Synthetic Organic
Chemical Industry Rule

In December 2000, the U.S. Environmental Protection Agency (EPA) promulgated a consolidated air rule relating to the synthetic organic chemical manufacturing industry (SOCMI). The new rule is designed to improve understandability, reduce burden, clarify requirements, and improve implementation and compliance.


BACKGROUND
As a result of the promulgation of the Consolidated Federal Air Rule (CAR) on December 14, 2000, the synthetic organic chemical manufacturing industry (SOCMI) can comply with just one consolidated federal rule as an alternative to several new source performance standards (NSPS) and national emission standards for hazardous air pollutants (NESHAP). The CAR comes as a result of a federal iniative to “reinvent” environmental regulation.

Up until this time, members of SOCMI have had to comply with NSPS and NESHAP standards applicable to storage vessels, process vents, transfer operations, and equipment leaks. The new consolidated rule provides an optional compliance alternative for SOCMI sources by combining major portions of 16 of these standards into one rule. In addition, some petroleum refineries that have volatile organic compound and benzene storage vessels are eligible to comply with the new rule.

The rule purposes to provide an “optional alternative compliance mechanism.” Regulated entities may choose to continue to comply with the existing rules or opt to comply with the consolidated rule.

The provisions of the CAR generally do not include any new control requirements. The provisions primarily consist of design, operation, work practice, and maintenance requirements for storage vessels, process vents, and transfer operations; inspection and repair requirements for equipment leaks; and performance requirements for closed vent systems and control devices. According to the EPA, the regulation “is expected to significantly reduce the monitoring, record keeping, and reporting burden associated with compliance.” As such, no net costs are expected with use of the CAR; instead, savings are expected by the EPA. However, comments from the regulated community and EPA about the rule indicate that the value in using CAR varies from facility to facility based on the specific requirements that presently apply to that facility.

The consolidated rule is the first of its kind, and the EPA plans to use this rulemaking “as a model for consolidating other Federal air regulations in the future.” During the proposal period, critics of the rule argued that additional regulations were needed due to the remaining issue of overlapping requirements, which would prevent the consolidated rule from achieving its goals. The EPA, however, argued that the consolidated air rule was designed as a pilot project to study the feasibility and practical implications of consolidating and streamlining rules. The preamble to the final rule stated that because the rule is a pilot program for the SOCM industry, the EPA limited the scope of the rules included. EPA concluded that to include additional rules in the consolidation effort would "require substantial time, resources, and a supplemental proposal. We consider our efforts better spent finalizing this rule."


SUMMARY
A new consolidated air rule has been promulgated which pertains to the synthetic organic chemical industry. The rule could significantly reduce the monitoring, record keeping, and reporting burden associated with compliance. More information about the rule is available at the EPA’s web site. If you would like assistance in determining how the new consolidated rule could be applied at your facility, please contact Emily Rynders or Tony Domanico at (513) 489-2255 or at eac@paynefirm.com or aid@paynefirm.com.