ENV-50-11-00004-P Sewage Sludge Incineration Units

12/14/11 N.Y. St. Reg. ENV-50-11-00004-P

NEW YORK STATE REGISTER

VOLUME XXXIII, ISSUE 50

December 14, 2011

RULE MAKING ACTIVITIES

DEPARTMENT OF ENVIRONMENTAL CONSERVATION

PROPOSED RULE MAKING

HEARING(S) SCHEDULED

 

I.D No. ENV-50-11-00004-P

Sewage Sludge Incineration Units

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

Amendment of Parts 200 and 219 of Title 6 NYCRR.

Statutory authority:

Environmental Conservation Law, sections 1-0101, 3-0301, 3-0303, 19-0103, 19-0105, 19-0107, 19-0301, 19-0302, 19-0303, 19-0305, 71-2103 and 71-2105; Clean Air Act; sections 111 and 129; and 40 CFR 60, subpart MMMM

Subject:

Sewage sludge incineration units.

Purpose:

To regulate the emission of air contaminants from existing sewage sludge incineration units.

Public hearing(s) will be held at:

2:00 p.m., Jan. 17, 2012 at Department of Environmental Conservation Annex, Region 2, 11-15 47th Ave., Hearing Rm. 106, Long Island City, NY; 2:00 p.m., Jan. 18, 2012 at Department of Environmental Conservation, 625 Broadway, Public Assembly Rm. 129A, Albany, NY; and 2:00 p.m., Jan. 19, 2012 at Department of Environmental Conservation, Region 8 Office Conference Rm., 6274 E. Avon-Lima Rd. (Rtes. 5 and 20), Avon, NY.

Interpreter Service:

Interpreter services will be made available to hearing impaired persons, at no charge, upon written request submitted within reasonable time prior to the scheduled public hearing. The written request must be addressed to the agency representative designated in the paragraph below.

Accessibility:

All public hearings have been scheduled at places reasonably accessible to persons with a mobility impairment.

Text of proposed rule:

Existing Sections 200.1 through 200.8 remain unchanged.

Existing Section 200.9, Table 1 is amended by adding the following:

Regulation	Referenced Material	Availability
219-9.1	40 CFR Part 60, Subpart MMMM (March 21, 2011)	*
219-9.2	40 CFR Part 60, Subpart MMMM (March 21, 2011)	*
219-9.3	40 CFR Part 60, Subpart MMMM (March 21, 2011)	*
219-9.3(a)(1)(iv)	40 CFR Part 60.5175 (March 21, 2011)	*
219-9.3(a)(2)	40 CFR Part 60, Subpart MMMM (March 21, 2011)	*
219-9.3(b)(1)(iv)	40 CFR Part 60.5175 (March 21, 2011)	*
219-9.3(b)(5)	40 CFR Part 60, Subpart MMMM (March 21, 2011)	*

Existing Section 200.10, Table 2 is amended by adding the following entry after the listing for EEEE and FFFF*, and before the listing for Appendix A:

40 CFR 60 Subpart	Source Category	Page numbers in July 1, 2003 Edition of 40 CFR 60 or Federal Register Citation
MMMM	Emission Guidelines and Compliance Times for Existing Sewage Sludge Incineration Units	60 FR 15429 -15454 March 21, 2011

Existing Sections 200.11 through 200.16 remain unchanged.

Existing Section 219-1.1 through Subdivision 219-1.2(g) remains unchanged.

New Subdivision 219-1.2(h) is added as follows:

(h) Subpart 219-9, Emission Guidelines and Compliance Schedules for Existing Sewage Sludge Incineration Units.

(1) Subpart 219-9 of this Part applies to existing sewage sludge incineration units located at wastewater treatment facilities.

(2) Subpart 219-9 of this Part applies statewide.

Existing Subparts 219-2 through 219-8 remain unchanged.

A new Subpart 219-9 is added as follows:

Section 219-9.1 Applicability.

The federal requirements of 40 CFR part 60, subpart MMMM, incorporated by reference in 6 NYCRR Part 200 (see Table 2, Section 200.10 of this Title), apply to sewage sludge incineration (SSI) units, located at wastewater treatment facilities, designed to treat domestic sewage sludge, the construction of which commenced on or before October 14, 2010.

Section 219-9.2 Definitions.

(a) To the extent that they are not inconsistent with the specific definitions in subdivision (b) of this section, the general definitions of Parts 200 and 201 of this Title, and 40 CFR part 60, subpart MMMM apply (see Table 2, Section 200.10 of this Title).

(b) For the purpose of this Subpart, the following definitions apply:

(1) 'Fluidized bed incinerator' means an enclosed device in which organic matter and inorganic matter in sewage sludge are combusted in a bed of particles suspended in the combustion chamber gas.

(2) 'Multiple hearth incinerator' means a circular steel furnace that contains a number of solid refractory hearths and a central rotating shaft; rabble arms that are designed to slowly rake the sludge on the hearth are attached to the rotating shaft. Dewatered sludge enters at the top and proceeds downward through the furnace from hearth to hearth, pushed along by the rabble arms.

(3) 'Sewage sludge' means solid, semisolid, or liquid residue generated during the treatment of domestic sewage in a treatment works. Sewage sludge includes, but is not limited to, domestic septage; scum or solids removed in primary, secondary, or advanced wastewater treatment processes; and a material derived from sewage sludge. Sewage sludge does not include ash generated during the firing of sewage sludge in a sewage sludge incineration unit or grit and screenings generated during preliminary treatment of domestic sewage in a treatment works.

(4) 'Sewage sludge incineration (SSI) unit' means an incineration unit combusting sewage sludge for the purpose of reducing the volume of the sewage sludge by removing combustible matter. Sewage sludge incineration unit designs include fluidized bed and multiple hearth. A SSI unit also includes, but is not limited to, the sewage sludge feed system, auxiliary fuel feed system, grate system, flue gas system, waste heat recovery equipment, bottom ash system, and all ash handling systems connected to the bottom ash handling system. The combustion unit bottom ash system ends at the truck loading station or similar equipment that transfers the ash to final disposal. The SSI unit does not include air pollution control equipment or the stack.

(5) 'State Plan approval' means the effective date of EPA's approval of New York State's SSI State Plan.

Section 219-9.3 Compliance/Closure Schedules.

Owners or operators of applicable SSI units must achieve full compliance with the requirements of 40 CFR part 60, subpart MMMM (see Table 2, Section 200.10 of this Title), and this Subpart by either complying with one of the two schedules specified in Subdivisions (a) and (b) of this Section, or permanently closing the SSI unit as specified in Subdivision (c) of this Section.

(a) 'One year compliance schedule'. If compliance will be achieved less than one year after State Plan approval, the two increments of progress specified in Paragraphs (1) and (2) of this Subdivision must be met.

(1) Submit a final control plan to the Department's appropriate regional air pollution control engineer for review and approval by the earlier of the following two dates: three months after State Plan approval, or September 21, 2012. The final control plan must include:

(i) A description of the proposed air pollution control devices that will be installed and process changes that will be used to comply with the emission limits, standards and other requirements of this Subpart;

(ii) The type(s) of waste that is(are) proposed to be combusted, if waste other than sewage sludge is combusted in the unit;

(iii) The maximum design capacity of the SSI;

(iv) If applicable, the petition for site-specific operating limits pursuant to 40 CFR part 60.5175 (see Table 2, Section 200.10 of this Title).

(2) Achieve full compliance with approved final control plan and requirements of 40 CFR part 60, subpart MMMM (see Table 2, Section 200.10 of this Title), by the earlier of the following two dates: 12 months after State Plan approval, or June 21, 2013.

(b) 'Extended compliance schedule'. If compliance will be achieved more than one year after State Plan approval, the five increments of progress specified in Paragraphs (1) through (5) of this Section must be met.

(1) Submit a final control plan which contains an extended compliance schedule to the Department's appropriate regional air pollution control engineer for review and approval by the earlier of the following two dates: three months after State Plan approval, or September 21, 2012.

The final control plan must include:

(i) A description of the proposed air pollution control devices that will be installed and process changes that will used to comply with the emission limits, standards and other requirements of this Subpart;

(ii) The type(s) of waste that is(are) proposed to be combusted if waste other than sewage sludge is combusted in the unit;

(iii) The maximum design capacity of the SSI;

(iv) If applicable, the petition for site-specific operating limits under 40 CFR part 60.5175 (see Table 2, Section 200.10 of this Title).

(2) Contracts must be awarded and purchase orders must be issued for emission control systems, installation, and process modifications and the acquisition of required component parts by the earlier of the following two dates: nine months after State Plan approval, or March 21, 2013.

(3) Process changes and the on-site construction or installation of emission control equipment must be initiated by the earlier of the following two dates: 15 months after State Plan approval, or September 21, 2013.

(4) Process changes and on-site construction or installation of emission control equipment must be completed by the earlier of the following two dates: 32 months after State Plan approval, or by November 21, 2015.

(5) Full compliance with the approved final control plan and requirements of 40 CFR part 60, subpart MMMM (see Table 2, Section 200.10 of this Title), must be achieved by the earlier of the following two dates: 36 months after State Plan approval, or March 21, 2016.

(c) 'Final Closure Schedule'. Owners or Operators of an applicable SSI unit that plan to cease operation must submit a closure notification, including the planned date of closure, to the Department's appropriate regional air pollution control engineer for approval by the earlier of the following two dates: three months after State Plan approval, or September 21, 2012. Permanent closure of an applicable SSI unit must occur by the earlier of the following two dates: 36 months after State Plan approval, or March 21, 2016.

Section 219-9.4 Title V Permit Application Compliance Schedule.

Owners or Operators of an applicable SSI unit not subject to an earlier permit application deadline must submit a complete Title V permit application to the Department for review and approval by the earlier of the following two dates: 12 months after State Plan approval, or March 21, 2014.

Text of proposed rule and any required statements and analyses may be obtained from:

John Henkes, New York State Department of Environmental Conservation, 625 Broadway, 2nd Floor, Albany, NY 12233-3254, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

January 26, 2012.

Additional matter required by statute:

Pursuant to Article 8 of the State Environmental Quality Review Act, a Short Environmental Assessment Form, a Negative Declaration and a Coastal Assessment Form have been prepared and are on file. This rule must be approved by the Environmental Board.

This action was not under consideration at the time this agency's regulatory agenda was submitted.

Regulatory Impact Statement

STATUTORY AUTHORITY:

This regulation is being proposed pursuant to Sections 111 and 129 of the Federal Clean Air Act (Act), and 40 CFR 60, Subpart MMMM "Emission Guidelines and Compliance Times for Existing Sewage Sludge Incineration Units" (Guidelines) enacted by the Environmental Protection Agency (EPA) on March 21, 2011. New York State's statutory authority for these regulations is found in the Environmental Conservation Law (ECL) Sections 1-0101, 3-0301, 3-0303, 19-0103, 19-0105, 19-0107, 19-0301, 19-0302, 19-0303, 19-0305, 71-2103, and 71-2105.

Section 1-0101. This Section outlines the policy declaration for the Department regarding the protection of New York State's environment and natural resources including the control of "air pollution, in order to enhance the health, safety and welfare of the people of the state and their overall economic and social well being." Section 1-0101 further requires that it is the policy of the State to coordinate the State's environmental plans, functions, powers and programs with those of the federal government and other regions and manage air resources to the end that the State may fulfill its responsibility as trustee of the environment for present and future generations. This Section provides that it is the policy of the State to foster, promote, create and maintain conditions by which man and nature can thrive in harmony by providing that care is taken for air resources that are shared with other states.

Section 3-0301. This Section states that it shall be the responsibility of the Department to carry out the environmental policy of the State. In furtherance of that mandate, Section 3-0301(1)(a) gives the Commissioner authority to "[c]oordinate and develop policies, planning and programs related to the environment of the State and regions thereof..." Section 3-0301(1)(b) directs the Commissioner to promote and coordinate management of, among other things, air resources "to assure their protection, enhancement, provision, allocation, and balanced utilization consistent with the environmental policy of the State and take into account the cumulative impact upon all of such resources in making any determination in connection with any license, order, permit, certification or other similar action or promulgating any rule or regulation, standard or criterion." Pursuant to ECL Section 3-0301(1)(i), the Commissioner is charged with promoting and protecting the air resources of New York including providing for the prevention and abatement of air pollution. Section 3-0301(2)(a) permits the Commissioner to adopt rules and regulations to carry out the purposes and provisions of the ECL. Section 3-0301(2)(g) allows the Commissioner to enter and inspect sources of air pollution and to verify compliance. Section 3-0301(2)(m) gives the Commissioner authority to "adopt such rules, regulations, and procedures as may be necessary, convenient, or desirable to effectuate the purposes of this chapter."

Section 3-0303. This Section requires that the Department formulate and, from time to time, revise a statewide environmental plan for the management and protection of the quality of the environment and the natural resources of the State. In formulating this plan and any revisions, the Department is required to conduct public hearings, cooperate with other departments, agencies and government officials, and any other interested parties, and obtain assistance and data as may be necessary from any department, division, board, bureau, commission or other agency of the State or political subdivision or any public authority to enable the Department to carry out its responsibilities.

Section 19-0103. This Section is a declaration of the State's policy with specific reference to air pollution. "It is declared to be the policy of the State of New York to maintain a reasonable degree of purity of the air resources of the State. . . and to that end to require the use of all available practical and reasonable methods to prevent and control air pollution."

Section 19-0105. This Section sets out the purpose of Article 19 of the ECL, "to safeguard the air resources of the State from pollution" consistent with the policy expressed in Section 19-0103 and in accordance with other provisions of Article 19.

Section 19-0107. This Section provides definitions to be used in the application of the requirements of Article 19 of the ECL.

Section 19-0301. This Section states that consistent with the policy of the State as it is declared in Section 19-0103, the Department shall have power to formulate, adopt and promulgate, amend and repeal codes and rules and regulations for preventing, controlling or prohibiting air pollution, requires that permits be obtained from the Department, and establishes the degree of air pollution or air contamination that may be permitted.

Section 19-0302. This Section states that permit applications, renewals, modifications, suspensions and revocations will be governed by rules and regulations adopted by the Department, and that permits issued may not include performance, emission or control standards more stringent than any established by the Act or by EPA unless such standards are authorized by rules or regulations.

Section 19-0303. This Section provides that a code, rule or regulation or any amendment or repeal thereof will not be adopted until after a public hearing is held and may not become effective until filed with the Secretary of State. The Department may also recognize the difference in the State's air quality areas in its rulemaking. Finally, this section prescribes procedures for adopting any code, rule or regulation which contains a requirement that is more stringent than the Act or regulations issued pursuant to the Act by the EPA.

Section 19-0305. This Section authorizes the Department to enforce the codes, rules and regulations established in accordance with Article 19 of the ECL.

Sections 71-2103 and 71-2105 set forth the civil and criminal penalty structures for violations of Article 19.

LEGISLATIVE OBJECTIVES:

Article 1 of the ECL was adopted to establish that the policy of the State will be to conserve, improve and protect its natural resources and environment and control water, land and air pollution, in order to enhance the health, safety and welfare of the people of the State and their overall economic and social well being. Additionally, Article 1 directs that the State improve and coordinate the environmental programs of the State to manage the basic resources of water, land, and air.

Article 3 of the ECL establishes the organization, functions, powers, duties and jurisdiction of the Department. Additionally, it requires the formulation of an environmental plan for the management and protection of the environment and natural resources of the State, and the submission of periodic revisions of such plan to the governor and to the Department of State.

Article 19 of the ECL was adopted for the purpose of safeguarding the air resources of the State from pollution in accordance with Article 1. To facilitate this purpose, the Legislature bestowed general and specific powers and duties on the Department, including the power to formulate, adopt, promulgate, amend, and repeal regulations for preventing, controlling or prohibiting air pollution.

The proposed amendments to Part 200 and Subpart 219-1, and the new proposed Subpart 219-9 of Title 6 of the Official Compilation of Codes, Rules and Regulations of the State of New York will make the State's requirements for existing sewage sludge incineration (SSI) units consistent with recent federally promulgated Guidelines for SSI units, as required by the Act. Failure to do so will result in the imposition of a federal plan for the State's SSI units, and the possibility of sanctions imposed by EPA for New York State's failure to file a SSI State Plan.

NEEDS AND BENEFITS:

Existing SSI units are currently regulated by the Department's Part 212, "General Process Emission Sources" and federal 40 CFR Part 503, Subpart E "Incineration" and 40 CFR Part 60, Subpart O "Standards of Performance for Sewage Treatment Plants". These existing regulations do not address levels of control appropriate for effectively regulating incineration of sewage sludge at existing SSI units. There have been advances in technology and in our understanding of the potential adverse environmental effects of incineration at SSI units since the State and federal regulations were first developed. Furthermore, as mandated by Sections 111 and 129 of the Act, the EPA promulgated Guidelines for existing SSI units in 40 CFR Part 60, Subpart MMMM on March 21, 2011. The Guidelines are more stringent than existing State and federal regulations. Accordingly, New York State is required by the Act to submit to EPA by March 21, 2012, a SSI State Plan to implement and enforce the Guidelines requirements. Failure to do so may result in sanctions imposed against the State by EPA.

To comply with this federal Act mandate, DEC proposes to adopt a new Subpart 219-9 which would apply statewide to wastewater treatment facilities (WWTF) that operate SSI units constructed on or before October 14, 2010. Subpart 219-9 will be entitled "Emission Guidelines and Compliance Times for Existing Sewage Sludge Incineration Units". Subpart 219-9 will incorporate by reference all the federal requirements set forth in the Guidelines and in doing so, will establish more stringent requirements for affected existing SSI units in the state. By adopting these Guidelines, Subpart 219-9 will establish a clear and environmentally sound set of criteria for affected existing SSI units. These criteria will provide a basis for WWTF owners or operators to decide whether to retain, replace or modify their existing SSI units. The criteria will also address public concerns about incineration of sewage sludge.

As a result of implementing these Guidelines, EPA estimates that nationwide SSI emissions for the following pollutants will be reduced as follows: particulate matter by 17 percent, cadmium by 55 percent, lead by 47 percent, sulfur dioxide by 61 percent, and hydrogen chloride by 65 percent. Reductions in nitrogen oxides, carbon monoxide, mercury, and dioxin/furans are expected to be minimal due to the Department's industrial pre-treatment program and solid waste management requirements. Implementation of the Guidelines will also generate up to date stack testing information on existing SSI units.

The background information documents that support the EPA proposal and promulgation of the Guidelines for this action can be found in a single EPA established docket under Docket ID No. EPA-HQ- OAR-2009-0559. This docket includes previous actions including the standards proposed on October 14, 2010 (75 FR 63260) and a supplemental notice issued on November 5, 2010 (75 FR 68296). All documents in the docket are listed on EPA's website at http://www.regulations.gov.

COSTS:

Adoption of Subpart 219-9 will entail additional administrative costs for both state and local governments where operation of existing SSI units continues. For some WWTFs there will be additional review required to determine compliance with the mandatory emission limits and stack testing requirements. The cost of complying with the requirements or finding acceptable alternatives for disposal of sewage sludge will be highly variable. These costs will accrue irrespective of whether this regulation is promulgated, since the Act mandates that EPA impose the requirements on affected SSI units if the State fails to regulate.

Implementation of Subpart 219-9 will result in varying economic impacts for municipalities which choose to continue to incinerate their sewage sludge in an affected SSI unit(s). To determine how much improvement over current emission controls was necessary, EPA compared average pollutant concentration values used to calculate baseline annual emissions for each SSI unit to the proposed emissions limits, and percentages were calculated to quantify the amount of improvement needed for the SSI unit to meet the proposed limits. EPA subcategorized the existing SSI units into two main groups: multiple hearth (MH) units and fluidized bed (FB) units. Based on these factors, pollutant-specific control methods were chosen by EPA for SSI units requiring more than 10 percent improvement to meet the proposed limits.

EPA's cost estimates include detailed costs for emission controls if required, stack testing, monitoring, and reporting and recordkeeping. On a nationwide basis, EPA estimates that the capital cost for all existing SSI units to meet the proposed Maximum Achievable Control Technology (MACT) floor emission limits of the Guidelines is approximately $55.0 million. Total nationwide annual cost for controls for all existing SSI units is about $17.8 million/yr.

There are currently over 600 WWTFs in New York State. Of those, only 12 WWTFs currently operate or have the ability to operate one or more SSI units. In EPA's studies, 10 of the State's 12 existing WWTFs that operate SSI units were included in the cost analysis. These 10 WWTFs operate a total of 18 SSI units. Of the 18 units, EPA projects that 11 would not need any additional control equipment to comply with the Guidelines. For these, only monitoring, record keeping and reporting requirements are considered added costs. The added costs include a total capital investment estimated to be $61,250 per SSI unit and an annual cost of $31,000 per SSI unit. The remaining seven SSI units (located at four facilities: Poughkeepsie (T) Arlington WWTP, Southtowns Sewage Treatment Plant (STP), Bird Island STP and the Town of Tonawanda Sewer District #2 STP) are expected to need packed bed scrubbers as added air emission controls to comply with the Guidelines requirements for sulfur dioxide (SO2) and/or hydrogen chloride (HCL) requirements. EPA estimates that the cost for adding the packed bed scrubbers ranges from approximately $375,000 to $4,700,000 per SSI unit, based primarily on the unit's capacity, with annual costs ranging from $89,000 to $1,000,000 per SSI unit.

The actual needs and costs to an individual WWTF will become more accurate once the individual WWTF owner/operator performs a detailed evaluation of its facility's ability to meet the proposed requirements of Subpart 219-9. In its estimates, EPA also compared the total operating costs for the SSI units, including the costs associated with implementing the Guidelines, with the cost of landfilling the sewage sludge. Using average cost factors for the facilities that only require added monitoring, recordkeeping and reporting requirements, the cost for continuing the SSI unit operations was typically two to three times less expensive than landfilling. Again, using nationwide average cost factors for the SSI units requiring the addition of packed bed scrubbers, the difference between landfilling and continuing SSI unit operations ranged from 50 percent of the cost of landfilling to slightly more expensive than landfilling for SSI units 1 and 2 of the Bird Island wastewater treatment facility in Buffalo.

PAPERWORK:

Subpart 219-9 will require WWTF owners or operators of SSI units to make submittals to the Department including stack testing reports, continuous emission monitoring reports, a plan to optimize operation and avoid excess emissions, and a report of data summaries for affected SSI units. Continuous monitoring of emissions for some pollutants is required and must be supported by records of measurements and other required information. Accordingly, summaries of these records must be submitted to the Department. In addition, WWTF owners or operators who elect to upgrade affected existing SSI units to meet the new requirements must submit compliance schedules and apply for and obtain 6 NYCRR Part 201 Title V operating permits. Such documents must be prepared by professional engineers licensed in New York State.

LOCAL GOVERNMENT MANDATES:

The 12 WWTFs that operate SSI units in the State are owned by municipalities. Local municipalities which choose to continue to incinerate sewage sludge will be mandated to meet the requirements of Subpart 219-9. A municipality that chooses to close its SSI unit(s) will need to find an alternative method of disposal for the sewage sludge. In either case the municipality will need to address these actions in its budget process by passing the costs onto the public or the other municipalities served by the SSI unit(s).

DUPLICATION BETWEEN THIS REGULATION AND OTHER REGULATIONS AND LAWS:

This proposal does not duplicate any other federal or state regulations or statutes. The State, by federal law, must promulgate this regulation as part of a plan to implement the Guidelines for existing SSI units.

ALTERNATIVES:

Adoption of revisions to Part 200 and Subpart 219-1 and new Subpart 219-9 is necessary to meet federal requirements and, as such, there are no viable alternatives to this rulemaking. If the Department takes no action EPA may choose to sanction the state as a result of its failure to file a State Plan. In addition, if the Department does not have an "approved" State Plan by March 21, 2013, EPA is required to implement a federal plan. Furthermore, if New York State fails to meet the federal deadlines and promulgate this regulation, citizen suits may be filed against the EPA to force it to take action against the State.

FEDERAL STANDARDS:

Proposed Subpart 219-9 incorporates the Guidelines as promulgated by EPA in 40 CFR Part 60, Subpart MMMM on March 21, 2011. Additional increments of progress (construction milestones) have been added to the compliance schedule of Section 219-9.3 to further assist WWTF facilities to meet the compliance schedule.

COMPLIANCE SCHEDULE:

Subpart 219-9 includes a compliance schedule that requires all existing WWTF owners or operators of SSI units to achieve final compliance as expeditiously as practicable following EPA approval of New York State's SSI State Plan but no later than the earlier of the following: March 21, 2016 or three years after the effective date of EPA's approval of New York State's SSI State Plan. For compliance schedules that extend more than one year following the effective date of State Plan approval by EPA, the schedule includes dates for enforceable increments of progress including: submission of a final control plan, award contracts, initiate on-site construction, complete on-site construction and achieve final compliance.

In addition, if an existing SSI unit is not subject to an earlier permit application deadline, the SSI unit owner or operator (permittee) must submit a complete Title V permit application by the earlier of the following: 12 months after the effective date of the EPA approved SSI State Plan that implements the Guidelines; or March 21, 2014.

If the State fails to receive EPA approval of its State Plan by March 21, 2013, a Federal Plan will go into effect. WWTFs subject to the Federal Plan will have until March 21, 2016 to demonstrate compliance.

Regulatory Flexibility Analysis

EFFECTS ON SMALL BUSINESS AND LOCAL GOVERNMENTS:

The New York State Department of Environmental Conservation (Department) proposes to add a new Subpart 219-9 to Part 219 of Title 6 of the Official Compilation of Codes, Rules and Regulations of the State of New York. Revisions are also being proposed to Part 200, General Provisions, and Subpart 219-1, Incineration - General. Proposed Subpart 219-9 is being added to address recently promulgated federal requirements entitled: Emission Guidelines and Compliance Times for Existing Sewage Sludge Incineration Units (Guidelines) found at 40 CFR Part 60, Subpart MMMM. Revisions are also being made to the reference tables found in Part 200. Specifically, Subpart 200.9 Table 1 and Subpart 200.10 Table 2 are being amended to add and formally incorporate by reference the Federal requirements of 40 CFR Part 60, Subpart MMMM. Subpart 219-1, which provides definitions and outlines the applicability requirements of the various Part 219 Subparts, is also being amended to include the proposed requirements of Subpart 219-9.

The proposed revisions to Parts 219 and 200 are not expected to have an effect on small business but will have an effect on local governments. Subpart 219-9 will regulate the emission of air contaminants from New York State's 12 existing wastewater treatment facilities (WWTF) that operate sewage sludge incineration (SSI) units, constructed on or before October 14, 2010, which are dedicated to the incineration of dewatered sewage sludge. These WWTFs are all owned by local municipalities.

The SSI units are owned and operated primarily by larger municipalities who often take dewatered sludge from surrounding communities (e.g., Albany County Sewer District accepts and incinerates dewatered sludge from 25 nearby, smaller municipal WWTFs). It is expected that the impact of proposed Subpart 219-9 on the 12 municipal WWTFs will have a far reaching affect. Both the existing WWTFs that operate SSI units and the smaller municipal WWTFs they provide service to will need to examine their sewage sludge disposal options.

COMPLIANCE REQUIREMENTS:

The Department expects that small businesses will not be subject to the proposed requirements. Local governments with SSI units will be subject to these proposed added requirements. Affected SSI units will have added performance testing, operator training, monitoring, recordkeeping and reporting requirements and will be subject to emission limitation requirements for nine (9) pollutants (particulate matter (PM), sulfur dioxide (SO2), hydrogen chloride (HCl), nitrogen oxides (NOx), carbon monoxide (CO), lead (Pb), cadmium (Cd), mercury (Hg), and dioxins/furans).

PROFESSIONAL SERVICES:

Local governments may face additional costs related to professional services for cost analysis, emission testing, and the design of additional control equipment if necessary.

COMPLIANCE COSTS:

The Department expects that small businesses will not be subject to the proposed requirements and accordingly, there should not be compliance costs for small businesses. There are, however, compliance costs expected for local governments with existing SSI units. An Environmental Protection Agency (EPA) study included a cost analysis of 10 of New York State's 12 WWTF's that operate SSI units. According to this study, these 10 WWTFs operate a total of 18 SSI units. Of the 18 units, EPA projects that 11 would not need any additional control equipment to comply with the Guidelines. The added costs for these 11 units would only include monitoring, recordkeeping and reporting requirements at an estimated total capital investment of $61,250 per SSI unit, and an annual cost of $31,000 per SSI unit.

EPA projects that the remaining seven SSI units (located at four facilities: Poughkeepsie (T) Arlington WWTP, Southtowns Sewage Treatment Plant (STP), Bird Island STP and the Town of Tonawanda Sewer District #2 STP) are expected to need packed bed scrubbers as added air emission controls to comply with the Guidelines requirements for sulfur dioxide (SO2) and/or hydrogen chloride (HCL) requirements. EPA estimates that the cost for adding the packed bed scrubbers ranges from approximately $375,000 to $4,700,000 per SSI unit, based primarily on the unit's capacity, with annual costs ranging from $89,000 to $1,000,000 per SSI unit. Specific costs for the 12 municipalities with existing SSI units cannot be established until these municipalities complete a detailed evaluation of their WWTFs' SSI unit(s) and perform an individual cost analysis.

MINIMIZING ADVERSE IMPACT:

The expected adverse effect of this regulation is the increased cost of compliance with the regulations, or added cost for alternative sewage sludge disposal. Development of Subpart 219-9 is a direct mandate of the federal Clean Air Act (Act). Compliance costs will accrue irrespective of whether this regulation is promulgated or not, since the Act mandates that EPA impose the requirements on affected SSI units if New York State fails to do so.

SMALL BUSINESS AND LOCAL GOVERNMENT PARTICIPATION:

A letter discussing the Department's proposed amendments to Parts 219 and 200, a Notice of Operational Intent Form, and a copy of an EPA Fact Sheet for the Guidelines were sent to the 12 directly affected WWTF owners. In addition, the Department responded to inquiries regarding these mailings by telephone and e-mail, and held a meeting with a local municipality. EPA, in the development of its Guidelines, held public hearings on a national level. Public hearings will be held to obtain comments on the Departments proposed amendments to Parts 219 and 200 and participation by affected parties will be sought through these hearings.

ECONOMIC AND TECHNOLOGICAL FEASIBILITY:

The Department expects that small businesses will not be affected by new Subpart 219-9. For local governments needing to upgrade their controls, technological feasibility is not an issue. Control technologies for the limits imposed are well established and readily available. There are economic issues that local governments will need to address. Before they can decide whether to close down or comply with the added requirements, engineering studies will need to be conducted which were not in their budgets. If the compliance requirements are too costly, the economics may be such that other disposal options become more cost-effective. In either case, costs to local governments will increase and need to be addressed.

CURE PERIOD:

In accordance with NYS State Administrative Procedures Act (SAPA) Section 202-b, this rulemaking does not include a cure period because the Department is undertaking this rulemaking to comply with federal Clean Air Act requirements, requiring the incorporation and implementation of federal emission guidelines for existing Sewage Sludge Incineration (SSI) units. The proposed rule provides increments of progress (construction milestones) to assist facilities in meeting the federal compliance schedule.

Rural Area Flexibility Analysis

TYPES AND ESTIMATED NUMBERS OF RURAL AREAS AFFECTED:

The New York State Department of Environmental Conservation (Department) proposes to add a new Subpart 219 9 to Part 219 of Title 6 of the Official Compilation of Codes, Rules and Regulations of the State of New York. Revisions are also being proposed to Part 200, General Provisions, and Subpart 219-1, Incineration - General. Proposed Subpart 219-9 is being added to address recently promulgated federal requirements entitled: Emission Guidelines and Compliance Times for Existing Sewage Sludge Incineration Units (Guidelines) found at 40 CFR Part 60, Subpart MMMM. Revisions are also being made to the reference tables found in Part 200. Specifically, Subpart 200.9 Table 1 and Subpart 200.10 Table 2 are being amended to add and formally incorporate by reference the Federal requirements of 40 CFR Part 60, Subpart MMMM. Subpart 219-1, which provides definitions and outlines the applicability requirements of the various Part 219 Subparts, is also being amended to include the proposed requirements of Subpart 219-9.

New Subpart 219-9 will regulate the emission of air contaminants from New York State's 12 existing wastewater treatment facilities (WWTF) that operate sewage sludge incineration (SSI) units, constructed on or before October 14, 2010. These WWTF's are all owned by local municipalities. Three of these WWTFs are located in counties which are considered rural (Herkimer, Jefferson and Warren). The remaining WWTFs are not in rural areas but may incinerate sewage sludge generated in surrounding communities which are considered rural.

COMPLIANCE REQUIREMENTS:

For WWTFs which choose to continue operation of their SSI unit(s), Subpart 219-9 will require new reporting, monitoring and recordkeeping requirements to ensure compliance with new emission limitations and other operating requirements. Testing and monitoring requirements will be required for dioxins/furans, particulate matter, opacity, cadmium, lead, mercury, sulfur dioxide, and hydrogen chloride. The new requirements of Subpart 219-9 may also require the installation of additional pollution control equipment and likely result in the need for professional engineering services for the planning, design and construction of the control equipment.

COSTS:

The costs of complying with the requirements or finding acceptable alternative means for disposal of sewage sludge will be highly variable. Implementation of Subpart 219-9 will result in an economic impact for municipalities which choose to continue to incinerate sewage sludge in an affected SSI unit. EPA estimates that the added costs for the WWTFs needing additional monitoring, recordkeeping and reporting requirements will include a total capital investment of $61,250 per SSI unit and an annual cost of $31,000 per SSI unit. Additional capital costs will be incurred for SSI units that require packed bed scrubbers as added air emission controls to comply with new emission limitations for sulfur dioxide (SO2) and/or hydrogen chloride (HCL). EPA estimates these capital costs to range from approximately $375,000 to $4,700,000 per SSI unit (dependant primarily on the SSI unit(s) capacity), and annual costs to range from $89,000 to 1,000,000 per SSI unit. Specific costs for the 12 municipalities with existing SSI units cannot be established until these municipalities complete a detailed evaluation of their WWTFs' SSI unit(s) and perform an individual cost analysis.

MINIMIZING ADVERSE IMPACT:

The anticipated adverse effect of new Subpart 219-9 is the increased cost of compliance, or increased sewage sludge disposal costs. Development of Subpart 219-9 is a direct mandate of the federal Clean Air Act (Act). Compliance costs will accrue irrespective of whether this regulation is promulgated or not, since the Act mandates that EPA impose the requirements on affected SSI units if New York State fails to regulate.

RURAL AREA PARTICIPATION:

At least three of the 12 existing WWTFs are located in rural areas; and the impact from the remaining nine WWTFs may also have a further reaching impact on other surrounding (possibly rural) areas that they serve. Proposed Subpart 219-9 is the result of an EPA directive, which must be adhered-to in framing requirements. This limits the Department's flexibility in terms of emission limits selected and requirements imposed. EPA, in the development of its requirements, held public hearings on a national level. The Department canvassed and provided correspondence to all affected WWTFs regarding EPA's Guidelines and the Department's proposed amendments to Parts 219 and 200. Public hearings will be held to obtain comments on the proposed rulemaking and participation by affected parties will be sought through these hearings.

Job Impact Statement

NATURE OF IMPACT:

The New York State Department of Environmental Conservation (Department) proposes to add a new Subpart 219 9 to Part 219 of Title 6 of the Official Compilation of Codes, Rules and Regulations of the State of New York. Revisions are also being proposed to Part 200, General Provisions, and Subpart 219-1, Incineration - General. Proposed Subpart 219-9 is being added to address recently promulgated federal requirements entitled: Emission Guidelines and Compliance Times for Existing Sewage Sludge Incineration Units (Guidelines) found at 40 CFR Part 60, Subpart MMMM. Revisions are also being made to the reference tables found in Part 200. Specifically, Subpart 200.9 Table 1 and Subpart 200.10 Table 2 are being amended to add and incorporate by reference the Federal requirements of 40 CFR Part 60, Subpart MMMM. Subpart 219-1, which provides definitions and outlines the applicability requirements of the various Part 219 Subparts, is also being amended to include the proposed requirements of Subpart 219-9. The proposed rulemaking revisions will apply statewide. The additions and amendments to the regulations are not expected to negatively impact jobs and employment opportunities in New York State.

New Subpart 219-9 may require New York's 12 existing wastewater treatment facilities (WWTF) that operate sewage sludge incineration units, constructed on or before October 14, 2010, to add various levels of air pollution control equipment, or upgrade existing controls for compliance. This may create short term (1-3 year) employment opportunities in the state.

CATEGORIES AND NUMBERS OF JOBS OR EMPLOYMENT OPPORTUNITIES AFFECTED:

It is expected that there will be a need for professional engineering design services and short term construction jobs. Since only 12 existing WWTFs are directly affected by Subpart 219-9, and not all are expected to need additional controls, a minimal increase in jobs and employment opportunities is expected.

REGIONS OF ADVERSE IMPACT:

Subpart 219-9 is not expected to have any adverse impacts on jobs or employment opportunities. Therefore, there are not any regions of the state where the proposed rule would have a disproportionate adverse impact on jobs or employment opportunities.

MINIMIZING ADVERSE IMPACT:

Subpart 219-9 is not expected to have any adverse impacts on existing jobs.

SELF EMPLOYMENT OPPORTUNITIES:

Subpart 219-9 is not expected to have any measurable impact on opportunities for self-employment.