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45 FR 52676 8-7-80

45 FR 52676 8-7-80

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Thursday
August
7,
1980
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Part
III
Environmental
Protection
Agency
Requirements
for
Preparation, Adoption,
and
Submittal
ofImplementationPlans;
Approval
and
Promulgation ofImplementation
Plans
 
Federal
Register
/
Vol.45,'No.
154
/
Thursday,
August
7, 1980
/
Rules
and
Regulations
E R
N
P C
ENVIRONMENTAL
PROTECTION
AGENCY
40
CFR
Parts
51,
52,
and
124
[FRL
1538-2]
Requirements
for
Preparation,
Adoption,
and
Submittalof
Implementation
Plans;Approval and
Promulgation
of
Implementation
Plans
AGENCY:
EnvironmentalProtection
Agency.
ACTION:
Finalrules.
SUMMARY:
In
response
to
thedecision
of
the
U.S.
Court
of Appeals
for the
D.C.
Circuit in
AlabamaPower
Company
v.
Costle,
EPA
is
today
amending
its
regulationsfor
the
prevention
of
significant
deteriorationof
air
quality,
40CFR
51.24,
52.21.
Today'samendmentsalsoincluderegulatorychanges
affecting
new
source review in
nonattainmentareas,
including
restrictions
on
major
sourcegrowth
(40
CFR
52.24)
and
requirementsunder
EPA's
EmissionOffset
Interpretative
Ruling
(40
CFR
Part
51,
Appendix
S)
and
Sectiori
173
of
the
CleanAirAct
[40
CFR
51.18
0)).
DATES:
The
regulatory amendments
announcedhere
come
into
effect
on
August
7,1980.
State
Implementation
Plan revisions
meeting
today's
regulatorychanges
are
to
be submitted
to
EPA
within
nine months
after
this
publication.
FOR
FURTHER
INFORMATIONCONTACT.
James
B.
Weigold,
Standards
ImplementationBranch
(ID-15), Office
of
Air
QualityPlanning
and
Standards,
ResearchTrianglePark,
N.C.
27711,
919/
541-5292.
SUPPLEMENTARY
INFORMATION:
The
contents oftoday's
preamble
are
listed
inthe
following
outline.
A
section
entitled
Summary
of
PSD
Program
hasbeen
added
to
provide
a
concise
narrative
overviewofthisprogram.
Outline
I.
Summaryof
PSD
Program
A.
PSD
Allows
Industrial
GrowthWithin
Specific
Air
Qualtiy
goals
B.
Whois Subject
to
the
PreventioA
of
Significant
Deterioration
Regulations?
C.
What
Must
a
Sourceor Modification
Do
to
Obtain
a
PSD
Permit?
II.
Background
-
IL
Highlights
IV.
Transition
A.
Part
52
PSD
Regulations
B.
Part
51
PSD
Regulations
C.
Offset
Ruling
D.
Part
51
Nonattainment
Regulations
E.
Construction MoratoriumF.Pending
SIP
Revisions
G.
Effective
Dateof
Nonattainment
Provisions
H.
Miscellaneous
V.Potential
ToEmit
A.
ControlEquipment
B.
ContinuousOperation
C.
Additional
Guidance
VI.
Fifty-Ton Exemption
-VII.
Fugitive Emissions
VIII.
Fugitive
Dust
Exemption.
IX.
Source
A.
Proposed
Definitionsof "Source"
B.
PSD:
Commentson
Proposaland
.
Responses
C.
Nonattainment:
Commentson Proposal
and
Responses
X.Modification
A.
FinalDefinition-of"Major Modification"
B.
No
Net Increase
C.
PollutantApplicability
D.
Nettingof
Actual
Emissions
E.
Contemporaneous
IncreasesandDecreases
F.
Otherwise
Creditable
Increases andDecreases
G.
The
Extent
toWhich
Increases
and
andDecreases are Creditable
H. Accumulation
I.
Restrictions
on Construction
J.
Reconstruction
K.
Exclusions
L.
Example
of
flow
The DefinitionsWork
XI.
DeMinimis
Exemptions
XII.
Geographic
andPollutantApplicability
A.
Background
B.
PSD
Applicability
C.
NonattainmentApplicability
D.
CaseExamples,
E.
Interstate
Pollution
F.
Geographic
Applicabilityfor
VOC
Sources
G.
Responseto Comments
XIII.
Baseline
Concentration,
Baseline
Area,
and
Baseline Date
A.
BaselineConcentration
B.
Baseline
Area
C.
Baseline
Date
D.
Pollutant-SpecificBaselineXIV.
Increment
Consumption
'
A.
Rationale
for
Use
of Actual
Emissions
B.
Exclusions from
Increment
Consumption
C.
IncrementExpansion
due toEmissions
Reductions
D.
Gulf
Coast
Problem
E.
Potential
Increment
Violations
XV.
Best
Available
ControlTechnology
XVI.
Ambient
Monitoring
XVII.
Notification
XVIII.
PSD
SIP
Revisions
A.
Equivalent
State
Programs
B.
BaselineArea
C.
State
MonitoringExemption
XIX.
AdditionalIssues
A.
InnoVative
Control Technology
B.
NIodified
Permits
C.
Nonprofit
Institutions
D.
Portable
Facilities
E.
Secondary
Emissions
F.
Baseline for CalculatingOffsetsunderSection
173(1)(A)
\
G.
Economic
Impact AssessmentH. Consolidated
Permit Regulations
L
Summary
of
PSD
ProgramThepurposeofthissummary
is
to
help thosepeople who are unfamiliar
with
the
PSD
program gain
anunderstanding
ofit.Because this
summary
seeks
to
condense
the
basic
PSD
rules,
it
may
not
preciselyreflect
the amendments announced
inthis
notice.Shouldthere
be
any apparentinconsistencybetweenthe
summaryandthe
remainderof
the
preambleand
the
regulations,
the
remaining
preambleandthe.
egulations
shall
govern.
A.
PSDAllows
Industrial
Growth
WithinSpecific
Air
Quality
Goals
The
basic
goals of
the prevention
of
significant
air
qualitydeterioration
(PSD)
regulationsare
(1)
to
ensure
that
economicgrowth willoccur in harmony
with
the
preservation
of existing
clean
air
resources
to
prevent
the
development
ofany
new
nonattainment
problems;
(2)
to
protect
thepublic
health
and
welfare
from
any
adverse
effect
which
mightoccureven
at
air
pollution
levels
better
than
the
national
ambient
air
quality
standards;
and
(3)
to
preserve,protect, andenhance
the
air
quality
in
areas
of special
natural
recreational,
scenic,or
historic
value,such
as
ifational
parks
and
wilderness
areas.
States
arerequired
to
develop
SIP
revisionsfor
PSD
pursuant
to
regulationspublished
today.
See
40
CFR
51.24,
"Requirementsfor
Preparation,Adoption
and
Submittal
of
ImplementationPlans."
If
EPA
approves
the proposed
PSD
plan, the
state
can
then
implement
its
own program,In
the
absence
of
an
approved
state
PSD
plan,
another
portion of
today's
regulationswillgovern
PSD
review.
See
40
CFR52.21,
"Approval
and
Promulgation
of
ImplementationPlans."
EPA
willimplement this regulationItself
if
the
state
does
not
submit
an
approvable
PSD
program
ofits
own.
States
can
Identifyin
their
SIPs
the
local
land
use
goalsfor
eachclean
areathrough
a system
of
area
classifications.
A
"clean"
area
is one
whose
air
qualityis
better
than
that
required
by
the
National
Ambient
Air
Quality
Standards.
Each classification
differs
in
the
amount
of
growth
it
will
permitbeforesignificant
air
quality
deteriorationwouldbe
deemed
to
occur.Significant
deterioration
Is
said
to
occur
when
the
amount of
new
pollution
wouldexceed
the
applicable
maximum
allowableincrease
("increment"),
the
amount of
which varieswith
the
classification ofthearea.
The
referencepoint
for determining
air
quality
deterioration
in
an
area
is
the
baseline
concentration,
whichis
essentially
the
ambientconcentration
existing
at
thetime of
the
first
PSD
permit
application
submittal
affecting
that
area.
To
date,
only
PSD
increments
forsulfur dioxide
and
particulate
matter
have
been
established.
Increments
or
alternatives
52676
 
Federal
Register
/
Vol.
45,
No.
154
/
Thursday,
August
7,
1980
/
Rules
and
Regulations
to
incrementsare
currently
under
investigationforthe other
criteria
pollutants.
There
arethree typesof
area
classifications.Class
I
areas
have
the
smallestincrements
and
thus allow
only
a
small degree
of
air
qualitydeterioration,while Class
II
areas
canaccommodatenormal
well-managed
industrialgrowth.Class
III
designationshavethelargestincrements
and are
appropriatefor
areas
desiring
a
larger
amountof development.In
no
casewouldtheairquality
of
an
area beallowed
to
deterioratebeyond
the
NationalAmbientAirQualityStandards.Except
for
certainwildernessareas
and national
parks,whicharemandatoryClass
I
areas,all cleanareasof
the
country wereinitiallydesignated
as
Class
II.
Flexibility
existsunder
the
Act
to
adjust
most
of
these designations,except
for
those
mandated
by
Congress.The
principalmechanismwithin
the
SIP
to
implement
the
objectivesof
the
PSD
programis the preconstructionreviewprocess.These provisionsrequire
that new
major
stationary
sourcesandmajormodifications
are
carefullyreviewedprior
to
construction
to
ensure
compliance
with theNationalAmbient AirQuality
Standards,
the
applicable
PSD
air
quality increments,
and
therequirements
to
applythe
best
available
controltechnology
on
the
project'spollutantemissions.
In
addition,proposed
SIP
relaxationswhichwould
limit
furtheruse
of
incrementmust bereviewed
for their
anticipatedimpact
andnot
be
approved
if
the applicableincrementwouldbeviolated.The
SIP
mustalso contain
PSD
provisions
for
periodically
reviewing
allemissionsincreases,
including
thosewhich
occur
outside the
SIP
revision
and
the
new
source
review
(NSR)
process,and
for
restoringclean
air
when
such
increasescause violationsof
the
applicable
PSD
increment.
Thiscorrective
actionmay requireadditionalcontrols
onexisting
emissions
sources
which contributeto
the
problem.
B.
Who
is
Subject
to
thePrevention
of
SignificantDeteriorationRegulations?
The
requirementsof
today's
PSD
regulations apply
to
major
stationary
sources
and
majormodifications
which
meetcertaincriteria
concerningthegeographic
location,typeofpollutants
to
be emitted,
and
timing
of proposedconstruction.
No
source
or
modification
subject
to
today's
rulesmay
be-
constructedwithoutapermit which
statesthat
the
stationary
source
or
modificationwouldmeet
all
applicable
PSD
requirements.Thissectionsummarizes
how
PSD
review
as
modified
in
response
to
AlabamaPower
will
apply.The primarycriterionindetermining
PSD
applicabilityis
whether
the
proposed
project
is
sufficientlylarge
(in
termsof
its
emissions)
to
be
a
major
stationary
source
or
majormodification,
Source
size,for
applicabilitypurposes,
is
definedin terms
of "potential
to
emit."
"Potential to
emit"
means
the
capability
at
maximumdesign
capacity
to
emit
a
pollutant
after
the
applicationof all
required
air
pollution controlequipment
and
after
takinginto accountall federallyenforceablerequirementsrestricting
the
type
or
amount
of
source
operation.
A
"majorstationary
source"
is
anysourcetype
belonging
to
a list
of
28
sourcecategories whichemits
or
hasthe
potential
to
emit
100
tons
peryear
or
moreof
any pollutantsubject
to
regulation
under
the
Act,or
any
othersourcetypewhichemits
or
has
the
potential
to
emitsuch
pollutants
in
amounts
equal
to
or greaterthan
250
tons
per year.
A
stationary
sourcegenerallyincludesall pollutant-emittingactivitieswhichbelong
to
the
same
industrial
grouping,
arelocated
on
contiguous
or
adjacent
properties,andareunder
common
control.Pollutant
activities
whichbelong
to
the same
major
group
as
defined
in
a
standard
industrialclassification
schemedeveloped
by
the
Office
of
Management
and
Budget
are considered
part
of
the
same
industrial
grouping.
[See
SOURCE).
A"majormodification"isgenerally
a
physical
changein
or
a
change
inthe
method
of
operatiod'of
a
major
stationary
sourcewhich
would
result
in
a
significant
net
emissions
increase
in
the emissionsof
any regulatedpollutant.
In
determining
if
aproposedincrease
would
cause
a
significant
net
increase
to
occur,
severaldetailed
calculations
must
beperformed.
First,
the sourceownermustquantify
the
amount
of
the
proposed
emissions
increase.
Thisamountwillgenerally
be
the
potential
to
emitof the
new
or
modifiedunit.Second,the
owner
mustdocumentandquantifyall emissions
increases
and
decreases
that
have
occurred
or
willoccurcontemporaneously(generally
withinthe
past
five
years)
and
have
not
beenevaluatedas
part
of
a
PSD
review.
Thevalue
ofeach
contemporaneous
decrease
and
increase
is
generally
determined
by
subtracting
the old
level
ofactual
emissions
from
the
new
or
revised
one.
Third,theproposedemissionschanges
and
the
unreviewedcontemporaneouschanges
must
then
be
totalled.
Finally,
if
there
Is
a
resultant
net
emissions
increase
that
islarger
than
certain
valuesspecified
in
the
regulations.
the
modification
is
major
and subject
to
PSD
review.Certain
changes
areexempted
from
the
definition
of
major
modification.
These
include:
(1)
routine maintenance,
rEpair,
and
replacement;
(2)
use of
an
alternative
fuel
or
raw
material byrevision of
an
order
under
sections
(2)(a)
and
(b]
of
the
Energy
Supply
and
EnvironmentalCoordinationAct
of
1974
(or
any supersedinglegislation);
(3)
use
of
an alternative
fuel
by
reason of
an
order or
rule
under
section
125
of
theClean Air
Act;
(4)
use
of an
alternative
fuel
at
a
steam
generating
unit
to
the
extent it
is
generated
from
municipalsolid
waste;
(5)
useof
an
alternative
fuel
which the source is
capable
of
accommodating-
and
(6)
an
increase
in
the
hours
of
operation,
or
the
production
rate.
The
last
two
exemptions
can beused
ony
if
the
correspondingchange
is
not prohibited
by
certain
permitconditions
established
afterJanuary
6,
1975.
If
a
source
or
modification
thus
qualifies
as
major, itsprospectivelocation
or existing
location
must
also
qualify
as
a
PSD
area,
in order
for
PSD
review
to
apply.A
PSD
area
is
one
formally
designated
by
the
state
as
"attainment"
or"unclassifiable"for
any
pollutant for which a
national
ambient
air
quality
standard
exists.
Thisgeographic
applicability
test
doesnottake
Into
account
what
new
pollutant
emissions
caused
the
construction
to
be
major.
It
lookssimply
at
whether
thesource
Is
major for any
pollutant
and
will
be
located
in
a
PSD
area.
Once
a
source
applicant
has
determined
that
proposed
constructionfalls
under
PSD
based
on
the
above
size
and
location
tests, it must
then
assess
whether
the
pollutantsthe
project
wouldemit
are or
aresubject
to
PSD.
Ifa newmajor
stationary
source
emits
pollutants
for
which
the
area
it
locates
in is
designatednonattainment
then
the
source
is
exemptfrom
PSD
review
for
those
pollutants.
Thesesources must.however,meet
the applicable
requirements
of
NSR
for
each
nonattainment
pollutant.
Similarly,
if
amajor
modification
to
be
constructed
in
a
PSD
area
involves changes only
for
nonattainmentpollutants
then
the
source
is
not
subject
to
PSD.
Thesemodifications
must meet
the
appropriate
nonattainment
NSR
under the
SIP
for
the
pollutant.
Once
the
questionof
NSR
jurisdiction
is
resolved,
then
the
PSD
reviewapplies
to
all
sigificant
emissions
increasesof regulated
air
pollutants.
Specificnumerical cutoffs
which
define
what
emissions
increases
are
"significant"
have
been
spelled
out
in
the regulations.
These
pollutant-
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