Department ofthe Environment



### Purpose ofAmendments

# TECHNICAL SUPPORT DOCUMENT Amendments to COMAR26.11.02.09 and .10 to Clarify Requirements related to Permits to Construct and Approvals for Electric Generating Units

The purpose ofthis action is to clarify pennit to construct and approval requirements for electric generating stations that are not required to receive a Certificate ofPublic Convenience and Necessity (CPCN) from the Maryland Public Service Commission (PSC) before commencing construction. 

### Background Nearly all sources ofair pollution are required to receive a pennitto construct before constructing ormodifying the source. Electric generating stations, however, are generally exempt from the requirement to obtain a pennit to construct or approval from the Department. Rather, electric generating stations are required to obtain a CPCN from the PSC
. Under the current Public Utility Companies Article, all ofthe air quality provisions that would otherwise be incorporated into a pennit to construct or approval issued by MDE must be contained in a CPCN issued by the PSC. Electric generating stations that are not required to obtain a CPCN from the PSC for any reason remain subject to the Department's preconstruction pennitting requirements, as provided in 

### § 2

- 402(3) ofthe Environment Article. Regulations implementing 

### § 2-402(3) in Code ofMaryland Regulations 26.11.02.09 and .10 currently exempt from the Department's pennit requirements electric generating stations constructed by electric companies, regardless ofwhether the electric generating station is required to obtain a CPCN. These regulations are out-of-date and not consistent with the statutory provision insofar as they do not purport to preserve the Department's pennitting authority for electric generating stations that are not required to obtain a CPCN. The Department would retain pennitting authority, for example, where the Public Utility Companies Article provides an exemption ofthe requirement that a generating station obtain a CPCN
. (See, e.g., Maryland Code, Public Utilities Article 

### § 7-207(b)(I)(ii»
. The proposed revisions to the regulations correct this inconsistency. 

### Sources Affected Pennit and approval requirements apply to all electric generating stations that propose to construct a new facility or modify an existing facility.

1Requirements These amendments correct an inconsistency between the Department's statutory authority and its implementing regulations and clarify the applicability ofthe Department's preconstruction permitting requirements to electric generating stations that are notrequired to obtain a CPCN from the Public Service Commission. Economic Impact on Affected Sources and the Department These amendments do not establish any new requirement or new emissions standards but clarify existing requirements that apply to electric generating stations. There is no economic impact on affected sources orthe Department. Economic Impact on Small Businesses The affected sources do not fit the definition of"small business". Comparison to Federal Standards There is no corresponding federal standard to this proposed action. Revision to Maryland's SIP These amendments will be submitted to EPA for approval as part ofMaryland's State Implementation Plan.

DRAFT 

### 2 8/13/2009 1:29 PM 

# •

# The following letter from the Maryland Public Service Commission (PSC) to the Department ofthe Environment provides the technical support for the PSC amendments by describing the procedures used by the PSC to

ensure that permit applications from electric generating units undergo a completeness determination and meaningful public commentprocess.COMMISSIONERS DOUGLAS II. M. NAZARIAN CHAIRMAN STATE OF MARYLAND

AROLD D. WILLIAMS SUSANNE BROGAN LAWRENCE BRENNER THERESE M. GOLDSMITH 

### PUBLIC SERVICE COMMISSION

The Honorable Robert M. Summers Acting Secretary January 25, 2011
Maryland Department oftheEnvironment Montgomery Park Business Center 1800 Washington Boulevard Baltimore, Maryland 21230 Dear Secretary Summers: Confirming the discussion with representatives ofthe Environmental Protection Agency Region III (EPA), and members of your staff and the Power Plant Research Program (PPRP) on February 19,2011, the Maryland Public Service Commission (PSC) supports your efforts to obtain EPA approval ofthe Maryland State Implementation Plan. In response to the need to obtain a completeness determination for CertifIcate of Public Convenience and Necessity (CPCN) applications as required by 40 CFR 

### § 124.3, the parties should raise this issue with the PSC Hearing Examiner at the Prehearing Scheduling Conference. The Hearing Examiner will hear argument and make a determination, either ordering the incomplete application be supplemented prior to the hearing ormaking a finding onthe record that the application is complete. Concerning the necessity for time to allow for response to public comments, the parties should**likewis~** 

### raise this issue with the Hearing Examiner at the Prehearing Scheduling Conference so that adequate time will be allowed in the Scheduling Order. In addition, to the extent this has not been accomplished by the time a Proposed Order is issued by the Hearing Examiner, this should be brought to the Commission's attention before the Proposed Order becomes Final. Please feel free to include this letter in the Department's resubmission to EPA of the Maryland State Implementation Plan. IfI canbe offurther assistance, please feel free to contact me. Sincerely,

# 1~~~. H. Robert Erwin, Jr. I 

### General Counsel WILLIAM DONALD SCHAEFER TOWER • 6ST. PAUL STREET. BALTIMORE,MARYLAND 21202-6806 410-767·8000 

### • Toll Free: 1·800492.0474 

### • FAX: 4/0-333-6495 MDRS: 1·800-735·2258 (TTYNoicc) 

### • Website: www.psc.s\alc
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