


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                                                5402             Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations

                                                No. EPA–HQ–OAR–2010–0895. All                             D. Unfunded Mandates Reform Act                          be posted at https://www.epa.gov/
                                                documents are listed on the http://                          (UMRA)                                                stationary-sources-air-pollution/
                                                www.regulations.gov Web site. Although                    E. Executive Order 13132: Federalism                     ferromanganese-and-silicomanganese-
                                                                                                          F. Executive Order 13175: Consultation
                                                listed in the index, some information is                                                                           production-national-emission.
                                                                                                             and Coordination With Indian Tribal
                                                not publicly available, e.g., confidential                   Governments                                           C. Judicial Review and Administrative
                                                business information or other                             G. Executive Order 13045: Protection of                  Reconsideration
                                                information whose disclosure is                              Children From Environmental Health
                                                restricted by statute. Certain other                         Risks and Safety Risks                                   Under Clean Air Act (CAA) section
                                                material, such as copyrighted material,                   H. Executive Order 13211: Actions                        307(b)(1), judicial review of this final
                                                is not placed on the Internet and will be                    Concerning Regulations That                           action is available only by filing a
                                                publicly available only in hard copy                         Significantly Affect Energy Supply,                   petition for review in the United States
                                                form. Publicly available docket                              Distribution, or Use                                  Court of Appeals for the District of
                                                                                                          I. National Technology Transfer and                      Columbia Circuit by March 20, 2017.
                                                materials are available either
                                                                                                             Advancement Act (NTTAA) and 1 CFR
                                                electronically through http://                               Part 51
                                                                                                                                                                   Under CAA section 307(b)(2), the
                                                www.regulations.gov or in hard copy at                    J. Executive Order 12898: Federal Actions                requirements established by this final
                                                the EPA Docket Center (EPA/DC), Room                         To Address Environmental Justice in                   rule may not be challenged separately in
                                                3334, EPA WJC West Building, 1301                            Minority Populations and Low-Income                   any civil or criminal proceedings
                                                Constitution Ave. NW., Washington, DC                        Populations                                           brought by the EPA to enforce the
                                                20004. The Public Reading Room is                         K. Congressional Review Act (CRA)                        requirements.
                                                open from 8:30 a.m. to 4:30 p.m.,                       I. General Information                                        Section 307(d)(7)(B) of the CAA
                                                Monday through Friday, excluding legal                                                                             further provides that ‘‘[o]nly an
                                                holidays. The telephone number for the                  A. Does this action apply to me?                           objection to a rule or procedure which
                                                Public Reading Room is (202) 566–1744,                    Regulated Entities. Categories and                       was raised with reasonable specificity
                                                and the telephone number for the                        entities potentially regulated by this                     during the period for public comment
                                                Docket Center is (202) 566–1742.                        action are shown in Table 1 of this                        (including any public hearing) may be
                                                FOR FURTHER INFORMATION CONTACT:   Phil                 preamble.                                                  raised during judicial review.’’ This
                                                Mulrine, Sector Policies and Programs                                                                              section also provides a mechanism for
                                                Division (D243–02), Office of Air                         TABLE 1—NESHAP AND INDUSTRIAL                            the EPA to reconsider the rule ‘‘[i]f the
                                                Quality Planning and Standards,                            SOURCE CATEGORIES AFFECTED BY                           person raising an objection can
                                                Environmental Protection Agency,                           THIS FINAL ACTION                                       demonstrate to the Administrator that it
                                                Research Triangle Park, North Carolina                                                                             was impracticable to raise such
                                                27711; telephone number: (919) 541–                           NESHAP and source                                    objection within [the period for public
                                                                                                                                                NAICS a code       comment] or if the grounds for such
                                                                                                                  category
                                                5289; fax number: (919) 541–3207;
                                                email address: mulrine.phil@epa.gov.                                                                               objection arose after the period for
                                                                                                        Ferroalloys Production ..........           331112         public comment (but within the time
                                                SUPPLEMENTARY INFORMATION:                                a North    American        Industry     Classification   specified for judicial review) and if such
                                                Organization of this Document. The                      System.                                                    objection is of central relevance to the
                                                following outline is provided to aid in                    Table 1 of this preamble is not                         outcome of the rule.’’ Any person
                                                locating information in this preamble.                  intended to be exhaustive, but rather to                   seeking to make such a demonstration
                                                I. General Information                                  provide a guide for readers regarding                      should submit a Petition for
                                                   A. Does this action apply to me?                     entities likely to be affected by the final                Reconsideration to the Office of the
                                                   B. How do I obtain a copy of this document           action for the source category listed. To                  Administrator, U.S. EPA, Room 3000,
                                                      and other related information?
                                                                                                        determine whether your facility is                         EPA WJC Building, 1200 Pennsylvania
                                                   C. Judicial Review and Administrative                                                                           Ave. NW., Washington, DC 20460, with
                                                      Reconsideration                                   affected, you should examine the
                                                                                                        applicability criteria in 40 CFR part 63,                  a copy to both the person(s) listed in the
                                                II. Background Information                                                                                         preceding FOR FURTHER INFORMATION
                                                III. Summary of Final Action on Issues                  subpart XXX (National Emission
                                                                                                        Standards for Hazardous Air Pollutants:                    CONTACT section, and the Associate
                                                      Reconsidered
                                                   A. Alternative Monitoring for Existing               Ferroalloys Production). If you have any                   General Counsel for the Air and
                                                      Positive Pressure Baghouses                       questions regarding the applicability of                   Radiation Law Office, Office of General
                                                   B. DCOT Compliance Demonstration and                 this final action to a particular entity,                  Counsel (Mail Code 2344A), U.S. EPA,
                                                      Revised DCOT Test Method                          consult either the air permitting                          1200 Pennsylvania Ave. NW.,
                                                   C. Quarterly PAH Testing for Furnaces
                                                                                                        authority for the entity or your EPA                       Washington, DC 20460.
                                                      Producing FeMn
                                                IV. Denial of Petition for Reconsideration of           Regional representative as listed in 40                    II. Background Information
                                                      FeMn and SiMn PAH Emission Limits                 CFR 63.13 (General Provisions).
                                                                                                                                                                      The EPA published a final residual
                                                V. Impacts Associated With This Final Rule              B. How do I obtain a copy of this                          risk and technology review (RTR) rule
                                                   A. What are the air impacts?
                                                                                                        document and other related                                 for the Ferroalloys Production source
                                                   B. What are the energy impacts?
                                                   C. What are the compliance costs?                    information?                                               category in the Federal Register on June
                                                   D. What are the economic and employment                The docket number for this final                         30, 2015 (80 FR 37366), which included,
                                                      impacts?                                          action regarding the Ferroalloys                           among other things, the following:
                                                   E. What are the benefits of the final                Production NESHAP (40 CFR part 63,                            • Revisions to the emission limits for
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                                                      standards?                                        subpart XXX) is Docket ID No. EPA–                         particulate matter (PM) from stacks for
                                                VI. Statutory and Executive Order Reviews                                                                          the electric arc furnaces, metal oxygen
                                                                                                        HQ–OAR–2010–0895.
                                                   A. Executive Order 12866: Regulatory
                                                                                                          In addition to being available in the                    refining (MOR) processes, and crushing
                                                      Planning and Review and Executive
                                                      Order 13563: Improving Regulation and             docket, an electronic copy of this                         and screening operations to minimize
                                                      Regulatory Review                                 document will also be available on the                     PM emissions from these units;
                                                   B. Paperwork Reduction Act (PRA)                     World Wide Web (WWW). Following                               • Emission limits for four previously
                                                   C. Regulatory Flexibility Act (RFA)                  signature, a copy of this document will                    unregulated hazardous air pollutants


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                                                                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations                                                   5403

                                                (HAP): Formaldehyde, hydrogen                           reconsideration of two issues: The PAH                 frequency from their permitting
                                                chloride, mercury, and PAH;                             testing compliance frequency issue                     authority after the first year. Each of
                                                   • Requirements to capture process                    raised by Eramet and the use of BLDS                   these issues is discussed in more detail
                                                fugitive emissions using effective,                     on positive pressure baghouses raised                  in this section of the preamble.
                                                enhanced local capture, and duct the                    by Felman. In those letters, the EPA said
                                                captured emissions to control devices;                                                                         A. Alternative Monitoring for Existing
                                                                                                        it was still reviewing the other issues
                                                   • An average opacity limit of 8                      and intended to take final action on                   Positive Pressure Baghouses
                                                percent during a full furnace cycle and                 those when it took final action on BLDS                  In their petition for reconsideration,
                                                a maximum opacity limit of 20 percent                   and PAH testing frequency. The agency                  one petitioner (Felman) objected to the
                                                for any two consecutive 6-minute                        also stated in the letters that a proposed             EPA’s requirement to use BLDS for
                                                periods to ensure effective capture and                 Federal Register notice would be issued                positive pressure baghouses. The
                                                control of process fugitive emissions;                  initiating the reconsideration process for             petitioner pointed out that the EPA’s
                                                   • A requirement to conduct opacity                   the issues that the EPA is granting                    own guidance 1 indicates that BLDS are
                                                observations using the DCOT at least                    reconsideration. The EPA published the                 not appropriate for use on a positive
                                                once per week for a full furnace cycle                  proposed notice of reconsideration in                  pressure baghouse, given the different
                                                for each operating furnace and each                     the Federal Register on July 12, 2016                  configurations of these types of units.
                                                MOR operation for at least 26 weeks.                    (81 FR 45089).                                         The petitioner commented that although
                                                After 26 weeks, if all tests are                           In addition to the two requirements                 the EPA stated that it had knowledge of
                                                compliant, facilities can decrease to                   mentioned above (i.e., PAH testing                     BLDS in operation on positive pressure
                                                monthly opacity observations;                           frequency for furnaces producing FeMn                  baghouses, the EPA did not provide any
                                                   • A requirement to use BLDS to                       and the use of BLDS to monitor PM                      specific examples. In addition, the
                                                monitor PM emissions from all furnace                   emissions from positive pressure                       petitioner claimed the EPA had not
                                                baghouses; and                                          baghouses), the EPA also granted                       evaluated the costs associated with the
                                                   • A requirement to conduct periodic                  reconsideration of a third issue in the                application of BLDS on positive
                                                performance testing to demonstrate                      reconsideration proposal notice (81 FR                 pressure baghouses but instead simply
                                                compliance with the stack emission                      45089): the requirement to use DCOT in                 estimated the cost to be comparable
                                                limits for the various HAP, including a                 accordance with ASTM D7520–13 to                       with BLDS for negative pressure
                                                requirement to conduct PAH                              demonstrate compliance with shop                       baghouses.
                                                performance testing every 3 months for                  building opacity standards. However,                     In their comments on the
                                                furnaces producing FeMn with the                        for each of these three requirements,                  reconsideration proposal (81 FR 45089),
                                                opportunity to reduce to annual testing                 after further analyses, evaluation, and                the petitioner stated that the EPA’s
                                                after the first year.                                   consideration, we explained in the
                                                   Following promulgation of the final                                                                         supporting documents did not provide
                                                                                                        reconsideration proposal notice that we                any examples of BLDS in operation on
                                                rule, the EPA received two petitions for                continued to believe these requirements
                                                reconsideration of several provisions of                                                                       positive pressure baghouses comparable
                                                                                                        were appropriate. Therefore, we did not                to those used at the petitioner’s facility,
                                                the NESHAP pursuant to CAA section                      propose any changes to these
                                                307(d)(7)(B). The EPA received a                                                                               which are low airflow and use natural-
                                                                                                        requirements. Instead, we provided                     draft openings instead of stacks. The
                                                petition dated August 25, 2015, from                    further discussion and explanation as to
                                                Eramet Marietta Inc. (Eramet) and a                                                                            petitioner provided cost quotes from
                                                                                                        why we believed it was appropriate to                  vendors of $1.1 million to install the
                                                petition dated August 28, 2015, from                    maintain these requirements in the rule,
                                                Felman Production LLC (Felman). In the                                                                         BLDS and make the necessary structural
                                                                                                        provided additional technical                          improvements (including a catwalk
                                                petition submitted by Eramet, the                       information to the record, and requested
                                                company requested the EPA reconsider                                                                           system) to support the operation of the
                                                                                                        comment on the three requirements for                  BLDS.
                                                the following issues: (1) The                           which the EPA granted reconsideration.
                                                requirement to conduct PAH                                                                                       In light of the petitioner’s assertions,
                                                performance testing every 3 months for                  III. Summary of Final Action on Issues                 we re-evaluated the BLDS requirement
                                                furnaces producing FeMn; (2) the                        Reconsidered                                           for positive pressure baghouses. While
                                                requirement to demonstrate compliance                      After reviewing and considering all                 we maintain that BLDS can be installed
                                                weekly with shop building opacity                       the public comments received in                        and operated on positive pressure
                                                limits using the American Society for                   response to the reconsideration                        baghouses, we agree that, due to their
                                                Testing and Materials (ASTM) DCOT                       proposal, the EPA has decided to amend                 particular circumstances, it would be
                                                test method; and (3) the PAH emission                   the baghouse monitoring requirements                   difficult to retrofit this facility based on
                                                limits for existing furnaces producing                  to allow existing facilities with positive             the specific design of their positive
                                                FeMn and SiMn. In addition, Eramet                      pressure baghouses to perform visible                  pressure baghouses. Furthermore, we
                                                requested a stay of 90 days from the                    emissions monitoring twice daily using                 agree that installing BLDS and the
                                                effective date of the final amendments                  Method 22 as an alternative to using                   associated infrastructure would not be
                                                pending completion of the                               BLDS. In addition, although EPA is                     cost effective. In our analysis for the
                                                reconsideration proceeding. In the                      maintaining the requirement to use                     proposal, we estimated the capital cost
                                                petition submitted by Felman, the                       DCOT to demonstrate compliance with                    of installing BLDS on the three positive
                                                company stated that it supported and                    the opacity standards, this final action               pressure baghouses to be $269,100, with
                                                adopted the petition submitted by                       amends the references to the ASTM                      annualized costs of $219,000. However,
                                                Eramet and requested reconsideration of                 DCOT test method in the opacity                        we did not include any additional costs
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                                                the requirement to use BLDS to monitor                  monitoring requirements to the recently                for structural improvements to support
                                                emissions from positive pressure                        updated version of the method (ASTM                    BLDS on these baghouses. The
                                                baghouses. Copies of the petitions are                  D7520–16). The EPA is also maintaining                 petitioner provided a cost estimate of
                                                provided in the docket (see EPA Docket                  the quarterly PAH emission testing                       1 EPA Office of Air Quality Planning and
                                                ID No. EPA–HQ–OAR–2010–0895).                           requirement for furnaces producing                     Standards (OAQPS), Fabric Filter Bag Leak
                                                   On November 5, 2015, the EPA sent                    FeMn with an opportunity for facilities                Detection Guidance, EPA–454/R–98–015,
                                                letters to the petitioners granting                     to request decreased compliance test                   September 1997.



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                                                5404             Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations

                                                $870,000 for structural improvements to                    In their comments on the                            the shop buildings for this source
                                                install BLDS on their three baghouses.                  reconsideration proposal (81 FR 45089),                category.
                                                Given this additional information, we                   several commenters objected to the use                    As explained in the initial proposal
                                                now estimate the capital costs would be                 of DCOT as the sole method for opacity                 (76 FR 72508), supplemental proposal
                                                about $1.1 million, and annualized costs                compliance and stated that the EPA                     (79 FR 60238), and in the 2015 final rule
                                                would be $330,000. Because of the                       should allow the option of using EPA                   (80 FR 37366), process fugitive
                                                structural modifications needed to                      Method 9. The commenters argue that                    emissions from the shop buildings are a
                                                install BLDS, the higher annualized                     DCOT is limited to stationary point                    significant source of risk from the
                                                costs and the potential technical issues                sources and not fugitive emissions, and                production of ferroalloys. In each of
                                                on this particular control configuration                they pointed out that the supporting                   these three actions, we concluded risks
                                                at Felman, it would be unreasonable to                  data for DCOT are all from studies                     were unacceptable, largely driven by
                                                require BLDS as the sole method for                     performed on stationary point sources                  process fugitive emissions of air toxics
                                                monitoring positive pressure baghouses                  and not long, open vent sources such as                metals.
                                                in this rule. Nevertheless, we believe the              those at the Eramet facility. A few                       To reduce risks to acceptable levels
                                                baghouses need to be monitored on a                     commenters had concerns with the                       and protect the public with an ample
                                                regular basis to ensure they are                        timeliness of the opacity determinations               margin of safety, in the initial proposal,
                                                operating as intended and that there are                and the accuracy of the results. The                   we proposed facilities would need to
                                                no tears or holes in the bags. Therefore,               commenters were also concerned that                    install and operate full building
                                                we have revised the rule to allow for an                there is currently only one vendor of                  enclosures to capture and control
                                                alternative monitoring method to the                    DCOT and that the EPA should not                       fugitive emissions. In response to the
                                                BLDS requirement for positive pressure                  choose vendors for an entire industry.                 initial proposal, industry commented
                                                baghouses used to control emissions                        On the other hand, a few commenters                 that full building enclosure requirement
                                                from an electric arc furnace. We are                    were supportive of the use of the DCOT.                would be very costly and difficult to
                                                allowing twice daily visual monitoring                  In the opinion of one commenter, DCOT                  implement, and suggested an alternative
                                                of the outlet of each furnace baghouse                  is comparable to Method 9 observations,                approach using localized capture
                                                using Method 22 for evidence of any                     on all shapes, sizes, types of sources,                equipment to reduce fugitive emissions
                                                visible emissions indicating abnormal                   and that DCOT is configurable with all                 from the shop buildings. Modeling of
                                                operations as an alternative to BLDS.                   types of cameras to tailor the                         the localized capture approach
                                                We believe this revision will reduce the                implementation at the shop/building                    indicated that similar reductions in risk
                                                cost burden associated with monitoring                  level to support cost-effective and                    could be achieved, making this option
                                                the positive pressure baghouses used to                 efficient observations.                                more feasible and at significantly lower
                                                control emissions from the furnaces and                    Another commenter explained that                    cost than full building enclosure. Based
                                                avoid possible technical issues, but still              strong monitoring, testing and                         on these modeling results and
                                                provide assurance that the baghouses                    compliance measures are an essential                   consideration of costs and feasibility,
                                                are functioning correctly and controlling               part of the emission standards, and that               we proposed the localized capture
                                                metal HAP emissions from the furnaces.                  the use of these measures also increases               approach to significantly reduce fugitive
                                                More details are available in the                       the incentive for sources to comply with               emissions from the shop buildings in
                                                Summary of Public Comments and                          the standards. The commenter states                    the supplemental proposal (79 FR
                                                Responses on Reconsideration of the                     that EPA’s requirement for DCOT is                     60238), and finalized this approach in
                                                Ferroalloys Production NESHAP Final                     consistent with and an important way to                the 2015 final rule (80 FR 37366).
                                                Rule in the docket for this rulemaking.                 implement EPA’s ‘‘next generation                      Specifically, the final rule requires
                                                                                                        compliance.’’ The commenter notes that                 facilities to install, maintain and operate
                                                B. DCOT Compliance Demonstration                        the EPA’s next generation compliance                   a system designed to effectively capture
                                                and Revised DCOT Test Method                            policy includes, among other things, the               and control process fugitive emissions.
                                                  In the June 30, 2015, final rule (80 FR               following: (1) Use and promotion of                    Furthermore, for this rule, opacity
                                                37366), we finalized opacity standards                  advanced emissions/pollutant detection                 standards are the main compliance
                                                for process fugitive emissions from the                 technology so that regulated entities, the             approach to ensure the process fugitive
                                                furnace buildings and required the use                  government, and the public can more                    emissions are effectively captured and
                                                of DCOT and the ASTM D7520–13 test                      easily see pollutant discharges,                       controlled on a continuous basis, and
                                                method to demonstrate compliance with                   environmental conditions, and                          that the public is protected with ample
                                                the opacity standards. In their petitions               noncompliance; (2) expanded                            margin of safety. Since process fugitive
                                                for reconsideration, Eramet and Felman                  transparency by making information                     emissions were the main contributor to
                                                objected to the use of DCOT in lieu of                  more accessible to the public; and (3)                 the unacceptable risks at baseline, and
                                                EPA Method 9 and stated that the EPA                    development and use of innovative                      since opacity is the main tool to ensure
                                                did not propose DCOT as the only                        enforcement approaches (e.g., data                     these process fugitive emissions are
                                                method for demonstrating compliance                     analytics and targeting) to achieve more               effectively captured and controlled and
                                                with the opacity standards. The                         widespread compliance.                                 that the public is protected with an
                                                petitioners argued that DCOT was an                        Other comments and responses on                     ample margin of safety, we finalized
                                                unproven substitute for EPA Method 9                    DCOT can be found in the Summary of                    requirements for the use of DCOT to
                                                to measure opacity from emission                        Public Comments and Responses on                       demonstrate compliance with the
                                                sources and that variability in plume                   Reconsideration of the Ferroalloys                     opacity standard in the June 30, 2015,
                                                location and orientation at the ferroalloy              Production NESHAP Final Rule in the                    final rule (80 FR 37366).
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                                                production buildings would make                         docket for this rulemaking.                               The DCOT provides a photographic
                                                DCOT infeasible at their facilities. The                   Based on the information provided by                record of each of the opacity readings.
                                                petitioners also noted that the ASTM                    the petitioners and the commenters, we                 In addition, the photographs are
                                                test method only applies to stack                       re-evaluated the DCOT opacity                          evaluated by a third party and the
                                                openings of 7 feet in diameter or less                  monitoring requirement and determined                  opacity is determined by the degree the
                                                and that DCOT is only provided by one                   that DCOT is still an appropriate                      plume reduces the transmitted light and
                                                vendor.                                                 method for determining opacity from                    obscures the background. While we


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                                                                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations                                             5405

                                                believe, based on validation studies,                   the same approach for determining                      furnaces. In the risk assessment
                                                that EPA Method 9 and DCOT provide                      opacity from nontraditional point                      performed for the supplemental
                                                comparable opacity results, the DCOT                    sources such as roof vents as would EPA                proposal (79 FR 60238), we estimated
                                                provides better documentation,                          Method 9.                                              the maximum lifetime individual cancer
                                                including a permanent re-analyzable                                                                            risk posed by actual emissions from the
                                                                                                        C. Quarterly PAH Testing for Furnaces
                                                photographic record of the opacity                      Producing FeMn                                         ferroalloys production facilities was 20-
                                                determinations, which we believe will                                                                          in-1 million, with PAH contributing 49
                                                be beneficial to both the industry and                     In the reconsideration proposal (81 FR              percent of the cancer risk.
                                                the public. There is an advantage of                    45089), the EPA also reconsidered the                     Testing frequency is part of
                                                having better documentation in this                     requirement for furnaces producing                     verification that the limit is met. Stack
                                                specific case where fugitive emissions                  FeMn to conduct PAH performance                        testing is an important tool used to
                                                are driving the risk from the Ferroalloys               testing every 3 months with an option                  determine a facility’s compliance with
                                                Production source category. In addition,                following the first year, to do annual                 both initial and on-going compliance
                                                we disagree with the commenters                         performance testing. The petitioner                    with the CAA requirements. A highly
                                                                                                        stated that the PAH testing frequency for              variable set of measurements on which
                                                assertion that this methodology will not
                                                                                                        furnaces producing FeMn in the                         the limit is based leads to us to want
                                                work with this source category. Fugitive
                                                                                                        supplemental proposal (79 FR 60238)                    more certainty about the source’s
                                                emissions from this source category are
                                                                                                        was every 5 years and that the quarterly               compliance with the limit, and such
                                                emitted through roof vents at the top of
                                                                                                        testing requirement was added in the                   certainty can be provided by more
                                                the furnace buildings. Currently, the
                                                                                                        final rule. The petitioner also noted that
                                                facilities in this source category use EPA                                                                     frequent testing. Because of the
                                                                                                        the change in PAH testing frequency
                                                Method 9 to measure opacity from the                                                                           variability of the PAH emissions during
                                                                                                        represents an increase in compliance
                                                roof vents. The EPA Method 9 opacity                                                                           FeMn production, we believe that the
                                                                                                        costs of $75,000 in the first year of
                                                method has procedures and                                                                                      quarterly testing is appropriate for
                                                                                                        implementation and an increase of
                                                requirements for determining opacity                                                                           ensuring compliance with the emission
                                                                                                        $475,000 in compliance costs over the
                                                from roof vents and rectangular outlets,                                                                       limit and protecting human health.
                                                                                                        first 5 years (assuming the facility is not
                                                which are the same procedures and                       granted reduced frequency of testing                      Furthermore, as we explained in the
                                                requirements used in the DCOT test                      after the first year), in comparison to the            final rule and the reconsideration
                                                method (ASTM D7520–16). Because the                     supplemental proposal PAH testing                      proposal, we believe the quarterly
                                                same procedures and requirements are                    requirement. The petitioner also argued                testing, along with the collection of
                                                used to measure opacity from roof vents                 that if the EPA believes that the PAH                  process information that a facility may
                                                from both these methods, we believe                     emissions dataset is inadequate to                     choose to collect voluntarily, could
                                                that opacity can be measured from this                  establish a representative and reliable                provide data that would help facilities
                                                source category using the DCOT test                     MACT floor, the proper solution is to                  learn what factors or conditions are
                                                method. Therefore, we are maintaining                   collect additional data pursuant to CAA                contributing to the quantity and
                                                the requirement in the final rule that                  section 114(a), rather than collecting                 variation of PAH emissions. For
                                                facilities in this source category must                 data through compliance tests. We                      example, we believe the collection and
                                                use the ASTM DCOT methodology to                        granted reconsideration on this issue to               analyses of information about the
                                                demonstrate compliance with the                         provide an opportunity for public                      amounts and types of input materials,
                                                opacity standards and we are denying                    comment on the PAH testing frequency                   types of electrodes used, electrode
                                                the petitioners’ request to allow EPA                   for furnaces producing FeMn. A                         consumption rates, furnace temperature,
                                                Method 9 as an alternative method for                   summary of the comments received on                    and other furnace, process, or product
                                                determining compliance. However, we                     this issue and the responses are                       information may help facilities
                                                are revising the final rule language to                 provided in the Summary of Public                      understand what factors are associated
                                                replace the ASTM D7520–13 Standard                      Comments and Responses on                              with the higher PAH emissions and
                                                Test Method for Determining the                         Reconsideration of the Ferroalloys                     could provide insight regarding how to
                                                Opacity of a Plume in the Outdoor                       Production NESHAP Final Rule                           limit these emissions. Furthermore, as
                                                Ambient Atmosphere with the latest                      available in the docket for this                       we described in the preamble of the
                                                revision of the method, ASTM D7520–                     rulemaking.                                            final rule (80 FR 37383), if a facility
                                                16. The ASTM D7520–13 method was                           As we stated in the reconsideration                 decides to apply for a decreased
                                                revised by removing the stack diameter                  proposal (81 FR 45089), we received                    frequency of performance testing from
                                                scope limitation along with editorial                   additional PAH test data just 3 weeks                  their permit authority, the type of
                                                corrections in April 2016. We believe                   prior to the signature of the                          information described above could be
                                                that this change will address the                       supplemental proposal (which we were                   helpful input for such an application.
                                                commenter’s concerns specifically with                  not able to include in our analyses in                 For these reasons, the quarterly
                                                the 7 foot stack diameter scope                         time for signature of the supplemental                 performance testing with an opportunity
                                                limitation in the ASTM D7520–13                         proposal) and yet more data during the                 after the first year for facilities to request
                                                method because the updated ASTM                         comment period for the supplemental                    from their permitting authority a
                                                D7520–16 method has removed that                        proposal. This new data showed PAH                     decreased frequency to annual
                                                limitation. However, fugitive emissions                 emissions from furnaces producing                      performance testing is appropriate for
                                                from this source category are not                       FeMn were over 12 times higher in                      ensuring compliance with the PAH
                                                emitted from stacks with a diameter                     concentration than previous test reports               emission limit and protecting human
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                                                greater than 7 feet, but from roof vents.               submitted by the petitioner. As we                     health. The option for decreased
                                                Therefore, we do not believe that the 7-                explained in the reconsideration                       performance testing also provides an
                                                foot diameter limitation prevented us                   proposal, this data thus demonstrates                  incentive for the facilities to achieve
                                                from requiring the use of the ASTM                      that PAH emissions from furnaces                       compliance with the PAH standards.
                                                method for measuring opacity using                      producing FeMn are highly variable.                    Therefore, we are not making any
                                                DCOT. As stated earlier in this section,                Moreover, PAH emissions are a major                    changes to the PAH testing frequency
                                                the ASTM D7520–16 method provides                       source of cancer risks from these                      for furnaces producing FeMn.


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                                                5406             Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations

                                                IV. Denial of Petition for                              Furthermore, EPA calculated the limits                 C. What are the compliance costs?
                                                Reconsideration of FeMn and SiMn                        using well established EPA policy and                    We believe there will be no significant
                                                PAH Emission Limits                                     procedures. At the time the EPA                        change in compliance costs as a result
                                                  In the final rule, the EPA set PAH                    published the supplemental proposal                    of the changes to the final rule.
                                                limits of 0.130 milligrams per dry                      (79 FR 60238, October 6, 2014), the EPA                However, as mentioned above, we
                                                standard cubic meter (mg/dscm) for                      made the existing PAH emissions data                   anticipate that one facility will have
                                                furnaces producing SiMn and 12 mg/                      and the methodologies used to calculate                moderately lower compliance costs due
                                                dscm for furnaces producing FeMn.                       the limits available for public comment.               to allowing an alternative monitoring
                                                Both petitioners requested                              The limits in the final rule were a                    method for positive pressure baghouses.
                                                reconsideration of these emission limits                logical outgrowth of the limits in the                 We anticipate that the alternative
                                                and asserted that they did not have an                  supplemental proposal as EPA made no                   monitoring method will have an annual
                                                opportunity to comment on the limits.                   changes to the methodology used to                     cost of $38,000, whereas the annual
                                                The petitioners were concerned that                     calculate the limits and simply                        operating cost for a BLDS was estimated
                                                achieving these PAH emission limits                     recalculated the limits after the addition             to be $219,000. Overall, we anticipate
                                                may require additional controls. The                    of the newly available data with the                   the Ferroalloys Production source
                                                petitioners also argued with how the                    previously received data. Therefore, we                category will not incur significant
                                                PAH emission limits were calculated.                    have decided to deny reconsideration of                compliance costs or savings as a result
                                                The petitioners claimed that the EPA                    the PAH emission limits for both FeMn                  of the changes to the final rule.
                                                used a normal data distribution to                      and SiMn production furnaces. More
                                                determine the upper prediction limit                    details are available in the Summary of                D. What are the economic and
                                                (UPL), but the data sets have lognormal                 Public Comments and Responses on                       employment impacts?
                                                distributions. The petitioners further                  Reconsideration of the Ferroalloys                        We believe that there will be a slight
                                                claim that had the EPA used a                           Production NESHAP Final Rule in the                    economic benefit to one of the facilities
                                                lognormal distribution, it would have                   docket for this rulemaking.                            due to allowing an alternative
                                                resulted in higher emission limits. In                                                                         monitoring method for positive pressure
                                                                                                        V. Impacts Associated With This Final
                                                addition, one petitioner argued that EPA                                                                       baghouses. In the reconsideration
                                                                                                        Rule
                                                should not have excluded a 3-hour                                                                              proposal, we estimated the capital cost
                                                single test run.                                           We project that this rule will result in            for the installation of BLDS for each
                                                  As stated in the preamble for the final               no significant changes in costs, emission              facility would be $269,100 and
                                                rule (80 FR 37366), the PAH emission                    reductions or benefits. Even though                    annualized costs would be $219,000.
                                                limits were re-evaluated in the final rule              there are changes to the costs, these                  For this final action, based on
                                                to include PAH test data that were                      changes are small relative to the overall              information received from the company,
                                                received just prior to publication of the               costs and benefits of the 2015 final rule.             we now estimate capital costs for the
                                                supplemental proposal and during the                    However, the costs for monitoring                      BLDS for Felman would be $1.1 million
                                                comment period for the supplemental                     baghouses will be lower than the costs                 with annualized costs of $330,000. We
                                                proposal. The expanded PAH test data                    in the final rule due to the additional                believe allowing an alternative
                                                set was analyzed using the same                         option provided in this action to use                  monitoring method for positive pressure
                                                statistical procedures from the EPA’s                   visible emissions monitoring to monitor                baghouses in this final action will
                                                UPL memorandum used to calculate the                    positive pressure baghouses as an                      reduce the cost of complying with the
                                                PAH emissions limits in the                             alternative to installing and operating a              final rule for this facility. However, we
                                                supplemental proposal. Using the                        BLDS.                                                  believe this final action will not have
                                                statistical procedures from this                                                                               any impacts on the price of electricity,
                                                memorandum (which describes the                         A. What are the air impacts?                           employment or labor markets or the U.S.
                                                EPA’s established procedures for                                                                               economy.
                                                calculating MACT floor limits), the PAH                    Even though we have allowed for an
                                                data sets were determined to have a                     alternative monitoring method to the                   E. What are the benefits of the final
                                                normal distribution. Therefore, the UPL                 BLDS requirement for positive pressure                 standards?
                                                equation for calculating the 99-percent                 baghouses, we believe that this change                   We do not anticipate any emission
                                                UPL was used to determine the PAH                       will result in no additional emissions                 changes, and therefore there are no
                                                emission limit. The EPA had already                     from the baghouses used to control                     direct monetized benefits or disbenefits
                                                provided adequate notice of the                         emissions from the furnace.                            associated with the changes to this final
                                                analyses and application of the UPL in                  Accordingly, we believe that the final                 rule.
                                                the memorandum in the supplemental                      rule will not result in significant
                                                proposal (79 FR 60238). With regard to                  changes in emissions of any of the                     VI. Statutory and Executive Order
                                                the 3-hour single test run the petitioner               regulated pollutants.                                  Reviews
                                                referred to in their reconsideration                    B. What are the energy impacts?                          Additional information about these
                                                petition, we determined there were                                                                             statutes and Executive Orders can be
                                                quality assurance and control issues                       The changes to the final rule are                   found at http://www2.epa.gov/laws-
                                                with the laboratory analysis, and                       anticipated to have minimal effect on                  regulations/laws-and-executive-orders.
                                                therefore did not include these data in                 the supply, distribution or use of
                                                                                                        energy. As previously stated, we are                   A. Executive Order 12866: Regulatory
                                                the UPL analysis. The results of every
                                                                                                                                                               Planning and Review and Executive
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                                                valid 3-run test provided by the                        allowing for an alternative monitoring
                                                                                                        method to the BLDS requirement for                     Order 13563: Improving Regulation and
                                                industry were below the final PAH
                                                                                                        positive pressure baghouses controlling                Regulatory Review
                                                limits for both FeMn and SiMn
                                                production. Therefore, we believe both                  emissions from the furnace. By allowing                  This action is not a significant
                                                facilities should be able to comply with                this alternative, we anticipate slightly               regulatory action and was, therefore, not
                                                these limits without the need for                       lower energy usage by the one facility                 submitted to the Office of Management
                                                additional add-on controls.                             that uses this type of baghouse.                       and Budget (OMB) for review.


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                                                                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations                                                5407

                                                B. Paperwork Reduction Act (PRA)                        action present a disproportionate risk to              J. Executive Order 12898: Federal
                                                   This action does not impose any new                  children. The health risk assessments                  Actions To Address Environmental
                                                information collection burden under the                 completed for the final rule are                       Justice in Minority Populations and
                                                PRA. OMB has previously approved the                    presented in the Residual Risk                         Low-Income Populations
                                                information collection activities                       Assessment for the Ferroalloys Source                     The EPA believes that this action does
                                                contained in the existing regulations                   Category in Support of the 2015 Final                  not have disproportionately high and
                                                and has assigned OMB control number                     Rule document, which is available in                   adverse human health or environmental
                                                2060–0676. This action adds an                          the docket for this action (EPA–HQ–                    effects on minority populations, low-
                                                alternative monitoring requirement and                  OAR–2010–0895–0281), and are                           income populations and/or indigenous
                                                a revised test method, but does not                     discussed in Section V.G of the                        peoples, as specified in Executive Order
                                                make revisions to the reporting                         preamble for the final rule (80 FR                     12898 (59 FR 7629, February 16, 1994).
                                                requirements in the final rule.                         37366).                                                This action does not affect the level of
                                                Therefore, this action does not change                                                                         protection provided to human health or
                                                the information collection requirements                 H. Executive Order 13211: Actions                      the environment because it only
                                                previously finalized and, as a result,                  Concerning Regulations That                            provides an alternative monitoring
                                                does not impose any additional burden                   Significantly Affect Energy Supply,                    provision and revised test method that
                                                on industry.                                            Distribution, or Use                                   will not affect the emission standards
                                                                                                                                                               that were finalized on June 30, 2015.
                                                C. Regulatory Flexibility Act (RFA)                       This action is not subject to Executive
                                                   I certify that this action will not have             Order 13211, because it is not a                       K. Congressional Review Act (CRA)
                                                a significant economic impact on a                      significant regulatory action under                      This action is subject to the CRA, and
                                                substantial number of small entities                    Executive Order 12866.                                 the EPA will submit a rule report to
                                                under the RFA. This final action will                   I. National Technology Transfer and                    each House of the Congress and to the
                                                not impose any requirements on small                    Advancement Act (NTTAA) and 1 CFR                      Comptroller General of the United
                                                entities. The agency has determined that                Part 51                                                States. This action is not a ‘‘major rule’’
                                                neither of the companies affected by this                                                                      as defined by 5 U.S.C. 804(2).
                                                action is considered to be a small entity.                 This action involves technical                      List of Subjects in 40 CFR Part 63
                                                D. Unfunded Mandates Reform Act                         standards. The EPA decided to use
                                                                                                        ASTM D7520–16, ‘‘Standard Test                           Environmental protection,
                                                (UMRA)                                                                                                         Administrative practice and procedures,
                                                                                                        Method for Determining the Opacity of
                                                  This action does not contain an                                                                              Air pollution control, Hazardous
                                                                                                        a Plume in the Outdoor Ambient
                                                unfunded mandate of $100 million or                                                                            substances, Incorporation by reference,
                                                                                                        Atmosphere,’’ for measuring opacity
                                                more as described in UMRA, 2 U.S.C.                                                                            Intergovernmental relations, Reporting
                                                                                                        from the shop buildings. The ASTM
                                                1531–1538, and does not significantly or                                                                       and recordkeeping requirements.
                                                uniquely affect small governments. The                  D7520–16 is a method to assess opacity
                                                                                                        whereby a Digital Still Camera is used                   Dated: December 28, 2016.
                                                action imposes no enforceable duty on                                                                          Gina McCarthy,
                                                any state, local, or tribal governments or              to capture a set of digital images of a
                                                                                                        plume against a contrasting background.                Administrator.
                                                the private sector.
                                                                                                        Each image is analyzed with software                     For the reasons stated in the
                                                E. Executive Order 13132: Federalism                    that determines plume opacity by                       preamble, the Environmental Protection
                                                  This action does not have federalism                  comparing a user defined portion of the                Agency is amending title 40, chapter I,
                                                implications. It will not have substantial              plume image where opacity is being                     part 63 of the Code of Federal
                                                direct effects on the states, on the                    measured in comparison to the                          Regulations (CFR) as follows:
                                                relationship between the national                       background providing the contrasting                   PART 63—NATIONAL EMISSION
                                                government and the states, or on the                    values. The Analysis Software is used to               STANDARDS FOR HAZARDOUS AIR
                                                distribution of power and                               average the opacities from the series of               POLLUTANTS FOR SOURCE
                                                responsibilities among the various                      digital images taken of the plume over                 CATEGORIES
                                                levels of government.                                   a fixed period of time. The software is
                                                F. Executive Order 13175: Consultation                  also used to archive the image set                     ■ 1. The authority citation for part 63
                                                and Coordination With Indian Tribal                     utilized for each opacity determination                continues to read as follows:
                                                Governments                                             including the portion of each image                        Authority: 42 U.S.C. 7401 et seq.
                                                                                                        selected by the operator. Each DCOT
                                                  This action does not have tribal
                                                                                                        vendor shall provide training for                      Subpart A—General Provisions
                                                implications as specified in Executive
                                                                                                        operators of their DCOT system. The
                                                Order 13175. There are no ferroalloys                                                                          ■ 2. Section 63.14 is amended by:
                                                                                                        training shall include the content of the
                                                production facilities that are owned or                                                                        ■ a. Redesignating paragraphs (h)(96)
                                                                                                        ‘‘Principles of Visual Emissions
                                                operated by tribal governments. Thus,                                                                          through (h)(104) as (h)(97) through
                                                Executive Order 13175 does not apply                    Measurements and Procedures to
                                                                                                                                                               (h)(105), respectively; and
                                                to this action.                                         Evaluate those Emissions Using the                     ■ b. Adding new paragraph (h)(96).
                                                                                                        Digital Camera Optical Technique
                                                G. Executive Order 13045: Protection of                 (DCOT)’’ and a description of how to                   § 63.14    Incorporations by reference.
                                                Children From Environmental Health                      operate that specific DCOT system that                 *     *    *    *    *
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                                                Risks and Safety Risks                                  passed smoke school. This standard is                    (h) * * *
                                                  This action is not subject to Executive               an acceptable alternative to EPA Method                  (96) ASTM D7520–16, Standard Test
                                                Order 13045 because it is not                           9 and is available from the American                   Method for Determining the Opacity of
                                                economically significant as defined in                  Society for Testing and Materials, 100                 a Plume in the Outdoor Ambient
                                                Executive Order 12866, and because the                  Barr Harbor Drive, Post Office Box C700,               Atmosphere, approved April 1, 2016,
                                                EPA does not believe the environmental                  West Conshohocken, PA 19428–2959.                      IBR approved for §§ 63.1625(b).
                                                health or safety risks addressed by this                See http://www.astm.org/.                              *     *    *    *    *


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                                                5408             Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations

                                                Subpart XXX—National Emission                           includes at least one pouring for each                    (2) In addition to the daily visible
                                                Standards for Hazardous Air Pollutants                  MOR located in the shop building.                      emissions observation, you must
                                                for Ferroalloys Production:                             *      *     *     *    *                              conduct the following activities:
                                                Ferromanganese and Silicomanganese                                                                                (i) Weekly confirmation that dust is
                                                                                                        ■ 4. Section 63.1626 is amended by:
                                                                                                                                                               being removed from hoppers through
                                                                                                        ■ a. Revising paragraphs (c)
                                                ■ 3. Section 63.1625 is amended by:                                                                            visual inspection, or equivalent means
                                                                                                        introductory text and (c)(1);                          of ensuring the proper functioning of
                                                ■ a. Revising paragraphs (b)(9)
                                                                                                        ■ b. Redesignating paragraphs (d)                      removal mechanisms.
                                                introductory text, (b)(9)(i), (b)(9)(ii), and
                                                                                                        through (o) as paragraphs (e) through                     (ii) Daily check of compressed air
                                                (b)(9)(v); and
                                                                                                        (p), respectively;                                     supply for pulse-jet baghouses.
                                                ■ b. Revising paragraphs (d)(1)(ii)
                                                                                                        ■ c. Adding new paragraph (d);                            (iii) An appropriate methodology for
                                                through (iv).
                                                                                                        ■ d. Republishing the heading of                       monitoring cleaning cycles to ensure
                                                  The revisions read as follows:
                                                                                                        redesignated paragraph (e), and revising               proper operation.
                                                § 63.1625 What are the performance test                 paragraphs (e)(1), (e)(3) introductory                    (iv) Monthly check of bag cleaning
                                                and compliance requirements for new,                    text, (e)(4) introductory text, and                    mechanisms for proper functioning
                                                reconstructed, and existing facilities?                 (e)(4)(ii);                                            through visual inspection or equivalent
                                                *       *     *    *    *                               ■ e. Revising redesignated paragraph (h)               means.
                                                   (b) * * *                                            introductory text;                                        (v) Quarterly visual check of bag
                                                   (9) ASTM D7520–16 to determine                       ■ f. Revising redesignated paragraph (j)               tension on reverse air and shaker-type
                                                opacity (incorporated by reference, see                 introductory text;                                     baghouses to ensure that the bags are
                                                § 63.14) with the following conditions:                 ■ g. Revising redesignated paragraph (k)               not kinked (kneed or bent) or lying on
                                                   (i) During the digital camera opacity                introductory text; and                                 their sides. Such checks are not required
                                                technique (DCOT) certification                          ■ h. Revising redesignated paragraph (p)               for shaker-type baghouses using self-
                                                procedure outlined in Section 9.2 of                    introductory text.                                     tensioning (spring loaded) devices.
                                                ASTM D7520–16, you or the DCOT                             The revisions and additions read as                    (vi) Quarterly confirmation of the
                                                vendor must present the plumes in front                 follows:                                               physical integrity of the baghouse
                                                of various backgrounds of color and                                                                            structure through visual inspection of
                                                                                                        § 63.1626 What monitoring requirements                 the baghouse interior for air leaks.
                                                contrast representing conditions                        must I meet?                                              (vii) Semiannual inspection of fans for
                                                anticipated during field use such as blue
                                                                                                        *      *     *     *    *                              wear, material buildup and corrosion
                                                sky, trees and mixed backgrounds
                                                                                                           (c) For an existing positive pressure               through visual inspection, vibration
                                                (clouds and/or a sparse tree stand).
                                                                                                        baghouse used to control emissions                     detectors, or equivalent means.
                                                   (ii) You must have standard operating
                                                procedures in place including daily or                  from an electric arc furnace that is not               *       *    *    *     *
                                                other frequency quality checks to ensure                equipped with a bag leak detection                        (e) Bag leak detection system. (1) For
                                                the equipment is within manufacturing                   system, you must specify in the                        each baghouse used to control emissions
                                                specifications as outlined in Section 8.1               standard operating procedures manual                   from an electric arc furnace, you must
                                                of ASTM D7520–16.                                       for inspections and routine                            install, operate, and maintain a bag leak
                                                                                                        maintenance, at a minimum, the                         detection system according to
                                                *       *     *    *    *                               requirements of paragraphs (c)(1) and                  paragraphs (e)(2) through (4) of this
                                                   (v) Use of this method does not                      (2) of this section.                                   section, unless a system meeting the
                                                provide or imply a certification or                        (1) You must visually inspect the                   requirements of paragraph (p) of this
                                                validation of any vendor’s hardware or                  outlet of each baghouse using Method                   section, for a CEMS and continuous
                                                software. The onus to maintain and                      22 on a twice daily basis (at least 4                  emissions rate monitoring system, is
                                                verify the certification and/or training of             hours apart) for evidence of any visible               installed for monitoring the
                                                the DCOT camera, software and operator                  emissions indicating abnormal                          concentration of particulate matter, or
                                                in accordance with ASTM D7520–16                        operations and must initiate corrective                an existing positive pressure baghouse
                                                and these requirements is on the                        actions within 1 hour of any visible                   used to control emissions from an
                                                facility, DCOT operator and DCOT                        emissions that indicates abnormal                      electric arc furnaces that is subject to
                                                vendor.                                                 operation. Corrective actions shall                    paragraph (c) of this section. You may
                                                *       *     *    *    *                               include, at a minimum, isolating,                      choose to install, operate, and maintain
                                                   (d) * * *                                            shutting down and conducting an                        a bag leak detection system for any other
                                                   (1) * * *                                            internal inspection of the baghouse                    baghouse in operation at the facility
                                                   (ii) You must conduct the opacity                    compartment that is the source of the                  according to paragraphs (e)(2) through
                                                observations according to ASTM                          visible emissions that indicate abnormal               (4) of this section.
                                                D7520–16 (incorporated by reference,                    operations.                                            *       *    *    *     *
                                                see § 63.14), for a period that includes                *      *     *     *    *                                 (3) Each bag leak detection system
                                                at least one complete furnace process                      (d) For all other non-furnace                       must meet the specifications and
                                                cycle for each furnace.                                 baghouses that are not equipped with                   requirements in paragraphs (e)(3)(i)
                                                   (iii) For a shop building that contains              bag leak detection or CEMS, the                        through (viii) of this section.
                                                more than one furnace, you must                         procedures that you specify in the                     *       *    *    *     *
                                                conduct the opacity observations                        standard operating procedures manual                      (4) You must include in the standard
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                                                according to ASTM D7520–16 for a                        for inspections and routine maintenance                operating procedures manual required
                                                period that includes one tapping period                 must, at a minimum, include the                        by paragraph (a) of this section a
                                                from each furnace located in the shop                   requirements of paragraphs (d)(1) and                  corrective action plan that specifies the
                                                building.                                               (2) of this section.                                   procedures to be followed in the case of
                                                   (iv) You must conduct the opacity                       (1) You must observe the baghouse                   a bag leak detection system alarm. The
                                                observations according to ASTM                          outlet on a daily basis for the presence               corrective action plan must include, at
                                                D7520–16 for a 1-hour period that                       of any visible emissions.                              a minimum, the procedures that you


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                                                                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations                                         5409

                                                will use to determine and record the                      (p) Particulate Matter CEMS. If you                  ACTION:   Final rule.
                                                time and cause of the alarm as well as                  are using a CEMS to measure particulate
                                                the corrective actions taken to minimize                matter emissions to meet requirements                  SUMMARY:   This regulation establishes
                                                emissions as specified in paragraphs                    of this subpart, you must install, certify,            tolerances for residues of acequinocyl in
                                                (e)(4)(i) and (ii) of this section.                     operate and maintain the particulate                   or on multiple commodities which are
                                                                                                        matter CEMS as specified in paragraphs                 identified and discussed later in this
                                                *       *    *      *     *
                                                                                                        (p)(1) through (4) of this section.                    document. Interregional Project Number
                                                   (ii) The cause of the alarm must be                                                                         4 (IR–4) requested these tolerances
                                                alleviated by taking the necessary                      *      *     *     *       *
                                                                                                                                                               under the Federal Food, Drug, and
                                                corrective action(s) that may include,                  ■ 5. Section 63.1656 is amended by
                                                                                                                                                               Cosmetic Act (FFDCA).
                                                but not be limited to, those listed in                  revising paragraphs (b)(7) introductory
                                                                                                        text, (b)(7)(i) and (ii), and (b)(7)(v) to             DATES: This regulation is effective
                                                paragraphs (e)(4)(ii)(A) through (F) of
                                                                                                        read as follows:                                       January 18, 2017. Objections and
                                                this section.
                                                                                                                                                               requests for hearings must be received
                                                *       *    *      *     *                             § 63.1656 Performance testing, test                    on or before March 20, 2017, and must
                                                   (h) Shop building opacity. In order to               methods, and compliance demonstrations.                be filed in accordance with the
                                                demonstrate continuous compliance                       *       *    *     *    *                              instructions provided in 40 CFR part
                                                with the opacity standards in § 63.1623,                   (b) * * *                                           178 (see also Unit I.C. of the
                                                you must comply with the requirements                      (7) Method 9 of appendix A–4 of 40                  SUPPLEMENTARY INFORMATION).
                                                § 63.1625(d)(1) and one of the                          CFR part 60 to determine opacity.                      ADDRESSES: The docket for this action,
                                                monitoring options in paragraphs (h)(1)                 ASTM D7520–16, ‘‘Standard Test                         identified by docket identification (ID)
                                                or (2) of this section. The selected                    Method for Determining the Opacity of                  number EPA–HQ–OPP–2015–0829, is
                                                option must be consistent with that                     a Plume in the Outdoor Ambient                         available at http://www.regulations.gov
                                                selected during the initial performance                 Atmosphere’’ may be used (incorporated                 or at the Office of Pesticide Programs
                                                test described in § 63.1625(d)(2).                      by reference, see § 63.14) with the                    Regulatory Public Docket (OPP Docket)
                                                Alternatively, you may use the                          following conditions:                                  in the Environmental Protection Agency
                                                provisions of § 63.8(f) to request                         (i) During the digital camera opacity               Docket Center (EPA/DC), West William
                                                approval to use an alternative                          technique (DCOT) certification                         Jefferson Clinton Bldg., Rm. 3334, 1301
                                                monitoring method.                                      procedure outlined in Section 9.2 of                   Constitution Ave. NW., Washington, DC
                                                *       *    *      *     *                             ASTM D7520–16, the owner or operator                   20460–0001. The Public Reading Room
                                                   (j) Requirements for sources using                   or the DCOT vendor must present the                    is open from 8:30 a.m. to 4:30 p.m.,
                                                CMS. If you demonstrate compliance                      plumes in front of various backgrounds                 Monday through Friday, excluding legal
                                                with any applicable emissions limit                     of color and contrast representing                     holidays. The telephone number for the
                                                through use of a continuous monitoring                  conditions anticipated during field use                Public Reading Room is (202) 566–1744,
                                                system (CMS), where a CMS includes a                    such as blue sky, trees and mixed                      and the telephone number for the OPP
                                                continuous parameter monitoring                         backgrounds (clouds and/or a sparse                    Docket is (703) 305–5805. Please review
                                                system (CPMS) as well as a continuous                   tree stand).                                           the visitor instructions and additional
                                                emissions monitoring system (CEMS),                        (ii) The owner or operator must also                information about the docket available
                                                you must develop a site-specific                        have standard operating procedures in                  at http://www.epa.gov/dockets.
                                                monitoring plan and submit this site-                   place including daily or other frequency
                                                                                                                                                               FOR FURTHER INFORMATION CONTACT:
                                                specific monitoring plan, if requested, at              quality checks to ensure the equipment
                                                                                                                                                               Michael Goodis, Registration Division
                                                least 60 days before your initial                       is within manufacturing specifications
                                                                                                                                                               (7505P), Office of Pesticide Programs,
                                                performance evaluation (where                           as outlined in Section 8.1 of ASTM
                                                                                                                                                               Environmental Protection Agency, 1200
                                                applicable) of your CMS. Your site-                     D7520–16.
                                                                                                                                                               Pennsylvania Ave. NW., Washington,
                                                specific monitoring plan must address                   *       *    *     *    *                              DC 20460–0001; main telephone
                                                the monitoring system design, data                         (v) Use of this approved alternative                number: (703) 305–7090; email address:
                                                collection and the quality assurance and                does not provide or imply a certification              RDFRNotices@epa.gov.
                                                quality control elements outlined in this               or validation of any vendor’s hardware
                                                                                                                                                               SUPPLEMENTARY INFORMATION:
                                                paragraph and in § 63.8(d). You must                    or software. The onus to maintain and
                                                install, operate and maintain each CMS                  verify the certification and/or training of            I. General Information
                                                according to the procedures in your                     the DCOT camera, software and operator
                                                                                                                                                               A. Does this action apply to me?
                                                approved site-specific monitoring plan.                 in accordance with ASTM D7520–16
                                                Using the process described in                          and these requirements is on the                          You may be potentially affected by
                                                § 63.8(f)(4), you may request approval of               facility, DCOT operator and DCOT                       this action if you are an agricultural
                                                monitoring system quality assurance                     vendor.                                                producer, food manufacturer, or
                                                and quality control procedures                          *       *    *     *    *                              pesticide manufacturer. The following
                                                alternative to those specified in                       [FR Doc. 2017–00156 Filed 1–17–17; 8:45 am]            list of North American Industrial
                                                paragraphs (j)(1) through (6) of this                   BILLING CODE 6560–50–P
                                                                                                                                                               Classification System (NAICS) codes is
                                                section in your site-specific monitoring                                                                       not intended to be exhaustive, but rather
                                                plan.                                                                                                          provides a guide to help readers
                                                                                                        ENVIRONMENTAL PROTECTION                               determine whether this document
                                                *       *    *      *     *
                                                                                                        AGENCY                                                 applies to them. Potentially affected
                                                   (k) If you have an operating limit that
                                                                                                                                                               entities may include:
mstockstill on DSK3G9T082PROD with RULES




                                                requires the use of a CPMS, you must                    40 CFR Part 180                                           • Crop production (NAICS code 111).
                                                install, operate and maintain each                                                                                • Animal production (NAICS code
                                                continuous parameter monitoring                         [EPA–HQ–OPP–2015–0829; FRL–9956–85]
                                                                                                                                                               112).
                                                system according to the procedures in                                                                             • Food manufacturing (NAICS code
                                                paragraphs (k)(1) through (7) of this                   Acequinocyl; Pesticide Tolerances
                                                                                                                                                               311).
                                                section.                                                AGENCY: Environmental Protection                          • Pesticide manufacturing (NAICS
                                                *       *    *      *     *                             Agency (EPA).                                          code 32532).


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Document Created: 2018-02-01 15:19:09
Document Modified: 2018-02-01 15:19:09
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule; notice of final action on reconsideration.
DatesThis final action is effective on January 18, 2017. The incorporation by reference of certain publications listed in the rule is approved by the Director of the Federal Register as of January 18, 2017.
ContactPhil Mulrine, Sector Policies and Programs Division (D243-02), Office of Air Quality Planning and Standards, Environmental Protection Agency, Research Triangle Park, North Carolina 27711; telephone number: (919) 541-5289; fax number:
FR Citation82 FR 5401 
RIN Number2060-AS90
CFR AssociatedEnvironmental Protection; Administrative Practice and Procedures; Air Pollution Control; Hazardous Substances; Incorporation by Reference; Intergovernmental Relations and Reporting and Recordkeeping Requirements

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