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

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EPA is proposing a rule to reduce hazardous air pollutants (HAPs) emissions from existing and new plywood and composite wood products facilities that are major sources. This rule is a National Emission Standards for Hazardous Air Pollutants (NESHAP), and will reduce HAP emissions by requiring affected plywood and composite wood products facilities to meet a level of emissions reductions needed to meet the Maximum Achievable Control Technology (MACT) floor for these 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 volatile organic compounds (VOCs), particulate matter (PM10), carbon monoxide (CO), and emission increases in nitrogen oxides (NOx) due to the application of incineration-based controls.
The proposed rule is expected to reduce HAP emissions by 11,000 tons per year in the third year after its issuance. The rule is also expected to reduce VOC emissions, measured as total hydrocarbon, by 27,000 tons per year; PM10 emissions by 13,000 tons per year; and CO emissions by 11,000 tons per year in the third year. The rule is expected to increase NOx emissions at affected sources by 2,000 tons per year in the third year. The increased electricity required to operate the control systems is also expected to increase NOx and SO2 emissions at electricity generating utilities by 2,000 and 4,000 tons, respectively. The compliance costs, which include the costs of control and monitoring, recordkeeping, and reporting requirements, are estimate at $142 million (1999 dollars).

As shown in this economic impact analysis, the total social costs, which account for the behavioral response of consumers and producers to higher pollution control costs, are estimated at $134.2 million (1999 dollars). The other 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. EPA has certified that there is no significant impact on a substantial number of small entities (SISNOSE) associated with this proposed 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.

Reference #:
A.2002.41 B
EPA Office:
Office of Air and Radiation
Office Suboffice:
Office of Air Quality Planning and Standards
Office Division:
Emission Standards Division
EPA Author:
Document Type:
Economic Impact Assessment
Document Status:
Document file(s):

entire document (PDF, 2144K, About PDF)

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