## GUIDELINES

TO: New Source Review Section

FROM: Regg Olsen, Permitting Branch Manager

DATE: January 16, 2013 March 11, 2013 (revised)

SUBJECT: Uintah Basin Permitting Guidance

Utah’s general permitting rule, R307-401, establishes permitting requirements for new and modified, major and minor sources. As authorized by the rule, the director will issue an approval order for new or modified sources only if the requirements in R307-401-8 have been met, including the National Primary and Secondary Ambient Air Quality Standards (NAAQS, R307- 401-8(1)(b)(vii).

During the winter of 2009-10 unexpect edly high ozone values were recorded at survey monitors in the Uintah Basin. Ozone is typically a summ ertime pollutant, but the uni que conditions in this area lead to the formation of ozone during inversi ons when there is signif icant snow cover on the ground. High values were recorded again during th e winter of 2010-11 indicat ing that there is an on-going problem in the area. The State of Utah is currently collecting data in the area to determine whether or not the area is meeting the NAAQS for ozone.

Effective February 1, 2013, the Division Director will not issue an approval order (AO) under R307-401 for a new or modified st ationary source of VOC emissi ons in Duchesne or Uintah County unless the owner or opera tor has provided a satisfactory demonstration that the source will not contribute to a potentia l violation of the ozone NAAQS. This will fulfill the requirement of R307-401-8(1)(b)(vii). A source with an ITA in public comment prior to this date will be allowed to move forward for AO approval provid ed no substantive adverse public comments are received.

Options for the demonstration to be submitted as part of the NOI include:

Option A – Photochemical ozone modeling us ing a model and protocol pre-approved by UDAQ, Option B – VOC Emissions Offsetting – This opti on is expected to be the primary means for

150 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820 Telephone (801) 536-4000 • Fax (801) 536-4099 • T.D.D. (801) 536-4414 www.deq.utah.gov Printed on 100% recycled paper 

### State of Utah

GARY R. HERBERT Governor

GREG BELL Lieutenant Governor 

### Department of Environmental Quality

Amanda Smith Executive Director

DIVISION OF AIR QUALITY Bryce C. Bird

Directormaking a demonstration that a source does not cause or contribute to a violation of the ozone NAAQS. Any emissions increase of VOC from new or existing sources requiring an AO can make a demonstration by offsetti ng the proposed increase in emissions. The offset ratio will be 1:1, rounded up to the nearest tenth TPY. Option C – An alternate demonstration may also be proposed by the applicant. This demonstration must be defensible and mu st meet the requirements of R307-401-8. Alternative demonstrations will be evaluated by the Director on a case-by-case basis.

The following Emission Reduction Credits (ERC) criter ia are applicable if a source chooses the offsetting option above:

 The process for establishing ERCs will follo w the long-standing process that has been used for both attainment and nonattai nment areas under Utah’s rules.

 To be registered for offsetting, ERCs are requi red to be surplus, permanent, quantifiable and enforceable.

 ERC’s generated in Duchesne or Uintah Counties can be used in either County.

 ERCs generated in the basin by the permitting actions of another regulatory agency will be accepted provided the reductions are enforceable and meet the other criteria identified herein.

 If the source is proposing to rely on an alternate enforcement mechanism to generate and/or make an ERC enforceable, advise them this will likely result in a delayed issuance of their AO as a legal review will be requi red to determine whether the enforcement mechanism is adequate to meet the requirements of R307-401-8.

 Sources will be allowed to look back to January 1, 2011 to calculate ERC’s for the registry. A source’s baseline emissions will be determined when the source applies to register the ERC’s. The data for calculat ing eligible ERC’s shall be provided by the

source.

 An existing source that was in operation in 2011 and subsequently obtains an Approval Order is not required to make a retroactiv e demonstration that it did not cause or contribute to a violation of the ozone NAAQS, but any new m odification at the source is subject to this policy.

 Existing registered ERCs for Duchene and Uintah Counties can be used for offsetting in either county. However, these credits could be subject to future stat e or federal actions.

 Expected sources of ERCs include (t hough there may be others as well):

o Voluntary acceptance of LAER level contro ls or other emissions limitations lower than BACT

o Emission reductions not requi red by federal standards

o Emission reductions below app licable federal standards

o Emission reductions not required by State rules

o Replacement of grandfathered sources

 The DAQ ERC registry has been modified to accommodate the registering of ERC’s obtained through both State and Federal pe rmitting actions. Camron Harry will be the gatekeeper for the registry. Please involve Camron in all actions requiring the creation and utilization of ERC’s. Inter-pollutant trading will not be allowed. The trading ratio will be 1:1, rounded to the nearest tenth. The use of inter-pollutant trading will be reevaluated when more information is available regarding the rela tive importance of ozone precursors during wintertime inversion conditions.

If the source pursues Option A or C to make th eir demonstration, advise them this will likely result in a delayed issuance of their AO as a mo re thorough review will be required as we look at their submittal.

NO x will continue to be evaluated as well, to determine compliance with the 1-hour NO 2 NAAQS in accordance with para graph IV.3 of the EIA SOP.

Small Sources under R307-401-9 are exempt from th is policy. If an existing source desires to implement controls to render its emissions de -minimus and the source desires to generate emission credits, an AO must be issued to make the reductions permanent and enforceable. Likewise, an existing exempt small source can obtain emission credits for additional reductions below 5 TPY, but an AO will be required to make the ERCs enforceable.

This Guideline shall be audited at least every two years by the Minor S ource Section Manager to determine the current status and relevance of the information.