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Revised Regulatory Flexibility Analysis for Small Businesses and Local Governments 6 NYCRR Parts 232 and 200

1. Effect of rule:

This proposal applies to any entity that operates, or proposes to operate, approved alternative solvent or perchloroethylene (perc) dry cleaning machines in New York State. Approximately 1,690 dry cleaning facilities will be affected by this rulemaking, many of whom are small businesses: 1,160 of these facilities operate at least one perc dry cleaning machine, whereas 530 of these facilities exclusively operate alternative solvent machines. No state and local governments have been identified as owners or operators of any dry cleaning facilities. This rulemaking is not a local government mandate pursuant to Executive Order 17.

2. Compliance requirements:

This rulemaking has new recordkeeping requirements for owners and operators of alternative solvent dry cleaning machines. Additional reporting and recordkeeping requirements are currently required for owners and operators of perc dry cleaning machines: these requirements were carried over from the existing regulation, 6 NYCRR Part 232 ("Perchloroethylene Dry Cleaning Facilities"). There are no specific requirements in the proposed regulation that apply to local governments. Reporting, record keeping and compliance requirements are effective statewide.

3. Professional services:

Professional services may be needed by dry cleaning businesses that propose to install new dry cleaning equipment for compliance with the permitting requirements of the New York State Department of Environmental Conservation (DEC). These same permitting requirements are contained in the existing DEC regulations. In New York City, a professional architect or engineer is required to prepare plans and obtain permits, for the installation of automatic sprinkler systems and dry cleaning equipment, from the New York City Department of Environmental Protection and the building, electrical, plumbing and fire departments.

4. Compliance costs:

Although not a result of this proposed rulemaking and due to the future federal ban, all 315 co-located residential perc dry cleaners (approx. 315 statewide, 290 of which are in New York City) will be required to purchase and install wet cleaning equipment or alternative solvent dry cleaning equipment, become drop shops or, alternatively, shut down prior to December 21, 2020. To continue operation as a dry cleaner, owners of perc dry cleaning facilities will then have to purchase and install new or "like new" compliant alternative solvent machines or wet cleaning equipment. However, dry cleaning facilities can minimize these compliance costs by selling noncompliant perc machines out of state or properly disposing of them as scrap metal. New compliant alternative solvent dry cleaning machines, without a still, cost between $32,000, for a 25 pound machine, and $100,000, for a 90 pound machine. Stills are recommended by the National Cleaners Association (NCA) for solvent recovery and quality cleaning purposes and range in price from $12,000 to $23,000. Alternative solvent dry cleaners in New York City must currently install an automatic sprinkler system in every facility. The cost of these sprinkler systems range from $1,200 to $1,500 for each sprinkler head, one of which may be required for every 100 square feet of floor space. The installation of a new water line can add another $20,000 to the cost of installation. Costs for an automatic sprinkler system can exceed $100,000 for larger facilities. Outside of New York City, automatic sprinkler systems are not required by the state fire code for facilities that operate alternative solvent machines equipped with integrated fire extinguishing systems and/or safety features that minimize the fire/explosion risk.

The 17 business owners that are still operating the 22 third generation perc dry cleaning machines will have to discontinue operation of these machines prior to December 31, 2021. Those at co-located residential locations will have to discontinue operation by December 21, 2020 due to the existing future federal ban. Phased-out third generation perc dry cleaning machines may be sold out of state or properly disposed of as scrap metal. To continue in business, owners would have to purchase and install new or "like new" compliant alternative solvent machines, new compliant perc dry cleaning machines or wet cleaning equipment.

The ten facility owners still operating alternative solvent transfer equipment must phase-out: all dip tanks, drying cabinets, vented waterproofing operations and uncontrolled dryers by December 31, 2021; solvent recovery dryers that are equipped with a water cooled condenser by December 31, 2026; and all remaining alternative solvent transfer machines by December 31, 2031. Should these facilities wish to continue dry cleaning operations on-site, they must purchase compliant equipment. All phase-out dates are after the "typical" 15 year useful life of the equipment.

Business owners/operators at the 1,007 non-major, co-located perc dry cleaning facilities, throughout New York State, will be required to test their fourth generation perc dry cleaning machines, once each month, for perc drum concentrations at the end of the dry cleaning cycle. Owners will have to purchase a $400 air sampling pump and single use colorimetric sampling tubes, costing about $7 apiece, in order to conduct the required testing. If a measured end of cycle perc drum concentration exceeds the allowable limit, the regulation requires the source owner to have the machine repaired and brought into compliance.

5. Economic and technological feasibility:

Due to the future federal ban on co-located residential perc dry cleaning facilities, we believe that a number of dry cleaning facilities will either shut-down or become drop shops, which collect articles to be sent out for dry cleaning at a larger shop in New Jersey, where corresponding regulations are less stringent. Much of the economic hardship that may be imposed upon New York City dry cleaners by the proposed regulation could be mitigated by changes to the New York City fire code. Outside New York City, compliance with the rulemaking is economically feasible.

Everything proposed in the rulemaking is technologically feasible.

6. Minimizing adverse impact:

The existing federal ban on the future operation of perc dry cleaning machines at co-located residential locations will have a significant impact on both the dry cleaning industry and public health. To help off-set the adverse economic impact on dry cleaners, the Department proposes to grant variances to allow the relocation of used compliant fourth generation perc dry cleaning machines, less than 10 years old, to any stand-alone location under the same ownership.

7. Small business and local government participation:

The Department plans on holding public hearings at various locations throughout New York State after the amendments are proposed. Small businesses and local governments will have the opportunity to attend these public hearings. Additionally, there will be a public comment period in which interested parties can submit written comments.

8. Cure Period.

No cure period is contained in the rulemaking as all new compliance dates occur after the proposed regulation is adopted.

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    Part 232
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    Albany, NY 12233-3254
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