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# OAR Box 1802 Prepped by Charmelle Mathews



### Document

Number: 

# 71 ) IV-E-6 5 Docket Number: 

# A-90-3 7

Printed 11/4/200811:58:00 AM

Sheet 71 of 117P. 2



### Jul y 31,200 0

SUBJECT : Ma

y 20,199 9 Meeting wit

h NED A CAR

P FROM : Denni s Crumple r Integrate d Implementatio n Group , ITPID , MD-1 2 TO : Air

an d Radiatio n Docket

#A-90-3 7
O n Ma y 20,199 9 EP

A me t wit h representative s ofth e Nationa l Environmenta

l Developmen

t Associatio n Clea

n Ai r Regulator y Projec t (NEDA CARP ) in Durham , Nort h Carolina
. A

n attende e lis t

i s attached
. Th e purpos e ofth e meetin g wa s to provid e NEDA CAR P a n opportunit

y to elaborat

e o n aMemorandu

mtha t agrou p o f complex manufacturin g companie s ha

d drafted fo

r revisin g NS R an

d ostensibly incorporatin g through th e NS R Refor m rulemaking
. A copy i s attached
. Thi s memorandu mha d bee n distribute d to th e Stat e an d Territoria l Air Pollutio n Progra

mAdministrator s (STAPPA) an d th e Associatio n o f

Loca l Ai r Pollutio n Contro l Official s (ALAPCO)
. EP A indicate d i t

woul d loo k fo r arespons e b y STAPP

A an d ALAPCO , an

d environmenta

l group s an

d then determine i f

furthe r dialogu e wa s necessar

y to mov e forwar

d wit h th e rulemaking
. The NED A CAR P member s asked EP

A to keep th e dialogu e ope n an d identif y area s tha

t i t feel s canno t

b e incorporate d i n th e NS R Refor mRulemaking
. The y asked tha

t EP A no t terminat e discussion s prematurely
. Attachment s
cc : Pa mSmit h (MD-12 ) Jo n Devine , OG

C


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### o*-n 12:29p a Fro_- H ft H 13E-40 0 T-92 9 P.06/1 1 F-93 1

Ma y 11,199 9
By Federal

Express Joh n Paul , Directo r Dayto n RAPCA 45 1 Wes t3rd Stree t Dayton , O

H 4540 2 Willia m O'Sullivan , Administrato r Ai r Divisio n Ne w Jerse y Dept . o f

Environmenta l Protectio n 40 1 Eas tStree t Trenton . N J 0862 5 Re : Alternativ e NS RApproac h fo r Comple x Manufacturin g Dea r Messrs . Pau l an d O'Sullivan :

Th e attache d memorandu m outlinin g a n alternativ e ne w sourc e revie w approac h fo r comple x manufacturin g i s submitte d b y th e undersigne d an d th e representative s o f th e utilit y industr y £O

T revie w b y STAPPA/ALAPC O official s a tit s semi-annua l meeting . I n a Februar y 17 , 199 9 lette r t o EP

A Assistan tAdministrato r Pereiasep e thes e sector s committe d t o a dialogu e wit h othe r stakeholder s regardin g a n alternativ e NS Rapproach . W e loo k forwar d t o you r comment s o n th e element s o

f thi s approach , an d w e ar e prepare d the n t o see k endorsemen to f ou r membe r companie s fo r i tbased o n STAPPA/ALAPC O feedback . Industr y representative s ar e availabl e t o discus s th e proposa l b y conferenc e cal l wit h STAPPA/ALAPCO' s Permi tCommitte e o n Ma y 20 , 1999 .

W e ver y muc h appreciat e STAPPA/ALAPCO' s commitment , an d tha to f othe r stakeholders , t o explorin g alternativ e NS Rreform approaches . W e loo k forwar d t o bein g abl e t o wor k wit h yo u furthe r towar d thi s goal . Tl f yo u hav e questions , pleas e fee l free t o contac tan y o f th e signatorie s ofth e group s liste d below . Sincerely .

Charles H. Knauss AirPermitting Forum (202) 424-7644 American Forest & PaperAssociation 

# r> 

# L \ Association of

International Automotive Manufacturers Amy Lilly American Forest & PaperAssociati Robert C. Kaufmann (202) 463-258*
California Council

forEnvironmental and Economic Balance Vic Weisser, President (contact - Michael

R. Barr (415) 983-1151)

\y\DC • &W22/

1 • OtTitSS.0 1P. 5

05-2-9 9 12:30p s Fros- H ft H 13E-40 0 T-92 9 P.07/1 1 F-93 1

Joh n Paul , Directo r Willia m O'Sullivan . Administrato r Ma y 11.199 9 Pag e 2

Chemical Manufacturers Association Rasma Zvaners (703) 741-5249 

# {i}lLSy*-%kUU**

of Industrial

BoilerOwners ' National Council Industrial Robert D. Bessette Clean .AirImplementation .Project William B. Lewie (102)461-1145

Association of

Manufacturers \ Ernest Rosenberg (202) 857-8051 National ^n^irtfnJnepial

Development Association's Clean AirRegulatory Project William T. Burkhart Leslie Sue Ritts (202) 637-6573

cc : Williffii Becker/David Wallenber g To m Curra n Lydi a Wegma n Kare n Blanchar

d David Hawkin s Christine Shave r

VWD C - 04C3I>) • M71MS.0 1P. 6

05-72-9 9 12:30P « Frot- H ft H 13E-40 0 T-82 9 P.08/1 1 F-93 1



### MEMORANDU

M SIMPLIFYIN G TE E "NE W SOURC E REVIEW " SYSTE M FO RCOMPLE X

MANUFACTURIN G SOURCE S There i s widesprea d agreemen ttha tth e complexitie s o f

the curren

t"ne w sourc e review " syste m impos e unnecessar y burden s o n States , whic h mus tdevot e scarc e resource s t o evaluatin g th e complianc e o f

projects wit

h aa incredibl y intricat

e zegulatoi y system , an

d o n industry , whic h i s ofte n deterred from worthwhil e ne w projects fay fear o f NS Rdela y an

d uncertainty . Propose d NS Rreform s wil l make bo m thes e problem s worse . Ye ta tth e sam e tim e regulator s and environmental group s hav e expresse d conce m aboutexistin g source s nettin g ou to f control s o n significan tne w unit s unde r th e curren

tsystem . Thi s proposal set s ou

tchange s to th e existin g NS Rsyste m tha tcoul d significantl y correc t each o f thes e defects . I

ti s designe d t o b e consisten twith , an d complementar

y to , th e approache s pu tforwar d b y th e Plantwid e Applicabilit y Limi t("PAL" ) workin g group an d th e Utilit y Ai r Regulatory^Sroup ("UARG") . I . N O NETTIN G OU T O F CONTRO L TECHNOLOG Y FO RNE W UNIT S A . Federa l NS RControl s Woul d b e Require d fo r Al l 10 0 To n Ne w Unit s 1 . Eac

h ne w uni twith "potentia l t o emit* * ("PTE" ) tha

texceede d 10 0 ton s pe r year (measured afte

r accountin g fo r enforceabl e controls ) an d locate d ata n existin g "majo

r source " woul d b e automaticall y required t o instal l Federa l NS Rcontrol technology . 2 . Unit s woul d no tb e "aggregated " togethe r t o determin e applicability . Technolog y requirement s woul d appl y uni tb y uni tt o ne w unit s tha t exceede d th e threshold . 3 . EPA' s "BACT/LAE RClearinghouse " woul d b e adequatel y funde d and managed . B . Stat e Ne w Sourc e Revie w Control s Woul d b e Require d fo r A U "Significant " Ne w Unit s 1 . Each ne w unita

ta majo r sourc e wid i PT E tha

texceede d th e curren

tNS R "significance " level s an

d fel l belo w th e 100-to n leve l woul d b e require d t o instal l Stat

e ne w source revie w controls . Individua l Stat e contro l decision s woul d no tb e subjec

tt o EPA objection . 2 . Th e applicabilit

y role s foi- individual units woul d b e th e sam e c s i n paragrap h A .

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### C . State s Woul d Have Discretio n to Require Control s on Smalle r Unit s Ne w unit s wit h PT E below th

e NS R"significance " leve b would b e require d t o instal

l contro l technolog

y a tth e electio n o f

tiie State . D . NE W ACCOUNTIN G RULE S FO RCHANGE S T O EXISTIN G UNIT S A . Federa

l NS RControl s Woul d b e Required fo r Al l Modification s t o Existin g Unit

s thatIncrease d th e Unit' s PT E b y More tha n th e NS R "Significance* * Level s 1 . Change s t o a n existing uni

ta ta "majo

r source " tha

t increase d th e unit' s PT

E b y mor e ma n th e NS R"significance " level s would hav

e t o instal l Federa l NS Rcontro

l technology . The definitio n o f "physica l chang e o r chang e i n th e metho d o f operation " woul d no

tb e altered. 2 . I n assessing emissions increase s a ta unit , A e increas e i n th

e unit' s achievabl e hourl y emissions rat

e (afte r accountin

g fo r controls ) woul d b e compare d t o th e contemporaneou

s pas tachievable level , an

d woul d be "annualized " using allowable hour s o f operatio n t o determin

e applicabilit

y thresholds . Th

e rule s woul d b e applie d s o a s no tt o overstat e emission s increase s a tbatc h processor

s o r flexible manufacturin

g operations . 3 . Emission

s change s a tindividua

l unit s woul d no tb e adde d together t

o determin e applicability . 4 . Existing Federa

l la w require s th e permittin

g agenc y t o conside r retrofi

t cost s an d feasibilit y i n deciding th

e exac tcontro l level t o b e required/Thi s common-sens

e rul e woul d continue . B . "Reconstruction* * a s a "Backstop* * fo r Stat

e Control s W e ax e als o considerin

g a "backstop " to th

e othe r element s o f thi s Memorandu

m unde r whic h reconstructio

n o f existing majo

r unit s woul d trigge r a requiremen

tfo r Stat e ne w sourc

e review controls . Section VI I below discusses som

e ofth e issues thi s raises . C . m 

### State s Woul d Hav e Discretio n t o Requir e Control s o n Smalle r Modification s Modifie d unit s wit h PT E increase

s belo w th

e NS R"significance " level s woul d b e require d t o instal l technolog

y a tth e electio n ofth e State .

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HI . AI RQUALIT Y ANALYSI S REQUIREMENT S Ai r qualit

y analysi s woul d b e required fo r change s tha tincrease d facilit y emission s b y more tha n th e "significance " levels , an d woul d no tb e required fo r change s that-increase d facilit y emission s b y les s tha

n th e "significance " levels . I n other words , owner s «vould b e allowe d t o "net out " o f ai r qualit

y revie w for a ne w o r modifie d umt-byexoissioii-reduetion s elsewher e i n th e facility . A s describe d earlier , owner s woul d no tb e allowe d to "ne tout " o f th e requiremen tt o instal l goo d control s o n ne w o r modifie d units . I n vie w ofth e simplificatio n ofth e applicabilit y rule s outline d i n Section s I an d TJ , w e ar e intereste d i n explorin g a furthe r streamlinin g o f

air qualit y analysi s requirements . IV . TITL E V IMPLICATION S NS Rdecision s woul d no tb e re-examine d b y EP A i n the Titl e V proces s and woul d b e automaticall y incorporated i n th e Titl e V permita s de minimis amendments . V . FORMALIZ E GUIDANC E ISSUANC E PROCEDURE S Guidance canno tclarif

y ambiguou s o r debatabl e legal requirement s unti l th e agenc y ha s authoritativel y issue d i tan d th e publi c ha s bee n informe d o f it s contents . Conflictin g and unpublicize d guidanc e from differentsource s ba s increase d uncertaint y regardin g th e applicabilit

y o f NS Ri n fixe pas tT o correc tthes e defects , EPA shoul d assur e that : A . NS Rguidanc e wil l b e reviewe d an d approved b y a singl e designate d EPA offic e an d m poste d a

ta singl e designate d addres s o n EPA' s We b site ; B . N o such guidance wil l tak e effec tuntil 3 0 day s afte r Web sit e postin g o r b e applie d a s a "loo k back " t o action s before tha teffectiv e date ; and C . Publi c commentwil l b e allowe d o n th e more significan tguidanc e items , includin g

change s i n prio r guidance .

VI . INCORPORAT E A PA L OPTIO N Facilitie s o r portion s o f

facilitie s woul d continu e t o b e allowe d t o negotiat e "Plantwid e Applicability Limits " ("PALs") . VII . CONSIDE R"BACKSTOP " MEASURE S T O ASSUR E GOO D CONTRO L PERFORMANC E A T EXISTIN G UNIT S Tti e measure s outline d abov e wil l impiov e th e leve l o f control a texistin g unit s ove r tim e (i f other programs such a s MACT , th e NO x SI P call , o r futur e ozon e o r PM

2, 5 SI P call s d o no t improv e i tfirst) b y assurin g th e installatio n o f control s o n ne w units a s capital stoc k turns ove r an d o n significantl y change d existin g units . W e ar e explorin g alternativ e proposal s fo r a

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"backstop " t o provid e -«MiifaM i assuranc

e diatexistin g unit s wil l mee thig h level s o f environmental performance i n th e future . We ar e als o reviewin g th e likel y impac to f al l th e ne w ai r pollutio n contro l program s tha twil l tak e effec ti n th e nex tte n year s t o determin e th e extento f th e nee d fo r an y "backstop " requirement.

Thes e approache s ar

e modele d on : A . A n approac

h base d o n CAA ' 111(d) , whic h woul d authoriz e EP A t o require State s t o develo p contro l plan s for emission s o f criteri a pollutants from existin g source s tha tha d no tbee n throug

h any othe r for

m o f Clea n Ai r Ac ttechnolog y a s • MAC T o rNSPS ; B . Th e UAR G proposal , designe d t o bring selecte d industria l sector s t o ne w sourc e contro l leve b starting i n 2010 ; o r C . Incorporatio n o f

a "reconstruction " tes ti n th e NS Rapplicabilit y calculu s fo r majo r units , s o tha

tprojects tha

texceede d a certain percentag e o f replacemen tcos t woul d trigge r technolog y requirements . Designin g a workabl e "reconstruction " tes traise s a numbe r o f issues , mos tnotably :

• Establishin g di e percentag e o f replacementcos ttha

twoul d trigge r th e test ;

• Establishin g th e perio d ove r whic h cost s woul d b e accumulate d t o determin e triggering ; and

• Detenninin g th e boundaries ofth e proces s o rproductio n uni tacros s whic h cost s woul d b e accumulated . W e sugges tth e followin g regulator y languag e a s a basi s fo r discussion : "Reconstruc

ta majo r source " mean s th e replacement , ata n existin g majo r source , o f components ove r month s at a n existin g proces s o r productio n uni ttha ti n and o f

itsel f emit s o r ha s tha

tpotentia l t o emi t10 0 ton s pe r yea r o f PSD/NSR-regulate d pollutantwheneve r di e fixed capita l cos to f th e ne w component

s exceed s percen to f th e fixed capita

l cos ttha

twoul d b e required t o construc ta comparabl e proces s o r productio n uni tI tdoe s no tinclud e th e like-kin d replacemento f units mad e inoperabl e b y event s suc h a s floods, lightning , tornadoes , o r explosions. " A s with th e UAR G proposal , w e envisio n any "backstop* * requirement s a s startin g i n 201 0 after th e existin g generatio n o f control requirement

s ha s bee n implemented . 

# 9 Ma y 10.199 9 tttDC-frMU/

l .017)3110 1