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Regulatory Impact Analysis for the Final Automobile and Light Duty Truck Coating NESHAP, Final Report Draft.

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Pursuant to Section 112 of the Clean Air Act; the U.S. Environmental Protection Agency (EPA) has developed National Emissions Standards for Hazardous Air Pollutants (NESHAP) to control emissions released from the coating of automobiles and light-duty trucks (LDT). The purpose of this rule is to reduce the flow of HAPs from potential emission points within auto and LDT facilities. Eighty percent of the HAPs released are xylene; glycol ethers (EGBE); MIBK; and toluene. The other HAPs include methanol; glycol ethers; MEK; formaldehyde; and ethyl benzene. The facilities in the auto and LDT source category are controlling HAP emissions from their coatings operations; as required; to meet maximum achievable control technology (MACT) standards.
As of 1999; there were 65 auto and LDT assembly facilites owned by 14 companies. The estimated total annual cost for these facilities to comply with the final MACT standard is approximately $154 million. Due to the total annual cost of compliance; an economic impact model estimates that production of autos and LDT declines by 0 to 0.02 percent across various vehicle classes. The estimated price increase due to the regulation is less than 0.01 percent. Pre-tax earnings for the companies owning the facilities in this source category decline by about 1.08 percent according to the economic model developed in the regulatory impact analysis. According to the Small Business Administration size standards; none of these businesses are considered small. Based on the economic impact analysis; impacts of the NESHAP on companies owning auto and LDT assembly facilites are anticipated to be negligible.
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EPA Office:
Office of Air and Radiation
Office Suboffice:
Air Quality Strategies and Standards Division
Office Division:
Office of Air Quality Planning and Standards
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Document Type:
Economic Impact Assessment
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