EP ^50/2
76-501-3
                   4502765013
                     GUIDELINE  SERIES
                                 OAQPS NO.  3.0-003
                          LEGAL INTERPRETATION AND GUIDELINE TO
                          IMPLEMENTATION OF RECENT COURT DECISIONS
                          ON THE SUBJECT OF STACK HEIGHT INCREASE
                          AS A MEANS OF MEETING FEDERAL AMBIENT
                          AIR QUALITY STANDARDS
                        US. ENVIRONMENTAL PROTECTION AGENCY
Office of Air Quality Planning and Standards

  Research Triangle Park, North Carolina

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LEGAL INTERPRETATION AND GUIDELINE TO IMPLEMENTATION OF RECENT

 COURT DECISIONS ON THE SUBJECT OF STACK HEIGHT INCREASE AS

  A MEANS OF MEETING FEDERAL AMBIENT AIR QUALITY STANDARDS
                Office of General Counsel,
                  EPA, Washington, D.C.
                          and
             Standards Implementation Branch
          Control Programs Development Division
      Office of Air Quality Planning and Standards
    EPA, Research Triangle Park, North Carolina  27711

                     January 6, 1976

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                        CONTENTS






I.    Introduction	  1-2



II.  Judicial Decisions  	  2-5



III. Implementation of the Judicial Decisions 	  6






     A.  Overview	  6



     B.  Sources in Existence Prior to January 31, 1972



         (the latest date by which SIPs were to be



         submitted to EPA) 	  7-8



     C.  New Sources, i.e., Sources Receiving Construc-



         tion Permits after February 8, 1974	  8-11



     D.  Determination of Best Available Control,,



         Technology  (BACT) 	  11-12




     E.  Rationale for Use of Reasonably Available




         Control Technology  (RACT) as a Temporary



         Measure	12-13



     F.  Determination of Reasonably Available Control



         Technology	14-16



     G.  Relationship to SCS	 16-18

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LEGAL INTERPRETATION AND GUIDELINE TO IMPLEMENTATION OF RECENT

COURT DECISIONS ON THE SUBJECT OF STACK HEIGHT INCREASE AS A

MEANS OF MEETING FEDERAL AMBIENT AIR QUALITY STANDARDS


                     I.  Introduction


     Section 110(a)(2)(B) of the Clean Air Act requires that

emission limitations must be used in State implementation plans

although "other measures as necessary" may be used  to supplement

emission limitations in order to attain the national standards.

This section directs the Administrator to approve a State

implementation plan if:

           it includes emission  limitations, schedules,
           and timetables for compliance with  such
           limitations, and  such other measures a.s may
           be necessary to insure attainment and  main-
           tenance  of  such primary and secondary  standard,
           including but  not limited  to, land  use and
           transportation controls.

     While at one  time,  the meaning  of the above language may

have been  subject  to  doubt,  the decisions of  the courts  (as

discussed  below) now  make it unmistakably clear  that,  in

legislating §110(a)(2)(B),  Congress  intended  that State plans

would  have to rely on emission  limitations to the extent

possible,  and that strategies which  merely redistributed

pollution, e.g., SCS  and stack  height increases, were  to be

used only  as a  supplement to emission limitations.   Specifically,

as  construed by  the courts,  it  is clear that  Congress  did

not intend increased  stack  height and SCS to  be  used as a

means  of attaining national ambient  air quality  standards where

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constant emission reduction controls were available.  Thus,



it is only when constant controls are not available that



"other measures as may be necessary" may be turned to in



order to insure the attainment and maintenance of the national



standards.



     So that State environmental protection agencies and




polluters subject to State implementation plans  (SIPs) may



conduct their activities with certainty, EPA deems it desirable



to publish an interpretative guideline setting forth  (i) the



Agency's understanding of the Courts' decisions, and  (ii) the



manner in which the Agency intends to implement  the decisions.



In sum, the sections which follow indicate when, if ever,



techniques which merely redistribute or disperse pollution may



be used as a means of achieving Federal ambient  air quality



standards.






                  II.  Judicial Decisions
     The  first decision to  interpret  section  110(a)(2)(B) was




that of the Fifth Circuit Court of Appeals, on  February  8',  1974,




In that case, NRDC et  al. v.  EPA  (489 F.2d  390),  one  question




before the Court involved the use of  tall stacks  as  a control




strategy  technique in  the State of Georgia.   In addressing  this




issue, the Court held  that  a  tall stack  strategy,  i.e.,  one




which establishes emission  control requirements as a function




of stack  height, or  otherwise permits dispersion of  pollutants




through increased stack  height as a means of  attaining or

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maintaining ambient air quality standards, could only be



employed under two circumstances:   (1) where the constant



emission control requirements of the control strategy



are, of themselves, sufficient to attain the standards; or



(2) where the constant control requirements of the control




strategy  (as expressed in either emission limitations or fuel



specifications) reflect the  "maximum degree of emission limita-




tion achievable" and that, notwithstanding such requirements,



other measures --  such as 1SCS or tall stacks -- are necessary



if the national standards are to be attained.



     The decision  of the Fifth Circuit was recently followed



by the Sixth Circuit in Big  Rivers  et al. v. EPA, 523 F.2d  16,



(CA6, 1975) , and by the Ninth Circuit in Kennecott Copper



Corp. v. EPA, decided on November 28, 1975.  In the latter  case,




EPA invoked the teaching of  the  Fifth Circuit and argued that  the



use of SCS  as a permanent means  of  meeting ambient air quality



standards was impermissible  under the Clear Air Act.  However,




in making this argument, the Agency acknowledged that, in



some instances, there might  be situations in which the installa-



tion of best available control technology  (hereinafter BACT)



would be  economically unreasonable  or ill-advised for



engineering or siting reasons.   Under such circumstances,  it



was asserted that  a fair  interpretation of  §110(a)(2)(B)

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would permit the following regulatory scheme:  First, the




source in question would be required to install reasonably




available (as opposed to "best available" or "maximum




achievable") constant controls.  Second, if the installation




of reasonably available control technology  (hereinafter RACT)




was insufficient to achieve ambient air quality standards,




tall stacks and/or SCS would be permissible as an interim




means of achieving the standards.  Finally, the source in




question would be required to conduct research for the purpose




of developing  (and, ultimately, installing) new forms of constant




control techniques sufficient to achieve ambient standards at




a cost more reasonable than that of presently available BACT.




     The regulation that was the subject of the ,Ninth Circuit




litigation  followed the pattern described above.  In upholding




the regulation, the Court indicated its agreement with the




result reached by the Fifth Circuit in  the  NRDC case and with




the Fifth Circuit's analysis of the pertinent legislative




history.  The Ninth Circuit also stated that, similar to the




conclusion  reached by the Sixth Circuit in  the Big Rivers




case,  it  (the Ninth Circuit) believed  that  a recent  decision




of the United States Supreme Court  involving section 110 of




the Clean Air Act  (Train v. NRDC et al, 421 U.S.  60, 7 ERC




1735  (1975)) added  "significant support" to "EPA's interpre-




tation of  1857c-5(a) (2) (B)  [i.e.,  §110 (a) (2) (B)]  as  expressing




a preference for  emission  limitations."   (Kennecott  Copper




Corporation v.  EPA, Slip opinion at page 6).

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     Although  the Train  case  did  not  specifically  address  the



dispersion  technology vs.  constant  control  technology  question,



the  court did  provide substantial insight  into  this  question



in its  overall discussion  of  §110.  Describing  what  an



acceptable  implementation  plan must consist of,  the  Court,



at one  point in the  decision,  drew  a  distinction between



ambient standards the achievement of  which is the  goal of  all



implementation plans, and  emission  limitations,  "the rule  to



which  operators of pollution  sources  are subject,  and  which,



if enforced should result  in  ambient  air which  meets national



standards." (7 ERG at 1741).   Significantly,  in making this



distinction the Court defined emission limitations as  "regulations



 [governing] the composition of substances  emitted into the ambient



air  from such sources as power plants, service  stations and the




like."   (7  ERG at  1741).  The clear meaning to be drawn from the



above  definition is  that techniques which depend upon meteoro-



logical dispersion,  such as SCS and increased stack height, do



• not  control the composition of substances  emitted into the air



and  consequently cannot be regarded as "emission limitations"



 for  purposes of section 110 of the  Clean Air Act.   This was,



 in fact, the meaning which the Sixth  Circuit (in Big Rivers)



and  the Ninth Circuit (in  Kennecott)  ascribed to the Supreme



Court's discussion  of emission limitations.

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       III.  Implementation of the Judicial Decisions



     A.  Overview


     The guideline which follows reflects EPA's understanding


of the Court decisions discussed in section II of this notice,


as well as the manner in which the decisions will be implemented


by the Agency.  The elements of the guideline will be applied


to every State implementation plan.  The guideline discusses


when stack height increases, including stack height increases


used in conjunction with supplementary control systems  (SCS),


will be accepted by EPA as a means of meeting ambient -air quality


standards.


     The general philosophy expressed in the guideline is that,
                                                .«r

consistent with the decisions of the courts, stack height


increases and/or SCS are acceptable control strategy measures


only after the application of available control measures and


are never permitted as a means of  allowing the increase of


emissions at  any source.


     Finally, although none of the decisions specifically


addressed  the question of how the  Clean Air Act's preference


for constant  controls would be applied to new sources  (for


purposes of  (i) State new source  review, and  (ii) control


strategy demonstrations associated with later SIP revisions),


the guideline does  specifically address this question in a


manner which  EPA believes is  consistent with the decisions  of


the Courts.

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     B.   Sources in Existence Prior to January 31, 1972



     (the latest date by which SIPs were to be submitted



     to EPA)








     Scope:   This section addresses the manner in which stack



height will be considered with respect to sources in existence



on January 31, 1972.  In other words, it applies only to sources



which are considered  (either explicitly or implicitly) in



current SIP control strategies; it does not necessarily apply



to sources being subjected to new source review.



     The section sets forth not only the basis for- approval



of SIPs, but  also provides guidance with respect  to revisions



of SIPs.



     Implementation:  In determining the control  required of



an existing source  for  attainment and maintenance of  the national



standards, a  State may  not take into account  the  dispersive



effects of an increased stack height for which construction



commenced after  January 31,  1972 except in the following




circumstances:



          1)   If the  source  initiated construction



          of  the stack  height•increase by grading  and



          pouring  of  concrete prior  to February  8,  1974,



           (the date of  the Fifth Circuit Court's  decision



          regarding the use  of  increased stack heights),

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         with  the approval of  the State  (or  authorized



         governmental  subdivision), permanent  credit




         in the  SIP  control  strategy  demonstration may



         be taken for  any  increase  up to  2 1/2 times  the




         height  of the facility  serviced  by  the stack.



          (2)   If the source  applies best  available control



         technology  {BACT),  an unlimited  stack height




         increase may  be credited in  a control strategy



         demonstration for attaining  and  maintaining



         ambient air quality standards.



          (3)   If the source  cannot  apply  BACT, but



         applies reasonably  available control  technology



          (RACT), an  unlimited sback height  increase may



         be credited in a  control strategy  demonstration



          as a  temporary measure  for attaining  and main-



          taining ambient air quality  standards.



     C.   New Sources, i.e., Sources  Receiving Construction



     Permits After  February 8,L 1974.



     Scope:  This section addresses  the manner  in which



stack height  is considered  for sources which received



construction  permits  after  February  8, 1974,  the date  of the



Fifth Circuit's decision in NRDC et  al v.  EPA.   As such, it



applies to sources  which have already  been or will be subjected



to new source  review, and also applies to future control strategy

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demonstrations which consider those sources.  The general

philosophy of the guideline is that, with the arrival of the

Fifth Circuit NRDC decision on February 8, 1974, both persons

seeking to build new sources and State new source review

boards were on notice that any attempt to meet new source

review requirements through the use of tall stacks might

well conflict with §§110 (a) (2) (B) and  (D) of the Clean Air Act.1

Accordingly, while the guideline which follows does not attempt

to overturn or vitiate already-issued, post-NRDC v. EPA

construction permits that were predicated upen tall stacks,

the guideline does limit the amount of stack height credit that

may be assigned to such sources for purposes of later control

strategy demonstrations.

     By contrast, construction permits issued after the release

of this guideline may not be based upon stack height except as

indicated below.  Nor, except as indicated below, may stack

height credit be assigned to such sources for purposes of

later control strategy demonstrations.
I
 Such knowledge can not be imputed to sources not part of
 the original SIP control strategy and receiving construction
 permits prior to February 8,  1974.  Accordingly, such sources
  (for all purposes) will be credited with whatever  stack height
 was committed to at the time  of  State new  source review.

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Implement at ion:




     1.   Sources Receiving Construction Permits after



February 8, 1974, (the date of the Fifth Circuit decision)



and prior to the release of this guideline.






     For purposes of EPA evaluation of state-issued construction



and/or operating permits, the source will be credited with what-



ever stack height it committed to at the time it submitted its



construction permit application  (as approved) to the State.



     For purposes of EPA review of control strategy demonstra-



tions accompanying later Plan revisions:



           (1)  If the source applied the best available



          control technology  (BACT), there is no restriction




          on stack height.  BACT  is as defined  in Paragraph



           III(D) of this guideline.



           (2)  If the source did  not apply BACT, it may



           be given credit only  for a stack height which



           does not exceed two and one-half times the



           height of the  facility  it serves.



           (3)  If the source  cannot apply BACT, but applies



           reasonably  available  control  technology  (RACT),



           an unlimited  stack  height increase may be credited



           in a control  strategy demonstration  as a temporary



           measure for attaining and maintaining air quality




           standards.
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     2.   Sources Receiving Construction Permits after the



release of this notice.



     For purposes of (i) EPA evaluation of State-issued




construction and/or operating permits, as well as  (ii) EPA



review of control strategy demonstrations accompanying later



Plan revisions:



          (1)  If a source applies the best available



          control technology (BACT), there is no re-



          striction on stack height.  BACT is as defined



          in paragraph III(D) of this guideline.



          (2)  If a source does not apply BACT, it may



          be given credit only for a stack height which



          does not exceed two and one-half times the



          height of the facility it serves.






     D.  Determination of Best Available Control Technology  (BACT)






     For purposes of this guideline, BACT is as defined in



40 CFR 52.01.  For source categories subject to New Source



Performance Standards  (NSPS) as set forth in 40 CFR Part 60,



BACT is generally defined to be the same as NSPS.  For those
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sources not subject to NSPS, BACT must be determined on a



case-by-case basis and the following must be taken into



consideration:




          (1)  The process, fuels, and raw materials



          available and to be employed in the facility



          involved,




          (2)  The engineering aspects of the application



          of various types of control techniques which



          have been adequately demonstrated,



          (3)  Process and fuel changes,




          (4)  The respective costs of the application



          of all such control techniques, process changes,



          alternative fuels, etc.,



          (5)  Any applicable State and local emission




          limitations, and



          (6)  Locational and siting considerations.






     E.  Rationale for Use of Reasonably Available Control



     Technology  (RACT) as a Temporary Measure



     In given  instances, the technology envisioned by  the



BACT concept may be available in  a  state-of-the-art  sense;



however, its retrofit onto  a specific existing  source  may be



extremely onerous  for economic reasons or ill-advised  for




engineering or siting reasons.   It  is expected  that  such



instances will occur  only  in the  case of a  few  smelters  and



some power  plants.  Nevertheless, where  they do occur,
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particularly where a source is threatened with shutdown, the



Agency believes that administrative relief is appropriate.




Furthermore, it is the view of the Agency that, if handled



responsibly and if restricted to only the most compelling



circumstances, a willingness to deal fairly with in-being,



unavoidable problems, tends to strengthen, rather than weaken,




legal principles such as those expressed by the cases cited



above.  This is especially true where, as here, the long term



goal of the relief measures employed is geared to realization



of the principles laid down by the cases.



     Accordingly, where a source demonstrates to the State



(and the State thereafter demonstrates to EPA) that, as applied



to the source, BACT is economically unreasonable or technologically



unsound, EPA will approve a control strategy demonstration which,



for that source, is based upon reasonably available (as opposed




to best available) control technology coupled with unlimited



stack height.  However, such a control strategy will only be



approved as a temporary measure for attaining and maintaining



ambient air quality standards and, where appropriate, will be



conditioned on the source undertaking a research program to



develop new and more economical forms of BACT-caliber technology.



As noted in section II, this approach was specifically approved



by the Ninth Circuit in Kenecott Copper Corporation v. EPA.
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     F.   Determination of Reasonably Available Control



     Technology



     For the purposes of this guideline, RACT is not necessarily



equivalent to the 40 CFR 51, Appendix B definition.  RACT becomes



a factor only after it has been determined, on a case-by-case



basis, that retrofit of BACT on the existing source would be



unreasonable.  This requires that RACT be determined by



considering the processes, fuels, and raw materials to be



employed; the engineering aspects of the application of various



types of cojitrol techniques, process and fuel changes; the cost



of employing the available techniques; and the cost of 'certain



control techniques due to plant location, configuration, basic



process design and expected remaining life.  It is expected that



only some smelters and a  limited number of coal fired power plants



will be able to justify application of RACT in lieu of BACT.



     A review of costs of installing flue gas desulfurization



 (FGD) at existing coal-fired power plants revealed that the



remaining life and capacity are major factors determining the



reasonableness of an FGD  installation.  For existing power



plants, the  following should be considered in determining



reasonableness:



           (1)  If a plant has  ten  to  fifteen years



          remaining life  or less,  and is projected to



          operate* an annual average of  no more than 25%



          capacity, FGD  installation might be considered



          unreasonable.
                               14

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          In such instances, the source owner should provide



          the anticipated shutdown date, and that date



          must be included in the compliance schedule.



          (2)  FGD may be unreasonable due to space



          limitations.



     In the event that it is determined on a case-by-case basis



that FGD is not reasonable for a specific power plant, alternate



control measures must still be considered.  The use of low



sulfur coal and coal washing, either separately or in



combination, might be appropriate options and acceptable in



meeting RACT criteria.  The capital as well as operating costs



of applying these control techniques are to be taken into account



in making the case-by-case determination and, when the cost of



using low sulfur coal is not significantly less than the cost



of FGD, coal washing alone might be considered RACT.  Only



after application of whatever measures are determined to be RACT,



would the source be able to take any credit for stack height



increase.



     In the case of existing smelters, BACT will, in most cases,



be economically unreasonable and could, in some cases, result



in shutdown.  Under such circumstances, RACT will usually equate



to control of all strong gas streams though properly operated and



maintained double contact acid plants  (or single contact acid
                              15

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plants where single contact acid plants are already on line).



Where increased acid plant capacity is required to treat



presently untreated strong gas streams, RACT for such gas



streams must be double contact acid plants.



     Since RACT involves a decision that is based principally



upon economic and engineering considerations, the definition



of RACT should be subject to future re-evaluation to determine



if more effective control measures would be applicable due  to



technological advancements or changes  in economic conditions.



Where the use of RACT has been approved by the State ^and EPA) ,



credit for stack height increases associated with .RACT would



only be permitted as a temporary measure.





     G.  Relationshipjbo SCS



     As recognized by all three circuit court decisions



discussed above, supplementary control systems,  like tall stacks,



utilize the dispersive characteristics of  the atmosphere to reduce



ground level pollutant concentrations.  Moreover,  since the use



of SCS as a means of meeting ambient  standards was  the  specific



issue addressed by  two of the courts  (the  Sixth  Circuit in



Big  Rivers  and the  Ninth Circuit  in Kennecott),  the Agency  deems



it important to include in  this notice a guideline  specifying



when, and the degree to which, SCS may be  used as  a means of



meeting  federal ambient standards.



      Because of the difficulties  associated  with enforcement



of an SCS program,  before granting a  source  the  right  to use
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SCS, the source must agree td assume liability for violations



of the national standards in the vicinity of the source.



Consequently, SCS will be generally effective only for isolated



sources.  Moreover, while the implementation of SCS is different



from conventional control measures or the use of taller stacks



after the application of RACT, it is clear that a stack height



increase can be a desirable addition to an approved, temporary



SCS especially where the frequency of curtailments could be



decreased by use of a taller stack.



     There are generally three situations—limited to SO-



emissions—which permit the application of SCS:



      (1)  Oil to coal conversions ordered by FEA under the



Energy Supply and Environmental Coordination Act - Power



plants required to convert to coal are given up to 1979 to



install control equipment and/or use fuel which would comply



with the SIP.  In the interim, ESECA requires that the primary



standards be met and an enforceable and reliable SCS can be



used to achieve that purpose.



      (2)  Enforcement Orders - When EPA issues an enforcement



order to a source to come into compliance with the SIP, it may



be  necessary to require the source to apply an SCS for  the



interim period in order to protect the ambient standards.  There



would be no  precondition that RACT be applied.  However,  in  this



case, the source is not relieved from liability under  section



304 of  the Act,  (i.e., would gain no immunity  from citizen



suit),  even  if there are no violations of the  national  standards
                              17

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     (3)   SIP Revision -- Under this mechanism,  a source can

not operate an approved SCS unless a number of conditions are met
                               2
including installation of RACT.

     The stack height provisions in this guideline closely

parallel the circumstances in which SCS may be permissible

as an SIP revision.  Both require, as a minimum, the application

of RACT and neither can be used to allow emission increases at

a source (except where oil to coal conversion is ordered under

ESECA).  Each has distinct advantages which would make one or

the other,  or some combination, the preferred measure in

specific situations.  The main advantage of -employing^ SCS is

that this system forces the source owner to assume- liability

for any ambient standard violations in a given area surrounding

the source.  However, for the  legal reasons stated above, SCS

would always be a temporary solution for existing sources and

will not be allowed for new sources.

     The restrictions on stack height apply solely to the

credit which can be given in assessing the impact of a  source

on ambient standards.  So long as  stack height  is not

used in lieu of emission reduction, the Agency encourages tall

stacks as a means of  further minimizing the effects of

emissions on ground level concentrations.
2
 An example of the conditions to be met may be found  in  the
 regulations promulgated for a smelter in Nevada  (the smelter
 that was the subject of the Ninth Circuit's decision in the
 Kennecott case).  See 40 PR 5508, February 6, 1975.
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