PROPOSED ACTION ON REGULATIONS

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MARYLAND REGISTER, VOLUME 38, ISSUE 2, FRIDAY, JANUARY 14, 2011 

# Subtitle 11 AIR QUALITY

Notice of Proposed Action

[11-030-P] The Secretary of the Envir onment proposes to amend: (1) Regulation .01 under COMAR 26.11.01 General

Administrative Provisions ; (2) Regulations .01 and .12 under COMAR 26.11.02 Permits, Approvals, and Registration ; and (3) Regulation .14 under COMAR 26.11.06 General Emission Standards, Prohibitions, and Restrictions

. Statement of Purpose The purpose of this action is to implement the requirements of the U.S. Environmental Protection Agen cy’s (EPA) final Prevention of Significant Deterioration and Titl e V Greenhouse Gas Tailoring Rule (Tailoring Rule), which was publis hed in the Federal Register on June 3, 2010 (75 FR 31514). The Tailoring Rule limits the applicability of the existing Prevention of Significant Deterior ation (PSD) and Title V operating permit requirements of the federa l Clean Air Act (CAA) as of January 2, 2011, so that it does not a pply to all stationa ry sources that emit or have the potential to emit greenhouse gases (GHGs) at the 100 or 250 tons per year (tpy) levels provided under the CAA. (January 2, 2011, is the date when EPA’s recently promulgated Light-Duty Vehicle Rule takes eff ect, imposing contro l requirements for the first time on GHGs.) Excluding applicability of the PSD and Title V operating permit requirements to the 100 and 250 tpy thresholds will exclude very small sources, such as apartment buildings, office buildings, and restaurants. The Tailoring Rule phas es in the applicability thresholds for both the PSD and Title V opera ting permit programs for sources of GHG emissions, by establishing the first two steps of the phase-in for the largest emitters of GHGs. This is the first phase of regulating greenhouse gas emissions and supports Maryland law requiring a reduction in greenhouse gas emissions.

Submission to EPA for Approval The appropriate parts of this action will be submitted to EPA for approval as part of Maryland’s Stat e Implementation Plan and Title V Program. The Department will request approval of the regulations in their entirety.

Requirements of EPA’s Tailoring Rule EPA will phase in the CAA permitting requirements for GHGs in two initial steps. Step 1. January 2, 2011 — J une 30, 2011 (first 6 months) • Only those sources currently subject to the PSD permitting program anyway, due to their emissions of non-GHG pollutants (i.e., those that are newly constructe d or modified in a way that significantly increases emissions of a pollutant other than GHGs), would be subject to permitting re quirements for their GHG emissions

under PSD. • For these projects, only GHG increas es of 75,000 tpy or more of total GHG, on a CO 2 e basis, would need to determine the Best Available Control Technology (BACT) for their GHG emissions. • Similarly for the Title V opera ting permit program, only those sources currently subject to the program anyway, due to their emissions of non-GHG pollutants (i.e ., newly constructed or existing major sources for a pollutant other than GHGs), would be subject to Title V operatin g permit requirements for GHG. • During Step 1, no sources woul d be subject to Clean Air Act permitting requirements due solely to GHG emissions. Step 2 July 1, 2011 — June 30, 2013 ( 2-year period) • For the first time, PSD permitting requirements will cover new construction projects that emit GHG emissions of at least 100,000 tpy even if they do not exceed the permitting thresholds for any other pollutant. Modifications at existing facilities that increase GHG emissions by at least 75,000 tpy will be subject to permitting requirements, even if they do not significantly increase emissions of any other pollutant. • For the first time, Title V ope rating permit requi rements will apply to sources based on their GHG emissions even if they would not apply based on emissions of any other pollutant. Facilities that emit at least 100,000 tpy CO 2 e will be subject to Title V permitting requirements.

EPA estimates that about 550 s ources nationwide will need to obtain Title V permits for the firs t time due to their GHG emissions. The majority of these newly permitted sources will likely be solid

waste landfills and industrial manuf acturers. It is expected that nationally there will be approximately 900 additional PSD permitting actions each year triggered by increases in GHG emissions from new

and modified emission sources.

Future Steps The Tailoring Rule also commits EPA to certain follow-up actions regarding future steps to address smaller sources: • In 2011, EPA will propose or so licit comment on a Supplemental Notice of Proposed Rulemaking (SNPR) in which EPA will propose a third step for phasing in GHG permitting for more sources, beginning by July 1, 2013, and may propose or solicit comment on

whether certain smaller sources should be permanently excluded from permitting. • EPA also will explore viable streamlining options for future GHG permitting to significantly reduce permitting burdens. • By April 30, 2015, EPA will comp lete a study to evaluate the status of PSD and Title V pe rmitting for GHG sources, including progress in developing streamlini ng techniques. EPA may decide that: (1) successful streamlining will allow EPA to phase in more sources, or (2) certain smaller sources need to be permanently excluded from permitting. EPA will complete further rulemaking based on that study by April 30, 2016, to address the permitting of

smaller sources. • No sources with greenhouse gas emissions below 50,000 tpy,

and no modification of a source re sulting in net GHG increases of less than 50,000 tpy will be subject to PSD or Title V permitting before at least April 30, 2016.

Regulated Pollutants EPA’s Tailoring Rule addresses the emissions of a group of six

GHGs: 1. Carbon dioxide (CO 2 ) 2. Methane (CH 4 ) 3. Nitrous oxide (N 2 O) 4. Hydrofluorocarbons (HFCs) 5. Perfluorocarbons (PFCs) 6. Sulfur hexafluoride (SF 6 ) Some of these GHGs have a high er global warming potential than others. To address these differences, the international standard practice is to express GHGs in carbon dioxide equivalents (CO 2 e).

CO 2 e is calculated by multiplying the mass emissions for each of the

six GHGs that a source emits by that GHG’s global warming potential (published in Table A-1 to Subpart A of 40 CFR Part 98, “Global Warming Potentials,” 74 FR 56395), and then summing the

results of those calculations. Under the Tailoring Rule, EPA is using

CO 2 e as the metric for determining whether a source triggers PSD and Title V permitting a pplicability for GHGs.PROPOSED ACTION ON REGULATIONS

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MARYLAND REGISTER, VOLUME 38, ISSUE 2, FRIDAY, JANUARY 14, 2011 Explanation of Specific Amendments The following regulations under COMAR 26.11 have been amended to implement the Ta iloring Rule requirements:

1. COMAR 26.11.01.01B — definitions were added for:

• CO 2 equivalent emissions (CO 2 e), which includes the calculation procedure. • Greenhouse gases (GHG), meaning the aggregate group of six greenhouse gases. 2. COMAR 26.11.01.01B (37) a nd COMAR 26.11.06.14 — The PSD program requirements have been updated to include EPA’s Tailoring Rule requirements. 3. COMAR 26.11.02.01B(44) — expanded the definition of “regulated air pollutant” by adding greenhouse gas as defined under COMAR 26.11.01.01B(18-1) and subject to regulation under EPA’s final PSD and Title V Tailoring Rule. 4. COMAR 26.11.02.01C(1) — the de finition of “major source”

has been amended to include sour ces of GHG subject to regulation under 40 CFR 70.2, as amended by the Tailoring Rule. 5. COMAR 26.11.02.12 — provide s that the procedures for obtaining a permit to construct a pply to GHG sources to which 40 CFR 52.21(b)(49(iv) or (v) apply.

Background On April 2, 2007, the Supreme Court found that GHGs, including carbon dioxide, are air pollutants covered by the CAA. Massachusetts v. EPA, 549 U.S. 497 (2007). The Supreme Court found that EPA was required to determine

whether or not emissions of GHGs from new motor vehicles cause or contribute to air pollution which ma y reasonably be anticipated to endanger public health or welfare, or whether the science was too

uncertain to make a reasoned deci sion. In April 2009, EPA responded to the Court with a finding that greenhouse gases contribute to air pollution that may endanger public health or welfare. On December 15, 2009, EPA published findings under Section 202(a) of the Clean Air Act that were a prerequisite to finalizing the GHG standards for light-duty vehicles. On April 1, 2010, EPA finalized the light duty vehicle rule controlling GHG emissions. This ru le confirmed that January 2, 2011, is the earliest date that a 2012 model year vehicle meeting these rule requirements may be sold in the U.S. This action triggered Clean Air Act permitting requirements under the PSD and Title V programs for GHG emissions. The Tailo ring Rule represents the first time GHGs will be subject to either of these Clean Air Act permitting

programs.

Sources Affected Facilities responsible for nearly 70 percent of the national GHG emissions from stationary sources will be subject to permitting requirements under the Tailoring Ru le. This includes the nation’s largest GHG emitters — power pl ants, refineries, and cement production facilities. The sources that are not covered by this rule at this time include small farms, restaurants, and all but the very largest commercial

facilities.

Emissions Reductions Expe cted from This Action The purpose of this action is to implement the requirements of EPA’s final PSD and Title V Tailoring Rule, which establish a phased-in approach to reducin g GHG emissions. Greenhouse gas emissions will be reduced through implementation of the PSD program and through other State and federal regulatory actions.

Comparison to Federal Standards There is a corresponding federal standard to this proposed action, but the proposed action is not mo re restrictive or stringent. Estimate of Economic Impact I. Summary of Economic Impact. Step 1 of the Tailoring Rule will have a limited economic impact on affected sources. If an existing source is currently addressing another pollutant for PSD or in a Title V permit, th en GHG requirements w ill also apply. Step 2 of the Tailoring Rule, which begins on July 1, 2011, imposes Title V and PSD permitting requirements on larger sources of GHG emissions even if they w ould not apply based on emissions of any other pollutants. The Department will handle Step 1 of the rule with existing staff. Staff requirements will be reevaluate d for Step 2 and future steps as they are finalized by EPA.

Revenue (R+/R-)

II. Types of Economic Impact. Expenditure (E+/E-) Magnitude

A. On issuing agency:

(1) Step 1 (1/2/2011 — 6/30/11) NONE

(2) Step 2 (7/1/11 — 6/30/2013) (E+) Unable to

Estimate

B. On other State agencies: NONE

C. On local governments: (E+) Unable to

Estimate

Benefit (+) Cost (-) Magnitude

D. On regulated industries or trade groups:

(1) Step 1 (1/2/2011 — 6/30/11) (-) Minimal

(2) Step 2 (7/1/11 — 6/30/2013) (-) Unable to

Estimate

E. On other industries or trade groups: NONE

F. Direct and indirect effects on public: (+) Unable to

Estimate

III. Assumptions. (Identified by Impact Letter and Number from Section II.)

A(1). The Department will handle St ep 1 of the rule with existing

staff.

A(2). Staff requirements will be reevaluated for Step 2 and future steps as they are finalized by EPA.

C. Local governments may be imp acted if they have facilities (e.g., landfills) that would be newly subject to permitting requirements due to GHG emissions . Many local governments are already subject to permitting requirements as a result of non-GHG

emissions.

D(1). Step 1 of the Tailoring Rule will have a limited economic impact on affected sources. If a source is currently addressing another pollutant for PSD or in a Title V permit, then GHG requirements will also apply.

D(2). Step 2 of the Tailoring Rule, which begins on July 1, 2011, imposes Title V and PSD permitting requirements on larger sources of GHG emissions even if they w ould not apply based on emissionsPROPOSED ACTION ON REGULATIONS

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MARYLAND REGISTER, VOLUME 38, ISSUE 2, FRIDAY, JANUARY 14, 2011 of any other pollutants.

F. The purpose of this action is to implement the requirements of EPA’s final PSD and Title V Tailoring Rule, which establish a phased-in approach to reducin g GHG emissions. Greenhouse gas emissions will be reduced through implementation of the PSD program and through other State and federal regulatory actions.

Economic Impact on Small Businesses The proposed action has minimal or no economic impact on small

businesses.

Impact on Individuals with Disabilities The proposed action has an impact on individuals with disabilities

as follows: The purpose of this action is to implement the requirements of EPA’s final PSD and Title V Tailoring Rule, which establish a phased-in approach to reducin g GHG emissions. Greenhouse gas emissions will be reduced through implementation of the PSD program and through other State and federal regulatory actions.

Opportunity for Public Comment The Department of the Environmen t will hold a public hearing on the proposed action on February 15, 2011, at 10 a.m. at the Department of the Environment, 1800 Washington Boulevard, 1st Floor Conference Rooms, Baltimore, Maryland 21230-1720. Interested persons are invited to attend and express their views. Comments may be sent to Deborah Rabin, Regulations Coordinator, Air and Radiation Management Administration, Department of the Environment, 1800 Washington B oulevard, Suite 730, Baltimore, Maryland 21230-1720, or emailed to drabin@mde.state.md.us.

Comments must be received not late r than February 16, 2011, or be submitted at the hearing. For more information, call Deborah Rabin at (410) 537-3240. Copies of the proposed action and supporting documents are available for review at the following locations: The Air and Radiation Management Administrati on; regional offices of the Department in Cumberland and Salisbury; all local air quality control offices; and local health departments in thos e counties not having separate air quality control offices. Anyone needing special accomm odations at the public hearing should contact the Department’s Fa ir Practices Office at (410) 537- 3964. TTY users may contact the Department through the Maryland Relay Service at 1-800-735-2258.



## 26.11.01 General Administrative Provisions

Authority: Environment Article, §§1-101, 1-404, 2-101—2-103, 2-301—2- 303, 10-102, and 10-103, Annotated Code of Maryland

.01 Definitions. A. (text unchanged)

B. Terms Defined. (1) — (6) (text unchanged) (6-1) CO 2 Equivalent Emissions (CO 2 e). (a) “CO 2 equivalent emissions (CO 2 e)” means the amount of GHGs emitted. (b) “CO 2 equivalent emissions (CO 2 e)”shall be computed as follows: (i) Multiply the mass amount of emissions (tpy), for each of the six greenhouse gases in th e pollutant GHGs, by the gas’s associated global warming potential published at Table A–1 to Subpart A of 40 CFR Part 98 —Global Warming Potentials (74 FR 56395); and (ii) Sum the resultant values from §B(6-1)(b)(i) of this regulation for each gas to compute a tpy CO 2 e. [ (6-1) ] (6-2) (text unchanged) (7) — (18) (text unchanged) (18-1) “Greenhouse gases (GHGs)”means the aggregate group of six greenhouse gases: (a) carbon dioxide (CO 2 ); (b) methane (CH 4 ); (c) nitrous oxide (N 2 O); (d) sulfur hexafluoride (SF 6 ); (e) hydrofluorocarbons (HFCs); and (f) perfluorocarbons (PFCs). (19) — (36) (text unchanged) (37) “Prevention of Significan t Deterioration (PSD) source” means any new or modified source subject to the provisions of 40 CFR §52.21, as published in the [ 2008 ] 2009 edition, as amended by the “Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule” (75 FR 31514) , including: (a) Any of the following sources which emit, or have the potential to emit, 100 tons per year of any air pollutant, except for greenhouse gases, regulated under the federal Clean Air Act Amendments of 1977 (42 U.S.C. §7401 et seq.): (i) —(xxv) (text unchanged) (xxvi) Charcoal production plants; [ and ] (b) Any other source which emits or has the potential to emit 250 tons per year or more of any air pollutant, except for greenhouse

gases 

### , regulated under the Federal Clean Air Act (42 U.S.C. §7401 et seq.) [

. ] ; (c) Beginning January 2, 2011, sources of GHGs to which 40 CFR 52.21(b)(49)(iv) applies; and (d) Beginning July 1, 2011, sources of GHGs to which 40 CFR 52.21(b)(49)(v) applies. (38) — (53) (text unchanged) C. — D. (text unchanged)



## 26.11.02 Permits, Approvals, and Registration

Authority: Environment Article, §§1-101, 1-404, 2-101—2-103, 2-301—2- 303, 2-401, 2-403, and 2-404, Annotated Code of Maryland

.01 Definitions. A. (text unchanged)

B. Terms Defined. (1) — (43) (text unchanged) (44) “Regulated air pollutant” means the following: (a) — (c) (text unchanged) (d) A Class I or II substance subject to a standard concerning stratospheric ozone protection promulgated under or established by Title VI of the Clean Air Act; [ or ] (e) A hazardous air pollutant subject to a standard promulgated under §112 or other requirements established under §112 of the Clean Air Act, including provisions for modifications under §112(g), provisions for equiva lent emissions limitations by permit under §112(j), and provisions for prevention of accidental releases under §112(r) of the Clean Ai r Act, including the following: (i) (text unchanged) (ii) A pollutant for which the requirements of §112(g)(2)

of the Clean Air Act have been me t, but only with respect to the individual source subject to the §112(g)(2) requirement [

. ] ; or (f) A greenhouse gas (GHG) as defined in COMAR 26.11.01.01B(18-1) and subject to regulation under the “Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule” (75 FR 31514). (45) — (55) (text unchanged) C. Major Source. (1) “Major source” means a stationary source or group of stationary sources that are locat ed on one or more contiguous or adjacent properties, and are unde r common control of the samePROPOSED ACTION ON REGULATIONS

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MARYLAND REGISTER, VOLUME 38, ISSUE 2, FRIDAY, JANUARY 14, 2011 person, or persons under common control, belonging to a single major industrial grouping and that is described as follows: (a) (text unchanged) (b) [ A ] Except as provided in §C(1)(d) of this regulation, a major stationary source of air pollutants, as defined in §302 of the Clean Air Act, that directly emits, or has the potential to emit, 100 tons per year or more of any air pollutant including a major source of fugitive emissions of the pollutant, as determined by rule by the EPA;

or (c) A major stationary source as defined in Part D of Title I of the Clean Air Act, concerning nonattainment areas, including any stationary source which emits or has the potential to emit: (i) — (iii) (text unchanged) (iv) 100 tons per year or more of carbon monoxide for

sources located in the areas de signated as nonatt ainment for carbon monoxide in 40 CFR §81.321 (1992 edition). [

. ] ; (d) A GHG source shall not be considered a major stationary source of any GHG under §C(1)(b) of this regulation unless it is subject to regulation under paragraphs (1) and (2) of the definition of “Subject to regulati on” in 40 CFR 70.2, as amended by “Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule” (75 FR 31514). (2) — (3) (text unchanged)

.12 Procedures for Obtaining Approvals of PSD Sources and NSR Sources, Permits to Construct, Permit to Construct MACT Determinations On a Case-by-Case Basis in Accordance with 40 CFR Part 63, Subpart B, and Certain

100-Ton Sources. A. Applicability. Except as provided in §B of this regulation, the owner or operator of a source shall comply with the procedures in this regulation when applying for the following: (1) (text unchanged) (2) Except as required in Re gulation .11 of this chapter [

, ] (a) [ a ] A permit to construct a source that, after the source is in compliance with all other applicable requirements of the State air pollution control law, has the potentia l to discharge to the atmosphere 100 tons per year (91,000 kilograms) or more of [ a ] any pollutant except for greenhouse gases ; (b) A permit to construct a source that, after the source is in compliance with all other applicable requirements of the State air pollution control law, is a GHG source to which 

### 40 CFR 52.21(b)(49)(iv) or (v) applies ; (3) — (4) (text unchanged ) B. — L. (text unchanged)



## 26.11.06 General Emission Standards,

Prohibitions, and Restrictions

Authority: Environment Article, §§1-101, 1-404, 2-101—2-103, 2-301—2- 303, 10-102, and 10-103, Annotated Code of Maryland

.14 Control of PSD Sources. A. (text unchanged) B. General Requirements. (1) A person may not construct, modify, or operate, or cause to be constructed, modified, or op erated, a Prevention of Significant Deterioration (PSD) source, as defined in COMAR 26.11.01.01B(37), which will result in violation of any provision of 40 CFR §52.21, as published in the [ 2008 ] 2009 edition , as amended by the “Prevention of Signifi cant Deteriora tion and Title V Greenhouse Gas Tailoring Rule” (75 FR 31514)

. (2) (text unchanged)

ROBERT M. SUMMERS, Ph.D. Acting Secretary of the Environment 

# Subtitle 11 AIR QUALITY

Notice of Proposed Action

[11-025-P] The Secretary of the Envir onment proposes to amend: (1) Regulations .10 and .11 under COMAR 26.11.01 General

Administrative Provisions ; and (2) Regulations .01 and .05 under COMAR 26.11.09 Control of Fuel-Burning Equipment, Stationary Internal Combustion Engines, and Certain Fuel-Burning Installations

. Statement of Purpose The purpose of this action is to make minor administrative corrections to the Department’s opacity regulations that became effective May 17, 2010.

This action will be submitted to the U.S. Environmental Protection Agency (EPA) for approval as part of Maryland’s State Implementation Plan.

Background The Department’s opacity regulations include the general Continuous Opacity Monitor (COM) and Continuous Emission Monitor (CEM) requirements in COMAR 26.11.01.10 and .11, definitions in COMAR 26.11.09, a nd the requirements in COMAR 26.11.09.05 that provide the procedures for demonstrating compliance with visible emissions requirements using COM data. Although the opacity regulations became effective on May 17, 2010, they must be administratively correct before they are submitted to EPA to be included in the approved SIP and federally enforceable. The opacity regulations are a first effort in removing the applicability of the Department ’s TM 90-01 that contain the procedures for demonstrating co mpliance with visible emissions requirements using COM data. COMAR 26.11.09.05 was expanded to include those procedures as they apply to fuel-burning equipment. There are two other source categories for which opacity procedures must be established before removing the applicability of TM 90-01 for COMs. The two categories are municipal waste combustors and Portland cement manufacturing plants.

Sources Affected and Location These amendments affect only owners of large fuel-burning equipment required to in stall and operate COMs.

Requirements

These amendments are minor administrative corrections that are necessary before submitting the regulations to EPA. These

amendments include: 1. In COMAR 26.11.01.10A(1)(e) a nd .11A(1)(b), correct the size of a MWC required to in stall continuous monitors; 2. In COMAR 26.11.01.10C(5), clarify that the QA/QC for COMs is now located in new COMAR 26.11.31; 3. In COMAR 26.11.01.11B(3), clarify the pollutants to be continuously measured for MWCs, Kraft pulp mills, and fluidized bed combustors; 4. In COMAR 26.11.09.05A(4)(d), correct the size of the low capacity factor units; 5. In COMAR 26.11.09.05A(5) and (6), reinstate the paragraphs that were inadvertently omitted relating to the use of Method 9 observations and the impact of exce ss emissions on ambient air; and 6. In COMAR 26.11.09E, correct the references to reflect the

relocation of this section.