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This rulemaking will take final action on the proposed amendments to the General Provisions of the National Emission Standards for Hazardous Air Pollutants (NESHAP) (40 CFR 63, subpart A) included in EPA’s proposal "Reclassification of Major Sources as Area Sources Under section 112 of the Clean Air Act" (See 84 FR 36304, July 26, 2019). The amendments allow a major source to become an area source at any time by taking enforceable limits on its potential to emit hazardous air emissions, and, thus, become not subject to NESHAP for major sources under Clean Air Act (CAA) section 112. The amendments would implement the EPA's plain language reading of the CAA section 112 definitions of 'major' and 'area' sources as discussed in the January 2018 William Wehrum memorandum titled "Reclassification of Major Sources as Area Sources Under section 112 of the Clean Air Act." (See notice in 83 FR 5543, February 8, 2018.)

Statement of Need:

The EPA will issue a final rule to add regulatory text to the General Provisions of the National Emission Standards for Hazardous Air Pollutants (NESHAP) (40 CFR 63, subpart A) to reflect EPA's plain language reading of the definitions of major source and area source in Clean Air Act section 112. The regulatory amendments will address when a major source can become an area source, and thus, become not subject to NESHAP for major sources under Clean Air Act (CAA) section 112.

Summary of the Legal Basis:

The EPA issued a proposed rule on July 26, 2019 to add regulatory text that reflects EPA’s plain language reading of the definitions of major source and area source in section 112 of the Clean Air Act. This rulemaking will take final action on the proposed amendments to the General Provisions of the National Emission Standards for Hazardous Air Pollutants (NESHAP) (40 CFR 63, subpart A) included in EPA’s proposal Reclassification of Major Sources as Area Sources Under section 112 of the Clean Air Act (See 84 FR 36304, July 26, 2019). This rulemaking implements EPA’s authority under section 112 of the CAA.

Alternatives:

EPA is taking comments on the plain language reading of the definition of major and area sources, its consistency with the clear language and structure of the CAA, and whether safeguards may be appropriate to protect against emissions increases.

Anticipated Costs and Benefits:

Adding regulatory text to be consistent with the plain language reading will allow sources classified as major to become area sources at any time. As proposed, annual cost savings for the primary scenario analyzed, for year 2 (and for each following year) are presented below. Benefits (cost savings) are presented at 7% and 3% discount rate in Billions 2016$.
Present value: $2.39 (7%); $6.24 (3%)
Equivalent Annualized Value: $0.17 (7%); $0.19 (3%)

Risks:

No anticipated risks.