p.1 . 

# OAR Box 1781 Prepped by Ollie Stewart



### Document

Number: 

# 104 ) IV-C-1 8 Docket Number: 

# A-90-3 7

Printed 10/29/200810:46:23 AM Sheet 104 of 142P. 2 UNITE D STATES ENVIRONMENTA L PROTECTIO N AGENC Y



# c A-^o-5 7 

# iff-c-1 8

Honorabl e Rick

Bouche r Hous e o f Representative s Washington , D C 20515-480 9 Dea r Congressma

n Boucher : 

### JU L 2 9 FUO I 5 2C0 0 EPA AI R DOCKE T Thi s i s in respons e t

o you r Jul y 7,199 9 letter , in which you raise d severa l issue s regardin g m

y Jun e 14,199 9 lette

r to you . Yo u expresse d concer

n tha t companie s i n Virgini ahav e los t productio n abilit

y du e t o th e wa y th e Clea n Air Act' s Ne w Sourc e Review (NSR) progra mi s bein g implemented . You state d tha t th e productio n los s occur s whe n asourc e applie s fo

r pre-constructio n permit s to modif y it s facility , a t whic h tim e acalculatio n i s made comparin g potentia l productio n following th e modificatio n to actua

l productio n durin g apreviou s window i n time . I f th e sourc e ha

d no t produce d a

t it s permitte d potentia

l durin g thi s windo w i n time , i t woul d los e th e differenc e between tha

t potentia l permitte d leve l an

d th e actua

l productio n leve l durin g tha t period . I n orde r t o avoi d thi s "us e it

o r los e it " situation , you aske d tha t th e NS Rregulation s b e revise d t o provide fo r th e us ^ o f potentia l productio n rathe

r tha n actua l productio n fo

r purpose s o f

completin g th e emissio n increas e calculation . I n addition , you asked tha

t th e regulation s b e revise d t o allo w a compan y to recou p potentia l productio n los t

durin g th e previou s 15-yea r period . A s I indicate d i n m

y Jun e 14,199 9 letter , EP

A ha s propose d regulator

y change s an

d i s considerin g suggeste d revision s to it s NS Rprogram . Thes e suggestion s include a n alternativ e approach fo

r calculatin g th e emissio n increas e associate d wit h aphysica

l chang e o r

chang e in th e metho d o f operatio n a

t a n existin g facility . One optio n bein g considere d i s t o chang e th e emissio n increas e calculatio n b y usin g potentia l emissions , instea

d o f actual , a s th e pre-chang e baseline . W

e ar e als o considerin g expandin g th e "baseline " perio d fo r determinin g asource' s norma l level o f operatio n to a s muc

h a s 1 0 year s precedin g aparticula r change . [See 6 1 F

R 38250 , 38258-60 , 38268-7 0 (July 23,1996). ] We hav e reviewe d th e publi c comment s associate d . wit h thes e an d othe r propose d rulemakin g change s an d ar e no w deliberatin g o n th e approach t o b e include d i n th e final rulemaking . You r comment s hav e bee n include d i n th e docke t fo r thi s rulemaking . EPA:OAQPS:ITPID:nG:DdeROECK:ythorpe:919-541-5593:NCMU:MD-12:7/19/9 9 CONTROL NOS . AL-9901577 an d AL-990158 9 Coordinate d wit

h Regio n III (Kathlee

n Henry) , OG

C (Jone Devine , Greg Foote )P. 3

> * Yo u als o expresse d concer

n tha t th e NS Rprogram , a s presently administered , adversely affects industr

y competitiveness . On

e o f tli e statutor

y purpose s of

th e NS Rprogra

mi s to "insure tha t economi c growt

h wil l occu

r i n amanne

r consisten t wit h th e preservatio n o f

existin g clea

n ai r resources. " T o tha

t end , w e hav e entere d int

o direc t dialogu e wit

h variou s industr

y stakeholders , a s wel l a s State/loca l official s an

d environmenta

l stakeholders , a s par

t o f th e NS R Refor mproces s t o better

understan d thei r

concern s an

d idea s regardin g improvement s to th e existin g NS Rregulations . Industry , fo r example , ha s indicate d th e nee d to b e abl e to mak e timely change s and expansion s to it s existin g productio n abilit y in orde r to compet e i n agloba

l market . W

e pla n to addres s thi s and other

relevant concern s in th e upcomin g NS RRefor m rulemaking . I appreciat e thi s opportunit

y to b e o f servic e an d trus t tha t thi s additiona

l informatio n wil l b e helpfu l to you . I believ e th e NS RRefor mproces s wil l addres s man y o f th e concern s yo

u hav e raised . I n th e meantime , i f

you hav e additiona

l question s regardin g implementatio n o f th e curren t NS Rprogra

ma t an y specifi c companie s in th e Commonwealt h o f Virginia , I urg e yo

u t o contac t Judit h Katz , Directo r

o f th e Ai r Protectio n Divisio n in ou

r Regio n U J office , directly . I kno w tha t sh e an d he r staf f woul d welcorrt

e th e opportunit

y to b e of assistance . » Sincerely ,
Rober t Perciasep e Assistan t Administrator cc : J . Kat z



# 2-P. 4

Controlle d Correspondenc e Fo r OFFIC E O F AI R AN D RADIATIO N

CONTRO L NO : AL-990158 9 ORIG . DU E DATE : 07/23/9 9 STATUS : PENDIN G CORRES . DATE : 07/07/9 9 RECEIVE D DATE : 07/09/9 9 ASSIGNE D DATE : 07/12/9 9 CLOSE D DATE : FROM : ORG : SALUTATION : CONSTITUENT : BOUCHE RFREDERICK-D/V A U.S . HOUS E O F REPRESENTATIVE S DEA RCONGRESSMA N BOUCHE R TO : T O ORG : SUBJECT :

ASSIGNED : NE W SOURC E REVIE W REFOR

M REGULATIONS/URG E THE EP A T O INCORPORAT E INT O THE REGULATIO N LANGUAG E REQUIRIN G THE US E OF POTENTIA L PRODUCTIO N RATHERTHA N ACTUA L PRODUCTIO N FO R PURPOSE S O

F EMISSION S INCREAS E CALCULATIO N Offic e o f Ai r Qualit

y Plannin g & Standard

s - RTP COPIE S O F INCOMIN G PROVIDE D TO : OCIR/ELIZABET H CUMMTNG S \ SIGNATURE : ASSISTAN T ADMINISTRATO R OARCOMMENTS : A L INSTRUCTIONS : MUS T B E RETURNED T O OCI R(1304 ) 3RD FLOO RWT , FO RREVIEW AN D DISPATCHING . INCLUD E "HARD " COP Y OF SIGNE D REPL Y FOR CONGRESSIONA L FILE S (AL) . D O NO T DAT E LETTER. OA RINSTRUCTIONS : PREPAR E REPL Y FO RTH E ASSISTAN T ADMINISTRATOR' S SIGNATURE .

|Lea d Assigne d

OAQP S Dat e Assigne d 07/12/9 9 Code/Statu s ACTIO N Dat e Complete d b y Assigne e

- Dat e Returne d t o OAR :

-

(Untitled ) 

# 3P. 5 RIC KBOUCHE R 9T H DISTRICT , VIRGINI A

COMMERC E SUBCOMMITTEES : TELECOMMUNICATIONS . TRAD E AN D CONSUME R PROTECTIO N ENERG Y AN D POWE R JUDICIAR Y SUBCOMMITTEE : COURT S AN D INTELLECTUA L PROPERT Y ASSISTAN T WHI P 

## Congres s o f tfje ZHnite b State s $ou£f e o l ftepreaentattoefii Jul y 7 , 199 9 WASHINGTO N OFFICE : 232 9 RAYBUR N HOUS E OFFIC E BUILDIN G WASHINGTON . O C 20515-460 9 I202I225-386 1 . e-mail : NINTHNET@MAIL.HOUSE.GO V WWW : http-y/www.house.gov/bout'ier / CONSTITUEN T SERVIC E OFFICES :

18 8 EAS T MAI N STREE T ABINGDON . VIRGINI A 2421 0 (5401628-114 5 31 1 SHAWNE E AVENU E EAS T BI G STON E GAP . VIRGINI A 2421 9

15401523-545 0 10 6 NORT H WASHINGTO N AVENU E

P.O . BO X 126 8 PULASKI . VIRGINI A 2430 1 (5401980-431 0

Rober t Perciasepe , Assistan

t Administrato

r United State s Environmenta l Protectio n Agenc

y Washington , D.C . 2046 0 Dea r Mr . Perciasepe : I a mwritin g t o than

k yo u fo r you r June 14 , 1999 , respons e t o m y Ma y 12 , 199 9 letter

t o Carol M . Browner , Administrator o f th e Environmenta

l Protectio n Agenc

y (EPA) , an

d t o addres s severa l issue s raised i

n your letter . Althoug h I a mi n agreemen

t wit h man y of you r comment s wit

h respec t t o th e ne w sourc e review progra

m(NSR) , I believe tha

t you r respons e doe s no t

adequately addres s th e ke

y issue s raised i n m y letter . I a

mconcerned wit

h th e los s o f

potentia l productio n fo

r companie s i

n th e United State s du e t o th e application of th e "us e i t or los e it " exercis e implemented b y th e ne w sourc e review program . You r letter state s tha t "The current

NS Rregulatio n i

n n o wa y limits th e productio n o f cok e b y an y source. " We have , however , los t productio n abilit

y i n Virgini aa s aresult

o f th e application o f

thi s regulation . The los s ©ccur s whe n source s appl

y fo r pre-constructio n permits , a t whic h tim e acalculatio n i s mad

e comparing potentia

l productio n t o actua

l productio n during a previou s windo w i

n time . Shoul

d i t b e determined tha

t th e sourc e ha

d no t produce d a

t it s permitte d potentia

l durin g thi s window i

n time , th e sourc e would los e th e difference between th e potentia l permitte d leve

l an d th e actua l productio n leve

l during tha

t period . Accordingly , th e sourc e face s a"us e i

t o r los e it " situation . You als o state tha

t "...source s tha

t simpl y increas e operation s without aphysica l o r operationa l chang e ~ fo

r instance , t o take advantag e o f norma l market fluctuation s ~ are exemp

t frommajo

r NSR. " Thi s informatio

n i s indee d encouraging . I

n nee d your

assistanc e i

n th e effor t t o assur e tha t th e rul e wil

l b e applie d i n th e manne

r yo u sugges t i n Virginia . Th e Virgini a Departmen

t o f Environmenta

l Quality , i n attempting t o compl

y wit h federa l regulation , ha s applie d th e NS Remissio

n increas e calculatio n t o source s applyin g t o excee d their permitte d leve

l t o take advantag e o f

norma l marke t fluctuations . It

would indee

d b e helpfu

l fo r yo u t o confir m tha t source s wit

h federa l enforceabl

e permi t level s ca n excee d thes e limits i

n order t o mee t marke t demand . 

# 4

-P. 6

Pag e 2 Jul y 7 , 199 9 Finally , you state tha

t "I t i s no t th e inten t o f th e ne w sourc e review progra

mt o adversel

y affec t th e competitivenes s o f

an y industry. " I a

madvise d by anumbe

r o f companie s i

n m y Congressiona

l Distric t that , a s presentl

y administered , thi s progra

mdoe s adversel

y affec t competitiveness , regardles s o f it s intent . Onc e again , I urg e th e EPA t o incorporat e int o th e regulatio n languag e requiring th e us e o f potentia l productio n rathe

r tha n actua l productio n fo

r purpose s of

emission s increas e calculation . Second , an

d o f equa l importance , I a

mrequestin g tha

t th e EP A incorporat

e into th e "Ne w Sourc e Review Refor

mRegulations " change s tha t wil l allow acompan

y t o recou p potentia l productio n los t

during th e previou s fifteen-year period . Than k you fo r you r attentio n t o thes e comments . I look forwar d t o receiving your response . Wit

h kin d regards , I a

m Sin\erely ,

Ric k Bouche r Membe r o f Congres s RB/b c



# 5P. 7

Controlle d Correspondenc e Fo r OFFIC E O F AI R AN D RADIATIO N

CONTRO L NO : AL-990157 7 STATUS : PENDIN G ORIG . DU E DATE : 07/22/9 9 GORRES . DATE : 07/07/9 9 RECEIVE

D DATE : 07/08/9 9 ASSIGNED DATE : 07/08/9 9 CLOSE D DATE : FROM : ORG : SALUTATION : CONSTITUENT : TO : T O ORG : SUBJECT : BOUCHE RFREDERICK-D/V

A U.S . HOUS E O F REPRESENTATIVE S DEA RCONGRESSMV\

N BOUCHE

R

NE W SOURC

E REVIE W PROGRA

M (NSR)/CONCERNE

D WIT H TH E LOS S OF POTENTIA

L PRODUCTIO

N FORCOMPANIES DU

E T O TH E APPLICATION OF TH E "US E IT O

RLOS E IT " EXERCIS E IMPLEMENTE D B Y TH E NE W PROGRAM/FOLLO

W UP T O AL990121 3 ASSIGNED : Offic e of Ai r Qualit y Mannin g & Standard s - RTP COPIE S O F INCOMIN G PROVIDED TO : OCIR/ELIZ.ABET H CUMMINGS SIGNATURE : ASSISTAN T ADMINISTRATO R OARCOMMENTS : AL INSTRUCTIONS : MUS T B E RETURNE D T O OCI

R(1304 ) 3R

D FLOORWT , FO

RREVIE W AN D DISPATCHING . INCLUD E "HARD " COP

Y O F SIGNE

D REPL Y FO R CONGRESSIONA

L BILE S (AL) . D O NOT DAT

E LETTER . OA RINSTRUCTIONS : PREPAR E REPL Y FO RTH E ASSISTAN

T ADMINISTRATOR' S SIGNATURE .

Lea d Assigne d

OAQP S Dat e Assigne d 07/08/9 9 Code/Statu s ACTIO N Dat e Complete d b y Assigne e

- Dat e Returne d t o

OAR :

-

(Untitled ) 

# \oP. 8

07/07/9 9 13:3 1 ©703628220 3 BOUCHER . ABN . 14)00 2

• RICK30UCHE R 9T H DISTRICT . VIRGINI A COMMITTEES : COMMERC E SUBCOMMITTEES : TELECOMMUNICATIONS . MAD E AN D CONSUME R PROTECTIO N ENEPG V AN D POWE R JUDICIAR Y SUBCOMMITTEE : COURT S AN D INTELLECTUA L PROPERT Y ASSISTAN T WHI P 

## Congres s o f tfjeUmte b States * J^ou£>e o f 3foprc£tentattoet f Jul y 7 , 199 9 WASHINGTO N OFFICE : } ) » KAVBUR

N MOUS E OFFIC E SUILOIN

Q WASHINGTON , D

C MilS-il M IJ0JIJIS-M8 1 •-null : NINTHNET0MAIL.HOUSf.GO V WWW : hnp^/www.hou«».oov/oouchtr / CONSTITUEN T SERVIC E OFFICES : t H EAS T MAI N STP.K

T ABINGDON . VIRGINI

A J4II 0 (S40IMS-.11 S 11 1 SHAWNEE AVENU E EAS T BIG STON E GAP. VIRGINI

A Ja m IM0 I m.uto 10 5 NORT H WASHINGTO N AVENU E P.O . BO X IJ M 'ULASKI . VIRGINI

A JO0 I IStOIMO-ill O

Rober t Perciasepe , Assistan

t Administrato

r United State s Environmenta l Protectio n Agenc

y Washington , D.C . 2046 0 Dea r Mr . Perciasepe : I a mwritin g t o than

k you fo r you r Jun e 14,1999,'respons e t o m y Ma y 12 , 199 9 letter

t o Caro l M . Browner , Administrato r o f th e Environmenta

l Protectio n Agenc y (EPA) , an d t o addres s severa l issue s raise d i

n your letter . Although I a

mi n agreemen

t wit h man y o f you r comments wit

h respec t t o th e new sourc e review progra

m(NSR) , I believe tha

t your respons e doe s no

t adequatel y addres s th e ke

y issue s raise d i n m y letter . I a

mconcerne d wit

h th e los s o f

potentia l productio n fo

r companie s i

n th e Unite d State s du e t o th e application o f th e "us e i t o r los e it " exercis e implemented b y th e ne w sourc e review program . You r letter state s tha t "Th e curren

t NS Rregulation i

n n o wa y limit s th e productio n o f coke by an y source. " We have , however , los t production abilit

y i n Virgini aa s aresul t

o f th e applicatio n o f

thi s regulation . Th e los s occur s whe n source s appl

y fo r pre-constructio n permits , at whic h time acalculatio n i s mad

e comparing potentia

l productio n t o actua

l productio n during a previou s windo w i

n time . Shoul

d i t b e determined tha

t th e sourc e ha

d no t produce d at

it s permitte d potentia

l durin g thi s window i

n time , th e sourc e woul

d los e th e differenc e between th e potentia l permitte d leve

l an d th e actua l productio n leve

l durin g tha

t period . Accordingly , th e sourc e face s a"us e it

o r los e it " situation . Yo u als o state tha

t "...source s tha

t simpl y increas e operation s withou t aphysica l o r operationa l chang e —fo

r instance , t o tak e advantag e o f norma l marke t fluctuation s —ar e exemp

t frommajo

r NSR. " Thi s informatio

n i s indeed encouraging . I

n nee d your.assistanc e i

n th e effor t t o assur e tha t th e rul e wil

l b e applie d i n th e manne

r j^o u sugges t i n Virginia . Th e Virgini a Department

o f Environmenta

l Quality , i n attemptin g t o compl

y wit h federa l regulation , ha s applied th e NS Remissio

n increas e calculatio n t o source s applyin g t o excee d their

permitte d leve

l t o tak e advantag e o f

norma l marke t fluctuations . It

woul d indee d b e helpfu

l fo r you t o confir

m tha t source s wit

h federa l enforceable permi

t level s ca n exceed thes e limit s i

n order t o mee t marke t demand . 

# 1P. 9

• T 07/07/9 9 13:3 2 ©703628220 3 BOUCHE RABN. - ltS9Q3.__._a,. "

Pag e 2 Jul y 7 , 199 9 Finally , yo u state tha

t"I ti s notth e inten

to f th e ne w sourc e revie w progra m t o adversel y affec tth e competitivenes s o f

an y industry. " I a

m advised b

y a numbe

r o f companie s in m

y Congressiona

l Distric tthat, a s presentl y administered , thi s progra m doe s adversel y affect competitiveness , regardles s o f it s intent. Onc e again , I urg e th e EP A t o incorporat

e int o th e regulatio n languag e requiring th e us e o f potentia l productio n rathe

r tha n actua l production fo r purpose s o f emission s increas e calculation . Second , an

d o f equa l importance , I a

m requestin g tha

tth e EP A incorporat

e into th e "Ne w Sourc e Revie w Refor m Regulations " changes tha twill allo w a company t o recou p potentia l productio n los tduring th e previou s fifteen-yea r period . Than k yo u fo r you r attentio n to thes e comments . I loo k forwar d t o receivin g you r response . Wit

h kin d regards , I a

m SiiWely ,

Ric k Bouche r Membe r o f Congres s RB/b c