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

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)

NSR Program Federal PSD Reform regulations in 40 CFR 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.

PADEP’s Proposed NSR Revisions PADEP’s proposed nonattainment area NSR revisions have been published in the PA Bulletin on April 29, The 60-day public comment period for this proposed rulemaking ends on June 28, 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

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 and adds new Section a which contains 38 definitions.

What are the Proposed NSR Revisions?(Cont.) Section outlines applicability requirements. Section (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.

What are Proposed NSR Revisions? (Cont.) A new section b relating to measurements, abbreviations and acronyms has been added. Section 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.

What Are Proposed NSR Revisions? (Cont.) Applicability Determination A new Section a includes:  Applicability determination procedures previously codified at Section  Provisions to determine net emission increases, baseline actual emissions, and projected actual emissions.

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 EPA’s December 2002 NSR rules, a 10-year look back period is allowed for non-EGUs.

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 EPA’s December 2002 NSR revisions.

What are Proposed NSR Revisions? (Cont.) Special Permit Requirements Section 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.

What are Proposed NSR Revisions? (Cont.) Emission Reduction Credits (ERCs) Sections to 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.

What are Proposed NSR Revisions? (Cont.) A new Section is proposed to allow an owner or operator to use an actual plantwide applicability limit (PAL) for an existing major facility. PADEP’s proposed PAL provisions are consistent with EPA’s 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.

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