## TECHNICAL SUPPORT DOCUMENT

Amendments to 20.2.74 NMAC Permits – Prevention of Significant Deterioration §§ 20.2.74.7

Submitted by NMED on December 1, 2010



## March 30, 2011

FOR FURTHER INFORMATION CONTACT: Ms. Ad ina Wiley, United States Environmental Protection Agency Region 6, Air Permits Section (6PD-R), 1445 Ross Avenue, Dallas, Texas 75202-2733, (214) 665-2115.

### 2 Subject : Review of Proposed Revisions to the New Mexico Prevention of Significant Deterioration Program submitted December 1, 2010

Contents: I. Executive Summary II. Technical Review of State Submittal

V. 

### Conclusion

### 3 I. Executive Summary

What actions are evaluated in this Technical Support Document?

This technical support document (TSD) reviews proposed revisions to the New Mexico State Implementation Plan (SIP) concerning the Pr evention of Significant Deterioration (PSD) Program. This review will determine if the PSD program revisions are consistent with the requirements of the Clean Air Act and EPA’s policy and guidance.

December 1, 2010

• On November 10, 2010, the New Mexico Environmental Improvement Board adopted revisions to the New Mexico PSD program to implement the GHG Tailoring Rule thresholds at 20.2.74.7 New Mexico Air Code (NMAC) by a dding the definitions of “greenhouse gas” and “subject to regulation”, revising the de finition of “regulated new source review pollutant”, and renumbering all other definitions as appropriate. Additional revisions to the New Mexico PSD program were adopted at 20.2.74.9 NMAC to update an address for the New Mexico Environment Department (NMED), at 20.2.74.200 and 20.2.74.300 NMAC to update cross-references to the newly adopted PSD definitions, and at 20.2.74.320 to revise the Plantwide Applicability Limits (PALs) provisions. Governor Bill Richardson submitted these revisions to the PSD program to EPA as a SIP revision in a letter dated December 1, 2010.

• On November 10, 2010, the New Mexico Enviro nmental Improvement Board also adopted revisions to the New Mexico Title V program to implement the GHG Tailoring Rule thresholds at 20.2.70 NMAC. Governor Bill Richardson also submitted these revisions to the Title V program to EPA as a part 70 program revision in a letter dated December 1, 2010. EPA will take separate action on the revisions to the New Mexico Part 70 program at a later date and in a separate rulemaking; therefore this TSD will not review the 2010 revisions to the NM Title V program.

What action has EPA taken on the New Mexico PSD Program?

The New Mexico PSD program is fully SIP-ap proved through the June 11, 2009, SIP submission to EPA, effective on August 31, 2009. EPA approved these submitted revisions to the SPD program on November 26, 2010, at 75 FR 72688.

### 4 II. Technical Review of State Submittal

This technical review of the December 1, 2010, submitted revisions to the New Mexico PSD program at sections 20.2.74.7, 20.2.74.9, 20.2.74.200, 20.2.74.300, and 20.2.74.320 NMAC consists of a comparison between the relevant CAA requirements and the corresponding sections in the SIP submittal. The SIP submittal is first reviewed for completeness as a SIP submittal under Part 51, Appendix V. Next, a section-by-section review of the submittal in comparison to 40 CFR Part 51 is presented to determine whether the submittal satisfies the requirem ents for preparation, adoption, and submittal of a SIP revision. Then the proposed SIP re visions to 20.2.74.7 are analyzed line-by-line to ensure the GHG Tailoring Rule requirements are implemented correctly. The proposed revisions to 20.2.74.9, 20.2.74.200, 20.2.74.300, and 20.2.74.320 NMAC are analyzed with respect to the current SIP- approved PSD program. Finally, a comparison of the proposed SIP revisions with section 110 (l) of the CAA is presented to determine whether the proposed revisions interfere w ith any applicable CAA provisions. These analyses produce a written evaluation that will be used to make a determination of whether or not the PSD program revisions in the December 1, 2010, SIP submittal are in agreement with the CAA, othe r EPA policies or guidance.

A. December 1, 2010 1. Part 51, Appendix V Completeness Determination 2. Review with respect to Part 51 3. Review with respect to the GHG Tailoring Rule Requirements 4. Review with respect to the cu rrent SIP-approved NM PSD Program 5. Review with respect to Section 110(l) of CAA

### 5 A. Evaluation of the D ecember 1, 2010 SIP Submittal

1. Evaluation of the December 1, 2010 SI P Submittal with respect to Appendix V to Part 51

The criteria for completeness determination are found in Appendix V to Part 51 - Criteria for determining the completeness of plan submissions and ar e 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 purpos es 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 request 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 offici al 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 comple teness determination is not made by 6 months from receipt of a submittal, the 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.

### 6 SIP Completeness Checklist for the December 1, 2010 SIP Submittal

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 December 1, 2010. The SIP submittal was received by EPA Region 6 External Affairs on December 15, 2010.

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 adoption/issuance date.

The revisions were adopted by the Ne w Mexico Environmental Improvement Board on November 10, 2010, effective on January 1, 2011.

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 New Mexico Environmental Improvement Board is authorized to adopt the amendments to NMAC 20.2.74. Pursuant to the New Mexico Air Quality Control Act (AQCA), § 74-2-5(B)(1), the Envi ronmental Improvement Board may adopt regulations to “prevent or abate air pollution...within the geographic area of [its] jurisdiction.” Pursuant to the AQAC, §74-2-5(C)(1 )(a), the PSD regulations “shall be...at least as stringent as re quired by the federal act and federal regulations...pertaining to prevention of significant deterioration...”

4. A copy is included of th e actual regulation or docum ent submitted for approval and incorporation by reference into the SI P including an indication of the changes made to the existing approved plan wher e 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. The effective date of the regulation document shall, whenever possible, be indicated in the document itself.

The December 1, 2010, submittal included a copy of the official State regulation document, signed, stamped, and dated by Bill Richardson, Governor of New Mexico.

### 7 5. Evidence is included that the State followe d all the procedural requirements of its laws and/or its constitution in conducti ng and completing the adoption/issuance of the plan.

The SIP submittal was developed pursuant to 40 CFR 51.104.

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:

• The Albuquerque Journal: September 8, 2010

• The Albuquerque Journal: September 16, 2010

A public hearing was held in Santa Fe, NM on November 8, 2010.

7. A certification is included indicating 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.

A transcript of the November 8, 2010, he aring was included that provided evidence the hearing was conducted pursuant to the New Mexico Environmental Improvement Board’s rulemaking procedures.

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

The SIP submittal package did include a compilation of comments. NMED received written testimony from thre e parties during the comment period, including EPA Region 6, and received oral testimony from one party during the public hearing.

Technical Support (2.2)

The State should include the following techni cal information in its SIP revision request package.

1. Identification of all regu lated pollutants affected by the revision is included.

• The revisions to the New Mexico PSD program apply to all pollutants regulated under the PSD program. Specifically, the revisions to 20.2.74.7 NMAC adopt and implement the PSD provisions to regulate GHGs above certain thresholds in EPA’s Tailoring Rule.

### 8 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 SIP submittal amends the existing PSD program that applies statewide.

3. Quantification 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 SIP submittal amends the existing PS D program. Quantification of changes in the SIP allowable emissions from the affected sources is not necessary for inclusion. Any new sources of GHG emi ssions subject to re gulation under the PSD program will follow the SIP-approved PSD permitting process.

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.

The SIP submittal amends the existing PSD program to adopt and implement the GHG Tailoring Rule thresholds. There is no demonstration included that the NAAQS/PSD increments/RFP demonstration and visibility are protected because there are no current NAAQS or increment for GHGs and the GHG thresholds will not interfere with RFP or visibility.

5. FOR REDESIGNATIONS:

a. Is there a fully approved maintena nce plan for the primary ambient air quality standards for at least 10 years as requir ed 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 necessary to support this SIP revision.

### 9 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, reformulated materials, etc.).

This SIP submittal amends the existing PSD program to adopt and implement the GHG Tailoring Rule thresholds. Any requi rements for emission limitations or emission reduction technology for GHGs will be implemented pursuant to the SIP-approved PSD permitting program.

8. Evidence is included indicating that a SI P revision contains emission limitations, work practice standards, and recordk eeping/reporting requirements to ensure stated emission levels.

This SIP submittal amends the existing PSD program and does not contain or revise emission limitations or workplace standards.

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

The SIP submittal amends the existing PSD program to adopt and implement the GHG Tailoring Rule thresholds. The comp liance strategies previously reviewed and approved by EPA will continue to apply to the regulation of GHGs under the New Mexico PSD program.

10. As appropriate, special economic and tec hnological jus tifications 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.

The December 1, 2010, SIP submittal meets th e completeness criteria established in 40 CFR part 51, Appendix V.

### 10 A. Evaluation of the D ecember 1, 2010 SIP Submittal

2. Evaluation of the December 1, 2010 PSD revisions with respect to 40 CFR 51

Requirements for the preparation, adoption, a nd submittal of implementation plans can be found in 40 CFR Part 51. The December 1, 2010, proposed PSD revisions were evaluated against the ap plicable requirements in Part 51. This analysis is included in Table II-A2 below. DERC revisions and EBTA program will be acted on separately by EPA at a later date.

Table II-A2: Analysis of Part 51 Requirements

Part 51 – Requirements for Preparation, Adoption, and Submittal of Implementation Plans PSD Program Revisions 20.2.74.7, 20.2.74.9, 20.2.74.200, 20.2.74.300, and 20.2.74.320 NMAC

Subpart A – Emission Inventory Reporting Requirements The revisions to the New Mexico PSD program do not revise the existing emission inventory reporting requirements.

Subparts B – E [Reserved] Not applicable. Subpart F – Procedural Requirements Subpart F – Procedural Requirements § 51.100 Definitions § 51.100 is not applicable to the SIP submittal under review in this TSD. § 51.101 Stipulations § 51.101 is not applicable to the SIP submittal 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 • MED held a public hearing on November 8, 2010, in Santa Fe, New Mexico.

• The public hearing was held after reasonable notice was given. TCEQ published notice of the public hearing in the following newspapers on the dates listed below:

• September 8, 2010 in The Albuquerque Journal;

• September 10, 2010 in The Albuquerque Journal;

• August 31, 2010 in The New Mexico Register;

• September 30, 2010 in The New Mexico Register.

• NMED submitted a certification that the public hearings were held in accordance with § 51.102. § 51.103 Submission of plans, preliminary review of plans

• The state makes an offici al 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 II.A of this TSD for the evaluation of this SIP revision with respect to the Part 51, Appendix V Checklist.

The SIP submission meets the requirements for completeness.

§ 51.104 Revisions Governor Richardson submitted the revisions to the

### 11 • 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 with 51.103 PSD program on December 1, 2010. This SIP revision, as demonstrated previously in this table and section II.A of this document, has satisfied the public hearing requirements of § 51.102 and the requirements of § 51.103.

Subpart G – Control Strategy Subpart G – Control Strategy § 51.110 Attainment and Maintenance of National Standards Requirements found in § 51.110 are not applicable to the SIP submittal under review in this document. There are no primary or secondary national standards for GHGs. § 51.111 Description of Control Measures Requirements found in § 51.111 are not applicable to the SIP submittal under review in this document. The revisions to the PSD permitting program will follow the SIP-approved requirements for enforcement and monitoring of the PSD program. § 51.112 Demonstration of Adequacy Requirements found in § 51.112 are not applicable to the SIP submittal under review in this document. There are no primary or secondary national standards for GHGs. § 51.113 Reserved Not applicable. § 51.114 Emissions Data and Projections Requirements found in § 51.114 are not applicable to the SIP submittal under review in this document. Revisions to an existing, SIP-approved PSD program do not need to provide a detailed emission inventory and summary of projected emission levels after the implementation of control strategies. § 51.115 Air Quality Data and Projections Requirements found in § 51.115 are not applicable to the SIP submittal under review in this document. Revisions to an existing, SIP-approved PSD program do not need to include data on existing air quality or summarize expected air quality impacts from the implementation of control strategies. § 51.116 Data Availability

The State must make available to the public all data and calculations used in the preparation of each plan or plan revision.

Each plan must provide for public availability of emission data reported by source owners or operators. Requirements found in § 51.116 are applicable to the SIP submittal under review in this document.

The NMED provided the public the opportunity to participate in stakeholder meetings in the rulemaking development process, and the public received comment periods on the proposed plan.

§ 51.117 Additional provisions for lead Requirements found in § 51.117 are not applicable to the SIP submittal under review in this document. The revisions to the PSD program under review in this document do not revise the ability to permit lead under the existin g PSD program. § 51.118 Stack Height Provisions Requirements found in § 51.118 are not applicable to the SIP submittal under review in this document. The revisions to the PSD program for GHGs do not revise the NM SIP stack height provisions; nor are there good engineering stack height provisions for GHG permitting. § 51.119 Intermittent Control Systems Requirements found in § 51.119 are not applicable to the SIP submittal under review in this document.

### 12 The revisions to the NM PSD program to adopt and implement the GHG Tailoring Rule do not need intermittent control systems. § 51.120 Requirements for State Implementation Plan Revisions relating to Motor Vehicles Requirements found in § 51.120 are not applicable to the SIP submittal under review in this document. The revisions to the PSD program to adopt and implement the GHG Tailoring Rule are not related to the part 51 requirements for SIP revisions relating to motor vehicles. § 51.121 Findings and requirements for submission of State Implementation Plan Revisions relating to emissions of oxides of nitrogen Requirements found in § 51.121 are not applicable to the SIP submittal under review in this document. § 51.121 establishes the requirements for the NO X SIP Call; New Mexico was not subject to the NOx SIP Call. § 51.122 Emissions reporting requirements for SIP revisions relating to budgets for NO X emissions. Requirements found in § 51.122 are not applicable to the SIP submittal under review in this document. § 51.122 establishes the emission reporting requirements for the NO X SIP Call; New Mexico was not subject to the NOx SIP Call. § 51.123 Findings and requirements for submission of State Implementation Plan Revisions relating to Emissions of Oxides of Nitrogen pursuant to the Clean Air Interstate Rule Requirements found in § 51.123 are not applicable to the SIP submittal under review in this document. § 51.123 establishes the requirements for the NOx Annual and Ozone season programs for the Clean Air Interstate Rule (CAIR). New Mexico was not subject to CAIR. § 51.124 Findings and requirements for submission of State Implementation Plan Revisions relating to Emissions of Sulfur Dioxide pursuant to the Clean Air Interstate Rule Requirements found in § 51.124 are not applicable to the SIP submittal under review in this document. § 51.124 establishes the program requirements for the CAIR SO 2 Programs. New Mexico was not subject to CAIR. § 51.125 Emissions reporting requirements for SIP revisions relating to budgets for SO 2 and NO X emissions. Requirements found in § 51.125 are not applicable to the SIP submittal under review in this document. § 51.125 establishes the emission reporting requirements for the CA IR NOx and SO2 trading programs. New Mexico was not subject to CAIR. Subpart H – Prevention of Air Pollution Emergency Episodes Requirements found in 51, Subpart H are not applicable to the SIP submittal under review in this document. The revisions to the NM PSD program are not part of the air pollution emergency episode plan. Subpart I – Review of New Sources and Modifications Requirements found in §51.166 – Prevention of Significant Deterioration do apply to the revisions submitted in this SIP submittal. Further analysis of how the revisions address Subpart I requirements is provided in the following subsection of this document, II.A.3. Subpart J – Ambient Air Quality Surveillance Requirements found in 51, Subpart J are not applicable to the SIP submittal under review in this document. Ambient air quality surveillance is not part of the revisions to the PSD program to implement the GHG Tailoring Rule. Subpart K – Source Surveillance Subpart K – Source Surveillance § 51.210 Each plan must provide for monitoring the status of compliance with rules and regulations that set forth any portion of the control strategy. The SIP submittal under review in this document revises the existing, SIP-approved PSD program to adopt and implement the GHG Tailoring Rule

### 13 § 51.211 The plan must provide for legally enforceable procedures fo r requiring stationary sources to maintain records and report the following to the State:

• Information on the nature and amount of emissions from the stationary source; and

• Other information as nece ssary for the State to determine whether the sources are in compliance. thresholds. EPA has SIP-approved the NM PSD program as sufficient to demonstrate compliance under Subpart K.

§ 51.212 The plan must provide for periodic testing and inspection of stationary sources. Additionally, the plan must establish a system for detecting violations and include enforceable test methods. § 51.213 The plan must contain procedures for obtaining and maintaining data on actual emissions reductions achieved as a result of implementing transportation control measures. § 51.213 is not applicable to the SIP submittal under review in this document. The revisions to the PSD program are not concerned with implementing transportation control measures.

§ 51.214 The plan must contain legally enforceable procedures to require stationary sources subject to emission standards as part of the applicable plan to install, calibrate, maintain, and operate continuous emission monitoring systems. The SIP submittal under review in this document revises the existing, SIP-approved PSD program to adopt and implement the GHG Tailoring Rule thresholds. EPA has SIP-approved the NM PSD program as sufficient to demonstrate compliance under Subpart K and require stationary sources to use monitoring systems prescribed in their PSD permit.

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. NMED specified in the SIP submittal that the package was developed under the legal authority at Chapter 74, Article 1, NMSA1978, including specifically 74-1-8(A) NMSA 1978, and Article 2, NMSA 1978, 74-2-1 et seq., specifically 74-2-5(B) NMSA 1978. § 51.231 The provision of law or regulation which the State determines provides the authorities required must be specifically identified and copies must be submitted with the plan. NMED specified in the SIP submittal that the package was developed under the legal authority at Chapter 74, Article 1, NMSA1978, including specifically 74-1-8(A) NMSA 1978, and Article 2, NMSA 1978, 74-2-1 et seq., specifically 74-2-5(B) NMSA 1978. § 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 NM PSD SIP revisions identified the NMED as the agency responsible fo r implementing the SIP.

Subpart M – Intergovernmental Consultation

Each plan must identify organizations by title that will participate in the development, implementation, and enforcement of the plan. The NM PSD SIP revision identified the NMED as the agency responsible for developing, implementing, and enforcing the SIP.

Subpart N – Compliance Schedule The revisions to the PSD program included in this SIP submittal do not establish a compliance schedule for any NAAQS, and therefore do not need to address the requirements of 40 CFR part 51, subpart N. Subpart O – Miscellaneous Plan Content Requirements The SIP submittal package states that NMED finds the revisions economically reasonable. If the

### 14 NMED fails to adopt the revisions to the PSD program, then EPA would issue a federal implementation plan that would result in a dual permitting system. Subpart P – Protection of Visibility The revisions to the NM PSD program to adopt and implement the GHG Tailoring Rule thresholds are not part of New Mexico’s plan to protect visibility. Subpart Q – Reports The revisions to the NM PSD program to adopt and implement the GHG Tailoring Rule thresholds do not revise the existing reporting requirements for the emission inventory in the New Mexico SIP. Subpart R – Extensions Requirements found in 51, Subpart R are not applicable to the SIP submittal under review in this document. The revisions to the NM PSD program are not 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 under review in this document. The SIP submittal revises the NM PSD program to adopt and implement the GHG Tailoring Rule thresholds and is not related to an inspection/maintenance program. 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. This SIP submittal revises the NM PSD program to adopt and implement the GHG Tailoring Rule thresholds and does not interfere with the transportation conformity budgets developed for each nonattainment and maintenance area pursuant to subpart T. Subpart U – Economic Incentive Programs 40 CFR part 51, subpart U establishes requirements for statutorily 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 revisions to the NM PSD program submitted in this SIP submittal. 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 under review in this document. This SIP submittal revises the NM PSD program to adopt and implement the GHG Tailoring Rule thresholds 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 for the implementation of the 8-hour ozone NAAQS. The submitted revisions to the NM PSD program are to adopt and implement the GHG Tailoring Rule thresholds and are not concerned with the 8-hour ozone NAAQS.

### 15 A. Evaluation of the D ecember 1, 2010 SIP Submittal

3. Evaluation of the December 1, 201 0 Revisions to the New Mexico PSD Program with respect to the federal PSD requirements and the existing SIP

Table II-A3 provides a line-by-line compar ison of the submitted revisions to the New Mexico PSD program with the federal GHG Tailoring Rule requirements at 40 CFR 52.21. The existing SIP-approved NM PSD program is provided in the left column to demonstrate changes between the SIP-appr oved language and the revisions submitted on December 1, 2010. Note that only definitions with revisions have been provided below.

Table II-A3: Analysis of GHG Tailor ing Rule Requirements at 40 CFR 52.21

New Mexico PSD SIP SIP-Approved by EPA on November 26, 2010 (75 FR 72688).

20.2.74.7 NMAC as submitted by NMED on June 11, 2009; effective August 31, 2009. NMAC Revisions 11/10/10 Effective 1/1/11 20.2.74.7 NMAC - Definitions 40 CFR part 52.21 GHG Tailoring Rule Requirements Analysis of Submitted Revisions to 20.2.74.7 NMAC

B. “Actual Emissions” means the actual rate of emissions of a regulated new source review pollutant from an emissions unit, as determined in accordance with Paragraphs (2) through (4) of this subsection. (1) This definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a PAL under 20.2.74.320 NMAC. Instead, Subsections G and AQ of this section shall apply for those

purposes. **** B. “Actual Emissions” means the actual rate of emissions of a regulated new source review pollutant from an emissions unit, as determined in accordance with Paragraphs (2) through (4) of this subsection. (1) This definition hall not apply for calculating whether a significant emissions increase has occurred, or for establishing a PAL under 20.2.74.320 NMAC. Instead, Subsections G and AQ AR of this section shall apply for those

purposes.   No federal counterpart to review for the GHG Tailoring Rule. No issues with this revision. Internal references are consistent after the renumbering.

This revision renumbers because of the addition of the definition for GHGs.

** **   ** **   K. “Best Available Control Technology (BACT)” means an emissions limitation (including a visible emission standard) K. “Best Available Control Technology (BACT)” means an emissions limitation (including a visible emission standard) No federal counterpart to review for the GHG Tailoring Rule. Not related to GHG Tailoring Rule.

No concerns with this revision. Changes the reference to department

### 16 based on the maximum degree of reduction for each regulated pollutant which would be emitted from any proposed major stationary source or major modification, which the secretary determines is achievable on a case-by-case basis. This determination will take into account energy, environmental, and economic impacts and other costs. The determination must be achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning, clean fuels, or treatment of innovative fuel combustion techniques for control of such pollutants. In no event shall application of BACT result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR Parts 60 and 61. If the secretary determines that technological or economic limitations on the application of

measurement methodology to a particular emission unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combination thereof may be prescribed instead to satisfy the requirement for the application of BACT. Such standard based on the maximum degree of reduction for each regulated pollutant which would be emitted from any proposed major stationary source or major modification, which the secretary determines is achievable on a case-by-case basis. This determination will take into account energy, environmental, and economic impacts and other costs. The determination must be achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning, clean fuels, or treatment of innovative fuel combustion techniques for control of such pollutants. In no event shall application of BACT result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR Parts 60 and 61. If the secretary department determines that technological or economic limitations on the application of

measurement methodology to a particular emission unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combination thereof may be prescribed instead to satisfy the requirement for the application of BACT. Such standard rather than secretary. The NMED has the responsibility for correctly identifying responsible parties in the regulations.

### 17 shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice, or operation, and shall provide for compliance by means which achieve equivalent results. shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice, or operation, and shall provide for compliance by means which achieve equivalent results. ** **   ** **   No definition for GHG in the existing SIP. Y. “Greenhouse Gas” for the purpose of this part is defined as the aggregate group of the following six gases: carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. 52.21(b)** * (49) Subject to regulation *** (i). Greenhouse gases (GHGs) , the air pollutant defined in 86.1818-12(a) of this chapter as the aggregate group of six GHGs: carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, shall not be subject to regulation except as provided in paragraphs (b)(49)(iv) through (v) of this section. The proposed NMAC revision at 20.2.74.7(Y) supports the federal definition of GHGs at 40 CFR 52.21(b)(49)(i).

No issues with this proposed revision.

Y. “High Terrain”   AP. “Project” ** *** No substantive changes other than renumbering where definition Y becomes Z, carried through to definition AP which becomes definition AQ due to the addition of the GHG definition. No federal counterpart to review for the GHG Tailoring Rule. No substantive changes to existing SIP-approved PSD program other than renumbering to account for newly adopted definition of GHG.

AQ. “Projected actual emissions”... AR . AQ. “Projected actual emissions”... (1) no change (2) no change (3) no change (4) in lieu of using the method set out in Paragraphs (1) through (3) of this subsection, may elect to use the emissions unit’s potential to emit, in tons No federal counterpart to review for the GHG Tailoring Rule. Not related to GHG Tailoring Rule.

Changes made to maintain internal consistency with renumbering.

No issues with this revision.

### 18 per year, as defined in Subsection AQ AR of this section. AR. “Regulated new source review pollutant”, for purposes of this part, means the following: (1) Any pollutant for which a NAAQS has been promulgated and any constituents or precursors for such pollutants identified by the administrator; (2) Any pollutant that is subject to any standard promulgated under section 111 of the act; (3) Any class I or II substance subject to a standard promulgated under or established by title VI of the act;

or (4) Any pollutant that otherwise is subject to regulation under the act; except that an or all hazardous air pollutants either listed in section 112 of the act or added to the list pursuant to section 112(b)(2) of the act, which have not been delisted pursuant to section 112(b)(3) of the act, are not regulated new source review pollutants unless the listed hazardous air pollutant is also regulated as a constituent or precursor of a general pollutant listed under section 108 of the act. AS. AR. “Regulated new source review pollutant”, for purposes of this part, means the following: (1) Any pollutant for which a NAAQS has been promulgated and any constituents or precursors for such pollutants identified by the administrator; (2) Any pollutant that is subject to any standard promulgated under section 111 of the act; (3) Any class I or II substance subject to a standard promulgated under or established by title VI of the act;

or (4) Any pollutant that otherwise is subject to regulation under the act; except that an or all hazardous air pollutants either listed in section 112 of the act or added to the list pursuant to section 112(b)(2) of the act, which have not been deliste d pursuant to section 112(b)(3) of the act, are not regulated new source review pollutants unless the listed hazardous air pollutant is also regulated as a constituent or precursor of a general pollutant listed under section 108 of the act any 52.21(b)*** (50)*** (iv) Any pollutant that otherwise is subject to regulation under the Act as defined in paragraph (b)(49) of this section. (v) Notwithstanding paragraphs (b)(50)(i) through (iv) of this section, the term regulated NSR pollutant shall not include any or all hazardous air pollutants either listed in section 112 of the Act, or added to the list pursuant to section 112(b)(2) of the Act, and which have not been delisted pursuant to section 112(b)(3) of the Act, unless the listed hazardous air pollutant is also regulated as a constituent or precursor of a general pollutant listed under section 108 of the Act. The proposed NMAC revisions to 20.2.74.7 (AS)(1) support the federal revisions to 40 CFR 52.21(b)(50).

No issues with this revised language.

### 19 pollutant that otherwise is subject to regulation under the Act as defined in Subsection AZ of this section. (5) Notwithstanding paragraphs (1) through (4) of Subsection AS of this section, the term “regulated NSR pollutant” shall not include any or all hazardous air pollutants either listed in section 112 of the act ,or added to the list pursuant to section 112(b)(2) of the act, and which have not been delisted pursuant to section 112(b)(3) of the act, unless the listed hazardous air pollutant is also regulated as a constituent or precursor of a general pollutant listed under section 108 of the act. AS. “Replacement Unit”   AV. “Significant” ** *** No substantive changes other than renumbering Definition AS becomes AT, renumbering carried through definition AV which becomes AW. No federal counterpart to review for the GHG Tailoring Rule. No substantive changes to existing SIP-approved PSD program other than renumbering to account for newly adopted definition of GHG.

No issues with these revisions. AW. “Significant emissions increase” means, for a regulated new source review pollutant, an increase in emissions that is significant (as defined in Subsection AV of this section) for that pollutant. AX. AW. “Significant emissions increase” means, for a regulated new source review pollutant, an increase in emissions that is significant (as defined in Subsection AV AW of this section) for that pollutant. No federal counterpart to review for the GHG Tailoring Rule. Not related to GHG Tailoring Rule.

Changes made to maintain internal consistency with renumbering and to account for newly adopted definition of GHG.

No issues with this revision.

### 20 AX. “Stationary source” AY . AX. “Stationary source”

No substantive changes other than renumbering from AX to AY. No federal counterpart to review for the GHG Tailoring Rule. No substantive changes to existing SIP-approved PSD program other than renumbering to account for newly adopted definition of GHG.

No issues with these revisions. No definition for subject to regulation in the existing SIP-approved PSD program. AZ. “Subject to regulation” means, for any air pollutant, that the pollutant is subject to either a provision inthe act, or a nationallyapplicable regulation codified by the Administrator in subchapter C of 40 CFR Chapter I, that requires actual control of the quantity of emissions of that pollutant, and that such a control requirement has taken effect and is operative to control, limit or restrict the quantity of emissions of that pollutant released from the regulated activity. Except that: (1) “greenhouse gases (GHGs)”, shall not be subject to regulation except as provided in paragraphs AZ(4) and (5) of this section. (2) For purposes of paragraphs (3) through (5) of Subsection AZ of this section, the term tons per year “CO2 equivalent emissions (CO2e)” shall represent an amount of GHGs emitted, and shall be computed as follows: (a) Multiplying the mass amount of 52.21(b)*** (49) Subject to regulation means, for any air pollutant, that the pollutant is subject to either a provision in theCAA, or a nationallyapplicable regulation codified by the Administrator in subchapter C of this chapter, that requires actual control of the quantity of emissions of that pollutant, and that such a control requirement has taken effect and is operative to control, limit or restrict the quantity of emissions of that pollutant released from the regulated activity. Except that: (ii). Greenhouse gases (GHGs) , the air pollutant defined in 86.1818-12(a) of this chapter as the aggregate group of six GHGs: carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, shall not be subject to regulation except as provided in paragraphs (b)(49)(iv) through (v) of this section. (iii). For purposes of paragraphs (b)(49)(iii) through (v) of this section, The proposed NMAC revisions to 20.2.74.7 (AZ) support the federal revisions to 40 CFR 52.21(b)(49) for Subject to regulation.

No issues with this revised language.

Specifically:

The proposed NMAC revisions to 20.2.74.7(AZ)(1) support the federal revisions to 40 CFR 52.21(b)(49)(i).

The proposed NMAC revisions to 20.2.74.7 (AZ)(2) support the federal revisions to 40 CFR 52.21(b)(49) (ii).

The proposed NMAC revisions to 20.2.74.7 (AZ)(2)(a) support the federal revisions to 40 CFR 52.21(b)(49) (ii)(a).

The proposed NMAC revisions to 20.2.74.7 (AZ)(2)(b) support the federal revisions to 40 CFR 52.21(b)(49) (ii)(b).

The proposed NMAC revisions to 20.2.74.7 (AZ)(3) support the federal revisions to 40 CFR 52.21(b)(49) (iii).

The proposed NMAC

### 21 emissions (tons per year), for each of the six greenhouse gases in the 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. (b) Sum the resultant value from Subparagraph (a) of Paragraph (2) of Subsection AZ of this section for each gas to compute a tons per year CO2e. (3) The term “emissions increase” as used in paragraphs (4) and (5) of Subsection AZ of this section shall mean that both a significant emissions increase (as calculated using the procedures in Subsection D of 20.2.74.200 NMAC) and a significant net emissions increase (as defined in Subsections AL, AW, and AX of 20.2.74.7 NMAC) occur. For the pollutant GHGs, an emissions increase shall be based on tons per year CO2e, and shall be calculated assuming the pollutant GHGs is a regulated NSR pollutant, and the term tpy CO2 equivalent emissions (CO2e) shall represent an amount of GHGs emitted, and shall be computed as follows:

a. multiplying the mass amount of emissions (tpy), for each of the six GHGs in the pollutant GHGs, by the gas’s associated global warming potential published at Table A-1 to subpart A of part 98 of this chapter – Global Warming Potentials. b. Sum the resultant value from paragraph (b)(49)(ii)(a) of this section for each gas to compute a tpy CO2e. (iv). The term emissions increase as used in paragraphs (b)(49)(iv) through (v) of this section shall mean that both a significant emissions increase (as calculated using the procedures in paragraph (a)(2)(iv) of this section) and a significant net emissions increase (as defined in paragraphs (b)(3) and (b)(23) of this section) occur. revisions to 20.2.74.7 (AZ)(4) support the federal revisions to 40 CFR 52.21(b)(49) (iv).

The proposed NMAC revisions to 20.2.74.7 (AZ)(4)(a) support the federal revisions to 40 CFR 52.21(b)(49) (iv)(a).

The proposed NMAC revisions to 20.2.74.7 (AZ)(4)(b) support the federal revisions to 40 CFR 52.21(b)(49) (iv)(b).

The proposed NMAC revisions to 20.2.74.7 (AZ)(5) support the federal revisions to 40 CFR 52.21(b)(49) (v).

The proposed NMAC revisions to 20.2.74.7 (AZ)(5)(a) support the federal revisions to 40 CFR 52.21(b)(49) (v)(a).

The proposed NMAC revisions to 20.2.74.7 (AZ)(5)(b) support the federal revisions to 40 CFR 52.21(b)(49) (v)(b).

The proposed NMAC revisions to 20.2.74.7(AZ)(6) have no federal counterpart. However, this provision is approvable because it limits NMED ability to enforce the definition of “subject to regulation” to the extent that EPA is limited if the PSD or Title V portions of the GHG Tailoring Rule are stayed or invalidated by a federal court.

### 22 “significant” is defined as 75,000 tons per year CO2e instead of applying the value in table 2 of 20.2.74 NMAC. (4) Beginning January 2, 2011, the pollutant GHGs is subject to regulation if: (a) The stationary source is a new major stationary source for a regulated NSR pollutant that is not GHGs, and also will emit or will have the potential to emit 75,000 tons per year CO2e or

more; or (b) The stationary source is an existing major stationary source for a regulated NSR pollutant that is not GHGs, and also will have an emissions increase of a regulated NSR pollutant that is not GHGs, and also will have an emissions increase of 75,000 tons per year CO2e or more ; and, (5) Beginning July 1, 2011, in addition to the provisions in Paragraph (4) of this subsection, the pollutant GHGs shall also be subject to regulation: (a) At a new stationary source that will emit or have the For the pollutant GHGs, an emissions increase shall be based on tpy CO2e, and shall be calculated assuming the pollutant GHGs is a regulated NSR pollutant, and “significant” is defined as 75,000 tpy CO2e instead of applying the value in paragraph (b)(23)(ii) of this section. (v). Beginning January 2, 2011, the pollutant GHGs is subject to regulation if:

a. The stationary source is a new major stationary source for a regulated NSR pollutant that is not GHGs, and also will emit or will have the potential to emit 75,000 tons

per year CO2e or

more; or b. The stationary source is an existing major stationary source for a regulated NSR pollutant that is not GHGs, and also will have an emissions increase of a regulated NSR pollutant that is not GHGs, and also will have

### 23 potential to emit 100,000 tons per year CO2e;

or (b) At an existing stationary source that emits or has the potential to emit 100,000 tons per year CO2e, when such stationary

source undertakes a physical change or change in the method of operation that will result in an emissions increase of 75,000 tons per year CO2e or

more. (6) If a federal court stays, invalidates, or otherwise renders unenforceable by the US EPA, in whole or in part, the prevention of significant deterioration and Title V greenhouse gas tailoring rule (75 FR 31514, June 3, 2010), the definition “subject to regulation” shall be enforceable by the Department only to the extent that it is enforceable by US EPA. an emissions increase of 75,000 tons

per year CO2e or more ; and, (vi). Beginning July 1, 2011, in addition to the provisions in paragraph (b)(49(iv) of this section, the pollutant GHGs shall also be subject to regulation

a. At a new stationary source that will emit or have the potential to emit 100,000 tons per year CO2e; or b. At an existing stationary source that emits or has the potential to emit 100,000 tons

per year CO2e, when such stationary

source undertakes a physical change or change in the method of operation that will result in an emissions increase of 75,000 tons

per year CO2e or

more. AY. “Temporary Source”   BA. “Volatile Organic Compound” ** *** No substantive changes other than renumbering Definition AY becomes BA, renumbering carried through No federal counterpart to review. No substantive changes other than renumbering.

No issues with these proposed revisions.

### 24 definition BA which becomes BC.



### The above line-by-line comparison of the proposed revisions to NMAC 20.2.74.7 to the GHG Tailoring Rule requirements demonstrat es that the proposed revisions are substantively identical (with the excepti on of renumbering to maintain internal consistency with the remainder of the NM AC definitions) to the GHG Tailoring Rule requirements at 40 CFR 52.21(b)(49) and (b)(50).

Table II-A4: Analysis of Remainin g Revisions to the NM PSD Program

New Mexico PSD SIP SIP-Approved by EPA on November 26, 2010 (75 FR 72688).

20.2.74.9 NMAC as submitted by NMED on June 11, 2009; effective August 31, 2009. Draft NMAC Revisions 8/27/10 20.2.74.9 Documents 40 CFR part 52.21 Analysis of Submitted Revisions to 20.2.74.9 NMAC

Documents cited in this Part may be viewed at the New Mexico Environment Department, Air Quality Bureau, Harold Runnels Building, 1190 St. Francis Drive, Santa Fe, NM 87503 [2048 Galisteo St., Santa Fe, NM 87505]. Documents cited in this Part may be viewed at the New Mexico Environment Department, Air Quality Bureau, Runnels Building, 1190 Saint Francis Drive, Santa Fe, NM 87505 [2048 Galisteo Street, Santa Fe, NM 87505 1301 Siler Rd., Bldg. B, Santa Fe, NM 87507 ]. No federal counterpart to review. Not related to GHG Tailoring Rule

No issues with this proposed revision. NMED has the responsibility to maintain up-to-date addresses in their

programs.

New Mexico PSD SIP SIP-Approved by EPA on November 26, 2010 (75 FR 72688).

20.2.74.200 NMAC as submitted by NMED on June 11, 2009; effective August 31, 2009. Draft NMAC Revisions 8/27/10 20.2.74.200 Applicability 40 CFR part 52.21 Analysis of Submitted Revisions to 20.2.74.200 NMAC

D. Applicability procedures. (1) Except as otherwise provided in Subsections E and F of this section, and consistent with the definition of major modification contained in 20.2.74.7 NMAC, a D. Applicability procedures. (1) Except as otherwise provided in Subsections E and F of this section, and consistent with the definition of major modification contained in 20.2.74.7 NMAC, a No substantive change made. Not related to GHG Tailoring Rule.

No substantive changesmade to existing SIPapproved PSD program language. Changes made to maintain internal consistency

### 25 project is a major modification for a regulated new source review pollutant if it causes two types of emissions increases – a significant emissions increase (as defined in 20.2.74.7 NMAC), and a significant net emissions increase (as defined in Subsections AK and AV of 20.2.74.7 NMAC). The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase, then the project is a major modification only if it also results in a significant net emissions increase. project is a major modification for a regulated new source review pollutant if it causes two types of emissions increases – a significant emissions increase (as defined in 20.2.74.7 NMAC), and a significant net emissions increase (as defined in Subsections AK AL and AV AW of 20.2.74.7 NMAC). The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase, then the project is a major modification only if it also results in a significant net emissions increase. with renumbering of 20.2.74.7 NMAC.

No issues with this proposed revision.

New Mexico PSD SIP SIP-Approved by EPA on November 26, 2010 (75 FR 72688).

20.2.74.300 NMAC as submitted by NMED on June 11, 2009; effective August 31, 2009. Draft NMAC Revisions 8/27/10 20.2.74.300 Obligations of Owners or Operators of Sources 40 CFR part 52.21 Analysis of Submitted Revisions to 20.2.74.300 NMAC

E. The following specific provisions apply to projects at existing emissions units at a major stationary source (other than projects at a source with a PAL) in circumstances where the owner or operator elects to use the method specified in Paragraphs (1) through (3) of Subsection AQ of 20.2.74.7 NMAC for calculating projected actual emissions. (1) Before beginning actual construction of the project, the owner or operator shall document and maintain a record of E. The following specific provisions apply to projects at existing emissions units at a major stationary source (other than projects at a source with a PAL) in circumstances where the owner or operator elects to use the method specified in Paragraphs (1) through (3) of Subsection AQ AR of 20.2.74.7 NMAC for calculating projected actual emissions. (1) Before beginning actual construction of the project, the owner or operator shall document and maintain a record of No substantive change made. Not related to GHG Tailoring Rule.

No substantive changesmade to existing SIPapproved PSD program language. Changes made to maintain internal consistency with renumbering of 20.2.74.7 NMAC.

No issues with this proposed revision.

### 26 the following information: (a) no change (b) no change (c) a description of the applicability test used to determine that the project is not a major modification for any regulated new source review pollutant, including baseline actual emissions, the projected actual emissions, the amount of emissions excluded under Paragraph (3) of Subsection AQ of 20.2.74.7 NMAC and an explanation for why such amount was excluded, and any netting calculations if applicable. the following information: (a) no change (b) no change (c) a description of the applicability test used to determine that the project is not a major modification for any regulated new source review pollutant, including baseline actual emissions, the projected actual emissions, the amount of emissions excluded under Paragraph (3) of Subsection AQ AR of 20.2.74.7 NMAC and an explanation for why such amount was excluded, and any netting calculations if applicable. New Mexico PSD SIP SIP-Approved by EPA on November 26, 2010 (75 FR 72688).

20.2.74.320 NMAC as submitted by NMED on June 11, 2009; effective August 31, 2009. Draft NMAC Revisions 8/27/10 20.2.74.320 Actuals Plantwide Applicability Limits (PALs) 40 CFR part 52.21 Analysis of Submitted Revisions to 20.2.74.320 NMAC

(A)(3) Except as provided under Subparagraph (c) of Paragraph 1 of this subsection, a major stationary source shall continue to comply with all applicable federal or state requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL. (A)(3) Except as provided under Subparagraph (c) of Paragraph 1 2 of this subsection, a major stationary source shall continue to comply with all applicable federal or state requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL. No substantive change made. Correcting internal cross-reference. Not related to GHG Tailoring Rule.

No substantive changesmade to existing SIPapproved PSD program language. Changes made to correct internal cross-reference.

No issues with this proposed revision.

  ** **   ** ** (B)((3) Small emissions unit means an emission unit that emits or has the potential to emit the PAL pollutant in an amount less than the (B)((3) Small emissions unit means an emission unit that emits or has the potential to emit the PAL pollutant in an amount less than the No substantive change made. Correcting internal cross-reference. Not related to GHG Tailoring Rule.

No substantive changesmade to existing SIPapproved PSD program

### 27 significant level for that PAL pollutant, as defined in Subsection AV of 20.2.74.7 NMAC or in the act, whichever is lower. significant level for that PAL pollutant, as defined in Subsection AV AW of 20.2.74.7 NMAC or in the act, whichever is lower. language. Changes made to maintain internal consistency with renumbering of 20.2.74.7 NMAC.

No issues with this proposed revision.

  ** **   ** ** (B)(11) Significant emissions unit means an emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level (as defined in Subsection AV of 20.2.74.7 NMAC or in the act, whichever is lower) for that PAL pollutant, but less than the amount that would qualify the unit as a major emission unit as defined in Paragraph (4) of this subsection. (B)(11) Significant emissions unit means an emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level (as defined in Subsection AV AW of 20.2.74.7 NMAC or in the act, whichever is lower) for that PAL pollutant, but less than the amount that would qualify the unit as a major emission unit as defined in Paragraph (4) of this subsection. No substantive change made. Correcting internal cross-reference. Not related to GHG Tailoring Rule.

No substantive changesmade to existing SIPapproved PSD program language. Changes made to maintain internal consistency with renumbering of 20.2.74.7 NMAC.

No issues with this proposed revision.

  ** **   ** ** (F)(1) Except as provided in Paragraph (2) of this subsection, the actuals PAL level for a major stationary source shall be established as the sum of the baseline actual emissions (as defined in 20.2.74.7 NMAC) of the PAL pollutant for each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL pollutant under Subsection AV of 20.2.74.7 NMAC or under the act, whichever is lower. (F)(1) Except as provided in Paragraph (2) of this subsection, the actuals PAL level for a major stationary source shall be established as the sum of the baseline actual emissions (as defined in 20.2.74.7 NMAC) of the PAL pollutant for each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL pollutant under Subsection AV AW of 20.2.74.7 NMAC or under the act, whichever is lower. No substantive change made. Correcting internal cross-reference. Not related to GHG Tailoring Rule.

No substantive changesmade to existing SIPapproved PSD program language. Changes made to maintain internal consistency with renumbering of 20.2.74.7 NMAC.

No issues with this proposed revision.

  ** **   ** ** N(2) Deviation report. The major stationary

source owner or operator shall promptly submit reports of any deviations or N(2) Deviation report. The major stationary

source owner or operator shall promptly submit reports of any deviations or No substantive change made. Correcting internal cross-reference. Not related to GHG Tailoring Rule.

No substantive changesmade to existing SIPapproved PSD program

### 28 exceedance of the PAL requirements, including periods where no monitoring is available. A report submitted pursuant to 40 CFR 70.6(a)(3)(iii)(B) shall satisfy this reporting requirement. The deviation reports shall be submitted within the time limits prescribed by the applicable program implementing 40 CFR 70.6(a)(3)(iii)(B). The reports shall contain the following information: No Change exceedance of the PAL requirements, including periods where no monitoring is available. A report submitted pursuant to 40 CFR 70.6(a)(3)(iii)(B) Paragraph (2) of Subsection E of 20.2.70.302 NMAC shall satisfy this reporting requirement. The deviation reports shall be submitted within the time limits prescribed by the applicable program implementing 40 CFR 70.6(a)(3)(iii)(B) Paragraph (2) of Subsection E of 20.2.70.302 NMAC

. The reports shall contain the following information: No Change language. Changes made to correct internal cross-reference.

No issues with this proposed revision.



### The above analysis demonstr ates that NMED has revise d the remainder of the PSD program to correctly cross-reference th e proposed definition revisions at 20.2.74.7 NMAC.

### 29 A. Evaluation of the D ecember 1, 2010 SIP Submittal

4. Evaluation of the December 1, 2010 SI P Submittal with respect to section 110(l) of the CAA

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.

The revisions to the New Mexico PSD program to adopt and implement the GHG Tailoring Rule thresholds will not interfere with attainment or reasonable further progress or any other applicable requirement of th e Act. New Mexico is adopting provisions substantively identical to the federal PSD requirements for the regulations of GHGs.

### 30 III. Conclusion

The technical analysis provided in the preced ing sections has compared the applicable sections of the CAA and 40 CFR Parts 51 and 52 to NMED’s December 1, 2010, proposed revisions to the PSD SIP, enacted at 20.2.74.7, 20.2.74.9, 20.2.74.200, 20.2.74.300, and 20.2.74.320 NMAC.

This analysis found that the adoption of the revisions to sections 20.2.74.7, 20.2.74.9, 20.2.74.200, 20.2.74.300, and 20.2.74.320 NMAC submitted on December 1, 2010, is consistent with the CAA and 40 CFR Parts 51 and 52; specifically, EPA finds that the proposed revisions satisfy the requirements of the GHG Tailoring Rule. Therefore, it is recommended that a proposed approval of the NM PSD SIP submitted on December 1, 2010, be published.