EPA-450/3-81-015b
Petroleum Fugitive Emissions-
     Background Information
   for Promulgated  Standards
        Emission Standards and Engineering Division
        U.S. ENVIRONMENTAL PROTECTION AGENCY
           Office of Air, Noise, and Radiation
         Office of Air Quality Planning and Standards
        Research Triangle Park, North Carolina 27711

                October 1983

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This report has been reviewed by the Emission Standards and Engineering Division of the Office of Air
Quality Planning and Standards, EPA, and approved for publication. Mention of trade names or
commercial products is not intended to constitute endorsement or recommendation for use. Copies of
this report are available through the Library Services Office (MD-35), U.S. Environmental Protection
Agency, Research'Triangle Park, N.C.  27711, or from the National Technical Information Services,
5285 Port Royal Road, Springfield, Virginia 22161.

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                     ENVIRONMENTAL PROTECTION AGENCY

                          Background Information
                 and Final Environmental Impact Statement
            for Equipment Leaks of VOC in Petroleum Refineries
                               Prepared by:
        Farmer
Director, Emission Standards and Engineering Division
U.S. Environmental Protection Agency
Research Triangle Park, North Carolina  27711
(Date)
1.   The promulgated standards of performance will  limit emissions of VOC
     from equipment leaks in new, modified, and reconstructed petroleum
     refinery process units and compressors.  Section 111 of the Clean
     Air Act (42 U.S.C.  7411), as amended, directs the Administrator to
     establish standards of performance for any category of new stationary
     source of air pollution that". .  . causes or contributes significantly
     to air pollution which may reasonably be anticipated to endanger
     public health or welfare.

2.   Copies of this document have been sent to the following Federal
     Departments:   Labor, Health and Human Services, Defense, Transportation,
     Agriculture,  Commerce, Interior,  and Energy; the National  Science
     Foundation; the Council on Environmental Quality; State and Territorial
     Pollution Program Administrators; EPA Regional Administrators;  Local
     Air Pollution Control Officials;  Office of Management and Budget;
     and other interested parties.

3.   For additional information contact:

   >  Mr. Gilbert Wood
     Standards Development Branch (MD-13)
     U.S. Environmental Protection Agency
     Research Triangle Park, NC  27711
     Telephone:  (919) 541-5578

4.   Copies of this document may be obtained from:

     U.S. EPA Library (MD-35)
     Research Triangle Park, NC  27711
     Telephone:  (919) 541-2777

     National Technical Information Service
     5285 Port Royal Road
     Springfield,  VA  22161

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IV

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                            TABLE OF CONTENTS
 Title
                                                                 Page
 1.0  SUMMARY	  !_!
      1.1  Summary of Changes Since Proposal  .  .	1_1
      1.2  Summary of Impacts of Promulgated  Action	1-6
      1.3  Summary of Public Comments	  1-8
 2.0  STANDARDS.  ...	  2-1
      2.1  General  Discussion	2-1
      2.2  Valves	2-10
      2.3  Pumps	2-35
      2.4  Compressors	2-44
      2.5  Pressure Relief  Devices  	  ....  2-46
      2.6  Sampling Systems	2-51
      2.7  Open-Ended  Lines	2-53
      2.8  Flanges, Liquid  Service  Relief  Valves,  and
           Heavy Liquid Service  Valves  and  Pump Seals	2-54
      2.9  Control  Devices	  2-56
 3.0   APPLICABILITY	'	^-l
      3.1   Affected Facility  	  3_1
      3.2   Definition  of "In  VOC Service"	3_8
      3.3   Exclusions	  3-12
      3.4   Small Refiners.  .  .	3_15
4.0   MODIFIED SOURCES	   4-1
      4.1   Emission  Increase  	   4_1
     4.2   Capital   Expenditures	4.3
     4.3   Small Facilities	4.3
5.0   RECONSTRUCTION	5_!
6.0   LEGAL	5.!
7.0  TEST METHODS	7_!
8.0  RECORDKEEPING AND REPORTING	   8-1

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                     TABLE OF CONTENTS (concluded)
                                                               Page
APPENDIX A - Incremental Cost Effectiveness of
             Control Techniques for Equipment
             Leaks of VOC	
APPENDIX B - Regulatory Decisions Affecting Standards
             for SOCMI 	
APPENDIX C - Evaluation of Available Equipment Leak Data
APPENDIX D - Model Unit and Nationwide Impacts
A-l


B-l

C-l

D-l
                                   VI

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                             LIST OF TABLES
Title
Page
1-1   Summary of Individual Component Impacts	     1-7
1-2   List of Commenters On Proposed Standards of
      Performance for Fugitive Emission Sources in the
      Petroleum Refining Industry	     1-9
2-1   Comparison of CTG Recommendations and NSPS
      Requirements	.'....     2-3
2-2   Summary of Individual Component Impacts. .......     2-5
2-3   Projected VOC Fugitive Emissions from Facilities for
      1982-1986 Under Uncontrolled, Baseline, and NSPS ...     2-7
2-4   Revised Emission Reductions and Costs for Leak
      Detection and Repair Programs	     2-13
2-5   Valve Leak Detection and Repair Cost Estimates ....     2-18
2-6   Derivation of Average Component Monitoring Time. . .  .     2-30
A-l   Summary of the Individual Component Control
      Impacts	     A-3
A-2   Pressure Relief Device Impacts 	     A-4
A-3   Compressor Seal Impacts	     A-7
A-4   Open-ended Lines Impacts	,  .     A-8
A-5   Sampling Connection System Impacts 	     A-9
A-6   Valve Emissions and Emission Reductions	     A-10
A-7   Valve Leak Detection and Repair Costs. ... 	     A-ll
A-8   Sealed Bellows Valve Cost Impacts	     A-12
A-9   Cost Effectiveness of Valve Controls 	     A-13
A-10  Pump Emissions and Emission Reductions 	     A-14
A-ll  Pump Leak Detection and Repair Costs	     A-15
A-12  Dual Mechanical Seal System Costs for Pumps	     A-17
A-13  Cost Effectiveness of Pump Controls	     A-18
                           VII

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                               1.0  SUMMARY

      On January 4, 1983, the U.S. Environmental Protection Agency (EPA)
 proposed standards of performance for fugitive emission sources of
 volatile organic compounds (VOC) in the petroleum refining industry
 (48 FR 279) under the authority of Section 111 of the Clean Air Act.
 Public comments were requested on the proposed standards in the Federal
 Register, and 24 commenters responded.  Most of the commenters represented
 refining companies or industry associations.  Other commenters included
 an environmental  group,  the Department of the Interior, and vendors of
 equipment used to control  fugitive emissions.  This summary of comments
 and EPA's responses  to these  comments serve  as the  basis for the revisions
 made to the applicability  and the requirements of the proposed standards.
 1.1  SUMMARY OF CHANGES  SINCE PROPOSAL
      The proposed  standards were revised  as  a result  of reviewing
 public  comments.   The  major revisions concern the following:
     •     Leak Detection and  Repair for Refineries  Located  in  the
           North Slope  of Alaska
     •     Alternative  for Determining  a "Capital Expenditure"
     •     Clarification of Reconstruction  Provisions
     •     Provision for Difficult-to-Monitor  Valves in  New  Units
     •     Exemptions for Compressors
     •     Addition of  Reporting  Requirements
     •     Open-ended Lines on Double  Block and Bleed  Valves
 1-1-1   Leak  Detection  and Repair  for  Refineries Located  in the North
        Slope of Alaska                       ~~'	
     Since  proposal, EPA has  reviewed comments concerning refining
 operations  in  the North Slope of Alaska and determined that the costs
 to comply with certain aspects of the proposed standards can be unreasonable.
 Leak detection and repair programs incur higher labor, administrative,
 and support costs at plants that are located  at great distances from
major population centers  and particularly those that experience extremely
                                  1-1

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low temperatures as in the arctic.  Thus, EPA decided to exempt plants
located in the North Slope of Alaska from the routine leak detection
and repair requirements.  EPA excluded these plants only from the
routine leak detection and repair requirements because the costs of
the other requirements are reasonable.
1.1.2  Alternative for Determining a "Capital Expenditure"
     The General Provisions (Subpart A) of 40 CFR'Part 60, require that
increases in emissions of a pollutant covered by applicable standards
trigger the application of standards of performance for existing facilities,
These increases make a source covered by standards a modified source, '
as set forth in Section 111 of the Act.  EPA has interpreted Section
111 so that production rate increases accomplished without a capital
expenditure do not trigger these provisions even though they might be
accompanied by an increase in emissions (See 40 CFR 60.14(e)(2)) Capital
expenditure is defined in 40 CFR 60.2.  In the proposed standards, EPA
also excluded increases in emissions resulting from process improve-
ments accomplished without a capital expenditure from being considered
a modification.  The intent was to exclude minor changes in operations
as indicated by changes not accompanied by a capital expenditure.
     The annual asset guideline repair allowance (AA6RA) and the original
cost basis are used to define capital expenditure (see 40 CFR 60.2).
The definition of AA6RA is specified by the Internal Revenue Service
(IRS) and its use has not changed despite tax law changes in 1982.  In
response to the comments concerning the difficulties of using the AAGRA
and the original cost basis, EPA is providing in the standards for
equipment leaks an alternative procedure for determining capital
expenditure.  The purpose of the alternative is to make the determination
of capital expenditure more practicable, yet maintain the original
intent of the definition.  This alternative provides that a capital
expenditure would be incurred if actual  costs exceed the product,- P, of
the existing facility's (that is, the equipment covered by the standards)
replacement cost A, the AAGRA basis and an inflation factor,  Y, as shown
in the following equation:
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           P = A x Y x 0.07,  where
           A = existing facility replacement cost,
           Y = the percent of the present replacement cost which is
               equivalent to the original cost,
             = 1.0 - 0.575 log (X), and
           X = the year of construction.
 1.1.3  Clarification of Reconstruction Provisions
      The provisions for reconstruction (40  CFR  60.15)  imply  that  costs
 are accumulated over an unlimited  time period.   Commenters,  however,
 objected to a continuous accumulation  of costs  because  refineries are
 continually replacing components.   To  clarify the application  of  Section
 60.15,  EPA is defining "proposed replacement" under  this  standard to
 include components which are  replaced  pursuant  to all continuous  programs
 of component  replacement which  commence  (but are  not necessarily  completed)
 within  a 2-year period.   Thus,  EPA will  count toward the  50  percent
 reconstruction  threshold the  "fixed capital cost"  of all  depreciable
 components  replaced  pursuant  to all continuous  programs of reconstruction
 which commmence  within  any  2-year  period  following proposal  of these
 standards.
     EPA is further  clarifying  the  intent or the  reconstruction provisions
 based on  comments  concerning  routine equipment  replacement.  In response
 to  these  comments, EPA  is clarifying that certain  routine replacements
 are not  considered in the basis for reconstruction.  The  routine replace-
ments excluded by  the final standards  from reconstruction are valve
 packings, pump seals, nuts and  bolts, and rupture disks.  Replacement
of equipment pieces, such as  valves and pumps, at turnaround or at
other times must be  included when considering whether a reconstruction
will take place.
1.1.4  Provision for Difficult-to-Monitor Valves in New Units
     At proposal, there was no exemption for difficult-to-monitor valves
in new units, although difficult-to-monitor valves were exempt from
routine monitoring in units covered through the  modification or
reconstruction provisions.  Commenters argued that while the number  of
difficult-to-monitor valves can  be  substantially reduced in number for
new units, they cannot be totally eliminated.  Upon reviewing the
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confluent letters, EPA decided to permit an allowable percentage of
valves in a new unit to be designated as difficult-to-monitor.  Based on
existing units, about 3 percent of the total  number of valves may be
impossible to eliminate without additional  costs.  Therefore, EPA is
allowing up to 3 percent of total  numbers of valves to be treated as
difficult-to-monitor valves for new units.
1.1.5  Exemptions for Compressors
     Commenters were concerned that process streams with a high
hydrogen content would be subject to the standards.  The commenters
contended that such streams would have a lower percentage of VOC and,
consequently, the controls required by the  proposed standards would
achieve lower emission reductions and have  a higher cost effectiveness
($/Mg of VOC emission reduction).
     Upon analyzing the cost effectiveness  of valves and compressors
in hydrogen service (greater than 50 volume percent hydrogen) (Document
Reference No. IV-B-9), EPA determined that  significant emission reduc-
tions are achieved for valves in hydrogen service at a reasonable cost
($l06/Mg VOC).  However, control of compressors in hydrogen service
results in a cost effectiveness of $4,600/Mg VOC.  EPA, therefore,
decided to exempt these compressors from the standards.
     Commenters also implied that EPA had provided an exemption from
the standards for existing compressors.  EPA provided no blanket exemp-
tion in the proposed standards even though  EPA discussed that certain
reciprocating compressors might not be covered under the reconstruction
provisions if retrofitting the required equipment was technologically
or economically infeasible (See 40 CFR 60.15(e)).  To make EPA's intent
clear and to reduce the burden of reviewing reconstruction determinations,
EPA is explicitly exempting reciprocating compressors that become
affected by the standards through 40 CFR 60.14 or 60.15 from the stan-
dards for compressors provided the owner or operator demonstrates that
recasting the distance piece or replacing the compressor are the only
options available to bring the compressor into compliance.  If an owner
or operator is replacing a compressor or recasting the distance piece
for some other reason than to reduce emissions and comply with the
standards or if these actions occur later,  then a modified or recon-
structed compressor would not be exempt from the standards.
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 1.1.6  Addition of Reporting Requirements
      The proposed standards did not require routine reporting.   The
 preamble to the proposed standards addressed three alternative  levels
 of reporting requirements.  The alternative of no routine reporting
 was selected because State or local  agencies, who usually are delegated
 the responsibility for enforcement of the standards,  could require
 routine reporting.
      In response to comments on the  enforceability of the standards and
 comments on  the need for routine reporting, EPA decided  to require
 routine reporting in these standards of  performance rather than  relying
 on  individual  State requirements.   Compliance with the leak detection
 and repair  program and equipment requirements will  be assessed through
 semiannual  reports,  review of records, and  by inspection.   The semi-
 annual  reports  provide a summary of  the  data  recorded on  leak detection
 and repair of valves,  pumps,  and  other equipment  types.   Notifications
 are still required as  described  in the General  Provisions  for new
 source  standards  (40  CFR 60.7).   However, the  semiannual  reports may be
 waived  for affected  facilities  in  States where  the  regulatory program
 has  been delegated,  if EPA,  in  the course of  delegating such authority,
 approves reporting  requirements  or an alternative means of  source
 surveillance adopted by  the  State.   In these  cases, such sources would
 be  required to  comply  with the  requirements adopted by the  State.
 1.1.7  Open-Ended  Lines  on Double Block and Bleed Valves
     The proposed  standards  required all  open-ended lines or valves
 to be capped except when they are being used.   In some cases, however,
 open-ended valves are  installed in a "double block-and-bleed" arrangement
 such that emissions must occur to the atmosphere through the open end
 of the bleed valve.  In  such cases, the open end of the bleed valve was
 not required to be capped because they are used to vent the line between
 the block valves.  However, when the bleed valve is not open, then it
must be capped.  This was not as clear as it could have been in  the
 proposed standards and, therefore, a specific provision has been
 added to the standards.
                                 1-5

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1.2  SUMMARY OF IMPACTS OF PROMULGATED ACTION,
1.2.1  Alternatives to Promulgated Action
     The regulatory alternatives discussed in Chapter 6 of the BID for
the proposed standards generally reflect the different levels of emission
control.  They were used to help in selection of the best demonstrated
technology, considering costs and nonair quality health, environmental,
and economic impacts for fugitive emission sources in the petroleum
refining industry.  These alternatives remain the same; however, the
costs, emission reductions, cost effectiveness, and incremental  cost
effectiveness for the various levels of control included in the regulatory
alternatives, which were estimated and then summarized in the preamble
to the proposed standards, have been reevaluated and are now summarized
on a per component basis as presented in Table 1-1.  These estimates
served as the basis for determining the impacts of the standards.
Model Unit and nationwide impacts of the promulgated standards are
documented in Appendix D.
1.2.2  Environmental Impacts of Promulgated Action
     Environmental impacts of the proposed standards are described in
48 FR 279.  The revisions to the applicability and provisions of the
proposed standards (described in Section 1.1) will have a minimal
effect on the environmental impacts of the standards.
1.2.3  Energy and Economic Impacts of Promulgated Action
     The energy and economic impacts of the standards are described in
Chapters 8 and 9 and Appendix F of the BID for the proposed standards.
In general, there has been little change in these impacts since proposal.
      The nationwide cost impacts reported in the preamble to the
promulgated standards are lower than the impacts reported at proposal.
At proposal, the nationwide cost impacts were based on refineries  not
subject to State or regional regulations to control equipment leaks of
VOC.  However, the nationwide impacts have subsequently been revised
(as shown in Appendix D) based upon the baseline control costs to
comply with existing regulations for equipment leaks of VOC.
1.2.4  Other Considerations
     1.2.4.1  Irreversible and Irretrievable Commitment of Resources.
Section 7.6.1 of the BID for the proposed standards concluded that the
                                   1-6

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standards will not result in any irreversible or irretrievable commit-
ment of resources.  It was also concluded that the standards  should
help to save resources due to the energy savings associated with the
reduction in emissions.  These conclusions remain unchanged since
proposal.
      1.2.4.2  Environmental and Energy Impacts of Delayed Standards.
Table F-li of the BID for the proposed standards summarizes the
environmental and energy impacts associated with delaying promulgation
of the standards.  The emission reductions and associated energy savings
shown would be irretrievably lost at the rates shown for each of the
5 years.
1.3  SUMMARY OF PUBLIC COMMENTS
     Letters were received from 24 commenters commenting on the
proposed standards and the BID for the proposed standards.  There was
one  request for a public hearing, however, these commenters were request-
ing  a meeting with EPA for clarification of the proposed standards.
Minutes of this meeting  are  contained  in the project docket.   A list
of commenters, their  affiliations, and the EPA docket number assigned
to their correspondence  is  given in Table 1-2.
     The comments have been  categorized under the following topics:
          Standards  (Section 2)
          Applicability  (Section 3)
          Modification  (Section 4)
          Reconstruction (Section 5)
          Legal  (Section 6)
          Test Methods  (Section  7)
          Recordkeeping  and Reporting  (Section  8)
          Appendix A -  Incremental Cost Effectiveness of Control Techniques
                        for Equipment Leaks  of VOC
           Appendix B - Regulatory Decisions  Affecting Standards
                        for SOCMI
           Appendix C - Evaluation  of Available  Equipment Leak  Data

           Appendix D - Model Unit  and  Nationwide Impacts
                                   1-8

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   TABLE 1-2.  LIST OF COMMENTERS ON PROPOSED STANDARDS OF PERFORMANCE
                         FOR FUGITIVE EMISSION SOURCES
                         IN THE PETROLEUM. REFINING
                                  INDUSTRY
 COMMENTER AND AFFlTTATfON
 1.  Mr.  B.T.  McMillan
     Allied Chemical
     P.O.  Box  1053R
     Morristown,  NJ  07960

 2.  Mr.  C.H.  Barre
     Marathon  Petroleum Company
     Findlay,  Ohio 45840

 3.  Mr.  R.E.  Farrell
     Standard  Oil  Company  of Ohio
     Midland Building
     Cleveland, Ohio   44115

 4.  Mr. A.H.  Nickolaus
     Texas  Chemical Council
     100 Brazos, Suite 200
     Austin, TX  78701-2476

 5.  Ms. Geraldine  V.  Cox
     Chemical  Manufacturers' Association
     2501 M. Street, North West
     Washington, DC  20037

 6.   Mr. Robert N.  Harrison
     Western Oil and Gas Association
     727 West  Seventh  Street
     Los Angeles, CA  90017

 7.   Mr. James A. Young
     Independent Refiners'  Association
     900 Wilshire Boulevard, Suite 1024
     Los Angeles,  CA  90017

8.   Mr. Phillip L. Youngblood
    Conoco, Inc.
    Suite 2136, Post  Office Box 2197
    Houston, TX  77252

9.  Mr. Roger Noble
    John  Zink  Company
    4401  S. Peoria
    Tulsa,  OK   74105
DOCKET ITEM'
     IV-D-3
     IV-D-4
     IV-D-5
     IV-D-6
     IV-D-7
    IV-D-8;
    IV-D-8a;
    IV-D-1;
    IV-D-2

    IV-D-9
    IV-D-10
    IV-D-11
                                   1-9

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 COMMENTER AND AFFILIATION
                TABLE 1-2.   LIST OF  COMMENTERS  ON  PROPOSED
                         STANDARDS OF PERFORMANCE
                         FOR FUGITIVE EMISSION  SOURCES
                         IN THE PETROLEUM  REFINING
                            INDUSTRY (Continued)
10.  Mr. Herman A. Fritschen
     Cities Service Company  .
     Post Office Box 300
     Tulsa, OK  74102

11.  Mr. Alan J. Schuyler
     ARCO Alaska, Inc.
     Post Office Box 360
     Anchorage, Alaska  99510

12.  Mr. Paul M. Kaplow
     Atlantic Richfield Company
     Post Office Box 2679-T.A.
     Los Angeles, CA  90051

13.  Mr. William F. O'Keefe
     American Petroleum Institute
     201 L Street, Northwest
     Washington, DC  20037

14.  Mr. A.G. Smith
     Shell Oil Company
     One Shell Plaza
     Post Office Box 4320
     Houston, TX  77210

15.. Mr. J.D. Reed
     Standard Oil Company  (Indiana)
     200 East Randolf Drive
     Chicago, IL  60601

16.  Mr. J.J. Moon
     Phillips Petroleum Company
     Bartlesville, OK  74004

17.  Mr. Louis R. Harris
     B  S & B Safety  Systems, Inc.
     7455  East 46th  Street
     Post  Office  Box 45590
     Tulsa,  OK   74145

18.  Mr. R.H.  Murray
     Mobil Oil  Corporation
     3225  Gallows Road
     Fairfax,  VA  22037
DOCKET ITEM NO.

     IV-D-12
     IV-D-13
      IV-D-14
      IV-D-15
      IV-D-16
       IV-D-17
       IV-D-18
       IV-D-19
       IV-D-21
                                   1-10

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 COMMENTER AND AFFILIATION
                TABLE 1-2  LIST OF COMMENTERS ON PROPOSED
                         STANDARDS OF PERFORMANCE
                         FOR FUGITIVE EMISSION SOURCES
                         IN THE PETROLEUM REFINING
                            INDUSTRY (Concluded)
DOCKET ITEM NO.
 19.  Mr. M.W. Anderson
     Kerr-McGee Corporation
     Kerr-McGee Center
     Oklahoma City, OK  73125

 20.  Mr. J.H. Leonard
     Beacon Oil Company
     525 West Third Street
     Hanford, CA  93230

 21.  Mr. William L. Rogers
     Gulf Oil Corporation
     Post Office Drawer 2038
     Pittsburgh, PA  15230

 22.  Mr. Joseph M. Macrum
     Texaco U.S.A.
     Post Office Box 52332
     Houston, TX  77052

23.  Mr. Bruce Blanchard
     U.S. Department of the Interior
     Washington, DC  20240

24.  Mr. David D.  Doniger
     National Resources Defense Council,  Inc.
     1725 I Street, N.W.
     Washington, D.C.   20006
      IV-D-22
      IV-D-23
      IV-D-24
      IV-D-25
      IV-D-25a
      IV-D-26
      IV-D-30
                                  1-11

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                              2.0  STANDARDS

      This chapter summarizes public comments  and  responses  to  comments
 pertaining to the proposed standards.   Section  2.1  presents those
 comments  and responses  that pertain to  the  standards  in  general;
 Sections  2.2 through  2.8 present comments and responses  that pertain  to
 particular requirements for each piece  of equipment covered by the
 standards;  and Section  2.9 presents comments  and  responses  on  control
 devices.   In Chapter  2  and the  following chapters, information used in
 responding  to the public comments  is referenced according to document
 number within the project  docket,  Docket No.  A-80-44.
 2.1   GENERAL DISCUSSION
 Comment:
      Commenters  (IV-D-5,  IV-D-12,  and IV-D-25) wrote that the  standards
 should be the same as State  requirements.  Commenters (IV-D-22 and
 IV-D-24) argued  that the proposed  standards would be redundant and
 conflict with  existing  State regulations.  For example, States may
 presently require leak  detection and repair of compressor seals while
 the NSPS would require  equipment specifications.  One commenter (IV-D-12)
 thought the  standards would  require the abandonment of existing programs.
 Response:               .
     The Clean Air Act Amendments of 1977 require each State in which
there are areas where the national ambient air quality standards (NAAQS)
 are exceeded  to adopt and submit revised State implementation plans
 (SIP's) to EPA.  Sections 172(a)(2) and (b)(3) of the Clean Air Act
 require that  nonattainment area SIP's include reasonably available
control technology (RACT) requirements  for stationary sources.   EPA
 issues Control Techniques Guidelines (CTG)  documents to  provide State
and local  air pollution control  agencies with an initial  information
base for proceeding with their own assessment of RACT for specific
stationary sources.
                                  2-1

-------
     Most State regulations for fugitive VOC emissions are based on the
"Control of Volatile Organic Compound Leaks for Petroleum Refinery
Equipment," EPA-450/2-78-036, released by EPA in June 1978 (Document
No. II-A-6).  This CTG was issued by EPA to provide information and
guidance to State and local air pollution control agencies for their
use in regulating VOC emissions in oxidant nonattainment areas.  The
CTG identifies RACT that can be applied to existing refineries to control
VOC from equipment leaks.
     The Clean Air Act requires that standards of performance for
stationary sources reflect the degree of emission limitation achievable
through application of the best adequately demonstrated technological
system of continuous emission reduction (best demonstrated technology,
BDT), taking into consideration the cost of achieving such emission
reduction, any nonair quality health and environmental impacts, and
energy requirements.  NSPS applies to newly contructed, modified, or
reconstructed facilities in both attainment and non-attainment areas.
Because the purpose of the NSPS and the purpose of the State regulations,
as reflected in the Clean Air Act, differ EPA believes that it would be
inappropriate for the requirements to be necessarily the same.
     The standards are not redundant, and no substantial conflict
occurs between the NSPS and State requirements.  The NSPS requirements
and the CTG recommendations are identified and compared in Table 2-1.
The NSPS require monthly/quarterly leak detection and repair of gas and
light liquid valves and monthly leak detection and repair for light
liquid pumps, while the CTG recommends less frequent leak detection and
repair (quarterly leak detection and repair for gas valves and yearly
leak detection and repair for light liquid valves and pumps).  The
increased monitoring frequencies of the NSPS are reasonable because the
incremental cost and emission reduction are reasonable.
     The standards for pressure relief devices and compressors are based
on the use of equipment, whereas the CTG recommends leak detection and
repair for pressure relief devices and compressors.:  The CTG includes
no recommendation for sampling connections.  The standards require
equipment and work practices for sampling connections; again, there is
no conflict between the NSPS and State requirements.  The standards
                                  2-2

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also provide alternatives for valves that allow an owner or operator
to continue the CTG control  level for process units with less than
2.0 percent of the valves leaking.  Other alternatives are allowed  for
valves, and three alternatives are allowed for pumps.   EPA does  not
believe th.at the standards would conflict with most existing State
regulations.  The standards apply only to affected facilities (compressors
are one of the facilities covered by the standards) that commence
construction or modification after January 4, 1983.  A conflict  may
occur if State agencies require leak detection and repair.  The  conflict
is requiring unneeded leak detection and repair for compressors  equipped
with the controls required by the standards.  Most State air pollution
control regulations include variance procedures that owners or operators
can assess.  In the few cases where it occurs, costs would not
be unreasonable.  These procedures could be used to eliminate the
conflict.  After considering the differences between the CTG and NSPS,
EPA concluded that the NSPS requirements are not redundant and do not
substantially conflict with existing State regulations.
     EPA also judged that the standards do not require or motivate
refiners to abandon existing plant leak detection and repair programs.
In making these judgments, EPA noted that the CTG was based on RACT,
whereas the NSPS is based on BDT, considering costs.  In determining
BDT, EPA analyzed the cost effectiveness and incremental  cost effec-
tiveness of a variety of control techniques (presented in Table  2-2),
including those presently required by State regulations.   EPA also
included existing programs in assessing the impacts of the NSPS.
Based on this, EPA determined that the costs of the control techniques
selected as the basis for the standards are reasonable.  The final
standards and existing programs should work together,  yet to the extent
that some existing regulations may conflict with the NSPS, refiners can
request a variance for existing programs as discussed in the previous
paragraph.
Comment:
    Some commenters (IV-D-5, IV-D-16, and IV-D-25) contended that EPA
overstated the emission reductions of the proposed standards by  under-
stating baseline emissions.  The emission reductions should reflect the
sources covered by State regulations.  Another commenter (IV-D-15)
                                  2-4

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         Table  2-2.   SUMMARY  OF THE  INDIVIDUAL COMPONENT  CONTROL  IMPACTS*
Fugitive Emission
Source
Pressure relief devices
Compressors

Open-ended valves
Sampling connection
systems
Valves

Pumps



Control Technique
Quarterly LDR
Monthly LDR
Rupture disksd
Controlled degassing
vents
Caps on open ends
Closed purge sampling-

Quarterly LDR
Monthly LDR
Sealed bellows valves
Annual LDR
Quarterly LDR
Monthly LDR
Dual mechanical seal
system
Emission Reduction
(Mg/yr)
4.4
5.3
9.8
16.5

2.8
2.6

66
77
110
3.0
9.8
11.5
13.9

Average Cost
Effectiveness
($/Mg)b
(170)
(110)
410
150

460
810

(110)
(60)
4,700
860
157
158
2,000

Incremental Cost
Effectiveness
($/Mg)c
(170)
250
1,000
150

460
810

(110)
310
16,700
860
(140)
170
10,900

(xx) = Cost savings
LDR = Leak detection and  repair

acosts and emission reductions are based on fugitive emission component counts in Model B from the BID
 for the  proposed standards, EPA-450/3-81-015a, page 6-3, and from Tables A-2 through A-13 of Appendix A.

^Average  Cost Effectiveness = net annualized costs per component * annual VOC emission reduction  oer
 component.

clncremental Cost Effectiveness = (net annualized cost of the control technique - net annualized  cost
 of the next less restrictive control technique)  * (annual emission reduction of control technique -
 annual emission reduction of the next less restrictive control  technique).

dUnder!1ned control  techniques were selected as basis for standards.
                                                 2-5

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wrote that it was not clear whether the baseline emissions represent
existing levels of control or no control.
Response:
     Promulgation of the Priority List (40 CFR 60.16, 44 FR 4922,
August 21, 1979), reflects EPA's determination that refinery fugitive
emissions are a major source category which contribute significantly to
air pollution.  As discussed in Chapter 7 of the BID for the proposed
standards, baseline reflects a weighted average of refineries in
attainment (no regulations) and nonattainment (recommendations of the
refinery CTG) areas and, therefore, does account for sources covered
by State regulations.  Table 2-3, taken from the BID for the proposed
standards, compares the projected VOC emissions under baseline level of
control for 1982-1986 with projected emissions under both the uncontrolled
level and the level of control obtained by the standards.
Comment:
     One commenter (IV-D-6) stated that the proposed regulations are
difficult to follow because of the exemptions, alternatives, and the
Federal Register format, which requires almost continuous "cross-checking."
The commenter suggested that the requirements for a specific component
appear as a separate section to improve the readability of the regulations.
Response:
     The format of the standards does require some cross-checking as the
commenter mentions.  However, the standards do present individual component
requirements in separate sections as requested by the commenter and
discuss common aspects of these individual component requirements in
other sections (e.g., Section 60.595 Test Method and Procedures).  This
format greatly reduces the redundancy in presenting the regulations.
Comment:
     One commenter (IV-D-14) maintained that the standards should apply
only to valves because they are the largest single source, and annua]
inspection and repair programs are cost effective in reducing emissions
only from valves.  In addition, the commenter wrote that limiting the
standards to valves would result in a more efficient and practicable
approach to reducing emissions from new, modified, and reconstructed
sources.  Other fugitive emission components comprise a smaller source
of emissions, and control for these components either has not been
demonstrated or has not been shown to be cost effective.
                                  2-6

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    Table 2-3.  PROJECTED VOC FUGITIVE EMISSIONS FROM FACILITIES FOR
            1982-1986 UNDER UNCONTROLLED, BASELINE, AND NSPSa
Year
   Total Fugitive Emissions Projected (Gg/yr)

Uncontrolled13    Baseline0          NSPSd
1982
1983
1984
1985
1986
12
24
37
51
64
9.2
19
29
39
49
3.4
7.1
11
14
18
o
 The emissions estimates are taken from Table F-10 of the BID for the
 proposed standards.  The estimates are based on projected new, modified,
 and reconstructed model units.
b                                     '              '  •
 The uncontrolled emissions projection assumes all refineries are
 operating in the absence of regulations (Regulatory Alternative I).
c                              -          •                   '
 The baseline emissions projection reflects normal existing operations
 in refineries nationwide in the  absence of any new regulations.  The
 baseline assumes that refineries in nonattainment areas for ozone are
 subject to regulations similar to those recommended in the refinery
 Control Techniques Guideline document (Document No. II-A-6), Regulatory
 Alternative II in the Blip for the proposed standard.  Baseline emissions
 are calculated as the weighted sum of the proportion of refineries i,n
 attainment and nonattainment areas for ozone:  (0.56)(Regulatory
 Alternative II) + (0.44) (Regulatory Alternative I).
i
 Emissions projected under promulgated standards.
                                  2-7

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Response:
     EPA agrees with the commenter that valves represent the largest
source of fugitive VOC by component type in a refinery.  However,
the uncontrolled emission factors presented in the BID for the proposed
standards,-Table 3-1, clearly show that pressure relief devices, com-
pressors, and light liquid service pumps also have relatively high
emission rates.  EPA has determined that fugitive emission sources in
petroleum refinery equipment contribute significantly to ozone pollution
and, therefore, were included in a source category on the NSPS Priority
List in 40 CFR 60.16.  Under Section lll(b)(l), EPA is now required to
set standards of performance for all new sources within this listed
category for which EPA can identify BDT (considering costs).  EPA is
selecting BDT (considering costs) based on cost-effective control
techniques for the source.  Several types of refinery equipment may
emit VOC leaks, and, therefore, each is a subset of the entire source.
In selecting BDT, EPA is setting standards for each fugitive emission
component with demonstrated, cost-effective controls (see Table 2-2).
Because EPA maintains that the standards provide cost-effective control
for other sources as well as valves, equipment other than valves will
be covered by the standards.
Comment:
     Commenters (IV-D-12 and IV-D-25) indicated that the proposed
standards are inflexible, manpower intensive, and not cost effective.
Response:
     EPA has expended considerable effort to make these standards as
definitive and flexible as possible.  As discussed in the preamble for
the proposed standards, different formats are required for different
fugitive emission sources because the characteristics of the emission
sources and the availability of the measurement method used for fugitive
emission sources differ among the sources.  Performance standards allow
some flexibility, because any control technique may be used if it achieves
the required level of emission reduction.  However, for most refinery
equipment, it is not feasible to prescribe a performance standard.  EPA
has selected performance standards for certain equipment, where practi-
cable, and has provided alternative standards when equipment, work
practice, design or operational standards have been used.  Hence,
                                  2-8

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multiple control options are allowed wherever practicable and are
considered equivalent to the control techniques selected as BDT.  In
contrast to the comment, EPA considers the manpower requirements of the
standards worthwhile and a prudent use of resources as evidenced by the
cost effectiveness of the control techniques presented in Table 2-2.
The overall cost effectiveness of the standards is approximately $130/Mg,
which EPA considers reasonable.
Comment:
     A commenter (IV-D-15) expressed some confusion on the cost-
effectiveness information presented in Table 1 of the preamble to
the proposed standards.  The values presented in Table 1, the commenter
said, cannot be generated from the emissions, labor, and cost information
presented in the BID.  The commenter added that since the BID for
the proposed standards does not contain a cost-effectiveness analysis
for each component as given in Table 1 of the preamble to the proposed
standard, a supplemental document should be prepared by EPA showing
calculations and should be made available for public comment prior to
promulgating the standards.
Response:
     Upon reviewing the calculations that were performed to generate the
cost-effectiveness information presented in Table 1 of the preamble to
the proposed standards, it was determined that a mistake was made in the
valve emission reduction calculations.  This is explained in Section 2.2.1,
In addition, the analysis for pumps was changed as discussed in the AID
(Document No. II-A-41) and Section 2.3.1.  The corrected valve and
revised pump calculations are presented in Appendix A and the results
are summarized in Table 2-2.
     The commenter is correct in that individual cost-effectiveness
estimates are not presented in the BID for the proposed standard; instead,
the proposal BID presents cost-effectiveness estimates for regulatory
alternatives.  The proposal BID does, however, present the method for
calculating the cost, emission reduction, and cost effectiveness for
the various levels of control from which individual component impacts
can be derived.  In addition, a previous supplemental  information
document (Document No. IV-D-41) has been issued by EPA that explicitly
presents the method for calculating individual component impact estimates.
                                  2-9

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 EPA is also providing the derivation of individual  component impacts in
 Appendix A.
      EPA does not believe that a supplemental  information document  is
 warranted.  In September 1980, EPA requested public comments on  the
 preliminary model units and regulatory alternatives; in May 1981, the
 preliminary draft BID was distributed to the National  Air Pollution
 Control  Techniques Advisory Committee, industry,  environmental groups,
 and other interested persons;  and in April  1982,  EPA announced the
 availability of and invited comments on an  additional  information
 document on the emissions, emission  reductions, and costs for control
 of fugitive emission sources of organic compounds.   Because the  commenters
 did not  question EPA's method  of analysis and  EPA's review of the
 comment  did not change its analysis, an additional  information document
 is not warranted.
 2.2  VALVES
 2.2.1 Basis for Standards
 Comment:
      One commenter (IV-D-15) wrote that it was not  clear  whether the
 cost-effectiveness values  presented  in  Table 1 of the  proposal preamble
 are based on a continuing  monthly monitoring schedule  or  the  reference
 leak detection  and repair  program for  valves that allows  less frequent
 monitoring of  non-leakers.
 Responses:
      In  selecting the  basis  of  the standards for valves,  EPA  considered
 different  alternative  monitoring  periods for valves:  annual, quarterly,
 and  monthly  monitoring.   In  reviewing the public comments, EPA re-
 examined the incremental impacts  of the three monitoring  intervals
 (Document  No.  IV-B-10).  Each of  these  intervals was compared in terms
 of the emission  reduction achievable and cost-effectiveness of the leak
 detection  and  repair programs as  presented in Appendix F of the BID  for
the  proposed standards.  Monthly monitoring was selected because  it
 achieves the largest emission reduction, 77 Mg per year for a Model
 Unit B.  EPA also judged that monthly monitoring has a reasonable cost
effectiveness, a  credit of $60/Mg, and that the incremental cost  effec-
tiveness of $310/Mg VOC for monthly versus quarterly monitoring is
                                  2-10

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 reasonable.   Based  on  these  estimates EPA considers monthly monitoring
 BDT  for  valves.
      Available data (II-A-21 and  II-A-26) indicate that leak recurrence
 is an  important factor in predicting leaks from valves.  That is, if a
 valve  leaks,  then it is more likely to leak in the future than a valve
 that  has not  leaked.  These data  also show that some valves leak less
 frequently than others.  Because  leak recurrence is important in predicting
 leaks, EPA considers that the annual cost of monthly monitoring of
 valves that leak infrequently would probably be unreasonably high in
 comparison to the annual cost of  quarterly monitoring, considering the
 emission reduction  achieved by monthly and quarterly monitoring.
 Therefore, the standards allow quarterly monitoring for valves which
 have  been found not to leak for two successive months resulting in a
 hybrid monthly/quarterly monitoring program.
      It is possible that basing the standards on monthly monitoring,
 but allowing monthly/quarterly monitoring, has led to confusion.  The
 basis of the standards remain monthly so the cost-effectiveness estimates
 for valves given in the proposal  preamble are based on continuing
 monthly monitoring.  By basing the cost analysis on monthly monitoring
 rather than monthly/quarterly, a maximum cost impact estimate was
 evaluated.  It is important to note, however, that the actual  cost
 effectiveness of the standards for valves is likely to be even better
 because the standards allow quarterly monitoring for valves that have
 been found not to leak for two successive months (monthly/quarterly
 monitoring).  EPA expects that most affected facilities would follow
 the monthly/quarterly reference leak detection and repair program
 and, further, that most valves would be on.the quarterly inspection
 schedule.  Hence, the actual  costs for valves under the standards is
 likely to be more closely represented by the costs estimated for
 quarterly monitoring.
     Upon reviewing the calculations that were performed to generate
the information presented in Table 1 of the  preamble to the proposed
 standards, it was determined (Document No. IV-B-3) that an error was
made in the valve emission reduction calculations.  This is likely what
 caused the commenter's confusion on the calculation of the impacts of
the valve standards.  Valve impacts are calculated based upon  a Model
                                  2-11

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Unit B refinery unit component inventory (260 gas/vapor service valves
and 500 light liquid service valves).  The valve emission reductions
were underestimated by mistakenly using a weighted average of the
emission reductions for the two types of valves, gas/vapor and light
liquid, rather than the total emissions from the two types of valves.
The corrected emission reductions impacts are presented in Table 2-4.
In rechecking the cost and emission reduction calculations, rounding
resulted in a slight differences in the cost effectiveness and incremental
cost effectiveness values.  The revised emission reduction and cost
effectiveness for monthly leak detection and repair are 77 Mg/year
and a savings of $60/Mg VOC emission reduction, respectively.  The
incremental cost-effectiveness from quarterly to monthly monitoring now
shown is $310/Mg of VOC emission reduction.  The revised numbers have
been incorporated into the analysis of the final standards and did not
affect any of the decisions on the proposed standards.
Comment:
     A number of commenters (IV-D-8, IV-D-12, IV-D-14, IV-D-16, IV-D-
17, IV-D-18, IV-D-21, and IV-D-25) wrote that monthly monitoring of valves
is not cost effective.  Commenters contended that their experience with
less frequent monitoring intervals (quarterly and annual  monitoring)
shows that these intervals are more reasonable.  Some commenters recom-
mended annual monitoring for valves because the results of programs
performed at West Coast (California) refineries indicate that leak
occurrence rates for valves under annual monitoring are lower than
EPA's assumed estimate of 3.8 percent on a quarterly basis.  Two com-
menters (IV-D-8 and IV-D-14) stated that their refinery-wide leak
occurrence rate'was only 1 to 2 percent on an annual  basis.  Similarly,
another commenter (IV-D-21) stated that annual  inspection programs
result in leak occurrence frequencies as low as 0.3 percent.
     One commenter (IV-D-15) recommended that EPA obtain  leak detection
and repair program data generated in California.  Other commenters (IV-
D-14, IV-D-25a, and IV-D-31) provided data on leak detection and repair
programs.  In particular, information was provided EPA concerning leak
frequency, leak occurrence and recurrence rates, and  monitoring and
maintenance costs.
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        Table  2-4.   REVISED  EMISSION  REDUCTIONS  AND COST  FOR VALVE
                    LEAK  DETECTION AND REPAIR  PROGRAMS9
                                         Monitoring  Interval
                                    Quarterly
Monthly
Emission Reduction
(Mg/yr)b
Proposed0
Revised3
Average $/Mgd
Proposed0"
Revised3
Incremental $/Mge
Proposed0
Revised3

31.7
66

(90)
(110)

---

37.1
77

(40)
(60)

300
310
(xx) = Cost savings.

Memorandum from T.W. Rhoads, PES, Inc., to Docket A-80-44.
 VOC Emission Reduction and Cost-Effectiveness Estimates.
 July 14, 1983.  Document No. IV-B-3.

bBased on Model Unit B component counts, BID for proposed standards.

°From Table 1 preamble for proposed regulation.

dAverage dollars per megagram (cost effectiveness) = net annualized
 cost per component * annual  VOC emission reduction per component.

Incremental  dollars per megagram = (net annualized cost of monthly
 monitoring - net annualized  cost of quarterly monitoring) 4 (annual
 emission reduction of monthly monitoring - annual emission reduction
 of quarterly monitoring).
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 Response:
     As discussed  in the  previous  response, EPA evaluated three
 monitoring  intervals for  valves:   annual, quarterly, and monthly.  Each
 of these intervals was compared in terms of the emission reduction
 achievable  and the cost effectiveness of the leak detection and repair
 programs.   Annual  and quarterly monitoring are more cost effective than
 monthly monitoring, however, the standards require monthly monitoring
 because it  provided the greatest emission reduction at a reasonable
 cost effectiveness and incremental cost effectiveness.
      The commenters are  questioning the cost effectiveness estimates
 used by EPA based mostly  on their experiences with monitoring required
 by State implementation plans in California.  However, the effectiveness
 of leak detection  and repair programs in California is not strictly
 comparable  with the regulatory alternative used in the BID for the
 proposed standards.  The  commenters refer to the South Coast Air Quality
 Management  District (SCAQMD) Rule 466.1 on leakage from valves and
 flanges.  Contrary to the commenter's contention, monitoring under Rule
 466.1 is not strictly on  an annual basis, but rather biannual  for the
 first year  and annual in  the following years.  Like the final  standards,
 Rule 466.1  focuses on recurring leakers; Rule 466.1 requires follow-up
 inspections on leaking equipment at 3 months and, if they are still
 leaking at  this inspection, follow-up inspections at successively
 shorter periods, and in addition, Rule 466.1 requires all  repairs to
 be completed within 2 working days unless a variance is obtained.  In
 contrast, the standards require that repairs be made as soon as  practi-
 cable with  an initial attempt within 5 days and completion  within 15
 days.  The  standards also provide for automatic delay of repairs to  a
 process unit turnaround.  Another important distinction is  distance  at
 which monitoring measurements are taken.  The standards require  measure-
ment at the source, whereas the SCAQMD Rule 466.1  allows measurement at
 1 cm from the surface.   Thus, simple comparison of data from refineries
 subject to the SCAQMD rules to EPA's data base  is  misleading.
     In response to these comments, EPA reviewed and  compared  equipment
leak data from current  industry leak detection  and  repair programs to
the,data used in developing the standards.   The  results of this  analysis
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 are presented in Appendix C.  Where these data relate to specific
 comments on the standards, they are also incorporated into the response
 to the comment.
      Section C.I.2 of Appendix C presents occurrence rate data obtained
, from industry leak detection and repair programs.  An EPA study found
 (Document No. IV-B-11 and Section C.4) that the occurrence rates
 observed at two refineries in the South Coast Air Quality Management
 District (SCAQMD) are similar to the occurrence rates EPA used to
 estimate the national average for evaluating the effectiveness of leak
 detection and repair programs.  Other existing leak detection and repair
 programs, however, have resulted in low annual occurrence rates as the
 commenters argued.  However, the occurrence rate data obtained from
 refineries with existing leak detection and repair programs may be
 underestimated as a result of differences, as discussed above, in the
 requirements of existing regulations and those considered in developing
 the standards.
      To the extent EPA data dp not reflect certain process units covered
 by current plant practices (State regulation or otherwise), the standards
 have been developed to define BDT (considering costs) appropriately taking
 this into account.  As discussed in the first response in this section
 and in the presentation before the National  Air Pollution Control
 Techniques Advisory Committee (NAPCTAC) in June of 1981 (Document No.
 II-B-34)  and in the preamble to the proposed standards, EPA believes
 that monthly monitoring for valves with a history of low leak rates is
 unnecessary.  The final  standards, therefore, allow monthly/quarterly
 monitoring, and alternative standards  are provided for units with low
 rates.  EPA believes the standards and the alternative standards
 represent BDT for all  units covered by the standards.
 Comment:
      One  commenter (IV-D-14)  submitted the results of an LDAR Model  run
 which  calculated an incremental  cost effectiveness from annual  to
 monthly monitoring of $5,900/Mg.  In addition, this commenter added
 that this LDAR Model  run predicted emission  reductions  from the annual
 inspection program at a West  Coast refinery  would achieve a greater
 emission  reduction than  EPA's estimate for monthly monitoring,  72 percent
 versus 70 percent, respectively.
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Response:
     EPA reviewed (Document No. IV-B-16) the commenter's LDAR Model run
and found several problems with the data inputs used by the commenter.
The commenter used 1982 costs, rather than May 1980 costs that were
used for the basis of the standards.  Also, the commenter's use of
occurrence rates in the analysis was incorrect.  The commenter substi-
tuted different (2.0 percent annual) occurrence rates without also
correcting the initial leak frequency and emission factors, which are a
function of the occurrence rate.  In lowering the occurrence rate, a
corresponding reduction in the initial leak frequency and average
emission factor should occur (Document Nos. II-B-43 and II-B-7).   The
commenter wrote that the 2.0 percent occurrence rate represents the
West Coast annual inspection program, yet, as discussed in the previous
response, direct comparison of annual monitoring under Rule 466.1 with
the standards for valves is misleading.  Also, the commenter did  not
use the LDAR Model input values that they indicated.  The commenter's
occurrence rates were purportedly 2.0 percent annual occurrence rates
for annual and monthly monitoring, yet, in reviewing the commenter's
analysis, it was found that an 8 percent annual  occurrence rate was
used to evaluate monthly monitoring.  In addition, the commenter  failed
to use half the inputs the commenter said would provide a better  estimate
of the impacts of leak detection and repair programs.  Correcting just
the occurrence rate (to 2.0 percent annual  occurrence for both annual
and monthly monitoring) and the cost basis (to 1980 dollars) in the
commenter's data inputs results in an 80 percent emission reduction for
monthly monitoring (significantly more than the 72 percent reduction
achieved by annual monitoring in the comment)  and a cost effectiveness
of monthly monitoring of $500/Mg and an incremental  cost effectiveness
between annual  and monthly monitoring of $l,900/Mg.   EPA and the
reported source of the commenter's estimates do  not believe the inputs
the commenter used are representative.
Comment;
     Two commenters submitted that monthly  monitoring .would be more
costly than EPA estimated.   One commenter (IV-D-24)  wrote that the
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  costs  for  monthly monitoring  at  one refinery would increase from $6.40
  per component  per year  for quarterly monitoring to approximately $19
  per component  per year  for monthly monitoring.  Another commenter
  (IV-D-25)  and  IV-D-25a  wrote that the cost per component given in the
  April  1981 preliminary  draft BID, $0.82, is far below the $2.57 per
  component monitoring cost experienced at his refinery in 1982.  The
  commenter  further stated that they had a total  program cost of $4.82
  per component.
  Response:  '
      EPA calculated the costs per valve based on the data and  information
 discussed in "Fugitive Emission Sources of Organic Compounds - Additional
  Information on Emissions,  Emission Reductions,  and Costs"  (AID),  April
 1982,  EPA-450/3-82-010.   EPA  requested  public comments on  the  monitoring
 labor  requirement and  cost  estimates  in the AID.   EPA has  previously
 received specific comments  at  the June  1981 meeting  of the  National  Air
 Pollution Control  Techniques Advisory Committee  (NAPCTAC) on the  information
 in the  BID  for the  proposed standards.   After  reviewing the NAPCTAC
 comments and  comments  on the AID,  EPA added some provisions making them
 more practicable  where possible,  however, the standards remain  essentially
 the same.
     To compare the  first commenter1s cost  estimates  to the EPA's
 estimates,  it was necessary to contact the  commenter  to determine the
 basis of his  costs.  From the additional information  obtained  (IV-F-28),
 EPA learned that the leak detection and repair costs  submitted were
 mostly  for  valves (about 90 percent), but included some components
 other than  valves.  Thus, the commenter was comparing the costs for
 leak detection  and repair for all components to the EPA's cost estimates
 for valves.   Since the cost to monitor and repair components other than
 valves  are typically higher than that for valves, the commenter's costs
 overestimate the actual cost per valve he incurred.  EPA also  learned
 that the costs  provided  reflect a contractor's total  labor costs for
 monitoring and  repairs from a  refinery inspection in 1982  dollars.  The
 costs submitted did not include the refiner's overhead.
     The first commenter's  costs were  adjusted for  1980 dollars (to  be
 consistent with the EPA's cost estimates) by using  cost indexes from
Chemical Engineering (Document  Nos. II-I-58 and  IV-J-2).   An overhead
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rate was also applied to the commenter's costs consistent with EPA's
estimates.  The results, compared in Table 2-5, show that EPA's cost
for quarterly monitoring is somewhat higher, $5.91 per valve compared
to $4.22 per valve.  The commenters adjusted estimate for monthly
monitoring, however, is somewhat higher than EPA's, $17.5 per valve
compared to $16.00 per valve.  The comparison of the commenters' costs
and EPA's estimates indicates that the EPA's estimates are reasonably
close to the plant's expenditures for leak detection and repair.  This
commenter did not comment on the basis for the EPA cost estimates.
Also, to the extent that an individual plant's costs may be higher than
the EPA estimates, the EPA costs appropriately reflect the nationwide
average costs to comply with the standards, such that any individual
plant costs may be somewhat higher or lower.
       Table 2-5.  COMPARISON OF COMMENTER AND EPA ANNUAL COSTS FOR
                       LEAK DETECTION AND REPAIR
                      Commenter Estimates-
                        For Components9
EPA Estimates
For Valvesb


Monitoring
Period
Quarterly
Monthly
1982
Dollars


6.40
19.00
1980
Dollars


4.22
12.50
1980
Dollars
plus
Overhead
5.90
17.50
1980
Dollars


9.20
16.00
  From Document  Nos.  IV-D-24 and  IV-E-28.  Cost are adjusted to 1980
  dollars using  cost  indexes (Document  Nos.  II-I-58 and IV-J-2).  Costs
  presented  in the comment letter are based  on 1982 dollars. .Overhead
  is estimated as 0.40 x monitoring and  repair labor cost.
 b
  From Document  No. IV-B-10.
     The second  commenter's costs are based  on first year costs to
 implement a  leak detection and repair program similar to Regulatory
 Alternative  II in the BID for the proposed standards, which specifies,
 quarterly inspections of gas service components and annual inspections
 of  1-iquid service components.  A  review  of the commenter's cost data
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 (see Section  C.I.5  of  Appendix  C)  found the  commenter's actual costs to
 be  similar  to EPA's  cost  estimates when compared on a common  basis
 (e.g.,  adjusting to  a  1980  cost basis, overhead rate).  The commenter's
 total leak  detection and  repair costs in  1980 dollars, about  $71,100
 per year, compare to an EPA estimate of about $60,900 per year for a
 similar scenario.  Here again,  the comparison is not strictly valid
 because the two estimates are based on different component populations.
 The commenter's data include an  unknown number of component types not
 included in the CT6  recommendations such  as  valve flanges and capped
 open ended  lines.
     The information EPA  received from the commenters did not lead EPA
 to  change the cost estimation methods.  Therefore, EPA has not changed
 the basis for the costs and considers the costs of a monthly  leak
 detection and repair program for valves to be reasonable (i.e., an
 average cost  effectiveness  (credit) of $60/Mg and an incremental  cost
 of  $310/Mg  compared to quarterly monitoring.
 2.2.2   Alternative Standards                   .
 Comment:
     Some commenters (IV-D-5, IV-D-10, IV-D-24, and IV-D-30)  wrote that
 they support the alternative standards for valves as they provide
 incentive for a facility to maintain a low incidence of leaking sources.
 One of the commenters  (IV-D-10) wrote that the addition of alternative
 standards for valves was an improvement from the proposed standards for
 valves  in the synthetic organic chemical  manufacturing industry (SOCMI).
 Another commenter (IV-D-30), however, questioned the basis for allowing
 a 2.0 percent leaking valve rate when the objective is to keep the real
 leak rate below an average of 1.0 percent because most facilities would
 operate with a real  leaking valve rate well  above 1.0 percent.
 Response:
     EPA believes that monthly monitoring does not have a reasonable
cost effectiveness for process units with a low percentage of valves
 leaking.  EPA judged at proposal that for units with less than (on the
 average) 1.0 percent valves leaking, monthly monitoring is unreasonable.
EPA has, therefore,  included alternative standards for valves in  units
with a low percentage of leakers:  (1)  two skip period monitoring
programs and  (2)  an allowable percentage of valves leaking (performance
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limit).  This approach addresses the comment that,  if annual  leak
detection and repair or some other reduction program reduces  leak  rates
to an average of well under EPA's estimates, the cost effectiveness  of
monthly monitoring is unreasonable.
     The alternative standards apply on an affected facility  basis,
(i.e., individual process unit).  As was explained  at proposal,  the
allowable percent (2.0 percent) of valves leaking was selected (Document
No. II-B-43) after considering the costs and emission reductions of
monthly monitoring of low leak units and the variability inherent in
leak detection of valves.  The variability in the number of valves
which are found leaking at any one time (e.g., variability in the
monitoring instrument, instrument operators, the piece of equipment,
leak occurrence, and  recurrence) in leak detection of valves can be
characterized as a binominal distribution around the average percent of
valves leaking.  Inclusion of the variability in leak detection of
valves is accomplished by straightforward statistical techniques based
on the binominal distribution.  An allowable percent of valves leaking
of 2.0 percent, to be achieved at any point in time, would provide an
owner or operator a  risk of about 5 percent that greater than 2.0
percent of valves would be determined leaking when the average of 1.0
percent was  actually  being achieved.  Based on these considerations,
EPA considers an allowable percent of valves leaking of 2.0 percent  to
represent about  one  percent of valves leaking.
     The first alternative specifies two statistically based skip-period
leak detection and  repair programs.  Under  skip-period monitoring programs,
an owner or  operator  can skip  from routine  monitoring to  less frequent
monitoring  after" completing a  number of consecutive monitoring intervals
with  performance levels  less than  2.0 percent of valves leaking.  The
first  skip-period program provides that after 2 consecutive quarterly
leak detection periods with the  percent of  valves  leaking  equal to or
less  than 2.0, an owner may begin  to skip one of the quarterly leak
detection periods  (semiannual  monitoring).  The second skip-period
program provides that after 5  consecutive quarterly  leak  detection
periods  with the percent of valves  leaking  equal to or less than than
2.0,  an owner or operator may  begin to  skip 3 of the quarterly  leak
detection periods  (annual monitoring).  This skip  period  alternative
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 standard  also  requires  that,  if  an  affected facility exceeds the 2.0
 percent limit  of  valves  leaking  during the semiannual or annual inspec-
 tion,  the owner or  operator must revert to the monthly/quarterly leak
 detection and  repair program  that is specified in the standards.  The
 original  criteria for skip monitoring would again have to be met before
 owners and  operators can again skip monitoring periods.
     The  second alternative standard for valves is a performance standard
 that specifies a  2.0 percent  limitation as the maximum percent of
 valves leaking within a  process  unit.  This alternative standard would
 require a minimum of one performance test per year.  This alternative
 provides  an incentive for maintaining a low percentage of leaking valves
 level by  implementing any type of leak detection and repair program or
 engineering controls at  the discretion of the owner or operator.
 Comment:
     Several (IV-D-8, IV-D-12, IV-D-14, IV-D-16, IV-D-17, IV-D-18,  and
 IV-D-21.) commenters suggested that the regulations should begin with
 annual inspections.and require more frequent inspections only if needed.
Another commenter (IV-D-25) wrote that industry would be reluctant  to
use the alternative standards due to noncompliance penalties.
Response:
     Based on evaluation of data that EPA considers representative  of
petroleum refineries, EPA selected standards for valves that require
monthly/quarterly monitoring.  The standards,  however,  also provide
alternatives for facilities (process units)  with relatively low leak
frequencies.  The commenters are asking that the standards be structured
to allow increasing the frequency of monitoring in high-leak units
rather than decreasing the monitoring in low-leak  units (as currently
structured).
     The standards for valves (monthly/quarterly monitoring) and the
alternative standards are structured to assure that best demonstrated
technology for valves is achieved initially  and throughout implementation
of the standards.   The data (II-A-19)  indicate that about 10 percent of
the valves in a facility would be found leaking on an initial  inspection.
Hence, the standards are structured to identify and control  leaking
valves through relatively frequent monitoring  initially,  and once
recurring  leakers  are identified and controlled, allow  less  frequent
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monitoring.  If the standards were structured as the commenters propose
(based on increasing monitoring frequency), less emission reduction
would result by allowing longer time intervals before recurring leakers
are controlled.-
     EPA agrees with the commenters in that owners and operators might
be reluctant to use the alternative standard for allowable percentage
of valves leaking.  Use of this alternative standard would subject an
affected facility to non-compliance penalties.  The owner or operator of
a process unit selecting the allowable percentage of valves leaking
alternative would have to do performance tests initially, annually, and
at other times requested by the EPA Administrator.  If more than two
percent of the valves are found leaking, the facility would not be in
compliance with the regulation.
     For many facilities it may be impossible to guarantee that the
facility will always have less than 2.0 percent valves leaking.  These
facilities should consider implementing the skip-period monitoring
programs outlined in the previous response.  For facilities following
the skip-period monitoring alternative standard, the "penalty" for
having greater than 2.0 percent valves leaking is more frequent
monitoring rather than non-compliance with the standard.
2.2.3  Special Provisions
     The following comments and responses pertain to specific groups of
valves and provisions in the standards for valves relating to them.
2.2.3.1  Difficult-to-monitor valves
Comment:
     Two commenters (IV-D-12 and IV-D-15) maintained that difficult-to-
monitor valves can not be eliminated in new units, even though they can
be reduced in number.  Therefore, the difficult-to-monitor provisions
should be allowed for new facilities as well as existing facilities.
Conversely, another commenter (IV-D-30) objected "to the exception from
the monitoring requirements for supposedly difficult-to-monitor valves,"
claiming that, "it simply is not a significant burden for the monitoring
personnel to use a ladder to reach valves higher than 2 meters off the
ground." One commenter (IV-D-4) remarked that requiring monitoring
personnel to carry equipment and climb a ladder to inspect difficult-
to-monitor valves could double the cost of the monitoring program.
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 Furthermore,  comm'enters  (IV-D-8,  IV-D-15,  IV-D-21,  and  IV-D-25) maintained
 building new  units without  difficult-to-monitor  valves  will substantially
 increase unit costs because of  extra  ladders  and platforms.  The commenters
 added that  it is  too costly to  monitor difficult-to-monitor valves.
 Another commenter (IV-D-24)  requested that the EPA  include a statement
 that  would  require annual monitoring  "if practicable."   . •
 Response:
      The intent of the standards  is to monitor those valves that can be
 reached with  the  use of  portable  ladders or with  existing supports such
 as  platforms  and  fixed ladders.   EPA  defines  valves that cannot be
 reached without extraordinary means,  difficult-to-monitor valves, as
 those valves  that  cannot be monitored without elevating the monitoring
 personnel more than  2 meters above a  support  surface.   EPA does not :
 consider valves that can be  reached from a portable ladder to be difficult-
 to-monitor, and hence the standards require operators to use portable ladders
 to monitor  such valves.
      EPA has  estimated the cost for monitoring difficult-to-monitor
 valves  in existing  units (Document No. II-B-46) and determined that the
 cost  effectiveness of monthly monitoring of difficult-to-monitor valves
 may be  unreasonable,  and that the average cost effectiveness for annual
 monitoring  is reasonable.  Hence, EPA proposed annual  monitoring of
 difficult-to-monitor  valves in existing facilities.  The provision was
 not allowed for newly constructed affected facilities because commenters
 on the  proposed standards for VOC fugitive emission in the synthetic
 organic  chemicals manufacturing industry (Document No. IV-A-5, Section
 4.2.4)  wrote that difficult-to-monitor valves can be eliminated in new
 units.   A refinery design engineer (IV-E-15)  also indicated that new
 units can be designed with no difficult-to-monitor valves.
      Upon reviewing the comments received on  the  proposed standards,
 EPA agrees with the commenters in that eliminating all  difficult-to-
monitor  valves in new units may substantially increase the costs of
constructing a new unit,  for example,  due to  the  necessity for
additional  fixed ladders  and platforms.   Yet, estimation of these
additional  costs is not possible due to  the wide  variability of factors
such as the height of the valves and the ability  to co-locate difficult-
to-monitor valves (Document No.  IV-B-13).
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     A refinery maintenance study (Document No. IV-A-3) found that
about 3 percent of over 8,000 total  valves investigated could not be.
reached without extraordinary aids such as scaffolding or cherry pickers.
Based on these data and contacts with petroleum refinery design engineers
(Document No. IV-B-13) the final standards allow the owner or operator
of a newly constructed process unit to designate no more than 3 percent
of its valves as difficult-to-monitor.  The standards require annual
monitoring of those valves.  Limiting the percent of allowable valves
that may be difficult-to-monitor provides the incentive to minimize the
number of such valves in new units, while ensuring that an owner or
operator would not incur unreasonable costs by attempting to eliminate
all difficult-to-monitor valves in new units.
Comment:
     Other commenters (IV-D-8, IV-D-21, and IV-D-24) wrote that it is
unreasonable to stand on any elevated object and reach overhead to
monitor for leaks because the practice is unsafe.
Response:
     EPA does  not believe that it is necessary to include a provision
for valves that require operators to "reach overhead."  The standards
require operators to  monitor valves and to repair leakers that can be
reached safely with or without the aid of a ladder.  The practice of
reaching overhead to  perform monitoring is not generally unsafe, and,
to the extent this can be unsafe, personnel should be provided proper
equipment  (e.g., head and eye protection, ladders) and training as
required by the Occupational Safety and Health Administration and
refinery safety guidelines.
2.2.3.2  Unsafe-to-Monitor Valves
Comment:
     Four  commenters  (IV-D-8, IV-D-15, IV-D-21,  and  IV-D-25) wrote that
unsafe  valves  should  never be monitored because  they are no less safe to
monitor annually -than monthly.   These  valves  are only  safe-to-monitor
when they  are  out of  service, and it makes little sense to monitor
components not in  service.   One  commenter (IV-D-24) wrote that the
proposed exemption of valves in  unsafe locations, §60.5927(g)(2),
should have  a  qualifying statement  added  so that it  reads "required
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 monitoring of the valve as frequent as practicable during  safe-to-monitor
 times but not more than quarterly."
 Response:
      EPA agrees with the commenters that  valves  should  never  be
 monitored during unsafe-to-monitor  conditions, that  is,  during periods
 of extreme temperature, pressure, or explosive process  conditions that
 make these areas off-limits  to  all  personnel.  Accordingly, the standards
 do not require monitoring during unsafe periods.   Valves that are
 considered imsafe-to-tnonitor are not unsafe-to-monitor  all the time.
 Monitoring can conform  to the requirements  of the  standards as much as
 possible, but monitoring  does not need to occur during  unsafe conditions.
 Valves that are routinely operated  under  safe conditions would be
 subject  to the routine  monthly  monitoring required by the  standards.
 Valves that are only  safe-to-monitor once per quarter or year would be
 subject  to quarterly  or annual  monitoring,  respectively.   The standards
 require  an owner or operator to explain why a valve  is  unsafe-to-monitor
 and  to develop  a  plan to  monitor the  valve when it is safe, as often as
 possible but  not  more than monthly.   For valves that are safe-to-monitor
 only when  they  are out  of service (for example, during a process unit
 shutdown),  pressure testing  such as  is specified by API Standard 598 for
 new  valves  could  be part  of  an  owner's or operator's monitoring plan.
     The  provisions for unsafe-to-monitor valves were included in the
 proposed standards of performance for equipment leaks of VOC in the
 Synthetic  Organic Chemicals Manufacturing Industry (46 FR 1136,
 January  5,  1981)  because a few  valves may be unsafe-to-monitor;  the same
 provisions  were proposed  in these refinery standards.  EPA believes that
 very few such valves exist in refineries.
 Comment:
     Another commenter  (IV-D-16) requested that EPA delete the requirement
 to demonstrate that valves are unsafe-to-monitor  and the need for a
 written plan for monitoring unsafe valves.
 Response:
     EPA is providing the exception  for unsafe-to-monitor valves  and
does not believe other valves should be allowed to use this exception.
 Very few,  if any, valves in a refinery would be considered unsafe-
to-monitor  by EPA.  Thus, a demonstration  that  particular valves  are
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unsafe-to-monitor and a written plan for monitoring these valves is not
a significant burden upon owners or operators.  These demonstrations
and plans are needed to ensure compliance with the intent of the standards,
which is use of best demonstrated technology, considering costs, on all
new sources.
2.2.3.3  Small Valves
Comment:
     One commenter (IV-D-22) stated that small valves, in general,  have
lower mass Emissions at 10,000 ppm than larger valves and suggested
that EPA provide a small valve exemption such as that in the State  of
Texas.  In a refinery as many as 50 percent of all valves are 2 inches
and smaller, and eliminating the monitoring requirement for these
valves would lessen the monitoring burden.  Another commenter (IV-D-15)
wrote that a large number of the refinery valves are small valves
servicing instruments or control system bypasses and that the repair of
these small valves cannot be performed while in service.  Hence, it was
recommended that the standards apply only to valves 3/4 inch size or
larger since repair costs for small valves is greater than for large
valves.
Response:
     The first commenter's request for a small valve exemption is
predicated on his contention that small valves have lower emissions at
10,000 ppm than large valves.  EPA contends, however, that the relation-
ship between valve size and mass emissions at 10,000 ppm is not relevant,
although the relationship for the average emissions per valve at or
greater than 10,000 ppm is relevant in assessing the need for a small
valve exemption.  Nevertheless, the commenter's contention that valve
size relates to valve emissions is not supported in any test data.   On
the contrary, EPA test data indicate that valve emissions are essentially
independent of valve size.  An EPA study (Document No. II-A-19) found
only a slighly positive correlation between mass emissions from valves
and valve line size (correlation coefficients (r) equal to or less  than
0.150).  Also, data from facilities with existing leak detection and
repair programs, presented in Section C.I.3 of Appendix C, further  demon-
strate that small valves account for a significant portion of leaking
valves.  This data indicates that small valves (less than or equal  to
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 3.8 cm  or  1.5  inches) represent nearly half the valves found leaking.
 The commenter  noted that the Texas State Implementation Plan exempts
 all valves that are 2 inches or smaller; however, he failed to add that
 the exemption  is contingent upon demonstration that emissions would not
 increase by more than 5 percent as. a result.
     EPA agrees that some small valves may need to be replaced for repair,
 but the cost of repair for these valves is reasonable.  EPA has estimated
 valve repair to require 1.13 labor hours based on 75 percent of all
 valves  being repaired on-line and in service with a repair time of 10
 minutes, and 25 percent of the valves requiring off line repair requiring
 4 hours per repair (BID for the proposed standards, Chapter 8).  EPA
 anticipates that most instrument valves are not in yOC service and
 would therefore not be covered by the standards.  However, if they are
 in VOC  service, small valves servicing instruments and control  systems
 are normally field repairable.  Most repairs would consist simply of
 replacing the stem packing ring.  For valves in corrosive service, the
 stem may be deteriorated to the extent that an entire stem assembly
 (stem,  packing, and stem tip seal) must be replaced.   Repair time in
 either  case would be less than 30 minutes (Document No. IV-B-8).
 Hence,  small  valves are no more expensive to repair than large valves.
 The data presented and discussed in Section C.I.3 also indicate that  :
 small  valves  are as repairable on-line as large valves.  For those
 valves  in critical  service (i.e., those that cannot be isolated from
the process), the standards provide for delay of repair until  a process
 unit shutdown.
 2.2.4  Monitoring Time
 Comment.                                        .
     A number of commenters (IV-D-4,  IV-D-15, IV-D-18)  were concerned
with the EPA estimates of monitoring  time.   Two commenters (IV-D-4 and
 IV-D-15) stated that monitoring would require 2 minutes per valve.
Another commenter (IV-D-18) reported  that their experience found
that a two-man team averages one valve every 3 minutes, so that 160
 valves could  be monitored in one 8-hour day.   This commenter also noted
problems with hiring part-time or full-time employees to conduct  moni-
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toring for the alternative standards;  with training personnel;  and  with
purchasing additional  monitoring instruments.
Response:
     The EPA monitoring time estimate of 1 minute per valve was taken
initially from information provided by Exxon Company, U.S.A.  (Docket
No. II-D-22) based on an "in-depth study to determine the monitoring
manpower requirements."  The average monitoring time for a leak detec-
tion survey for valves was found to be 1 minute per valve for a two-man
team (2 man-minutes).  In another study conducted by Union Carbide
Corporation (Document No. II-I-57) an estimated 400 to 500 sources
(valves and other equipment) were screened per day.  Although this
estimate was based on a three-man team, the third person was a unit
operator who provided process data.  For a two-man monitoring team,
this corresponds to 1.9 to 2.4 man-minutes per source (0.95 to 1.2  man-
minutes per source per monitoring person).  Information from other
studies, including EPA studies, shows that monitoring times are generally
less than 2 man-minutes.  Phillips Petroleum Company conducted a study
(Document No. IV-B-10) of a petroleum refinery and petrochemical complex
in which 70,000 components were screened in about 936 manhours with a
two-man team.  This represents an average of 0.8 man-minutes per component.
EPA also reviewed the results of recent California Air Resources Board
(CARB) inspections of refineries in the South Coast Air Quality Manage-
ment District (SCAQMD) and the Bay Area Air Quality Mangement District
(BAAQMD).  The data (presented in Section C.I.6 of Appendix C), submitted
in part by one commenter  (IV-D-31) and in part obtained from BAAQMD
and SCAQMD  (Document No.  II-B-18) revealed that monitoring time averaged
about 1 minute per valve  for the more than 6,400 valves monitored in 12
refineries.   In this effort, 2 monitoring instruments were used and
more information than required under the standard was recorded, such as
line size, time of monitoring, and valve type and function.  Considering
these data, the time estimate of 1 man-minute per valve (2 man-minutes
per valve for a two-person team) used for costing purposes is reasonable.
     In further reviewing the commenters's claim that EPA underestimated
the time  required to monitor a valve, EPA examined the effect on the
cost effectiveness of monthly monitoring for valves assuming that twice
the monitoring time (2 minutes per source) is needed (Document No.
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IV-B-4).  The results obtained from the LDAR Model  show that monthly
monitoring would have a cost effectiveness of $42/Mg and an incremental
cost effectiveness from quarterly monitoring of $768/Mg.  Hence,  monthly
monitoring would, nevertheless, be reasonable even  if 4 man-minutes  per
valve were required.
     The cost impacts presented in the background information document
for the proposed standards (Chapter 8) included the cost for two  moni-
toring instruments per model  unit plus $3,000 per year. (1980 dollars)
for instrument calibration and maintenance.  Therefore, the cost  of
additional monitoring instruments is accounted for  in the cost impacts.
Furthermore, the actual  monitoring instrument costs incurred by a
refinery may be less since monitoring instruments may be used for more
than one process unit.  The cost impacts are based  on 2 monitoring
instruments per process unit (affected facility).  However, when  there
are several  affected facilities in a refinery, it is likely that  the
refiner will not purchase two monitoring units for  each of them.
     Training plant personnel to use the monitoring instruments and
perform equipment monitoring is also considered in  the cost analysis.
These costs are included as "Administrative and Support" costs
(40 percent of the total monitoring labor and maintenance labor costs).
Owners/operators may, however, choose to employ consultants to perform
equipment monitoring.  Use of consulting firms would eliminate the need
to hire part-time or full-time employees for a short period of time  (e.g.,
half a year), for example, if monitoring requirements are reduced
through use of the alternative standards for valves.
     It is noteworthy to reiterate that promulgation of Method 21
(48 FR 37598) provides an alternative monitoring technique, soap  screening.
Soap screening, although restricted to those valves with moderate
surface temperatures, may significantly lower the average monitoring
time.  By soap screening valves, owners/operators will experience lower
costs for monitoring instrument maintenance.  Further, the standards
provide for quarterly monitoring of valves which are found not leaking
for two consecutive inspections.  Hence, monthly/quarterly, monitoring
will lower costs as a result of reduced monitoring  labor requirements
and instrument wear.
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Comment:
     Some commenters (IV-D-17, IV-D-18 and IV-D-25) contended that the
monthly monitoring requirements will not permit sufficient time for all
of the components in a unit to be monitored and repaired.  One commenter
(IV-D-18) noted'that it would be impossible for one two-man crew to
complete all inspection work, process work orders, and complete record-
keeping requirements within the one-month time frame.
     Another commenter (IV-D-25) offered the example of a facility
having about 14,000 components to be monitored.  Based on a crew moni-
toring 200 components per day, it would take 24 days for three crews to
check the components (not including the time for repairs and rechecks).
Response;
     The basis for the EPA time estimate for performing leak detection
and repair is found in Table 8-3 of the BID for the proposed standards.
An average (for valves, pumps, and pressure relief devices) monitoring
time requirement per component can be estimated based upon the component
distribution for Model Plant B, as shown in Table 2-6.  The resulting
average component monitoring requirement is about 2.3 man-minutes.
Based on this estimate, a two-man monitoring team can inspect about
420 components in an 8-hour day.  Hence, a single two-man monitoring
team can inspect a Model  Unit A in about 1 day, Model Unit B in 2 days,
and Model Unit C in 5 days.  Actual industry and EPA testing (Document
No. II-A-41) has demonstrated that a two-man monitoring team can inspect
between 400 and 500 components per day.
      Table 2-6.  Derivation of Average Component Monitoring Time
Component
type
Valves
Pumps
Relief valves
Number of
components
760
14
7
Time to
monitor
(min.)
1
5
8
Persons
2
2
2
Total
time
(man-mi n.)
1520
140
112
Total
      781                                 1772
Average =2.3 man-minutes per component.
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     EPA believes that a month provides more than enough  time to complete
leak detection and repair of an affected facility.  As previously
pointed out, even a large process unit, Model  Unit C,  can be monitored
within a week by a single monitoring team, allowing three weeks  to
complete repairs, rechecks, process work orders,  and recordkeeping
within the one-month period.  There are several  other  factors that also
indicate that a month permits sufficient time to  comply with the leak
detection and repair requirements:   (1) repairs  are commenced concurrent
with the onset of monitoring as specified in the  repair requirements;
(2) more than one monitoring team may be employed to perform the inspec-
tions; and (3) the use of soap screening may reduce the monitoring time
required.  In addition, since the standards for  valves allow quarterly
monitoring of valves not found leaking for 2 consecutive  monthly
inspections, most valves are likely to be monitored on a  quarterly
basis.
     EPA recognizes that it is possible for individual facilities to
expend less time monitoring than the EPA estimate of two  man-minutes
per valve, as discussed above, and possible to expend  more time  monitoring
as the commenters imply.  Nevertheless, EPA maintains  that the basis
for estimating labor hour requirements as presented in the BID for the
proposed standards appropriately reflect the monitoring requirements
for the petroleum refining industry.  Hence, EPA believes that sufficient
time is allowed in the period of one month to complete the leak  detection
and repair requirements.
2.2.5  Repair
Comment;
     Several commenters wrote that the 5 and 15 day repair intervals
should be extended.  Some (IV-D-8 and IV-D-15) argued that an initial
attempt at repair within 5 days should be extended because of holidays
and weekends.  Others (IV-D-5, IV-D-12, IV-D-16,  IV-D-17, and IV-D-24)
thought that the 5-day requirement was unnecessary provided repair was
accomplished within 15 days.  Another commenter (IV-D-18) requested
that the repair intervals be extended to 15 days for initial repair and
30 days for final repair.
     Conversely, another commenter (IV-D-30) contended that the first
attempt at repair for valves and pumps should be made within 24 hours
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instead of 5 days.  The commenter wrote that repair personnel  should
either accompany or trail the monitoring personnel  and, therefore,  the
minor repairs (e.g., tightening a valve bonnet) could be completed  (and
rechecked) immediately.
Response:
     The standards require that a first attempt at repairing a leaking
valve or pump should be accomplished as soon as practicable but no
later than 5 days after detection of a leak.  Attempting to repair the
leak within 5 days will help maintenance personnel  identify the leaks
which can be repaired without shutdown of the process unit.  Valves or
pumps that continue to leak after simple field repair attempts must be
repaired within 15 days following initial leak detection.  This interval
provides time for properly isolating leaking valves that require more
than simple field repair.  The 15 days provides sufficient time to sche-
dule and effect on-line repairs that a shorter period might not allow.
Provisions have been made for delaying repair of those valves which are
in critical service and cannot be bypassed.  The two repair period
requirements provide efficient reduction of emissions and allow suffi-
cient time for flexibility in scheduling repairs of leaking equipment.
A single period would  simply permit delays in repairs that could
otherwise be accomplished quickly.
     Most valve repairs can be done quickly.  This is evident from
compliance experience  of refineries with the South Coast Air Quality
Management District Rule (Rule 466.1) for valves which requires repair
within  2 working days.  A 5-day period for initial attempts provides
sufficient time to  schedule field repair.  Originally, EPA was considering
a 3-day limit, but  decided to increase the limit to 5 days to allow for
holidays  and weekends.
     Requiring an initial attempt at repair within a shorter time
period  (e.g., 24 hours as suggested by one commenter) may, however,
pose a  significant  problem to owners.  With shorter repair periods, a
repair  crew would have to accompany or closely follow a monitoring
crew, repairing leakers  as they are detected in order to perform all
initial  attempts at repair within the required time interval.  Although
this  is a repair technique often employed, some repairs cannot be
performed  as described in the comment.   For example, a pump seal that
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 is. leaking may  not be  repairable while the pump is in operation due to
 casings which must be  removed or safety hazards due to the shaft motion.
 In  other  instances, parts  (such as a valve bonnet pressure plate) may
 be  cracked and  require replacement, making "on-the-spot" repair attempts
 impossible.  In addition,  shorter time periods may increase the cost
 of  leak detection and  repair.  Because very few valves leak (about
 10  percent initially and about 2 percent leaking per month in subsequent
 inspections), repair crews may spend much of the time on an inspection
 with few  repairs to perform if they were to accompany the monitoring
 personnel.  The logistics  of coordinating monitoring and repair is
 further complicated when considering union regulations that may apply
 and that certain repairs require specially trained personnel  to perform
 (e.g., control valves).  EPA considers 5 days to be a reasonable time
 constraint for first repair attempts on leaking valves or pumps.
 Comment:
     One commenter (IV-D-30) indicated that EPA chose the 10,000 ppm
 leak definition because undirected repair attempts for leaks  less than
 10,000 ppm would lead to an increase in emissions.  The commenter
claimed that lowering the 10,000 ppm leak definition and requiring a
directed repair program would not significantly increase the  cost
 impacts of the standards and would produce a substantial  reduction in
emissions.
Response:
     The "leak definition"  is the instrument reading observed during
monitoring that defines which sources  require repair.   The best leak
definition would be the one that achieved the most emission reduction
at reasonable costs.   At a  leak definition of 10,000 ppm, approximately
90 percent of the mass emissions from  valves would be detected.  EPA
has determined (Document Nos. II-A-21, II-A-26 and II-A-42) that valves
found leaking at levels of  10,000 ppm  or greater can be brought to
levels below 10,000 ppm with proper maintenance.  A leak definition
 lower than 10,000 ppm may be practicable in a sense that leaks can be
repaired to levels less than 10,000 ppm.   However, EPA is .unable to
conclude that a leak  definition lower  than 10,000 ppm would provide
 additional emission reductions and, therefore, would be reasonable.
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     The commenter suggested that EPA require directed repair, whereby
the tightening of packing is monitored simultaneously and continued
until no further reduction of leak is observed from the valve.  However,
there is no evidence to support the commenters contention that directed
maintenance will provide greater emission reductions than the requirements
of the standards.  The standards require owners/operators to continue to
attempt repair if the initial attempt to repair a leaker fails to reduce
emissions below 10,000 ppm.  The standards require monitoring of a
valve following attempted repair to determine if the repair attempt was
successful.  EPA also believes that requiring directed repair could be
too costly.  Directed repair may unreasonably complicate coordination
of monitoring and repair personnel, especially in refineries where
repair personnel are governed by union regulations.
     Upon reviewing the. comments, EPA has maintained the 10,000 ppm
leak definition because it would address approximately 90 percent of
the VOC emissions from valves at reasonable costs and reasonable cost
effectiveness.  Also, the final standards for valve repair remain
unchanged from proposal in requiring the best practices, including
monitoring following repair, because directed repair has not been
demonstrated to be more effective in emission reduction and may have
higher costs.
Comment;
     One commenter (IV-D-30) was concerned that plant owners or operators
may abuse the delay of repair provision that can be used when stocks of
spare valves have been depleted.  The commenter stated that this provision
invites operators to maintain very small inventories of spare parts.  A
better approach suggested by the commenter is to require the operators
to maintain sufficient stocks, and the inventory required should be
readily determinable after monitoring several times.
Response:
     The commenter appears to misinterpret the intent of the delay of
repair provision.  The standards require that owners or operators must
show that valve assembly supplies had been sufficiently stocked before
the supplies were depleted.  This includes custom-order and unique parts,
as well, to avoid delays of  repair due to unavailability of parts.
Despite what the commenter says, the provision does not invite operators
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 to maintain  small  inventories of  spare  parts.  Plant experience with
 delays will  be  considered  if delay was  reasonable.
 2.3   PUMPS
 2.3.1  Basis  for Standards
 Comment:
      One commenter  (IV-D-4) recommended that the EPA decrease the
 monitoring frequency for pumps based on the lower percentage of pumps
 found leaking during a recent refinery  inspection.  The commenter also
 suggested a  skip-period alternative for pumps.
 Response:
     The basis  of the standards for pumps is monthly leak detection and
 repair.  One month  provides the most effective leak .detection and repair
 program for pumps,  reducing emissions from a Model Unit B by 11.5 Mg
 per year, without imposing difficulties or unreasonable costs in
 implementing the program.  EPA has determined (Document No. IV-B-2)
 that monthly monitoring has reasonable cost effectiveness, $158/Mg, and
 incremental cost effectiveness, $170/Mg between quarterly and
 monthly monitoring.
     EPA data collected during screening studies on pump seals represent
 plants with and without existing control programs.  EPA data represent
 pumps found in  refineries throughout the nation.  No data were submitted
 by the commenter to substantiate the contention that some pumps have
 distinctly lower leak frequencies.  There may be many reasons that the
 lower leak frequency was found in his plant.  One reason may be that a
 control  program was recently implemented.
     Skip-period monitoring for pumps has not been included in the
 standards for two reasons.   The first is that pump seal  failures are
 sudden events independent of prior leak history.   Valve  leaks (where
 skip-period monitoring  has  been used),  in contrast, gradually increase
over time, so that leak history is a factor in  the leak  status of any
one valve.   A skip-period  monitoring program for valves achieves
emissions reduction because the number  of valves  leaking gradually
 (and very slowly for process units that can use this alternative)
 increases over the monitoring  period.   However, skip-period monitoring
for pumps would allow large emitters to leak for  a long  period of time
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because pump seals begin to leak suddenly.  Secondly, the number of
pump seals that must be monitored is not. large enough to develop a
meaningful statistical program.  For example, a large process unit
(Model Unit C) would only have about 40 pump seals in light liquid
service.  Hence, an allowable percentage of pumps leaking, for example
2.0 percent, would not even allow a single pump leaking.  EPA has
provided other alternatives to monthly monitoring, which include
(1) installation of a properly designed dual mechanical seal as specified
in Section 60.592(d), (2) installation of an enclosed capture/conveyance/
control system as described in Section 60.592(f), and (3) use of leakless
equipment as provided in Section 60.592(c).
     Since proposal, the cost basis of leak detection and repair programs
for pump  seals has been revised to  assess pump repair on a consistent
basis with information presented in the AID  (Document No. II-A-41).  In
the proposal BID, pump seal repair  costs  are based on 80 labor hours
per pump  seal repair.  This basis has been  revised to 16 labor hours
per seal  repair  plus  the cost of a  replacement seal  ($140/seal, May 1980
dollars).  The cost effectiveness which appears in the  preamble for the
proposed  standards has been revised to $158/Mg VOC emission  reduction
(Document No. IV-B-2).  EPA believes the  revised  cost effectiveness for
pumps  is  reasonable.
Comment:
      Two  commenters  requested that  there  be exemptions  for  pumps.  One
of these  commenters  (IV-D-8) indicated that "some pumps may  not be able
to accommodate  dual  seals.  Accordingly,  the standards  should  provide
exemptions  from the  requirement to  install  dual seals  if  1)  dual  seals
cannot be retrofitted to the existing  pump, i.e., the  pump  would  have
to be replaced  to install  dual  seals;  and 2)  if a compatible barrier
 fluid cannot be found."  The other  commenter (IV-D-12)  indicated  that
certain  reciprocating pumps should  be  exempt due  to  the prohibitive
 cost of bringing-reconstructed reciprocating pumps  into compliance.
Also, if an owner or operator  installs  a  dual  seal,  that  pump  should  be
 exempt from routine monitoring.
 Response:
      EPA recognizes that some  pumps may not be readily  retrofitted with
 dual  mechanical  seals, although circumstances  where  a  dual  mechanical
 seal  cannot be retrofitted without  replacing the entire pump are rare.
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An exemption for these few pumps is necessary.   The standards  do  not
require dual mechanical  seals, but only require satisfactory performance
under the leak detection and repair program.   Leak levels  below 10,000
ppm organic concentration at the surface (which remains,the only  require-
ment for pumps) may be obtained by replacing  the original  seal  or the
original seal packing.  Should these measures fail to reduce the  leak
rate to an acceptable level  (an intrument reading of less  .that 10,000
ppm), the seal area may be enclosed, and the  enclosure vented  to  a
control device.
     Availability of compatible barrier fluids should rarely  pose a
problem.  As discussed in the BID for the proposed standards  (pp  3-4
through 3-6) dual mechanical seals may be arranged in either  of two
configurations, back-to-back or tandem.  The  tandem arrangement utilizes
a barrier fluid pressure lower than the process fluid pressure at the
pump seal, such that any leakage at the primary pump seal  results in  a
leakage of process fluid into the barrier fluid.  Such a sealing  arrange-
ment will prevent contamination of the process fluid by the barrier
fluid.  The barrier fluid must be purged, however, to a controlled
degassing reservoir to prevent the leaked process fluid from eventually
being emitted to the atmosphere.  In the back-to-back arrangement the
two seals provide a closed cavity between them and a barrier  fluid is
circulated through the cavity at an operating pressure greater than the
stuffing box.  Barrier fluid leaking across the primary pump  seal will
enter the stuffing box and mix with the process fluid.  Barrier fluid
going across the secondary seal would release to atmosphere unless
captured by a vent control system.
     Reciprocating pumps may also be maintained in compliance with the
leak detection and repair program requirements.   EPA recognizes,  however,
that maintaining adequate sealing for less than 10,000 ppm organics
concentration around  linear motion shafts may be  difficult.  However,
the  seal area  (or  distance  piece) of such pumps may be enclosed,  and
the  enclosure vented  to a control device.  As such, an exmption for
these  pumps  is not necessary.   The commenter provided no  information or
data to support  the statement that costs of  compliance for reciprocating
pumps  is prohibitive.
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     If an owner or operator chooses to utilize an alternative control
technique for pumps such as dual seals or enclosed and vented seal
areas rather than monthly monitoring, these pumps are exempt from the
routine instrument monitoring.  However, several criteria would need to
be met for these alternative controls such as weekly visual inspections,
continuous monitoring of the barrier fluid system for seal failure
detection, and daily barrier fluid level checks.  These are required to
ensure the integrity of the alternative control system and to remain
exempt from monthly monitoring.  In order to clarify the intent of this
requirement, the final regulation will include a definition for
"stuffing box pressure" as "the pumped product pressure at the primary
seal interface."
Comment:
     One commenter (IV-D-14) expressed concern that the alternative
standards for pumps "are essentially a barrier fluid standard because
in the dual seal system, one mechanical seal is still exposed to the
atmosphere, as is the case with a single mechanical seal.  But requiring
a dual seal system rather than defining the standard as the use of a
non-VOC barrier fluid on the seal exposed to atmosphere, precludes the
use of a single mechanical seal with the same barrier fluid even
though the two are equivalent from the standpoint of emissions."
The same commenter suggested that EPA simply establish a no detectable
emissions limit for the barrier fluid system.
Response:
     The commenter appears to be requesting an exemption from the
routine leak detection and repair program for single seal pumps with
non-VOC barrier fluids.  EPA does not have enough information to use in
evaluating such an approach, and the commenter did not suggest a means
of ensuring continued compliance with the standards such as the barrier
fluid requirements of the proposed standards.  EPA does not know how to
do this either.  For these reasons, single seal/barrier fluid systems
are not exempt from the standards.
     The standards, however, allow owners or operators to use equivalent
means of emission limitation as provided for in Section 60.484.  An
owner or operator subject to the standards may apply to the EPA for
determination of equivalence for any means of emission limitation that
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 achieves  a  reduction  in  emissions of VOC at least equivalent to the
 reduction in  emissions of VOC achieved by the controls required by the
 standards.  Each  owner or operator applying for an equivalence determination
 is  responsible  for collecting and verifying test data to demonstrate
 equivalence.
     EPA did  not  require a  "no detectable emissions" limit for pump
 seals because with the control technique specified (monthly leak detection
 and  repair) as  the basis for the standards, pumps can still leak.
 Several types of  pumps with auxiliary equipment (e.g., dual mechanical
 seals that  utilize a  barrier, fluid system, and enclosure of the pump
 seal area), however,  can achieve emission reductions of VOC at least
 equivalent  to that achieved by a monthly leak detection and repair
 program for pumps provided that they are operated under certain conditions.
 Seal less pumps  do not have a potential leak area and, therefore, are at
 least equivalent to monthly leak detection and repair and dual seal
 systems.  As with other  leakless equipment, seal less pumps would be
 subject to an initial performance test (using procedures specified in
 Reference Method 21) to  verify that the piece of leakless equipment
 meets the "no detectable emissions" limit, and annual rechecks to
 ensure continued operation with "no detectable emissions."
 Comment:
     One commenter (IV-D-21) questioned Section 60.592.2(d)(i) that
he said creates the requirement that barrier fluid be at a higher
pressure than the stuffing box.  The commenter said that this, requirement
is impossible because the "barrier fluid pressure is the stuffing box
pressure."
Response:
     As discussed in Chapters 3 and 4 of the BID for the proposed
standards, dual  mechanical  seals consist of two seal  elements  with a
barrier fluid between them.   By pressurizing the barrier fluid to a
pressure greater than the process pressure, any leakage in the primary
seal would result in the leakage of barrier fluid into the process,
while any leakage in the secondary (outer) seal  would result  in leakage
of barrier fluid to the atmosphere.   Provided a non-VOC barrier fluid
is used, no VOC leakage to the atmosphere can occur.
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     The intent of §60.592-2(d)(l)(i) is that the barrier fluid be
maintained at a higher pressure than the pumped product as discussed.
above.  Where dual mechanical seals are used, several  pressures are
associated with the stuffing box, including the pumped product, the
barrier fluid pressure, and the atmospheric pressure on the outside of
secondary seal.  Originally EPA intended to require that the barrier
fluid be maintained at a pressure higher than the pumped product outlet
pressure.  However, the pressure of the pumped product at the primary
seal face (i.e., at the stuffing box) may be different from the outlet
pressure.  As such, EPA decided to clarify the requirement by requiring
that the barrier fluid pressure be greater than the pressure of the
pumped product at the stuffing box.  The terminology used by the EPA has
led to the commenter's confusion.  To clarify the requirement, in
response to this comment, EPA will add a definition of "stuffing box
pressure" to the  final standards to  indicate that the stuffing box
pressure, for purposes of the standards, is the pressure of the product
at the primary seal face.
2.3.2  Monitoring
Comment:
     Two  commenters (IV-D-8  and  IV-D-21) wrote that the criteria for
visual pump  inspections should be  revised.  One commenter  (IV-D-21) stated
that  liquid  leakage from pumps should be defined in a more quantitative
manner.   The commenter suggested that the criteria be three drops  per
minute  rather  than the subjective  "indications."  Another  commenter
 (IV-D-8)  maintained that monitoring  with an analyzer should be the sole
criteria for determining a  leak.   In contrast, another  commenter
 (IV-D-24) thought that monitoring  of pumps is excessive and unnecessary
because  emission  concentrations  measured with a  portable  analyzer  are
erratic  for  mechanical seals.  The commenter held that  visual  checks
alone were  an  adequate means of  detecting  leakers.
Response;
      The purpose  of  visual  inspections  of  pump seals  and  barrier  fluid
 systems  is to  detect  leaks.   Liquids dripping from the  seal area  indicate
 seal  wear and  may signal the beginning  of  seal failure  or actual  failure
 of the  barrier fluid  system.  To prevent excessive wear that  could
 possibly result  in catastrophic  seal failure, the  seal  should be  repaired
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 soon after leakage  is  detected.  Visual  inspections detect the leaks
 associated with  such failures  of seal systems.  Therefore, any visible
 leakage  from  the seal  area  is  considered a  leak.  A more quantitative
 approach,  "such  as  three drops per minute," would be no more indicative
 of  a leak  than the  approach proposed by EPA.  However, to define better
 what EPA considers  "liquids dripping," a definition has been added to
 the standards.   "Liquids dripping" means any visible leakage from the
 seal  including spraying, misting, clouding, and ice formation.
      The results  of the Western Oil and Gas Association (WOGA) testing
 of  petroleum  refining  industry pumps (Document No. II-A-42) have shown
 that 44  percent  of  light liquid service pumps found exceeding the
 10,000 ppm action level also had liquid leaks that were visually detected.
 Hence, visual inspections do find a significant proportion of "leakers"
 and  are  an  effective supplement to instrument monitoring.   However,
 large quantities  of VOC can be emitted from leaking pump seals even
 when there  is no  visual indication of leakage.  Large leaks can occur
 without  forming liquid drops or obvious indications of liquids dripping.
 For example, emissions may be sprayed as a fine mist, vaporize, or may
 condense as ice.  Thus, pumps require a more precise measurement method
 (i.e., the use of a monitoring instrument) to determine if emissions
 are equal to or greater than 10,000 ppm.
     There is a relatively high degree of certainty whether a pump seal
 has an organics concentration at greater than or less than 10,000 ppm
using Reference Method 21.  Pump seal  failures are usually sudden (not
 a deterioration effect), such that emission concentrations are either
well above or below the 10,000 ppm leak  definition for pump seals.
 Further,  no data were provided by the commenters to support the contention
that instrument measurements are erratic for pump seals.   Hence,  EPA
maintains that instrument monitoring  is  effective and necessary to
 identify  leaking pump seals.
 2.3.3  Repai rs
Comment:
     Several commenters expressed concern about  the repair of pump
seals.  Two commenters  (IV-D-8 and  IV-D-14)  were concerned that a high
 portion of pump seals continue to leak  in excess of 10,000 ppmv following
attempted repair.  Two  commenters recalled that  in the WOGA study
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(Document No. II-A-42), the previously referenced industry pump seal
testing, 40 percent of the pumps continued to leak after attempted
repair, whereas, the cost effectiveness of the control technique is
based on the presumption of 100 percent successful repair.  Some
commenters (IV-D-8, IV-D-15, and IV-D-18) requested that the regulations
allow delay of repair for pump seals.  One commenter noted that more
than 6 months (as allowed in the proposed standards) is sometimes
needed to retrofit dual seals.  Also, delay beyond unit shutdowns
should be allowed for pumps if there is a delay in equipment delivery.
Response:
     Pump seal manufacturers have  indicated (Document No. IV-E-4) that
their emissions testing shows 10,000 ppm to be a  proper leak definition
criteria and that properly installed and operated seals should easily
meet it.  However, EPA recognized  before the standards were proposed
that repairing pump seals to achieve VOC emission concentrations to
below 10,000 ppm may be difficult  in some instances.  The specific
reference to the WOGA study (Document No. II-A-42), that  "40 percent of
the pumps repaired continued to leak", does not necessarily apply to
the standards for pumps.  Pumps with new seals, especially seals of
harder material, may have a run-in time of up to  48 hours of operation
to seat  properly  (Document No.  IV-B-17).  There is no evidence given in
the WOGA study to indicate that some of the pump  seals that continued
to leak  following  repair were not  monitored within the run-in period.
Seal replacement may in fact have  been a much more successful means of
repairs, and  reported as  such,  if  pump rechecks were measured after the
run-in  period.  Also, in this study, pump seal repair was not always seal
replacement  (e.g., tightening of seal packing), whereas the EPA cost
analysis was  based on seal replacement.
     EPA analyzed  control techniques for pumps that might not be
repairable to below 10,000 ppm.  The cost effectiveness of installing a
dual mechanical  seal with a barrier  fluid system  was  examined for pump
seals that  (1)  are  known to be  leaking and  (2) cannot be  repaired by
 relatively  simple  procedures  (such as  replacing a seal).  Based on
this,  EPA  found the cost  effectiveness of installing  dual seals to
 reduce  pump  emissions  to  be  reasonable (Document  No.  IV-B-5).  EPA
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 expects the  use  of dual seal systems to comply with the repair require-
 ments  of the proposed standards.  However, because retrofitting these
 systems cannot be completed  in 15 days, EPA provided 6 months to complete
 the repair.  Owners and operators also have the option of enclosing the
 pump seal and venting the emissions to a control device.
     In response to the second group of commenters, EPA recognizes the
 need for delay of repair if  the repair necessitates process unit shutdown*
 However, delay of repair for pumps beyond unit shutdown is not necessary
 because the  plant owner or operator can stock (without unreasonable costs)
 enough spare seals and seal  parts for repair to prevent shortage of
 seal parts due to a delay in equipment delivery.  EPA proposed to allow
 delay of repair beyond shutdown for valves that require replacement of
 the entire valve assembly _vf the owner or operator shows that a sufficient
 stock of these assemblies had been maintained before the stock was
 depleted.  However, there are substantially fewer pumps in process
 units than valves, so stocking spare seals is not unreasonable.   In
 addition, most refineries have a spare pump in place that can be operated
 while the leaking pump is being repaired so it is not clear why  many
 repairs.would ever need to be delayed to a process unit shutdown.  EPA,
therefore, does not consider it necessary to incorporate the delay of
 repair provision into the final standards for pumps.
     Commenters were concerned that they would not be able to retrofit
dual mechanical  seal  systems within the required 6-month period  (Section
60.592-2(c)(3)) for leaking pumps that cannot be repaired to achieve ;,
emission concentrations below 10,000 ppm.  However, pump seal  manufac-
turers (IV-E-6 and IV-E-8)  have indicated that the 6-month requirement
to retrofit a dual  mechanical seal  system is reasonable.  Most dual
mechanical  seals can be shipped from the manufacturer the day they are
ordered, and, in the event  of an unusual  or special order, dual  seal
systems can be manufactured in 16 to 18 weeks.  Twenty-four weeks (6
months) would allow for engineering and installation.  A refinery may
have some difficulty with installing more than 10 dual  seal  systems  in
a given 6-month period.  However, EPA does not expect that more  than 10
dual seals will  be installed in a single process unit during a given
six-month period.  Thus, EPA considers the decision to allow owners  or
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operators to delay repair of pumps up to 6 months reasonable if a dual
seal system must be used.
2.4  COMPRESSORS
Comment;
     One commenter (IV-D-12) commended EPA for providing exemptions for
existing reciprocating compressors.
Response;
     EPA did not provide a blanket exemption for existing compressors in
the proposed standards as the commenter implied even though EPA discussed
that certain reciprocating compressors might not be covered under the
reconstruction provisions if retrofitting the required equipment was
technologically or economically infeasible (see 40 CFR 60.15(e)).  To
make EPA's intent clear and to reduce the burden of reviewing recon-
struction determinations, EPA is explicitly exempting existing recipro-
cating compressors provided the owner or operator demonstrates that
recasting the distance piece or replacing the compressor are the only
options available to bring the compressor into compliance.  This exemption
is necessary because the cost impact of installing the required control
equipment or replacing the compressor is unreasonable.  These compressors
will be exempt from the standards until they are replaced by new compressors
or the distance pieces are replaced.
Comment:
     Another commenter (IV-D-30) was concerned that a case-by-case
determination of the feasibility of putting controls on reconstructed
reciprocating compressors would be burdensome to EPA or the States and
would probably result in a blanket exemption.  The commenter requested
that EPA reexamine whether a specific definition of the compressors that
are appropriate to exempt can be written in lieu of the case-by-case
determination.
Response:
     It is impossible to fully define all applications of reconstruction
considered for existing reciprocating compressors.  EPA maintains,
however, that the determination of technological or economic feasibility
(or infeasibility) to meet the standards would not be burdensome for
EPA (or State agencies delegated enforcement authority), considering
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  the  few  compressors  that might  fit  into this exemption.  The exemption
  applies  only to those specific  instances where the seal area cannot be
  enclosed and vented  without  recasting the distance piece or replacing
  the  compressor.
      EPA has evaluated  (Document No. IV-B-20) means of controlling
  compressor leaks that may comply with the standards for compressors at
  reasonable cost.  Based on the  availability of reasonable.control
  options,  EPA does not believe that the provisions for reciprocating
  compressors'wi11 result in a blanket exemption of all such compressors.
  Comment:
      A commenter (IV-D-14) argued that the standards for compressors
  do not provide an incentive to  improve existing control technology.
  Another  commenter (IV-D-8) wrote that "there is no justification for
  establishing a separate and arbitrary definition of leak for compressors,"
  thus EPA should use the 10,000 ppm leak definition.  Other commenters
  (IV-D-14 and IV-D-16) asked EPA to allow quarterly monitoring as in the
  refinery CTG (Document No. II-A-6).
 Response:
      The standards for compressors do not deter the incentive to
^improve existing control technology.  Refiners  have the option  of
 employing mechanical  seals with barrier fluid systems and controlled
 degassing vents or may alternatively enclose the seal  area  and  vent the
 captured emissions to a control  device.   These  are generally the only
 techniques available  to reduce VOC emissions from compressor seals.  In
 addition, the standards provide additional  flexibility and  incentive to
 improve upon  existing technology through  the provisions of  Section
 60.592-3(i)  that allow an automatic  equivalence for no detectable
 emissions.  Furthermore, an  owner or operator may apply equipment or
 procedures that achieve a reduction  in VOC  emissions  at least equivalent
 to the  reductions  achieved  by the compressor control  requirements.
      The standards  for compressors  require  the  use of mechanical  seals
 with  barrier  fluid systems and  controlled degassing vents.   Leakless
 equipment is  allowed  as an  alternative  to the mechanical  seal system.
 Leakless  equipment  is considered at  least equivalent  to mechanical
 seals if they can be  shown to have no emissions.   Method 21 defines no
 emissions, or "no  detectable  emissions," as  a minimal  deflection  of the
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portable instrument meter.  In the case of the proposed standards,  this
is a reading of 500 ppm or less.  Hence, the 500 ppm is not  a  leak
definition as misconstrued by the commenter, but an instrument limited
definition of no detectable emissions as specified in Reference
Method 21.
     Quarterly monitoring is not allowed under the standards because it
would achieve significantly less emission reductions than the mechanical
seal system, other leakless control, or enclosure and venting to a
control device.  Even as noted in the refinery CTG published in June
1978 (Document No. II-A-6), EPA has concluded that a leak detection and
repair program for compressors in refineries is generally not an effec-
tive control technique and, therefore, EPA did not consider it a viable
option as the basis for the standards.  Quarterly monitoring was recom-
mended in the refinery.CTG due to the limitations of retrofitting
equipment controls on existing compressors.  The effectiveness of a
leak detection and repair program for compressors is limited because
repair of leaks for most compressors could not be accomplished without
a process unit shutdown and because some seals must leak to operate
properly.  Because shutdowns generally occur infrequently, limiting the
emission  reduction obtained from maintenance, and because repair of a
compressor seal would often involve the use of mechanical seal systems
or  enclosure and venting to a control device, equipment controls are
used as the basis for the standards.  These equipment controls have a
reasonable cost effectiveness (see preamble for the proposed standards,
Table  1).
2.5 PRESSURE RELIEF DEVICES
Comment:
     One  commenter  (IV-D-19) was concerned that the costs for rupture
disks  are overestimated in the  BID for the proposed standards.  The
commenter said: (1) EPA costs are based on relief valves with the
rupture disk offset under it; this practice and cost is not necessary
and violates recommended  industry codes;  (2) the added cost for retro-
fitting a disk and  valve  is only valid  for half of the field installations
because the downrating of a valve as an ASME requirement is only mandatory
for. new installations and is not required for retrofit installations;
and (3) in  a recent API survey, half of the companies  responded that
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 they  already  use  block valves  under  relief valves; therefore, the block
 valve really  should not be included  in the cost of installing a rupture
 disk  under  a  relief valve.  Another  commenter (IV-D-12) disagreed with
 EPA's decision to  require rupture disks for pressure relief valves.
 The commenter thought the incremental cost of $930 per megagram emission
 reduction from quarterly leak  detection and repair to the use of rupture
 disks was unreasonable.  The commenter recommended quarterly leak
 detection and repair as an alternative control for pressure relief
 valves.
      Other  commenters remarked concerning disk sizing.  One commenter
 (IV-D-14) urged EPA to consider a case-by-case standard for pressure
 relief devices because problems in sizing spool  and .piping are likely
 to arise as a result of added  pressure drop in retrofit installations.
 Another commenter  (IV-D-19)  in contrast wrote that most rupture disks
 manufactured have  flow coefficients  (0.95 and higher) compatible with
 relief valves manufactured,  so that  it is becoming common practice not
 to downrate relief valves upon retrofitting rupture disks.            :
 Response:
      The basis of the standards selected for pressure relief devices in
 gas service is the use of rupture disks.  Rupture disks eliminate
 fugitive emissions of VOC through the relief device unless an overpressure
occurs.  After an overpressure release, replacement of the rupture disk
 once  again eliminates fugitive emissions of VOC  through the pressure
 relief device.  Therefore, a "no detectable emissions" standard was
 selected for pressure relief devices.  The proposed standards for
 pressure relief devices require that they be operated with no detectable
emissions as indicated by an instrument reading  of less than 500 ppm
 above background and that they return to this condition within 5 days
 following pressure release.
     At proposal, EPA considered the incremental  cost effectiveness   ,
between quarterly monitoring (required by State  implementation plans)
and rupture disks  (see preamble for the proposed standards, Table 1)
and determined that the resulting value, $930/Mg VOC, was reasonable.
The commenter disagreeing with the reasonableness of this incremental
cost  effectiveness has offered no specific information suggesting that
this cost effectiveness level  is unreasonable.
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     In reviewing the public comments, EPA re-evaluated (Document No.
IV-B-2) the cost effectiveness and incremental cost effectiveness of
different levels of control (quarterly and monthly leak detection and
repair and the use of rupture disks) for pressure relief devices as
shown in Table A-2 of Appendix A.  The cost effectiveness for quarterly
and monthly leak detection and repair was estimated to result in savings
of $170/Mg VOC and $110/Mg VOC, respectively.  The use of rupture disks
has a cost effectiveness of about $410/Mg VOC.  The incremental cost
effectiveness between quarterly and monthly leak detection and repair
is about $250/Mg VOC.  The incremental cost effectiveness between
monthly leak detection and repair and rupture disks is about $l,000/Mg
VOC.
   '  At proposal, EPA cost estimates were based on rupture disks with
offset mounting to prevent damage to the relief valve by disk fragments
as stated in the BID for the proposed standards, Table 8-1.  EPA
recognizes that the offset mounting may not be necessary, and that it
could present a safety problem if it added significant pressure drop to
the system.  In these cases, EPA agrees that an offset mounting would
not or should not be used.  However, since owners or operators might
use the rupture disks with offset mounting, EPA did not revise the basis
for the rupture disk system costs, realizing that the estimated costs
to comply with the standards may be overestimated.
     The first commenter was also concerned that block valves should
not be included in the cost analysis because they are already installed
in half the refineries surveyed by API.  Even though the use of block
valves may already be widespread, EPA expects that some refiners would
use them in the absence of the standards, and, therefore, EPA decided
to continue to include them in the cost analysis.  This will result in
an overestimate of the nationwide cost impact of the standards for
pressure relief devices.
     Sizing problems in retrofitting  rupture disks can be avoided
through the selection of compatible disks and disk holders; therefore,
there  is no reason to establish special requirements for pressure
relief devices in process units affected through modification or
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reconstruction.  In addition, refiners have the option of venting
pressure relief valve emissions to a VOC control  device, such as a
flare.
Comment:
     Two commenters (IV-D-8 and IV-D-21) stated that rupture disks
should not be used as the basis for judging the leak rate of pressure
relief valves because rupture disks are not common in the.industry as
mentioned in the BID for the proposed standards.
Response:
     EPA is required to establish new source performance standards
based upon best demonstrated technology (BDT), not common technology.
EPA has determined that rupture disks represent BDT for pressure relief
devices.
     The standards for pressure relief devices are based on the use of
rupture disks.  Because rupture disks eliminate emissions, EPA selected
a performance standard of "no detectable emissions."
Comment:
     Commenters (IV-D-5, IV-D-8, and IV-D-18) were concerned with the
safety of the standards for pressure relief devices.  Monitoring pressure
relief devices is inherently unsafe.  In addition, these components are
frequently difficult-to-monitor.  The practice of employing rupture disks
is unsafe due to the pressure build-up between the disk and relief device.
Response:
     Refineries routinely inspect pressure relief devices approximately
on an annual basis as a part of normal safety and maintenance procedures
to ensure the set pressure is correct (Document No. II-D-22); therefore,
the standards are not requiring refineries to do a new task.  The
standards implicitly require performance tests using Method 21 to
verify that the device is maintained at no detectable emissions.  This
test is similar to testing done by EPA and EPA contractors in collecting
data for development of the standards and similar to testing required
by States under implementation plans.  This test could be scheduled
during periodic inspections of pressure relief devices, which are
typical of many industry safety practices.  Monitoring should be done
by personnel who understand the precautions needed when monitoring
pressure relief devices.  Evidence that operators can safely monitor
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 pressure  relief devices  is further indicated by one refiner's (Document
 No.  IV-D-33) practice of  removing pressure  relief devices (for repair/
 replacement and testing)  following overpressure releases.  Based on
 this information  and EPA's experience in collecting data for pressure
 relief devices, monitoring of these devices can be done safely.
      The  standards  for pressure  relief devices are based on the use of
 rupture disks; however, the standards do not require their use.  Alter-
 natively,  pressure  relief device emissions  can be routed to a VOC control
 device, such as a flare.  If a rupture disk is used, a pressure sensor
 should be  installed to warn operators if a  pressure increase has
 occurred between the disk and relief valve.  The cost of a such a
 sensor (0.6 cm pressure  gauge) has been included in the cost analysis
 that  is presented in the  BID for the proposed standards, Chapter 8,
 Table 8-1.             .
 Comment;
      Two commenters (IV-D-8 and  IV-D-21) disagreed with the leak definition
 for  pressure relief devices stating that there is no justification for
 a different leak definition than 10,000 ppm.
 Response:
      The standards for pressure  relief devices are based on the use of
 certain equipment.  This  equipment, as explained in the preamble to the
 proposed standards, results in no detectable emissions.  The no detectable
 emissions  limit is 500 ppm according to Method 21 and is related to
 monitoring instrument capabilities.  The 10,000 ppm leak definition for
 pumps and  valves was chosen based on different considerations  and is
 unrelated  to standards that require no detectable emissions,  such as
 the standards for pressure relief devices.   A 10,000 ppm or  greater
 concentration indicates a pump seal  failure or deterioration  of  a
 valve packing, and concentrations below 10,000 ppm are allowed.   The no
 detectable emissions level (500 ppm)  indicates no emissions.
 Comment:
     Another commenter (IV-D-21)  requested  the addition of  a qualifying
 phrase to the standards,  Section  60.592-4(b),  such  that pressure  relief
 valve monitoring only be required "after each  pressure relief, of  which
the operator has knowledge."   The commenter wrote that  this clause  is
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 necessary because pressure relief to the atmosphere is not always known
 by the owner or operator.
 Response:
     The intent of the standards for pressure relief valves is to
 control emissions at all times except during an overpressure relief.
 Therefore, the standards require that pressure relief valves return to
 no detectable emissions as soon as practicable, but no later than 5
 calendar days after the pressure relief.  Pressure sensors between the
 rupture disk and pressure relief device can alert operators in the event
 of a pressure relief.  Owners or operators may also be alerted that
 pressure release has occurred from instrumentation in a unit control
 room or by visually or audibly detecting a release.
 2.6  SAMPLING SYSTEMS
 Comment:
     A commenter (IV-D-14) wrote that an exemption in the proposed
 standards for sampling systems should be allowed when for example, a
 sample might be drawn after a heat exchanger or cooler, and there is ,,;
 not enough pressure available to return it to a lower pressure source;
 The commenter suggested an alternative to closed loop sampling.  He
 recommended simply to require accumulation of the purged material  in
 another container for proper disposal.  Another commenter (IV-D-4)     :
maintained that the application of the standards for sampling connection
 systems for "low vapor pressure liquid streams is not cost effective
with respect to reduction of VOC emissions."
Response:
     The standards do not require "closed loop" sampling (although
it may be used to comply with the standards)  but do require a "closed
purge system" as one commenter suggested.  Using closed purge sampling,
an owner or operator could simply collect purged materials and properly
dispose of them by any system that collects the VOC and destroys  or
recovers the VOC without emissions to atmosphere.
     EPA recognizes that some sampling connections are located at
points that would have insufficient pressure  to return purged fluid in
a closed loop.   For example,  low line pressure (resulting from pressure
drop in the final  product coolers or a phase  change)  is characteristic
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near plant boundaries.  Hence, EPA expects that owners/operators would
use closed purge to comply with the standards.   If  a  plant owner or
operator chooses to retrofit a closed loop sampling connection  in these
instances at a location of higher pressure (e.g., near  a pump), and if a
sample cooler is not in place at the selected location, a cooler may
have to be installed to ensure safe handling of hot materials.
     Retrofitting a closed loop sampling connection at  a location
that necessitates a cooler, however, is not expected  to occur often.
Most sampling connections are located near pumps where  line  pressure  is
not a problem and where cooling systems are already in  place (Document
No. IV-B-6).  Nevertheless, EPA has estimated the additional  cost
of retrofitting a closed loop sampling system with  a  cooler.  The
addition of a sample cooling system increases the cost  effectiveness  of
the sampling system from $810/Mg to $l,450/Mg.
     The standards for sampling connections include low vapor pressure
liquid streams.  Heavy liquid streams have the potential to  emit VOC's
to atmosphere, particularly from purged sampling materials that are
likely at elevated temperatures.  The emission factor developed for
sampling connections is based on both light liquid  and  heavy liquid
streams.  The cost effectiveness estimate of $810/Mg  is based on closed
loop sampling.  However, the standards allow closed purge sampling
which would likely be used for low vapor pressure streams at an even
more reasonable cost effectiveness.
Comment;
     Another commenter (IV-D-4) suggested an exemption  for sampling
connections in units that become affected facilities  through modifi-
cation or reconstruction if retrofit costs exceed that  of a  comparable
installation in a new unit.
Response:
     The control costs presented in Chapter 8 of the  BID for the proposed
standards for sampling systems are likely overstated  because they are
based on closed loop sampling.  These costs included  retrofit conside-
rations.  The cost effectiveness of closed loop sampling is  estimated
to be $810 per Mg (preamble to the proposed standards).  It  is  possible,
however, that in some situations retrofit costs for using closed loop
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 sampling  will  exceed  that  of  the cost  of  a  new sampling system.  [The
 example given  in  the  previous comment  indicated that owners/operators
 may retrofit a closed loop sampling  system  by adding a sampler cooler.
 Although  it is unlikely  that  retrofitting a closed loop sampling con-
 nection at a location that necessitates a cooler would occur very
 often, EPA evaluated  the cost effectiveness to retrofit a closed loop
 sampling  system by adding  the cost of  a dedicated sample cooler.  EPA
 determined that the cost effectiveness of the system is still reasonable,
 $1,450 per Mg  VOC (Document No. IV-B-6).]   If a specific plant would
 incur extra costs, EPA would  not consider this unreasonable.
 2.7  OPEN-ENDED LINES
 Comment:
     One  commenter (IV-D-8) questioned the operational  requirement of
 closing the inner valve  prior to closing an outer valve on open-ended
 lines.  The commenter wrote that this requirement is unenforceable and
 of no benefit  if the  inner valve leaks.
 Response:
     The  standards require open-ended valves to be equipped with a cap,
 plug, or  a second valve.   If a second valve is used, the upstream valve
 is required to  be closed first before closing the downstream valve.
 This operational requirement is merely sound practice that plant operators
currently follow to prevent process fluid from being trapped between
the valves.  While it is true that  this and many other  sound practices
are not 100 percent enforceable, this requirement is enforceable if an
 inspector  finds that the upstream valve has not  been closed at  all.
     If hot (or cold)  product is trapped between  the two valves,
as it contracts (expands) from cooling (heating)  to  ambient temperature,
it could  cause  the pipe, the valve  stem, or the  valve seat to fail.
Should the inner valve leak through the valve seat,  however, the product
will eventually fill  the piping between the valves with ambient  temperature
fluid without  stressing the valve  seat.  In this  situation the  second
valve would control  VOC emissions.
Comment:
     Another commenter (IV-D-14) recommended that  open-ended valves
and lines  be included  in the valve  standards (i.e.,  leak  detection  and
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repair) with an exemption for plugged valves.  The commenter was concerned
that any open-ended valve could result in a violation.  Concern was
also expressed that requiring plugs on pump case valves could cause
premature failure of the welded connection at the pump case.  Also, the
standards would require plugging bleed valves "out-of-service" in a
block and bleed arrangement.
Response:
     Open-ended valves are not included in the valve standards because
leak detection and repair for open-ended valves does not represent BDT.
Leak detection and repair would achieve less emissions reduction and
may cost more to implement than the equipment and operational standards
for open-ended valves because of repeated inspections of nonleaking
sources.  The use of a leak detection and repair program for the control
of VOC emissions from open-ended valves or lines would be inappropriate.
     The standards for open-ended valves provide refineries with the
flexibility to add either a cap, plug, blind flange, or a second valve
depending upon the individual application.  Pump case valves, for
example, could be double valved to avoid the risk of premature failure
of the welded connection at the pump case caused by frequent removal of
a cap or plug.
     Upon reviewing the comment that the standards would require plugging
bleed valves "out-of-service" in a block and bleed arrangement, EPA
decided to provide an exemption in the final standards for open ended
lines in a double block and bleed arrangement when venting the space
between the two block valves.  However, when the bleed valve is not
opened, it must be capped.
2.8  FLANGES, LIQUID SERVICE RELIEF VALVES, AND HEAVY LIQUID SERVICE
     VALVES AND PUMP SEALS
Comment:
     One commenter (IV-D-8) maintained that the results of a number of
studies support an exemption for equipment in low vapor pressure service.
The commenter noted that an EPA study (Document No. II-A-19) of two
refineries in the South Coast Air Basin had monitored 664 components in
light and heavy liquid service (which were exempt from South Coast Air
Quality Management District rules) and found only four leaking components,
none of which were in heavy liquid service.  Another study found only
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one leaking valve out of 519 in heavy liquid service and only
3.8 percent of the pumps leaked.  Another commenter (IV-D-15) also
supported excluding pumps in heavy liquid service, pressure relief
valves in light liquid service, flanges, and connections from routine
monitoring.
     Another commenter (IV-D-21) wrote that there is no demonstrable
cost effectiveness to the inclusion of pumps and valves in heavy liquid
service, pressure relief devices in both light and heavy liquid service,
and flanges and other connections, and further, these sources should be
exempt from all requirements as indicated by EPA at the National Air
Pollution Control Techniques Advisory Committee (NAPCTAC)  meeting on
June 3, 1981.   ,
Response:
     The final standards for valves and pumps in heavy liquid service,
pressure relief valves in liquid service, flanges, and connections   ;  .
exempt these sources from routine leak detection and repair.  Thedow^,
leak frequency and emission factors for these sources compared to ;
sources subject to the leak detection and repair programs, as discussed
at the June 1981 NAPCTAC meeting, indicate that the cost of routine leak
detection and repair is not warranted by emission reduction.  However,
Section 60.592-8 provides that if evidence of a potential  leak is
found, the piece of equipment must be monitored within 5 days, and
repaired as soon as practicable within 15 days if an instrument reading
of 10,000 ppm or greater is detected.                                  v
     For those components that are found leaking, however, EPA has   ^ :-
demonstrated that the cost effectiveness of repair is reasonable.
(Document No. IV-B-5).  The cost effectiveness of repair for leaking
flanges, heavy liquid pumps, and heavy liquid valves varies from a
savings of about $180/Mg to a savings of about $90/Mg.  For pressure
relief devices in liquid service, repair costs are not considered to be
attributable to the standards.  These components should be properly
maintained for safety reasons in the absence of a repair requirement.
     The SCAQMD regulations for valves, Rule 466.1, do not cover VOC
less than or equal to 1.5 psi RVP.  The NSPS, however, includes valves
that are less than 1.5 psi RVP.  In reviewing the commenter's request
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to exempt these valves, EPA notes that these valves do leak.   An EPA
study [Document No. IV-A-3] found that 3 of the 175 light liquid valves
with vapor pressures less than 1.5 psi RVP leaked.  In addition, raising
the heavy liquid service cutoff to 1.5 psi RVP would affect a small
percentage of valves.  In the study previously cited, the 175 valves
represented only 2.4 percent of the total  valves that would be subject
to the standards.  Hence, considering:  (1) that the basis of the
heavy liquid/light liquid split is easily determined, (heavy liquids
have vapor pressure equivalent to or heavier than kerosene), (2) that
light liquid valves servicing less than 1.5 psi RVP streams do leak, and
(3) that a small percentage of refinery valves would be affected, EPA
has retained the light liquid definition.
2.9  CONTROL DEVICES
Comment:
    One commenter (IV-D-21) wrote that since flares are not an affected
facility or a fugitive emission source they should not be regulated.
Response;
    Flares are one of several VOC control devices that might be used
to comply with the standards.  These control devices are used to reduce
emissions of VOC that might otherwise be emitted to the atmosphere
uncontrolled.  If flares and the other control devices were not
specifically regulated they might be operated at conditions which would
result in inefficient combustion and inadequate emission reductions.
The EPA has determined that a flare can be operated at conditions which
assure better than 95 percent emission reduction.  Flares operated in
this way are an acceptable alternative to other control devices used to
comply with the standards.  Section lll(h)(l) provides that EPA may
promulgate design and operational requirements (like the requirements in
these standards for other control devices) to assure BDT - level control
and that EPA include such requirements as will assure proper operation
and maintenance of any such element of design or equipment.  Therefore,
it is appropriate to specify operational requirements for flares used
to comply with the control device standards developed under Section
Comment:
     Several commenters  (IV-D-4, IV-D-8, IV-D-12, and IV-D-15) requested
that the requirements for flares be deleted, including the provision
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 that compliance be determined  by Reference Method 22.  They recommended
 that they be  replaced  with  provisions that flares function in accordance
 with good operating practice with  an attached flame and no visible
 emissions except for periods not to exceed a total of 5 minutes during
 any  2 consecutive hours.
 Response:
     Data  developed by  a Chemical Manufacturers Association (CMA) - EPA
 flare test program (Document No.   II-A-43) show that some types of
 flares meeting  certain conditions  achieve better than 98 percent emission
 reduction.  Consequently, the  EPA  concluded that design and operational
 standards which  require flares to  be operated at the conditions determined
 by the tests  would assure better than the required 95 percent emission
 reduction.  The  term "good  operating practice" has no accepted engineering
 meaning.  There  is  no evidence that flares give better than the required
 95 percent emission  reduction  at all velocities at which the flame
 remains "attached." Therefore, requiring that flares function in accordance
 with  good engineering practice with an attached flame does not assure
 better than the required 95 percent emission reduction.   The standards
 do require that there be no visible emissions except for periods not to
 exceed a total of 5 minutes during any 2 consecutive hours.   Reference
Method 22 describes the procedure used to determine whether the flare
meets this visible emission requirement.
Comment:
    Several commenters (IV-D-6, IV-D-7,  IV-D-8,  IV-D-15,  and IV-D-16)
wrote that the definition of a "flare"  was too restrictive and should
be revised to allow many flare designs  Which are currently in use in
refineries.  The commenters specifically opposed the definition because:
 (1) multiple burner arrays are efficient, (2)  there is no relationship
between destruction efficiency and flare elevation,  and (3)  most flares
operate with turbulent diffusion flames  rather than strict diffusion
 flames.  One commenter also stated that  the  definition should allow
 automatic ignition systems.
 Response:
    The definition of a flare is restrictive  in  that the  types of flares
 permitted are limited to those on which  data  are available.   Other
types of flares may give better than the required 95 percent reduction

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under certain conditions.  EPA has underway a program to determine the
efficiencies of some other types of flares used in the petroleum and
SOCMI industries.  As this information becomes available to EPA, the
requirements for flares could be changed, if it is appropriate.   If an
owner or operator chooses to use another type of flare, he may use the
equivalency procedures to demonstrate that the flare should be allowed
by EPA.  EPA accepts that there is no relationship between flare destruction
efficiency and flare elevation.  Accordingly, the definition of control
device has been changed to exclude the term "elevated."  Also, automatic
ignition systems are not disallowed by the regulation.
Comment:
    Other commenters (IV-D-6, IV-D-7, IV-D-15, and IV-D-16) urged
EPA to revise the design and operational  requirements for flares.  The
commenters noted that the maximum velocity of 22 m/sec would greatly
increase flare costs.  It was also suggested that the assignment of
minimum heating values for flares be related to the relief gas composi-
tion.
Response;
    The maximum velocity value of 22 m/sec was changed since proposal
to 18 m/sec.  This change was based on further evaluation of the data.
The revised exit velocity (for steam assisted flares), is the highest
velocity tested in the flare tests sponsored by CMA and EPA (Document
No. II-A-43).  EPA has underway a program to determine if better than
the required 95 percent emission reduction can be maintained at higher
velocities.  If EPA concludes that high emission reduction can be
maintained at velocities greater than 18  m/sec, EPA will  change  the
maximum velocity value accordingly.  An operator would have the  option
of demonstrating to EPA that use of a flare at conditions other  than
those specified, would result in emission reduction equivalent to 95
percent control, the level  selected as BDT for control devices.
Comment:
    One commenter (IV-D-25)  stated that flares should be  exempted
during start-up and shut-down periods and for 10 minutes  during  a
2-hour period.  Even under ideal  conditions,  unit upsets  may cause
incidents exceeding the 5 minutes per 2 hours exemption for visible
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 emissions.  One commenter (IV-D-6) suggested that EPA clarify that a
 visible flame does not constitute a visible emission.
 Response:
     Start-up and shut-down periods and any "unit upset"'due  to
 malfunctions are covered by the General  Provisions.   Section 60.8(c)
 states that "Operations during periods of start-up,  shut-down, and
 malfunction shall  not constitute representative  conditions for the
 purpose of a performance test nor shall  emissions in excess  of the
 level  of the applicable emission limit during  periods of  start-up,
 shut-down, and malfuction be considered a violation  of the applicable
 emission limit unless otherwise specified in the applicable  standard."
     The 5-minute  limit for visible emissions  {within any. 2-hour period)
 is  consistent with the flare requirement of the  State of  Texas  where many
 plants with smokeless flares are located.   EPA has no information, nor
 has any been submitted in  this  rulemaking,  suggesting that these plants
 cannot.achieve this time  limit.
     The standards require that Reference Method 22  [Section  114 of the
 Clean  Air Act  as amended  (42  U.S.C. 7414)]  be  used to  determine the
 compliance of  flares.   This method  involves the  visual determination of
 visible  smoke  emissions from  flares.  Section  3.4 of Method 22 clearly
 states  that "smoke  occurring within the  flame, but not downstream of
 the  flame,  is  not  considered a  smoke emission."
 Comment:
     Another commenter  (IV-D-24) objected to the requirement for
 instrumentation to monitor flare operating parameters.
 Response:
    With  respect to instrumentation to monitor flare operating parameters,
 an owner or  operator is only required to use a heat sensing  device  to
 indicate the continuous presence of a flame.  Flares and other control
 devices are required to be operated at all times  when emissions may be
 vented to them.  Other measurements for flares are required one-time
only or when requested by enforcement agencies  for a compliance
determination.
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Comment:
     A commenter (IV-D-8) requested that the requirement of Reference
Method 22 be deleted because fugitive emissions from flares are small,
and existing flares are designed on a different basis.
Response:  ,
     As explained in the preamble to the proposed standards, EPA selected
design and operational requirements for VOC control  devices:  flares,
enclosed combustion devices, and vapor recovery systems that reflect
the application of the best technological system of emission reduction
for these control devices.  The design and operation requirements for
flares require smokeless operation.  Smokeless operation of a flare means
that visible emissions from a flare are to be less than 5 minutes in
any 2-hour period as determined by Reference Method 22.  Reference
Method 22, hence, provides guidelines for assessing visible emissions
from flares and is included in the standards to ensure that flares
achieve greater than 95 percent control.
Comment:
     One commenter (IV-D-30) believed that EPA has not adequately
justified rejection of flares as the sole basis for the standards for
control devices.  The commenter stated there was no cost analysis in
the BID to support EPA's belief that flares are too costly if they are
built solely for fugitive VOC control.  The commenter contended that,
where point sources of VOC and fugitive sources are controlled by a
single  flare, 98 percent control efficiency should be required.
Response;            •
     Existing control devices were selected as part of the best
technological system  of emission reduction for fugitive emission.  EPA
believes that most in-place flares and enclosed combustion devices are
designed and can achieve an average destruction efficiency of about
98 percent.  Existing vapor recovery systems can be operated to achieve
at least 95 percent emission reductions and are an attractive control
option  in  that some product may be recovered and realized as an energy
credit  (e.g., process heaters).  Flares were not selected as the sole
basis for  this portion of the standards, as the commenters requested
because the cost of requiring owners and operators to replace 95 percent
efficient  control devices already in place in existing refineries with
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98 percent efficient devices is unreasonably high in light of the
small additional emission reduction achievable from these equipment leaks,
The standards, therefore, require 95 percent control (which allows use
of existing vapor recovery systems that can achieve 95 percent,  but not
98 percent control  in all cases) although EPA expects that most  refiners
will  utilize flares and achieve 98 percent or better control.
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                            3.0   APPLICABILITY
 3.1  AFFECTED  FACILITY
 Comment:
     Two commenters  (IV-D-8 and  IV-D-21) questioned whether an "affected
 facility" should be  defined as a group of fugitive emission sources of  <•"
 VOC, noting that (in their opinion) the definition is inconsistent with
 the terms of the Clean Air Act.  A commenter (IV-D-21); stated that
 Regulation 40  CFR 60.2 requires that an "affected facility" be an
 apparatus and  "a group of fugitive sources is not an apparatus."  These '
 commenters implied that all equipment (including equipment not affected
 by the requirements  of the standards) should be included in the affected
 facility for process units.  One commenter (IV-D-8) stated that the
 control of fugitive  emissions is significantly different from controlling
 emissions from new stationary sources generally covered by NSPS.
 Fugitive emissions control "involves continuous tightening or repairing
 of thousands of individual components, each of which emits relatively  ;
 small amounts of emissions," whereas with most other stationary sources
 subject to NSPS, "once the control equipment is installed routine
maintenance is generally required."  Based on these positions the
 commenters stated that control  of fugitive emissions through new source
 performance standards is unworkable.
 Response:
     In choosing the designation of affected facilities, EPA examined
 fugitive emission sources of VOC in light of the terms and purpose of
 Section 111 of the Clean Air Act.  The Clean Air Act mandates-the EPA
 to set standards for any pollutant emitted from a category of new or
modified "stationary sources."   Section lll(a)(3) of the Act defines
 the term "stationary source" to mean "any building, structure, facility,
or installation which emits or may emit any air pollutant."  The
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pieces in VOC service of equipment in a process unit,  viewed in  the
aggregate, are a "facility" that may emit air pollutants and, therefore,
are appropriately considered as a "stationary source".* How these
pieces of equipment are or are not aggregated into affected facilities
is carefully considered by EPA.
     Since the purpose of Section 111 is to minimize emissions by
application of the best demonstrated system of emission reduction  at
new and modified sources (considering cost, nonair quality health  and
environmental impacts, and energy requirements), there is a presumption
that the narrowest designation {i.e., individual pieces of equipment)
is proper.  However, EPA rejected the equipment component designation
for fugitive emission sources other than compressors;  this decision  is
discussed in response to another comment in this section (see page 3-6).
Consequently, the next most narrow definition, the group of all  equipment
components (except compressors) within a process unit, was considered.
Review of the relevant statutory factors did not lead to the conclusion
that designating each group of equipment components in a process unit
*This agrees with the dictionary definition of "facility,"  meaning
 something designed, built, installed, ect., to serve a specific  function
 or perform a particular service" (The Random House College Dictionary,
 Revised Edition, 1975).  The group of equipment in VOC service covered
 by these standards is designed and installed to serve the  specific
 function of handling the processing of petroleum products  into
 intermediate or more refined materials.
     We note in this regard that the Court of Appeals for the District
 of Columbia Circuit-has stated that:
     In designating what will constitute a facility in each particular
     industrial context, EPA is guided by a reasoned application  of  the
     terms of the statute it is charged to enforce, not by  an abstract
     "dictionary" definition.  This court would not remove  this
     appropriate exercise of the agency's discretion.
578 F.2d 319, 324 n. 17 (1978).  EPA's selection of the group of  fugitive
VOC emissions-related equipment as the affected facility reflects a
reasoned application of Section 111.  It assures that an identifiable
subset of refinery emissions—equipment leaks of VOC— is controlled as
soon as the equipment responsible for those emissions is either modified,
reconstructed, or newly constructed.  For the reasons explained in the
text below, a broader definition (e.g., all the components  of a process
unit) would simply delay that result.
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 as an affected facility would cause adverse impacts.  Defining an
 affected facility as the group of equipment components, other than
 compressors, within a process unit would achieve similar emission
 reductions as designating individual  components as the affected facility.
 (See discussion in comment on this point.)  Therefore,  the affected
 facilities for the standards are (1)  compressors in petroleum refineries
 and (2)  the group of equipment (pressure relief devices,  open ended
 lines,  sampling systems, valves, and  pumps)  in  a process  unit.
      Some of the commenters  appear to be suggesting that  the  affected
 facilities should include equipment within  a  process unit even  though
 the equipment is not an apparatus to  which  the  standards  apply.   Such
 an  approach would mean  equipment affected by  the standards would  not be
 required  to use the  best demonstrated technology (considering costs).
 EPA believes  this approach would be inconsistent with  Section 111.
 (No evaluation  of the best demonstrated  technology  (considering costs)
 has taken  place  for  these equipment at this time.   EPA may evaluate
 this  for  these  equipment later.)  Also, if EPA would follow this approach,
 increases  in  emissions  from  emission  points not  affected  by the standards
 and changes in  operation  not related  to  the equipment covered by  the
 standards could  result  in modifications.  In contrast, emission reductions
 resulting from the incremental control of emission  points not covered
 by  the standards  could  be used to offset increases  in emissions resulting
 from emission points covered by  the standards and* therefore, would
 preclude what otherwise might have been a modification.  EPA believes
 this approach would be  confusing.  Based on this consideration, EPA
 rejected this approach.
     The commenter stated that control of fugitive emissions through
 standards of performance is unworkable because the fugitive emission
 sources covered by the  standards do not include all of the equipment
 within a process unit.  This is a practical  consideration only when
 considering the modification and reconstruction provisions in Part 60.
 For newly constructed sources, the standards are clearly practicable.
The standards are well defined and will result in the intended purpose
 of requiring the best demonstrated technology for equipment leaks of
VOC (fugitive emission sources of VOC).  For an owner or operator who
might be considering or  determining a  modification or reconstruction,
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however, this definition might pose some difficulties.   For example,
determining the basis (see definition of capital  expenditure--40 CFR  60.2)
of an existing facility is more difficult for this standard than for
most other standards of performance (See Section 4.0 for more  examples).
EPA has provided alternative approaches to reduce the burden associated
with these difficulties.  These alternative approaches  were not provided
to make this definition usable but to make it easier to use.  This
issue and the alternative approaches are discussed further in  Section
4.0 and, to the extent it concerns the reconstruction provisions, in
Section 5.0.
Comment:
     Another commenter (IV-D-30) contended that EPA should define the
affected facility as each individual fugitive emissions component based
on "Section Ill's presumption for inclusiveness."  In addition, the
commenter did not believe that EPA provided convincing  reasons to
support the decision to treat compressors individually  and other
components collectively (process units) in defining "affected facility."
The commenter contended that EPA's first reason for rejecting  individual
components (the cost of tracking individually covered sources) is not
persuasive because a simple color coding or tagging of  new and existing
components could be used.  Additionally, in response to EPA's  second
reason for rejecting individual components as the basis for the affected
facility, the commenter indicated that it does not appear that there
would be a significant difference in leak detection and repair costs
between the "process unit" definition and the "individual  component"
definition of affected facility.  This commenter also stated that he
found no evidence in the preamble or the BID for the proposed standards
for EPA's assertion that the "process unit" definition  of affected
facility would achieve as much emission reduction as the "individual
component" definition.  The commenter believed that as  individual
components are added to a unit, they are covered earlier and achieve
further emission reductions than fugitive emission sources within
process units, which are not covered by the standards until  the entire
unit is replaced.
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 Response:
      In  selecting the basis for the affected facility, EPA considered
 the effects of keeping track of individually covered sources.  As
 discussed in the preamble to the proposed standards, components in
 existing plants would be replaced one at a time and, therefore, would
 be covered by the standards one at a time.  Because components in
 existing plants are infrequently replaced, many adjacent components
 would not be covered by the standards.  This would mean that a plant
 would be required to inventory all  the components in a plant and then
 keep track of all activities for each component.  Even though individual
 components could be color coded or tagged, EPA believes that the effort
 to keep track of and record activities for a mixture of individual
 components within a plant would be tedious and costly.  In addition, as
 discussed below, EPA believes that this effort would not likely result
 in additional  emission reductions,  in particular, during earlier
 implementation of this approach.  In contrast to the recordkeeping
 effort for individually covered sources, the effort for components
within process units would be less and would still  result in more
 immediate emission reductions.   Thus, EPA judged that maintaining, an ,,r
 inventory of individual  components for an entire plant would be unreasonably
 burdensome, but maintaining an  inventory for compressors or evaluating
components occasionally within  process units would not be unreasonably
 burdensome.
     The commenter appears to have  misunderstood the techniques used to
 determine the  cost effectiveness for leak detection and repair programs.
The costs incurred for implementing such a program include fixed costs,
 for example, the monitoring instrument and calibration costs which  are
shared by the  components monitored.  The fixed costs can be unreasonably
high if only a few components are monitored.  Additionally, EPA costs
are based on a specific time required for monitoring each component.
These monitoring times are based on the normal  physical  distribution of
components in  petroleum refining process units.  If only a few components
 scattered throughout a plant are monitored, the time required per
component would be greatly increased.  These monitoring costs would be
 unreasonable until  enough components would be covered within a certain
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area of a plant.  This area may be smaller than a process unit but not
significantly smaller than a process unit.
     In response to the commenter's concern about emission reductions,
EPA attempted to select a basis for the affected facility definition
that would provide the largest emission reduction that is reasonable.
As discussed above, EPA most seriously considered two approaches in
defining the affected facility—the individual  "component" approach and
the "process unit" approach.  The largest emission reductions are
usually associated with a component basis.  However, for these standards
the difference between emission reductions of the component and process
unit approaches are unclear.  Based on the "component" approach all new
components—covered by the standards—and all replaced components would
be affected by the standards.  A modified component would be unlikely.
[The replaced components would be scattered throughout the plant and
would become affected by the standards one at a time as existing components
are replaced.]  In contrast, under the process unit approach, all new
components within "new" process units would be covered by the standards,
but individually replaced components would not be covered.  Most
importantly, many components (not actually increasing emissions or
being replaced) in modified process units or reconstructed process
units would be covered ("captured") based on the "process unit" approach.
     The difference between the emission reduction potential for the
two approaches can be based on the difference in the number of individually
replaced components and the number of components that are "captured" in
modified or reconstructed process units.  EPA believes that, in this
case, the numbers are similar.  However, there is no reliable procedure
to approximate these numbers.  Based on EPA's belief that the emission
reductions between the component approach and the process unit approach
are similar and based on the burden associated with maintaining records
of individual components for an entire plant, EPA selected the process
unit as the basi.s of the affected facility for all the equipment covered
by the standards except compressors.
Comment;
     Three comments were received concerning the designation of compressors
as a separate affected facility.  One commenter (IV-D-10) supported
compressors as a separate affected facility; however, others (IV-D-5
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 and IV-D-12) maintained that when compressors are an integral  part  of  a
 process unit they should be considered part of the "process  unit"
 affected facility.   When compressors are not considered  an integral
 part of a process unit, they should be considered separately.  Also,
 commenters said designating compressors as  a separate affected facility
 could lead to.confusion and would likely make them subject to  standards
 sooner because they  are often replaced at shutdown.
 Response:
      As discussed in the preamble to the proposed standards, compressors
 (unlike other  fugitive  emission  sources  in  petroleum  refineries) are
 major pieces of equipment and are readily identifiable.  Since compressors
 are  relatively  few in number,  tracking  of those subject  to NSPS requirements
 and  those  not  subject to  these requirements  would not be difficult.  As
 mentioned  above,  there  is a  presumption  that the  narrowest definition
 of an  affected  facility  is  proper unless there is  a statutory  factor
 that leads  EPA  to a  less  narrow  definition.   Commenters  did not present
 any  of  these factors.  The  fact  that compressors  are  integral  to the
 process  unit does not preclude EPA from defining them as separate
 affected facilities.  By extension, the commenter's reasoning would
 prohibit EPA from defining different emitting sources within  a plant as
 separate affected facilities because they are integral to the plant.
 It is clear, however, that EPA has authority  under Section 111 to define
each as a separate source.  Moreover, EPA has often chosen such plant
subsets as separate affected facilities.  (For example, see Subpart Da
of 40 CFR Part 60 — each boiler at the utility station is a  separate
affected facility).  Focusing on whether equipment is integral  to a
process simply is not helpful or relevant to the selection of the
affected facility for purposes of standards  of performance.
     It should be noted that by making compressors a separate affected
facility, compressors are not likely to be covered by modification
provisions.  However, as one of the commenters stated, when a compressor
is refurbished or replaced it would likely be a reconstruction  and,
therefore, covered by the NSPS.  EPA considers this appropriate.   EPA
considered the comments received regarding designation of compressors
as separate affected facilities and concluded that the designation
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should remain for the same reasons originally stated in the preamble to
the proposed standards.
Comment:
     One commenter (IV-D-10) recognized that the definition of process
unit includes flexibility and that determinations of an affected facility
may be on a case-by-case basis.  The commenter wrote that the identity
of a "process unit" is not always clear or equally transferable from
one refinery to another.
Response:
     EPA agrees with the commenter that there will be differences in
"process unit" affected facilities, even among processes producing
the same petroleum product.  Thus there is flexibility in the definition
of process unit.  These differences are mainly caused by differences in
design and construction of process units.  Typically, equipment within
a process area is functionally related and associated with a single
process unit.  However, some equipment pieces (generally, very few)
within an area may be functionally associated with a second process
unit that is not located in the area.  Hence, equipment function will
be a determining factor as to which process unit it is considered to be
in.  When a piece of equipment can function in more than one process
unit, its location will be a determining factor.  It should be noted that
owners and operators may request EPA to review plans for construction
or modification for the purpose of obtaining technical advice, as
provided in the General Provisions of Part 60 (40 CFR 60.6).
3.2  DEFINITION OF "IN VOC SERVICE"
Comment:
     Several commenters (IV-D-6, IV-D-8, IV-D-16, IV-D-21, and IY-D-24)
requested that the definition of "volatile organic compound (VOC)"
specifically state which organic compounds are excluded.  It was also
recommended that the definition include the phrase, "or as measured by
the applicable test methods described in Reference Method 21."
Response:
     Volatile organic compounds (VOC) are defined as organic compounds
that participate in photochemical reactions.  Any organic compound is
presumed to participate in atmospheric reactions unless the Administrator
determines that it does not.  EPA considers several organic compounds
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 to  have  negligible  photochemical  reactivity.  These are methane, ethane,
 1,1,1-trichloroethane, methylene  chloride, trichlorofluoromethane,
 dichlorodi f1uoromethane, chlorodi f1uoromethane, tri f1uoromethane,
 trichlorotrifluoroethane, dichlorotetrafluoroethane, and chloropenta-
 fluoroethane.
      The standards  provide  for the exclusion of substances considered
 non-photochemically reactive by EPA from the percent VOC in the process
 fluid when  determining whether a  piece of equipment is not in VOC
 service.  The purpose of this is  to avoid covering those sources that
 have  only small amounts of  photochemically reactive substances in the
 line  and to  establish the standards consistent with the data base.
 In  determining whether the  VOC in a process line is less than 10 percent
 of  the total mass in the line {as a prerequisite to determining that a
 piece of equipment  is not in VOC service), quantities of compounds
 present  in the line that are considered nonphotochemically reactive by
 EPA may  be excluded from the total quantity of organic material.
      Section 60.595(d) of the standards requires that VOC content is to
 be  determined by the referenced ASTM methods,  not by Reference Method 21,
 The referenced ASTM methods can be used to distinguish among compounds
 and, therefore, allow the determination of the amount of photochemically
 reactive compounds in a process stream.  In contrast,  Reference Method 21
 is  a method  for determining leaks.  This method requires that monitors
 used in complying with the  standards respond to  the organic compounds
 in  the process streams.  Thus, there is no reason to include the phrase
 requested by the commenter.
 Comment:
     Several commenters (IV-D-8,  IV-D-12, IV-D-18,  IV-D-21, IV-D-22, and
 IV-D-24)  requested that the proposed definition  of "in VOC service" be
 revised.   The commenters  suggested raising the weight percent cutoff
 from 10 to 20 weight percent VOC to exclude coverage of hydrogen service
compressors and to provide more reasonable operating flexibility.
Excluding 75 volume percent or greater hydrogen  streams and changing
the 10 weight percent VOC to 10 volume percent VOC  were also recommended.
The commenters contend that such  streams would have a  lower percentage of
VOC and,  consequently, the controls would achieve lower VOC emission
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reductions and have a higher cost effectiveness ($/Mg VOC  emission
reduction).
Response:
     The commenters are suggesting that EPA exempt equipment that,
because they contain so few VOC, are not cost effective  to control.
In response to this comment, EPA analyzed the control of valves
and compressors in hydrogen service (Document No. IV-B-9).  Most
process streams affected by the standards are clearly above 10 weight
percent VOC, and many are nearly 100 weight percent VOC.  Process  streams
less than 10 weight percent are almost always much less  than 10 weight
percent VOC.  Only a few process streams may be near 10  weight percent
VOC, and these are generally those that would be considered in hydrogen
service.  Thus, EPA analyzed the control of equipment that, based  on
EPA's data, could be found in hydrogen service.  This would allow  EPA
to exempt control of equipment if it is not cost effective.  In hydrogen
service is defined as greater than 50 volume percent hydrogen based on
EPA's data.  The analysis is explained in docket item IV-B-9.  Emission
reductions are achieved for valves in hydrogen service at reasonable
costs ($106/Mg VOC).  However, application of equipment controls for
compressors in hydrogen service results in a cost effectiveness of
$4,600/Mg VOC.  EPA, therefore, decided to exclude compressors in
hydrogen service from the standards.
     In EPA's judgment, determination of-VOC content in a given stream
is a routine analytical procedure.  The test method, ASTM E-260, gives
quantitative measures of each component proportional to their concentration.
Hence, the results are expressed as a weight percent.  The commenter
recommending that the VOC content expressed in weight percent be changed
to a volume percent did not provide any basis for this change.  Hence,
EPA maintains that the VOC content expressed in weight percent is  a
reasonable approach.
Comment:
     Another commenter (IV-D-21) remarked that the definition of VOC
fails to establish a de minimi's level for volatile materials which do
not contribute to atmospheric emissions.  A "heavy liquid" definition
was considered necessary because it would avoid unnecessary monitoring of
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  components processing materials  that are  unlikely  to  register a 10,000 ppm
  concentration.
  Response:
       The  definition  of VOC  does  not  exclude compounds based on volatility.
  Processes  that  produce relatively non-volatile products can involve
  high  temperature  and pressure conditions, thus producing emissions of
  VOC.  These VOC contribute  to ozone  formation.  A de minimis level
  would not  be appropriate.   EPA has tailored the standards (in part,
  based on volatility)  to require the best demonstrated technology.   As a
  consequence, EPA concluded  that routine leak detection and repair is
  not warranted for components in heavy liquid service because they  have
  low leak rates and, as a group, control is not cost effective (Docket
  No. IV-B-5).
      Heavy liquid streams are generally a mixture of heavy hydrocarbons
  (e.g., crude oil)  with very little light hydrocarbons.   Nevertheless,  these
 streams have the potential  to leak VOC (determined  by  concentrations  in
 excess of 10,000 ppm), and  these  VOC  would contribute  to ozone formation.
 Data reviewed  by EPA  (Document No.  II-A-19)  show  that  a  few  components
 in heavy liquid  service do  have emission concentrations  greater than
 10,000 ppm and,  therefore,  do leak emissions of VOC.   When these leaks
 occur, repair  is cost effective (Document  No.  IV-B-5).   If an operator
 sees,  hears, smells,  or otherwise  suspects a leak,  it  is appropriate
 that the component be monitored and,  if a  leak exists based on a greater
 concentration, that it be repaired.
 Comment:
     One commenter (IV-D-12)  supported the proposed definition for
 "light liquids" as it  agrees  with findings in their fugitive emissions
 program; however, another (IV-D-17) held that the definition was too
 restrictive and should  include only the heavy naphthas and lighter
 materials because as defined, some equipment in light liquid service
 would  not significantly contribute to fugitive emissions.  Excluding
 compounds with a Reid Vapor Pressure (RVP)  less than 1.5  psi  was
 recommended.
 Response:
     The criterion used by EPA for the light  liquid  definition
 (that is, liquids with a vapor pressure greater than that of  kerosene)
was based on fugitive  emission data gathered  in petroleum refinery
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studies (Document No. II-A-19).  Equipment processing VOC  with vapor
pressures greater than kerosene were found to leak at significantly
higher rates and frequencies than equipment processing VOC with  vapor
pressures of kerosene or lower.  Therefore, EPA decided to exempt
equipment processing VOC substances with vapor pressures lower than
about the vapor pressure of kerosene from the routine leak detection
and repair requirements of the standards.  This is consistent with the
commenter's request to cover only heavy naphthas and lighter compounds.
     The RVP cutoff of 1.5 psi that was recommended by the commenter is
based on California regulations for the storage of volatile organic
liquids which are at ambient pressure and temperature.  There are no
data to support the 1.5 psi cutoff as it would apply to fugitive emission
sources.  EPA considers control of equipment in light liquid service
(based on the proposed definition) cost effective; therefore, based
on these considerations, EPA did not revise the definition of light
liquid service.
3.3  EXCLUSIONS
Comment:
     One commenter (IV-D-13) stated that process units with in-place
state-of-the-art hydrocarbon gas detection systems should be exempted.
This commenter requested that units in an arctic environment be  exempted
because of several unique aspects of refining in the North Slope of
Alaska.  For example, (1) the products are used locally, (2) process
units are totally enclosed at a high cost because of the harsh environment;
therefore, present safety controls (gas detector placed near exhaust
fans with an alarm set at 12,500 ppmv) are adequate and additional
requirements are unwarranted, (3) requiring rupture disks ahead  of
pressure relief devices would compromise safety especially under this
application, (4) repair labor is 2 1/2 to 4 times more costly, and  (5)
control of VOC has limited benefit in attainment areas, especially in
the arctic where cold ambient temperatures, the degree of insolation,
and a low concentration of photochemical precursors limit ozone
formation.
Response;
     The presence of an in-place state-of-the-art hydrocarbon gas
detection system does not necessarily ensure emission reductions. Gas
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 detection systems set for 12,500 ppm would permit VOC to be emitted
 without notice.  Several megagrams of VOC would be released to the
 atmosphere annually without the use of specific control  techniques like
 those required by the standards.  The commenter did not demonstrate that
 their system resulted in at least equivalent emission reductions as
 the standards.  Upon request by EPA, the commenter explained the specific
 control  techniques used at their plant,  many of which are identical  to
 those required by the standards.  Based  on EPA's experience, gas detection
 systems  alone are ineffective for reducing equipment leaks of VOC.
 Thus, EPA has not exempted process units using these systems from the
 standards.   The final  standards do,  however,  allow an existing control
 program  to  be continued if EPA determines that the program is at least
 equivalent  to the requirements of the standards.
      EPA has  studied the commenter's concerns  and  acknowledges that
 there are several  unique aspects to  refining  in the North Slope of
 Alaska.   Accordingly,  EPA concluded  only that  the  costs  to  comply with
 the routine  leak  detection and repair requirements of the proposed
 standards may be  unreasonable.   These operations incur higher labor,
 administrative, and  support costs associated with  leak detection  and
 repair programs,  because (1)  they are located  at great distances  from
 major population  centers,  (2)  they must  necessarily  deal  with  the long
 term  extremely low temperatures  of the arctic,  and consequently  (3)
 they  must provide extraordinary  services  for plant  personnel.  These
 unique aspects make  the  cost  of  routine  leak detection and repair
 unreasonable  (Document Number  IV-B-15).  Therefore, EPA has decided
 that  refineries in the North Slope of Alaska are exempt from the routine
 leak  detection and repair  requirements of the  standards.  This exemption
 does  not include the equipment requirements in the standards because
 the cost of those requirements is reasonable.
 Comment:
     One commenter (IV-D-26) recommended that the definition of "petroleum
 refinery" be clarified to exclude production and intermediate .facilities
 such  as wells, drill pads and separation tanks, that may be involved in
onsite processing in oil fields.  Similarly, another commenter (IV-D-3)
requested that the definition of "petroleum" be revised to clarify that
coal tar  and refined coal tar oils that are by-products of coking
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processes are not covered in these standards because they  are  not
covered under Subpart J.
Response:
     In Section 60.591 (Definitions), the proposed standards defined
"petroleum.refinery" as "any facility engaged in producing gasoline,
kerosene, distillate fuel oils, residual  fuel oils,  lubricants,  or
other products through the distillation of petroleum, through  the
redistillation, cracking, or reforming of unfinished petroleum deriva-
tives."  This definition does not include production and intermediate
facilities found in oil fields, nor does it include production tar and
tar oils from coal  coking processes.  The standards apply only to
process units within petroleum refineries.  New source performance
standards (NSPS), however, are being developed by EPA for the  natural
gas processing industry under another standards development project
(40 CFR Part 60 Subpart KKK - Standards of Performance for Onshore
Natural Gas Processing Plants:  Equipment Leaks of VOC).  The  natural
gas processing industry NSPS may cover fugitive emission sources at
production, and will more likely cover them at intermediate facilities.
EPA has consistently used the term "petroleum"; it does not mean tar
and tar oils from coal coking processes, but it does mean synthetic
petroleum products from processes that use coal as a raw material.
Thus, EPA has not clarified the term "petroleum."  It should be noted
that the production of some chemicals (for example, formaldehyde or
phenols) at coal coking processes, however, is covered by NSPS for the
synthetic organic chemical manufacturing industry (Subpart VV).
Comment;
     Another commenter  (IV-D-8) maintained that the results of a number
of studies support a complete exemption for equipment in low vapor
pressure service.  The commenter noted that an EPA study (see Document  No.
II-A-41, p. 2-38) of two refineries in the South Coast Air Basin had
monitored 664 components in light and heavy liquid service (which  were
exempt from South Coast Air Quality Management District rules) and
found  only four  leaking components, none of which was in heavy liquid
service.  Another study found only one leaking valve out of 519 in
heavy  liquid service and only 3.8 percent of the pumps leaked.  Another
commenter  (IV-D-15) supported excluding pumps in heavy liquid service,
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 pressure relief valves in light liquid service,  flanges,  and  connections
 from routine monitoring.
      Another commenter (IV-D-21)  wrote,  however,  that  there is  no
 demonstrable cost effectiveness to  the inclusion  of  pumps and valves in
 heavy liquid service,  pressure relief devices  in  both  light and heavy
 liquid service, and flanges  and other connections, and further, these
 sources should be exempt  from  all requirements as indicated by EPA at
 the National  Air Pollution Control  Techniques Advisory Committee (NAPCTAC)
 meeting on  June 3,  1981.
 Response:
      The commenters  suggest  that  certain types of equipment leak so
 infrequently  that it is not  cost  effective to monitor  them for leaks.
 The final standards  for pumps  in  heavy liquid service, pressure
 relief devices  in  light liquid  service, flanges, and connections exempt
 these sources  from routine leak detection and repair because of the low
 leak  frequency  and emission  factor  for these sources as discussed at the
 June  1981 NAPCTAC meeting.   However, the commenters have suggested no
 reason  that this  equipment,  if  found to be leaking, cannot be  repaired
 cost  effectively.  EPA has determined that it is cost effective to
 repair  these components if they are leaking (see Document No.  IV-B-5).
 Therefore, Section 60.592-8  provides that if evidence of a potential
 leak  is  found, the piece of  equipment must be monitored within 5 days,
 and repaired as soon as practicable within 15 days if an instrument
 reading  of 10,000 ppm or greater is detected.
 3.4  SMALL REFINERS
 Comment:
     Commenters (IV-D-9 and IV-D-23) accused EPA of incorporating  into
 the standards a bias against small refiners.   They asserted  that small
 refiners will be affected more adversely than will large  refiners.
There is a bias, they reason, because EPA did not analyze  the  comparative
 impact of the standards on large versus small refineries.  The comparative
 analysis was not done because EPA, citing elimination of the crude  oil
entitlements program, decided that relatively little  new  unit  construc-
tion will occur at small  refineries, and even considering  modified  and
 reconstructed units,  few small  refineries would be subject to  the
standards. Thus, the commenters claim, EPA saw no  reason to  give small

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refineries special attention under the Regulatory Flexibility Act.
Therefore, a bias exists.  One commenter (IV-D-9) said some small
refineries have existed for more than 40 years and are viable without
subsidy programs.  Thus, both commenters conclude, EPA should have
analyzed the differential impact of the standards on small refineries
compared with large ones.
Response:
     To analyze the economic impacts of the standards, EPA defined  12
types of refinery units:  crude distillation, hydrotreating, isomeri-
zation, etc.  (See BID for the proposed standards, Document No. III-B-1)
Each type was assigned to one of three model unit categories.  Model
Unit A has a small number of pumps, valves, and other components; Model
Unit B has a larger number; and Model Unit C has the most.  Assignment
of each type of unit to  a particular model unit category was based on
equipment counts  averaged over units found at a range of refineries.
EPA then assumed  a reasonably small throughput (which might be repre-
sentative of some small  refineries) for each type of unit, because
small-throughput  units would show significant adverse economic impacts
much more readily than large-throughput units would for any given
amount of money to be spent on controlling fugitive leaks.  If the
analysis had revealed potential, adverse economic impacts, EPA would
have intensified  its examination of the units involved, and possibly
would have changed the standards appropriately.  However, no such
impacts were projected.  EPA concluded that no adverse economic impacts
would result from the standards and that there was no need to extend
the economic analysis to cover a wider range of throughput levels.
     The Regulatory Flexibility Act (Public Law 96-354, September 19,
1980) requires that special consideration be given to the impacts of
standards on small firms.  As one criterion for extending loans and
related  assistance, the  Small Business Administration defines a small
petroleum refining firm  as one employing fewer than 1,500 workers (13
CFR Part 121, Schedule A).  The 1,500 number applies to the entire
firm, including  affiliates, and is tied in with other criteria relating
to throughput capacity,  exchange agreements, and the like.  EPA accepts
this definition  of a small refiner.  Based on this definition, EPA
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projected few small firms would be affected by the standards.  However,
even for those affected by the standards, EPA concluded that the impacts
would be reasonable.
     The commenters implied that small process units or refineries may
be owned by small firms.  However, there are no available data that
relate the size of refining firms (number of employees, throughput,
etc.) to the size of their individual refinery units (number of valves,
pumps, etc.).  In addition, there is no reason to believe that the size
of a refining firm is necessarily related to the size of its individual
refinery units.  EPA, therefore, has no basis to suspect that small
firms will  bear greater compliance costs than large firms on an affected
facility-by-affected facility basis.  In fact, the impacts are similar
for all  sizes of units.  The three model units differ only in regard to
their respective equipment counts.  Compliance costs for Model  Unit A,
the smallest, are lower than compliance costs for Model Unit C, the
largest.  Even though the cost effectiveness for Model  Unit A is larger
than it is  for Model  Unit C.  However, these cost effectivenesses are
not significantly different.  The commenters offered no evidence that
the sizes of their units, measured either by throughput or by equipment
counts,  will cause the impact of the standards to fall  disproportionately
on small firms, or that small  firms will become non-competitive, or
that small  firms will be forced to raise prices substantially.
     EPA's  projection that relatively few units at small  refineries will
be affected by the standards by 1987 is still  valid.  If, for some
reason not  now anticipated, the standards were to place a disproportionate
burden on small refineries, the 1987 projects indicate that comparatively
few such refineries would experience that burden and, more importantly,
the cost estimates indicate that none of those refineries would experience
unreasonable costs.  [EPA regrets that its statement may  have been
interpreted by the commenters  as a bias against small refiners.]
Comment:
     One commenter (IV-D-22) remarked that economic conditions  in the
refinery industry have changed drastically since 1980,  that the projected
number of affected facilities  is now too high, and that the benefits
of the proposed standards, therefore, are overstated.
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Response:
     EPA projected that 100 new and 182 modified or reconstructed units
would become affected facilities during the first 5 years of implemen-
tation of the standards.  The commenter offered no alternative
projections to supplement the claim that 282 units are too many.   There
are three reasons why EPA believes the projections should not be changed.
     First, the projections in no way affect the need for standards or
the selection of the final standards.  The projections are offered only
as a guide for understanding the future aggregate costs and emission
impacts of the standards.  Ideally, the projections should be conservative.
However, being conservative requires EPA to project minimal growth when
estimating emission impacts, and to project maximal growth when estimating
aggregate costs to the nation.  Low projections can understate possible
economic costs, but high projections can overstate emission savings.
The middle ground reflects EPA's best judgment, considering these two
conflicting uses for the projections.  Furthermore, if all projected
growth does not occur by the end of the fifth year, it will occur
sometime shortly thereafter.
     Second, the projections were made for the calendar years 1982
through  1986.  For reasons unforeseen when the projections were prepared,
the  proposal of the  standards was delayed a year.  This means that the
projections  should now  be  interpreted as applying  to  the years 1983
through  1987.  This  shift of  1 year moves the  projection  interval
completely out of the 1981-1982 economic downturn  that the commenter
believes caused the  projections to be overly optimistic.   As  general
economic recovery proceeds, there is every reason  to  believe  the recovery
will  be  felt throughout the refinery industry.
      Third,  the projection methodology used by EPA excludes modification
and  reconstruction at refineries with crude distillation  capacity under
2,226 m3 (14,000  bbl) per calendar day.  This  exclusion was made as a
way  of accounting for the possible effect  of elimination  of the crude  oil
entitlement program.  Nevertheless,  two commenters (IV-D-9 and IV-D-23)
representing small refiners complained that there  would  in fact be more
modification and  reconstruction than EPA projected.   Thus, there is an
indication that  the  projections are, if anything,  too low in  this area.
      For the above reasons, EPA is not revising  the projection of new,
modified,  and reconstructed refinery units.
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                           4.0  MODIFIED SOURCES

  4.1  EMISSION  INCREASE
.  Comment:
       A number of commenters (IV-D-14, IV-D-15, IV-D-16, and IV-D-21)
  requested that the EPA allow an increase of a de minimis level  of
  emissions b'efore an existing facility would be considered to have
  modified.  De minimis values of 5 tons per year and 40 tons per year
  (as in  40 CFR 51.18(j))  were suggested by the commenters.
  Response:
       Under the definition  in Section  lll(a)(4),  any physical  or
  operational  change  resulting in  an  increase in  emissions constitutes  a
  "modification."   EPA  has exempted  certain small  emissions increases
  from  consideration  in deciding whether there  has  been  an increase in
  emissions constituting a "modification" for purposes of  PSD  applicability
  (40 CFR 52.21(b)(2) and (b)(231)).  This  action  followed the decision   .
  in Alabama  Power  Co. v. Costle.  636 F.2d  323  (D..C.  Cir.  1979),  in which
  the D.C.  Circuit  held that EPA has authority  to interpret the definition
  of "modification" so as to exempt sources with small emissions  increases
  from PSD  review on grounds of administrative  necessity (ld_. at 400).
      The Alabama Power decision does not  require EPA to  provide a de
 minimis  exemption from application of the "modification" deflnltlorTfor
 NSPS applicability purposes.  Nor has EPA's experience in implementing
 the NSPS program suggested  an administrative need for relieving existing
 sources  from NSPS applicability when they undergo changes resulting  in
 only a small increase  in  emissions.   This  differs somewhat from EPA's
 implementation of the  definition  of "modification" for  'PSD applicability
 purposes.   In that area,  the Agency  has determined that the administrative
 burden of  applying the full  preconstruction review process to a  source
 with only  a small  emissions  increase may be unreasonable  (45 FR  52705;
 August 7,  1980).   The  administrative burden associated  with  the  NSPS
 program, however,  is relatively minimal.   In contrast to  PSD requirements,
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NSPS's are categorically applicable technology-based requirements only;
they do not involve an assessment of ambient effects and do not require
case-by-case review.
     Furthermore, EPA believes that the current straightforward
application of the "modification" definition for NSPS purposes best
serves Section Ill's intent.  One key purpose of the NSPS program is to
prevent new pollution problems from arising.  One way that the statute
seeks to achieve this is by requiring application of the best demonstrated
technology at, and thereby minimizing emissions from, existing facilities
with increased emissions.  The current NSPS approach of not providing
an exemption from the "modification" provision based on the size of
the emissions sources is not intended to cover existing plants making
routine and minor additions.  The "modification" provisions in the
General Provisions of 40 CFR Part 60 exempt changes such as additions
made to increase production rate (if they can be accomplished without
capital expenditure, as defined in the General Provisions) and routine
replacements (40 CFR 60.14(e)).  In addition, these standards would
exempt additions made for process improvements if they are made without
incurring a capital expenditure.
Comment;
     Other commenters (IV-D-8 and IV-D-14), concerned about the complexity
of the modification provisions, endorsed revising the modification
provisions such that a modification occurs when the number of components
exceeds 10 percent of the total number of the same type and there is a
net increase in emissions from the process unit.
Response:
     As discussed in Section 4.2, EPA is promulgating an alternative
procedure that will reduce the complexity of the modification provisions
(in particular, how to determine a capital expenditure).  In EPA's view
40 CFR 60.14 of the General Provisions adequately specifies the categories
of changes to an existing facility that should bring the facility under
NSPS as a "modified" source.  It should be noted that, under Section
60.14(e), certain changes made in an affected facility without a capital
expenditure are not considered "changes in operation" by EPA and,
therefore, are not modifications." See, e.g., 40 CFR 60.14(e)(2)--
production rate increases.
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     As proposed in the standards, certain changes (process improvements)
made in an affected facility without a capital  expenditure are not
considered "changes in operation" by EPA and, therefore, are not modi-
fications.  This generally excludes coverage from industry practices
that involve adding a few valves and maybe a sampling system and making
other minor changes in equipment configurations.  The 10 percent increase
in the number of fugitive emission components as suggested by the
commenter, would most likely be associated with a VOC emissions increase
of about 10 percent.  Making such a change would likely be associated
with capital expenditure and, therefore, EPA considers this a modification,
Therefore, EPA did not revise the modification provision as requested.
Comment:
     Another commenter (IV-D-8) maintained that once a "modification"
has occurred, the NSPS requirements should be applied only to those
types of components which trigger the definition of modification.
Response:
     Under Section 111 of the Clean Air Act, the application of
modification is inextricably tied to the designation of "new source,"
or in NSPS terminology, an affected facility.  Section lll(a)(2) defines
the "new source" subject to NSPS as a source on which modification has
commenced after proposal, not the portion of the source actually changed.
Stated differently, modification provisions are triggered with respect
to the affected facility; therefore, applicability is to all components
affected by the standards within the affected facility.  The commenter
is implicitly requesting EPA to define the affected  facility as a group
of one type of equipment within a process unit.  EPA, as discussed in
Section 3.1, reasonably concluded that affected facilities  to which the
standards apply should remain:   (1) the group of all fugitive emission
sources (pumps, valves, sampling connections, pressure  relief devices,
and open ended lines) within a process unit and (2)  compressors.
4.2  CAPITAL EXPENDITURES
Comment:
     Commenters requested that the  capital expenditure determination
(as it  relates to the modification  provisions) be revised  so that it is
more practicable.  Commenters  (IV-D-8 and IV-D-15) remarked that the
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capital expenditure guidelines are outdated and would be difficult to
use because units have been substantially rebuilt over the years and
records of costs for determining the cost basis may be kept on a process
unit basis rather than for individual pieces of equipment, or simply
may not exist.  It is, therefore, very difficult to reconstruct original
costs.
     In support of their concern about using original costs, the commenters
stated that, based on EPA's current interpretation of capital expenditure,
1 to 3 percent of the current replacement costs would subject units to
modification.  Another commenter (IV-D-14) claimed that component costs
represent 5 percent of the total original costs and that the addition
of a new pump with several valves could easily exceed the "capital
expenditure" definition.  This commenter provided the hypothetical
example of a unit with a total original cost of $16 million and component
cost of $815,000.  The addition of a pump with several valves would
exceed 4 percent of the total component costs, around $56,000.
     One commenter (IV-D-10) suggested that replacement costs rather
than original costs be used to determine the basis for capital expenditure.
A few commenters (IV-D-4, IV-D-15, and IV-D-16) suggested that capital
expenditure be defined as 7 percent  of the replacement cost  (based on
the Chemical Engineering Construction Index or other suitable index) of
an affected facility  at the time of  process improvement.-
Response:
     After reviewing  the comment letters concerning  the difficulties
with using the capital expenditure definition, EPA agrees that the
definition for capital expenditure may be difficult  to use for some
refineries.  Accordingly, EPA decided to provide an  alternative to
the procedures in  the General Provisions.  Although  the implementation
of the capital expenditure definition has been made  more  practicable,
the original  intent of the definition has been maintained.
     The  alternative  uses an adjusted annual asset guideline  repair
allowance (AAGRA)  and the replacement costs to determine  capital
expenditure.  The  adjusted AAGRA is  determined by a  formula  and is
based  on  a  ratio that reflects  inflation of costs over the last several
years.  The  adjusted  AAGRA is multiplied by the replacement  costs of
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 the equipment within the facility to determine the value of a capital
 expenditure.
      The burden associated with using the capital  expenditure definition
 in the proposed standards was not quantified by the commenters;  however,
 if some of these problems can be resolved without  changing  the application
 of the modification provisions, EPA finds no reason not  to  do so.
 Accordingly, EPA is providing an alternative method to the  General
 Provisions.
      As mentioned above,  the alternative  method for determining  capital
 expenditure  enables refiners to use replacement costs rather  than
 original  costs.   An inflation index can be applied  to the replacement
 value of an  affected facility to approximate the original cost basis of
 the affected facility.  The  relationship  between replacement  and original
 costs has  been determined (Document Nos.  IV-B-4  and IV-B-14)  as:
           Y = 1.0  - 0.575 log (X),  where:
           Y = the  percent of the  present  replacement cost which is
               equivalent to  the original  cost,  and
           X = the year of construction.
 Using  the  above  equations and the  annual asset guideline repair allowance
 (AAGRA) of 7  percent (see IRS  Publication 534, page 20),  capital  expenditure
 can be expressed  in  replacement  dollars as:
           Capital Expenditure =  R x Y x 0.07, where:
           R = existing facility replacement cost.
     Another alternative method that was considered is  similar to that
 of the first in that an inflation index, Y (as defined  above), and the
AAGRA basis of 7 percent are used to allow refiners to  use replacement
costs.  However, this second alternative would also allow refiners to
use the cost of the entire process unit rather than the affected  facility
 (the fugitive emission components).  The second alternative  would
reduce the number of units that would use  a detailed costing of equipment.
However, the equipment covered by the standards represent a  variable
portion of the total costs of all the equipment in  a process unit.
Therefore, it is not practicable to assign a single percentage that
would reflect the modification costs contributed by fugitive emission
pieces.  Thus, EPA is not adopting this alternative.
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     Even though EPA was unable to establish an alternative that would
allow refiners to use the cost of the entire process unit, EPA would
consider estimations from refiners that clearly show that an expenditure
would be less than the quantity associated with a capital expenditure.
There may be a variety of ways that these estimations can be ma.de.   For
example, a refiner may have proof that in certain units 5 percent of
the total replacement value at the process unit is the value of the
equipment covered by the standards.  If an estimation clearly demonstrates
its results, EPA could quickly decide whether a process improvement
involves a capital expenditure.  Based on the example, if the value of
the process improvement may be 0.04 percent of the replacement value of
the process unit, this would be clearly less than 12.5 percent of
5 percent of the value of the total unit.  If an estimation does not
clearly show its results, then the time and effort required by EPA in
evaluating the estimation would not provide the owner or operator a
quick response and, therefore, a more-detailed costing of equipment
(either by estimating replacement or accounting existing equipment)
would be the owner or operators best approach.  If EPA can judge easily--
through review of a clear demonstration that a process improvement does
not involve a capital expenditure, it will do so.  In contrast, if
EPA's review raises concerns or questions, EPA will  reject the estimation
unless further convincing support is presented.
Comment:
     One commenter (IV-D-8) wrote that the General Provisions exempt
"process improvements" from being considered modifications if made
without incurring a capital expenditure; however, using the proposed
definition of "capital expenditure" limits the exemption.  Another
commenter (IV-D-21) recommended deleting the modification provisions
which require that process improvements be accomplished without a
capital expenditure.
Response:
     The General Provisions do not include a "process improvement"
exemption.  However, in the proposed standards EPA stated its intent
that minor modifications would not be covered by the standards: "addition
or replacement of fugitive emission sources for the  purpose of process
improvement which is accomplished without a capital  expenditure shall
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 not by itself be considered a modification under this subpart."  The
 capital expenditure criterion was included so that minor process
 improvements in a process unit that cause an increase in emissions
 would not subject an existing facility to this NSPS.  After reviewing
 these comments, EPA has maintained the same exemption.  EPA considers
 any increase in emissions that results from a process improvement with
 a capital expenditure a "modification" unless one of the other exceptions
 in the General Provisions applies.
     It should be noted that any potential emission increase that results
 from changes in operation that require the addition of a few fugitive
 emission sources could be offset or nullified by controlling existing
 equipment or installing components with no fugitive emissions.  Accordingly,
 there would be no modification in such a case even if the emissions
 occurred with a capital expenditure.  The standards do not require that
 process improvements be made without a capital  expenditure.  They
merely provide an exemption when the process improvements are made with
 such an expenditure.
 Comment:
     One commenter (IV-D-30) argued that the "no capital expenditure"
exemption for modifications could be construed by a plant as including,
for example, the addition of fugitive components from existing inventory
of spare parts.  The commenter requested that EPA make it clear that
the addition of equipment already in stock is still considered in
determining a capital  expenditure.
Response:
     As discussed in the response to the previous comment/the capital
expenditure criterion applies to process improvement or production rate
increase exemptions that are considered when determining whether an
increase in emissions at a facility results in  a modification.  This
criterion is used to judge if the activity results in a change in
operation.   As such, a capital  expenditure is determined by what is
added to a process unit, not by what is purchased.  Accordingly, it
makes no difference whether the item was already in stock when the
process improvement occurred.
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4.3  SMALL FACILITIES
Comment:
     Commenters (IV-D-9 and IV-D-23) stated that small refiners more
easily trigger the modification and reconstruction provisions of the
standards than do large refiners.  A small capital expenditure on a
small unit would cause the unit to be classified as "modified" more
easily than the same expenditure would cause a large unit to be so
defined.  Some commenters (IV-D-8 and IV-D-15) also remarked that the
definition of "capital expenditure" would impact small facilities more
severely.
Response:
     The provisions of the standards can be triggered by several different
actions.  Some of these actions are relative changes that are considered
important because they involve a certain percent of the cost of the
unit.  Other triggering actions are absolute changes that are considered
important because they involve an absolute increase in air pollutant
emissions from the existing unit.  Even if the reconstruction and
modification provisions are more burdensome on small refineries, the
overall impact of the standards is still reasonable, however.  If the
commenter's claim is true, then there must be a difference between
units at small refineries on the one hand, and those at large refineries
on the other.  The difference could be related to size, age, ability to
respond to today's changing markets, or myriad other factors.  The
question of unit size, measured by throughput or equipment count, is
discussed in a previous response; the relationship between unit size
and firm size is not clear.  In general, small changes can trigger the
provisions for units with comparatively few pumps and valves.  However,
it is not clear that the capital expenditure criterion would be exceeded
quicker by a small process unit than by a large process unit.  It is
not necessarily true that the cost of a given set of equipment would be
the same for a small and large process unit.  Large process units can
use large equipment or small equipment (the costs of which would be
related, in a very general sense, to the size of equipment) and small
process units can use large or small equipment.  The value of any one
pump in a process unit may be relatively small or large depending on
the specifications in a particular application, not solely on the size
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 of  the pump.  The commenters did not mention specific small refinery
 characteristics that would explain why small refiners might suffer a
 greater burden than large refiners.  Age and obsolescence of equipment,
 the most obvious characteristics, do not appear to be significant
 factors.  There are no data to indicate that units in need of modernization
 are situated predominantly at small refineries.  Even if there are
 differences and small  refineries are disproportionately affected, EPA
 does not consider this unreasonable because EPA believes that the
 standards are appropriate for all existing facilities that become
affected by the standards.
     For these reasons EPA concludes that the modification and reconstruction
provisions of the standards will  not subject small  refiners to unreasonable
adverse impacts.
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                          5.0  RECONSTRUCTION
Comment:
     Several commenters (IV-D-4, IV-D-14, IV-D-15, and IV-D-21) wrote
that reconstruction costs should not be accumulated.  Some commenters
suggested that costs should be considered over a 1-year period.
Response:
     Since in enacting Section 111 Congress did not define the term
"construction," the question arose whether NSPS would apply to facilities
being rebuilt.  Noncoverage of such facilities would have produced the
incongruity that NSPS would apply to completely new facilities, but not
to facilities that were essentially new because they had undergone
reconstruction of much of their component equipment.  This would have
undermined Congress's intent under Section 111 to require strict control
of emissions as the Nation's industrial base is replaced.
     EPA promulgated the reconstruction provisions in 1975, after notice
and opportunity for public comment (40 FR 58420, December 16,  1975),  to
fulfill this intent of Congress.  Since this turnover in the industrial
base may occur independently of whether emissions from the rebuilt
sources have increased, the reconstruction provisions do not focus on
whether the changes that render a source essentially new also  result  in
increased emissions.
     Congress did not attempt to overrule EPA's previous promulgation
of Section 60.15 in passing the Clean Air Act Amendments in 1977.   This
indicates that Congress viewed the reconstruction provisions'  focus on
component replacement,  rather than emissions level, as consistent with
Section 111.  See, e.g., Red Lion Broadcasting Co.  v. FCC, 395 U.S. 367
(1969); NLRB v.  Bell Aerospace Division, 416 U.S.  267 (1974).   Nor has
any Court questioned the Agency's authority to subject reconstructed
sources to new source performance standards.  In fact, in ASARCO v.
EPA. 578 F. 2d 319, 328 n.31 (D.C. Cir. 1978), the D.C.  Circuit suggested
that the reconstruction provisions may not go far enough toward preventing
possible abuses by owners seeking to avoid NSPS by perpetuating the
useful  lives of their existing facilities indefinitely.
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     Finally, coverage under §60.15 of establishing petroleum refinery
facilities comports well with the intent underlying Section 111.   In
such cases, the refurbishment may transform the existing facility  into
an essentially new facility.  A key goal of Section 111 is to enhance
air quality over the long term and minimize the potential  for long-term
growth by minimizing emissions through application of the best demonstrated
technology to new emission sources, concurrent with the turnover of
the Nation's industrial base.  If owners are permitted to replace most
of the equipment in their existing facilities without applying the best
demonstrated technology, they will be installing new equipment without
minimizing emissions and maximizing the potential for long-term industrial
growth, as Congress sought in enacting Section 111.  For this reason,
NSPS coverage of facilities that undergo substantial component replacement
through conversion accords with Section 111, even where some decrease
in emissions results from the conversion.
     EPA  promulgated the reconstruction provisions because failure to
require best control at sources that have become essentially new through
extensive component replacement would have undermined Congress's intent
that best technology be applied as the Nation's industrial base is
replaced.  Failure to  cover facilities that have undergone extensive
component replacement  over  a long period of time similarly postpones
the enhancement of air quality Congress sought under Section 111.  The
D.C. Circuit recognized this when  it expressed concern  in  the ASARCo
case that, absent a provision for  aggregating replacement  expenditures
"over  the years," owners could evade the reconstruction provisions by
continually  replacing  obsolete or worn-out equipment.   578 F.2d 319,
328  n.31  (D.C. cir. 1978).
     Section 60.15 currently defines "reconstruction"  as  the replacement
of  components  of an existing facility to such an extent that "the fixed
capital  cost of the new components" exceeds 50 percent of  the "fixed
capital  cost"  that would be required to construct  a comparable entirely
new facility and EPA  determines  that  it is technologically and economically
feasible  to  meet the  applicable  NSPS.   Subsection  (d)  indicates that
the "new components"  whose  cost  would be counted toward the 50 percent
threshold include  those components the  owner  "proposes  to  replace."  It
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 is unclear under this wording whether a reconstruction has occurred  in
 the case of an owner who first seeks to replace components of  an  existing
 facility at a cost equal to 30 percent of the cost of an  entirely new
 facility and then, shortly after commencing  or completing those
 replacements, seeks to replace an additional  30 percent.   Specifically,
 it is uncertain whether the owner should be  deemed to have made two
 distinct "proposals," or instead a single proposal.
      For example,  assume that a refinery owner refurbishes part of a
 facility and six months later refurbishes other parts of  the facility.
 If the two  actions were interpreted  as  separate "proposals" under
 Section 60.15,  neither might exceed  the 50 percent replacement
 cost  threshold.  Under this general  interpretation, owners could  avoid
 NSPS  coverage under Section 60.15  simply by characterizing their
 replacement projects  as distinct "proposals,"  even where  the component
 replacement is  completed within  a  relatively  short period of time.
      EPA did  not intend, in  promulgating  the  reconstruction provisions,
 that  the term "propose"  exclude  from NSPS  coverage facilities undergoing
 extensive component replacement.   Failure  to  cover these  sources  serves
 to  undermine  Congress's  intent that air  quality be enhanced over  the
 long  term by  applying  best  demonstrated  technology with the turnover in
 the Nation's  industrial  base.
     To  eliminate  the  ambiguity  in the current wording of Section
 60.15 and further  the  intent underlying Section 111, the Agency is
 clarifying  the meaning of "proposed" component replacements in Section
 60.15.   Specifically, the Agency is interpreting "proposed" replacement
 components  under Section 60.15 to include components which are replaced
 pursuant to all continuous programs of component replacement which
commence (but are not necessarily completed)  within the period of  time
 determined by the Agency to be appropriate for the individual  NSPS
 involved.  The Agency is selecting a 2-year period as the  appropriate
 period for purposes of the petroleum refinery equipment leak NSPS
 (Subpart GGG).  Thus, the Agency will count toward the 50  percent
reconstruction threshold the "fixed capital cost" of all  depreciable
components  (except those described above) replaced pursuant to  all
continuous programs of reconstruction which commence within any 2-year
period following proposal of these standards.   In the Administrator's
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judgment, the 2-year period provides a reasonable, objective method of
determining whether an owner of one of these facilities is actually
"proposing" extensive component replacement, within the Agency's original
intent in promulgating Section 60.15.
     EPA realizes that the petroluem refinery industry is constantly
changing; however, the Agency believes that this 2-year limit will
assure that the owner would have to make a substantial change to the
facility to reach the 50 percent threshold.
     The administrative effort to keep the required records should not
be a burden on industry.  The recordkeeping required under a cumulative basis
interpretation of reconstruction is the same as the recordkeeping that
would be required under a strictly project-by-project basis interpretation.
In either case, the dollar amount of the component replacement taking
place at the affected facility must be determined and recorded.  Once
this dollar amotmt has been determined for each change and conversion,
the additional requirement of keeping this information on file at the
refinery does not appear to be an excessive burden.
Comment:
     Two commenters (IV-D-8 and IV-D-14) requested EPA to exclude from
the reconstruction provisions the costs of equipment replacement done
for routine maintenance purposes.  Similarly, commenters (IV-D-4 and
IV-D-15) expressed concern with the reconstruction provisions as they
apply to process unit turnarounds.  Commenters stated that process unit
turnarounds are maintenance procedures performed to assure efficient
and safe operation and, therefore, turnaround replacements should be
excluded from reconstruction provisions.  Another commenter (IV-D-4)
requested that replacements of equipment due to fire, explosions, or
other accidental causes should be exempt from reconstruction.
Response:
     As discussed above, reconstruction costs are the fixed capital  cost
or the capital needed to provide all  the "depreciable" components,
while most routine maintenance practices involve the use of non depreciable
components.
     Because routine maintenance items (valve packings, pump seals,
replacement rupture disks, nuts and bolts) cost very little compared to
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 the  cost  of  equipment  (covered by the standards) in a process unit, it
 is very unlikely that  routine maintenance would trigger a reconstruction
 even if accumulated  over  several years.  The cost of these items is
 relatively small.  In  EPA's judgment, maintaining records of the repair
 or replacement of  these items may constitute an unnecessary burden.
 Moreover, EPA does not consider the replacement of these.items an
 element of the turnover in the life of the facility.  Therefore, in
 accordance with 40 CFR 60.15{g), the final standards (Subpart GGG) will
 exempt certain frequently replaced components from consideration in
 applying the reconstruction provisions to petroleum refinery process
 unit facilities.
      The costs of these frequently replaced valve parts will not
 be considered in calculating either the "fixed capital  cost of the new
 components" or the "fixed capital cost that would be required to construct
 a comparable, entirely new facility" under Section 60.15.  In EPA's
 judgment, these items  are pump seals, valve packings, nuts and bolts,
 and  rupture disks.  Replacements of pumps, valves, and other fugitive
 equipment at turnarounds or at other times are included in reconstruction
 costs.  For turnarounds that involve significant refurbishment of a
 process unit, EPA would likely consider this a reconstruction.  EPA
 also considers it appropriate to include in reconstruction costs the
 replacement of equipment due to the accidental  loss of an original
 component, since the reason for an owner's refurbishing a facility has no
 bearing on whether the facility itself is comparable to a new source
 for which application of the best control  systems is reasonable.
 Comment:
     One of the commenters (IV-D-14)  requested that the reconstruction
 provisions not apply at all, or only  when  the number of replacement
 valves exceeds 50 percent of the number of existing valves.   The commenter
 reasoned that there is an economic justification  for requiring compliance
with NSPS if, for example, reactors,  towers,  or heaters are replaced,
 but not fugitive emission sources.
Response:
     The standards apply to fugitive  emission sources only.   EPA considers
it appropriate to cover process units that are essentially new.   The
costs considered are only those associated with the equipment covered
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by the standards.  The commenter offered no sypport for his statement
that the standards are not economically justified when applied to
fugitive emission sources only.  EPA considers the standards to reflect
BDT (considering costs) for sources that become affected through recon-
struction or modification.  In response to the commenter's preference
that the affected facility include valves only, EPA does not disagree
with the concept of using the number of components as the basis for
reconstruction.  However, since there are several types of components
covered by the standards, this approach would ignore replacements of
other key portions of the facility.  Thus, EPA will use the cost of
replacements for all the equipment covered by the standards to determine
when a reconstruction has occurred.
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                               6.0  LEGAL
Comment :
     One commenter (IV-D-21) requested that facilities commencing
modification or reconstruction should be subject to compliance on the
date of final promulgation rather than January 4, 1983, the date
of proposal.
Response:
     Under Section lll(a)(2) of the Clean Air Act, a "new source"
subject to applicable standards is defined to be any source on which
construction or modification commenced after the date on which the
standards were proposed.  The standards for equipment leaks of VOC
within petroleum refineries were proposed on January 4, 1983.  A
group of process unit equipment (specified in the standards) or a
compressor on which construction or modification commenced after that
date is, therefore, a new source under the Act and subject to the
standards.   The commenters suggest that EPA change the applicability
date to the date on which EPA promulgates the standards.   Changing the
applicability date of the standards would be inconsistent with the
plain language of the Clean Air Act.
Comment:
     Two commenters (IV-D-21 and IV-D-22) argued that the proposed
standards are unnecessary because hydrocarbons generally  do not affect
human health as reflected in the EPA's rescinding of the  national  ambient
air quality standards (NAAQS)  for hydrocarbons (HC), and  because there is
no consistent quantitative relationship between the concentration of
ambient air ozone and hydrocarbons.   Commenters added that there
is no need  to regulate VOC in attainment areas.
Response:
     The revocation notice for the NAAQS for HC does not  directly
affect the  development of this NSPS.   As explained in the revocation
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notice, the NAAQS for HC were intended only as guides in the development
of State implementation plans (SIP) to attain the original NAAQS for
photochemical oxidants (recast as NAAQS for ozone in 1979).  EPA revoked
the NAAQS for HC because EPA determined that there is no single, univer-
sally applicable relationship between HC and ozone and that HC as a
class apparently do not produce any adverse health or welfare effects
at concentrations at or near ambient levels.  However, the revocation
was in no way intended to restrict EPA or State authority to limit VOC
emissions (including HC as a class) where necessary to limit the for-
mation of ozone.  Since VOC are precursors to ozone, and ozone has been
determined to be harmful to public health, and welfare, significant
sources of VOC are subject to regulation under Section 111 of the Clean
Air Act (46 FR 25656; May 9, 1981).
     EPA clearly documented the need to regulate VOC in order to protect
public health and welfare in the EPA publication "Air Quality Criteria
for Ozone and Other Photochemical Oxidants" (Docket No. IV-A-1).  VOC
emissions are precursors to the formation of ozone and other oxidants
(ozone).  Ozone results in a variety of adverse impacts on health and
welfare, including impaired respiratory function, eye irritation,
necrosis of plant tissues, and the deterioration of synthetic rubber.
     In setting new source performance standards, location of the
industry in attainment or nonattainment areas is not relevant.  Location
of an industry in an attainment or nonattainment area is relevant to
achieving the NAAQS under Sections 109 and 110 of the Clean Air Act.
The intent of Congress in establishing NSPS was to establish a single
level of stringency for all State limits, thereby preventing States
from soliciting industry with lenient air pollution requirements and
causing increased air pollution from new sources.  The standards will
limit VOC emissions from newly constructed, modified, and reconstructed
refinery process units and will result in emission reductions well into
the future.  Even though these reductions may not bear directly now on
attainment or nonattainment of NAAQS for ozone, they will make room for
future industrial growth while preventing future air quality problems.
Clearly, residents in both attainment and nonattainment areas would
benefit from these standards.  The NSPS complements the ambient air
quality-based rules as a means of achieving and maintaining the NAAQS,
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while on a broader basis it prevents new sources from making air
pollution problems worse regardless of the existing quality of ambient
air.  Therefore, while new source standards may help in the attainment
of NAAQS, the consideration of attainment or nonattainment of the NAAQS
does not influence directly the decision to set standards of performance,
Comment:
     The same commenters (IV-D-21 and IV-D-22) stated that the standards
would place an unreasonable burden upon the industry.  The standards
should be considered a major rule and not be exempt from provisions of
Executive Order 12291.
Response:
     Executive Order 12291 requires that a regulatory impact analysis,
thoroughly examining costs and benefits of a rule, be prepared in
connection with every major rule.  A major rule is any regulation
which is likely to result in:
     (1)   An annual  effect on  the economy of $100 million or more;
     (2)   A major increase in  costs or prices for consumers, individual
          industries, Federal, State, or local government agencies, or
          geographic regions;  or
     (3)   Significant adverse  effects on competition, employment,
          investment, productivity, innovation, or on the ability of
          United States-based  enterprises to compete with foreign-based
          enterprises in domestic or export markets.
     An economic analysis of these standards was prepared.  Economic
impact estimates presented in  the background information document for
the proposed standards, and summarized in the preamble to the proposed
regulation (48 FR 279; January 4, 1983), showed that no unreasonable
economic impacts are expected.  Because no unreasonable economic impacts
are expected and none of the criteria for a major rule has been met,  no
additional  regulatory impact analysis has been prepared.
Comment:
     One commenter (IV-D-21) further stated that EPA acknowledged that
no new major refineries are likely to be constructed in the U.S. in the
coming decade and, thus, all the emission reductions quantified in  the
background information document would occur at existing refineries.
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Response:
     Projections of units affected by new source performance standards
are discussed in Appendix E of the BID for the proposed standards.   EPA
projected that up to 100 new units and 182 modifications/reconstructions
of existing process units will be subject to the standards.   EPA recognizes
that few, if any, grass root refineries will be built.  However, EPA
also recognizes that it is appropriate to cover the industry as it
rebuilds through modification and reconstruction and through the addition
of new processing units at existing refineries.
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                            7.0  TEST METHODS
 Comment:
      One commenter (IV-D-4)  requested  that EPA propose  the  entire
 rulemaking,  including appropriate  reference methods, at one time.
 The commenter said that the  "failure to  provide  either  Reference Method
 21  or Reference Method 22  as  appendices  to  these  proposed rules prevents
 an  accurate  analysis  of the  impact of  the  proposed rulemaking."  The
 application  of Reference Method 22 to  refinery flares was questioned.
 Response:
      EPA proposed  Reference Method 21  on January  5, 1981, as an appendix
 to  the  proposed standards  of  performance for fugitive VOC emission
 sources in the synthetic organic chemicals manufacturing industry (SOCMI).
 EPA generally  proposes  reference methods in conjunction with the first
 standards that use  the  method.  Method 21 would normally have been
 promulgated  with the  SOCMI standards.  However, after reviewing the
 comments and incorporating changes, it was decided to promulgate Method 21
 before  promulgation of  the SOCMI NSPS because several  additional  regulations
 were scheduled for  promulgation in the near future that specified the
 use  of  Method  21.   EPA  considered the comments received during the comment
 period  for the proposed refinery fugitive standards and decided that no
 additional changes  to Method 21 were needed.  Method 21 was  promulgated
 on August 18,  1983  (48  FR 37598).
     Reference Method 22 was initially  promulgated on August 6, 1982.
 In the January 4, 1983, preamble to the proposed petroleum refinery
 standards, EPA stated that revisions to Method 22 would be published
 soon in the Federal Register to broaden its applicability  to flares.
This method was revised on October 18,  1983, in the rulemaking  on
SOCMI.
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Comment:
     Two commenters (IV-D-4 and IV-D-15) requested that EPA clarify
the use of hexane or methane in calibrating the portable analyzer.  It
was suggested that a correction factor be provided to put all measurements
on a consistent basis using hexane as the primary standard.  The use of
an unconnected methane calibnation would nesult in a highen numben of
leaking components being detected.
Response;
     The basis fon selection of the calibnation gases fon the analyzen
was evaluated befone pnoposal.  It was necognized that thene ane a
numben of potential pnocess stneam components and compositions that can
be expected.  Since all analyzen types do not nespond equally to diffenent
compounds, it was necessany to establish a nefenence calibnation matenial.
Based on the expected compounds and the infonmation available on instnument
nesponse factons, hexane was chosen initially (see Contnol of Volatile
Onganic Compound Leaks fnom Petnoleum Refineny Equipment, EPA-450/2-78-036,
Document No. II-A-6) as the nefenence calibnation gas fon EPA test
pnognams.  At that time, the measunement distance was 5 centimetens
(cm), and calibnations using hexane wene conducted at appnoximately 100
on 1,000 ppm levels.  Aften initial equipment leak data wene collected
at 5 cm, pnoblems wene identified with the nepnoducibility of nesults
at this distance, as discussed in Appendix D of the BID fon the pnoposed
standands.  The monitoning pnocedune was nevised so that measunements
wene made at the sunface of the intenface, on essentially 0 cm.  This
change was accompanied by a change in the leak definition to 10,000 ppm.
At this concentnation hexane calibnation standands wene not neadily
available commencially.  Also based on a neview of the data, it appeaned
that methane was a mone nepnesentative nefenence calibnation matenial
at 10,000 ppm levels.  Based on this conclusion, and the fact that
methane calibnation standands ane neadily available at the necessany
calibnation concentnations, methane was added as an acceptable calibnation
gas.
     Since then, studies have been completed that measuned the nesponse
factons fon sevenal instnument types.  The nesults of these studies
show that the nesponse factons fon methane and hexane ane similan
enough fon the punposes of this method fon these two gases to be used
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 as  calibrants  interchangeably.   Therefore, the accepted calibration
 materials  remain  as  hexane  and methane.   In  response to the commenters,
 EPA will likely use  methane as the  calibration gas.  Because EPA does
 not consider the  difference in the  number of leaks found using either
 calibration gas to be  substantially different, a correlation factor to
 put all measurements on a consistent basis was not provided.
 Comment;
      One commenter (IV-D-22) warned that when used at a concentration
 of  10,000  ppm, hexane  could condense on the  walls of the container,
 resulting  in distorted calibration  results.  Also, since the lower
 explosive  limit for  hexane  is 12,000 ppm, calibrating with hexane could
 be  a  safety hazard.
 Response:
      There are a  number of difficulties with using hexane as a calibrant.
 Based on EPA's experience, methane  is the preferred calibrant.  The use
 of  hexane may lead to operators finding more leaks during monitoring
 because, if hexane condenses on the walls of the container storing the
 instrument calibration gas, the concentration of the gas may fall  below
 10,000 ppm.  In this instance, an instrument would signal  that a leak
 has occurred although the actual  concentration is below 10,000 ppm.
 The fact that 10,000 ppm as hexane is close to 12,000 ppm (lower
 explosive limit of hexane) can be added to the factors that led EPA to
 require the instrument to be intrinsically safe for operation in explosive
 atmospheres.                                                            .
 Comment;
     Two commenters  (IV-D-6 and IV-D-12) remarked on the reasonableness
 of the instrument calibration  requirements.   It was argued  that the
 "zero" calibration could be performed adequately_with ambient air.
 Also, daily instrument calibration was deemed too burdensome and it
was felt that weekly calibration  should suffice.
Response:
     The specification of air  (less than 10  ppm hydrocarbon)  as the
 zero air calibrant was intended to allow the  use  of relatively clean
ambient air.  Method  21 now specifies 10 ppm, whereas it specified
3 ppm when  the  standards were  proposed.  The  use  of air  with  less  than
10 ppm hydrocarbon does allow  calibration  of  the  instrument at  essentially
                                  7-3

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zero reading.  This is particulaYly important for "no detectable  emission"
requirements and to ensure that the monitor is functioning  properly.
Zero air calibrants can be purchased or generated easily (e.g., carbon
filtered drawn air).  Thus, there is no need to change the  standards  to
require the zero air calibrant as ambient air only.   There  may be
occasions when the ambient air within a refinery could have a significant
VOC (organics) concentration, and calibrating with that ambient air
would be inappropriate.
     Instrument calibration is required on each day of its  use.   This
is not burdensome.  The procedure is relatively simple, does not  require
a laboratory, and takes only 15 to 30 minutes.  The cost of calibrating
the instrument on a daily basis was included in the cost of leak  detection
and repair  programs.  Moreover, the proper use and calibration of the
monitor is  vital to effective leak detection and repair.  A semiannual
performance evaluation of the instrument is also required by Method 21.
EPA has no  reason to  believe that weekly calibration would  provide
sufficiently stable readings from the monitor.  EPA's experience  indicates
that daily  calibrations are sufficient, and that less frequent calibrations
may not be  adequate.  Thus, no change in instrument calibration requirements
was made.
Comment:
     One  commenter  (IV-D-22) noted that proposed Reference Method 21
refers to monitoring  techniques which do not distinguish between VOC
and non-VOC hydrocarbons.  This may  result  in  a component having a
monitor  reading  greater than 10,000  ppm while  actual  VOC emissions
would  be  less.
Response:
     The  commenter  is correct that  Method  21  responds to non-reactive
organic  compounds  (e.g.,  methane).   However,  the monitor reading is not
intended  to be  a quantitative measure of the  reactive organic compounds
 (VOC)  in  the leak.   Its purpose  is  rather  to  indicate whether a leak
exists of sufficient  magnitude to  warrant  remedial  action.   EPA is
 using  the "in VOC service" definition to exclude equipment that would
not contain enough  reactive  organic  compounds  to warrant coverage by the
 standards.   Thus, if  a piece  of  equipment  is  in  VOC service  and a leak
 of 10,000 ppm is detected,  EPA judges  that repair is  warranted.  For
                                   7-4

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 this reason,  correcting  the  10,000  ppm  leak definition  to  "VOC only"
 is unnecessary.
 Comment:
      A commenter (IV-D-22) suggested that there was inconsistency in
 EPA's decision not  to  allow  leak detection using a soap solution because
 the magnitude of leak  rates  is difficult to assess, yet the VOC
 monitoring  instrument  "would yield  qualitative indications of leaks."
 Response:
      Since  proposal, an  alternative screening procedure has been added
 to Method 21  for those sources that can be tested with a soap solution.
 These sources are restricted to those with non-moving seals, moderate
 surface temperatures, without large openings to atmosphere, and without
 evidence of liquid  leakage.  The soap solution is sprayed on all  appli-
 cable  sources and the potential leak sites are observed to determine if
 bubbles are formed.  If  no bubbles are formed, then no detectable
 emissions or leak exists.  If any bubbles are formed, then the instru-
ment measurement  techniques must be used to determine whether a leak
 exists, as defined  in the regulation.
      The alternative soap solution procedure does not apply to pump
 seals, components with surface temperatures greater than the boiling
point or less than the freezing point of the soap solution, components
such as open-ended lines or valves, pressure relief valve horns,  vents
with large openings to atmosphere, or any component where liquid  leakage
is present.   The instrument technique specified in  the method must  be
used for these components.
     The alternative of establishing a  soap scoring leak definition
equivalent to a concentration based leak definition is not included in
the method and is not recommended for inclusion in  an  applicable  regu-
lation because of the difficulty of calibrating and normalizing a
scoring technique based on bubble formation rates.   A scoring technique
would be based on estimated ranges of volumetric  leak  rates.   These
estimates depend  on the bubble size and  formation rate,  which are
subjective judgments of an observer.  These subjective judgments  could
be calibrated or  normalized only by requiring  that  the observers  cor-
rectly identify and score a standard series of test bubbles.   It  has
been reported that trained observers can correctly  and repeatedly
                                  7-5

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 classify  ranges  of  volumetric  leak  rates.   However, because soap scoring
 requires  subjective observations and  since  an objective concentration
 measurement  procedure  is available, a soap  scoring equivalent leak
 definition is  not recommended  for the applicable regulation.  The
 alternative  procedure  that has been included will allow more rapid
 identification of potential Teaks for more  rigorous concentration
 measurement  using a monitoring instrument.
 Comment;
     A commenter (IV-D-8) argued that it is unreasonable to require
 annual monitoring of "entire vent or  control systems."  These piping
 systems are  typically  operated at low pressure (which minimizes the
 amount of potential  leakage) and are  routed overhead in pipe racks and
 are, therefore, inaccessible.
 Response;
     Method  21 is used to monitor closed vent systems used in complying
 with the  standards.  Method 21 requires the use of an organic compound
 monitor only where  leaks might occur.  Where no leaks can occur (like
 header-pipes), Method 21 requires only a visual  inspection to ensure
 the closed vent system has not deteriorated and is not leaking where
 leaks are not expected.
     Closed vent systems used to comply may be operated at low pressure
 or high pressure.   Either type of system may leak at  connections and,
 therefore, the annual test is appropriate.   If an owner or operator
 uses an" approach of ensuring a leak-free system,  such as monitoring
 oxygen in a vacuum  system, EPA will  consider whether  this approach  can
 be used rather than Method 21, as specified in §60.13(i)  of the  General
 Provisions.  Like other sources that are difficult-to-monitor, annual
monitoring, if needed,  in a pipe rack  is not unreasonable in  light  of
the emissions that would occur from  such a  leak.
                                  7-6

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                    8.0  RECORDKEEPING AND REPORTING
Comment;                                               '
     A number of commenters (IV-D-8, IV-D-12, IV-D-21, and IV-D-22)
wrote that the proposed recordkeeping requirements are needlessly
complex and burdensome.  One commenter (IV-D-22) estimated that the
additional paperwork burden would amount to 2 person-months per year
per affected refinery.  Two commenters (IV-D-8 and IV-D^12) listed
specific recordkeeping requirements that should be deleted.  These
requirements include records of: (1) identification numbers for instru-
ments, operators, fugitive emission components, leaking components,
components in vacuum service, and components designated as difficult-to-
monitor or unsafe-to-monitor; (2) repair methods; (3) logging shutdown
and startup for closed vent systems; (4) signature of owner or operator
(or designee) whose decision it was that repair could not be effected
without a process shutdown; (5) expected date of repair;  (6) explanation
for unsafe or difficult-to-monitor designation; and (7) schematics,
design specifications, and operations records on flares used as control
devices.
Response:
     Before the standards were proposed, EPA considered three alternative
levels of recordkeeping.  The proposed recordkeeping requirements are
considered the minimum consistent with adequate enforcement; thus, the
paperwork burden on owners and operators is the minimum amount necessary
to enforce the standards adequately.  At proposal, EPA weighed the
paperwork burden against the enforcement authority (Federal, State and
local) to determine compliance with the standards and selected the
proposed requirements.
     Compliance with the final standards will be generally determined
through inspection.  However, because the intent of the standards is a
                                  8-1

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continuous reduction in equipment leaks of VOC and continuous inspection
by enforcement authorities is not possible, records must be maintained
if an inspector is to determine retrospectively whether a facility is in
compliance with the standards.  EPA considers the required records for
an owner or operator's leak detection and repair program necessary to
document the operator's compliance efforts.  These records would likely
be maintained by a prudent owner or operator, and should therefore add
little additional recordkeeping burden.
     Commenters did not explain why specific records would not be needed
by enforcement authorities.  EPA considers the required records for an
owner or operator's leak detection and repair program necessary to docu-
ment the operator's compliance efforts.  For example, when an unsuccessful
repair attempt is made, a record of the attempted or anticipated methods
of repair shows what effort was made by the operator and the reason for
delay.  Without such records, EPA and other enforcement authorities
would not be able to determine compliance with the standards.  Addi-
tionally, an expected repair date is obviously required in such cases
to prevent a known leak from being allowed to persist.  Records, such
as identification numbers for components in vacuum service, can be used
to check compliance with the standards.  The same reasons are applicable
to records for operation of control devices.  Obviously, a control
device (including flares) serves no function when not operating.  As
such, demonstration of shutdown or flame-out periods is necessary to
show compliance.  These records would likely already be maintained by a
prudent owner or operator, and should therefore add little additional
recordkeeping burden.
     The records required for identifying fugitive emission components,
and control device schematics and design data are not unreasonably
burdensome.  This information would be developed only once, and would
require changing or updating only if the facility were changed.  The
control device schematics and design data should be available to plant
engineers already, and as such do not represent an added burden.  For
new facilities, the reasons why a component must be installed in a
location which makes it difficult or unsafe to monitor must be documented
prior to installing the component in such a position.  The number of
difficult-to-monitor or unsafe-to-monitor components will be small and,
                                  8-2

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 therefore,  should  not  create  an  excessive  recordkeepiny  burden.  After
 considering the  comments  that the  recordkeeping  requirements are needlessly
 complex  and burdensome, EPA decided to promulgate the  recordkeeping
 requirements as  proposed.
 Comment: ,
      One commenter (IV-D-22)  complained that the demonstration required
 for  a  variance from the 15-day repair requirement is a reeordkeeping
 nightmare due to the many different types  and sizes of valves.
 Response:
      The proposed  standards permit delay of repair beyond the 15-day
 period as provided in  Section 60.592-9.  The provisions  for delay for
 repair are  automatic,  and not a  variance (as the commenter implied)
 that must be  applied for as suggested by the commenter.  EPA recognizes
 that some repairs  cannot be performed on line, and that  not all  compo-
 nents can be  isolated  without a  process unit shutdown.   These repairs
 should be readily  understood by  the operator.  Therefore, a relatively
 straightforward response (e.g., the seal  must be replaced at a shutdown--
 pump cannot be bypassed; there is no spare) sufficiently informs EPA
 why repair  is delayed  for a particular component and, accordingly,  can
 be used to determine whether compliance with the standards has been
maintained.  The intent of the recordkeeping provision is to ensure
that all  technically feasible repairs are performed within 15 days.
 Comment:
     A commenter (IV-D-14) wrote that the actual  cost for a leak
detection and repair program as required  by the standards would  be
higher than EPA estimated  because daily recordkeeping of components
 replaced  frequently is not included, nor  are the associated costs
necessary to determine when a process unit becomes  an affected facility.
Response:
     The  recordkeeping associated with frequent replacements and
evaluating changes  in  operation would be  something  a  plant would typi-
cally do  on its own for purposes other than complying with the standards
 (e.g., tracking the cost of production or assuring  that adequate spare
 parts or  components are stocked).  A small  additional  increase might  be.
                                  5-3

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experienced by the owner as a result of these standards.  However, the
entire cost of recordkeeping should not be attributed to the standards
as indicated by the commenter.  The exclusion of certain routine replace-
ment items from reconstruction calculations (see Section 5) and the
addition of alternative methods for determining capital expenditure
(see Section 4) eases the recordkeeping needs.  The cost of pre-
construction efforts, pre-modification efforts, or pre-reconstruction
efforts are not accounted for explicitly in the impacts of the standards
because they are considered part of the overall cost of the owner's
decision to construct, modify, or reconstruct.  As such, it would be
very difficult to make reasonable estimates of the cost to determine when
a process unit becomes an affected facility.  But, EPA believes that
those costs are insignificant in comparison to the costs associated
with other activities that occur during these efforts.  In any cases,
these costs would not raise the overall cost effectiveness ($130/Mg) to
an unreasonable level.
Comment;
     Two commenters (IV-D-30 and IV-D-22) remarked that the standards are not
enforceable.  As a result one of the commenters (IV-D-22) concluded that
those facilities not following the NSPS would have a competitive advantage
of reduced cost over those facilities complying with the regulations.
Additionally, the other commenter (IV-D-30) strongly opposed the proposal
of no reporting requirements which, the commenter noted, undermines the
effectiveness of the standards and the ability of EPA and the States to
enforce them.  Reporting requirements, according to the commenter,
would enhance self-enforcement.  The commenter speculated that the
reason for EPA's excluding reporting requirements was OMB's role in
administering the Paperwork Reduction Act, which, the commenter asserted,
does not give OMB or EPA the authority to compromise the effectiveness
of the standards.  The commenter was also concerned that no records are
required for equipment not found to be leaking, adding that.a much
better incentive to comply with the regulation would exist if records
were required to be kept on all monitored equipment.
Response:
     Reports, records, and inspections will be used to ensure compliance
by all facilities subject to these standards.  State and EPA Regional
                                   8-4

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air quality control authorities have successfully implemented regulations
similar to the standards.  At proposal  EPA stated that routine reporting
was not required.  Reporting requirements were limited to notifications
of construction, anticipated startup and actual  startup, and an intention
to comply with one of the alternative standards.  As stated in the
preamble for the proposed standards, these reporting requirements would
not provide a mechanism for checking the thoroughness of the industry's
efforts to reduce fugitive emissions of VOC.  As stated in the preamble
to the proposed standards, compliance would be assessed through in-plant
inspections.
     EPA has decided that reporting is necessary to assess implementation
of the work practice and equipment requirements of the standards.  EPA
agrees with the commenter that facilities not complying with the stan-
dards might have an unfair advantage (albeit, somewhat small).  More
importantly, facilities not complying with the standards, would not be
using BDT as required by the Clean Air Act, the purpose of which is to
prevent new air pollution problems.  EPA believes that reporting is
necessary for the effective enforcement of the standards.  Reporting
will reduce the necessity for many in-plant inspections, while improving
the enforceability of the standards.  EPA's conclusion that reports are
useful is also based on the experience of the State and local air quality
control boards.
     As explained at proposal, three alternatives were considered for
reporting requirements.  The three alternatives represented trade-offs
among varying amounts of 'in-plant inspections and report preparation
for enforcement.  The first alternative required minimal reporting and
relied on inspections for enforcement.  The third alternative relied
almost totally on  reports and would require minimum inspections to
judge compliance.  The second alternative represented a compromise with
some reporting and some inspections required and is included  in the
final regulations.  These reporting requirements, however, have been
streamlined to include reporting of data on leak detection and repair
of pumps, valves,  and other equipment types only-.   In addition, periodic
reports are on a semiannual rather than quarterly basis, and  the  require-
ment for certification of reports has been eliminated.  The  semiannual
                                  8-5

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reporting requirements may be waived for affected sources in any State
that is delegated authority to enforce these standards, provided EPA
approves reporting requirements or an alternative means of source
surveillance adopted by the State.  Such sources would be required to
comply with the requirements adopted by the State.
     The following reporting requirements were added to the standards
since proposal:
     Each owner or operator must submit semiannual reports,
beginning 6 months after the initial startup date.  The initial semi-
annual report includes:
     (1)  Process unit identification,
     (2)  Number of valves subject to the requirements excluding those
valves designated for no detectable emissions,
     (3)  Number of pumps subject to the requirements excluding those
pumps designated for no detectable emissions and those pumps enclosed
and vented to a control device, and
     (4)  Number of compressors subject to the requirements excluding
those compressors designated for no detectable emissions and those
compressors enclosed and vented to a control device.
     All subsequent semiannual reports must include:
     (1)  Process unit identification, and
     (2)  For each month during the semiannual reporting period,
the number of valves, pumps, and compressors for which leaks were
detected and the number of valves, pumps, and compressors for which
leaks were not reported.
     The semiannual reports will present the facts that explain each
delay of repair and, where appropriate, why a process unit shutdown was
technically infeasible.   In addition, the semiannual  reports will give
dates of process unit shutdowns which occurred within the semiannual
reporting period, and revisions to items reported according to paragraph
(b) if changes have occurred since the initial report or subsequent
revisions to  the initial  report.
     The Paperwork Reduction Act of 1980 (PL-511) requires clearance
from the Office of Management  and Budget (OMB) of reporting and
recordkeeping requirements that qualify as an "information collection
request" (ICR).  For the  purposes of OMB's review, an analysis of the
                                  8-6

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burden associated with the reporting and recordkeeping requirements of
this regulation has been made.  During the years 1984 and 1985, the
average annual burden of the reporting and recordkeeping requirements
of this regulation to industry would be about 20 person-years.
                                   3-7

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                       APPENDIX A

INCREMENTAL COST EFFECTIVENESS OF CONTROL TECHNIQUES FOR
                 EQUIPMENT LEAKS OF VOC
                          A-l

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                               APPENDIX A
          INCREMENTAL COST EFFECTIVENESS OF CONTROL TECHNIQUES
                       FOR EQUIPMENT LEAKS OF VOC

     Table A-l summarizes the individual component control  impacts and
the incremental cost effectiveness for each individual component and
control technique.  The individual component control  impacts are derived
in Tables A-2 through A-13.  The net annualized cost, emission reduction,
cost effectiveness, and incremental cost effectiveness of the control
techniques are discussed in Chapter 2.0.
                                  A-2

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       Table A-1.   SUMMARY  OF  THE  INDIVIDUAL  COMPONENT  CONTROL  IMPACTS3
Fugitive Emission
Source
Pressure relief devices
Compressors
Open-ended valves
Sampling connection
systems
Valves
Pumps

Control Technique
Quarterly LDR
Monthly LDR
Rupture disks'1
Controlled degassing
vents
Caps on open ends
Closed purge sampling
Quarterly LDR
Monthly LDR
Sealed bellows valves
Annual LDR
Quarterly LDR
Monthly LDR
Dual mechanical seal
system
Emission Reduction
(Mg/yr)
4.4
5.3
9.8
16.5
2.8
2.6
66
77
110
3.0
9.8
11.5
13.9
Average Cost
Effectiveness13
($/Mg)
(170)
(no)
410
150
460
810
(110)
(60)
4,700
.860
157
158
2,000
Incremental Cost
Effectiveness0
($/Mg)
(170)
250
1,000
150
460
810
(110)
310
16,700
860
(140)
170
10,900
(xx) - Cost savings
LDR =• Leak detection and  repair.


a                     •                                                              '
 Costs and emission reductions are based  on fugitive emission component counts in Model B from  the BID for the proposed
 standards, EPA-450/3-81-015a, page 6-3,  and from Tables  A-2 through A-13 of  this appendix.
b
 Average Cost Effectiveness - net annual!zed costs per component + annual VOC emission reduction per component.
c
 Incremental Cost Effectiveness » (net annual!zed cost of the control technique - net annualized cost of the next less
 restrictive control technique) + (annual emission reduction of control technique - annual  emission reduction of the
 next less restrictive  control  technique).
d
 Underlined control techniques were selected as basis for standards.
                                                  A-3

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Table A-2. .PRESSURE RELIEF DEVICE IMPACTS , ._. .
(May 1980
Per Pressure
Relief Device
Item/Control Technique

Installed Capital Cost
Annual i zed Capital Costsc

A. Control Equipment
B. Initial Leak Repaird
Annual i zed Operating Costs
A. Maintenance6
•' B. Miscellaneous^
1. Monitoring9
2. Leak Repaird
3. Administrative
and Support"1
Total Annual Costs
Before Credit
Recovery Credit1
Net Annual i zed Costs J
Total VOC Emission
Reduction (Mg/yr )k
Cost Effectiveness
($/Mg VOC)1
Incremental Cost
Effectiveness11"
($/Mg VOC)

dollars)
Quarterly
LDR
a
0

a

0

	 a
	 a
19
0

7.6

27
135
(110)

0.63

(170)


(170)


Monthly
LDR
a
0

a

0

—a
__a
58
0

23

81
161
(80)

0.75

(110)


250


Rupture
Disks
b
3,100
^

600
0 .

160
120
0
0

0

880
300
580

1-4

410


1,000
* V-
(XX) = Cost Savings
(LDR) = Leak Detection and Repair

Model Unit B:  7 pressure relief valves
  Emission Reductions
        Quarterly LDR = 7 x 0.63 Mg/yr = 4.4 Mg/yr
        Monthly LDR = 7 x 0.75 Mg/yr = 5.3 Mg/yr
        Rupture Disks  = 7 x 1.4 Mg/yr = 9.8 Mg/yr
                                A-4

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          Table A*2,.  PRESSURE RELIEF DEVICE IMPACTS
                       (May 1980 dollars)
                          (Continued)

aCost of monitoring instrument is not included in this analysis.

bCapital cost  for  rupture disk is from BID. for proposed standards
 Table 8-1.

C0btained by multiplying capital recovery factor (2 years, 10 percent
 interest = 0.58)  by  capital cost for rupture disk and capital recovery
 factor (10 years, 10 percent interest = 0.163) by .capital cost for all
 other equipment (rupture disk holder, piping, valves,- pressure relief
 valve).  Based on new installation cost 0.163 (3100 - 230) + 0.58
 (230) = 600.

dLeaks are corrected  by routine maintenance in the absence of the
 standards; therefore, no cost is incurred for repair.

e0.05 x capital cost.  From BID for proposed standards, Table 8-5.

f0.04 x capital cost.  From BID for proposed standards, Table 8-5.

QMonitoring labor hours (i.e., number of workers x number of components
 x time to monitor x times monitored per year) x $18 per hour.  Assumes
 2-man monitoring team per relief valve, 8 minutes monitoring team per
 valve.
"0.40 x (monitoring cost t leak repair cost).
 standards, Table 8-5.
                                               From BID for proposed
"•Recovery credit based on uncontrolled VOC emission factor of 3.9 kg/day
 (BID Table 3-1) and 44 percent control efficiency for quarterly
 inspections (BID Table F-7), 53 percent control efficiency for monthly
 inspections, and 100 percent for rupture disks.  Control efficiency
 for monthly inspections is estimated based on the method used to
 calculate control efficiency for quarterly inspections in Table F-7
 (footnote f) of the BID for the proposed standard.  [Ratio of estimated
 control  efficiency for gas/vapor valve ABCD model (monthly inspections)
 to gas/vapor valve LDAR model  estimate (BID Table F-3) multiplied by
 safety /relief valve ABCD model control effectiveness for monthly
 inspections (0.68) based on Table 7-1, BID for proposed standard
 ABCD factors:   A = 0.74, B = 0.95,  C = 0.98,  D = 0.98].  Therefore,
 control  efficiency for monthly inspections =  (g 53)  (0.703)  - Q 53
                                                     (0.91)

 Recovered product valued at $215/Mg VOC (from BID Table 8-5).
 Recovered emissions:
 Quarterly LDR  = 3.9 kg x 0.44  x 365 days x 1  Mg    =  0.63 Mg _
                  day               yr      1000 kg    yr-relief device

 Monthly  LDR = 3.9 kg x 0.53 x  365 days x 1 Mg    = Q.75 Mg _
                 day              yr      1000 kg  yr-relief device
                                 A-5

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            Table A~2.  PRESSURE RELIEF-DEVICE IMPACTS
                         (May 1980 dollars)
                            (Concluded)
 Rupture Disk  = 3«9 kg
                  day
365 days x 1 Mg    =  1.4 Mg
   yr      1000 kg
                                                       yr-relief  device

JTotal annual cost (before credit) minus recovery credit.

^Based on uncontrolled VOC emission factor and control efficiencies  for
 each control technique in footnote i.

1 Obtained by dividing net annualized cost by total  VOC emission
reduction.
'"•Incremental cost effectiveness =

   Net annual!zed cost of
   control technique
       Net annualized cost of
       next less restrictive control
   Annual vOC emission reduction
   of control technique
       Annual VOC emission reduction
       of next less restrictive control
                                  A-6

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             Table A-3,    COMPRESSOR  SEAL IMPACTS.
                                  1980 dollars)
    Per Compressor  '
  Item/Control Technique
                                               Closed Vent  and Seal System
  Installed Capital  Cost*

  Annuallzed Capital  Costs
   Control Equipment*3

 Annualized Operating Costs
8,000


1,300
«. Maintenance4-
B. Miscellaneous*1
Total Annual Costs
Before Credit
Recovery Credit6
Net Annuallzed Costsf
Total VOC Emission
Reduction (Mg/yr)9
Cost Effectiveness
($/Mg VOC)h
400
320
2,020
1,180
840
5.5
150
Model Unit 8:  3 compressors

  Emission Reductions:
      3 x 5.5 Mg VOC/yr  »  16.5 Mg/yr.


Capital cost from BIO  for  proposed standards, Table 8-1.

b0.163 capital recovery factor x capital cost; from BID
 for proposed .*:ndards,  Table 8-5.

C0.05 x capital-cost.   From BID for proposed standards, Table 8.5.


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           T^ble  A*4,    OPEN-ENDED  LINES  IMPACTS
                          (May 1980 dollars)
 Per Open-ended Line
 Item/Control Technique
Caps
 Instal led Capital Cost3

AnnualIzed Capital Costs
  Control Equipment"

Annuitized Operating Costs

  A.  Maintenance0
  8.  Miscellaneous^

Total Annual Costs
  Before Credit

Recovery Credit6

Net AnnualIzed Costs'

Total VOC Emission
  Reduction (Mg/yr)9

Cost Effectiveness
  ($/Hg VOC)h
 S3


  8.6
  2.7
  2.1
 13.4

  4.3

  9.1


  0.020-


460
Model Unit 8:   140 open-ended lines.

  Emission Reductions:
    140 .x 0.020 Hg/VOC/yr « 2.8 Mg/yr.
       BIO for proposed standards, Table 8-1.

  b0.163  (capital recovery factor) x  capital cost; from 810 for  proposed
   standards, Table 3-5.

  CQ.05 x capital cost.  From 810  for proposed standards,  Table  3.5.

  d0.u4 x capital cost.  From BIO  for proposed standards,  Table  8.5.

  'Recovery credit based on uncontrolled VOC emission factor of
   0.055  kg/day (from BIO for proposed standards. Table 3-1).  Based on 100
   pp»-cent control
   efficiency for caps and $215/Mg VOC emission reduction  (from  310 for
   proposed standards, Table 8-5).

   treission Reduction:
   0.055  kg/day/open-ended line x  365 day/yr x 1 Mg/1,000  kg « 0.020 Mg/yr

   Recovery Credit:
   0.020  Mg/yr x $215/Mg VOC » S4.3/yr/open-ended line.

  'Total  annual cost (before credit)  minus recovery credit.

  SBased  on uncontrolled emission  factor and control efficiency  in
   footnote e.

  ^Obtained by dividing net annualized cost by total VOC emission reduction.
                                        A-8

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     Table A-5.   SAMPLING CONNECTION  SYSTEM IMPACTS
                           (.May  1980  dollars)
 Per  Sampling Connection  System
   Item/Control Technique
Closed Purge Sampling System
 Installed Capital  Cost4
 Annualized Capital Costs
  Control Equipment0
 Annual!zed Operating Costs
  A.  Maintenance0
  B.  Miscellaneous"1.
 Total Annual Costs
  Before Credit
 Recovery Credit6
 Net Annualized Costsf
 Total VOC Emission
  Reduction (Mg/yr)9
 Cost Effectiveness
  ($/Ng VOC)h
           530
            36
           26
           21
          133
           28
          105

            0.13

          810
Model Unit B:   20 sampling connections.
  Emission Reductions:
    20 x 0.13 Mg/VOC/yr « 2.6 Mg/yr.
    aFrom BID fop proposed standards,  Table  8-1.
    Capital  recovery  factor (0.163) x capital cost; from BID for proposed
     standards,  Table  8-5.
    CO.05 x capital  cost.  From BID for proposed standards, Table 8.5.
    d0.04 x capital  cost.  From BID for proposed standards, Table 8.5.
    eRecovery credit based on uncontrolled VOC emission factor of
     0.36 kg/day (from BID for proposed standards. Table 3-1).  Based
     on 100 percent  control efficiency.
     Recovered Emissions:
     0.36 kg/day x 365 day/yr x 1 Mg/1,000 kg » 0.13 Mg/yr
     Recovery Credit:
     S215/Mg x 0.13  Mg/yr * $28/yr.
    ^Total annual  cost (before credit) minus recovery credit.
    9Based on uncontrolled VOC emission factor and 100 percent control as
     shown in footnote e.                                             •
    "Obtained by dividing net annualized cost by total VOC emission  reduction.
                                 A-9

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                             A«fi,    VALVE  EMISSIONS AND.EMISSION  REDUCTIONS
Emission Per Valve ' Emission Reduction Per Valve
(kg/day) (Mg/yr)a
Control -Service Gas Light
Uncontrolled' 0.64 0
Quarterly LDR 0.262 '0
Monthly LDR 0.192 0
Sealed Bellows
Valves6 0 0
LOR > Leak Detection and Repair
»Ea1ss1on Reductions Per Valve
/Uncontrolled emissions
1 per valve (kg/hr)
liquid uas Light liquid
.26
.098 0.14
.072 0.16

0.23

Calculated as:
Controlled emissions
per valve (kg/hr)
„
0.059
0.069

0.095


\ x 365 days
year
Emission Reduction Per),
Model Unit B (Mg/yr)
Weighted Average1- Gas Light liquid rota I u
„
0.087
0.10

0.14


x 1 Mg
1000 kg
«• •• ••
35.9 29.6 65.5
42.5 34.3 76.8

60.7 47.4 108



         (fro* BID Table 3-1)
                                   (from BID Table F-7),
 Exanple Calculation:  gas service, quarterly LDR - (0.64 -  0.262) x 365 + 1000 « 0.14 Mg/yr

''Based on Model  Unit B:  260 gas service valves  and 500 light  liquid service valves.
 Exaaple Calculation: gas service, quarterly LOR - (0.64 - 0.262) x 365 * 1000 x 260 > 35.9 Mg/yr
^Weighted average  Is based on Model Unit B valve population.  Weighted average 1s calculated
 by using the formula:

                               gas service |  + [	500	  x  light liquid service)
                               emission   /    \260  + 500     emission reduction  /
                               reduction  '    x                                 '
              /    2(50
              \ 260 + 500
 Example calculation:  quarterly LDR  •
              I
              \"
260
                260 + 500
  x 0.14 Mg/yr \ +
   500     x  0.059 Mg/yr)
260 + 500               /
                                                                         0.087 Mg/yr
 The emission reductions reported In the proposal  preamble  are on a per component basis,  therefore.  It Is necessary to
 derive per valve Inpacts by weighting the gas and light  liquid service emission reductions  by  their relative component
 counts In Model  Unit B.  The resulting emission reductions per valve represent a weighted average.
       Unit B emission  reductions presented In the proposal  preamble Table 1 represent a weighted average of the gas and
 light liquid emission  reductions, calculated as:
        Quarterly LOft

                 / 260
                 \-7EO-

        Monthly LDR
x  35.9 Mg/yr)
                        SOO
                                                x  29.6 Mg/yr }
                                                            /
                                            *  31.7 Mg/yr
                 I  260
                 \~751T
                        x  42.5 Mg/yr
                  H
                   500  x  34.3 Mg/yr)
                 ~75TT             /
                      37.1 Mg/yr
 However, total  emissions  from gas and light liquid service  valves 1n Model Unit B should have  been  reported rather than a
 weighted average. 'Individual valve weighted average Impacts  are used to determine the per component cost effectiveness.

 From BID for proposed  standards, Section 4.3.3.
                                                A-10

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         Table  A-7.    VALVE LEAK  DETECTION  AND  REPAIR  COSTS1
                                  (May 1980 dollars)
Per Valve
Cost Item/LDR-Service
Initial Leak Repair^
Monitoring Labor*!
Recurring Leak Repair Labor6
Administration and Support f
Total Annualized Cost
Product Recovery Credits
Net Annualized Cost"
Quarterly
Gas
0.46
2.4
3.3
2.5
9.2
(30)
(21)
Light
liquid
0.51
2.4
3.8
2.5
9.2
(13)
(4)
Weighted
Average'1
0.49
2.4
3.8
2.5
9.2
(19)
(10)
Gas
0.46
7.1
3.9
4.4
16
(34)
(18)
Monthly
Light
liquid
0.51
7.1
3.9
4.4
16
(15)
1

Weighted
Average'1
0.49
7.1
3.9
4.4
16
(22)
(6)
 (XX) > Cost Savings
 LDR * Leak Detection and Repair
 "Cost of monitoring instrument 1s not  Included In this analysis.
 bBased on Model  Unit B:  260 gas service and 500 light liquid service valves.
       Weighted  average calculated by  using the formula:
(260
\Z60 +
   260
Z60 + 500
                                  gas service
                                  cost Item
A  +     /   500
/        \ 260 + 500
                                                           x  light liquid service)
                                                                   cost  item      I
BID for proposed standards,  Tables 8-3, 8-5, and  8-6.  Calculated as:
       Initial  leak frequency  x   1.13 hrs/valve  x   18/hr  x  1.4  x  0.163
dFroa BIO for proposed standards,  Tables F-4 and F-12.  Calculated as:
              Fraction of Sources Screened
              (from BIO Table F-4, 2nd
               turnaround Annual Average)
                              x  1 mln  x  1  hr  x  $13.00  x 2 workers
                                 valve    60  mm      Hr
Example Calculation:  Gas Valves, Monthly LDR  •  11.8  x 1/60  x 18.00
                                                                $7.1
       BID  for proposed standards,  Tables F-4 and F-12.  Calculated as:
    Fraction of Sources Operated on,    x   1.13 hrs  x  SIS.00
    from BID Table F-4, 2nd                valvehr
    turnaround annual average
  Example calculation:  gas service, quarterly LOR  >
     [(0.1762  +  0.1970J/2]  x  1.13   x  $18  *  $3.80
 fFrom BID  for proposed standards.  Table 8-5.
  Calculated as:  0.4  x (monitoring labor + recurring leak repair labor)
 Calculated as:  $215  x  emission reductions (given in Table  6).
 "Total  annual cost  (before credit) minus recovery credit.
                                     A-11

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      Table A-8.  SEALED BELLOWS VALVE  COST  IMPACTS
                     (May 1980 dollars)
Per Valve Cost Item

  Capital Cost3
  Annualized Costb
    Capital recovery
    Maintenance
    Miscellaneous
    Total annualized cost
    Product recovery credit0
    Net annualized cost
2,730

  440
  140
  110
  690
 " (30)
  660
(xx) - Cost Savings
a
 From BID for proposed standards, Table 8-1.

 Basis for annualized costs from BID for proposed standards, Table 8-5.

 Calculated as:  $215 x emission reductions (given in Table 6)
                         A-12

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          Table A-9.  COST EFFECTIVENESS OF VALVE CONTROLS
                         (May 1980 dollars)
Per Valve
Item/Control
Net Annuali zed Cost3
VOC Emission Reduction
(Mg/yr)b
Cost Effectiveness
($/Mg VOC)C
Incremental Cost
Effectiveness ($/Mg VOC)d
Quarterly
LDR
(10)
0.087
(no)
(110)
Monthly
LDR
(6)
0.10
(60)
310
Sealed Bellows
Valves
660
0.14
4,700
16,700
(xx) = Cost Savings
LDR = Leak Detection and Repair
 From Tables 7 and 8.

 From Table 6.
 Calculated as:
 Calculated as:
                                   Net annualized Costs ($/yr)
                             annual VOC emission reduction (Mg/yr)
                       Net annualized cost of
                          control technique
  Net annualized cost of next
   less restrictive control
                       Annual VOC emission
                       reduction of control
                       technique
  Annual VOC emission
- reduction of next less
  restrictive control
                                 A-13

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        Table A-10.  PUMP EMISSIONS AND EMISSION REDUCTIONS
  Control
                   Emissions  Per
                 Per Pump (kg/day)
                   Emission Reductions Per
                         Pump  (Mg/yr)a
Uncontrolled
Annual LDR
Quarterly LDR
Monthly LDR
Dual Seal System
2.12C
0.79C
0.45C

0.21
0.70
0.82
0.99
LDR - Leak Detection and Repair
Model Unit B = 14 pump seals in light liquid service.
  Emission reductions:
                         3.0 Mg/yr
                         9.8 Mg/yr
                        11.5 Mg/yr
                        13.9 Mg/yr
Annual LDR
Quarterly LDR
Monthly LDR
Dual- Seal System
 Calculated as:
   Uncontrolled
   emissions per
     pump seal
       (kg/hr)
                     Controlled
                    emissions per   x 365 days x   1 Mg
                                        year      1000 kg
pump seal
 (kg/hr)
 Example calculation:  annual LDR =
         (2.7 kg/day - 2.12 kg/day) x 365

 From BID for proposed standards, Table 3-1.

 From BID for proposed standards, Table F-5.

 From BID for proposed standards, Section 4.3.1.1.
                                          1000 = 0.21 Mg/yr
                           A-14

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         Table A-ll.   PUMP  LEAK  DETECTION  AND  REPAIR
                   COSTS  (May  1980 dollars)a
Per Pump Seal
Cost Item/Control
Initial Repair
laborb
Replacement Seals0
Maintenance-ongoing
Replacement Sealsd
Monitoring Labor
Instrument6
Visualf
Recurring Repair LaborS
Administration and Support"
Total Annualized Cost
Product Recovery Credit i
Net Annualized CostJ
LDR
Annual Quarter

' 16 16
5.5 5.5
48 55

3 12
7.8 7.8
9.8 110
44 52
220 260
45 150
180 110

2 	 Monthly

16
iU
5.5
57

36
7.8
120
66
310
180
130
 (XX)  =  Cost Savings
 LDR  =   Leak Detection and Repair

 aPump seal  repair costs are based  on 16 labor hours  per pump repair and  includes
 5140 per repair for a replacement seal.  This analysis does not include the cost
 of monitoring instrument.

 bFrom BID for proposed standards,  Tables 8-3 and  8-5.  Calculated as:

 Estimated  percent of   x   labor  hours  x  labor x  Administration   x  Capital

 ""«ID  r^EVi?1"9         iper  -       rate          and         re«ver*
   (BID  Table 8-3)          seal repair              support costs       factor

Example  calculation:   annual LDR =

       (0.24)  x (16)  x ($18) x  (1.4) x (0.163)  = $16

clnitial  replacement  seal  cost is calculated as:

      Estimated percent  of   x   $140/      x    0.163
      initial pumps  leaking     replacement     Capital
         (BID Table 8-3)             seal     recovery factor

Ingoing  replacement  seal  cost calculated  as:

      Fraction of  Sources    x   $140/
          operated on           replacement
      (from BID Table F-6)          seal
                               A-15

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           Table A-11.   PUMP LEAK DETECTION AND REPAIR COSTS
                        (May 1980 dollars)3
                           (Concluded)
  Example  calculation:   annual  LDR

        (0.3397)  x  ($140)   =  $48

Calculated  as:
       fraction  of  sources    x     5  min
            screened             pump seal
       (from BID Table  F-6)

 Example calculation:   annual LDR  =

       (1) x (5/60) x  ($18) x (2)  =  $3

fCalculated as:

       0.5 min
                                          1 hr   x  $18  x  2 workers
                                         60 min
                        ~RF
           x  52  x  1 hr
pump seal     yr    60 mirt
x  $18  x  1 worker  =  $7.8
    hr
9Calculated as:
       fraction of sources
          operated on
       (from BID Table F-6)
                         x    labor hours
                            per seal repair
                        $18
                        ~hT
 Example calculation:  annual LDR =

       (0.3397) x  (16 hrs/seal repair) x ($18)  =  $98

"Administration and support  =  0.4  x (monitoring labor + rec-'rring
 leak repair labor)

"^Calculated as:

       Emission Reduction  x  $215/Mg
         (from Table 10)

JTotal annualized costs (before credit) minus recovery credit.
                              A-16

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        Table A-12.  DUAL MECHANICAL  SEAL  SYSTEM COSTS FOR PUMPS
                            (May 1980 dollars)
   Per Pump Seal
     Cost  Item
 Capital Costa

   Seal
   Seal installation
   Barrier fluid system
   Barrier fluid degassing vent
   Total capital cost

 Annualized Costb

   Capital  recovery
     seals0
     other capitald
   Maintenance charges6
   Miscellaneous charges^
   Total  annualized cost

 Product Recovery Credits
 Net  Annualized  Cost n
 970
 288
1850
4000
7110
 560
1000
 360
 280
2200

(210)
1990
 (xx)  -  Cost  Savings
 a
 From BID  for  proposed  standards,  Table 8-1.
 b
 From BID  for  proposed  standards,  Table 8-5.

 Calculated  as  0.58 x capital cost for  seal.
 Capital cost  for seal  =  cost  for new  seal  ($1250)
 minus  credit  for old seal  ($255 x 328.9/266.6)  =  $970.
 Capital recovery credit per seal  = 0.58 x $970  =  $560.
 d
 Calculated  as:  0.163 x capital cost.
 e
 Calculated  as:  0.05 x capital cost.
 f
 Calculated  as:  0.04 x capital cost.
 g
 Calculated  as:
   Emission  Reduction x $215/Mg.
   (from Table 10)
h
 Total annualized cost (before credit) minus product recovery credit
                             A-17

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                 Table A*13-  COST EFFECTIVENESS QF PUMP  CONTROLS
                                 "(May 1980 dollars)
Per pump
Item/Control
Net Annual i zed Costa
VOC Emission Reduction
(Mg/yr)b
Cost Effectiveness
($/Mg VOC)c
Incremental Cost
Effectiveness ($/Mg VOC)d
Annual
LDR
180
0.21
860
860
Quarterly
LDR
110
0.70
157
(140)
Monthly
LDR
130
0.82
158
170
Dual
Seals
1,990
.0.99
2,000
10,900
(xx) s Cost Savings
LDR « Leak Detection and Repair
a
 From Tables 11 and 12.
b
 From Table 10.
"Calculated as :
 Calculated as:
                                 Net annualized  costs  ($/yr)
                         annual VOC emission  reduction  (Mg/yr)
                        Net  annualized  cost  of
                        control technique
                       Annual  VOC  emission
                       reduction of  control
                       technique
net annualized cost of next
  less restrictive control
 Annual VOC emission
 reduction of next less
 restrictive control
                                    A-18

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                                APPENDIX  B

            Regulatory  Decisions Affecting Standards  for SOCMI

     Several  of  the  decisions made on these standards  (since they were
 proposed) affect EPA's  position on standards of performance (Subpart
 VV)  for equipment leaks of VOC  within the Synthetic Organic Chemical
 Manufacturing Industry  (SOCMI).  These decisions are the result of new
 or additional analysis of the control techniques considered in the
 standards for petroleum refineries and SOCMI and, therefore, should be
 made consistent for these two standards.  The decisions concern:
              (1)  alternative  for determining a "capital  expenditure,"
              (2)  clarification of reconstruction provisions,
              (3)  difficult-to-monitor valves in new units, and
              (4)  double block and bleed valve exemption.
 The discussions of these decisions are found in Sections 2.2.3.1, 2.7,
 4.2, and 5.0 of the BID for promulgated standards as they  apply for
 petroleum refineries.  The basis for the revisions to Subpart VV is
 consistent with these discussions.  EPA knows of no reason not to make
these revisions to Subpart VV and, therefore, based on a prudent use of
 its resources, is promulgating these revisions.
                                  B-l

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                      APPENDIX C



EVALUATION OF AVAILABLE LEAK DETECTION AND REPAIR DATA
                        C-l

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  Appendix C - EVALUATION OF AVAILABLE LEAK DETECTION AND REPAIR DATA

C.O  INTRODUCTION
     As a part of their comments on the proposed NSPS for VOC fugitive
emissions from petroleum refineries, two commenters (IV-D-25, IV-D-14)
presented summary data from their plants and asked EPA to review these
data.  EPA requested the raw data for these summaries and requested other
data to evaluate the NSPS in light of data from refinery leak detection
and repair programs.  EPA analyzed these data by comparing and con-
trasting, where possible, with the estimates used in preparing the BID
for the proposed standards.
     Sections C.2, C.3, and C.4 of this appendix are memoranda that
provide summaries of the data, and describe the techniques used by EPA
in analyzing the data.  All of the data received were generated either
as a result of or as a measure of the effectiveness of state or local
regulations and, accordingly, an understanding of these regulations is
needed.  Therefore, the regulations on which the data are based are
described in the memoranda.  In most cases, data were submitted that
allow direct quantitative comparison to the NSPS estimates.  Where
qualitative comparison of these data and the estimates used in the
proposal BID are made, the reasons why the data are not directly related
are presented and the uncertainties with the qualitative comparison are
discussed.
     Section C.2 presents data obtained from Texaco, U.S.A. (IV-D-25a,
IV-D-33, IV-D-36).  These data were generated under the requirements of
the Louisiana State Implementation Plan, which requires quarterly moni-
toring of gas service components and annual monitoring of liquid service
components.  Texaco monitors additional components to those required by
the proposed NSPS, and the data are therefore not directly comparable to
the data used to support the NSPS in many cases.  The Texaco data
memorandum includes assumptions made by EPA in analyzing the data.
     Section C.3 presents data obtained from facility inspections made
by the South Coast Air Quality Management District (SCAQMD) and the Bay
Area Air Quality Management District (BAAQMD) during a California Air
Resources Board  (CARB) petroleum refinery valve inspection program
                                  C-2

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 (IV-D-31, IV-B-18).   These data,  as received by EPA,  were the  field
 data sheets from valve inspections at 12 refineries.   The data  are
 not based on inspection of entire process units,  but  only selected
 valves within selected process  units.   Again,  EPA made several  assumptions
 in analyzing the data, and these  assumptions are  stated in the  memorandum.
      Additional  data were  available from a  study  of the effectiveness of
 the South Coast Air  Quality Management District (SCAQMD)  Rule 466.1,
 performed by the EPA Office of  Research  and Development (ORD).  The
 results of-this study are  summarized  and evaluated in  Section C.4.
 C.I  DATA SUMMARY
      Data are available from the  memoranda  in  Sections  C.2  through C.4
 on  initial  leak  frequency,  leak occurrence  rates,  small  valves, repair
 effectiveness,  program costs, and monitoring time.  This  section
 summarizes  these data and  provides  comparisons  with the  values  used
 by  EPA in estimating  the impacts  of the  NSPS.   The data  discussed
 in  this  section have  been arranged  by  topic rather than  data source to
 provide  for  ease in  locating specific  information.
 C.I.I  Initial Leak Frequency
      Information on the initial  leak frequencies at a few facilities
 can be obtained, by making assumptions,  from the data supplied by Texaco
 (C.2)  and the EPA analysis of the SCAQMD data (C.4).   These data are
 shown in Table C-l.
     For the Texaco data, initial  leak frequency for each process unit
 was derived by assuming that the first period for which leak monitoring
 data was reported was  indeed the first time the unit was monitored.
 Therefore, the percent of components found leaking at the first monitoring
 period is the initial  leak frequency.  The initial leak frequency for
 gas components varied  from 0.0 percent to 14.8 percent, with a weighted
 average value of 6.5 percent.  For liquid service components, the initial
 leak frequency varied  from 0.0 percent to 17.0 percent, with a weighted
 average value of 2.8 percent.  It should be noted that Texaco screens
components not included in EPA's NSPS leak detection  and repair program,
 such as valve flanges and valve  bonnets.  Since these  sources are normally
considered by EPA to have low leak frequencies, and they may represent
                                  C-3

-------
a significant portion of the total number of components, EPA expects the
initial leak frequency determined from the Texaco data to be understated
compared to data based solely on testing of NSPS sources.
     The EPA analysis of the SCAQMD data determined initial leak frequencies
for five process units.  These data show an initial leak frequency varying
from 1.5 percent to 14.5 percent with an average value of 6.2 percent.
     Since the GARB inspection data presented in Section C.3 is from
inspection screening of facilities which have been performing leak
detection and repair routinely, no initial leak frequencies can be
generated.
     In estimating the emission reductions for the refinery NSPS, EPA
used an initial leak frequency of 10.5 percent.1  While the Texaco data
shows initial leak frequencies of 6.5 percent for gas service and
2.8 percent for liquid service components, the data can not be expected
to be comparable to the EPA estimate due to the inclusion of infrequently
leaking components as discussed above.  The initial leak frequency of
6.2 percent found in the SCAQMD study is the result of a valve popu-
lation identical to the EPA estimate basis, and is the result of 7,263
valve screenings.  As the 6.2 percent initial  leak frequency calculated
indicates that EPA may have overstated the initial  leak frequency for
these plants, the LDAR model was run again using the 6.2 percent value.
This run, which included other deviations from the original EPA estimates,
is discussed in detail  in Section C.4, and showed that leak detection
and repair was a cost-effective control  technique even with the lowered
initial leak frequency.
3.1.2    Leak Occurrence Rate
     Leak occurrence rates may be calculated .for all  three data sets..
Table C-2 provides a summary of the average monthly occurrence  rates
for all data provided in the three memoranda.
     Several factors must be considered when comparing these data with
other information on leak occurrence rates.   For the data provided by
Texaco, the occurrence rates stated are  for all  components  screened,
which, as mentioned earlier, include a'significant quantity of  low leak
frequency components.   Therefore,  the Texaco occurrence  rates are
probably understated significantly.   The data  presented  for the CARB
inspections represent valves only.   However, CARB  inspections are
performed by monitoring component  leaks  at a distance  of 1  centimeter
                                  C-4

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 from the component surface,  rather  than  at the  surface as required by
 Method 21.   Since  some  leaks causing an  instrument reading less than
 10,000 ppm  organics at  1  cm would likely read greater than 10,000 ppm
 at the surface,  these occurrence rates are likely to be understated.
 In addition,  the data from Texaco was presented by quarters and for
 the.purpose of estimating occurrence rates, it was assumed that
 monitoring  occurred on  the first day of  each quarter although monitoring
 may have actually  occurred at any time during a 3-month period.  Again,
 this discrepancy could  cause understatement or overstatement of the
 occurrence  rates.
      In  estimating the  impacts of a leak detection and repair program,
 EPA used a  leak  occurrence rate of 1.27  percent/month, as discussed
 in Section  C.4.  As  shown in Table C-2,  the occurrence rates determined
 in the data memoranda varied from 0.05 to 0.6 percent/month for valves.
 The occurrence rates developed from the Texaco data are not compared
 to EPA estimates as  they include measurement of sources that generally
 have  a very low  leak frequency.  Although these occurrence rates
 indicate that EPA may have overestimated occurrence rates in the
 impacts  analysis,  it should be noted that EPA analyzed and consequently
 provided alternative standards for valves where low leak occurrence is
 found.   Additionally, as discussed in Section C.4, EPA re-estimated the
 impacts  of  a leak  detection and repair program based on a lower (0.6
 percent/month) leak occurrence rate, and found the leak detection  and
 repair program to still  be cost effective.
 C.I.3  Small Valves
     The  data provided by Texaco can be used to derive information
 on  the leak characteristics of small valves.   Table C-3 provides a
 listing  of  the leak incidences for small  valves for line sizes  less
 than or  equal to 1  1/2 inches.   For the three monitoring periods for which
Texaco provided data, small  valves accounted for 48 percent, 49 percent,
and 32 percent of all valve leaks found,  or an average for the  three
monitoring quarters of 45 percent of all  valve leaks.   Since it has
been shown  that valve size is relatively  unrelated to  the mass  emission
rate from a leaking valve,2 the small  {
-------
refinery accounted for nearly one half of the valve leak emissions.
Texaco did not provide small valve and large valve equipment counts,
and therefore, the fraction of sources leaking could not be determined.
     Data can also be obtained on the difficulty of performing on-line
repairs on small valves.  As described above, nearly one half of the
leaking valves were 1 1/2" sizes or smaller.  Table C-3 presents a
summary of components in the Texaco program which required off line
repair.  As shown in the table, 68 small valves (<2" line size) and  107
large valves (>2" line size) required off-line repair.  Therefore, it
appears that small valves are as repairable on-line as their larger
counterparts.  It should be noted that Texaco does not attempt to bypass
components for off-line repair prior to unit shutdown, as will be
required by the NSPS, but allows the leakers that are not repaired
in two attempts at simple maintenance in service to continue to leak
until a process unit shutdown occurs.  Therefore, some of the components
which were delayed until shutdown for repair in the Texaco program
would be repaired under NSPS by bypassing the leaking valve for off-
line repair.  It should also be noted that some of the small valves
listed in the table as requiring off-line repair were listed as large
valves by Texaco due to the cutoff difference of 1 1/2" by Texaco and
2" by EPA.  Therefore, the table actually shows a disproportionate
amount of small valves requiring off-line repair.
C.1.4  Repair Effectiveness
     Information can also be obtained from the Texaco data on the
various aspects of repair effectiveness.  Table 2 of memorandum C-2
provides data summarized from Texaco's listing of components for which
repair was delayed (as explained in C.I.3).  As can be seen, 7.4 to
26.5 percent of all leaks were delayed until turnaround for repair during
the first five monitoring periods.  For the sixth and seventh monitoring
periods, 42.5 and 91.0 percent of all repairs were listed for turnaround,
apparently because most' of the leaks occurred in process units for
which turnarounds were scheduled within the monitoring quarter.  For
the five quarters within which shutdowns of major units were not
scheduled, the weighted average percentage of repairs which required
shut down was 16.0 percent, while the weighted average percentage of
repairs  requiring shutdown  for all quarters was 24.7 percent.  As such,
                                  C-6

-------
  it would  appear  that  simple, on-line  repair was approximately 75.3 percent
  effective in the Texaco program.  In  estimating the annual repair labor
  cost*, EPA assumed 75 percent of all  valves can be repaired with simple
  on-line maintenance, and 25 percent of all valves require off-line repair.
  This basis seems to agree very well with Texaco's experience.
  C.I.5  Program Costs
      Texaco provided data on the cost of operating a Control  Techniques
  Guideline (CTG)3 based leak detection and repair program for  a 1-year
  period.  The program underway at Texaco is required by the Louisiana
 State Implementation Plan,  and includes quarterly leak detection and
  repair of gas service components and annual  leak  detection and repair
 of liquid service components.   As  such, the  program is similar to
 Regulatory Alternative II  in the BID for proposed  standards.   Section
 C.2  provides  a  comparison  of the costs provided  by Texaco with the cost
 estimates provided  in the BID  for  proposed standards.   Due to differences
 in costing techniques, the  costs cannot be directly compared.   However,
 by adjusting  both the Texaco and EPA costs slightly, as shown  in the
 memo,  some  comparisons between the two costs can be made.
      For  example, Texaco reported  a  monitoring labor cost  (in  1982
 dollars)  of $72,215/year for the entire refinery.  Since  EPA costs are
 estimated on  a  model  unit basis, the Texaco refinery was broken  down
 into model units  as shown in the memo,  and the EPA monitoring  labor
 costs were totaled for the resulting model units.  The  resulting  EPA
 labor cost for monitoring was approximately 50 percent  lower than the
 Texaco monitoring costs.  This is expected, however, as EPA labor
 cost estimates normally have other costs added to them to determine the
 total monitoring costs, such as  recovery of the monitoring instrument
 capital costs and instrument calibration/maintenance costs.  Since
 Texaco1s monitoring program was performed by  a contractor, the monitoring
 cost reported by Texaco would include these additional  costs.
     Texaco reported an annual  repair cost (in 1982 dollars) of
 $5,301/year.  While EPA estimates are normally much higher than this
figure, Texaco's costs do not include any off-line repairs, as do the
EPA repair cost estimates.   Therefore,  the EPA estimate for these costs
were  made by assuming a 10-minute repair time  for  the simple on-line
                                  C-7

-------
repairs attempted by Texaco, and calculating the EPA cost estimate on
the number of leaks encountered by Texaco.  Texaco's reported  repair
cost of $5,301/year results in a unit cost (for 630 repairs) of  $8.41
per component repair.  Using the EPA estimate of 10 minutes  at $18 per
hour for simple repairs, with 40 percent overhead, results in  a  unit
cost of $4.20 per repair.  Again, the EPA estimate is about  one-half
the Texaco cost.  Texaco made two repair attempts where necessary,
which is not accounted for the EPA estimate.  EPA normally assumes that
25 percent of all valves require off-line repair at 4 hours  per  valve,
and 16 hours of repair labor is required for every pump seal.   Hence,
the EPA estimate used for comparison with Texaco's repair costs  is
significantly lower than the costs presented in the BID for the  proposed
standards.
     The "overhead" cost reported by Texaco  ($57,922) included the
costs of tagging the components and setting up the monitoring program.
Obviously, this cost is not recurring and, as such, is amortized over a
10-year period by EPA.  As mentioned above, EPA estimates normally
amortize non-recurring costs, including the  capital costs of the monitoring
instruments which were included in the "monitoring costs" by Texaco.
As  such, the EPA estimate in this case is significantly higher than the
Texaco cost and corrects for the lower monitoring cost in the EPA
estimate.
     As shown  in Table 4 of Section C.2, the Texaco total program costs
were close to the  EPA cost estimates for a similar program ($61,000 EPA
vs. $71,000 Texaco  after adjustment to reach the  same cost basis),
especially considering the  differences in costing techniques employed.
C.I.6  Monitoring  Time Data
     The  data  provided on the California Air Resources Board (CARB)
 refinery  valve  inspection program included the  "time monitored" for
 each  component.  The CARB data  as.presented  in  Section C.3 includes
 data  from inspections in 12 refineries with  a total of 93 process
 units,  or 6,497 components.   For these process  units, monitoring time
 varied from  0.61 to 1.1 minutes/valve, with  a weighted average value of
 0.9 minutes/valve.   In the  BID  for  proposed  standards, EPA estimated
 1 minute/valve,  which  is nearly identical to that found  in the CARB
 inspections.
                                   C-8

-------
C.I.7  References for Section C.I

     1.  VOC Fugitive Emissions in Petroleum Refining Industry - Background
         Information for Proposed Standards, EPA 450/3-81-015a, November
         1982.  Docket Item Number II-B-1.*

     2.  Memo, T.L. Norwood, PES, Inc., to Docket A-80-44,  Small Valve
         Repair Cost Effectiveness.  September 26, 1983.   Docket Item
         Number II-B-8.*

     3.  "Control of Volatile Organic Compound Leaks from Petroleum
         Refinery Equipment"  EPA450/2-78-036.  June 1978.   Docket
         Item Number IV-A-6.*

     4.  Assessment of Atmospheric Emissions from Petroleum Refining:
         Volume 3 Appendix B.  EPA-600/2-80-075c, April  1980.   Docket
         Item Number II-A-19.*

     5.  Fugitive Emission Sources of Organic Compounds  - Additional
         Information on Emissions, Emission Reductions,  and Costs.
         EPA-450/3-82-010, April  1982.  Docket Item Number  II-A-41.

*Document numbers refer to entries in Docket A-80-44,  which can be
 found at the U.S. Environmental  Protection Agency Library, Waterside
 Mall, Washington, D.C.
                                 C-9

-------













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-------
                     Table C-2.   AVERAGE  LEAK OCCURRENCE  RATES
Refinery .
Texaco; Convent, La.
Texaco; Convent, La.
Tosco; Bakersfleld, Ca.
Exxon; Benicia, Ca.
Chevron; Richmond, Ca.
ARCO; Carson, Ca.
Mobil; Torrance, Ca.
Fletcher Oil; Carson, Ca.
Champlin Oil; Wilmington, Ca.
Shell Oil ; Carson, Ca.
Chevron; El Segundo, Ca.
Newhall; Newhall , Ca.
Powerine; Sante Fe Springs, Ca.
SCAQMD Summary
Proposal BID Basis
Component Type
All
All
Valves
Val ves
Valves
Valves
Valves
Valves
Val ves
Val ves
Valves
Valves
Valves
Val ves
Valves
Service
Liquid
Gas
Gas and Liquid
Gas- and Liquid
Gas and Liquid
Gas and Liquid
Gas and Liquid
Gas and Liquid
Gas and Liquid
Gas and Liquid
Gas and Liquid
Gas and Liquid
Gas and Liquid
Gas and Liquid
Gas and Liquid
No. of
Sources
10,082
4,736
326
858
803
591
338
317
157
816
602
152
576
7,263
—
Occurrence
Rate3
(Vmonth)
0.08.
0.6
0.05C
0.6C
O.ic
0.2C
0.3=
0.4C
0.2C
0.2C
0.2C.
O.ic
0.4C
0.6d
1.276
a                               •                              !
 Average values weighted by number  of  sources as described  in Footnote b of Table C-l
b
 From Section C-2, Table 1, weighted average for refinery.  Leaks defined as greater than
 10,000 ppm organics concentration.

 From Section C-3, Table 1.  Leaks  defined as greater  than  or equal to 10,000 DDID oraanics
 concentration at 1 cm from source.
d
 From Section C-4, Table 4, weighted average of 5 units in  two refineries.
e
 From Reference 1.
                                       C-ll

-------
                Table C-3.  SMALL VALVE DATA SUMMARY
Moni tori ng
Quarter
4Q 1981
1Q 1982
2Q 1982
3Q 1982
1Q 1983
2Q 1983
3Q 1983
Small Valve sb
Requiring
Small Valve3 Large Valve3 Off Line
Leaks Detected Leaks Detected Repair
5
15
93 102 11
51 53 4
- - 2
24 50 11
20
Large Valvesb
Requiring
Off Line
Repai r
10
14
21
2
7
19
34
From Section C.2 Table 3; small valves are those valves  less  than  or
equal to 1 1/2".  "-" indicates that no data was provided  by  Texaco.

Small valves defined as less than or equal  to 2".   From  Section C.2,
Table 2.  Therefore, the "small valve" listings  in  these columns would
include some of the "large valves" from the "leaks  detected"  listings
(those valves greater than 1 1/2" and less than  or  equal to 2".
                                 C-12

-------
         Section C.2



TEXACO DATA SUBMITTAL SUMMARY
             C-13

-------
TO:

FROM:

SUBJECT:
                                                A.-8.0-44 ..  •

                MEMORANDUM             IV-B-22

                                  DATE:  November 11, 1983

Docket A-80-44

T.L. Norwood, P.E., Pacific Environmental  Services, Inc.  /'tj

Review and Summary of Leak Detection and Repair Program
Data Supplied by Texaco, U.S.A.
Introduction

      This memorandum summarizes the data supplied by Texaco, U.S.A as
comments on the proposed new source performance standards for fugitive
VOC emissions from petroleum refineries^ and in response to EPA requests
for additional information to clarify their original submittal.2>3
This memorandum summarizes only those data supplied by Texaco that were
sufficiently detailed to allow comparison with estimates provided by
EPA in the background information document (BID) for the proposed
standards.4  The data supplied by Texaco were not supported by listings of
component types for the process units (i.e., Texaco specified how many
components were in each unit but did not break the unit totals into types
of components).  Some of the Texaco data, however, were sufficiently
detailed to allow analysis.

Data Assumptions and Deviations with NSPS Programs

      The Texaco facility for which the data were generated is subject
to the State Implementation Plan for the State of Louisiana, which is
based on the refinery CTG5 requirements.  The leak detection and repair
program underway at the Texaco facility is, therefore, based on quarterly
leak detection and repair of gas service components, annual  leak
detection and repair of liquid service components, and weekly visual
inspection of pump seals.  This program corresponds roughly to Regulatory
Alternative II in the BID for proposed standards.  There are, however,
differences in the Texaco program and the BID Regulatory Alternative II
program, as follows:

      o   The Texaco program includes screening of certain flanges,
          capped lines and other components not required in  the
          NSPS alternatives.  Since EPA believes these components have
          very low leak frequencies, their inclusion in  a leak detection
          program would lower the overall  leak  frequency from that
          expected for a normal  NSPS component  mix.   These "non-leakers"
          could represent a very significant portion of  the  total
          components monitored.
                            C-14

-------
        ©    The  Louisiana SIP defines leaking components as those components
            with surface organic concentrations of greater than 10,000 pom
            while the  refinery NSPS defines leaks as greater than or      '
            equal  to 10,000 ppm surface organic concentrations.  Those
            sources reading 10,000 ppm are thus considered leaks by the
            NSPS and not considered leaks by Texaco.  Although this
            appears to be a minor difference, operators monitoring
            components may record the monitoring instrument readings in
            rounded numbers, with sources reading across a range beinq
            recorded as "10,000" ppm.   These sources would be considered
            non-leakers by Texaco, reducing the measured leak incidence rate.

       •   Texaco uses OVA® leak detectors,  which are calibrated
           with hexane at approximately 5,000 ppm.   Method 21, as used
           in the refinery NSPS,  currently specifies calibration with
           methane or hexane at approximately 10,000 ppm.   The difference
           in calibration  technique may result in small  differences in
           the leak readings (and therefore  the number of  leaks).
           However, EPA feels  that the  differences  in  leak readings
           caused by  the calibration  differences  should be small   if
           any.                                                  '

 Data Summary

       Using the assumptions described  in  the  footnotes  to  the tables
  •5uwrn,able.to Summar1ze the data collected by  Texaco  for comparison
 with EPA  estimates for  several leak detection  and repair  program
 parameters.  These data must be used judicially, with careful attention
 given to  the assumptions and program specifics stated.  These data  are
 presented in Tables 1 through 4, as follows-
      Table  1

      Table  2

      Table  3

      Table  4

References
Leak frequency and occurrence rate data

Delay of repair data

Small valve vs. large valve leak count data

Program annual  costs.
1.  Letter, J.M. McCrum, Texaco USA; to Central  Docket Section  EPA-
    Comments on Proposed NSPS for Fugitive VOC Emissions from Petroleum
    Refineries.  April 22, 1983.  Docket Item Number IV-D-25a.

2.  Letter, J.J. Lennox, Texaco, USA to R.E.  Rosensteel, U.S. EPA-
    September 2, 1983.  Docket Item Number IV-D-33.*

3.  Letter, J.J. Lennox, Texaco, USA to R.E.  Rosensteel, U.S. EPA-
    October 14, 1983.  Docket Item Number IV-D-36.*

4.  BID for proposed standards.   Docket Item  Number III-B-1.*
                                  C-15

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5.  "Control of Volatile Organic Compound Leaks  from Petroleum Refinery
    Equipment."  EPA-450/2-78-036.  June 1978.   Docket Item  Number
    II-A-6.
*Docket items refer to Docket Number A-80-44 in  the  EPA  Central Docket
 Section, Waterside Mall, Washington, D.C.
                            C-16

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Table 1.  ESTIMATED RATE OF LEAK OCCURRENCE FOR TEXACO DATA -  GAS  SERVICE  COMPONENTS3
Process Unit
Number of
. Components
VW/V8U/&OU
ton





KCU
US'





HTH-J
(,01




' Date b Percent
Screened Leaking
10/11 1,0
l/?i I.I
f/fi /*
1/11 ~ %
'/M *•*
Y« «,7
V« i. a
i*< i.t
•/to *•**
¥/»! «.«
7/r* 0.*?
'A3 '•»
f/rc «•'*
7/,3 o.n
/o/?i 4.9
'Al A.e
V*J. /.r
7/81 /.I
>/«3 /.«
t^3 0.3
7/j., 
-------
Table 1.  ESTIMATED RATE OF LEAK OCCURRENCE FOR TEXACO DATA
            GAS SERVICE COMPONENTS (continued)
Process Unit
Hunber of
Components
Cfty
fs-0




Atxr
**3




HTU-l
1A6



/»eu
JS-7


Date h Percent
Screened0 Leaking
10/JI .10.1
1/31 ?."*
*Ax a.«f
7/tt M
i/w '•'
7/w a.*
M/fi /.*» •
lAl *./
7/ti «•*
J/tt W
f/«5 W
7/J3 A4
/«/*! ' 1.3
l/tt 3.3
«*/% -*•
7/>* «
'/ 5i
l/w /^
4/83 •/.00
3 i
"' O.O c) O.oa
& °->l °-(> is- a.o to
3 ** 1* ./9 0.067
3 0.2* 1.2. t
                        C-18

-------

Table 1, ESTIMATED
6
RATE OF LEAK OCCURRENCE FOR TEXACO DATA
GAS SERVICE COMPONENTS (continued)
Process Unit Date b Percent Months
Number of Screened Leaking Between
Components Tests
T6-TU /r
/pi j /?! O.O J
H~/?2. ^•'3 ^
7/?i -^
/ /sa 2.3 &
f/W ^.s* 3
7/?3 ^^ 3
y-
TffG. lofcl l>2
^LfO //fi JJ 3
^/52. -?*
7/fl tf.M 3
//M tf.3 '6
^AJ ?,s 3
7/?j /.7 3
Test-to-test Cumulative Percent Months from 30-day
30- day Leaking from H Beginning of Occurrence from
Occurrence Beginning of Test" Test Beginning of Teste
— — - - '
0,O O.O 3 °'°
— — ~
o.o o.o 3 o.o
o.o o.o ? °.o
o.o o.o 12. o.o^
O.O ' '"'
-
0.11 O.so 3 0,11
0,23 /.£• 4" 0.2.S
0.0 1.5- 1 0-*7
O.o i.f is- °'lo
OM %.o /J 0.1 1
0,0 2.0 H 0.0°!$
.
0,0 0.0 ' '3 O.O
0.0 0,0 (> 0.0
• -
0.3? a.3 6 o.3^
1.^" fi.? 9 C?.76
0,77 9./ / 2. 0.76f

- - • —
/,; 3.2 '3 A/*
* • «•
0.2.7 0.93 3 0.^7
/./ 7. /3 r 0.7?
^•2 /f.¥ /Z /.i«
0.5-7 J7.J /.r ; /u*
C-19

-------
                Table 1.   ESTIMATED RATE  OF LEAK OCCURRENCE FOR  TEXACO DATA
                                 GAS SERVICE COMPONENTS  (continued)'
Process Unit   'Date  h   Percent    Months
 Huesber of   Screened    Leaking    Between
 Components                         Tests
                   Test-to-test  Cumulative Percent   Months from        30-day
                     30- day       Leaking from  d   Beginning of  Occurrence from ^
                    Occurrence   Beginning of Test"      Test      Beginning of Test5
    Pw
              1/93
              1/93
              7/93
 -9-
JT.3
6.*
0.0
                                   3
                                   3
                      0.70
                      0.10
1.1
0.0
 5". 3
11.7
11.7
It
                                               0.10
                                               0.10*
7-30
0.18
                                           C-20

-------
      Table 1.   ESTIMATED  RATE OF LEAK OCCURRENCE  FOR TEXACO  DATA  - LIQUID SERVICE
 ™
Components
            c Date J  ^cent
            Screened   Leaki"9
                                   Months     Test-to-test  Cumulative Percent
                                   Between      30- day       Leaking from   :
                                    Tests      Occurrence0.  Beginning of Testd
               Months from        30-day
               Beginning of   Occurrence from
                 Test      Beginning of Test
YPS/Veu/cou  ifa

              7/»3
                        -*
                                                              0,10
                                                                               11-
                                                                                              0.06
 PCCU
                         o.3[

                         o.31
                                                              0.31
                                                                                 If
                                0.02.1
   HTU-1

    
-------
                     Table  1.   ESTIMATED RATE OF  LEAK OCCURRENCE FOR TEXACO DATA

                                        LIQUID  SERVICE (concluded)
Process Unit    Date  b   Percent
 Nuaber of   Screened    Leaking
 Components
Months     Test-to-test  Cumulative Percent    Months from       30-day
Between     30- day       Leaking from  ri    Beginning of   Occurrence from
           n	i.  B—I__.I	* -r-^u       Test      Beginning of Test
                               Tests
                                         Occurrence   Beginning of Test
 ETU/COB    7/92.        0.0

   91        I A3        0.0
                                              0.0
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                                        C-22

-------
                                    10
                          Footnotes  to Table 1
 aThe number  of gas  and  liquid components during the monitoring periods
  October 1981  through September 1983 are assumed to be constant and
  are based on  the component summary in Table 1 of Docket Number A-80-
  44-lV-D-25a (page  8).

 bThe date screened  is based on the assumption that components were
  monitoring  the  first month of the quarterly monitoring period. In
  reality, the  components could have been monitored at any time during
  the quarter.

 cBased on all  leaks from the previous inspection being repaired and
  an  assumption of linear leak occurrence.  The leak frequency (percent
 •leaking) divided by the number of months between tests estimates  the
  30-day  leak occurrence rate.

 dBased on all  leaks at initial  inspection being repaired and assuming
  that if the other inspection had not occurred, the leaks could have
  accumulated from inspection to inspection (leaks found are new leaks
  at  each inspection).

 eSame methodology as discussed in footnote b,  except based on the
  initial  inspection.

 fThese are the overall  average monthly  occurrence rates for a continuous
  series  of screenings.

SThese data could not be determined because the breakdown of gas and
 liquid components that were found leaking was not available.
 Therefore,  this screening date begins  a  new monitoring period for
 the purpose of calculating the cumulative leak  occurrence rate.

"Unit not in  operation  this quarter.

""Unit was shut down  or  partially  shut down.

    liquid components monitored  in 1983.
                                C-23

-------
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                                        13
             Table 4.  COMPARISON OF REPORTED TEXACO LEAK DETECTION
                      AND REPAIR PROGRAM COSTS WITH EPA COST  ESTIMATES
      ITEM
    TEXACO
(1982 dollars)1
    TEXACO
(1980 dollars)2
 EPA ESTIMATE
(1980 dollars)
 Monitoring Labor
   Repair Labor
  Overhead/Setup

Total Program Costs
  $ 72,215/year
     5,301
    57,922

  $135,488/year
   $59,060/year
     4,335
     7.7205

   $71,115/year
$30,740/year3
  2,646/year4
 27,500/year6

$60,886/year
 From Reference.

"1980 dollars calculated using Chemical Engineering Cost Indices:
       December 1982 == 316.1; May 1980 = 258.5; Ratio = 0.8178

 EPA Monitoring labor based on 4 each of Model Units A, B, and C
 per Table 4a, with Proposal BID Table F-12 labor estimates of
 33.7 hours/year (A), 68.8 hours/year (B); and 202 hours/year (C).
 Labor at $18/hour, with 40% overhead added.

             $/year s (33.7 + 68.8 + 202) hours x 4 units x $18/hour x 1.4

                    = $30,740

 EPA estimate based on 630 leaks detected in first 4 quarters (Table 2)
 by Texaco, at 10 minutes for each repair attempt.  Labor at $18/hour
 with 40% added overhead.

             $/year = 630 x 18 x 1.4 x 10/60 = $2,646/year
5
 EPA estimate based on amortizing initial setup costs for 10 years at
 10% interest (capital cost x 0.163) and deflating to 1980 dollars
 per footnote 2 method.

 EPA estimate based costs of operating and maintaining 5 pairs of
 monitoring instruments  (at $5,500/year each per BID for proposed
 standards Table 8-9) =  $27,500/year.
                                     C-26

-------
                                 Table 4a
                  FUGITIVE  EMISSIONS  COMPONENTS  SUMMARY3
UNIT
Vacuum Pipe Still, Visbreaking
Unit & Gas Oil Unit (VPS)
Fluid Catalytic Cracking
Unit (FCCU)
Hydrotreati ng Unit #1
(HTU-1)
Catalytic Reforming Unit
(CRU)
Alkylation Unit
(ALKY)
Hydrotreati ng Unit #2
(HTU-2)
Amine Regeneration Unit
(ARU)
Tail Gas Treating Unit
(TGTU)
Effluent Treating Unit & Co
Boilers (ETU/COB)
Tank Car & Truck Loading
& Dock (LOG)
Tankage, Flares & Additives
(TKG)
Pipeways
(PW)
TOTAL
No
Gas
1016
715
607
450
263
926
157
24
200
44
240
94
4736
. of Components
Liquid Total
2440
1934
951
401
1203
542
425
68
81
221
1688
128
10082
3456
2649
1558
851
1466
1468
582
92
281
265
1928
222
14818
EPA
Model
Plant
C
C
C
B
B
B
B
A
A
A
C
A

a.
This Table is presented by Texaco as Table 1 in Reference 1.
Model Plant designations added by EPA are based on the similarity
of these model  plants to the number of pieces of equipment
shown for the Texaco units.
                                   C-27

-------
                 SECTION C.3

SUMMARY OF AVAILABLE CALIFORNIA AIR RESOURCES
            BOARD INSPECTION DATA
                      C-28

-------
  TO:

  FROM:

  SUBJECT:
                             MEMORANDUM
                                                      A-80-44


                                                      IV-B-18
                                           DATE:  November 11, 1983

       Docket A-80-44


       T.L. Norwood, P.E., Pacific Environmental Services, Inc.   /\ tf

       Review and Summary of California Air Resources Board (CARB)
       Refinery Valves Inspection Program Data
  Introduction


     This memorandum summarizes the California Air Resources Board (CARB)
       eth/nfM-ry fU9itl'Ve emiss1ons Inspection data received by EPA.
 sta dar5s foPr Jnr JS??* per °d-for 'he Pr°P°sed "« source performance
 standards for VOC fugitive emissions from petroleum refineries
 commenters on the standards (IV-D-8, IV-D-14  IV-D-15  IV n ?

 anTreoai ^ ™ ^ ani 3nal^e <"« on Calffor'ni  "le^k
 Is a 2Ii\ ?r°9,rKm-  °r the commenters u*ed the California program
 as a basis for their comments.  EPA received the results of several PARR
 inspections, in three separate submittals, as follows:

     o     Letter from ARCQl with  data from four facilities.
                          H            A1r  Quality  Mana9ement District
                     with  data  from four  bay area facilities.
                      -,      Coast Ai r Quality Management District
                     with  data  from eight facilities.
 Data  Description
                      -.     the CARB inspections were the field data
    1.
    2.
    3
    4.
    5.
    Source ID #
    Time monitored
    Date Monitored (for entire process unit)
    Date last monitored (for entire process  unit)
    OVA® leak detector reading
6.  TLV® leak detector reading
7.  Component line size,  rounded to nearest  inch
    Component type and service
    Pre-and post-calibration results.
    8.
    9.
             11,      6re found to Provide information  that  could  be used
  ic        Hleak occurrence rates and estimate average  monitoring  times
This memorandum presents these data analyses                «» i"a  nines.
                             C-29

-------
GARB Data Analysis

     CARB is currently performing a separate analysis of these data, as
they relate to local rules.  CARB's analyses will  include the following
differences from this analysis:

    o   CARB is to "correct" the leak readings based on the measured
        calibration drift in the monitoring instrument between pre-test
        and post-test calibrations.

    o   Those sources measuring 10,000 ppm are not considered leaks by •
        CARB, while those measuring greater than 10,000 ppm are leakers.
        EPA defines greater than or equal to 10,000 ppm a leak.

    o   CARB is attempting to change the calibration basis from methane
        to hexane for some data.

CARB should publish the results of their analysis in the near future.

EPA Data Analysis

    From the field data received, EPA calculated the leak frequency
based on those valves reading greater than or equal to 10,000 ppm organics
and leak occurrence rate on a process unit and overall refinery basis.
Leak frequency was calculated as the number of leaks divided by the
number of components monitored, and expressed as a percentage.  The 30-day
leak occurrence rate was calculated by dividing the leak frequency by the
number of months elapsed since the last inspection, and again expressing
the result as a percentage.  It should be noted that the sources were
monitored with the  instrument probe at 1 cm from the source.  Under NSPS
requirements (Method 21), the instrument probe must be placed at the
surface of the component.  While the relationship between the organics
concentration and the distance form the source is not known precisely,
readings at  1 cm from the source should normally be lower, reducing the
measured leak frequency compared to measurements taken at the source.

    Table  1  provides a summary of the data received by EPA on a refinery
basis.  These data  are developed in Tables 2 through 13 for each refinery.
These data should be used judiciously, as suggested by the following
general comments on the CARB data.

    Four Century Model 108 OVA were used along with four Bacharach TLV
for this survey.  The AQMD expressed concerns on the accuracy of TLV
readings as  calibration knobs are easily moved, precalibrations of
TLV's were not always done with gas (however, post-calibration were), two
teams did  not use gas for either pre or post-calibrations, probe tips were
sometimes contaminated, TLV's were not allowed to stabilize, and some TLV
readings were potentially questionable due to be saturation of instrument
on low scale.  One  CARB diTutor had leaks in the diTutor probe resulting
in questionabTe readings and another required odd computations to obtain
a,reading.   OVA data from the first day at SheTl and the second day at
Fletcher are questionable because one OVA did not hold calibration well.
These data are footnoted on Tables 8 and 10.  Some leaks are noted in
excess of  10,000 ppm when the instrument was calibrated on methane.
                              C-30

-------
Equivalent readings would be 15,800 ppm for AQMD rule based on 10,000 ppm
hexane.  Also, the determination of the background reading varied from
CARB team to team.

    As mentioned above, EPA also calculated the monitoring time required
for each process unit.  These times were calculated by subtracting the
start time for a given process unit from the end time, and dividing the
result by the number of components in the unit.  Where gaps in the
monitoring time from one component to the next of more than 15 or 20
minutes were noted, the time of these gaps was subtracted from the
monitoring time.  Shorter gaps (< 15 minutes) were not subtracted, however,
to allow for normal operator breaks, instrument flameouts, and other
normal break periods.


References

1.  Letter, P.M/Kaplow, ARCO to Central Docket Section,  U.S.E.P.A.;
    Results fif Refinery Inspections.  June 15, 1982.   Docket Item
    Number IV-D-31.*

2.  Memo, T.L.  Norwood, PES, Inc., to Docket A-80-44,  Local  Air Quality
    Management District Refinery Inspection Data.   November 21, 1983.
    Docket Item Number IV-B-18.*

3.  Letter, D.M. Newton, SCAQMD to S.R.  Wyatt, U.S.  E.P.A.;  Refinery
    Inspection  Data.   October 24, 1983.   Docket Item Number IV-D-37.*   .

*Document numbers refer to entries in Docket A-80-44,  which can be
 found at the U.S.  Environmental  Protection Agency Library,  Waterside
 Mall, Washington,  D.C.
                                   C-31

-------
       Table 1.   SUMMARY  OF CALIFORNIA AIR  RESOURCES  BOARD  INSPECTION DATA
REFINERY
LOCATION
Tosco "Corp.
Bakersfield
Shell Oil Co.
Martinez
Exxon Co.
Benicia
Chevron USA
Richmond
Arco
Carson
Mobil Oil Corp.
Torrance
Fletcher Oil
Carson
Champlin Oil
Wilmington
Shell Oil
Carson
Chevron USA
El Segundo
Newhall
Newhall .
Powerine
Santa Fe Springs
TOTAL 6
NUMBER OF
SOURCES
INSPECTED
326
816
858
803
591
338
317
435
683
602
152
576
,497
MONITORING
TIME
(min/source)
0.61
1.1
0.72
1.02
• 0.8
1.1
1.1
0.9
0.9
1.1
1.1
0.8
0.9
OVAd
PERCENT
LEAKING
0.31
3.7
3.6
2.1
1.5
3.6
2.2
1.4
1.3
3.2
0.7
2.1
2.4
b
C
0 -
2.4
2.3
1.1
0.5
1.6
0.6
0.3
0.4
2.4
0.0
0.9
2.0
955L
.1.
0.93
-5.0
- 4.9
- 3.1
- 2.5
- 5.6
- 3.8
- 2.5
- 2.2
- 4.0
- 2.1
- 3.3
- 2.8

30 DAY .
OCCURRENCE0
0.02
1.27
1
.0.50
0.17
0.21
0.31
0.42
0.27.
0.24
0.25
0.14
Q. 51
0.47
' PERCENT5
LEAKING
0.61
4.3
4.0
1.7
1.5
3.3
1.9
1.1
1.2
2.3
0.7
1.6
2.3
TLV
95%
C.I.C
0-1.47
2.9-5.7
2.7-5.3
0.8-2.6
0.5-2.5
1.4-5.2
0.4-3.4
0.1 -2.1
0.4-2.0
1.1 -3.5
0.0-2.1
0.6-2.6
1.9-2.7

30 DAY ,
OCCURRENCE
0.05
1.61
0.56
0.14
0.18
0.29
0.36
0.21
0.21
0.18
0.14
0.39
0.41
a. OVA refers to the Foxboro, Inc.  organic vapor analyzer; TLV refers to the Bacarach, Inc.  "Sniffer"
   organic vapor analyzer.
b. Leaks are defined as those sources measuring greater than or equal to 10,000 ppm organics concentration
   at a distance of one centimeter.
C. 95$ C.I. = 95 percent confidence interval of percent leaking.  This is estimated as P t'2SD, where P =
   percent leaking;                           	
                   SO » standard deviation =  ./ P(IOO-P)   , and N = number of sources inspected.
d. The 30-day occurrence rates are calculated using  the number of  sources inspected, the number of days from
   the last plant inspection to the CARB inspection, and the measured percent leaking:
30 day occurrence rate
                                              and  Plant-weighted rate =  E(Neach process un1t X 30 day occurrence)
                               periods
                                                                                  N
                                                                                  ,total sources  inspected
                                                     C-32

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           SECTION C.4

SOUTH COAST AIR QUALITY MANAGEMENT
   DISTRICT STUDY DATA SUMMARY
               C-45

-------
                  UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                          Office of Air Quality Planning and Standards
                         Research Triangle Park, North Carolina 27711

                                   SEP 1  5 1983
                                                                     A-80-44

                                                                     iv-jB-n
MEMORANDUM

SUBJECT:  Review of ORD Study of South Coast Air Quality Management
          District Fugitive Emissions

FROM:
TO:
          K. C. Hustvedt
          Petroleum Section, -CPB/ESED (MD-13)

          Games F. Durham, Chief
          Petroleum Section, CPB/ESED (MD-13)
BACKGROUND AND CONCLUSIONS
™"*~^"^~"™—™'™~™—"""^"^^^^"™"™-™"   ^^™HM^^™M^^^™™«^                                       ^

     Several years ago, we requested that the Office of Research and
Development (ORD) analyze the effectiveness of local rules at reducing
fugitive emissions.  The ORD contracted with Radian and GCA to perform
fugitive emission testing at two refineries operating under the South
Coast Air Quality Management District (SCAQMD) Rule 466.1  on leakage from
valves and flanges.  As possible, the contractors also gathered historical
data on the implementation of Rule 466.1 and other information.  The
results of this study are reported in "Evaluation of the Maintenance
Effect on Fugitive Emissions from Refineries in the South  Coast Air
Quality Management District," EPA-600/7-82-049, January 1982.1

     An analysis of the absolute effectiveness of local rules based on
the historical Rule 466.1 implementation data is not possible because
of changes in the sample populations from test to test. However,
several general observations can be made from this study.   The rate of
leak occurrence found in this study is similar to what the results  of  the
maintenance study^ would predict for the given initial leak frequencies.
At one of the refineries where maintenance was performed whenever the
contractor found a leak, greater than 99 percent of the leaks were
repaired within 2 days with a resulting calculated emission reduction  of
95.7 percent.  Further, as an indicator of the reliability of portable
detectors at identifying leaking sources, 97.3 percent of  the sources
identified as leaking by the original inspection team were also identified
as leaking by a second inspection team.  Overall only 2 of the 521  sources
screened  (99.6 percent) by two independent screening teams had different
leak/no leak determinations.  Regarding the ability to screen all valves
in a process unit, 12.3 percent of the overall valves were not screened
for various reasons, including high background organics concentration,
location, and instrument problems.  Only 3.3 percent of the overall valves
could not be monitored because they were difficult to monitor, without
                                     C-46

-------
  extraordinary aids such as scaffolding or a cherry picker.   Finally  by
  assessing pump seal maintenance records, it was determined that pump seal
  concentration is essentially independent from seal age and that both   -
  operating and spare mechanical pump seals are replaced on average every 1
  to 1.5 years with 90 percent of the seals replaced within 3 years.   All
  of these data support the estimates we made in the development of the
  proposed refinery equipment leaks new source performance standard (NSPS)
  Using the results of the SCAQMD study in Radian's leak detection and
  repair (LDAR) model-3, I estimated the cost effectiveness of routine
 monitoring programs.   This analysis shows that replacing their present
  programs with monthly monitoring would have a cost effectiveness of about
 50 dollars per megagram ($/Mg)  and that the incremental  cost effectiveness
                            quarterl* Storing for these plants would be
 DISCUSSION

      The analysis of the effectiveness  of Rule 466.1  in  the SCAQMD study
 relies upon historical  data  developed by  the  refineries  in their imple-
 mentation of Rule 466.1.   Reviewing  the trend in  percent of sources
 leaking from inspection to inspection should  give an  indication of the
 effectiveness of Rule 466.1  at reducing fugitive  emissions.  In this
 testing,  however,  the number of sources tested often  changed more than
 the number of sources found  leaking, indicating that  some unknown portion
 of the leaks detected after  the first inspection  may  have been leaking at
 the first inspection but  were  not  screened.   For  this reason, no attempt
 has been  made to estimate the  overall effectiveness of Rule 466 1 at
 reducing  fugitive  emissions.   There are data  in the SCAQMD study that can
 be compared to numbers  we used in  the proposed refinery equipment leaks
 NSPS  and  these are discussed in the following sections.

 Occurrence  Rate  -  Table 4-16 in  the SCAQMD report presents historical
 data  on the implementation of  Rule 466.1.   These  data are used to estimate
 leak  occurrence  in Table  1 based on the following assumptions:

 r*  A1' ,A11  Jeaks are  screened  and repaired on the last day of the month
 (to develop the  time  intervals).

      2.  Leak  recurrence  is  insignificant because of the follow-up screeninq
 and maintenance performed under Rule 466.1 for repaired leaks.

      3.  Changes in instrument, instrument operator,  calibration gas  and
 number of sources screened have a small  effect on the percent  of sources
 found leaking.

     4.  If no leak detection and repair were performed,  leaks would
 accumulate from the previous  inspection  to the next  inspection  (to  estimate
 overall occurrence rates from the beginning to the end of the test  period).

All of these assumptions appear reasonable except possibly that  there is
 only a small effect from the  change in  number of  sources  screened.
                                   C-47

-------
      Table 1  shows  that the 30-day occurrence  rate from test to test ranged
 from 0.24  to  1.80 percent  and that the 30-day  occurence rate for the
 whole test ranged from 0.35 to 0..94 percent  for the five units tested.
 Table 2  shows a  comparison of these overall  occurrence rates to the ones
 used In  the proposed  refinery equipment  leak NSPS.  As you can see, these
 rates compare quite favorably, indicating refineries operating under the
 SCAQMD Rule 466.1 have similar occurrence rates to those we estimated on
 the  national  average  in developing the refinery equipment leaks NSPS.

 Maintenance Effectiveness  - Chevron used Radian's testing as their annual
 check under SCAQMD  Rule 466.1.  For this Rule, all .leaks must be repaired
 within 2 days.   Of  the 347 valve  leaks detected by Radian, 344 were
 repaired by means ranging  from simple packing  adjustment to sealant
 injection  and valve replacement.  The remaining three valves were taken
 out  of service.  This equates to  a maintenance effectiveness of 99.1
 percent  within 2 days, as  opposed to the estimate of 90 percent repaired
 within 15  days in the refinery leaks NSPS.   The reduction in mass emissions
 due  to maintenance  was estimated  based on screening valves to be 95.7
 percent.   In  the refinery  leaks NSPS, successful leak repair was estimated
 to result  in  an  emission reduction of 97.7 percent.  As with occurrence
 rates, the estimates  of maintenance effectiveness in the SCAQMD study
 compare  favorably with those used in the refinery leaks NSPS.

 Test Method Reliability -  As in all research efforts, a quality assurance
 (QA)  check was performed during the SCAQMD testing by the EPA contractors.
 As a part  of  this QA  effort, approximately 5 percent of the sources were
 independantly screened by  a second screener.   In this QA testing, 37
 sources  were  found  to be leaking  during  the  initial screening and 36 of
 these sources, or 97.3 percent, were also found to leaking during the
•second screening.   A  total of 521 sources were screened in the QA effort,
 and  all  but 2 of the  sources were either found to be leaking by both
 screeners  or  found  not to  be leaking by  both screeners.

 Difficult-to-Mom'tor  Sources - During fugitive emission screening programs
 by the EPA contractors,  several sources  are  not monitored for various
 reasons.   To  assess the magnitude of this problem, Radian identified the
 reasons  sources were  not screened during their testing.  Table 3 summarizes
 these results from  Table 4-1 of the SCAQMD report for gas and light-11quid
 service  valves only.   As shown in Table  3, most of the sources not screened
 (8.6  percent  of  the overall sources and  almost 70 percent of those hot
 screened)  could have  been  screened if ladders had been provided.   An
 additional  3.3 percent of  the 12.6 percent not screened (about a fourth)
 were  also  not screened because of location, but these sources would have
 needed extraordinary  aids  such as scaffolding or a movable crane (cherry
 picker)  to  have been  screened.  The remaining few sources,  about 0.6 percent
 of the total, that  were  not screened were for temporary reasons,  such as
 the  source  out of service, sampling problems, or the plant not allowing
 the  contractor access  to certain  areas.
                                     C-48

-------
 Pump Seal Replacement - The maintenance  history  of pump  seals was acquired
 by examining refinery records.   Data were available  on 98 pumps with a
 total of 544 seal  replacements.   A comparison of the screening value and
 the months since most recent seal  replacement indicated  a slight positive
 relationship (concentration increasing with  time), but age was not found to
 account for a very significant  portion of the total  variation in screening
 values.   These data are consistent with  our  approach to  controlling pump
 seal emissions, which is based  on random accidents,  mistakes, or catastrophic
 seal failures causing pump  seal  leaks rather than gradual deterioration of
 the seals.   Only a routine  inspection program can quickly identify these
 unpredictable leaks for replacement.  Routine seal replacements or infrequent
 seal inspections would not  be as cost-effective  because  routine replacement
 would cause properly operating  seals to  be replaced  with.no emission reduc-
       1     "U!e infr?^uent inspections  would allow  seals to remain -leaking
   _ An  analysis of  the historical average length of time between seal
 replacements was also performed.  It was found that the average length of
 time between seal replacement was 1 to 1 and 1/2 years and that 90
 percent  of the pump  seals are replaced within 3.years.  In the refinery leaks
 NSPS, we estimated that pump seals are routinely replacaed on the average
 every 2  years, which compares favorably with these findings.

 LDAR Analysis - Several inputs for the LDAR model can be derived from the

 fnnnfc f? °f ^T-' J****^™™ "***> *on* with other necessary
 inputs as documented iji the AID3, to assess the CQSt effect1veness  f     y

 »n *h10?™n£?n1T0JS  f°r ,val Ves 1n SCAQMD refineries.  The new inputs based
 on the SCAQMD study results are compared to the refinery NSPS inputs in
 I*blecJiuJhe 1mtial Percent leaking of 6.2 percent is the average for the
 five SCAQMD units tested.   The emission factor was derived from this initial
 leak frequency using the leak/no leak emission factor calculation techniques
 developed in the AID.  The leak occurrence rate is the average of the
 overall  occurrence rates shown in Table 2.   The emission reduction and
 repair rate are also from the SCAQMD study averages as discussed elsewhere
 i n this memo.

     Although the SCAQMD and NSPS inputs appear similar, the  LDAR model  was
used to determine the extent to which the inputs could effect the cost
effectiveness of routine monitoring programs.   The complete inputs and
outputs of this analysis are attached and the  results  are summarized in
Table 5.   As you can see,  all of the cost effectiveness numbers are rather
 low,  with the highest one, the incremental  cost effectiveness of monthly
over quarterly monitoring, less than 1000 $/Mg.                        y
                                     C-49

-------
REFERENCES;

1.  Evaluation of the Maintenance Effect  on Fugitive Emissions From Refineries
in the South Coast Air Quality Management District, EPA 600/7-82-049,
December 1981.

2.  Evaluation of Maintenance For Fugitive VOC Emission Control, EPA-600/2-
81-080, May 1981.

3.  Fugitive Emission Sources of Organic  Compounds--Additional Information
on Emissions, Emission Reductions, and Costs, EPA-450/3-82-010, April 1982.

4.  VOC Fugitive Emissions in Petroleum Refining Industry—Background
Information for Proposed Standards, EPA 450/3-81-015a, November 1982.

Attachments

cc:  Fred Dimmick, SDB
     Tom Rhoads, PES
     Refinery Leaks Docket
                                    C-50

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C-53

-------
        TABLE 4,  COMPARISON OF SCAQMD STUDY AND REFINERY NSPS LDAR INPUTS
PARAMETER
SCAQMD STUDY
REFINERY NSPSa
Emission Factor (kg/hr)
Monthly Leak Occurrence Rate (%)
Initial Percent Leaking (%)
Emissions Reduction for Successful Repair (%)
Unsuccessful Repair Rate (%)
0.010&
0.6C
6.2
95.7
. 0.9
0.0163
1.27
10.7
97i 7
10
a - From Reference 4.
b - Calculated based on the average percent leaking and the leak/no leak technique
    developed in Reference 3.
c - Average occurrence rate from Table 2.  The quarterly occurrence rate would be
    3 times the monthly rate and the annual occurrence rate 4 times the quarterly
    rate.
                                    C-54

-------
                                    10
      TABLE  5.   COST EFFECTIVENESS'OF ROUTINE MONITORING BASED ON
                       SCAQMD STUDY LDAR INPUTS
Monitoring
Interval
(Mo)
12
3
1
12-33
12-ia
3-ia
Emission
Reduction
(percent)
20.7
47.9 -
54.5
27.2
33.8
6.6
(Mg/yr)
18.1
42
47.8
23.9
29.7
5.8
Net
Cost
($/yr)
- 407
-2870
2580
-2463
2987
5450
Cost
Effectiveness
($/Mg)
- 23
- 68
54
-103
100
940
a - These denote the incremental  emission reduction,  cost,  and cost
    effectiveness between the two monitoring intervals shown.
                              C-55

-------
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-------

-------
                               APPENDIX D
                   MODEL UNIT AND NATIONWIDE IMPACTS
      Attached as Appendix D is a memorandum dated December 13,  1983
that documents the calculation of model  units and nationwide impacts  of
the promulgated standards.
                                 D-l

-------
                                                       A-80-44
                                                       IV-B-24

                          MEMORANDUM

                                     DATE:  December 13, 1983

TO:       Docket A-80-44, Petroleum Refinery VOC Fugitive Emissions
          NSPS

FROM:     Thomas.Rhoads, Pacific Environmental Services, Inc.

SUBJECT:  Calculation of Model Unit arid Nationwide Impacts
     This memorandum documents the calculation of the capital cost,
net annualized cost, and emission reduction resulting from implementation
of the standards.  The impacts are presented for each model unit on a
yearly basis and nationwide in the fifth year of implementation of the
standards.  The basis and method for calculating the model unit and
nationwide impacts are from the background information documents for
the proposed standards and promulgated standards.

     Tables 1 and 2 show model unit and nationwide emission reductions
achieved between baseline and uncontrolled scenarios.  Uncontrolled
means the level of control implemented by refineries in the absence of
any regulations to control equipment leaks of VOC.  Baseline, however,
reflects a nationwide average level of control implemented as a result
of existing regulations (i.e., State and regional) to control equipment
leaks of VOC.  Tables 3 and 4 show model unit and nationwide emission
reductions resulting from implementation of the final standards as the
increment between baseline emissions and the level of emissions following
promulgation of the standards.  As shown in Table 4, 31,100 Mg VOC
emission reduction would be achieved in the fifth year of implementation
of the final standards.  The cost impacts of the final  standards, likewise,
do not include the baseline product recovery credits and costs for
monitoring instruments (those costs incurred by the industry due to
existing regulations).  Net annualized costs to implement the final
standards are derived in Tables 6, 7, and 8.  Implementation of the
final standards would cost approximately $4.14 million (1980 dollars)
with a cost effectiveness, therefore, of about $130/Mg VOC emission
reduction.  The cumulative nationwide capital  costs, calculated in
Tables 8 and 9, are projected at about $17.9 million in the fifth year
of implementation of the.final standards.
                                  D-2

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                      Table 1.  MODEL UNIT EMISSION REDUCTION BETWEEN
                                 BASELINE AND UNCONTROLLED
Equipment
Pressure
Relief
Devices
Compressors
Open Ended
Lines
Sampling
Connections
Valves
Gas
Light
Liquid
Pumps
Total Emission
Alternative II
Regul atory
Alternative II
Emission
Reduction per
Component
Control (Mg/yr)a
Quarterly 0.63
LDR
Quarterly*: 4.3
LDR
Cap 0.020
No Control " 0
Quarterly 0.14
LDR
Annual <* 0.019
LDR
Annual 0.21
LDR
Reduction Regulatory
(Mg/yr)
Baseline Emission Reduction (Mg/yr)e
Regulatory Alternative II
Model Unit Emission Reduction
(Mg/yr)b
A B C
Compo- Sub- compo- Sub- Compo- Sub-
nents total nents total nents total
3 1.9 7 4.4 20 12.6
1 4.3 3 12.9 8 34.4
70 1.4 140 2.8 420 8.4
10 0 20 0 60 0
130 18.2 260 36.4 780 109
250 4.8 500 9.5 1,500 28.5
7 1.5 14 2.9 40 8.4
32.1 68.9 201
18.0 38.6 113
LDR = leak detection and repair

Footnotes on next page
                                            D-3

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         Table 1.  MODEL UNIT EMISSION REDUCTION BETWEEN
                   BASELINE AND UNCONTROLLED (concluded)

aFrom BID for the promulgated standards,  Appendix A,  pages A-4,  7,8,
 9, 10, and 14.
       unit equipment counts are found in Table 6-1 of the BID  for the
 proposed standards.  The model  unit emission reductions  are obtained  by
 summing the products obtained from the per component emission  reductions
 and the number of components per model unit.

cFrom Table 7-1, BID for the proposed standards.  Uncontrolled  emission
 factor - 15.0 kg/d.  Controlled emission factor for quarterly  LDR =
 3.2 kg/d.
      Emission  =
      Reduction
(15.0 kg/d - 3.2 kg/d)  (365 d/yr)T  1 M9  \
 = 4.3 Mg/yr                     V. 1000 kg/
dFrom Table F-3, BID for the proposed standards.   Uncontrolled  emission
 factor =0.26 kg/d
 Controlled emission factor for annual  LDR = 0.209 kg/d

      Emission    = (0.26 kg/d - 0.209 kg/d) 0.365
      Reduction      = 0.019 Mg/yr
eBaseline emission reduction is achieved by industry  using  existing
 levels of control.  About 44 percent of the petroleum refining  industry
 is located in attainment areas for ozone and not subject to  equipment
 leak regulations (uncontrolled),  and about 56 percent is located  in
 non-attainment areas and subject  to State or local regulations
 (Regulatory Alternative II).  Baseline emission reduction  is, therefore,
 calculated as 56 percent of the emission reduction achieved  under
 Regulatory Alternative II.
                                    D-4

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                Table 2.  NATIONWIDE EMISSION REDUCTION BETWEEN
                           BASELINE AND UNCONTROLLED

Model
Unit
A
B
C

Emission Reduction
Per Model Unit
(Mg/yr)*
18.0
38.6
113


Projected
Model Unitsb
96
106
80
TOTAL

Subtotal
(Mg/yr)
1,730
4,090
9,040
14,900
aEmission reductions from Table 1.

bFrom BID for the proposed standards, Table 7-4.
                                     D-5

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r
                            Table 3.  MODEL UNIT EMISSION REDUCTION BETWEEN
                                           NSPS AND BASELINE
Equipment
Pressure
Relief
Devices
Compressors
Open Ended
Li nes
Sampling
Connections
Val ves
Pumps
Emission
Reduction Per
Component
Between
NSPS and
Uncontrolled
Control (Mg/yr)a
Disk 1.4
Barrier 5.5
Fluid
System
Cap 0.020
Closed 0.13
Purge
Monthly 0.10
LDR
Monthly 0.82
LDR
Emission Reduction From Uncontrolled
to NSPS
Emission Reduction From Uncontrolled
to Basel i neb
Emission Reduction From Baseline to NSPSC
Emission Reduction by Model Unit (Mg/yr)
A B C
Compo- Sub- Compo- Sub- Compo- Sub-,
nents total nents total nents total
3 4.2 7 9.8 20 28.'0
1 5.5 3 16.5 8 44.0
70 1.4 140 2.8 420 8.4
10 1.3 20 2.6 60 7.8
380 38.0 760 76.0 2,280 228
7 5.7 14 11.5 40 32.8
56.1 119 349
18.0 38.6 113
z
38.1 80.4 236
              BID  for  the  promulgated  standards Appendix A, pages A-4, 7, 8, 9, 10, and 14.

        bFrom Table  1.

        CRepresents  emission  reduction  per model unit  resulting from promulgation of the
         standards.
                                                   D-6

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             Table 4.  NATIONWIDE EMISSION REDUCTION BETWEEN
                       NSPS AND BASELINE

Model
Unit
A
B
C
Emission Reduction
Per Model Unit
(Mg/yr)a
38.1
80.4
236

Projected
Model Units5
96
106
80

Subtotal
(Mg/yr)
3,660
8,520
18,900
                                              Total
aEmission reductions from Table 3.

bFrom BID for the proposed standards,  Table 7-4.
31,100
                                    D-7

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                      Table  5.   MODEL  UNIT  NET  ANNUALIZED  COST  BETWEEN
                                BASELINE  AND  UNCONTROLLED
Net Annuali zed
Cost Per
Component
Between
Regul atory
Alternative II
Equipment Control and Uncontrolled3
($/yr)
Pressure Quarterly (170)
Relief LDR
Devices
Compressors'3 Quarterly0 (690)
LDR
Open Ended Cap 9.1
Lines
Sampling No Control 0
Connections
Val ves
Gasc Quarterly (21)
LDR
Llghtd Annual d 2.04
Liquid LDR
Pumps Annual 180
LDR
Regulatory Alternative II Costs Without
Instruments
Regulatory Alternative II Costs With
Instruments^
Net Annual ized Cost Between Baseline and
Uncontrolled*1
Regulatory Alternative II
Net Annual ized Cost
Per Model Unit ($/yr)
ABC
Compo- Sub- Compo- Sub- Compo- Sub-
nents total nents total nents total
3 (510) 7 (1,190) 20 (3,400)
1 (690) 3 (2,070) 8 (5,520)
70 637 140 1,270 420 3,820
10 0 20 0 60 0
130 (2,730) 260 (5,460) 780 (16,400)
250 510 500 1,020 1,500 3,060
7 1,260 14 2,520 40 7,200
(1,520) (3,910) (11,200)
3,980 1,590 (5,700)
2,230 890 (3,190)
LDR « leak detection and repair
( ) - cost savings

aRegulatory Alternative II costs per component are from the  BID for promulgated  standards
 Appendix A, pages A-4, 7, 8, 11, and 15.                           .    .

                                              D-8

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         Table 5.  MODEL UNIT NET ANNUALIZED COST BETWEEN
                   BASELINE AND UNCONTROLLED (continued)


Quarterly leak detection and repair for compressors,  from BID  for
 the proposed standards, Table F-12.                                         ;

                          /Initial   \  /Repair\ /LaborA /OverA /Capital V
    Initial leak repair = I  Leak      ]  t  Time  1 I  Rate  I   Head   [ Recovery j
                          y Frequency/  \      /\    •/ \     / \Factor   1\

                        = (0.35) (40 hrs)  ($18/hr)  (1.4)  (0.163)              i

                        = $57.50                                             '

    Monitoring Labor = (Monitoring labor hours) (Labor rate) =  (1 hr)  ($18/hr)

                     = $18

    Repair Labor = (Repair Labor hours)  (Labor  rate) =6  hr  ($18/hr) = $108

    Administrative  = 0.4/Monitoring     RepaiA =  0.4 (18 + 108) = $50.40
    and Support           I Labor      +  Labor

    TOTAL ANNUAL IZED COST =  $234

    RECOVERY CREDIT = ($215/Mg)  (4.3 Mg/yr)  = $924

    NET ANNUALIZED COST per  compressor = is  a cost savings of $690

C6as Service Valves,  from BID for promulgated standards Table A-6.

dLight Liquid Service Valves,  from BID for proposed  standards Table F-27.

      Initial  Leak Repair =/Initial  leak]  /RepairW Labor\/Over-\ /Capital \
                             	     I  Time  H Rate j\head j( Recovery)
IFrequency
                                Ahead  /   F	
                               /x     ' \Factor  J

= (0.11) (1.13 hr)  ($18/hr)  (1.4)  (0.163)  =  $0.51
    Monitoring Labor  =/Fraction  of\ /MonitoringW LaborX
                      I  Sources      I I Time       )\ Rate  )
                      \Screened    /  N          ' x     '

                     = (0.99)  (1/60  hr)  ($18/hp) (2) = $0.59

    Repair Labor  = /Fraction of\   /RepairN  /LaborN
                  I Sources      I   I Time   )  I Rate J
                  V Operated on /   x      '        '

                 = 0.168 (1.13)  ($18)  =  $3.42
                                 D-9

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         Table 5.  MODEL UNIT NET ANNUALIZED COST BETWEEN
                   BASELINE AND UNCONTROLLED (concluded)
    Administrative
    and Support
                                    +   Repai r
                                        Labor
= 0.4 [Monitoring
      (Labor
= 0.4 ($0.59 + $3.42) = $1.60
    TOTAL ANNUALIZED COST = $6.12
    RECOVERY CREDIT = (0.019/Mg/yr) ($215) = $4.08
    NET ANNUALIZED COST = $2.04 per valve
eAnnualized instrument cost from BID for the proposed standards, Tables 8-1
 and 8-5.  Annualized cost = Capital recovery Cost + Maintenance Cost +
 Miscellaneous Cost.

                                                                   /
                       /                 A    /Capital
Capital Recovery Cost =($9,200/Model Unit J  X I Recovery Factor]
                      = $9,200/unit x 0.23
                      = $2,100/unit
Maintenance Cost = $3,000
Miscellaneous Cost - 0.04 x $9,200 = $368
             Total = $5,500/model unit
      footnote e from Table 1.  Baseline costs = 0.56 x Regulatory
  Alternative II.
                                    D-10

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Table
Equipment Control
Pressure Rupture
Relief Disk
Devices
Compressors Barrier
Fluid
System
Open Ended Cap
Li nes
Sampling Closed
Connections Purge
Valves Monthly
LDR
Pumps Monthly
LDR
Costs from Uncontrolled to
w/o Instrument
Costs from Uncontrolled to
Instrument0
Costs from Uncontrolled to
6. MODEL UNIT NET ANNUALIZED COSTS BETWEEN
NSPS AND BASELINE
Net Annual i zed
Costs From
Uncontrolled
To NSPS
($/yr)a
580

840

9.1
105
(6)
130
NSPS
NSPS with
Basel inec
Costs from Baseline to NSPSd
Net Annual ized Cost
Model Unit
A
Compo- Sub-
nents total
°3 1,740

1 840

70 637
10 1,050
380 (2,280)
7 910
2,900
/
8,400
2,230
6,170
B
Compo- Sub-
nents total
7 4,060

3 2,520

140 1,270
20 2,100
760 (4,560)
14 1,820
7,210
12,700
890
11,800
Per
C
Compo- Sub-
nents total
20 11,600

8 6,720

420 3,820
60 6,300
2,280 (13,700)
40 5,200
20,000
25,500
(3,190)
28,700
,,  LDR = leak  detection  and  repair
  (  ) = cost  savings

  *The basis  for  the  control  costs  for  the  individual  components  represent  the  costs  from
   uncontrolled to  the  control  required by  the  standards.   From Appendix  A  of the  BID for
   the promulgated  standards,  pages A-4,  7, 8,  11,  and 15.

   bSee footnote  e  of Table  5.

   CFrom Table 5.

   dRepresents model  unit net  annualized  costs  between NSPS and baseline.
                                             D-ll

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r
                           Table 7.  NATIONWIDE NET ANNUALIZED COSTS FROM
                                     BASELINE TO NSPS

Model
Unit
A
6
C

Net Annual! zed
Cost Per
Model Unit ($/yr)a
6,170
11,800
28,700


Projected
Model Unitsb
96
106
80
Total

Subtotal
(Mg/yp)
592,000
1,250,000
2,300,000
4,140,000
          aNet Annualized Costs per model  unit from Table 6.

          bFrom BID for the proposed standards, Table 7-4.
                                                      D-12

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                      Table 8.  MODEL UNIT CAPITAL COSTS
                                      Model Unit Capital Cost
                                               ($)
Control
Regulatory Alternative IIa
Basel ineb
NSPS (from uncontrolled)
New Unitc
Modi f ied/Reconstruct edd
Unit
NSPS (from Baseline)6
New Unit
Modi f i ed/Reconstructed
Unit
A
13,000
7,280
35,000
39,000
27,700
31,7.00
B
17,000
' 9,520
73,000
81 ,0.00
63,500
71,500
C
31,000
17,400
190,000
210,000
173,000
193,000
 aFrom BID for the proposed standards,  Table 8-2.

. bSee footnote e of Table 1.  Calculated as 56 percent of Regulatory
  Alternative II.  Baseline capital  costs are incurred by industry using
  existing levels of control and, therefore, represents a weighted average
  between uncontrolled (no cost)  and Regulatory Alternative  II,  not the
  actual  capital  cost incurred by an individual  model  unit.

 cFrom BID for the proposed standards,  Table 8-12.   Regulatory AlternatfveTT
  capital  costs are the same as that for the standards.

 dFrom BID for the proposed standards,  Table 8-13,  corrected to  include
  closed  loop sampling under Regulatory Alternative III.

 Calculated  as the capital  cost  from uncontrolled  to  NSPS minus  baseline
  capital  costs.   Represents capital  cost incurred  per model  unit regulting
  from promulgation of the standards.
                                      D-13

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                                    TECHNICAL REPORT DATA
                            (Please read Instructions on the reverse before completing}
1. REPORT NO.
   EPA-450/3-81-Q15b
                                                            3. RECIPIENT'S ACCESSION NO.
4. TITLE AND SUBTITLE
   Equipment Leaks of VOC in the Petroleum  Refining
   Industry—Background  Information for Promulgated
   Standards
                                                            5. REPORT DATE
                                                              December 1983
              6. PERFORMING ORGANIZATION CODE
7. AUTHOR(S)
                                                            8. PERFORMING ORGANIZATION REPORT NO.
 I. PERFORMING ORGANIZATION NAME AND ADDRESS
   Office of Air Quality Planning and Standards
   U.S.  Environmental  Protection Agency
   Research Triangle Park,  North Carolina   27711
              10. PROGRAM ELEMENT NO.
              11. CONTRACT/GRANT NO.

                68-02-3060
12. SPONSORING AGENCY NAME AND ADDRESS
   Director for Air Quality Planning and  Standards
   Office of Air, Noise,  and Radiation
   U.S.  Environmental  Protection Agency
   Research Triangle Park,  North Carolina  27711
              13. TYPE OF REPORT AND PERIOD COVERED
              14. SPONSORING AGENCY CODE
                EPA/200/04
is. SUPPLEMENTARY NOTES This  document presents  the background information used by tne
  Environmental Protection Agency in developing the promulgated new source performance
  standards for equipment of VOC in the petroleum refining industry.
16. ABSTRACT
        Standards of performance for the control of volatile organic  compound (VOC)
   equipment leaks from the petroleum refining  industry are being  promulgated under
   Section 111 of the Clean Air Act.  These  standards will apply ep .equiipmene leaks of
   VOC within new, modified, and reconstructed  petroleum refinery  compressors and
   process units.  This document summarizes  the responses to public comments received
   on the proposed standards and the basis for  changes made  in the standards since
   proposal.
 7.
                                KEY WORDS AND DOCUMENT ANALYSIS
                  DESCRIPTORS
                                              b.IOENTIFIERS/OPEN ENDED TERMS  C. COSATI Field/Group
   Air Pollution
   Petroleum Refining
   Pollution Control
   Standards of Performance
   Volatile Organic Compounds (VOC)
  Air  Pollution Control
13b
 8. DISTRIBUTION STATEMENT
   Unlimited
                                               19. SECURITY CLASS (ThisReport;
                                                     Unlimited
                           21. NO. OF PAGES
                              214
20. SECURITY GLASS /This page/
      Unlimited
                                                                          22. PRICE
EPA Form 2220-1 (Rev. 4-77)   PREVIOUS EDITION i s OBSOLETE

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