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Regulatory Impact Analysis Of The Proposed Plywood And Composite Wood Products NESHAP, Final Report.

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EPA is proposing a rule to reduce hazardous air pollutant (HAP) emissions from existing and new plywood and composite wood products facilities that are major sources. The major HAPs whose emissions will be reduced are formaldehyde, acetaldehyde, acrolein, methanol, phenol, and propionaldehyde. The proposed rule will also lead to emission reductions of other pollutants such as VOCs, PM10, CO, and emission increases in NOx and SO2 to the application of incineration-based controls.
Compliance costs, which include the cost of control and monitoring, recordkeeping and reporting requirements are estimated at $142 million (1999 dollars). The total social costs, which account for the behavioral response of consumers and producers to higher pollution control costs, are estimated at $134 million (1999 dollars). Economic impacts associated with these costs include price increases nationally of 0.9 to 2.5 percent for products affected by this rule, and a reduction in output of only 0.1 to 0.7 percent nationally for the affected industries. An analysis of small business impacts shows that there are 17 small firms affected, with 10 of them having annual compliance costs of 1 percent or greater than their sales, and 3 of these having annual compliance costs of 3 percent or greater than their sales. The Agency has certified that there is no significant impact on a substantial number of small entities associated with this rule. Also, an analysis of the energy impacts associated with this proposed rule indicates that there is no significant adverse effect on supply, distribution, or use of energy from implementation of the proposal. NOTE: Only the social cost and energy impact analyses are new since the previous version.
The Agency is unable to monetize the benefits from the HAP, VOC, and CO emission reductions due to lack of credible data for assigning a benefits value to these reductions. NOTE: This is a change from the previous version of this document in which part of the benefits of the proposed rule were monetized.

Reference #:
EPA Office:
Office of Air and Radiation
Office Suboffice:
Office of Air Quality Planning and Standards
Office Division:
Emission Standards Division
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Document Type:
Regulatory Impact Analysis
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entire document (PDF, 3157K, About PDF)

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