Proposed Rulemaking

1
Proposed Rulemaking 25 Pa. Code Chapter 121.
General Provisions Chapter 127 Subchapter E. New
Source Review John Slade, Chief Division of
Permits Bureau of Air Quality Department of
Environmental Protection
2

• What is New Source Review (NSR)?

• NSR is a preconstruction permitting program
  applicable to major new or modified major
  stationary facilities.
• NSR permitting has two different components which
  address increased emissions of criteria
  pollutants depending on the attainment
  designation of the area in which the facility is
  located.
• Prevention of Significant Deterioration (PSD)
• Nonattainment New Source Review (NSR)

3
NSR Program

• Federal PSD Reform regulations in 40 CFR 52.21
  are adopted and incorporated by reference in
  their entirety in the Pennsylvania Code.
• Title 25, Chapter 127, Subchapter D
• Effective in Pennsylvania as of March 3, 2003
• The Department has proposed to revise
  nonattainment NSR regulations.

4
PADEPs Proposed NSR Revisions

• PADEPs proposed nonattainment area NSR revisions
  have been published in the PA Bulletin on April
  29, 2006.
• The 60-day public comment period for this
  proposed rulemaking ends on June 28, 2006.
• The Department will hold three (3) public
  hearings for accepting comments on this proposed
  rulemaking.
• The hearings will be held as follows
• June 6, 2006, 7 p.m., Rachel Carson State Office
  Building, Harrisburg
• June 13, 2006, 1 p.m., Southwest Regional Office,
  Pittsburgh
• June 19, 2006, 1 p.m., Southeast Regional Office,
  Norristown

5

• What are the Proposed NSR Revisions?

• The Department has proposed to revise the
  existing NSR requirements in Title 25, Chapters
  121 and 127, Subchapter E of the Pennsylvania
  Code.
• Proposed amendments delete certain terms and
  definitions from Chapter 121, Section 121.1 and
  adds new Section 127.201a which contains 38
  definitions.

6
What are the Proposed NSR Revisions?(Cont.)

• Section 127.201 outlines applicability
  requirements.
• Section 127.201(f) of the rule provides that
  facilities located in Bucks, Chester, Delaware,
  Montgomery or Philadelphia counties that emit or
  have the potential to emit 25 tons per year or
  more of volatile organic compounds or nitrogen
  oxides will continue to be considered major
  facilities.

7
What are Proposed NSR Revisions? (Cont.)

• A new section 127.201b relating to
  measurements, abbreviations and acronyms has been
  added.
• Section 127.203 includes special permitting
  requirements that
• Revise provisions that specify when NSR is
  triggered for new or modified major sources.
• Clarify when the special permitting requirements
  are applicable.

8
What Are Proposed NSR Revisions? (Cont.)

• Applicability Determination
• A new Section 127.203a includes
• Applicability determination procedures previously
  codified at Section 127.211.
• Provisions to determine net emission increases,
  baseline actual emissions, and projected actual
  emissions.

9
What are Proposed NSR Revisions? (Cont.)

• Look-back Period
• The Department proposed to retain the five-year
  look-back period for both electric generating
  units (EGUs) and non-EGUs.
• Under EPAs December 2002 NSR rules, a 10-year
  look back period is allowed for non-EGUs.

10
What are Proposed NSR Revisions? (Cont.)

• Applicability Determinations
• The Department has proposed to
• Delete the potential-to-potential test allowed
  under the existing PA nonattainment NSR rule.
  EPA has indicated that the potential-to-potential
  test would not qualify for NSR equivalency
  demonstration.
• Add a provision for actual-to-projected actual
  applicability determinations which conforms to
  the EPAs December 2002 NSR revisions.

11
What are Proposed NSR Revisions? (Cont.)

• Special Permit Requirements
• Section 127.205 is being amended to
• Clarify the applicability of the Lowest
  Achievable Emission Rate (LAER).
• Clarify that emission offsets will be required
  for the entire net emissions.

12
What are Proposed NSR Revisions? (Cont.)

• Emission Reduction Credits (ERCs)
• Sections 127.206 to 127.209 contain proposed
  amendments to
• Provide additional flexibility for the generation
  and transfer of ERCs.
• Allow third party ERC transactions with the
  approval of the Department.
• Delete the 2 days transport upwind or within 200
  kilometers provisions.

13
What are Proposed NSR Revisions? (Cont.)

• A new Section 127.218 is proposed to allow an
  owner or operator to use an actual plantwide
  applicability limit (PAL) for an existing major
  facility.
• PADEPs proposed PAL provisions are consistent
  with EPAs December 2002 NSR provisions except
  look-back period and requirement of a Best
  Available Technology determination for a
  construction or an installation of a new source.
• A PAL is a voluntary pollutant-specific, annual,
  facility-wide emission limit, which authorizes
  physical or operational changes without
  triggering NSR.

14
Next Steps

• Summarize public comments/develop final form
  regulations.
• EQB considers final-form NSR regulation
• Regulatory Review ACT Procedure
• Publish final NSR rulemaking
• Submit State Plan to EPA Region III