Florida Department of Environmental Protection Nonattainment Area New Source Review Updates Rule Development Workshop Chapters and October 20, 2010

Introduction and Outline Background and Purpose Preconstruction review Fine particulate matter (PM 2.5 ) Summary of proposed amendments Additional plans (impacts to forms) Rulemaking timeline 2October 20, 2010

Florida Department of Environmental Protection Background and Purpose

"New Source Review" Also know as… Construction permitting Preconstruction permitting Stationary sources—preconstruction review Three types of construction permits… Prevention of Significant Deterioration (PSD) Nonattainment New Source Review (NSR) Minor source permits 4October 20, 2010

PSD vs. Nonattainment NSR Prevention of Significant Deterioration (PSD) Attainment (or unclassifiable) areas 100 or 250 ton per year major source threshold BACT Increments Additional impact analyses Nonattainment Area New Source Review Nonattainment areas, as designated by EPA 100 or lower ton per year major source threshold LAER Statewide compliance Emissions offsets Net air quality improvement 5October 20, 2010

PSD and Nonattainment NSR Both programs… Focus on largest sources of emissions "Grandfather" existing sources Preconstruction review applies individually, by pollutant An area will typically be in nonattainment for only one or two pollutants Nonattainment NSR applies for that "affected pollutant" and its precursors PSD applies for all other "PSD pollutants" 6October 20, 2010

NSR Reform Collective name for changes in federal rules December 31, 2002 Projected actual emissions Plantwide applicability limits Other elements that have since been vacated Changes clarify and add flexibility regarding applicability to existing major sources DEP previously adopted Reform for PSD Now DEP is adding it to Nonattainment NSR 7October 20, 2010

PM 2.5 Federal updates for fine particulate (PM 2.5 ) Rules allowing DEP to postpone regulating PM 2.5 under NSR are soon to expire Will no longer be able to use PM 10 as a surrogate Impacts same sections of the rule, so doing as part of same rulemaking Must begin accounting for condensables DEP is adopting minimum requirements State program must have these EPA-required elements (NSR Reform and PM 2.5 provisions) 8October 20, 2010

Florida Department of Environmental Protection Summary of Proposed Amendments

Condensable Particulate Matter Adding definition of PM 2.5 Significant emissions rate (direct and precursor) Updating definition of PM 10 Requiring inclusion of condensable emissions Gases condensing to form PM 10 or PM 2.5 at ambient temperatures Purposes of PSD and Nonattainment NSR applicability, emissions limits, compliance Not retroactive for previously issued permits Federal requirement 10October 20, 2010

Example: ("PM 10 ") (b) For purposes of Rules and , F.A.C., PM 10 emissions shall include condensable PM 10 (gaseous emissions from a source or activity which condense to form PM 10 at ambient temperatures). Compliance with PM 10 emissions limitations originating in a permit issued pursuant to Rules or , F.A.C., and issued prior to January 1, 2011, shall not be based on condensable particulate matter unless required by the terms and conditions of the permit. 11October 20, 2010

"Affected Pollutant" Using consistent terminology PSD – "PSD pollutant" Nonattainment NSR – "affected pollutant" Clarifying language Preconstruction review applies individually, e.g. Nonattainment for one or more affected pollutants Attainment (or unclassifiable) for several PSD pollutants Listing precursors in definitions VOC and NO X are ozone precursors SO 2 and NO X are PM 2.5 precursors 12October 20, 2010

Example: ("baseline actual") For a PSD pollutant or affected pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions... 13October 20, 2010

Major and Minor Facilities Eliminating this outdated language Previously used to indicate facilities subject to Nonattainment NSR Replacing with NSR Reform concepts Major stationary sources Major modifications Already in place in rules for PSD 14October 20, 2010

Example: (4)(a) (a) LAER Requirement. The owner or operator of the proposed new major stationary source or major modification shall or modified facility may limit the emissions of the affected air pollutant from the new major stationary source or major facility or modification through the application and employment of LAER October 20, 2010

Nonattainment NSR Emission Thresholds Incorporating major stationary sources thresholds for Nonattainment NSR Similar but different from PSD thresholds Nonattainment NSR thresholds can vary by degree Marginal Moderate Serious Severe Extreme Unknown degree of nonattainment, so adopting all 16October 20, 2010

Example: ("major s. source") 3. For purposes of Rule , F.A.C., any stationary source that emits, or has the potential to emit, 100 tons per year or more of an affected pollutant, except that the following emissions thresholds shall apply in [nonattainment areas]: a. 50 tons per year or more of volatile organic compounds in any serious ozone nonattainment area. b. 25 tons per year or more of volatile organic compounds in any severe ozone nonattainment area. c. 10 tons per year or more of volatile organic compounds in any extreme ozone nonattainment area. d. 70 tons per year or more of PM 10 in any serious PM 10 nonattainment area October 20, 2010

Applicability Procedures Incorporating NSR Reform elements Already in state rules for PSD Amendments add these concepts for Nonattainment NSR New versus existing emissions units Projected actual emissions Baseline actual emissions Three-pronged test for applicability New emissions units Existing emissions units Hybrid test for mix of new and existing units 18October 20, 2010

Example: (1)(c) (c)(e) If the Department issues any construction permit that which avoids the requirements of subsections (4) through (12), F.A.C., or subsections (4) through (9), F.A.C., based in whole or in part on projected actual emissions calculations, the permit shall contain the following monitoring, reporting and recordkeeping provisions... 19October 20, 2010

Emissions Offsets Aligning state rules with federal requirements Sufficient offsets Amount that must be secured Ratio of the amount of increase Varies by severity of nonattainment, from 1:1 to 1.5:1 Creditable offsets Must be same affected pollutant (or a PM 2.5 precursor) Geographic location of offset, other procedures Largely unchanged Using construction permits to implement 20October 20, 2010

Example: (5) (5) Emission Offsets. (a) Emission Offsets Required.... (b) Sufficient Emission Offsets.... (c) (b) Creditable Emission Offsets. 1. Emissions of an affected air pollutant shall only be offset by emissions of the same affected air pollutant, except that direct PM 2.5 emissions or emissions of precursors of PM 2.5 may be offset by reductions in direct PM 2.5 emissions or emissions of any PM 2.5 precursor. 21October 20, 2010

Source Obligation Consolidating existing language Clarifying PSD and Nonattainment NSR text Facilities becoming subject to either PSD or Nonattainment NSR through relaxation of federally enforceable limit Limit on capacity, or Limit on emission levels After-the-fact review, as though construction had not yet commenced 22October 20, 2010

Example: (12) (b) At such time that a particular source or modification becomes a major stationary source or major modification (as these terms were defined at the time the source obtained the enforceable limitation) solely by virtue of a relaxation in any enforceable limitation which was established after August 7, 1980, on the amount of emissions or on the capacity of the source or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then the requirements of subsections (4) through (12), F.A.C., shall apply to the source or modification as though construction had not yet commenced on the source or modification. 23October 20, 2010

Plantwide Applicability Limits (PAL) Expanding PAL to Nonattainment NSR Currently in rules for PSD Part of NSR Reform Addition of some necessary cross-references Clarifying the PAL language itself Breaking large subsection into several smaller, topical paragraphs 24October 20, 2010

Example: (2)(b) (b) Any owner or operator of any existing major stationary source seeking to establish or change a plantwide applicability limitation (PAL) for an affected pollutant shall comply with the requirements under Rule , F.A.C. 25October 20, 2010

Miscellaneous Edits and Corrections Definitions, reference to Reliance on incorporated federal regulations Baseline area Baseline concentration Major source baseline date Minor source baseline date Maximum allowable increase (new definition) Nonattainment area Reconstruction, unused definition 26October 20, 2010

Miscellaneous Edits and Corrections Extraneous introductory text Recent federal PM 2.5 requirements Significant monitoring concentrations Significant impact levels PSD increments Simplification and consolidation Nonattainment NSR exemptions Structure is now parallel with PSD program Simpler permitting procedure (construction permits, no operating permits) 27October 20, 2010

Miscellaneous Edits and Corrections Eliminate redundant or outdated language Emission changes Open burning Stack height policy Non-substantive updates Fixing typographical errors Consolidating on PM 10 instead of PM10 or PM-10 28October 20, 2010

Florida Department of Environmental Protection Additional Plans

(AOR Required) Currently, must submit AOR if: Title V or synthetic minor facility Emit 10 tons per year (TPY) VOC or 25 TPY NO X in an ozone nonattainment area Otherwise required by rule or permit Striking the 10 TYP VOC, 25 TPY NO X Clean Air Act emissions statement Creating simplified emissions statement (later) Streamlined alternative to a full AOR 30October 20, 2010

Forms Forms will likely need to be updated Considering consolidation of forms One, modular form Re-design for web/electronic considerations (as opposed to current typewriter-friendly style) 31October 20, 2010

Recent PM 2.5 Rules Soon to be published federal regulations Significant monitoring concentration Significant impact levels PSD increments Department review of final regulations May need to update proposed language Update the placeholders for dates, for example 32October 20, 2010

Florida Department of Environmental Protection Rulemaking Timeline

Next Steps Comments Appreciated throughout process Most helpful if returned by November 10 Unsure of need for additional workshops Drivers in the coming year PM 2.5 surrogate provision expires (May 2011) EPA designation of nonattainment areas in Florida (Ozone in August 2011) (SO 2 in July 2012) 34October 20, 2010

Comments by November 10, 2010 Mail to:Department of Environmental Protection Division of Air Resource Management, MS Blair Stone Rd. Tallahassee, FL Attn: Lynn Scearce, Rules Coordinator Or All comments are public records and will be posted on the department’s website at: To receive updates on this rule development project by , provide name, affiliation, and address to Lynn Scearce at: 35October 20, 2010