## TECHNICAL SUPPORT DOCUMENT

20 New Mexico Administrative Code (NMAC) Chapter 2, Part 66

Cotton Gins

20.2.66 NMAC

June 12, 2012

FOR FURTHER INFORMATION CONTACT: Ms. Ashley Mohr, United States Environmental Protection Agency Region 6, Air Permits Section (6PD-R), 1445 Ross Avenue, Dallas, Texas, 75202-2733, (214) 665-72892 Subject: Revisions to the State Implementatio n Plan – New Mexico Administrative Code Title 20, Chapter 2, Part 66 – Cotton Gins

Contents:

I. Executive Summary

II. Summary of State Submittal

III. Technical Review of State Submittal

IV. Conclusion3 I. Executive Summary

What actions are evaluated in this Technical Support Document?

This technical support document (TSD) revi ews a proposed revision to the New Mexico minor New Source Review (NSR) State Implem entation Plan (SIP) concerning a new air quality regulation that applies to cotton ginning facilities. This review will determine if
the revisions are consistent with the requirements of the Clean Air Act and EPA’s policy and guidance.

April 25, 2005

• On March 16, 2005, the New Mexico Envi ronmental Improvement Board (EIB) adopted the addition of a new regulation, whic h is codified in Title 20, Chapter 2, Part
66 of the New Mexico Administrative C ode (NMAC), concerning an alternative process for issuing minor NSR permits to cotton ginning facilities. The Cotton Gin regulation became effective on April 7, 2005. Governor Bill Richardson submitted a
revision to the New Mexico minor NSR SIP in a letter dated April 25, 2005, requesting the addition of the Cotton Gin regulation.

• The April 25, 2005, submittal from New Mexico also contained revisions to 20.2.72 NMAC – Construction Permits, 20.2.73 NMAC – Notice of Intent and Emissions Inventory Requirements, and 20.2.75 NMAC – Construction Permit Fees. This TSD only reviews the portion of the April 11, 2002 submittal regarding 20.2.66 – Cotton Gins. Portions of the submittal related to Parts 72, 73, and 75 have been or will be addressed in separate SIP revi sions reviews and rule actions.

• The April 25, 2005, submittal from New Mexico also contained revisions to the New Mexico Air Quality Control Act (AQCA), specifically the 2003 amendments to Section 74-2-7(C) and (O), re lated to permit issuance for cotton ginning facilities.

The state statutes contained in the Ne w Mexico AQCA are beyond the scope of the New Mexico SIP, and revisions to the statutes are beyond th e statutory scope of this rulemaking. Therefore, revisions to the New Mexico AQCA will not be evaluated as
a revision to the New Mexico SIP. EPA is finding that the re visions to the New Mexico Air Quality Control Act (AQCA) contained in the April 25, 2005, submittal, specifically the 2003 amendments to Secti on 74-2-7(C) and (O), related to permit issuance for cotton ginning facilities, provide sufficient legal authority for the NMED to adopt and enforce the 20.2.66 NMAC.

• EPA is under a Consent Decree to take fi nal action on the por tion of the April 25, 2005, submittal that proposes to add the Co tton Gin regulation to the New Mexico minor NSR SIP no later than May 31, 2012.4 II. Summary of State Submittal

April 25, 2005, Submittal

• 20.2.66 NMAC – Cotton Gins The EIB adopted 20.2.66 NMAC (Part 66) on March 16, 2005, to provide an alternative process for cotton ginning facilities em itting no more than 50 tons per year of particulate matter emissions to appl y for air quality minor NSR construction permits. Part 66 prescribes certain minimal technical standards to minimize particulate matter (PM) emissions. Th e Part specifies permit application requirements, emission control requirements, fugitive dust plan requirements, operating and location restrictions, setback distance requir ements, and inspection and recording keeping requirements for cotton ginning facilities reque sting authorization under the alternative permitti ng process found in 20.2.66 NMAC.

What is the Cotton Gin regulation (20.2.66 NMAC)?

The Cotton Gin regulation provisions found in Pa rt 66 establish an a lternative process for owners and operators of cotton ginning facilities, as defined in the Part, to obtain a minor NSR construction permit. 20.2.66 NMAC was developed and adopted by NMED in response to 2003 amendments to the New Mexi co AQCA, specifically those amendments to Sections 74-2-7(C) and (O).

A “cotton ginning facility” is defined in Part 66 as “any facility that separates seed, lint, and trash from raw cotton, and bales lint cott on for further processing.” To meet the definition of a “cotton ginning facility,” Part 66 also requires that the facility have the

standard industrial classi fication code 0724 (cotton ginni ng) and the North American industrial standard classification code 11511 (cotton ginning). It must also have 50 tons per year or less of particulate matter emissions. 1 Those sources that meet the cotton ginning facility definition and elect to a pply for a minor NSR construction permit under Part 66, must meet the source specific require ments contained in the Part, which include application requirements and permit requirements.

As clarified by NMED, Part 66 works in conj unction with the Part 72 – Construction Permits program, and sources obtaining permits under Part 66 are also required to obtain a permit in accordance with the applica tion requirements contained in 20.2.72 NMAC (Part 72). 2 A source that obtains a minor NSR preconstruction permit under Part 66 for its particulate matter emissions is also required to meet the applicable requirements
contained in the SIP’s 20.2.72 NMAC – Constr uction Permits (Part 72) to obtain a minor preconstruction permit for its other emissions.

What are the Application Requirements for sources utilizing 20.2.66 NMAC?

1 Definition found in 20.2.66.7(C) NMAC.

2 Clarification on permit application requirements provided in March 5, 2012, letter from Richard Goodyear, NMED, to Jeffrey Robinson, EPA Region 6.5 In addition to meeting permit application re quirements found in Part 72, sources applying for a minor NSR construction permit under Part 66 must also state that the Part is applicable to the cotton ginning facility and propose allowable annual and hourly emissions from the facility, including limitations necessary that will result in allowable emissions being no more than fifty (50) tons per year for particulate matter emissions. The permit application must also include a pr oposed best system of emissions reductions for the facility, which includes at a mini mum the controls, limitations, plans, and practices found in Part 66.

What are the Permit Requirements for sources utilizing 20.2.66 NMAC?

Permits issued under Part 66 will include the emission limitations specified in the permit application, except as modified by the departme nt. The NMED is authorized to modify any of the proposed limitations a nd controls to be more string ent, as necessary to ensure that applicable requirements are met. The permit will also include applicable particulate matter emissions control requirements for high pressure and low pressure exhausts as specified in 20.2.66.202(B) and (C). Issued pe rmits will also include a fugitive dust management plan requirements and applicable requirements for fuel burning equipment as specified in 20.2.66.202(D) and (E), respectivel y. Part 66 also requ ires that permits

include restrictions on emissi on point locations that are de termined based on the cotton ginning facility’s hourly PM 10 emission rate. The cotton gin must be located at a minimum of ten (10) feet from the facility’s property boundary. The gin must also be at least 0.25 miles from any existing state part, r ecreation area, or school and at least three miles from any class I area. Permits issued under Part 66 will also include maintenance requirements as specified in 20.2.66.202(G). Th e permit will also include other permit conditions, including but not limited to recordkeeping, monitoring, reporting requirements, and test methods, as required to ensure the enforceability of the Part 66 permit conditions.

In addition to the permit requirements speci fied in Part 66, permits issued via the alternative permitting approach found in th e Cotton Gin regulation may also include additional permit conditions related to par ticulate matter emissions consistent with requirements of Part 72. 3 For example, additional case-by-case permit conditions may be included to ensure compliance with fede ral requirements (e.g., NAAQS), including emissions limitations and any monitori ng, recordkeeping and other applicable requirements, as necessary.

3 Clarification on permit requirements provided in March 5, 2012, letter from Richard Goodyear, NMED, to Jeffrey Robinson, EPA Region 6.6 III. Technical Review of State Submittal

This technical review of the April 25, 2005, submittal of 20.2.66 NMAC consists of a comparison between the relevant CAA require ments and the corres ponding sections in the SIP submittal. The SIP submittal was reviewed for completeness as a SIP submittal under Part 51, Appendix V and to confirm that the submittal met the requirements for the preparation, adoption, and submittal of impl ementation plans can be found in 40 CFR Part 51. Then the SIP revision is analyzed with respect to the current SIP-approved NSR program and subsequent revisions. A comp arison of the proposed SIP revision with section 110(l) of the CAA is presented to determine whether the proposed revisions interfere with any applicable CAA provi sions. These analyses produce a written
evaluation that will be used to make a dete rmination of whether or not the provisions of the Cotton Gin regulation in the April 25, 2005, SIP submittal are in agreement with the CAA, other EPA policies or guidance.

A. Part 51, Appendix V Evaluation B. Review with respect to Part 51 C. Review with resp ect to 110(l) of CAA7 III.A Part 51, Appendix V Evaluation

Evaluation of the April 25, 2005, SIP Submitta l with respect to Part 51, Appendix V

Part 51, Appendix V Completeness Checklist

The criteria for completeness determination ar e found in Appendix V to Part 51 – Criteria for determining the completeness of plan submissions and are outlined below:

1.0 Purpose: This appendix V sets fort h the minimum criteria for determining whether a state implementation plan submitted for consideration by EPA is an official submission for pur poses of review under § 51.103.

1.1 The EPA shall return to the submitting offi cial any plan or revision thereof which

fails to meet the criteria set forth in this appendix V, and re quest corrective action, identifying the component(s) absent or in sufficient to perform a review of the submitted plan.

1.2 The EPA shall inform the submitting offi cial whether or not a plan submission meets the requirements of this appendix V within 60 days of EPA’s receipt of the submittal, but no later than 6 months after the date which the State was required to submit the plan or revision. If a completeness determination is not made by 6 months from receipt of a submittal, th e submittal shall be deemed complete by operation of law on the date 6 months from receipt. A determination of completeness under this paragraph means that the submission is an official submission for purposes of § 51.103.

The attached checklist outlines the basi c criteria included under 2.1, 2.2, and 2.3 of Appendix V.8 SIP Completeness Checklist fo r the April 25, 2005, SIP Submittal

Adoption of 20.2.66 NMAC – Cotton Gins

Administrative Materials (2.1)

1. The package is sent with a formal submitta l letter from the Governor or his or her designee requesting EPA’s approval of the revision.

The SIP revision was submitted by a lette r from Governor Bill Richardson, dated April 25, 2005. The SIP submittal was received by EPA Region 6 External Affairs on May 4, 2005.

2. Evidence is included that the State has a dopted the revision in the State code or body of regulations, or that the State ha s issued the permit, order, consent agreement (hereafter document) in final fo rm. This evidence would include the date of adoption or final i ssuance and the effective date of revision, if different from the adoption/issuance date.

The revisions for the April 25, 2005, submittal were adopted by the New Mexico Environmental Improvement Board on March 16, 2005, filed with the New
Mexico State Records Center on Marc h 2, 2005, and became effective April 7,

2005.

3. Evidence is included that the State has necessary legal authority under State law to adopt and implement the revision, e .g., a citation of the appropriate State authority.

The authority for promulgating changes to the New Mexico State Implementation Plan, Part 66 – Cotton Gins is found in Paragraph 4 of Subsection A of Section 74-1-8 of the Environmental Improvem ent Act and Sections 74-2-1 et seq., including specifically, Sec tion 74-2-5(A) and (B), and S ection 74-2-7(A)(1), (B), (C), (D), and (O)of the New Mexico AQCA . EPA is finding that the revisions to the New Mexico Air Qualit y Control Act (AQCA) contained in the April 25, 2005, submittal, specifically the 2003 amendments to Section 74-2-7(C) and (O), related to permit issuance for cotton ginning facilities, provid e sufficient legal authority for the NMED to adopt and enforce the 20.2.66 NMAC.

4. A copy is included of the actual regulation or documen t submitted for approval and incorporation by reference into the SI P including an indication of the changes made to the existing approved place where applicable. The submittal shall be a copy of the official State regulation document signed, stamped, and dated by the appropriate State official i ndicating that it is fully enforceable by the State. The9 effective date of the regulation document shall, whenever possible, be indicated in

the document itself.

The April 25, 2005, submittal included a copy of the official state regulation document filed at the State Records Center on March 2, 2005, and which became effective on April 7, 2005.

5. Evidence is included that the State followe d all of the procedural requirements of

its laws and/or its constitution in the conducting and completing the adoption/issuance of the plan.

The SIP submittal package provided evidenc e that legal notices were published in the local newspaper regarding the adoption of the Cotton Gin regulation, as well as, information on the public hearing to be held regarding the proposed changes
to the state rules and how to submit co mments on the proposed changes. A copy of the public hearing transcript with s upporting exhibits was also included in the
submittal.

6. Evidence is included that public noti ce was given of the proposed changes consistent with the procedures approved by EPA, including the date of publication of such notice (e.g., notarize d or certified copies of any public notices published in newspapers). (The notice should be at least 30 days prior to the public hearing(s).

Notices of public hearings were publ ished in the following newspapers on the
date listed:

• Las Cruces Sun-News: September 1, 2004

• The Albuquerque Journal: August 18, 2004

Notice of the public comment period and He aring was also published in the New Mexico Register on August 31, 2004. A pub lic hearing was held in Las Cruces, New Mexico on October 5, 2004.

7. A certification is included i ndicating that public hearin g(s) was/were held in accordance with the information provided in the public notice(s) and the State’s laws and constitution, if applicable.

See transcriber’s certification at the end of the public hearing transcripts in the April 25, 2005, SIP submittal.

8. A compilation of public comments and the State’s response is included.

The SIP submittal package included copies of comments received from the public on the State regulation. The packages also included a copy of the Public Hearing Transcripts from the October 5, 2004, public hearing, during which public10 comments and responses regarding the Part 66 – Cotton Gins regulation were

discussed.

Technical Support (2.2)

1. Identification of all regulated polluta nts affected by the revision included.

The SIP submittal addresses alternative proc edures for cotton ginning facilities to obtain minor NSR air permits for particulat e matter emissions; therefore, the SIP submittal has the potential to address partic ulate matter. The emissions control requirements contained in the Cotton Gin regulation pertain to particulate matter emissions. All other pollutants emitte d from facilities using the Part 66 alternative permit approach will continue to be addressed via the requirements of the existing Part 72 construction permitting program.

2. Identification of the locations of affected sources including the EPA

attainment/nonattainment de signation of the locations and the status of the attainment plan for the aff ected area(s) is included.

The provisions establishing an alternati ve procedure for cotton ginning facilities to obtain minor NSR air permits can be applied statewide as long as the emission source meets the specific requireme nts contained in the regulation.

3. Quantifications of the changes in SIP allowable emissions from the affected sources is included. (Examples include estimates of changes in current actual

emissions from affected sources and/or , where appropriate, quantification of changes in actual emissions from affect ed sources through calculations of the

differences between certain baseline levels and allowable emissions anticipated if the revisions were approved.)

The provisions for establis hing alternative means for co tton ginning facilities to apply for minor NSR construction permits do not need to include quantification of the changes in SIP allowable emissions from the affected sources. The mechanics of the construction permitting process ensure appropriate amounts of permitted emissions are approved.

4. Demonstration is included that the NAAQS/PSD increments/RFP demonstration and visibility as applicable would be pr otected if the revision were approved and implemented.

See section III.C of this document for more information regarding the SIP revision and how it meets the section 110(l) requirements that require the revision not interfere with attainment or re asonable further progress or any other applicable requirement of the Act.

5. FOR REDESIGNATIONS:11 a. Is there a fully approved maintenan ce plan for the primary ambient air quality standards for at least 10 years as required by § 175A of the Clean

Air Act?

Not applicable.

b. Are contingency measures included?

Not applicable.

6. Modeling information, if app licable, is required to s upport the proposed revision.

Modeling information is not necessa ry to support this SIP revision.

7. Evidence is included where necessary, that emission limitations are based on

continuous emission reduction t echnology (e.g., add-on controls, industrial/process equipment designs, re formulated materials, etc.).

The Cotton Gin regulation does not in its elf establish emission limitations. The construction permitting program will impl ement emission limitations on a permitby-permit basis as appropriate.

8. Evidence is included indicating that a SIP revision contains emission limitations, work practice standards and recordkeep ing/reporting requirements to ensure

stated emission levels.

The Cotton Gin regulation does include a recordkeeping component requiring that the owner or operator maintain reco rds of daily inspections. Additionally, each individual issued minor NSR construction permit will include separate emission limitations, work practice standards and recordkeeping/reporting requirements sufficient to ensure perm itted particulate matter emission levels.

9. Compliance/enforcement strategies including how compliance will be determined in practice (including at what frequency).

The Cotton Gin regulation does not need to include compliance/enforcement strategies. Compliance/enforcement of the construction permitting program will be determined on a perm it-by-permit basis.

10. As appropriate, special economic and technol ogical justif ications are included per applicable EPA policies or an explana tion why such justifications are not necessary should be included. For exampl e, requests for alternative RACT may require such justification.

These justifications are not n ecessary for this SIP revision.12 The April 25, 2005, SIP submittal meets the co mpleteness criteria established in 40 CFR part 51, Appendix V.13 III.B. Review with respect to 40 CFR Part 51

Requirements for the preparation, adoption, a nd submittal of implementation plans can be found in 40 CFR Part 51. The April 25, 2005, pr oposed SIP revisions to add alternative methods for cotton ginning facilities to obt ain minor NSR construction permits were evaluated against the ap plicable requirements in Part 51. This analysis is included in Table B.I below. This section only addr esses the proposed addition of the Cotton Gin regulation (20.2.66 NMAC) under revi ew in this TSD. All other revisions proposed in the April 25, 2005, SIP submittal will be eval uated with respect to Part 51 when EPA
takes actions on those revisions.

Table B.I: Analysis of Part 51 Requirements

Part 51 – Requirements for Preparation, Adoption, and Submittal of Implementation

Plans Cotton Gin Regulation
20.2.66 NMAC

Subpart A – Emission Inventory Reporting Requirements The submitted sections under review in this document regarding the Cotton Gin regulation do not affect the current NM requirements for Emission Inventory Reporting. Subparts B – E [Reserved] Not applicable. Subpart F – Procedural Requirements Subpart F – Procedural Requirements § 51.100 Definitions § 51.100 is not applicable to the Cotton Gin regulation under review in this TSD. § 51.101 Stipulations § 51.101 is not applicable to the Cotton Gin regulation under review in this TSD.
§ 51.102 Public Hearings

• States must conduct one or more public hearings

• Public hearings will only be held after reasonable notice, given at least 30 days prior to the date of the hearing

• The state must submit with the revision a certification that the hearing was held in
accordance with this section Please see section III.A of this TSD for the evaluation of the SIP revision with respect to the Part 51, Appendix V Checklist. The SIP
submission under review in this document met the requirements of 51.102 for notification of public hearings, as detailed in the Part 51, Appendix V Checklist and certified by appropriate state

officials.

§ 51.103 Submission of plans, preliminary review of plans

• The state makes an official plan submission to EPA only when the submission conforms to the requirements of Part 51, Appendix V.

• The state delivers 5 copies of the plan with a letter giving notice of the action to the EPA regional office. Please see section III.A of this TSD for the evaluation of the SIP revision with respect to the Part 51, Appendix V Checklist. The SIP submission meets the requirements for completeness.

§ 51.104 Revisions

• States may revise the plan from time to

time

• EPA will approve revisions only after appropriate public hearing requirements
have been met

• Revisions must be submitted in
accordance w ith 51.103 Please see section III.A of this TSD for the evaluation of the SIP revision with respect to the Part 51, Appendix V Checklist. The SIP submission meets the requirements of 51.102, 51.103, and 51.104 for notification of public hearings and submission of revisions, as detailed in the Part 51, Appendix V Checklist and certified by appropriat e state officials.14 Part 51 – Requirements for Preparation, Adoption, and Submittal of Implementation

Plans Cotton Gin Regulation
20.2.66 NMAC

Subpart G – Control Strategy Requirements found in 51, Subpart H are not applicable to the sections under review in this
document. These sections establish an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and are not concerned control strategies necessary to attain or maintain NAAQS. Subpart H – Prevention of Air Pollution Emergency Episodes Requirements found in 51, Subpart H are not applicable to the sections under review in this
document. These sections establish an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and are not concerned with air pollution emer gency episode plans. Subpart I – Review of New Sources and
Modifications Part 51, Subpart I requirements are applicable to
the SIP submittal under review in this document. Please see the additional analyses in this section
and section III.C for more details about how each section satisfies the CAA and Part 51, Subpart I requirements for NSR permitting. Subpart J – Ambient Air Quality Surveillance Requirements found in 51, Subpart J are not applicable to the SIP submittal under review in this
document. The SIP revisions establish an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and are not concerned with ambient air quality
surveillance. Subpart K – Source Surveillance Requirements found in 51, Subpart K are not applicable to the SIP submittal under review in this
document. The SIP revisions establish an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and are
not concerned with source surveillance. Subpart L – Legal Authority Subpart L – Legal Authority § 51.230 Each plan must show that the State has the necessary legal authority to carry out the plan, including the authority to adopt emission standards and limitations necessary for attainment of the NAAQS, enforce applicable laws and regulations and seek injunctive relief. As specified in the submittal, the SIP revision package was developed under the legal authority at Chapter 74, Article 2, NMSA 1978, including specifically, Section 74-2-5(A) and (B), and Section 74-2-7(A)(1), (B), (C), (D) and (O).

§ 51.231 The provision of law or regulation which the State determines provides the authorities required must be specifically indentified and copies must be submitted with the plan. As specified in the submittal, the SIP revision package was developed under the legal authority at Chapter 74, Article 2, NMSA 1978, including specifically, Section 74-2-5(A) and (B), and Section 74-2-7(A)(1), (B), (C), (D) and (O). § 51.232 A state government agency other than the State air pollution control agency may be assigned responsibility for carrying out a portion of the plan. The New Mexico minor NSR SIP revision
reviewed in this document identified the EIB as the agency responsible for developing, implementing, and enforcing the SIP. Please see section III.A of this document for the Part 51, Appendix V checklist for each submittal. Subpart M – Intergovernmental Consultation The New Mexico minor NSR SIP revision
reviewed in this document identified the EIB as15 Part 51 – Requirements for Preparation, Adoption, and Submittal of Implementation

Plans Cotton Gin Regulation
20.2.66 NMAC

Each plan must identify organizations by title that will participate in the development, implementation, and enforcement of the plan. the agency responsible for developing, implementing, and enforcing the SIP. Please see section III.A of this document for the Part 51, Appendix V checklist for each submittal. Subpart N – Compliance Schedule Requirements found in 51, Subpart N are not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities. These revisions do not establish a compliance schedule for any NAAQS, and therefore do not need to address the requirements of 40 CFR 51, Subpart N. Subpart O – Miscellaneous Plan Content Requirements Requirements found in 51, Subpart O are not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities. It is not necessary that this SIP submittal also establishes electronic reporting procedures or public notification requirements as part of the action. In addition, this SIP submittal is not expected to have a fiscal implication for NM ED or other state/local government through the implementation of the Cotton Gin regulation. Subpart P – Protection of Visibility Requirements found in 51, Subpart P are not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities, and are not submitted as part of the Department’s protection of visibility program. Subpart Q – Reports Requirements found in 51, Subpart Q are not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and does not establish new reporting requirements.

Subpart R – Extensions Requirements found in 51, Subpart R are not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and is not related to a request for an 18-month extension.

Subpart S – Inspection/Maintenance Program Requirements Requirements found in 51, Subpart S are not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and does not establish inspection/maintenance programs.

Subpart T – Conformity to State or Federal Implementation Plans of Transportation Plans, Programs, and Projects Developed, Funded, or Approved Under Title 23 U.S.C or the Federal
Transit Laws Requirements found in 51, Subpart T are not applicable to the SIP submittal under review in this document, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and does not interfere with the transportation conformity budgets developed for16 Part 51 – Requirements for Preparation, Adoption, and Submittal of Implementation

Plans Cotton Gin Regulation
20.2.66 NMAC

each nonattainment and maintenance area pursuant to subpart T. Subpart U – Economic Incentive Programs 40 CFR part 51, subpart U establishes requirements for statut orily mandated economic incentive programs under sections 182(g)(3), 182(g)(5), 187(d)(3), or 187(g) of the CAA. This subpart is not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning

facilities. Subpart W – Determining Conformity of General
Federal Actions to State or Federal Implementation Plans Requirements found in 51, Subpart W are not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and does
not address or interfere with the New Mexico rules for general conformity. Subpart X – Provisions for Implementation of 8-hr Ozone NAAQS Requirements found in 51, Subpart X are not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and are not associated with the implementation of the 8- hour ozone NAAQS. Subpart Y – Mitigation Requirements Requirements found in 51, Subpart Y are not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and are not associated with the mitigating requirements of exceptional events. Subpart Z – Provisions for Implementation of

PM 2.5 NAAQS Requirements found in 51, Subpart Z are not applicable to the SIP submittal, which establishes an alternative process for issuing air quality minor NSR permits to cotton ginning facilities and are not associated with the implementation of the

PM 2.5 NAAQS.III.C. Evaluation with respect to section 110(l) of the Clean Air Act

This section 110(l) analysis will be c onducted considering the Part 66 – Cotton Gin regulation submitted in the April 25, 2005, SIP submittal as one component of the New Mexico minor NSR permitting program. Specifically, these rules establish an alternative process for issuing minor NSR air quality permits to cotton ginning facilities.

Section 110(l) of the Clean Air Act states:

Each revision to an implementation plan s ubmitted by a State under this Act shall be adopted by such State after re asonable notice and public hearing. The Administrator shall not approve a revi sion of a plan if the revision would interfere with any applicable requirem ent concerning attainment and reasonable further progress (as defined in section 171), or any other applicable requirement of this Act.

Thus, under section 110(l), this SIP revision must not interfere with attainment or reasonable further progress or any other applicable requirement of the Act.

Prior to the state’s adopti on of the Part 66 – Cotton Gins regulation, cotton ginning facilities seeking a construction permit woul d apply for a permit under the provisions of Part 72. With the adoption of the Cotton Gin regulation, cotton ginning facilities now have an alternative process to apply for a nd receive a minor NSR construction permit for particulate emissions if they meet the requirements of Part 66. Part 66 includes provisions containing emission control requirem ents, fugitive dust plan requirements, and

location restrictions for cott on ginning facilities that are specific to the control of emissions and minimization of impacts from PM emissions. All other pollutants will continue to be addressed via the requirem ents of the Part 72 minor NSR construction permitting program. Permits issued to cotton ginning facilities under Part 66 are permitted as minor NSR construction permits per Part 66 and Part 72 requirements. 4
20.2.72 NMAC was approved into the New Mexico SIP by EPA on September 26, 1997. 5

Therefore, in this section we have evalua ted the Cotton Gin regulation for its impact on attainment and reasonable further prog ress for particulate matter emissions.

The entire state of New Mexico wa s designated attainment for the 1997 PM 2.5 NAAQS. Additionally, the entire state of New Mexi co was designated attainment for the 2006

PM 2.5 NAAQS. The only area designated nonattainment for PM 10 in New Mexico is Anthony, which is located in Dona Ana Count y. Anthony, New Mexico is designated as

nonattainment for PM 10 . The nonattainment area is locate d in southeastern Dona County centered on the city of Anthony located just north of New Mexico-Texas border. While, Dona Ana County does contain cotton ginning fa cilities, these facilities are located outside of the Anthony nonattainment area. In New Mexico’s November 8, 1991, SIP revision for the Anthony PM 10 nonattainment area, the state demonstrated that PM 10

4 Additional clarification regarding how Part 66 works in conjunction with Part 72 provided in March 5, 2012, letter from Richard Goodyear, NMED, to Jeffrey Robinson, EPA Region 6.

5 62 FR 5051818 emissions from existing cotton gins locat ed in Dona Ana County did not have a significant impact on air quality in Anthony. 6 Therefore, New Me xico did not include control requirements for any point sour ces, including cotton gins, in their PM 10 SIP revision for Anthony. EPA approved the PM 10 SIP for Anthony, New Mexico on September 9, 1993. 7,8

Annual emissions inventory information compiled by NMED for inventory year 2002
shows that annual emissions of PM 10 resulting from cotton gins located in Dona Ana County is much less than the total PM 10 emissions from both agricultural and nonagricultural emission s ources in that county. 9 The 2002 Dona Ana County emissions inventory data also shows that annual emissions of PM 2.5 from cotton gins are much less

that the total PM 2.5 emissions. There also is no new evidence that new minor source cotton gins would have a significant imp act on air quality in Anthony. There is no evidence of growth in cotton gi ns since 1991, the date of the PM 10 SIP revision that EPA approved; in fact, at least tw o cotton gins have permanently shut down. Therefore, we expect that the impacts of PM 10 emissions from cotton gins on air quality in Dona Ana County, including in Anthony, would be sma ll relative to the impacts from other emission sources. This expectation is consis tent with the demonstr ation of de minimis impacts from the cotton gin emissions on ai r quality in Anthony in New Mexico’s PM 10 SIP revision.

The cotton gin industry, including ginning activ ity in Dona Ana Count y, is not expected to experience significant growth from curre nt activity levels. Currently, four cotton ginning facilities are located in the state of New Mexico. Only one of these gins has utilized the Part 66 permitting approach, Mesa Farmers Cotton Gin, which is located in Dona Ana County. When the Cotton Gin re gulation was developed and adopted by New Mexico in 2005, seven commercial gins were registered in New Mexico, with six of the registered gins actually operating. Since 2005, three of these seven cotton gins have closed. Only one of the remaining four cotton gins is located in Dona Ana County. The current ginning capacity in New Mexico is mo re than sufficient to handle the State’s cotton production and annual tr ends show decreasing cotton production since the State’s

6 Revision to the New Mexico PM 10 State Implementation Plan for Anthony, New Mexico prepared by NMED Air Quality Bureau dated November 8, 1991. Available at: http://www.nmenv.state.nm.us/aqb/NEAP/dona_ana2.html

. 7 58 FR 47383

8 In the approval of New Mexico’s November 8, 1991, SIP revision, EPA concurred that after implementation of reasonable controls anthropogenic sources as a whole do not contribute significantly to
the PM 10 NAAQS violations in the Anthony, New Mexico nonattainment area.

9 Appendix D of the 2005 Reevaluation Dona Ana County Natural Events Action Plan (NEAP) provided
2002 annual emissions of PM 10 for various sources types located in Dona Ana County. The report included the following estimates of total PM 10 from nonagricultural and agricultural sources in Dona Ana County: 57,671.0 tons per year and 7,757.5 tons per year. Estimated 2002 annual PM 10 emissions from cotton gins located in Dona Ana County were 16.9 tons per year. The estimated total PM 2.5 from nonagricultural and agricultural sources in Dona Ana County: 12,616.8 tons per year and 1,218.4 tons per year. Estimated
2002 annual PM 2.5 emissions from cotton gins located in Dona Ana County were 2.2 tons per year. NEAP documents, including Appendix D available at: http://www.nmenv.state.nm.us/aqb/NEAP/dona_ana2.html

.19 adoption of the Cotton Gin regulation. 10 Moreover, of the four currently operational cotton ginning facilities located in New Mexi co, only one has received a permit through the Part 66 permitting process. Furthermore, if a new minor cotton gin source wished to construct in Dona Ana County and applied fo r a permit via the Part 66 alternative minor NSR preconstruction permitting process, the permit would limit the emissions of PM 10 or PM 2.5 to not more than 50 tons per year.

For all other areas of New Mexico located outside of the Anthony PM 10 nonattainment area, the Cotton Gin regulation is evaluated to determine if the SIP revision will interfere
with attainment for PM 2.5 or PM 10 . As previously mentioned, based on the State’s current ginning capacity and cotton production trends, co tton ginning activity in New Mexico is not expected to experience si gnificant growth from current activity levels. If a new minor cotton gin source is to be located in New Mexico, and the owner chooses the Part 66 alternative method, the cotton gin facility must apply fo r a minor NSR preconstruction permit under Part 66 and the permit will limit the emissions of particulate matter to not more than 50 tons per year. In addition, a source applying for a minor preconstruction permit under Part 66 is required to meet at a minimum the control requirements contained in the Cotton Gin regulation, which include control equipment requirements for high and low pressure exhausts, opacity limitations, implementation requirements for a fugitive dust management plan, fuel usage limitati ons for any fuel burning equipment, and

location restrictions based on th e facility’s emission rates.

Prior to the adoption of Part 66, New Mexico did not have sp ecific regulations or control requirements for cotton ginning facilities. Instead, control requirements for new and modified cotton ginning facilities were esta blished through the ex isting case-by-case preconstruction permitting program in the SIP (Part 72 for minor sources). The adoption of Part 66 establishes specific control requirements for part iculate matter emissions that

are not contained in the curre nt New Mexico SIP for cott on ginning facilities seeking a minor preconstruction permit via the alte rnative minor NSR preconstruction permit approach. New Mexico also re tains the authority and procedures to amend the Part 66 Cotton Gin regulation if federal standards or requirements change and the Cotton Gin regulation is no longer adequate to ensure that applicable requirements are met. 11

Our evaluation of the April 25, 2005, SI P submittal with respect to both PM 10 nonattainment and attainment areas and to PM 2.5 impacts demonstrates compliance with section 110(l) of the CAA and provides further basis for approval of this SIP revision.

10 Information regarding the current cotton gin industry and expected growth provided in April 18, 2012, email communications from Lany Weav er, NMED and Ed Hughs, USDA.

11 Additional clarification regarding amendments procedur es for Part 66 provided in March 5, 2012, letter from Richard Goodyear, NMED, to Jeffrey Robinson, EPA Region 6.20 III.D. Review of Cross-References in 20.2.66 NMAC – Cotton Gins

As part of our evaluation of the Cotton Gin regulation contained in 20.2.66 NMAC, we
reviewed all cross-references listed in the fees rule language itself. Below is a table summarizing all the cross-references contai ned in the Cotton Gin regulation provisions

and the associated EPA actions.

Construction Permit Fees Cross-References EPA Action

20.2.66.7 NMAC references definitions found in 20.2.2

NMAC. Definitions contained in 20.2.2 NMAC were approved by EPA on September 26, 1997 (62 FR 50518) effective November 25, 1997.

20.2.66.7(B) NMAC references the description of class I

found in 20.2.74.108 NMAC. The class I description contained in 20.2.74.108 NMAC were approved by EPA on Se ptember 5, 2007 (72 FR 50879) effective October 5, 2007.

20.2.66.7(L) NMAC references the air quality regulations
found in 20.2.72 NMAC. 20.2.72 NMAC was approved by EPA on September 26, 1997 (62 FR 50518) effective November 25, 1997.

20.2.66.200 NMAC references the construction permit program found in 20.2.72 NMAC. 20.2.72 NMAC was approved by EPA on September 26, 1997 (62 FR 50518) effective November 25, 1997.

20.2.66.201(A) NMAC refere nces the following permit application content requirements found in 20.2.72.203

NMAC:

• Paragraphs (1) through (3), (5) through (15) of

Subsection A, and

• Subsections B through E. The permit application content requirements contained in Paragraphs (1) through (3), (5) through (15) of Subsection A, and Subsections B through E of 20.2.72.203 NMAC were approved by EPA on Se ptember 26, 1997 (62 FR 50518) effective November 25, 1997.21 IV. Conclusion

The technical analysis provided in the preced ing sections has compared the applicable sections of the CAA and 40 CFR Part 51 to New Mexico’s April 25, 2005, submission of

20.2.66 NMAC.

The analysis found that the adoptions of the new Part 66 submitted on April 25, 2005, containing the Cotton Gin regulation is cons istent with the CAA and 40 CFR Part 51.

Because our review of 20.2.66 NMAC as re vised in the April 25, 2005, SIP submittal finds that the Cotton Gin regulation is an established limite d-scope regulation establishing an alternative permitting approach for cotton ginning facilities that are minor sources of emissions, we have determined that this action should be considered
noncontroversial. It is recommended that di rect final approval of these revisions be published.