EPA Tightening Rules for Foundries

Scrap consuming foundries will see higher costs to operate.

The Federal Environmental Protection Agency recently posted its Maximum Achievable Control Technology standards for iron and steel foundries. The goal of the MACT standards is to reduce the toxic air emissions, and will likely affect around 100 foundries throughout the country. The final rule, signed late last month, is expected to be published in the Federal Register by the end of this month.

According to the EPA, most of the foundries are operated by manufacturers of automobiles and large industry equipment and by their suppliers.

The rule includes emission limits for manufacturing processes and pollution prevention-based requirements to reduce air toxics from furnace charge materials and coating/binder formulations. The final rule is expected to reduce air toxics from the foundries by around 820 tons per year. The rule also will reduce air emissions of other pollutants by around 2,550 tons per year.

Foundries will have three years to comply with the regulations. The EPA estimates the rule will cost foundries about $21 million each year to add and upgrade emissions controls, and to monitor, record and report the results.

That, in turn, is expected to hike domestic steel and iron prices for consumers by about $13.2 million, according to a copy of the rule.

Domestic producers will likely see a $9 million drop in profits, while foreign producers "may experience profit gains of $1 million associated with the higher prices," according to the rule.