### UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

REGION 1 5 POST OFFICE SQUARE, SUITE 100 BOSTON, MA 02109

- 3912

Memorandum

Date: March 23, 2015

Subject: TECHNICAL SUPPORT DOCUMENT

– State Implementation plan (SIP) Amendment

revising New Hampshire ’s PART Env

- A 618 “ Nonattainment New Source Review ,”

PART Env

- A 619 “ Prevention of Significant Deterioration ” and PART Env

- A 101
“Permit Definition s ” rules

From: Brendan McCahill, Environmental Engineer

Air Permits, Toxics and Indoor Programs Unit

To: Ida McDonnell, Manager

Air Permits, Toxics and Indoor Programs Unit

INTRODUCTION

On November 15 , 2012, the New Hampshire Department of Environmental S ervices (NH DES)

submitted S tate Implementation Plan (S IP ) amendment s that revise d several portions of the state’s

a ir permitting program including PART Env

- A 618, “Nonattainment New Source Review

, ” PART

E nv

- A 619

, “ Prevention of Significant D eterioration ” program and PART Env

- A 101

, “ Permit

D efinitions .” Among other things , the revisions make the NH DES’s NNSR and PSD program rules

consistent with the federal New Source Review regulations. The amendment s also make changes to two permit definitions identi fied in NH DES’s PART Env

- A 101, “Permit definition” rule that are consistent with federal Clean Air Act (CAA) requirements.

EPA is proposing three actions in this notice. First, EPA is proposing to conditionally approve revisions to the New Hampshire P SD program under PART Env

- A 619, “Prevention of Significant Deterioration.” EPA originally proposed approval of the State’s PSD program revisions on January 21, 2015. See 80 FR 2860. EPA is reproposing to approve the State’s PSD program as a conditional approval because subsequent to EPA’s January 21, 2015 Federal Register (FR) notice, EPA concluded that New Hampshire’s regulations did not contain a provision, consistent with 4 0 CFR 51.166(q)(2)(iv), requiring notice of a draft PSD permit to state air ag encies whose lands may be affected by emissions from the permitted source. In a March 20, 2015 letter from New Hampshire

, the State committed to revise its regulations, no later than one year from EPA’s notice of a final2

conditional approval, to include the additional public notice procedure in its regulations and to submit the revision to EPA for approval into the SIP.

EPA is also proposing to conditionally approve revisions to New Hampshire’s NNSR program SIP submitted on November 15, 2012. The appro val is conditioned on New Hampshire submitting in a timely manner two requirements missing from its rules: 1) provisions that meet the federal regulations for “reasonable possibility,” applicable to projects at major stationary sources that are not major m odifications based on the actual

- to

- projected actual test but have a “reasonable possibility” of resulting in a significant emission increase; and 2) provisions stating that approval to construct shall not relieve any owner or operator of the responsibilit y to comply fully with applicable provisions of the plan and any other requirements under local, state or federal law. In a letter dated March 20, 2015, the NH DES committed to revising its NNSR regulations to include the requirements above and to submitt ing the revised regulations to EPA for approval into the SIP.

Finally, EPA is proposing to approve New Hampshire’s July 1, 2003 SIP revision to revis e two
definitions included in PART Env

- A 101 Permit definitions: 1) “minor permit amendment,” and 2)

“s tate permit to operate.” These revisions are intended to clarify the State’s definitions relevant to certain permitting transactions and to render them consistent with the requirements in the State’s permitting rules.

BACKGROUND

Section 110(a)(1) of the CAA requires each state to submit to EPA a plan which provides for the implementation, maintenance and enforcement of each NAAQS. These plans, generally referred to as the state implementation plan or SIP, include numerous air qua lity monitoring, emission inventory, and emission control requirements designed to obtain and maintain the NAAQS within the state. The CAA requires states to adopt SIP revisions into the state regulations and to submit the revisions to EPA for approval. S ection 110(l) of the CAA states that EPA shall not approve a revision to the SIP if the revision would interfere with any applicable requirement concerning attainment (of the NAAQS) and reasonable further progress (as defined in CAA section 7501) or any

ot her requirement of the CAA

The CAA requires new major sources and major modifications to existing major sources to obtain an air permit before c ommencing construction. The PSD program is the set of regulations specifying the minimum permit requirements for a new major source or major modification of a major source in areas that are in attainment of the national ambient air quality standards (NAAQS).

The PSD Program include s two major elements: (1) requirements for sources to conduct an air quality analy sis to demonstrate the new emissions would not cause or contribute to a violation of either a NAAQS or applicable PSD increment ; and (2) requirements for sources to apply Best Available Control Technology which is derived on a case

- by

- case basis considerin g energy
, environmental and economic impacts to determine the emission reduction achievable from the

source.3

The N NSR rul e s are the set of regulations specifying the minimum permit requirements for a new major source or m ajor modification of a major source in areas that are in nonattainment of the national ambient air quality standards (NAAQS). The N NSR rules include two major elements : (1) requirements for sources to obtain emission reductions (“offsets”) from existing sources to ensur e

n ew source s do not interfere with state plans to achieve the NAAQS; and (2) requirements that sources apply lowest achievable emission rate (LAER) which is derived from the most stringent

emission limitation contained in any SIP or achieved in practice for that class or category of source.

EPA has made a number of important revisions to the federal PSD programs and NNSR rule since EPA last approved revisions to New Hampshire’s PSD and NNSR rules

. On December 31, 2002, EPA issued amendments to the Federal n onattainment NSR program that substantially changed the applicability requirements for the program. The FR notice for the final NSR Reform

rule at http://www.epa.gov/NSR/fr/20021231_80186.pdf p rovides a full description of the NSR

Reform amendments , the requirements for SIP submittals

, and the final amended Federal r ule for

N NSR “Permit Requirements” at 40 CFR 51.165 and Prevention of S ignificant Deterioration of air quality at 40 CFR 51.166

.

In addition, on October 17, 2006

, EPA finalized a new NAAQS for particulate matter less than 2.5 micrometers in diameter (PM 2.5 ). On May 16, 2008 , EPA issued Final Rules Governing the Implementation of NSR for Fine Particulate Matter . On October 20, 201 0 , EPA issued F inal Rule s to Establish Increments, SILs and SMC for Fine Particulate Matter.

EPA has since reconsidered its approach to regulate PM 2.5

. EPA is currently in the process of revising the N NSR rules to regulate all PM 2.5 precursors

. Regardless of these rulemaking s
, EPA

c onclude s that the current issues regarding the appropriate significant levels and offset requirements

for direct emissions of PM 2.5 and P M 2.5 precursors should not affect the approval of New Hampshire’s N NSR program. All areas of New Hampshire are currently at taining the PM 2.5 NAAQS and should continue at taining the NAAQS for the foreseeable future. As such, the NH

DES’s N NSR program does not apply to PM 2.5

.

Submittal s

PSD program submittal

EPA previously reviewed New Hampshire’s November 15, 2012 submittal to determine compliance with the federal PSD requirements in the TSD for EPA’s January 21, 2015 Federal Register that proposed to approve the state’s PSD program. E PA is reproposing to ap prove the State’s PSD program as a conditional approval because subsequent to EPA’s January 21, 2015 Federal Register notice, EPA concluded that New Hampshire’s regulations did not contain a provision, consistent with 4 0 CFR 51.166(q)(2)(iv), requiring not ice of a draft PSD permit to state air agencies whose lands may be affected by emissions from the permitted source. In a letter from New Hampshire dated March 20, 2015, the State committed to revise its regulations, no later than4

one year from EPA’s notic e of a final conditional approval, to include the additional public notice procedure in its regulations and to submit the revision to EPA for approval into the SIP.

NNSR submittal

New H ampshire’s November 15, 2012 submittal IBR s the federal definitions for its NNSR regulations contained in 40 CFR 51.165(a)(1) and (f)(2). The submittal also included revised

definitions to the terms “Baseline actual emissions” and “Reasonable period

. ” Finally, the submittal

included five additional definitions: “Emission offset,” “Emission offset ratio,” “Northeast Ozone Transport Region,” “Offset source,” and “Ozone season” that are not specifically defined in the federal regulations but that the state uses for purpose s of clarifying the State’s NNSR requirements.

EPA’s review of the November 15

, 2012 submittal identifie d two provisions requ ired for full approval that were missing : 1) provisions for “reasonable possibility” established in 40 CFR 51.165(a)(6) and (a)(7); and 2) provisions required under 40 CFR 51.16 5(a)(5)(i) providing that “[a]pproval to construct shall not relieve any owner or operator of the responsibility to comply fully with applicable provisions of the plan and any other requirements under local, State or Federal law.” These provisions will n eed to be submitted by the NH DES within 12 months of issuance of EPA’s proposed conditional approval

. In a letter dated March 20, 2015, the New Hampshire Department of Environmental Services (NH DES) committed to revising its regulations no later than on e year from the date when EPA publishes a notice of final conditional approval, and to submitting the revised regulations to EPA for approval into the SIP.

Th e attached summary identifies each required federal NNSR program provisions with description, t he corresponding stat e provision, a statement whether the state provision complies with the federal requirement citation , and a discussion of any issues associated with approving the state provision.

Permit definition submittal

On July 23, 2003 , New H ampshire submitted a SIP submittal that clarifies how the State addresses minor changes to the permit terms contained in “Temporary Permits” (i.e., preconstruction air quality permits) and “State Permits to Operate” issued under the State’s PART Env

- A 600, Statewide Permit System. The current SIP

- approved rules do not have definitions sufficient to address minor changes to existing permit terms or conditions for stationary sources, where the changes would not : a) r esult in an increase in the amount of a sp ecific air pollutant emitted by the source or device; (b) result in the emission of any additional air pollutant; or (c) necessitate the use of permit notice and hearing procedures.

To address such minor changes to existing permit terms, the SIP submittal included definitions for the terms for “minor permit amendment” and “state permit to operate.” The term “minor permit amendment” provides for minor changes to conditions in permits other than Title V permits (which are not issued pursuant to SIP regulations). The term “state permit to operate” means a non

- Title V operating permit issued prior to operation or material modification of a stationary source, area5

stationary source or dev ice. Both definitions are consistent with all federal requirements under the CAA for approval into the SIP.

ADMINISTRATIVE REQUIREMENTS

2003 submittal

As required under 40 CFR 51.102 “Public hearings,” the NH DES published a notice in the

Union Leader on January 14, 2003 announcing the notice for comment for the July 21, 2003 SIP

submittal

. The NH DES held a public hearing on February 26, 2003 and solicited comments until

COB March 10, 2003 . New Hampshire adopted the rules on April 23, 2003 . T he rules became

effective on May 3, 2003

.

2012 Submittal

As required by 40 CFR 51.102 “Public hearings,” the NH DES published a notice in the Union

Leader on March 30, 2012 announcing the notice for comment for the November 15, 2012 submittal.

The NH DES held a public hearing on May 2, 2012 and solicited comments until COB May 9, 2012. New Hampshire adopted the rules on August 22, 2012. The rules became effective on September 1,

2012.

RECOMMENDATIONS

I recommend EPA proposes to conditionally appro ve the NH DES submittal revising PART

Env

- A 61 8, “ Nonattainment New Source Review ” and PART Env

- A 619 “Prevention of Significant

Deterioration” For the PSD program conditional approval

, the NH DES commits to adopt the public noticing requirements in 40 CFR 51.166(q)(2)(iv) . For the NNSR conditional program , the NH DES

commits to adopt the following provisions : 1) 4 0 CFR 51.165(a)(6) and (a)(7)

, typically referred to as the “Reasonable Possibility ; ” and 2) 40 CFR 51.165(a)(5)(i) stating that “Approval to co nstruct shall not relieve any owner or operator of the responsibility to comply fully with applicable provisions of the plan and any other requirements under local, State or Federal law

.

I recommend EPA propose to approve fully the NH DES submittal revi sing PART Env

- A 101
“Permit definitions.”

Attachment6 ATTACHMENT

SUMMARY OF AMENDMENTS TO N EW H AMPSHIRE DEPARTMENT OF

ENVIRONMENTAL SERVICES PART Env

- A 618 NONATTAINMENT NEW SOURCE REVIEW

§ 51.165 Permit requirements. State Citation State Language Issue (a) State Implementation Plan and Tribal Implementation Plan provisions satisfying sections 172(c)(5) and 173 of the Act shall meet the following

conditions:

1) All such plans shall use the specific

definitions. Deviations from the following wording will be approved only if the State specifically demonstrates that

the submitted definition is more stringent, or at least as stringent, in all respects as the corresponding def inition

below: Env

- A 618.03

Definitions Env

- A 618.03(a) For the purposes of

this part, the definitions con t ained in 40 CFR 51.165(a)(1)and (f)(2) shall apply with several clarifications and

revisions Requirement met. The provision IBRs the federal NSR permitting definitions

into the SIP verbatim except

for the following definition s:

“Baseline actual emissions.” The DES provided a demonstration showing that
the state’s revised “Baseline7 actual emissions ” is as least as stringent as the federal

definition . EPA’s approval of

the definition i s included in

this TSD.

“ R easonable period” The DES defined reasonable period as five years which is consistent with federal practice.

The state also added the

follow definitions : “Emission offset,” “Emission offset ratio,” “Northeast Ozone Transport Region,” “Offset
source” and “Ozone season” to clarify its emission offset requirements.

(a)(1) (xxxv) “Baseline actual emissions” means the rate of emissions, in tons per year, of a regulated NSR pollutant, as

determined in accordance with paragraphs (a)(1)(xxxv)(A) through (D)

of this section.

(xxxv)(A) For any existing electric utility
steam gene rating unit, baseline actual Env

- A 618.03(a)(1) Baseline actual emissions” means the

definition as specified in 40 CFR 51.165(a)(1)(xxxv) with the following revisions:

Env

- A 618.03(a)(1)b. The 24

- month period shall be selected from the 5

- year period immediately preceding Requirement met.

Demonstration require d to support conclusion.

Issue: different time periods

Federal definition requires

selection of the 24

- month8

emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any

consecutive 24

- month period selected by the owner or operator within the 5

- year period immediately preceding when t he owner or operator begins actual construction of the project. The reviewing authority shall allow the use of a different time period upon a

determination that it is more representative of normal source operation.

(xxxv) (B) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any

consecutive 24

- month period selected by the owner or operator within the 10

- year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received by the reviewing authority for a permi t required either under this section or under a plan approved by the Administrator, whichever is earlier, except that the 10

- year period shall not the date when the owner or op erator begins actual construction of the project

or Env

- A 618.03(a)(1)c. The department shall allow the use of a time period up to 10 years immediately preceding the date when the owner or operator begins actual construction of the project or allow the us e of a different

consecutive 24

- month period for different pollutants upon determining that the alternative time period is more representative of normal source operations, upon adequate demonstration by the applicant period within the following time period:

a. Electric utility steam generating units: 5 year period or a different time period upon a demonst ration that it is more representative of normal source operations.

b. Non

- electric utility steam generating units: 10 year period from date

owner/ operator begins actual construction or date completed permit application is received by the reviewing author ity for a permit required either under this section or under a plan approved by the administrator,

whichever is earlier.

State definition:

owner/ operator may select 24

- month period within the 5

years
, or w ithin 10 years upon adequate demonstration

Analy sis result: The

definition is as least as9

include any period earlier than November 15, 1990. stringent as federal definition (see discussion above)

xxxv)(A)(3) Electric utility steam generating units: For a regulated NSR pollutant, when a project involves multiple emissions units, only one

consecutive 24

- month period must be

used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24

- month period can be used for each regulated NSR pollutant.

(xxxv)(B)(4) Non

- Electric utility steam generating units: For a regulated NSR pollutant, when a project involves multiple emissions units, only one

consecutiv e 24

- month period must be

used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24

- month period can be used for each regulated NSR pollutant. Env

- A 618.03(a)(1) Env

- A 618.03(a)(1)a. The same

consecutive 24

- month period shall be used for all pollutants

or Env

- A 618.03(a)(1)(c.) allow the use

of a different consecutive 24

- month period for different pollutants upon determining that the alternative time period is more representative of

normal source operations, upon adequate demonstration by the applicant Requirement met. Demonstration required to support conclusion.

Issue: different pollutant averaging times

Federal definition

Federal definition allows the applicant to select a different

24

- month period for each pollutant without the need for

a demonstration.

State Definition State definition requires the

same 24

- month period for all pollutants or a different

consecutive 24

- m onth period for different pollutants upon determining that the alternative time period is more representative of normal source operations, upon10 adequate demonstration by the applicant

Analysis result : The

definition is as least as stringent as federal de finition (see discussion above)

( 2)(ii) Each plan shall use the specific provisions of paragraphs (a)(2)(ii)(A) through (F) of this section. Deviations from these provisions will be approved only if the State specifically demonstrates

that the submitted provisions are more stringent than or at least as stringent in all respects as the corresponding provisions in paragraphs (a)(2)(ii)(A) through (F) of

this section. Env

- A 618.02(b) Classification of a pro ject relative to whether or not it is a major modification and therefore subject to this part pursuant to (a) above, shall be performed as described in 40 CFR §51.165(a)(2)(ii)(A) through (F) and by taking the sum of the emissions

increase from each emissi ons unit affected by the project. Requirement met.

Amendments IBR the applicable provisions under 40 CFR 51.165(a)(2)ii(A)

– (F) in

full.11

(3)(i) Each plan shall provide that for sources and modifications subject to any preconstruction review program adopted pursuant to this subsection the baseline for determining credit for emissions

reductions is the emissions limit under the applicable Sta te Implementation Plan in effect at the time the application to construct is filed, except that the offset

baseline shall be the actual emissions of

the source from which offset credit is

obtained Env

- A 618.03 Env

- A 618.03(b)(1) For the purpose of this part, the following additional definitions shall apply:

"Emissions offset" means a reduction in pollutant emissions achieved at an existing source meeting the criteria specified in 40 CFR §51.1 65(a)(3)

Env

- A 618.07 Emissions Offset Require ments. (a) The baseline for an emission

offset shall be the actual emissions of

the source from which the offset

credit is to be obtained. (b) Offset credit shall not include: (1) Any reductions from compliance, or scheduled compliance, with applicable rul es in effect prior to the permit application of the new or modified source; (c) Emissions offsets shall achieve, at a minimum, a ratio of total actual

emissions reductions to emissions increases of at least 1:1, except as

listed in Table 6 18

- 1, below, sub ject to the notes in (d), Requirements met. Offsets based on actual emissions (as defined by federal definition of “actual emission”) and
State definition of “Emission
Offset” defined to include all plan offset baseline requirements under 40 CFR §51.1 65( a)(3)

. Baseline for offsets shall be
based on “actual emissions”

that have been reduced to comply with any applicable state control plan (i.e, RACT)

or compliance schedule.

Offsets shall achieve a

minimum ratio of at least 1:1 ratio or higher for grou nd level ozone (1.15:1 for OTR and

Moderate nonattainment areas).

Offsets shall be obtain from equal to or higher

nonattainment classification

, and for NOx and VOCs a s precursors to ozone, within the

OTR.12

(4) Each plan may provide that the provisions of this paragraph do not apply

to a source or modification that would be a major stationary source or major modification only if fugitive emissions, to the extent quantifiable, are considered in calculating the potential to emit of the stationary source or modification and the source does not belong to any of the 26

identified source categories Env A 618.0 3

& 40 CFR 51.165(a)(1)(iv) and (v) Env A 618.03 refers to the federal

fugitive emissions in 40 CFR 51.165(a)(1)(iv) a nd (v ) Requirement met.

Amendments consistent with federal definition for major stationary source and major

modification13

(5) Each plan shall include enforceable procedures to provide that: (i) Approval to construct shall not relieve any owner or operator of the responsibility to comply fully with applicable provision of the plan and any other requirements under local,

State or Federal law. (ii) At such time that a particular

source or modification becomes a major stationary source or major

modific ation solely by virtue of a relaxation in any enforcement

limitation which was established after August 7, 1980, on the capacity of

the source or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then the requirements of regulations approved pursuant to this section shall apply to the source or modification as though construction had not yet commenced on the source or modification; Env A 618.02(c) Env A 618.02(c) If a source or

modification is determined to be a major stationary source or major modification solely by virtue of a relaxation in any enforceable limitation established after August 7, 1980, on the capacity of the source or

modification otherwise to emit a pollutant, such as a restriction of hours of operati on, then the provisions of this part shall apply to the source or modification as though construction had not yet commenced

on the source or modification. Requirement not met. 51.165(a)( 5)(i) was originally approved into New Hampshire’s SIP but was inadvertently left off of the

11/12/12 submittal.

(6) Each plan shall provide that, except as otherwise provided in paragraph (a)(6)(vi) of this section, the following specific provisions apply with respect to any regulated NSR pollutant emitted from projects at existing emissions units Not included. Not included

. Requirement not met. The requirements for “reasonable possibility” required under 40 CFR 51.165(a)(6) and (a)(7)

was not included in the

submittal

.14

at a major station ary source (other than projects at a source with a PAL) in

circumstances where there is a reasonable possibility, within the meaning of paragraph (a)(6)(vi) of this section, that a project that is not a part of a major modification may result in a signific ant emissions increase of such pollutant, and the owner or operator elects to use the method specified in paragraphs (a)(1)(xxviii)(B)(1) through (3) of this section for calculating projected actual

emissions. Deviations from these provisions will be appro ved only if the State specifically demonstrates that the submitted provisions are more stringent than or at least as stringent in all respects as the corresponding provisions in paragraphs (a)(6)(i) through (vi) of this

section.

(7) Each plan shall provide that the owner or operator of the source shall make the information required to be documented and maintained pursuant to paragraph (a)(6) of this section available for review upon a request for inspection by the reviewing author ity or the general public pursuant to the requirements Not included. Not included. Requirement not met. The requirements for “reasonable possibility” required under 40 CFR 51.165(a)(6) and (a)(7)

was not included in the

submittal.15

contained in § 70.4(b)(3)(viii) of this chapter.

(8) The plan shall provide that the requirements of this section applicable to major stationary sources and major modifications of volatile organic compounds shall apply to nitrogen oxides emissions from major stationary sources and major modifications of nitrogen oxides in an ozone transport region or in any ozone nonattainment area, except in ozone nonattainment areas or in portions of an ozone transport region (OTR) where the Administrator has granted a NOX waiver apply ing the standards set forth under section 182(f) of the Act and the waiver continues to apply. Env

- A 618.02 (a)(2) Env

- A 618.03 Definitions under:

51.165 (a)(1)(iv) : Major Stationary

source ; 51.165(a)(1)(v) : M ajor modification

and 51.165(a)(1)(iv)

Env

- A 618.02 Applicability. (a) This part shall apply to each new major stationary source or major modification that is major for the following: (1) The pollutant for which the area

in which the source is or would be

located is designated

nonattainment under 40 CFR §81.330; or (2) NOx or VOC if the source is or would be located in the OTR, as

defined in Env

- A 618.03(b)(3). Requirement met

.16

(9)(i) The plan shall require that in meeting the emissions offset requirements of paragraph (a)(3) of this section, the ratio of total actual emissions

reductions to the emissions increase shall

be at least 1:1 unless an alternative ratio is provided for the applicable nonattainment area in paragraphs (a)(9)(ii) through (a)(9)(iv) of th is

section. Env

- A 618.07 Emissions Offset Requirements. (a) The baseline for an emission

offset shall be the actual emissions of

the source from which the offset

credit is to be obtained. (c) Emissions offsets shall achieve, at a minimum, a ratio of total actual

emissions reductions to emissions increases of at least 1:1, except as

listed in Table 6 18

- 1, below, subject to the notes in (d), below: Requirement met

. P aragraph (a) requires the source to

offset the total actual

emissions increase and Ta ble

618

- 1 requires the offsets to

meet the applicable federal offsetting ratios

(10) The plan shall require that the requirements of this section applicable to major stationary sources and major

modifications of PM

- 10 shall also apply to major stationary sources and major

modifications of PM

- 10 precursors, except where the Administrator

determines that such sources do not contribute significantly to PM

- 10 levels

that exceed the PM

- 10 ambient standards

in the area. Env

- A 618.03 Definitions Req uirement met. The state amendments apply nonattainment NSR to any major stationary source or major modification as defined in the federal permitting requirements at 51.165. If the federal definitions for major stationary source and major

modifications inc ludes

emissions of PM

- 10 precursors, the state rules will

include PM

- 10 precursors

.17

(11) The plan shall require that in meeting the emissions offset requirements of paragraph (a)(3) of this section, the emissions offsets obtained

shall be for the same regulated NSR pollutant unless interprecursor offsetting is permitted for a particular pollutant as specified in this paragraph. The plan may allow the offset requirements in paragraph (a)(3) of this section for direct

PM 2.5 emissions or emissions of precursors of PM 2.5 to be satisfied by offsetting reductions in direct PM 2.5 emissions or emissions of any PM 2.5 precursor identified under paragraph (a)(1)(xxxvii)(C) of this section if such offsets comply with the interprecursor trading hierarchy and ra tio established in the approved plan for a particular

nonattainment area. 618.03(b)(1) "Emissions offset" means a reduction in pollutant emissions achieved at an existing source meeting the criteria specified

in 40 CFR §51.165(a)(3). Requirement met: Compliance with (a)(3) requires sources obtain offsets for the regulated pollutant.

The amendments do not allow for interpollutant trading.18

(f) Actuals PALs. The plan shall provide for PALs according to the provisions in paragraphs (f)(1) through (15) of this

section. Env

- A 618.03(a) and

Env

- A 618.09 “Establishing a

PAL” Env

- A 618.09 “Establishing a PAL”

A PAL shall be established, re

opened, renewed, increased, monitored, recorded, and reported in

accordance with 40 CFR §51.165(f)(1), (4), and (6)

- (14), except that offsets shall be created

and used in accordance with Env

- A

618.07 and Env

- A 618.08, and the public participation requirements shall be replaced by Env

- A 618.10(b) and (c).

(a) A permit application to comp ly

with NSR or establish a PAL filed with the department pursuant to this part shall be reviewed in accordance

with the criteria set forth in Env

- A

607.04. (b) A permit application to comply

with NSR or establish a PAL pursuant to this part shall be subje ct to the public notice procedures specified in Env

- A 621.04. (c) The department shall address all material comments received during the public comment period before taking final action on a PAL permit application. Require met. The amendments

refer to the permit application requirements Env

- A 607.04 that compl ies with the permit application requirements in (f)(3). The amendments replace (f)(5) with the public notice requirements in Env

- A 618.10(b). Env

- A 618.10(b) refers to the public notice procedures sp ecified in Env

- A 621.04. This provision requires a permit application

to establish a PAL with a 30

- day notice as required by the (f)(5). These procedures meet 51.165(f)(5).