&EPA
United State
Envirwinwilfll Protection
Agency
Economic and Small Business Analysis - Revisions to the
Nonmetallic Mineral Processing Plants (Subpart OOO)
NSPS

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                                                                   EPA-452/R-09-003
                                                                           April 2009
Economic and Small Business Analysis - Revisions to the Nonmetallic Mineral Processing
Plants (Subpart OOO) NSPS
                                         By:
                         U.S. Environmental Protection Agency
                       Office of Air Quality Planning and Standards
                         Research Triangle Park, North Carolina
                         U.S. Environmental Protection Agency
                       Office of Air Quality Planning and Standards
                       Health and Environmental Impacts Division
                             Air Benefits and Costs Group
                              Research Triangle Park, NC

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                                    SECTION 1
                                 INTRODUCTION

       To meet the requirements of section 11 l(b)(l)(B) of the CAA, the Environmental
Protection Agency (EPA) is currently conducting the second review of the new source
performance standards (NSPS) for non-metallic mineral processing plants (NMPP).  The NMPP
NSPS was promulgated on August 1, 1985 (40 CFR Part 60 subpart OOO, 50 FR 31328) and
subsequently reviewed in 1997. Subpart OOO requires new, modified, or reconstructed affected
facilities at NMPP to achieve emission levels that reflect the best demonstrated system of
continuous emission reduction, considering cost, non-air quality health, environmental, and
energy impacts. These emission levels, referred to as "best demonstrated technology (BDT),"
are specified in subpart OOO.

       The purpose of this report is to provide economic and small business impact analyses for
the requirements of this NSPS. We include revenue and  other economic data for affected
industries and businesses in the industry profile for this NSPS, and that profile is included in this
report. The analysis will focus on estimating such impacts by providing  annualized cost as a
percent of sales or revenues for firms in industries likely  to be affected by this NSPS.  This
analysis is meant to meet the requirements of the Regulatory Flexibility Act (RFA) as amended
by the Small Business Regulatory Enforcement Fairness  Act (SBREFA). The annualized costs
are those found in the memo "Cost, Environmental and Energy Impacts for the Final Revisions
to the NSPS for Non-Metallic Mineral Processing Plants (40 CFR Part 60, subpart OOO),"
prepared by RTI in April, 2009.

       In summary, we find there to be minimal economic impacts associated with this NSPS,
and no SISNOSE (significant impacts on a substantial number of small entities) resulting from
implementation of this final rule.

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                                      SECTION 2
                                 INDUSTRY PROFILE
2.1    NAICS 21231—Stone Mining and Quarrying
       Stone is a naturally occurring aggregate of minerals that is typically used in one of two
forms—dimension stone and crushed stone. Dimension stone is natural rock that has been
quarried for the purpose of obtaining blocks or slabs that meet certain specifications, such as
size, shape, color and grain (USGS, 2007a). Dimension stone is primarily used in construction.
For example, it is often cut and shaped into ashlars, counter tops, flagstone, and rough block
(USGS, 2007a).

       Crushed stone is rock that has first been mined from the ground then pulverized or
crushed into smaller pieces of a desired size. This material serves as a raw material in a variety
of products such as concrete (USGS, 2007b). It is important to note that while the two seem
similar, crushed stone is different from gravel, which is produced from a natural process of
weather and erosion.

       The purpose of this industry profile is to characterize the stone mining industry and the
firms involved. First, the industry is defined using the North American Industry Classification
System (NAICS). Next, we examine historical data on production, international trade, prices, and
firm characteristics.
2.1.1  Industry Description
       The stone mining and quarrying industry is classified under NAICS code 21231. It is
defined as all establishments that are either 1) primarily engaged in developing the mine site,
mining or quarrying dimension stone or crushed and broken stone or 2) primarily engaged in
beneficiating stone (e.g., crushing, grinding, washing, screening, pulverizing, and sizing) (U.S.
Census Bureau, 2002a).

       Beneath this 5-digit NAICS code, the stone mining industry is further categorized into
different segments at the 6-digit NAICS code level. These segments include Dimension Stone
Mining (212311), Crushed and Broken Limestone Mining (212312), Crushed and Broken
Granite Mining (212313), and Other Crushed and Broken Stone Mining and Quarrying (212319).

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2.1.2   U. S. Stone Mining and Quarrying Production
       This profile's primary source for Stone Mining production data was the U.S. Geological
Survey (USGS) Mineral Yearbooks published each year for Dimensional and Crushed Stone.
The data reported in these yearbooks is collected through voluntary surveys of stone mining
operations. The USGS independently determines which operations will be surveyed by using a
variety of sources to compile a list of all stone mining operations in the US. These surveys are
used to determine how much dimension and crushed stone is being produced in the US, where
it's being produced, and what it's being used for (USGS, 2007a).

       Between 2000 and 2006, production of dimension stone remained relatively constant
around 1.3 million metric tons per year. In 2006, 1,330,000 metric tons of dimension stone was
produced inside the United States, nominally valued  at $265 million (Table 2-1).J  Much of this
dimension stone was produced in states in the mid-west and the northern east coast (Table 2-2).
The largest dimension stone producing state in 2006  was Wisconsin, which accounted for 22%
of all dimension stone produced. The greatest single  use for dimension stone in the US in 2006
was as rough blocks for building and construction (Table 2-4). This use accounted for
approximately 22% of all dimension stone produced  in the United States.

       During this  same 5-year time period, production of crushed stone grew around 2% each
year. In 2006, 1.7 billion metric tons of crushed  stone were sold or used by producers in the
United States (Table 2-1). This stone was nominally  valued at $13.8 billion. The states producing
the largest amount of crushed stone are Texas, Florida, and Pennsylvania (Table 2-3). These
states account for approximately 22%  of the crushed stone produced in the US. Nearly 40% of
crushed stone is used in the construction industry (Table 2-5).
2.1.3   International Trade
       International trade is a growing part of the stone mining industry. A summary of the
nominal value of imports and exports of dimension and crushed stone for 2000 to  2006 can be
found in Table 2-6. As this table reports, imports of dimension stone grew very quickly between
2000 and 2006. Specifically, imports of dimension stone grew 154% during this 5 year period
(an average growth rate of 30% per year). Imports  of crushed stone also rose rapidly during this
period. Between 2000 and 2006, crushed stone imports grew 96% (an average growth rate of
19% per year).
 All monetary values are reported in nominal (not inflation-adjusted) dollars unless otherwise noted.

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        The nominal value of exports of dimension and crushed stone has also grown

significantly in the past 5 years. Between 2000 and 2006, the nominal value of dimension stone

exports grew approximately 27% (around 5% each year), while exports of crushed stone grew

93% (around 19% each year).

Table 2-1.   Dimension and Crushed Stone Sold or Used by US Producers: 2000 to 2006

	2000       2001       2002      2003       2004       2005       2006
 Dimension Stone
   Quantity (1,000 metric       1,320       1,220      1,260      1,340       1,460       1,360       1,330
    tons)
   Value ($1,000)          235,000    263,000    254,000    268,000    281,000    269,000    265,000
 Crushed Stone
   Quantity (1,000 metric   1,550,000   1,590,000   1,510,000  1,530,000   1,630,000   1,700,000   1,720,000
    tons)
   Value ($1,000)         8,290,000   8,870,000   8,650,000  9,060,000   9,890,000  12,400,000  13,800,000

Source: U.S. Geological Survey. 2007a. 2006 Minerals Yearbook, Dimension Stone. Washington, DC: U.S.
  Department of the Interior. Available at . As obtained on March 25, 2008.

  U.S. Geological Survey. 2007b. 2006 Minerals Yearbook, Crushed Stone. Washington, DC: U.S. Department of
  the Interior. Available at . As obtained on March 25, 2008.

  U.S. Geological Survey. 2005a. 2004 Minerals Yearbook, Dimension Stone. Washington, DC: U.S. Department
  of the Interior. Available at . As obtained on March 25, 2008.

  U.S. Geological Survey. 2005b. 2004 Minerals Yearbook, Crushed Stone. Washington, DC: U.S. Department of
  the Interior. Available at .
  As obtained on March 25, 2008.

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Table 2-2.  Dimension Stone Production by State: 2006
State
Wisconsin
Indiana
Vermont
Massachusetts
Georgia
North Carolina
California
New York
Pennsylvania
Texas
Total
Quantity (1,000 Metric Tons)
297
233
100
82
81
41
40
39
38
31
1,330
Value ($1,000)
35,400
39,000
27,600
11,500
19,100
17,800
10,000
3,860
12,800
12,600
265,000
Source: Geological Survey. 2007a. 2006 Minerals Yearbook, Dimension Stone. Washington, DC: U.S. Department
  of the Interior. Available at . As obtained on March 25, 2008.

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Table 2-4.  Dimension Stone by Major Use: 2006
                                                      Quantity                   Value
                    State                        (1,000 Metric Tons)             ($1,000)
 Rough blocks for building and construction                 294                    $45,500
 Other3                                                   213                     50,300
 Flagging                                                 158                     15,500
 Ashlars and partially squared pieces                        147                     27,000
 Curbing                                                 129                     20,500
 Total                                                  1,330                    265,000
aOther includes panels and veneer, tile, blackboards, exports, uses not specified, and uses not listed.
Source: Geological Survey. 2007a. 2006 Minerals Yearbook, Dimension Stone. Washington, DC: U.S. Department
  of the Interior. Available at . As obtained on March 25, 2008.

Table 2-5.  Crushed Stone by Major Use: 2006

                                                      Quantity                   Value
                    State                        (1,000 Metric Tons)             ($1,000)
 Construction                                           673,348                  5,466,700
 Chemical and metallurgical                              101,608                   660,890
 Agricultural                                             11,960                   104,800
 Special                                                  5,014                   107,680
 Other miscellaneous uses                                12,070                    49,930
 Total                                                1,720,000                 13,800,000
Source: U.S. Geological Survey. 2007b. 2006 Minerals Yearbook, Crushed Stone. Washington, DC: U.S.
  Department of the Interior. Available at . As obtained on March 25, 2008.

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Table 2-6.   Dimension and Crushed Stone Import and Export Data: 2000 to 2006

Dimension Stone
Exports ($1,000)
Imports ($1,000)
Crushed Stone
Exports ($1,000)
Imports ($1,000)
2000

59,800
986,000

29,700
105,000
2001

73,500
1,070,000

35,600
110,000
2002

64,400
1,190,000

54,000
124,000
2003

63,500
1,390,000

45,600
143,000
2004

63,700
1,790,000

54,500
149,000
2005

66,100
2,180,000

50,500
194,000
2006

76,000
2,500,000

57,300
206,000
Source: U.S. Geological Survey. 2007a. 2006 Minerals Yearbook, Dimension Stone. Washington, DC: U.S.
  Department of the Interior. Available at . As obtained on March 25, 2008.
  U.S. Geological Survey. 2007b. 2006 Minerals Yearbook, Crushed Stone. Washington, DC: U.S. Department of
  the Interior. Available at. As obtained on March 25, 2008.
  U.S. Geological Survey. 2005b. 2004 Minerals Yearbook, Crushed Stone. Washington, DC: U.S. Department of
  the Interior. Available at .
  As obtained on March 25, 2008.

2.1.4  Market Prices
       Dimension stone tends to receive higher prices than crushed stone. For example, in 2006,
the average nominal unit value for granite dimension stone was $254 per ton, while the average
nominal unit value of crushed granite was $9.60 per ton. However, prices also differ based on
type of stone. For example, the average nominal unit value for marble dimension stone is $390
per ton, approximately $140 more than the nominal unit value for granite dimension stone. A
summary of the nominal unit values  of dimension stone and crushed stone in recent years is
provided in Table 2-7. Between 2000 and 2006, the nominal unit value of dimension stone only
grew approximately 4% each year. In contrast, the unit value  of crushed stone grew
approximately 10% over the same time period.

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Table 2-7.   Average Unit Values for Dimension and Crushed Stone Sold or Used by US
             Producers: 2000 to 2006

 	2000     2001      2002     2003      2004      2005      2006
 Dimension Stone
   Unit Value ($ per metric ton)      178.0     215.6     201.6     200.0      192.5     197.8      199.2
 Crushed Stone
   Unit Value ($ per metric ton)       5.3       5.6       5.7       5.9        6.1       7.3        8.0
Source: U.S. Geological Survey. 2007a. 2006 Minerals Yearbook, Dimension Stone. Washington, DC: U.S.
  Department of the Interior. Available at . As obtained on March 25, 2008.
  U.S. Geological Survey. 2007b. 2006 Minerals Yearbook, Crushed Stone. Washington, DC: U.S. Department of
  the Interior. Available at. As obtained on March 25, 2008.
  U.S. Geological Survey. 2005b. 2004 Minerals Yearbook, Crushed Stone. Washington, DC: U.S. Department of
  the Interior. Available at .
  As obtained on March 25, 2008.

       Producer price data for the stone mining industry was obtained from the Bureau of Labor
Statistics (BLS) to better understand how prices received by stone mining companies moved
relative to prices received by companies in other industries. According to the BLS, the Producer
Price Index (PPI) for the stone mining industry (which measures the nominal prices firms receive
for their products) rose an  average of 6% each year. This growth rate is relatively  slow when
compared with prices received by firms in other industries. For example, during the same 6-year
time period, prices received by other U.S. mining firms have risen an average of 17% each year
during the same period. This data is presented in Table 2-8.
2.1.5  Industry Concentration
       Data on the concentration of the stone mining firms was obtained from industry reports
prepared by Dun and Bradstreet (D&B). These industry reports are based on data that companies
operating within various segments of the stone mining industry voluntarily provided D&B. As a
result, these reports necessarily exclude information on firms that did not provide  financial
information to D&B.

       D&B received financial information  from 199 companies operating in the Dimension
Stone Mining industry segment. These companies earned an estimated $148 million in sales in
                                              10

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2007. Approximately 40% of these sales were generated by the 10 largest companies reporting
financial information to D&B. Approximately 60% of sales was generated by the 25 largest
companies (D&B, 2008a).

       In  addition, D&B received financial information from 125 companies operating in the
Other Crushed and Broken Stone industry segment. These companies earned an estimated $376
million in sales in 2007. Approximately 70% of these sales were generated by the 10 largest
companies reporting financial information to D&B. Approximately 85% of sales was generated
by the 25 largest companies (D&B, 2008b).

       This information would suggest that the stone mining industry is potentially highly
concentrated. However, since data was not available for all industry segments and only a portion
of companies in this industry provided financial information, this assessment cannot be
conclusive.
2.1.6  Firm Characteristics: Average Revenue and Employment
       To better understand the characteristics of firms operating in the stone mining industry,
this profile relied heavily  on data collected by the U.S. Census Bureau. In particular, the 2002
Economic Census and annual Statistics of U.S. Businesses were the primary sources of data
presented  bellow.
Table 2-8.  Producer Price Index Industry Data: 2000 to 2006
Stone Mining and Quarrying
(NAICS 21231)
Year
2000
2001
2002
2003
2004
2005
2006
PPI
147.3
152.2
156.1
160.2
166.1
176.7
192.7
Annual Percentage
Change in PPI
4%
3%
3%
3%
4%
6%
9%
Total
PPI
113.5
114.3
96.6
131.3
153.4
201
208.7
Mining Industries
Annual Percentage
Change in PPI
46%
1%
-15%
36%
17%
31%
4%
Source: U.S. Bureau of Labor Statistics (BLS). 2008. "Producer Price Index Industry Data: Customizable Industry
  Data Tables." Available at . As obtained on March 25, 2008.

       It is important to note that while the USGS surveys attempts to independently identify all
stone mining operations, the U.S. Census Bureau is only interested in collecting economic data
                                           11

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for private enterprises (it excludes most government entities). In addition, the U.S. Census
Bureau classifies each establishment it surveys into various NAICS industries based on the
establishments own self-description, not based on an independent assessment. As a result of
these and other variations, differences between USGS and U.S. Census data can be expected.

2.1.6.1 Average Revenue and Employment

       According to the US Economic Census, there were 1,362 firms occupying this industry,
owning 2,514 establishments in 2002.2 These firms earned a cumulative total  of over $9.3 billion
in revenue (measured in 2002 dollars) or an average of $6.8 million per firm.  A complete
summary of 2002 sales and employment data for firms in these industries is reported in Table 2-9
by enterprise size (as measured by the number of employees).

Table 2-9.  Employment and Receipts Data by Enterprise Size (NAICS 21231): 2002
Employment Size of the

Firm
Establishments
Employment
Receipts ($1,000)
Average Receipts per
Firm ($1,000)
0-4
480
480
796
$172,291
$359
5-9
223
226
1,515
$199,660
$895
10-19
252
255
3,454
$495,021
$1,964
20-99


8
$1,468
$5
257
360
,947
,369
,713
Enterprise
100-499


7
$1,322
$16
79
263
,176
,523
,741
500+


23
$5,637
$79
71
930
,211
,963
,408
Total
1
2
45
$9,295
$6
,362
,514
,099
,827
,825
Source: U.S. Bureau of the Census. 2002b. Statistics of U.S. Businesses: Number of Firms, Number of
  Establishments, Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All
  Industries 2002. Available at . As obtained on March 17, 2008.

       According to the Small Business Administration (SBA) standards, a small business in the
stone mining and quarrying industry is defined as any firm employing 500 employees or less
(SBA, 2008). Under this definition, over 95% of firms in the stone mining industry would be
considered "small businesses." In 2002, these small businesses earned an average of $3.7 million
in revenue and employed 17 workers.
: An establishment is a single physical location at which business is conducted or where services or industrial
   operations are performed. An enterprise is a business organization consisting of one or more domestic
   establishments under common ownership or control. A firm is defined as that part of an enterprise tabulated
   within a particular industry, state or metropolitan area. For example, an enterprise with establishments in more
   than one industry would be counted as a firm in each industry in which it operates an establishment, but is also
   counted as only one firm in national all-industry tabulations. Thus, summing the firms across industries would
   overstate the number of unique firms. However, employment size is determined only for the entire enterprise. As
   a result, counterintuitive results are possible, for example, only 100 employees in a category of firms with 500
   employees or more in a particular state (U.S. Bureau of the Census, 2004b).


                                             12

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       Between 2002 and 2005, total industry employment rose by approximately 9%. During
this same period, firms classified as "small businesses" slightly increased their share of total
employment, from 49% in 2002 to 50% in 2005 (Table 2-10). A summary of 2005 employment
data for firms is reported in Table 2-11.

2.1.6.2 The Cost of Production

       Firms mining stone require labor, capital, and supplies such as fuel  and intermediate
goods. Data was collected from the 2002 Economic Census to determine how much firms spend
on each factor of production. In 2002, stone mining firms spent $5.7 billion on these inputs. As
Figure 2-1 illustrates, over 52% of this spending was used to acquire supplies  (U.S. Census
Bureau, 2004b).

Table 2-10. Distribution of Employment Between Small and Large Firms: 2002 to 2005

2002
2003
2004
2005
Firms with <500
Employees
21,888
22,062
23,776
24,654
Firms with 500+
Employees
23,211
22,520
22,848
24,669
Total
45,099
44,582
46,624
49,323
Sources: U.S. Bureau of the Census. 2005. Statistics of U.S. Businesses: Number of Firms, Number of
  Establishments, Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All
  Industries 2005. Available at . As obtained on March 17, 2008.

  U.S. Bureau of the Census. 2004a. Statistics of U.S. Businesses: Number of Firms, Number of Establishments,
  Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All Industries
  2004. Available at . As obtained on March 17, 2008.

  U.S. Bureau of the Census. 2003. Statistics of U.S.  Businesses: Number of Firms, Number of Establishments,
  Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All Industries
  2003. Available at . As obtained on March 17, 2008.

  U.S. Bureau of the Census. 2002b. Statistics of U.S. Businesses: Number of Firms, Number of Establishments,
  Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All Industries
  2002. Available at . As obtained on March 17, 2008.
                                              13

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Table 2-11. Employment and Receipts Data by Enterprise Size (NAICS 21231): 2005
Employment Size of the Enterprise

Firms
Establishments
Employment
0-4
491
491
796
5-9
251
251
1,679
10-19
278
280
3,748
20-99
303
397
10,619
100-499
88
274
7,812
500+
64
992
24,669
Total
1,475
2,685
49,323
Source: U.S. Bureau of the Census. 2005. Statistics of U.S. Businesses: Number of Firms, Number of
  Establishments, Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All
  Industries 2005. Available at . As obtained on March 17, 2008.
                              Capital
                           $879,924,000
                               15%
                           Supplies
                        $2,913,170,000
                             52%
                                                              Payroll
                                                          $1,885,150,000
                                                               33%
Figure 2-1.   Distribution of the Cost of Production Between Capital, Labor, and Supplies

2.1.6.3 Profitability of Stone Mining and Quarrying Firms

       The profitability of firms in the stone mining and quarrying industry differs depending on
which part of the stone mining industry they occupy. For example, according to profit ratios
computed by Risk Management Associates for the 2006-2007 fiscal year, firms involved in
Crushed Limestone Mining (NAICS 212312) earned all. 1% average return on their sales.
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However, firms involved mining non-classified crushed stone (NAICS 212319) only earned an
average return of 8.6%.3

       The profitability of firms within also depends on the size of the firm as measured in net
sales. Table 2-12 and Table 2-13 provide estimates of the mean profit (before taxes) to net sales
ratios for firms involved in Crushed Limestone Mining (NAICS 212312) and Other Crushed
Stone Mining (NAICS 212319) for the 2006-2007 fiscal year.4 As these ratios demonstrate,
firms in the Crushed Limestone Mining industry with sales over $25 million received a 10.6%
average return on net sales, while firms with assets valued between $5 and $10 million only
received a  12.2% average return. Similarly, firms in Other Crushed Stone Mining with sales over
$25 million received a 11.6% average return on net sales, while firms with assets valued between
$1 and $3 million only received a 12.2% average return.
Table 2-12. Mean Ratios of Profit before Taxes as a Percentage of Net Sales for Crushed
            Limestone Mining (NAICS 212312), Sorted by Value of Assets



Fiscal Year
4/1/2006

3/3 1/2007

Total
Number of
Statements

71



Oto$l
Million

N/A


$1 Million
to $3
Million

N/A


$3 Million
to $5
Million

N/A


$5 Million
to $10
Million

12.2

$10
Million to
$25
Million

11.2



$25 Million
and Over

10.6



All
Firms

11.1

Source: Risk Management Association (RMA). 2008. Annual Statement Studies 2007-8. Pennsylvania: RMA, Inc.
Note: N/A means that ratios of profit before taxes as a percentage of net sales are unavailable available for the asset
value category.
3 Profit ratios were calculated by Risk Management Associates by dividing net income into net sales. These data
   were obtained from income statements for firms occupying each industry segment.
4 Profit ratios for other segments of the stone mining industry were unavailable.

                                             15

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Table 2-13. Mean Ratios of Profit before Taxes as a Percentage of Net Sales for Other
            Crushed Stone Mining (NAICS 212319), Sorted by Value of Assets



Fiscal Year
4/1/2006

3/3 1/2007

Total
Number of
Statements

54



Oto$l
Million

N/A


$1 Million
to $3
Million

17.1


$3 Million
to $5
Million

N/A


$5 Million
to $10
Million

N/A

$10
Million to
$25
Million

3.6



$25 Million
and Over

11.6



All
Firms

8.6

Source: Risk Management Association (RMA). 2008. Annual Statement Studies 2007-2008. Pennsylvania: RMA,
Inc.
Note: N/A means that ratios of profit before taxes as a percentage of net sales are unavailable available for the asset
value category.
2.2    NAICS 212321—Construction Sand and Gravel Mining
       Sand and gravel are among the most accessible and widely used natural resources in the
United States (USGS, 2006c). These materials have been particularly utilized in building and
construction. For example, sand and gravel are used to make cement, used as construction fill,
and used in the production of construction materials like concrete blocks, bricks, and pipes (Mil,
2008).

       The purpose of this section of the industry profile is to characterize the construction sand
and gravel industry and the firms involved. First, the industry is defined using the North
American Industry Classification System (NAICS). Next, we examine historical data on
production, international trade, prices, and firm characteristics.
2.2.1   Industry Description
       The construction sand and gravel mining industry is classified under NAICS code
212321. This industry is comprised of establishments primarily engaged in one or more of the
following activities: 1) operating commercial grade (i.e., construction) sand and gravel pits;
2) dredging for commercial grade sand and gravel; and 3) washing, screening, or otherwise
preparing commercial grade sand and gravel (U.S. Census Bureau, 2002a).
2.2.2   U.S. Construction Sand and Gravel Mining Production
       This profile's primary source of production data for the construction sand and gravel
industry was the U.S. Geological Survey (USGS) Mineral Yearbook published each year for
Construction Sand and Gravel.  The data reported in this yearbook is collected through voluntary
surveys of construction sand and gravel mining operations. The USGS independently determines
                                           16

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which operations will be surveyed by using a variety of sources to compile a list of all
construction sand and gravel mining operations in the US. These surveys are used to determine
how much construction sand and gravel is being produced in the US, where it's being produced,
and what it's being used for (USGS, 2007c).

       Between 2000 and 2006, construction sand and gravel production grew approximately
4% each year (Table 2-13). In 2006, the USGS reported that over 1 billion metric tons of
construction sand and gravel has been produced that year. This sand and gravel was valued to be
worth over $8.5 billion. Approximately 51% of the sand and gravel produced in 2006 was mined
in only 10  states (Table 2-14). The largest construction sand and gravel producing state was
California, which accounted for 12% of all sand and gravel produced. 20% of all sand and gravel
produced was used as concrete aggregate (Table 2-15).
Table 2-13. U.S. Production of Construction Sand and Gravel: 2000 to 2006

                     2000       2001       2002       2003       2004        2005        2006
 Quantity (1,000    1,120,000   1,130,000    1,130,000   1,160,000    1,240,000    1,280,000    1,320,000
  metric tons)
 Value ($1,000)    5,390,000   5,670,000    5,750,000   5,990,000    6,600,000    7,500,000    8,540,000
Source: U.S. Geological Survey. 2007c. 2006 Minerals Yearbook, Construction Sand and Gravel. Washington, DC:
  U.S. Department of the Interior. Available at. As obtained on March 25, 2008.
  U.S. Geological Survey. 2005c. 2004 Minerals Yearbook, Construction Sand and Gravel. Washington, DC: U.S.
  Department of the Interior. Available at . As obtained on March 25, 2008.
                                              17

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Table 2-14.  U.S. Construction Sand and Gravel Production by State: 2006
State
California
Texas
Arizona
Michigan
Minnesota
Washington
Colorado
Ohio
Nevada
Florida
Total
Quantity (1,000 Metric Tons)
153,000
99,500
94,000
50,500
50,300
48,400
48,000
46,300
45,500
40,000
1,320,000
Value ($1,000)
1,520,000
603,000
662,000
215,000
240,000
315,000
327,000
289,000
224,000
266,000
8,540,000
Source: U.S. Geological Survey. 2007c. 2006 Minerals Yearbook, Construction Sand and Gravel. Washington, DC:
  U.S. Department of the Interior. Available at. As obtained on March 25, 2008.
Table 2-15.  U.S. Construction Sand and Gravel by Major Use: 2006
State
Concrete aggregates (including concrete sand)
Road base and coverings
Fill
Asphaltic concrete aggregates and other bituminous mixtures
Plaster and gunite sands
Total
Quantity
(1,000 Metric
Tons)
264,000
128,000
78,800
66,300
9,700
1,320,000
Value
($1,000)
1,920,000
716,000
335,000
551,000
86,200
8,540,000
Source: U.S. Geological Survey. 2007c. 2006 Minerals Yearbook, Construction Sand and Gravel. Washington, DC:
  U.S. Department of the Interior. Available at. As obtained on March 25, 2008.

2.2.3  International Trade
       A growing portion of US consumption of construction sand and gravel is supplied by
foreign sources. Between 2000 and 2006, exports of sand and gravel remained relatively
constant, while imports grew by more than  183% (approximately 37% each year). This trend is
illustrated in Table 2-16, which reports the value of sand and gravel imports and exports during
this 5 year period.
                                             18

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Table 2-16.  Construction Sand and Gravel Import and Export Data: 2000 to 2006
2000
Exports
Imports
($1,000)
($1,000)
24,
33,
200
300
2001
19
40
,100
,800
2002
23,400
53,900
2003
24,900
57,700
2004
32,100
56,900
2005
28
86
,200
,800
2006
24,100
94,100
Source: U.S. Geological Survey. 2007c. 2006 Minerals Yearbook, Construction Sand and Gravel. Washington, DC:
  U.S. Department of the Interior. Available at. As obtained on March 25, 2008.
  U.S. Geological Survey. 2005c. 2004 Minerals Yearbook, Construction Sand and Gravel. Washington, DC: U.S.
  Department of the Interior. Available at . As obtained on March 25, 2008.

2.2.4  Market Prices
       The market price of construction sand and gravel differs by use. According to the USGS,
unit prices in 2006 varied from a high of $11.30 per ton for roofing granules to a low of $4.26
per ton for fill. Table 2-17 reports the average unit value of construction sand and gravel sold or
used by producers during this 5 year period. As one can see, nominal prices rose an average of
approximately 5% each year.
Table 2-17. Unit Value of Construction Sand and Gravel Sold or Used By U.S. Producers:
            2000 to 2006

                                2000    2001     2002     2003    2004     2005     2006
 Unit Value ($ per metric ton)     4.8      5.0       5.1       5.2      5.3      5.9       6.5
Source: U.S. Geological Survey. 2007c. 2006 Minerals Yearbook, Construction Sand and Gravel. Washington, DC:
  U.S. Department of the Interior. Available at. As obtained on March 25, 2008.
  U.S. Geological Survey. 2005c. 2004 Minerals Yearbook, Construction Sand and Gravel. Washington, DC: U.S.
  Department of the Interior. Available at . As obtained on March 25, 2008.

       This trend is also reflected in producer price data collected by the Bureau of Labor
Statistics (BLS). According to the BLS, the Producer Price Index (PPI) for the construction sand
and gravel industry rose (which measures the nominal prices firms receive for their products)
rose an average of 4% each year. This growth rate is relatively slow when compared with prices
received by firms  in other industries. For example, during the same 6-year time period, prices
received by other U.S. mining firms have risen an average of 17% each year during the same
period. This data is presented in Table 2-18.
                                              19

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Table 2-18. Producer Price Index Industry Data: 2000 to 2006


Year
2000
2001
2002
2003
2004
2005
2006
Construction Sand and Gravel

PPI
175.5
181.6
185.8
188.9
195
209.9
229.1
(NAICS 212321)
Annual Percentage
Change in PPI
4%
3%
2%
2%
3%
8%
9%

Total
PPI
113.5
114.3
96.6
131.3
153.4
201
208.7

mining industries
Annual Percentage
Change in PPI
46%
1%
-15%
36%
17%
31%
4%
Source: U.S. Bureau of Labor Statistics (BLS). 2008. "Producer Price Index Industry Data: Customizable Industry
  Data Tables." Available at . As obtained on March 25, 2008.
2.2.5  Industry Concentration
       Data on the concentration of the construction sand and gravel mining firms was obtained
from industry reports prepared by Dun and Bradstreet (D&B). These industry reports are based
on data that companies operating within the construction sand and gravel mining industry
voluntarily provided D&B. As a result, these reports necessarily exclude information on firms
that did not provide financial information to D&B.

       D&B received financial information from 1,030 companies operating in the construction
sand and gravel mining industry. These companies earned an estimated $1.2 billion in sales in
2007. Approximately 42% of these sales were generated by the  10 largest companies reporting
financial information to D&B.  Approximately 54% of sales was generated by the 25 largest
companies (D&B, 2008c).

       This information would suggest that the construction sand and gravel mining industry is
potentially highly concentrated. However, since data only a portion of companies in this industry
provided financial information, this assessment cannot be conclusive.
                                            20

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2.2.6  Firm Characteristics
       To better understand the characteristics of firms operating in the construction sand and
gravel industry, this profile relied heavily on data collected by the U.S. Census Bureau. In
particular, the 2002 Economic Census and annual Statistics of U.S.  Businesses were the primary
sources of data presented below.

       It is important to note that while the USGS surveys attempts to independently identify all
construction sand and gravel mining operations, the U.S. Census Bureau is only interested in
collecting economic data for private enterprises (it excludes most government entities). Further,
the Census Bureau classifies each establishment it surveys into various NAICS industries based
the establishments own self-description. As a result of these and other differences, divergences
between USGS  and U.S. Census data can be expected.
2.2.6.1 Average Employment and Revenue
       In 2002 there were 1,884 firms occupying this industry, owning 2,509 sand and gravel
mining establishments.  These firms earned a cumulative total of over $4.8 billion in revenue
(measured in 2002 dollars) or an average of $2.6 million per firm. A complete summary of 2002
sales and employment data for firms in these industries is reported in Table 2-19 by enterprise
size (as measured by the number of employees).
Table 2-19. 2002 Employment and Receipts Data  by Enterprise Size (NAICS 212321)
Employment Size of the Enterprise

Firms
Establishments
Employment
Receipts ($1,000)
Average Receipts per
Firm ($1,000)
0-4
867
867
1,471
$255,735
$295
5-9
324
324
2,174
$274,124
$846
10-19


3
$533
$1
283
287
,810
,948
,887
20-99


7
$1,193
$4
268
324
,952
,402
,453
100-499


4
$856
$10
83
189
,432
,302
,317
500+


6
$1,702
$28
59
518
,912
,068
,849
Total
1,884
2,509
26,751
$4,815,579
$2,556
Source: U.S. Bureau of the Census. 2002b. Statistics of U.S. Businesses: Number of Firms, Number of
  Establishments, Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All
  Industries 2002. Available at . As obtained on March 17, 2008.

       According to the Small Business Administration (SBA) standards, a small business in the
construction sand and gravel mining industry is defined as any firm employing 500 employees or
less (SBA, 2008). Under this definition, over 97% of firms in the sand and gravel industry would
                                           21

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be considered "small businesses." In 2002, small businesses earned an average of $1.8 million in
revenue and employed 11 workers.

       Between 2002 and 2005, total industry employment fell by approximately 2%. However,
during this same period, large businesses (firms employing 500 or more workers) increased their
share of total employment, from 26% in 2002 to 30% in 2005 (Table 2-20). A summary of 2005
employment data for firms is reported in Table 2-21.

Table 2-20.  Distribution of Employment Between Small and Large Firms

                   Firms with <500            Firms with 500+
                     Employees	Employees	TOTAL
2002
2003
2004
2005
19,839
17,911
18,351
18,344
6,912
7,145
6,954
7,994
26,751
25,056
25,305
18,344
  Sources: U.S. Bureau of the Census. 2005. Statistics of U.S. Businesses: Number of Firms, Number of
  Establishments, Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All
  Industries 2005. Available at . As obtained on March 17, 2008.

  U.S. Bureau of the Census. 2004a. Statistics of U.S. Businesses: Number of Firms, Number of Establishments,
  Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All Industries
  2004. Available at . As obtained on March 17,  2008.

  U.S. Bureau of the Census. 2003. Statistics  of U.S. Businesses: Number of Firms, Number of Establishments,
  Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All Industries
  2003. Available at . As obtained on March 17,  2008.

  U.S. Bureau of the Census. 2002b. Statistics of U.S. Businesses: Number of Firms, Number of Establishments,
  Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All Industries
  2002. Available at . As obtained on March 17,  2008.

Table 2-21. 2005 Employment and Receipts Data by Enterprise Size (NAICS 212321)
Employment Size of the Enterprise

Firms
Establishments
Employment
0-4
835
835
1,390
5-9
304
304
2,042
10-19
289
296
3,836
20-99
246
297
7,229
100-499
87
185
3,847
500+
49
493
7,994
Total
1,810
2,410
26,338
Source: U.S. Bureau of the Census. 2005. Statistics of U.S. Businesses: Number of Firms, Number of
  Establishments, Employment, and Annual Payroll by Employment Size of the Enterprise for the United States, All
  Industries 2005. Available at . As obtained on March 17, 2008.
                                              22

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2.2.6.2 The Cost of Production
       Firms mining construction sand and gravel require labor, capital, and supplies such as
fuel and intermediate goods. Data was collected from the 2002 Economic Census to determine
how much firms spend on each factor of production. In 2002, construction sand and gravel
mining firms spent $2.8 billion on these inputs. As Figure 2-2 illustrates, approximately 47% of
this spending was used to acquire supplies (U.S. Census Bureau, 2004b).
                             Capital
                          $428,372,000
                              15%
                         Supplies
                      $1,332,956,000
                          47%
                                                             Payroll
                                                         $1,073,833,000
                                                              38%
Figure 2-2.    Distribution of the Cost of Production Between Capital, Labor, and Supplies

2.2.6.3 Profitability of Construction Sand and Gravel Mining Firms
       Table 2-22 provides estimates of the mean profit (before taxes) to net sales ratios for the
construction sand and gravel industry (NAICS 212321) for the 2006-2007 fiscal year. These
ratios were calculated by Risk Management Associates using income statements for 180 firms in
the sand and gravel mining industry and are broken down based on the sales earned by the
reporting firms.

       As these ratios demonstrate, firms that reported greater sales also tended to be more
profitable. For example, firms with sales  over $25 million received an 11.9 % average return on
                                           23

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net sales, while firms with assets valued between $0 and $1 million only received a 6.7% average

return. The average return on sales for the entire industry was 9.5%.

Table 2-22. Mean Ratios of Profit before Taxes as a Percentage of Net Sales for NAICS
            212321, Sorted by Value of Assets

                                                                  $10
                Total            $1 Million $3 Million $5 Million  Million to
              Number of   Oto$l     to $3      to $5      to $10      $25     $25 Million    All
  Fiscal Year   Statements  Million   Million     Million    Million   Million   and Over    Firms
 4/1/2006-        180       6J        5^4        8^412A        9^91L9       95
 3/31/2007

Source: Risk Management Association (RMA). 2007. Annual Statement Studies 2007. Pennsylvania: RMA, Inc.
                                             24

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                                       SECTION 3
          COSTS, ECONOMIC IMPACTS, AND SMALL BUSINESS RESULTS
       Model Plants and Cost Analysis

       The number of firms affected by this NSPS is related to the number of facilities expected
to be affected by the standard.  In turn, the number of facilities likely to be affected is estimated
using model plants. Model plants are analytical constructs that are used to simulate actual new
plants potentially affected by this standard in a situation where we lack information on emissions
and controls for every potentially affected plant in each affected industry.  The model plants are
used to estimate the baseline emissions for each mineral type and industry, and are then used to
estimate the costs of compliance associated with regulatory options under consideration in this
NSPS.  New source impacts are considered for the 5 years following promulgation of the
standards (or 2009 to 2013). The most common control technologies used to comply with
subpart OOO include baghouses and wet suppression. The changes to subpart OOO would not
change the control technology used since most of the current technologies used to reduce PM at
these type of sources achieve the emissions limit to be promulgated as  part of this standard.5 In
the case of this analysis, the incremental impacts of compliance involve increased monitoring
instead of increased control measures. Both capital and annualized costs of compliance are
estimated.

       The changes to the NSPS included in the proposal are included in the final NSPS with a
few exceptions.  The final NSPS will exempt affected facilities with fugitive emissions
controlled by water carryover from the proposed requirement for 5-year repeat Method 9 testing
provided that the upstream water sprays in the wet suppression  system  are periodically inspected
according to subpart OOO.

       Table 1 provides a nationwide summary of the new model plants, baseline emissions,
incremental emission reductions and incremental costs of compliance.  These impacts are based
on the following regulatory options:
5 Several public commenters on the proposed NSPS suggested that baghouse costs could increase as a result of
   reducing the stack emission limit from 0.014 gr/dscf. In particular, the commenters stated that baghouse
   upgrades would be required for new baghouse to ensure compliance with the revised emission limit. These
   upgrades and costs are presented in detail in "Cost, Environmental and Energy Impacts for the Final Revisions to
   the NSPS for Non-Metallic Mineral Processing Plants (40 CFR Part 60, subpart OOO)," RTI International, April
   2009.
                                            25

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   •   Stack PM concentration limit of 0.014 gr/dscf
   •   Omission of the 7% stack opacity limit
   •   Revised fugitive emission limits of 12% for crushers and 7% for other affected
       facilities
   •   Reduced Method 9 test duration for fugitive affected facilities (reduced to 30
       minutes)
   •   Added monthly inspection that water is flowing for affected facilities controlled
       by direct or upstream water sprays
   •   Added repeat Method 9 testing every 5 years  for affected facilities with fugitive
       emissions that are not controlled by direct or upstream wet suppression water
       sprays.
   •   Added quarterly 30-minute Method 22 VE observations for baghouses
   •   Omission of §60.7(a)(l) notification of commencement of
       construction/reconstruction

       More information on these options can be found in the cost and other impacts
memo prepared by RTI mentioned above and the preamble to this NSPS.  The average
cost per ton of PM reduction (or average cost-effectiveness)  across all model plants and
sources is $1,860 (2007 dollars).
                                        26

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     Table 1. Summary of Nationwide Cost and Air Impacts for the Subpart OOO NSPS
     Revisions
Mineral type"
                NAICS
                for Each
                Mineral
                Type
          No. new
          model
          plants
   Total
 potential
   PM
 emission
reduction1",
   tpy
Percent
 PM25C
 Potential
  PM25
 emission
reduction,
Incremental
capital costd,
Incremental
annualized
cost, $/yr
(2007$)
Incremental
annualized
cost per
plant, $/yr
(2007$)
Crashed &
Broken stone
Sand&
Gravel:

Construction
   Industrial
Clays:
 21231
             96
    111
                             (457,600)
                                 187,860
  Bentonite
  Fuller's
earth
  Ball Clay
Rock
Salt/Sodium
Chloride
Gypsum
Sodium
Carbonate
Pumice
Barite
Fluorspar
Mica
Total
212325
212325

212324
212393
212399
212391

212399
212393
212393
212399
            332
    21
     5
     5
    37

    23
    10
    37
     3
     5
  503 tpy
456 Mg/yr
                 20
  20
  20
    4
    1
                1
                1
                2
               0.2
               0.2
             28 tpy
            25 Mg/yr
           (6% of total
              PM)
                                36,316
      145,265
       36,316
                    36.316
                   254,213

                    71,934
                    72,632
                   323,909
                    40,489
                    40,489
                 (395,955)
                                  11,887
     47,547
     11,887
                     11,887
                     83,207

                     24,864
                     23,773
                     98,926
                     12,366
                     12,366
                    935,554
                                    1,957
                                   11,887
      11,887
      11,887
                   11,887
                   11,887

                   24,864
                   11,887
                   12,366
                   12,366
                   12,366
                    2,818
     aNo new model plants are projected in the 5 years following promulgation of the NSPS review for the following
        mineral types: kaolin, fire clay, common clay, sodium sulfate, gilsonite, talc/pyrophyllite, boron (including
        borax, kernite, and colemanite), feldspar, diatomite, perlite, vermiculite, or kyanite (including andalusite,
        sillimanite, topaz, and dumortierite).
     blncludes potential emission reduction associated with lowering the stack emission limit from 0.022 gr/dscf to 0.014
        gr/dscf and the potential emission reduction associated with increased testing and monitoring (based on potential
        emissions from malfunctioning controls).  Potential reductions may be overstated because most baseline control
        devices already perform at 0.014 gr/dscf (such that no additional emission reduction would be gained from
        lowering the limits to 0.014 gr/dscf).
     °The split between PM and PM2 5 varies depending on mineral, process, and control system used. The percent PM2 5
        is a ballpark figure based on the limited available information in AP-42 and the 1982 BID.
                                                      27

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dNo additional cost is required for control equipment.  The incremental cost differences are associated with changes
   in the MRR requirements. There is a negative capital cost because the revised NSPS would reduce costs of
   initial testing requirements by (a) allowing a 30-minute Method 9 test instead of a 1-hour test for fugitive
   affected facilities; and (b) by omitting the 7% stack opacity limit and associated initial testing from subpart
   000.
Tpy = tons per year; Mg/yr = megagrams per year (1 Mg =1.1 tons).
Affected Industries
   This NSPS will affect new and modified/reconstructed sources in the industries listed in Table
   1 above. These industries are:

NAICS 21231 - Stone Mining and Quarrying
NAICS 212321 - Construction Sand and Gravel Mining
NAICS 212322 - Industrial Sand Mining
NAICS 212324 - Kaolin and Ball Clay Mining
NAICS 212325 - Clay and Ceramic and Refractory Minerals Mining
NAICS 212391 - Potash, Soda, and Borate Mineral Mining
NAICS 212393 - Other Chemical and Fertilizer Mineral Mining
NAICS 212399 - All Other Nonmetallic Mineral Mining

   The Small Business Administration (SBA) small business size standards for these industries is
   500 employees per ultimate parent entity.  These small business size standards can be found at
   http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf
   Thus, any business is classified as "small" by the  SBA in these industries if the ultimate
   parent entity has 500 employees  or less. This is the definition of small business that will be
   used for this rule and this analysis. The distribution of small businesses as we have estimated
   by affected NAICS can be found in Table  2.
                                            28

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Table 2. Projected Number of New Model Plants that Could be Owned by Small
Businesses.
Mineral type
No. new model
   plants"
Estimated number of small
       businesses
 Percent of firms
with less than SBA
  500 employees
NAICS
Crashed & Broken stone
Sand & Gravel:
   Construction
   Industrial
Clays:
  Bentonite
  Fuller's earth
  Ball Clay
Rock Salt/Sodium Chloride
Gypsum
Sodium Carbonate
Pumice
Barite
Fluorspar
Mica
Total
     96
      1
      4
      1
      1
      7
      1
      2
      8
      1
      1
     332
           1
           3
           1
           1
           6
           1
           2
           6
           1
           1
318 (96% of model plants)
                               95.7%
     82.9%
     82.9%
     73.9%
     78.4%
     92.3%
     50.0%
     92.3%
     78.4%
     78.4%
     92.3%
                     21231
212325
212325
212324
212393
212399
212391
212399
212393
212393
212399
aNo new model plants are projected in the 5 years following promulgation of the NSPS review for the following
   mineral types: kaolin, fire clay, common clay, sodium sulfate, gilsonite, talc/pyrophyllite, boron (including
   borax, kernite, and colemanite), feldspar, diatomite, perlite, vermiculite, or kyanite (including andalusite,
   sillimanite, topaz, and dumortierite).

   For this analysis, since over 90 percent of the model plants that could be owned by small
businesses are found in two industries, NAICS 21231  and 212321, we focus our economic and
small business analysis on impacts to these industries. The industry profile, which contains
essential background information to this analysis and is found earlier in this report, has revenue,
profit margin, and other data for each of these industries.  More details on the number of firms
in these industries, the organization of these industries, and their profit margins can be found in
the industry profile earlier in this report.

Economic Impacts

   As shown in this report, small businesses are quite  common in the industries that are the focus
of this analysis. In each industry, more than 95 percent of the businesses are classified as small
by the Small Business Administration (SBA)  according to their size standards.  For this analysis,
we use average annualized compliance costs as a percentage of firm-level sales or revenues,
otherwise called the "sales test," to estimate impacts to affected small businesses. Use of this
metric to estimate impacts to small businesses is consistent with Table  1 on pp. 24-25 of the
                                             29

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latest EPA guidance for complying with the Regulatory Flexibility Act (RFA) as amended by the
Small Business Regulatory Enforcement Fairness Act (SBREFA) found at
http://www.epa.gov/sbrefa/documents/rfafmalguidance06.pdf  Using average annual revenue
for the small firms for each industry available in our industry profile, and applying the average
annualized compliance cost incurred by each firm (using model plant costs), we arrive at the
following impacts:

NAICS 21231 - Average Annual Revenue Per Small Firm = $3.7 million
               Average Annualized Compliance Cost Per Small Firm = $1,957 (2007$)
               Average Annualized Cost Per Annual Revenue for Small Firms =
   1957/3700000 = 0.05 percent

NAICS 212321 - Average Annual Revenue Per Small Firm = $1.7 million
               Average Annualized Compliance Cost Per Small Firm = $1,957 (2007$)
               Average Annualized Cost Per Revenue for Small Firms = 1957/2000000 = 0.10
   percent

   We find that the average annualized compliance cost is no more than 0.10 percent of the sales
or revenues for an affected small  firm in our analysis. Thus, we conclude there is no significant
impact on a substantial number of small businesses (or no SISNOSE) as a result of complying
with this NSPS.  We find that more than 90 percent of the small businesses affected by this
NSPS are found in these two industries, but we find no significant impact for any of these small
businesses.

   It should be noted that the metric of cost to sales per firm is an estimate of the maximum price
increase that must take place to a firm's output in order to have no net change in its revenue
assuming none of the costs can be passed along to its customers. Given that these firms can pass
along some share of the costs of production to their customers, the output price increase can be
no more than the cost to sales estimate. Hence, the maximum price increase for output from
these industries can be no greater than 0.10 percent (the cost to sales estimate for the industry
most impacted, NAICS 212321).
                                          30

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                                    REFERENCES

Dun & Bradstreet (D&B). 2008a. Dimension Stone Industry Report.

Dun & Bradstreet (D&B). 2008b. Other Crushed and Broken Stone Industry Report.

Dun & Bradstreet (D&B). 2008c. Construction Sand and Gravel Industry Report.

Mineral Information Institute (Mil). 2008. Sand & Gravel. Available at
       . As obtained on March 18, 2008.

Risk Management Association (RMA). 2008. Annual Statement Studies 2007-8. Pennsylvania:
       RMA, Inc

Small Business Administration. 2008. Table of Small Business Size Standards. Available at
        As obtained on March 31, 2008.

U.S. Bureau of the Census. 2005. Statistics of U.S. Businesses: Number of Firms, Number of
       Establishments, Employment, and Annual Payroll by Employment Size of the Enterprise
       for the United States, All Industries 2005. Available at
       . As obtained on March 17, 2008.

U.S. Bureau of the Census. 2004a. Statistics of U.S. Businesses: Number of Firms, Number of
       Establishments, Employment, and Annual Payroll by Employment Size of the Enterprise
       for the United States, All Industries 2004. Available at
       . As obtained on March 17, 2008.

U.S. Bureau of the Census. 2004b. 2002 Economic Census, Industry Series—NAICS 212321.
       Washington, DC: Government Printing Office. Available at
       . As obtained on March 18,
       2008.

U.S. Bureau of the Census. 2003. Statistics of U.S. Businesses: Number of Firms, Number of
       Establishments, Employment, and Annual Payroll by Employment Size of the Enterprise
       for the United States, All Industries 2003. Available at
       . As obtained on March 17, 2008.

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U.S. Bureau of Labor Statistics (BLS). 2008. "Producer Price Index Industry Data: Customizable
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U.S. Geological Survey. 2007a. 2006 Minerals Yearbook, Dimension Stone. Washington, DC:
       U.S. Department of the Interior. Available at
       . As obtained on March  25, 2008.

U.S. Geological Survey. 2005a. 2004 Minerals Yearbook, Dimension Stone. Washington, DC:
       U.S. Department of the Interior. Available at
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U.S. Geological Survey. 2005b. 2004 Minerals Yearbook, Crushed Stone. Washington, DC: U.S.
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 United States                Office of Air Quality Planning and              Publication No.
 Environmental Protection                Standards                     EPA- 452/R-09-003
 Agency                     Health and Environmental Impacts                  April 2009
                                       Division
	Research Triangle Park, NC	
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