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# OAR Box 1796 Prepped byKeeiaRichards



## Document

Number: 

# 35 ) IV-H-61 Docket Number: 

# A-90-3 7

Printed 10/31/20084:20:3 7

PM Sheet 35of 1071/22/0 2FRI16:1 8 FA X91 9 54 1 550 9 13:4 5 919484012 2 ,\\.•22/02 FR

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# 4J^% Unite dState s Departmen to f Energ y Offic eo f

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Facsimil efrom : Davi dRHil l

Deput yGenera lCounse l fo rEnerg yPolic y Forresla lBuilding , Roo m6D-03 3 100 0Independenc eAvenue , S W Washington , D C 2058 5 Phonr : 202-586-341 0 Facsimile : 202-586-747 9 @02 1 PAG E 07/1.- : 

# PrV>'30 V

To : Bil lWehru m Lyn nHutchinso n Jane t(contractor ) Facsimil enumber(s) : 202-501-039 4 919-541-550 9 919-484-012 2 Dat eNov . 21,200 2 Pages : ^ (includin gcove rpage ) Message : Pleas eneeth eattache dpropose dedit s o nth efina lrul e(165 ) preamble ; thes e ar eou ronl yedit s o npage s 13 0o rs ounti lth eend . Th echang eo npag e32 7iparticularl y important . W ewil lsen dt oyo ui nafewhour s an ychange s w ehav eo nth et is t13 0page s of th epreamble . Thanks .

Thi s facsimil ei s intende donj yfo rth eus eof th erecipient(s ) t owho mi ti s addresse diri dmaycontai n informatio ntha ti s privilege dan dconfidential . I f yo uar eno tth eintende drecipien t(o raperso n responsibl efo rdeliverin gthi s t oth eintende drecipient) , yo uarehereb ynotifie dtha tan ydisclosure , distributio no rcopyin go f thi s informatio ni s strictl yprohibited . I f yo uhav ereceive dthi s facsimil e» n error , pleas enotif

yDarlen eDowio gimmediatel yat202-586-291 8 an dretur nth efa cimil etohe ra t th eaddres s show nabov evi ath eUnite dState s Posta lService . Than kyou .P. 3 OP GII GEP A 02 2 00 2

Interna l an d Deliberativ e Draft

- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 technolog yrequirement s wer e comparabl e t o BAC T or. LAER . A s par t o f this^s:e:EQ;n.d.::^giii : :S{3 ! d . w e propose d tha t Stat e an d loca l agencie s woul d submi t thei r mino r NS Rprogram s fo: : certificatio n s o tha t case-by-cas e determination s fo r emission s unit s permitte d unde r a mino r NS Rprogra mwoul d
no t b e necessary . Th e thir d metho d wa s a case-by-cas e determinatio n tha t a n emissio n limitatio n wa s comparabl e t o BAC T o r LAE Rfo r tha t emission s unit . Fo r thes e .inits , w e propose d tha t th e Clea n Uni t egxclusio n woul d la s I: fo r 5 years . W e propose d tha t a determinatio n tha t a l:.mi t wa s comparabl e t o BAC T o r LAE Rcoul d b e base d o n on e :> f tw o methods : (1 ) th e averag e o f th e BAC T o r LAE Rfo r equivalen t source s ove r a recen t perio d o f tim e (suc ha s 3 yi.ars) ; o r (2 ) th e unit' s contro l leve l i s withi n som e percentag e (suc h
a s 5 o r 10 ) o f th e most , recent , o r averag e o f th e mos t recent , BAC T o r LAE Rlevel s fo r equivalen t o r simila r sources . I n addition , w e aske d fo r publi c commen t o n ..hethe r "th e Clea n Uni t t_t__rs-iqi.a1r_rtm & fea'tMs shoul d appl yt o emission s unit s wit hlimit s base d o n MAC T o r RACT . Althoug hw e d:i d no t propos e accompanyin g regulator ylanguage , w e suggeste d tha t reviewin g authoritie s us e th e titl e V permittin g oroces s t o / designat e Clea n Units . A*'"" ' 

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Interna lan dDeliberativ eDraft - D ono tquote , cite , copy , o rdistribute . Novembe r19 , 200 2 -l>-jiuiifltic/iisfeat:_iB . W e wan t t o clarif ythi s issue . Fo r source s i n nonattainmen t area s whic hwen t throug hmajo r NS R permittin g whil e th e are a wa s nonattainmen t o r whic hhav e qualifie d fo r Clea n Uni t statu s showin g the yar e comparabl e t o LAER , th e permitte d emission s leve l fo r th e Clea n Uni t
mus t hav e bee n offset . Th e emission s reduction s resultin g fro minstallatio n o f th e contro l technolog ytha t ; . s th e basi s o f a n emission s unit' s designa t ionstatu s a s a Clea n Uni t ma yno t b e use d a s offsets ; however , emission s reduction s belo wth e leve l tha t qualifie d th e uni t a s a Clea n Uni t ma yb e use d a s offset s i f the yar e surplus , quantifiable , permanent , an d fiodog.nlTij' * enforceabl e . Furthermore , fo r emission s unit s tha t ar e designate d a s Clea n Unit s an d tha t ar e locate d i n nonattainmen t areas , RAC T an d an yothe r requirement s fo r nonattainmen t are a source s unde r th e SI P wii l stil l apply . Th e onl yexceptio n t o thi s i s that- , th e specifi c majo r NS Rrequirement s relate d t o calculating'emission s increase s fro ma physical , chang e o r chang e i n th e metho d o f operatio n fo r al l othe r existin g source s tha t w e describ e i n thi s preambl e an d codif yi n today ' s rule s Jrsa : re no t applicabl e t o Clea n Units ^ becaus e th e Clea n Unit s ar e subjec t t o a n alternativ e majo r NS R applicabilit yrequiremen t fo r calculatin g emission s
22 6P. 5 11/22/0 2 FR I 16:1 9 FA X91 9 54 1 550 9 OPGII GEP A©02 4 1.1/22/0 2 FR I 00:2 9 FA X® 0 0 4

Interna l and Deliberativ e Draft

- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 reviewin g authorit yshal l no t presum e tha t a unit , tha t doe s no t mee t th e tes t i s no t a Clea n Unit . Th e qualit yan d numbe r o f determination s i n th e RBL C var yb ydifferen t typ e o f sources . Th e RBL C ma yno t alway s identif yal l th e type s o f contro l technolog ystrategie s tha t shoul d qualif ya n emission s uni t a s a Clea n Unit , o r i t ma yno t provid e a representativ e sampl e fo r makin g a n appropriat e determination . Therefore , eve n i f yo u ar e unabl e t o demonstrat e tha t you r emission s uni t i s a Clea n Uri t usin g thi s methodology , you r reviewin g authorit yshal l ro t allo w thi s outcom e t o prejudic e it s decision-making . Accordingly , w e ar e providin g a secon d optic n fo r determinin g whethe r yo u qualif y-a s a Clea n Unit . I f you r emission s uni t doe s no t mee t th e emissio n limitatio n determine d fro mth e analysi s o f th e RBL C describe d abov e (a s appropriat e fo r th e are a i n whic hi t i s located) , : r i f ther e i s insufficien t informatio n i n th e RBL C t o conduc t th e analysis , the n yo u ma ystil l show , o n a case-by-cas e basis , tha t you r emission s uni t wil l achiev e a leve l o f contro l tha t i s "substantiall ya s effective " a s BAC T o r LAilR , dependin g whethe r you r emission s uni t i s i n a n attainmen t
are a o r a nonattairwe'n t area . I n a n attainmen t araa , you r emis s ion s uni t wev e a leve l o f contro l tha t i s s 23 111/22/0 2 FR I16:2 0FA X91 9 54 1 550 9 1.1/22/0. 2 FR I00:2 9 FA X' OP GII GEPA P. 6 [2)02 5 @00 5

Interna lan dDeliberativ eDraft

- D o no t quote , cite , copy , o r distribute
. Kovembe r

19 , 200 2 "substantiall ya s effective " a s BAC T -±f~±± —aehisve-s—arr -imi.bslon—limitation—trb-_rfc—±-s—equal—t o or—bettei—tha-n—th e avera-ge—erf—tire—emission—limitation-s—aulii e v . ed—by—a- l • 1—th e sorrrrres—fur—w]iii_h—a—BACT—or—LAER—Ueteiminatiuii—hrcrs • bee n mad e
wj r 1 . i-n—H-re—px-ect-ding—5—y-e-snrs—arrd—elJ taL t

_J—irrrtro—the

—R13LC,—__rrd j Urcr—which—drt—irs—technically— f tjasible—to—apply—the—rfrA^rT—er r LACR . control—technology—to—trre—emissions—un i t . I n a nonattainmen t area , you r emission s uni t wil l achiev e a leve l
o f contro l tha t i s "substantiall ya s effective " a s LAE R i f i t achieve s a n emissio n limitatio n tha t i s a t leas t a s stringen t a s an yon e o f th e -frrcrsr^best-performin g simila r source s fo r whic ha LAE R determinatio n ha s bee n mad e withi n th e precedin g 5 years . Th e reviewin g authorit ywil l mak e a decisio n o n whethe r a particula r ai r pollutio n contro l technolog y(whic hinclude s pollutio n preventio n o r wor k practices ) i s "substantiall ya s effective " a s th e BACT/LAE R technolog yfo r a specifi c sourc e o n a case-by-cas e basis . Whil e w e ar e no t promulgatin g specifi c requirement s o r performanc e criteri a fo r satisfyin g th e "substantiall ya s effective " test , w e believ e reviewin g authoritie s ar e i n th e bes t positio n t o determin e whethe r i n fac t a particula r ai r pollutio n contro l technolog y(whic hinclude s pollutio n preventio n or

wor k practices ) i s "substantiall ya s 23 2P. 7 11/22/0 2FRI_.16:2 0FA X91 9 54 1 550 9 OP GII GEP

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Interna lan dDeliberativ eDraft - D ono tquote , cite , copy , ox- c.istribute . Novembe r19 , 200 2 mus t no t includ e emission s change s a t th e Clea n Ur.i t i n a nettin g analysis , o r us e the mfo r generatin g offsets , unles s th e emission s change s occu r an d yo u us e the mfo r thes e purpose s befor e th e effectiv e dat e o f Clea n Uni t :;tatu s o r afte r trfre

—Clea n Uni t statu s expires . However , i f yo u reduc e emission s fro mth e Clea n Uni t belo wth e leve l that , qualifie d th e uni t a s a Clea n Unit , yo u ma ygenerat e a credi t fo r th e differenc e betwee n th e leve l tha t qualifie d th e uni t a s a Clea n Uni t an d th e ne wemissio n limitation , i f sui:: h reduction s ar e surplus , quantifiable , permanent , -in d .Lu_-T. yenforceable . Suc hcredit s ma yb e use d Lo r nettin g o r a s offsets . W e ar e allowin g th e credi t t o b e compute d i n thi s manne r becaus e th e owne r o r operato r ha s alread y obtaine d a n actua l emissions-base d offse t fo r th e emission s
u p t o th e Clea n Uni t emissio n limitations . B yth; ; owner/operator' s acceptin g a—ftUt-ieil'i } eri f orceabl: : emissio n limitatio n belo wthi s level , thes e offset s ar e no, ; availabl e t o creat e additiona l actua l emission s reductions . Th e fina l rule s ar e simila r fo r emission s un:.t s tha t
are designate d a s Clea n Unit s i n a SIP-approve d permittin g proces s othe r tha n majo r NSR . Yo u mus t no t includ e emission s change s tha t occu r a t suc hunit s i n a nettin g analysis , o r us e the mfo r generatin g offsets , unli.s s th e
254P. 8 11/22/0 2 FR I 16:2 1 FA X91 9 54 1 550 9 OP GII GEP A@02 7 11/22/0 2 FR I 00:3 0 FA Xlg]0U 7

Interna l an d Deliberativ e Draft

- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 emission s change s occu r an d yo u us e the mfo r these ' purpose s befor e Lh' e effectiv e dat e o f th e SI P requirement s adopte d t o implemen t th e Clea n Unit s o r afte r ttn_r—Clean Unit . Je- » i. ijyi atio/.st,at.u:s

- expires . However , i f yo u reduc e emission s fro mth e Clea n Uni t belo wth e leve l tha t qualifie d th e uni t
a s a Clea n Unit , yo u ma ygenerat e a credi t fo r th e differenc e betwee n th e leve l tha t qualifie d th e uni t a s a Clea n Uni t an d th e ne wemissio n limitation , i f suc i reduction s ar e surplus , quantifiable , permanent , ai d f o i_U

_ r _rCly' enforceabl e . Suc hcredit s ma yb e use d fo r nettin g o r a s offsets . 13 . Ho wdoe s Clea n Uni t statu s appl ywhe n ther e ar e multipl e pollutants ? Clea n Uni t statu s i s pollutant—^specifi c an d :na yno t b e grante d fo r mor e tha n on e pollutant , excep t i n casij s wher e a grou p o f pollutant s i s characterize d a s a singl e pollutant , suc ha s VOCs . Yo u may , however , qualif yfa r simultaneou s Clea n Uni t statu s fo r othe r pollutant s a t thos e emission s unit s tha t ar e sufficientl ycontrolle d t o independentl y qualif ya s "clean " fo r eac hpollutant . Fo r unit s applyin g fo r Clea n Uni t statu s an d tha t d o no t alread yhav e a majo r NS Rpermit , th e reviewin g authorit ymus t specif yt'ie pollutant s fo r whic htrh e Clea n Uni t de*.ignaLiunsta:ivii s 25 511/22/0 2 FR I 16:2 1 FA X91 9 54 1 550 9 l'L/22*/0' 2 FRI 00:3 0 FA X OPGIIGEP A P. 9 4102 8

Interna l and Deliberativ e Draft

- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 However , whe n an ypollutan t liste d unde r sectio n :.1 2 o f th e Ac t tha t i s als o a constituen t o r precurso r o f a :nore genera l pollutan t tha t i s regulate d unde r sectio n 10 8 o f Act. , tha t liste d pollutan t ma yb e regulate d unde r NSRy par t o f regulatio n o f th e genera l pollutant . A s w e indicate d i n ou r proposal , Stat e an d lsca l agencie s wit ha n approve d PS D progra mma ycontinu e t o regulat e th e HA P no wexempte d fro mFedera l PS D bysectio n 112(b)(6 ) i f thei r PS D regulation s provid e a n incependen t basi s t o d o so . Thes e Stat e an d loca l rule s remai n i n effec t unles s the yar e revise d t o provid e similar ' exemptions . Suc hprovision s tha t ar e par t o f the : SI P ar e federall yenforceable . Sectio n 112(a ) retain s existin g NESHA P regulation s b y specifyin g tha t an ystandar d unde r sectio n 11 2 i n effec t befor e th e enactmen t o f th e 199 0 Amendment s remar.n s i n force . Therefore , th e requirement s o f 4 0 CFRgj ^ C1.0 5 t o 61.08 , includin g preconstructio n permittin g requirement s fo r ne wan d modifie d source s subjec t t o existin g NESHA P regulations , ar e stil l applicable . Pollutant s liste d unde r sectio n 112(r ) ar e no t include d i n th e definitio n o f regulate d NS Rpollutant . A: ; w e proposed , substance s regulate d unde r section..11 2 !r ) ma y stil l be ' subjec t t o PS D i f the yar e regulate d un:ie r othe r provision s o f th e Act . Fo r example , eve n thoug hH, S i s 32 7