Speaking of Precision Blog

Speaking of Precision

Speaking of Precision is a knowledge preservation and thought leadership blog covering the precision machining industry, its materials and services. With over 36 years of hands on experience in steelmaking, manufacturing, quality, and management, Miles Free (Milo) Director of Industry Research and Technology at PMPA helps answer "How?" "With what?" and occasionally "Really?"

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Unknown Controls To Protect You- EPA and Ozone Overreach

Posted March 27, 2015 11:15 AM by Milo

"PMPA urges EPA to maintain the current 75ppb standards for ozone. Allowing for the full and continued implementation of the current law will continue to drive significant reduction in ozone emissions. The proposed rule fails to demonstrate benefits, relies on "unknown controls," and fails to consider natural influences in ozone levels and attainment. "

The Precision Machined Products Association (PMPA) today filed official comments opposing the U.S. Environmental Protection Agency's proposal to lower the National Ambient Air Quality Standards (NAAQs) for Ozone to as little as 65ppb. This reduced standard would place virtually the entire U.S. in nonattainment status, ignoring natural influences, restricting economic activity and manufacturing production.

A recent study showed the EPA's latest proposal would lower U.S. GDP by $140 billion annually. At a 65ppb level, the entire state of Ohio falls into nonattainment status.

"The EPA needs to give the current standards a chance to work," said Miles Free, co-Interim Executive Director of PMPA. "The White House delayed the rules twice for other considerations, I think they should consider the impact on manufacturing and stay with the current levels. Current rules have resulted in an 18% drop in ozone emissions between 2000 and 2013, with an additional 36 percent reduction on deck."

Furthermore, over 60 percent of the controls and technologies needed to meet the rule's requirements are "unknown controls," according to EPA terminology. How are "unknown controls" a key step in attainment. How do "unknown controls" have credibility in Science based policy?

"Unknown controls" in science are like "Then a miracle happens' in Theology.

Due to the "unknown control"status, the new regulation will likely result in the closure of plants and the early retirement of equipment used for manufacturing, construction and agriculture. In the precision machining industry, well-maintained equipment can last decades and small businesses like our members can ill afford to invest millions of dollars in new machines because of an EPA regulation.

It is not clear how EPA plans on curtailing manufacturing during bouts of seasonal nonattainment, regardless of whether the basis is natural or manmade causes.

However, should the EPA's 65ppb standard take effect, virtually all PMPA members will find themselves in a nonattainment zone restricting their manufacturing activity.

Our shops can expect

  • Face EPA ordered restrictions on their production due to this rule
  • An EPA estimated 6-12% electricity price increase resulting from the existing power plant emissions regulation on their own operations;
  • 20% or more increase in cost of raw materials used in our shops that are produced by electrically intensive means such as electric arc furnaces (which are actually recycling steel scrap into new useful material)
  • Reduced hiring
  • Reduced creation of new plants
  • Reduced production and sales
  • Reduced U.S. GDP

EPA Ordered Restrictions?

"They could also mean reducing energy-intensive economic activity, which could have substantial impacts on regional and state economies. States or AQMDs that are unable to comply with the new standards on time would also face harsh economic sanctions, too. No new industrial activity could open in that state or AQMD unless the state or AQMD was first able to obtain even greater emission reductions elsewhere."- source Pillsbury Law Blog

The EPA estimates of cost impacts are also low, as our suppliers are energy intensive and we will also face much higher raw material prices making us non-competitive globally.

Our members support sound environmental policies based on proven science and health benefits balanced with realistic economic expectations.

  • We do not believe that "unknown controls" rise to the level of mature thought let alone science basis.
  • We do not believe that EPA has shown that this proposal will have significant public health benefits over the current standards.
  • We do believe, that lowering the levels to 70ppb or 65ppb would have a significant negative economic impact on the entire country, especially small and medium sized manufacturers.

For these reasons, PMPA urges EPA to maintain the current 75ppb standards for ozone. Allowing for the full and continued implementation of the current law will continue to drive significant reduction in ozone emissions. The proposed rule fails to demonstrate benefits, relies on "unknown controls," and fails to consider natural influences in ozone levels and attainment. As businessmen, we do not base our plans on "unknown controls." We cannot see how smart policy can put the manufacturing sector and the overall economy at risk, by relying on unknown and unproven controls either.

Then a miracle happens cartoon by Sidney Harris via TrulyFallacious


Editor's Note: CR4 would like to thank Milo for sharing this blog entry, which you can also read here.

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#1

Re: Unknown Controls To Protect You- EPA and Ozone Overreach

03/31/2015 2:40 AM

I am not a fan of the ever expanding collection of bureaucratic 'solutions'. The reality of unintended consequences seem downright unthinkable to those deciding.

Try to keep in mind I'm not actually your opponent as you review the following criticism of the argument you made. Your argument needs to be much stronger to have a chance of influencing the policy.

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First, for a subject like this, references are obligatory. At a minimum, links to the study you referenced concerning GDP effect and to the EPA proposal....especially the part about unknown controls...should be provided. This is a complex and diverse discussion. Many readers will likely adopt your analysis...but you should go out of your way to make sure they have the opportunity to make up their own minds.

.

So here is one EPA link on this subject that provides information on many of the points you emphasize.

http://yosemite.epa.gov/sab/sabproduct.nsf/264cb1227d55e02c85257402007446a4/5EFA320CCAD326E885257D030071531C/$File/EPA-CASAC-14-004+unsigned.pdf

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In that link an estimate is made that 3 dollars in health care costs will be saved for every dollar spent on implementation. Asthma in children and adults as well as respiratory illness and cardiovascular disease are expected to see large reductions according to numerous academic papers and studies. Research is also referenced indicating an increase in crop yields and ever timber. Perhaps the recent study you reference concerning costs could provide a decent rebuttal to their projections.

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Speaking of projections: some insight into the projections you provided as 'Our Shops Can Expect' could be very helpful.

For example, if 75% of the cost of a raw material comes from the electricity used to produce it and electricity costs increase by 16%, then the increase in cost of the material related to the electricity cost increase should be 12%, where is the other portion (8+% in this example....but even more if electricity if not that big of a component) coming in? If production is tanking, shouldn't raw materials finding cheaper equalibrium on the supply demand curve?

If industry is right and the EPA estimates for implementation are an order of magnitude low, isn't it probable that machine shops will see addition orders to manufacture some portion of the unknown controls?

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By the way, lots of big projects are planned relying on yet to be invented tech. We built the atom bomb and put a man on the moon using plans that initially relied on solutions not yet invented.

.

One more thing that deserves clarification: early on you suggest that machine shops might be force to purchase new equipment. What equipment do precision machine shops typically use that leads to ozone? The EPA isn't focused on actual ozone emissions, but rather the emissions of VOCs and oxides of nitrogen. I suspect laser and plasma cutting produce some oxides of nitrogen, though I'm not sure how much. Do machine shops really release that much in volition organic compounds to the environment to be a concern?

.

I hope this critique is taken in the way it is intended.

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#2
In reply to #1

Re: Unknown Controls To Protect You- EPA and Ozone Overreach

03/31/2015 8:52 AM

Thanks for the thoughtful reply.I will jump right to your last question, as debating the minutiae of whether EPA estimates, sources and links are authoritative or not is probably not worth either of our time.

"One more thing that deserves clarification: early on you suggest that machine shops might be force to purchase new equipment. What equipment do precision machine shops typically use that leads to ozone? The EPA isn't focused on actual ozone emissions, but rather the emissions of VOCs and oxides of nitrogen. I suspect laser and plasma cutting produce some oxides of nitrogen, though I'm not sure how much. Do machine shops really release that much in volition organic compounds to the environment to be a concern?"

I spent a couple of days on Capitol hill last week: The EPA can set the limit, the states have to create compliance plans that the EPA approves. Our shops do not emit ozone, nor are we emitters of Nitrous oxides. VOC's, A small amount. Our consumption of electricity is really the only "control" we can envision. so the idea of new equipment is based on an assumption that we will not be permitted to expand our shops or add equipment if we are in an non attainment area, even though the non attainment is not of our making. So in order to grow, we might be forced to "trade" newer more efficient equipment for our existing equipment, rather than add capacity and keep running all of our productive equipment. We are not capital rich businesses, but our equipment is capital intensive.

My point is that due to geography geology, and prevailing winds, much of OHIO, Michigan, Illinois etc are Naturally noncompliant. Forcing businesses to do weird strange and unusual in an attempt to reach a non attainable goal is economic folly,. and we will pay the price, as will the people unable to find work.

Will they close Cuyahoga national Park and Yosemite on High Ozone days?

I remember when there used to be a concept called zero.

Now that we are able to count molecules, that has become a quaint anachronism, and the fools in rulemaking add yet another decimal point to requirements on industry regardless of natural occurrence of what it is that they are trying to regulate. Thanks for the thoughtful comments.

Miles

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#3
In reply to #2

Re: Unknown Controls To Protect You- EPA and Ozone Overreach

03/31/2015 10:38 AM

Unfortunately it is not the "fools in rulemaking" that is the issue. The current EPA works in the following manner.

Step 1 Interested Party files suit against the EPA.

Step 2 Interested Party attorneys and EPA attorneys sit down and write a "settlement"

Step 3 EPA and Interested Party go to court and state "we have come to terms, and no further court action is required."

Step 4 Attorneys and Judges go home and celebrate.

Step 5 EPA enters said agreement into the CFR (Code of Federal Regulations)

Step 6 The business(es) shut(s) down.

This is how we got the CO2 regs and they shut down the last lead mine in the US using this tactic. Hopefully you post follow up progress reports as you go through the process.

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#4
In reply to #2

Re: Unknown Controls To Protect You- EPA and Ozone Overreach

04/01/2015 1:50 AM

A spot of good news in all this: SCOTUS is hearing arguments from Industry, States and the EPA and there seems to be a reasonable chance they might rule the EPA should consider cost of compliance early on.

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