STATE OF DELAWARE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTAL CONTROL OFFICE OF THE

SECRETARY



### Mr. ShawnM. Garvin (3RAOO) Regional Administrator U. S. Environmental ProtectionAgency Region III 1650Arch Street Philadelphia, PA 19103-2029

# Dear~- 89 KINGS HIGHWAY DOVER. DELAWARE 19901 

### October 12,2011 PHONE: (302) 739-9000 FAX: (302) 739-6242


## RECEIVED 

## OCT 192011 DiviSion Dlrcctor ,3APCrO)



### I ampleased to submitthe enclosedrevisionto the State ofDelaware's State Implementation Plan (SIP). Therevision is to 7DEAdmin. Code 1125

- REQUIREMENTS FOR PRECONSTRUCTIONREVIEW, Section 3.0

- Prevention ofSignificantDeterioration ofAir Quality. The amendmentsto 1125 requirepermitting considerationofGreenhouse Gas (GHG) emitting sources beginning January 2, 2011, that emit orhavethepotential to emit 75,000 tons per year or 100,000tonsperyear ofC02

### e. This revisioniseffective December 11,2010. Therequirements ofthe CAA Section 11O(a)(2)(A)have beenmetthroughthe normal publichearingprocess establishedbythe State ofDelaware withpropernotification (30 days) prior to the convening ofthe public hearing. Attachments A andB are copies ofaffidavits asproofof propernotification. Itis theposition ofthe State ofDelawarethat all minimumrequirements set forth inthe 1990 CleanAirActAmendments have beenmet. We look forward to continuingthe cooperative effortbetweenDelaware and EPA inthis important work. As always, feel free to contactme orAli Mirzakhalili, Director, Division ofAir Quality, (302) 739-9402, ifyou have anyquestions concerningthe enclosed documents.

Enclosures

cc: AimeHowell, 

### wlo encl. DianaEsher, EPA wlencl. Ali Mirzakhalili

## S~ r

# ~~i!(2:J Secretary

### 1100 Air Quality Management Section 1125 Requirements for Preconstruction Review 12111/10 1.0 General Provisions 1.1
1.2

1.3

1.4

1.5

1.6 Requirements of this regulation are in addition to any other requirements of the State of Delaware Regulations Governing the Control ofAir Pollution. Any stationary source which will impact an attainment area or an unclassifiable area as designated by. the U.S. Environmental Protection Agency (EPA) pursuant to Section 107 of the Clean Air Act Amendments of 1990 (CAA), is subject to the provisions of 3.0 of this regulation, Prevention ofSignificant Deterioration (PSD). Any stationary source which will impact a non-attainment area as designated by the EPA pursuant to Section 107 of the CAA is subject to 2.0 of this regulation, Emission Offset Provisions (EOP). A source may be subject to PSD for one pollutant and to EOP for another pollutant, or may affect both attainment or unclassifiable areas and a non-attainment area for the same pollutant. Any emission limitation represented by Lowest Achievable Emission Rate (LAER) may be imposed by the Department pursuant to regulations adopted under 2.0 of this regulation herein notwithstanding any emission limit specified elsewhere in 7 DE Admin. Code 1100 Regulations Goveming the Control ofAir Pollution. Any emission limitation represented by Best Available Control Technology (BACT) may be imposed by the Department pursuant to regulations adopted under 3.0 of this regulation herein notwithstanding any emission limit specified elsewhere in 7 DE Admin. Code 1100, Regulations Goveming the Control ofAir Pollution. 1.7 No stationary source shall be constructed unless the applicant can substantiate to the Department that the source will comply with any applicable emission limit or New Source Performance Standard or Emission Standard for a Hazardous Air Pollutant as set forth in 7

.._. ___ [)E**AcI!'Iin.<:qde110QJ~e.9l[lllJions** GOILE!llJll19thE! CQn.troLQfAir Pollution.

__ 1.8 Any stationary source that implements, for the purpose of gaining relief from 3.0 of this regulation, by any physical or operational limitation on the capacity of the source to emit a pollutant, including (but not limited to) air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design and the limitation or the effect it would have on emissions is enforceable, not Withstanding any emission limit specified elsewhere in 7 DE Admin. Code 1100 Regulations Governing the Control ofAir Pollution. If a source petitions the Department for relief from any resulting limitation described above, the source is subject to review under 2.0 and 3.0 ofthis regulation as though construction had not yet commenced on the source or modification. 1.9 Definitions
- Forthe purposes ofthis regulation "Actual Emissions" means the actual rate of emissions ofa pollutant from an emission unit, as determined in accordance with the three subparagraphs below. In general, actual emissions as of a particular date shall equal the average rate, in tons peryear, atwhich the unit actually emitted the pollutant during a two-year period which precedes the particular date and which is representative of normal source operation. The Department shall allow the use of a .different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, productionrates, and types of materials processed, stored, or combusted during the selected time period. • The Department may presume that source-specific allowable emissions for the unit are equivalent to the actual emissions ofthe unit. For any emissions unit, which has not begun normal operations on the particular date, actual emissions shall equal the potential to emit ofthe uniton that date. "Allowable Emissions" means the emissions rate of a stationary source calculated using the maximum rated capacity of the source (unless the source is subject to enforceable limits, which restrict the operating rate, or hours of operation, or both) and the most stringent ofthe following: The applicable standards as setforth in 7 DE Admin. Code 1120 and 1121; Other applicable Delaware State Implementation Plan emissions limitations, including those with a future compliance date; or The emissions rate specified as an enforceable permit condition, including those with a future compliance date. "Baseline Area" means any intrastate area (and every part thereof) designated as attainment or unclassifiable in which the major source or major modification establishing the baseline date would construct orwould have an air quality impact equal to or greater than one !-Ig/m3 (annual average) of the pollutant for which the baseline date is established. • Area redesignations cannot intersect or be smallerthan the area of impact ofany majorstationary source or major modification which: Establishes a baseline date, or Is subjectto this regulation. "Baseline Concentration" means that ambient concentration level which exists in the baseline area at the time of the applicable baseline date. A baseline concentration is determined for each pollutant forwhich a baseline date is established and shall include:

_ .. -------------- --- ------ - ----- ------- The actual emissions representative of sources in existence on the applicable baseline date, exceptas listed under Exceptions below. The allowable emissions of major stationary sources which commenced construction before January 6, 1975, but were not in operation by the applicable baseline date. Exceptions: The following will not be included in the baseline concentration and will affect the applicable maximum allowable increase or increases: • Actual emissions from any major stationary source on which construction commenced after January 6, 1975; and Actual emissions increases and decreases at any stationary source occurring afterthe baseline date. "Baseline Date" Baseline Date means the earliest date after August 7, 1977, on which the first complete application is submitted by a major stationary source or major modification subjectto the requirements of3.0 ofthis regulation. Baseline date means the earliest date after August 7, 1977, but before the effective date ofthis regulation, on which the first complete application by a major stationary source or major modification which would have been subject to therequirements of 3.0 of this regulation if application were submitted after the effective date ofthis regulation. The baseline date is established for each pollutant for which increments or other equivalent measures have been established if: The area in which the proposed source or modification would construct is deSignated as attainment or unclassifiable for the pollutant on the date of its complete application under 1.0 ofthis regulation; and • In the case of a major stationary source, the pollutant would be emitted in significant amounts, or, in the case of a major modification, there would be a significant net emissions increase ofthe pollutant "Begin Actual Construction" means, in general, initiation of physical on-site construction activities on an emissions unit which are of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying underground pipework and construction of permanent storage structures. With respect to a change in method of operations, this term refers to those on-site activities other than preparatory activities which mark the initiation ofthe change. "Best Available Control Technology (BACT)" means an emissions limitation (including a visible emission standard) based on the maximum degree of reduction for each pollutant subject to regulation under CM which would be emitted from any proposed major stationary source or major modification which the Department, on a case-by-case basis, takes into account energy, environmental, and economic impacts and other costs, determines is achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel combustion techniques for control of such pollutant In no event shall application of best available control technology result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 7 DE Admin. Code 1120 and 1121. Ifthe Department determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emiss,ions standard infeasible. a design, equipment, work practice, operational standard, or combination thereof, may be prescribed instead to satisfy the requirement for the application of best available control technology. Such standard shall, to the degree possible, set forth the emissions redUction achievable -b}'-lmplehfentaflon of-such deSign,**equlpmerit~ w~-­**  practice or operation, and shall provide for compliance by means which achieve equivalent results. "Building, Structure, Facility, or Installation" means all of the pollutant-emitting activities which 'belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control). Pollutant-emitting activities shall be considered as part ofthe same industrial grouping ifthey belong to the same "Major Group" (i.e., which have the same first two digit code) as described in the Standard Industrial Classification Manual, 1972, as amended by the 1977 Supplement (U.S. Govemment Printing Office stock numbers 4101-0066 and 003-005-00176-0, respectively). For purposes of 2.0 ofthis regulation, this definition shall apply only to the "Building, Structure or Facility". "Commence" as applied to construction of a major stationary source or major modification means that the owner or operator has all necessary preconstruction approvals or permits and either has: Begun, or caused to begin, a continuous program of actual on-site construction ofthe source, to be completed within a reasonable time; orName Entered into binding agreements or contractual obligations, which cannot be canceled or modified without substantial loss to the owner or operator, to undertake a program ofactual construction ofthe source to be completed within a reasonable time. "Complete" means, in reference to an application for a permit, that the application contains all ofthe information necessary for processing the application. "Construction" means any physical change or change in the method of operation (including fabrication, erection, installation, demolition or modification of an emissions unit) which would result in a change in actual emissions. "Emissions Unit" means any part of a stationary source which emits or would have the potential to emit any pollutant subjectto regulation underthe CM. "Enforceable" means any standard, requirement, limitation or condition established by an applicable federal or state regulation or specified in a permit issued or order entered thereunder, or contained in a SIP approved by the Administrator of the U.S. Environmental Protection Agency (EPA), and which can be enforced by the Department and the Administratorofthe EPA. "Fugitive Emissions" means those emissions which could not reasonably pass through a stack, chimney, vent, orotherfunctionally equivalent opening. "Fixed capital cost" means the capital needed to provide all the depreciable components. "Greenhouse Gases (GHG)" means an air pollutant composed ofan aggregate group of six greenhouse gases; carbon dioxide (C02), nitrous oxide (N20), methane (CH.), hydrofluorocarbons (HFC), perfluorocarbons (PFC), and sulfur hexafluoride (SF6). Forthe purposes ofthis regulation, the term C02equivaient emissions (C02e) shall represent an amount ofGHG emitted, and shall be computed as follows; • Multiply the mass amount of emissions (tpy), for each of the six greenhouse gases in the pollutant GHG by the gases associated global warming potential as shown in Table 1-1 ofthis regulation. Sum the resultant value for each gas to compute a tpy C02e Table 1-1 GLOBAL WARMING POTENTIALS CAS No. Chemical formula Global warming potential (100 yr.) Carbon dioxide 124-38-9 CO2 1 Methane 74-82-8 CH. 21 Nitrous oxide 10024-97-2 N20 310 HFC-23 75--46-7 CHF3 11,700 HFC-32 75-10-5 CH2F 2 650 HFC--41 593-53-3 CH3F 150 HFC-125 354-33-6 C2HF5 2,800 HFC-134 359-35-3 C2H2F. 1,000 HFC-134a 811-97-2 CH2FCF3 1,300 HFC-143 430-86-0 C2H3 F

3 300HFC-143a HFC-152 HFC-152a HFC-161 HFC-227ea HFC-236cb HFC-236ea HFC-236fa HFC-245ca HFC-245fa HFC-365mfc HFC-43-10mee Sulfur hexafluoride PFC-14 (Perfluoromethane) 420-46-2 624-72--6 75-37--6 353-36--6 431-89-0 677-56-5 431--63-0 690-39-1 679-86-7 460-73-1 406-58--6 138495-42-8 2551--62-4 75-73-0 C2H3 F

3 CH2FCH2F CH3 CHF2 CH3 CH2F C3 HF7 CH2FCF2CF3 CHF2CHFCF3 C3 H2F. C3 H3 F

S CHF2CH2CF3 CH3 CF2CH2CF3 CF3 CFHCFHCF2CF3 SF. CF4 PFC-116 76-16-4 C2F. (Perfluoroethane) PFC-218 76-19-7 C3F8 (perfluoropropane) Perfluorocyclopropane 931-91-9 PFC-3-1-10 (Perfluorobutane) 355-25-9 Perfluorocyclobutane 115-25-3 PFC-4-1-12 (Perfluoropentane) PFC--5-1-14 (Perfluorohexane) 678-26-2 355-42-0 3,800 53 140 12 2,900 1,340 1,370 6,300

560 1,030 794 1,300 23,900 6,500 9,200 7,000 17,340 7,000 8,700

.__ ... ----- 7,500 7,400 PFC-9-1-18 306-94-5 C10F18 7,500 - --- - ----------

"Innovative Control Technology" means 

### any system ofair pollution control that has not been adequately demonstrated in practice, but would have a substantial likelihood of achieving greater continuous emissions reduction than 

### any control system in current practice or of achieving at least comparable reductions at lower cost in terms of energy economics, or non-airquality environmental impacts. "Lowest Achievable Emission Rate" (LAER) means the same as defined in 7 DE Admin. Code 1101, "Definitions and Administrative Principles". "Major Modification" • Major modification means 

### any physical change or change in the method ofoperation of a major stationary source that would result in a significant net emissions increase of

### any pollutant subject to regulation underthe CAA.Any net emissions increase that is significant for either volatile organic compounds or nitrogen oxides shall be considered significant for ozone. A physical change orchange in the method ofoperation shall not include: Routine maintenance, repair and replacement; Use of an alternative fuel or raw material by reason of an order under sections 2(a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the Federal PowerAct; Use ofan alternative fuel by reason ofan order or rule under Section 125 ofthe 

### CAA; Use ofan alternative fuel at a steam-generating unit to the extent that the fuel is generated from municipal solid waste; Use ofan alternative fuel or raw material by a stationary source which: • The source was capable of accommodating before January 6, 1975; unless such change would be prohibited under any previously issued permit condition which was established afterJanuary 6, 1975; The source is approved to use under any previously issued PSD permit or under 3.0 ofthis regulation; • An increase in the hours of operation or in the production rate, unless such change would be prohibited under any previously issued permit condition which was established afterJanuary 6, 1975; Any change in ownership ata stationary source. "MajorStationary Source"
- See 2.2 and 3.1 ofthis regulation. "Necessary Preconstruction Approvals or Permits" means those permits or approvals required under Delaware airquality control laws and regulations. "Net Emissions Increase' Net emissions increase means the amount by which the sum of the following**~<!xceeds** 

### zero:**~** u**~ ~---~** **~ ~---------~-~.**  • Any increase in actual emissions from a particular physical change or change in method ofoperation at a stationary source; and Any other increases and decreases in actual emissions at the source that are contemporaneous with the particular change and are otherwise creditable. An increase or decrease in actual emissions is contemporaneous with the increase from the particular change only ifit occurs between: The date five years before construction on the particular change commences; and The date that the increase from the particularchange occurs. An increase or decrease in actual emissions is creditable only ifthe Department has not relied on it in issuing a permit for the source under this regulation, which permit is in effect when the increase in actual emissions from the particular change occurs. An increase or decrease in actual emissions of sulfur dioxide or particulate matter which occurs before the applicable baseline date is creditable only if it is required to be considered in calculating the amount of maximum allowable increases remaining available.An increase in actual emissions is creditable only to the extent that the new level ofactual emissions exceeds the old level. A decrease in actual emissions is creditable only to the extent that: The old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level ofactual emissions; • It is enforceable at and after the time that actual construction on the particular change begins; and It has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. It has not been adopted by the Department as a required reduction to be made part of the SIP or it is not required by the Department pursuant to an existing requirement ofthe SIP. An increase that results from a physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days. "Ozone Transport Region" means the region designated by section 184 of the federal Clean Air Act and comprised of the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and the Consolidated Metropolitan Statistical Area that includes the District of Columbia and northem Virginia. "Permanent" (Reductions) means that the actual emission reductions submitted to the Department for certification have been incorporated in a permit ora permit condition or, in the case of a shutdown, the permit to operate for the emission unit or units has been voided. "Potential to Emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity ofthe source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, ·storecCor processoo.shall beTreafedas part of its**~**desigri ifthe limitation or the effect it

would have on emissions is enforceable. Secondary emissions do not count in determining the potential to emit ofa stationary source. "Quantifiable" (Reductions) means that the amount, rate and characteristics of emission reductions can be determined by methods that are considered reliable by the Department and the Administrator ofthe EPA. "Real" (Reductions) means reductions in actual emissions released into the atmosphere. "Reconstruction" will be presumed to have taken place where the fixed capital cost of the new components exceeds 50% ofthe fixed capital cost of a comparable entirely new stationary source. Any final decision as to whether reconstruction has occurred shall be made in accordance with the provisions of 40 CFR**60.15(f)(1)~(3).** A reconstructed stationary source will be treated as a new stationary source for purposes of this regulation. In determining lowest achievable emission rate (LAER) for a reconstructed stationary source, the provisions of 40 CFR 60.15(f)(4) shall be taken into account in assessing whether a new source performance standard is applicable to such stationary source. "Secondary Emissions" means emissions which would occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the majorstationary source or major modification itself. For the purpose ofthisregulation, secondary emissions must be specific, well defined, quantifiable, and impact the same general area as the stationary source or modification which causes the secondary emissions. Secondary emissions may include, but are not limited to: Emissions from ships, trains, or other vehicles coming to or from the new or modified stationary source; and Emissions from any offsite support facility or facilities which would not otherwise be constructed or increase its emissions as a result of the construction or operation ofthe majorstationary source or major modification. "Significant" (a) "Significant" means, in reference to a net emissions increase or the potential of a source to emit any of the following pollutants, a rate of emissions that would equal or exceed any ofthe following rates: Pollutant and Emissions Rate Carbon monoxide: 100 tons peryear (TPY) Sulfurdioxide: 40 TPY Particulate matter: 25 TPY Ozone: New Castle and Kent Counties
- 25 TPY ofeither volatile organic compounds or nitrogen oxides" Sussex County
- 40 TPY ofeither volatile organic compounds or nitrogen oxides" Lead: 0.6 TPY Asbestos: 

### 0.007 TPY Beryllium: 

### 0.0004 TPY Mercury: 0.1 TPY

. VfriYlcFilorid"e:·HPY .-

Fluorides: 3 TPY Sulfuric acid mist: 7 TPY Hydrogen sulfide (H2S): 10 TPY Total reduced sulfur (including H2S): 10 TPY Reduced sulfurcompounds (including H2S): 10 TPY PM lO particulate: 15 TPY "Note: Increases in net emissions shall not exceed 25 tons per year in New Castle and Kent Counties, or 40 tons per year in Sussex, when aggregated with all other net increases in emissions from the source over any period of five consecutive calendar years which includes the calendar year in which such increases occur. No part of the five consecutive years shall extend before January 1, 1991. (b) "Significant' means, in reference to a net emissions increase or the potential of a source to emit a pollutant subject to regulation underthe CM that (a) does not list, any emissions rate.(c) Notwithstanding (a), "significant" means any emissions rate or any net emissions increase associated with a major stationary source or major modification, which would construct within ten kilometers of a Class I area, and have an impact on such area equal to or greaterthan one !lg/m3, (24-hour average). "Stationary Source" means any building, structure, facility or installation which emits or may emit any air pollutant subject to regulation under the CAA. "Subject to Regulation" means, for any air pollutant, that the pollutant is subject to either a provision in the Clean Air Act, or a nationally-applicable regulation codified by EPA, 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 GHG shall not be subject to regulation except as follows: (a) Beginning January 2, 2011, the pollutant GHG shall be subject to regulation if: The stationary source is a new major stationary source for any pollutant subject to regulation under the CAA that is not GHG and also will emit or will have the potential to emit 75,000 tpy C02e or more; or The stationary source is an existing major stationary source for any pollutant subject to regulation under the CAA that is not GHG and also will have an emissions increase ofthat pollutant and an emissions increase of 75,000 tpy C02e or more: and, in addition, (b) Beginning July 1, 2011, the pollutant GHG also shall be subject to regulation: At a new stationary source that will emit or have the potential to emit 100,000 tpy C02e: or • At an existing stationary source that emits or has the potential to emit 100,000 tpy C02e when such stationary source undertakes a physical change or change in the method of operation that will result in an emissions increase of75,000 tpy C02e or more. The term emissions increase, as used above, shall mean that both a significant emissions Increase and a slgnfficanfiief

## emTsSfonslrlcreaseoccuT
u

- "Surplus" (Reductions) means actual emission reductions below the baseline (see 2.5.2 of this regulation) not required by regulations or proposed regulations, and not used by the source to meet any state or federal regulatory requirements. 14 DE Reg. 579 (12/01/10)
0811112005 2.0 Emission Offset Provisions (EOP) 2.1 Applicability
- The provisions of2.0 ofthis regulation shall apply to any person responsible for any proposed new majorstationary source or any proposed major modification. 2.2 For purposes of2.0 ofthis regulation, "majorstationary source" means: 2.2.1 Any stationary source of air pollutants which emits, or has the potential to emit, 100 tons per year or more ofany pollutant subject to regulation under the Clean AirAct, except for eithervolatile organic compound or nitrogen oxides, or 2.2.2 Any stationary source of air pollutants which emits, or has the potential to emit either volatile organic compounds or nitrogen oxides in the following amounts:2.2.2.1 For areas in ozone attainment, ozone marginal, or ozone moderate nonattainment areas and located in the ozone transport region
- 50 tons per year volatile organic compounds or 100 tons peryear ofoxides of nitrogen, or 2.2.2.2 For serious ozone nonattainment areas - 50 tons per year of either volatile organic compounds oroxides of nitrogen, or 2.2.2.3 For severe ozone nonattainment areas - 25 tons per year of either volatile organic compounds oroxides of nitrogen, or 2.2.2.4 For extreme ozone nonattainment areas - 10 tons per year of either volatile organic compounds oroxides of nitrogen. 2.2.3 Any physical change that would occur at a stationary source not qualifying under 2.2.1 or 2.2.2 of this regulation as a major stationary source, if the change would constitute a major stationary source by itself, or 2.2.4 A major stationary source that is major for either volatile organic compounds or nitrogen oxides shall be considered majorfor ozone, and "installation" means an identifiable piece of process, combustion or incineration equipment. 2.3 For the purposes of2.4 and 2.5 ofthis regulation, emission units located in areas designated as attainment or marginal nonattainment areas that are located within the ozone transport region shall be considered located in a moderate ozone nonattainment area. 2.4 Conditions for Approval
- No person subject to the provisions of 2.1 of this regulation shall install a major stationary source ofvolatile organic compounds orof nitrogen oxides, or make a major modification to a source which will cause orcontribute to any violation ofthe national ambient air quality standards for ozone within an area of non-attainment for that pollutant unless the fOllowing conditions are met: 2.4.1 The new major source or the major modification is controlled by the application of lowest achievable emission rate (LAER) control technology. 2.4.2 All existing sources in the State owned or controlled by the owner ofthe proposed new or modified source are in compliance with the applicable local, State and federal regulations or are in compliance with a consent order specifying a schedule and timetable for compliance.

----**-~··~."1j-:3--,trenewllrmudifie"dsource** rnustsatisfythefollowing offsetrequirements:- 2.4.3.1 The ratio of total actual emissions reductions of volatile organic compounds or nitrogen oxides to total allowable increased emissions of volatile organic compounds or nitrogen oxides shall be: 2.4.3.1.1 For moderate ozone nonattainment areas, 1.15 to 1, or 2.4.3.1.2 For serious ozone nonattainment areas, 1.2 to 1, or 2.4.3.1.3 Forsevere ozone nonattainment areas, 1.3 to 1, or 2.4.3.1.4 Forextreme ozone nonattainment areas, 1.5 to 1. 2.4.3.2 All offsets shall be federally enforceable at the time of application to construct and shall be in effect by the time the new or modified source commences operation. 2.4.4 The application for construction permit pursuant to 7 DE Admin. Code 1102 shall include an analysis of alternative sites, sizes, production processes and environmental control techniques for such proposed source which demonstrates that benefits of the proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or modification.2.4.5 Public participation for the construction permit shall be pursuant to 12.3 or 12.4 and 12.5 of7 DE Admin. Code 1102. 2.5 Criteria for Emission Reductions Used as Offsets 2.5.1 All emission reductions claimed as offset credits shall be real, surplus, permanent, quantifiable, and federally enforceable; 2.5.2 The baseline for determining credit for emissions reductions shall be the lower of actual or allowable emissions. The offset credit shall only be allowed for emission reductions made below the baseline; 2.5.3 Emission reductions claimed as offsets shall have occurred on orafterJanuary 1,1991; 2.5.4 Credit for an emission reduction may be claimed for use as an offsetto the extentthat the Department has not relied on it in issuing any permit under this regulation and has not relied on it for demonstration ofattainment or reasonable further progress; 2.5.5 Emission reductions shall not be used as offsets in an area with a higher nonattainment classification than the one in which they were generated. 2.5.6 Emission reductions claimed as offsets by a source must be generated from within the same nonattainment area or from any other area that contributes to a violation of the ozone National Ambient Air Quality Standard in the nonattainment area which the source is located. 2.6 Emission reductions generated in a state other than Delaware and which are placed in the emissions bank established pursuant to 7 DE Admin. Code 1134 may be used as offsets provided they are federally enforceable and meet, at a minimum, all the provisions of 7 DE Admin. Code 1134 and 2.5.5, and 2.5.6 ofthis regulation.
08/11/2005 3.0 Prevention ofSignificant Deterioration ofAir Quality 3.1 Definitions
- Forthe purposes of 3.0 ofthis regulation: "MajorStationary Source" means: Any oftI!e..f9llewiRlrstaoonaF)· sauFOOS ofair-pollutants wl1iel1 €mits-or-nas-the poteA tial to emit, 100 tons peryear or more ofany pollutant subject to regulation underthe CAA: Fossil fuel-fired steam electric plants of more than 250 million British thermal units per hour heat input, coal cleaning plants (with thermal dryers), kraft pulp mills, portland cement plants, primary zinc smelters, iron and steel mill plants, primary aluminum ore reduction plants, primary copper smelters, municipal incinerators capable ofcharging more than 250 tons ofrefuse per day, hydrofluoric, sulfuric, and nitric acid plants, petroleum refineries, lime plants, phosphate rock processing plants, coke oven batteries, sulfur recovery plants, carbon black plants (furnace process), primary lead smelters, fuel conversion plants, sintering plants, secondary metal production plants, chemical process plants, fossil fuel boilers (or combinations thereof) totaling more than 250 million British thermal units per hour heat input, petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels, taconite ore processing plants, glass fiber processing plants, and charcoal production plants; • Notwithstanding the stationary source size specified in the above paragraph, any stationary source which emits, or has the potential to emit, 250 tons per year or more of any air pollutant subject to regulation underthe CAA; or • Any physical change that would occur at a stationary source not otherwise qualifying under the preceding paragraph as a major stationary source, if the change would constitute a majorstationary source by itself.A major stationary source that is major for volatile organic compounds or nitrogen oxides shall be considered majorfor ozone. 3.2 Ambient Air Increments. In areas designated as Class I, II or III, increases in pollutant concentration overthe baseline concentration shall be limited to the following: Maximum allowable increase (Micrograms percubic meter) Class I Pollutant Total suspended particulates: Annual geometric mean 24-hour maximum Sulfur dioxide: Annual arithmetic mean 24-hour maximum Three-hour maximum

Class" Pollutant Total suspended particulates: Annual geometric mean 24-hour maximum Sulfur dioxide: Annual arithmetic mean 24-hour maximum Three-hour maximum 

### 5 10

2 

### 5
25

19 

### 37



### 20
91 512Class III
Total suspended particulates: Annual geometric mean 37 24-hour maximum 75 Sulfurdioxide: Annual arithmetic mean 40 24-hour maximum 182 Three-hour maximum 700

For any period other than an annual period, the applicable maximum allowable increase may be exceeded during one such period per year at anyone location. 3.3 Ambient Air Ceilings. No concentration ofa pollutantshall exceed: 3.3.1 The concentration permitted under the national secondary ambient air quality standard, or 3.3.2 The concentration permitted under the national primary ambient air quality standard, whichever concentration is lowest forthe pollutant for a period ofexposure. 3.4 Restrictions on Area Classification. 3.4.1 All Areas in the State of Delaware are designated Class II, but may be redesignated as provided in 40 CFR 52.51(g)

. ...•---..**~-** ...•.**---~** 3.4.2 The following areas may be redesignated only as Class I: 3.4.2.1 Bombay Hook National Wildlife Refuge; and 3.4.2.2 A national park or national wilderness area established after August 7, 1977 which exceeds 10,000 acres in size. 3.5 Exclusions from Increment Consumption 3.5.1 Upon written request of the governor, made after notice and opportunity for at least one public hearing to be held in accordance with procedures established by the State of Delaware, the Department shall exclude the following concentrations in determining compliance with a maximum allowable increase: 3.5.1.1

3.5.1.2 Concentrations attributable to the increase in emissions from stationary sourees which have converted from the use ofpetroleum products, natural gas, or both by reason of an order in effect under sections 2(a) and 2(b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) overthe emissions from such sources before the effective date ofsuch an order; Concentrations attributable to the increase in emissions from sources which have converted from using natural gas by reason of a natural gas curtailment plan in effect pursuant to the Federal Power Act over the emissions from such sources before the effective date ofsuch plan;

## • 3.5.1.3 Concentrations of particulate matterattributable to the increase in emissions from construction or other temporary emission-related activities of new or modified sources; 3.5.2 No exclusion of such concentrations shall apply more than five years after the effective date ofthe order to which 3.5.1.1 ofthis regulation refers or the plan to which 3.5.1.2 of this regulation refers, whichever is applicable. If both such order and plan are applicable, no such exclusion shall apply more than five years afterthe later ofsuch effective dates. 3.6 Stack Heights The provisions of 7 DE Admin Code 1127
- STACK HEIGHTS, are applicable to 3.6 of this regulation. 3.7 Review of Major Stationary Sources and Major Modifications
- Source Applicability and Exemptions. 3.7.1 No stationary source or modification to which the requirements of3.8 through 3.15 ofthis regulation apply shall begin actual construction without a permit which states that the stationary source or modification would meet those requirements. The Department has authority to issue any such permit. 3.7.2 The requirements of3.8 through 3.15 ofthis regulation shall apply to any majorstationary source and any major modification with respect to each pollutant subject to regulation underthe CMthat it would emit, except as 3.0 ofthis regulation otherwise provides. 3.7.3 The requirements of3.8 through 3.15 ofthis regulation apply only to any major stationary source or major modification that would be constructed in an area designated as attainment or unclassifiable. 3.7.4 The requirements of 3.8 through 3.15 of this regulation shall not apply to a particular majorstationary source or major modification, if: 3.7.4.1 The source or modification would be a nonprofit health or nonprofit educational institution, or a major modification would occur at such an institution, and the governor requests that it be exempt from those requirements; or 3.7.4.2 The source or modification would be a major stationary source or major modification only if fugitive emissions, to the extent quantifiable, are considered In calculating the potential to el'i'litOfthe stationary source or modification**a'~n"'dHt"'h"'e----­** source does not belong to any ofthe following categories: 3.7.4.2.1 Coal cleaning plants (with thermal dryers); 3.7.4.2.2 3.7.4.2.3 3.7.4.2.4 3.7.4.2.5 3.7.4.2.6 3.7.4.2.7 3.7.4.2.8 Kraft pulp mills; Portland cement plants; Primary zinc smelters; Iron and steel mills; Primary aluminum ore reduction plants; Primary copper smelters; MuniCipal incinerators capable of charging more than 250 tons of refuse per day; 3.7.4.2.9 Hydrofluoric, sulfuric, or nitric acid plants; 3.7.4.2.10 Petroleum refineries; 3.7.4.2.11 Lime plants; 3.7.4.2.12 Phosphate rock processing plants;3.7.4.2.13 Coke oven batteries; 3.7.4.2.14 Sulfur recovery plants; 3.7.4.2.15 Carbon black plants (furnace process); 3.7.4.2.16 Primary lead smelters; 3.7.4.2.17 Fuel conversion plants; 3.7.4.2.18 Sintering plants; 3.7.4.2.19 Secondary metal production plants; 3.7.4.2.20 Chemical process plants; 3.7.4.2.21 Fossil-fuel boilers (or combination thereof) totaling more than 250 million British thermal units per hour heat input: 3.7.4.2.22 Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; 3.7.4.2.23 Taconite ore processing plants; 3.7.4.2.24 Glass fiber processing plants; 3.7.4.2.25 Charcoal production plants; 3.7.4.2.26 Fossil fuel-fired steam electric plants of more than 250 million British thermal units per hour heat input; 3.7.4.2.27 Any other stationary source category which, as of August 7, 1980, is being regulated undersection 111 or 112 ofthe CM; or 3.7.4.3 The source is a portable stationary source which has previously received a permit under3.0 ofthis regulation, and, 3.7.4.3.1 The owner or operator proposal to relocate the source and emissions ofthe source at the new location would be temporary; and 3.7.4.3.2 The emissions from the source would not exceed its allowable emissions; and -··-··-·--------33-:T.7:4:3c3-i'he<lmissions-irom-tlie SOUice would impact 110 Class I alea alld 110 alea where an applicable increment is known to be violated; and 3.7.4.3.4 Reasonable notice is given to the Department prior to the relocation identifying the proposed new location and the probable duration ofoperation at the new location. Such notice shall be given to the Department not less than 10 days in advance of the proposed relocation unless a different time duration is previously approved by the Department. 3.7.5 The requirements of 3.8 through 3.15 of this regulation shall not apply to a major stationary source or major modification with respect to a particular pollutant if the owner oroperator demonstrates that, as to that pollutant, the source or modification is located in an area designated as non-attainment. 3.7.6 The requirements of 3.9, 3.11, and 3.13 of this regulation shall not apply to a major stationary source or major modification with respect to a particular pollutant, if the allowable emissions of that pollutant from the source, or the net emissions increase of that pollutant from the modification: 3.7.6.1 Would impact no Class I area and no area where an applicable increment is known to be violated, and 3.7.6.2 Would be temporary.3.7.7

.The Department may exempt a stationary source or modification from the requirements of3.11 ofthis regulation with respect to monitoring for a particular pollutant if: 3.7.7.1 The emissions increase ofthe pollutant from the new source or the net emissions increase of the pollutant from the modification would cause, in any area, air quality impacts less than the following amounts: Carbon monoxide: 575 ug/m3

, eight-hour average; Nitrogen dioxide: 14 ug/m3

, annual average; Total suspended particulate: 10 ug/m3

, 24-hour average; Sulfurdioxide: 13 ug/m3

, 24-houraverage; Ozone: (See Note 1) Lead: 0.1 ug/m3

, 24-houraverage; Mercury: 0.25 ug/m3

, 24-hour average; Beryllium: 0.0005 ug/m3

, 24-houraverage; Fluorides: 0.25 ug/m3

, 24-houraverage; Vinyl chloride: 15 ug/m3

, 24-houraverage; Total reduced sulfur: 10 ug/m3

, one-hour average; Hydrogen sulfide: 0.04 ug/m3

, one-hour average; Reduced sulfur compounds: 10 ug/m3

, one-houraverage; PM lO particulate: 10 ug/m3

, 24-hour average [Note 1: No de minimus air quality level is provided for ozone. However, any net increase of 100 tons per year or more of volatile organic compounds or nitrogen oxides subject to PSD would be required to perform an ambient impact analysis including the gathering ofambient air quality data.] 3.7.7.2 The concentrations of the pollutant in the area that the source or modification would affect are less than the concentrations listed in 3.7.7.1 ofthis regulation, or**--------------------~I~Ae~pOU~~~.1HO*f~I~Ai~s~re~g~~~la~l~io~R~.----------------** 3.8 Control Technology Review 3.8.1 A major stationary source or major modification shall meet each applicable emissions limitation ofthe State of Delaware's Air Pollution Control Regulations. 3.8.2 A new major stationary source shall apply best available control technology for each pollutant subject to regulation under the CAA that it would have the potential to emit in significant amounts. 3.8.3 A major modification shall apply best available control technology for each pollutant subject to regulation underthe CAA forwhich itwould result in a significant net emissions increase at the source. This requirement applies to each proposed emissions unit at which a net emissions increase in the pollutant would occur as a result of a physical change orchange in the method ofoperation in the unit. 3.8.4 For phase construction projects, the determination of best available control technology shall be reviewed and modified as appropriate atthe latest reasonable time which occurs no later than 18 months prior to commencement of construction of each independent phase of the project. At such time, the owner or operator of the applicable stationary source may be required to demonstrate the adequacy of any previous determination of best available control technology forthe source.

### •
3.9 Source Impact Analysis. The owner or operator ofthe proposed source or modification shall demonstrate that allowable emission increases from the proposed source or modification, in conjunction with all other applicable emissions increases or reductions (including secondary emissions), would not cause or contribute to air pollution in violation of: 3.9.1 Anynational ambient air quality standard in anyair quality control region; or 3.9.2 Anyapplicable maximum allowable increase overthe baseline concentration in anyarea. 3.10 Air Quality Models. 3.10.1 All estimates of ambient concentrations required under 3.0 of this regulation shall be based on the applicable air quality models, databases, and other requirements specified in the "Guideline on Air Quality Models" (OA-QPS 1.2-080, U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards, Research Triangle Park, N.C. 27711, April, 1978 or its subsequent revisions). This document is incorporated by reference. 3.10.2 When an air quality impact model specified in the "Guideline on Air Quality Models" is inappropriate, the model may be modified or another model substituted. Such a change must be subject to the notice and opportunity for public comment under 3.15 of this regulation. Written approval of the Department must be obtained for any modification or substitution. Methods like those outlined in the 'Workbook for the Comparison of Air Quality Models" (U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards, Research Triangle Park, N.C. 17711, May, 1978 or its subsequent revisions) should be used to determine the comparability ofair quality models. 3.11 Air QualityAnalysis 3.11.1 Preapplication Analysis. 3.11.1.1 Anyapplication for a permn under 3.0 ofthis regulation shall contain an analysis of ambient air quality in the area that the major stationary source or major modification would affect for each ofthe following pollutants: 3.11.1.1.1 For the source, each pollutant that it would have the potential to emit in a significant amount; 3.11.1.1.2 For the modification, each pollutant for which it would result in a significant ne/emissioAs iAcrease.

....__.- 3.11.1.2 With respect to any such pollutant for which no National Ambient Air Quality Standard exists, the analysis shall contain such air quality monitoring data as the Department determines is necessary to assess ambient air quality for that pollutant in anyarea that the emissions ofthat pollutantwould affect. 3.11.1.3 With respect to any such pollutant (other than non-methane hydrocarbons) for which such a standard does exist, the analysis shall contain continuous air quality monitoring data gathered for purposes of determining whether emissions of that pollutant would cause or contribute to a violation of the standard or any maximum allowable increase. 3.11.1.4 In general, the continuous air quality monitoring data that is required shall have been gathered over a period of at least one yearand shall represent at least the year preceding receipt of the application, except that, if the Department determines that a complete and adequate analysis can be accomplished with monitoring data gathered over a period shorter than one year (but not to be less than four months), the data that is required shall have been gathered over at least that shorter period. 3.11.1.5 The owner or operator ofa proposed stationary source or modification ofvolatile organic compounds or nitrogen oxides who satisfies all ofthe following conditionsmay provide post-approval monitoring data for ozone in lieu of providing preconstruction data as required under 

### 3.11.1 ofthis regulation. Condition 1: The new source is required to meet an emission limitation which specifies the lowest achievable emission rate for such source. Condition 

### 2: The applicant must certifY that all existing major sources owned or operated by the applicant (or any entity controlling, controlled by, or under common control with the applicant) in Delaware are in compliance with all applicable emission limitations and standards under the CAA (or are in compliance with an expeditious schedule approved by the Department). Condition 3: Emission reductions ("offsets") from existing sources in the area of the proposed source (whether or not under the same ownership) are required such that there will be reasonable progress toward attainment of the applicable NAAQS. Only intrapollutant emission offsets will be acceptable (e.g., hydrocarbon increases may not be offset against S02 (reductions)). Condition 4: The emission offsets will provide a positive net air quality benefit in the affected area (see 

### 40 CFR Part 51 App. S). Atmospheric simulation modeling is not necessary for volatile organic compounds and NO•. Fulfillment of Condition 3 will be considered adequate to meet this condition for volatile organic compounds and NO•. 

### 3.11.2 Post-construction monitoring. The owner or operator of a major stationary source or major modification shall, after construction of the stationary source or modification conduct such ambient monitoring as the Department determines is necessary to determine the effect emissions from the stationary source or modification may have, or are having, on airquality in any area. 

### 3.11.3 Operations of monitoring stations. The owner or operator ofa major stationary source or major modification shall meet the Quality Assurance Requirements for PSD Air Monitoring as preapproved by the Department during the operation of monitoring stations for purposes ofsatisfYing 

### 3.11 ofthis regulation. 

### 3.12 Source Information. The owner oroperator ofproposed source or modification shall submit all information necessary to perform any analysis or make any determination required under 3.0

...9Hbls1.egulation. 

### 3.12.1 With respect to a source or modification to which 

### 3.9, 3.11, and 

### 3.13 of this regulation apply, such information shall include but not be limited to: 

### 3.12.1.1 A description of the nature, location, design capacity and typical operating schedule of the source or modification, including specifications and drawings showing its design and plant layout; 

### 3.12.1.2 3.12.1.3 A detailed schedule for construction ofthe source or modification; A detailed description as to what system of continuous emission reduction is planned for the source or modification, emission estimates, and any other information necessary to determine that best available control technology would be applied. 

### 3.12.2 Upon request ofthe Department, the owner or operatorshall also provide information on: 

### 3.12.2.1 The air quality impact ofthe source or modification, including meteorological and topographical data necessary to estimate such impact; and 

### 3.12.2.2 The air quality impacts, and the nature and extent of any or all general commercial, residential, industrial, and other growth which has occurred since August 7, 1977 orthe applicable baseline date ordates, in the area the source or modification would affect.3.13 Additional ImpactAnalyses. 3.13.1 The owner or operator shall provide an analysis ofthe impairment to visibility, soils and vegetation that would occur as a result of the source or modification and general commercial, residential, industrial and other growth associated with the source or modification. The owner or operator need not provide an analysis of the impact on vegetation having no significant commercial or recreational value. 3.13.2 The owner oroperator shall provide an analysis ofthe air quality impact projected for the area as a result ofgeneral commercial, residential, industrial and other growth associated with the source or modification. 3.14 Public Participation**---.--.-.~~~.** 3.14.1 Within 30 days after receipt of an application to construct, or any addition to such application, the Department shall advise the applicant ofany deficiency in the application or in the information submitted. In the event of such a deficiency, the date of receipt of the application shall be, for the purpose of 3.0 of this regulation, the date on which the Department received all required information. 3.14.2 Within one year after receipt ofa complete application, the Department shall make a final determination on the application. This involves performing the following actions in a timely manner: 3.14.2.1 3.14.2.2 Make a preliminary determination whether construction should be approved, approved with conditions, or disapproved. Make available a copy of all materials the applicant submitted, a copy of the preliminary determination, and a copy or summary of other materials, if any, considered in making the preliminary determination. 3.14.2.3 Notify the public, by advertisement in a newspaper ofgeneral circulation in each region in which the proposed source or modification would be constructed, ofthe application, the preliminary determination, the degree of increment consumption that is expected from the source or modification, and the opportunity for comment at public hearing as well as written public comment. 3.14.2.4 Send a copy ofthe notice of public comment to the applicant and to officials and agencies having cognizance over the location where the proposed construction ----c=w"'o'"Cu:.:ldFoccur as follows: the chief execiilivesofthe-City and county-

### where~th:'::e~-­ source or modification would be located and any comprehensive regional land use planning agency whose lands may be affected by emissions from the source or modification. Additionally, if the proposed source would have significant interstate impact, the Governor ofthat impacted state would be notified. 3.14.2.5 Provide opportunity for a public hearing for interested persons to appear and submit written or oral comments on the air quality impact of the source or modification, alternatives to the source or modification, the control technology required, and otherappropriate considerations. 3.14.2.6 Consider all written comments submitted within a time specified in the notice of public comment and all comments received at any public hearing or hearings in making a final decision on the approvability of the application. No later than 10 days after the close of the public comment period, the applicant may submit a written response to any comments submitted by the public. The Department shall consider the applicant's response in making a final decision. The Department shall make all comments available for public inspection in the same locations where the Department made available preconstruction information relating to the proposed source or modification. 3.14.2.7 Make a final determination whether construction should be approved, approved with conditions, ordisapproved pursuant to 3.0 ofthis regulation.3.14.2.8 Notify the applicant in writing of the final determination and make such notification available for public inspection at the same location where the Department made available preconstruction information and public comments relating to the source or modification. 3.15 Source Obligation. 3.15.1 Any owner or operator who constructs or operates a source or modification not in accordance with the application submitted pursuant to 3.0 of this regulation or with the terms of any approval to construct, or any owner or operator ofa source or modification subject to 3.0 of this regulation who commences construction after the effective date of these regulations without applying for and receiving approval hereunder, shall be subject to appropriate enforcement action. 3.15.2 Approval to construct shall become invalid if construction is not commenced within 18 months after receipt of such approval, if construction is discontinued for a period of 18 months or more, or if construction is not completed within a reasonable time. The Department may extend the 18-month period upon a satisfactory showing that an extension is justified. This provision does not apply to the time period between constructions ofthe approved phases ofa phased construction project; each phase must commence construction within 18 months ofthe projected and approved commencement date. 3.15.3 Approval to construct shall not relieve any owner or operator of the responsibility to comply fully with applicable provisions of any other requirements under local or Federal law. 3.15.4 At such time that a particular source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in any enforceable 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 3.8 through 3.15 of th.is regulation shall apply to the source or modification as though construction had not yet commenced on the source or modification. 3.16 Innovative Control Technology. 3 16 1 An owner or 

### operator of 

### a proposed 

### majormationaI}LSOUrce or major modjfication 

### may request the Department in writing no later than 30 days after the close of the public comment hearing to approve a system of innovative control technology. 3.16.2 The Department shall, with the consent ofthe Governor of Delaware, determine that the source or modification may employ a system of innovative control technology, if: 3.16.2.1 The proposed control system would not cause or contribute to an unreasonable risk to public health, welfare, orsafety in its operation or function; 3.16.2.2 The owner or operator agrees to achieve a level of continuous emissions reduction equivalent to that which would have been required under 3.8.2 of this regulation by a date specified by the Department. Such date shall not be later than four years from the time ofstartup or seven years from permit issuance; 3.16.2.3 The source or modification would meet the requirements of 3.8 and 3.9 of this regulation based on the emissions rate that the stationary source employing the system of innovative control technology would be required to meet on the date specified by the Department; 3.16.2.4 The source or modification would not be before the date speCified by the Department 3.16.2.4.1 Cause or contribute to a violation ofan applicable national ambient air quality standard; or3.16.2.4.2 Impact any Class I area; or 3.16.2.4.3 Impact any area where an applicable increment is known to be violated; and 3.16.2.5 All other applicable requirements including those for public participation have been met. 3.16.3 The Department shall withdraw any approval to employ a system of innovative control technology made under 3.0 ofthis regulation, if: 3.16.3.1 The proposed system fails before the speCified date to achieve the required continuous emisSions reduction rate; or 3.16.3.2 The proposed system fails before the specified date so as to contribute to an unreasonable risk to public health, welfare, or safety; or 3.16.3.3 The Department decides at any time that the proposed system is unlikely to achieve the required level of control or to protect the public health, welfare, or safety. 3.16.4 If a source or modification fails to meet the required level of continuous emission reduction within the specified time period or the approval is withdrawn in accordance with 3.16.3 of this regulation, the Department 

### may allow the source or modification up to an additional three years to meet the requirement for the application ofbest available control technology through use ofa demonstrated system ofcontrol. 13 DE Reg. 1345 (04/01/10)
0811112005 4.0 Minor New Source Review (MNSR) 4.1 Applicability. The requirements of4.3 ofthis regulation shall apply to any person responsible for any proposed new stationary source, the construction ofwhich: 4.1.1 was applied for, pursuant to 11.0 of7 DE Admin Code 1102, afterAugust 11, 2005 and 4.1.2 is subject to the construction, installation, or alteration requirements of 2.1.3 of 7 DE Admin Code 1102, and ""--"-""""**----;~~"C""** 4.1.3 is not subject to the requirements of2.0 or 3.0 ofthis regulation, and 4.1.4 has a potential to emit of equal to or greater than five tons per year of volatile organic compounds (VOC's) or, nitrogen oxides (NOx ), or sulfur dioxide (S02) or sulfur trioxide" (S03) or both [also termed sulfur oxides (Sax) lor, fine particulate matter (PM2 . 5), or, the potential to emit ofequal to or greater than five tone per year, in the aggregate, ofany of the hazardous air pollutants (HAP's) listed in Section 112(b) ofthe federal Clean AirAct. 4.1.5 Reserved. 4.2 Record keeping. Any person exempted from the requirements of 4.3 of this regulation because the proposed source has emissions below the thresholds provided for in 4.1.4 ofthis regulation shall include with the application submitted pursuant to 11.1 of 7 DE Admin. Code 1102, documentation that shows the proposed source is exempted. 4.3 Conditions for Approval. Any person subject to the provisions of 4.3 of this regulation shall meet the appropriate requirements of4.3.1 and 4.3.2 ofthis regulation: 4.3.1 The new stationary source shall, relative to each pollutant identified in 4.1.4 of this regulation, be controlled by installing and operating emission control technology that limits emissions to the atmosphere by utilizing anyone of the following options listed below. The Department will assist in the development of appropriate emission control technology determinations ifrequested by the applicant.4.3.1.1 4.3.1.2 4.3.1.3 Emission control technology that meets the LAER requirements of 2.0 of this regulation, or Emission control technology that meets the BACT requirements of 3.0 of this regulation, or Emission control technology approved in advance by the Department for the source type being Constructed (a listing and description of the approved technologies is available from the Department), or 4.3.1.4 Emission control technology approved by the Department, on a case-by-case basis, pursuant to the following process: 4.3.1.4.1 Identify and evaluate air pollution control technologies that may be applied to the source. The control alternatives need not be limited to existing controls for the source category. Consider controls applied to similar type ofsources, innovative control technologies, modification of the process or process equipment, other pollution prevention measures, and combinations of these measures. 4.3.1.4.2 List the control technologies identified in 4.3.1.4.1 of this regulation in descending order ofair pollution control effectiveness. 4.3.1.4.3 Either propose the most effective technology on the list generated under 4.3.1.4.2 of this regulation for approval by the Department, or demonstrate, based on the criteria in 4.3.1.4.3.1 through 4.3.1.4.3.4 of this regulation below, that the most effective technology is infeasible or unreasonable. This process for evaluation shall be repeated relative to each emission control technology on the list generated under 4.3.1.4.2 of this regulation until an emission control technology is reached that is noteliminated. 4.3.1.4.3.1 Technological Feasibility Assessment: A demonstration that the control technology is technically infeasible, based on physical, chemical, or engineering principles, that it is unproven technology, or that technical difficulties would prevent its successful application, or 4.3.1.4.3.2 Environmental Impacts Assessment: A demonstration that the control technology should be eliminated from consideration based on its ---'-----··---'---'e."nviromnental impacts. The demonstratioll lIIust sliow tllat Llie adverse environmental effects ofthe control technology (forexample, effects on water or land, HAP emissions, or increased environmental hazards), when compared with its air contaminant emission reduction benefits, would make use ofthe technology unreasonable, or 4.3.1.4.3.3 Economic Impacts Assessment: A demonstration that the technology should be eliminated from consideration based on its calculated economic impacts using the techniques in the latest edition of EPA's Control Cost Manual. The justification must show that the total and incremental costs of the control technology are greater than the total and incremental costs ofthe next less effective technology on the list generated under 4.3.1.4.2; and that the extra costs, when compared with the air contaminant emission reduction benefits resulting from the control technology, would make that measure unreasonable, or 4.3.1.4.3.4 Energy Impacts Assessment: A demonstration that the control technology should be eliminated from consideration based on its energy impacts. The demonstration must show that this technology uses fuels that are not reliably available; or that the energy consumed by this technology is greater than the proposed technology or technologies, and that the extra energy used, when compared with the air contaminant emission reduction

### • benefits resulting from this technology, would make use of this technology unreasonable. 4.3.2 All of the following information shall be submitted to the Department as part of the application submitted to the Department pursuantto 11.1 of 7 DE Admin. Code 1102: 4.3.2.1 Control technology proposed to be installed and operated to meet the requirements of4.3.1 ofthis regulation, and 4.3.2.2 The list, if this method was chosen, generated pursuant to 4.3.1.4.2 of this regulation and 4.3.2.3 Any demonstration or demonstrations performed pursuant to 4.3.1.4.3 of this regulation. 

### 2 DE 

### Reg. 2148 (05/01/99) 

### 9 DE 

### Reg. 246 (08/01/05) 

### 12 DE 

### Reg. 347 (09/01/08)**.~~**...--- ...**------'.~-' -~-------"'--"'** ...-

## • •

## •

TO:

FROM:



## RE:

DATE: MEMORANDUM TheHonorable CollinP. O'Mara Cabinet Secretary,.Dept. ofNatura1 Resources andEnvironmental Control 

### LisaA.

# vest~ PublicHearing Officer, Officeofthe Secretary DepartmentofNatura1ResourCes andEnvironmental Control ProposedAmendmentsto 

### 7DEAdmin. Code 1125,Requirementsfor PreconstructionReview, Section3.0, "PreventionofSignificant Deterioration ofAirQuality",and7 DEAdmin. Code 1130, TitleV State OperatingPermitProgram, Section2.0, "Definitions": Greenhouse Gas(GHG)Emissions November 12,2010

I. Background: A publichearing

## was held onWednesday, November 10, 2010; at6:00p.m. atthe DNREC Delaware EnergyOffice, 1203 CollegeParkDrive, Dover, Delaware, to receive
comment on the Department's proposal to· 

### amend 7 DE Admin. Code. 1125, Requirements for Preconstruction Review, Section 3.0, "Prevention of Significant Deterioration oEAir Quality" and 7 DE 

### Admin. Code 1130, Title V State Operating PermitProgram, Section2.0,"Defmitions": Greenhouse Gas (GHG)Emissions. These amendments will conform to the. requirements of a recent federal rule, 75 FR 31514, "Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule" (June 3, 2010), providing for the regulation ofcertain greenhouse gases, including, but
not limited to, carbon dioxide, which are considered pollutants under existing Delaware air

### qualityregulations.

### The Department is proposing to amend existing Regulations 1125 and 1130 by addingdefinitions which describe greenhousegases (GHG) as composed-oftheaggregate group of six greenhouse gases: carbon dioxide (C02), nitrous oxide (N20), methane (CH4), hy<hofluorocarbons (HFC),perfluorocarbons (PFC), and 

### sulfur hexafluoride (SF6), as well asfor carbondioxide equivalent emissions (C02e)l. Theseregulations also. willbeamended to

### require considerationforpermitting ofcertain GHG, emitting sources, under Title V (Reg. 1130) and new source review (Reg. 1125), beginning January 2, 2011, that emit or have the pptential to emit, 75,000 tons peryear, or, 100,000 tonsper year ofC02e. TheDepartmentis proposing to make these revisions.nowto 

### addthenew threshold limits for regulating these emissions in these regulations as shown in the recently issued federal rule 75 FR 31514, "Prevention of Significant Deterioration and Title

## YGreenhouseGasTailoringRule", asnoted above. Greenhouse gases in the earth's atmosphere (as the name implies) tend to allow the passage. of shortwave heating rays from the sun, which then warm the earth. The

warm earththenradiates back some ofthlsheat as longer-wave infrared.radiation. These

same greenhouse gases tend to absorb some ofthe infrared radiation, thus preventing it from being radiated into space. The greaterthe atmospheric concentration ofgreenhouse gases, the more heat is trapped, the less heat is radiated into space, and the greater becomesthe temperature ofthe earth.

1The tennC02eis based upon takingthe mass weight ofeachindividual GHG and multiplying itby its globalwanningpotential as shown inTable A·I of40 CFRPart98 Global Warming**Potential~** Then bysummingall the numbers, oneobtains the CO2 equivalentofall the GHG intons peryear. 

## 2 I-

### Since the onset ofthe Industrial Revolution, the burning offossil fuels like coal, oil and natural gas has increased the atmospheric concentration of C02. Other anthropogenic activities have given rise to the concentration ofmethane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfurhexafluoride. Each ofthese gaseshas a different potential to cause gl()bal warming and a different atmospheric lifetime before natural causesreduce their. concentrations. For example, the global warming potential (GWP) ofCO2 is one, and its lifetime is 120years, while sulfurhexafluoridehas a GWP. of23,900,meaningthat onepoundofsulfurhexafluoride is equivalentinGWPto23,900 pounds ofCO2, and a lifetime of3200years.' The Environmental Protection Agency (EPA) has, in the past, taken several ".cpositions on. their authority to regulate greenhouse gases. In 2006, several states and "environmental organizations brought the issue to the Supreme Court to require the EPA

. ",toregulate emissions ofCO2 and othergreenhousegasesundertheCleanAirAct(CAA),**~.'Section202(a),** 

### whichrelates tomotorvehicle emission standardsfornewmotorvehicles

ornewmotorvehicle engines. In April of2007, inthe matter of

### Massachusetts v. EPA, the Supreme Court decided that, under the CAA, EPAhad the authority to regulate C02 and othergreenhouse gases. In December of2009, EPAissued federal rule 74 FR66496, "Endangerment and Cause or Contribute Findings for Greenhouse Gases Under Section 202(a) ofthe Clean Air Act" which showed; (l) there is a connection between the observed rising atmospheric concentration of greenhouse gases and a measurable increase in global warming; (2) the impact ofthis temperature rise has been recorded, in addition to other effects, in increasing arctic sea ice melting and an increase in global sea level; (3)



### 3

### atmospheric concentrations of CO2, methane and nitrous oxide are the predominate contributors to global warming, but 

### hydrofluorocarbons, perfluorocarbons and sulfur 

### hexafluoride concentrations also exert a pronounced effect and their concentrations have been rising rapidly due to anincreased use ofthese materials,and should be 

### considered together as the pollutant greenhouse gases or GHG; (4) the observed impacts constitute

an endangerment ofpublic health and welfare; and (5) the combined emissions ofCO2, methane, nitrous 

## oxide andhydrofluorocarbons from newmotorvehicles andnewmotor vehicle engines are contributing to thisrnix ofgreenhouse.gases in the atmosphere and thustothis endangermentof publichealthandwelfare. Theendangermentfinding opened the way

### to establishing a rule regulating GHG emissions from motor vehicles. On May 10,2010, the federallight-duty vehicle rule,a joint effort by the EPA and the Department of TranSportation, 75FR 25324, 

## was published for model year2012 through

### 2016 vehicles, regulating

## fuel economy and GHG emissions

.. Thesevehicles emitfour·of the sixGHG; namely, C02, CH4,N20and certain hydrofluorocarbons as leakagefromair-conditioningunits. 

### Since the earliest a model year 2012 vehicle could be 

### sold 

## was January 2, 2011, this was when GHG became subject to regulation under the CAA, and was the date that triggered wider application ofregulating GHG. Onthat date, stationary sources emitting GHG would be 

### subjectto regulation under state new source reviewregulations (such as Delaware's Regulation 1125), and state Title V operating permit programs (such as Delaware'sRegulation 1130).



### 4

### EPA recognized that the existing federal regulations for the Prevention of Significant Deterioration of Air Quality and Title V, which were models for state regulations, were based upon emission thresholds of 100 

### and 250 

### tons ofpollutants per year. For criteria pollutants like nitrogen oxides, carbon monoxide and volatile organic compounds, these threshold levels for determining what is andwhat is nota major source of the pollutant, at and above which the source may be subject to regulation, 

## was satisfaetory. For GHG like CO2, these threshold levels were considered way too low for praeticality. A fuel-oil fired 

### boileroperating at 140,000

### BTUperhour will emit 100 

### tons per year of**~02.** 

### Using such a low threshold for Title V permitting or for source

. categories inPSD (non-source**categori~** 

### would have a thresholdof250 

### tons,per year of**~02** 

### or a firing rate of350,000 

### BTUperhour) would bring in manymore sources to be

.permitted and overload state permitting systems. At a 1001250 

### tons per year emission 'level, such sources as restaurants, schools, large residences, and heated swimmingpools would need to be permitted, a large group ofsources never before permitted and with owner/operators totally unfamiliar with the permitting process. An 

### EPA study showed that, nationwide, Title V permits would increase from a current level ofabout 14,700 

### to 6.1 millionpermits, and that the current level ofPSD permitting ofabout 400 

### permits per yearwould increaseto over 82,000

### permitsperyear. Somethingneededto be done during the early years ofGHGpermitting to make the permitting burden fit what actually could be handled until means to improve the permitting process could be found. This 

## was the genesis ofthetailoringrule.



## 5

### .EPA·determined that over 70 percent ofGHG sources would be pennitted ifthe threshold level Was set at 100,000 tons per year ofC02e and that only 1,000 additional Title' V pennits would be required nationally, an increase in pennitting that 

### was reasonable, and that PSD pennitting would increase nationally by only 900 permits per year. To accommodate the PSD modifications, a significancelevel of75,000 tons per

. 

## . year COlewas selected. The final rule "Prevention ofSignificant Deterioration and Title V Greenhouse Gas 

### Tailoring Rule"75FR 31514

### was publishedJune 3, 2010. Delaware is ina position
to regulate GHG, but decided to make several regulationrevisions for clarity andto add thenewthreshold emissionlevels. Later, perhaps by2016, EPA expects modificationsto thetailoringrule to expandpermitting activityto include smaller sourcesbyreducingthe thresholdlevelto closertoorequalto 1001250tons

### peryear. The proposed amendments to existing Regulations 1125 and 1130were published in the October 1, 2010 edition ofthe 

### Delaware Register of Regulations. During both the pre-hearing phase ofthis promulgationand at the time ofthe hearing onNovember 10, 2010, public comment 

### was received by 

### the Department, whichwill be addressed below. Propernotice ofthehearingwasprovided as required bylaw. 

### II. SummaryofHearingRecord: At the time of the hearing on November 10, 2010, Gene Pettingill of the Department's Division of

### Air Quality offered the Department's seventeen (17) exhibits pertaining to this proposed amendment, and this Hearing Officer entered them into the formal hearing record developed in this matter. Included within those Departmental exhibits

### was a copy ofthe StartActionNotice for thispromulgation (SANNo. 2010-19),



### 6

### copies

.of the legal notices regarding the holding· of this public hearing on November 10, 2010, copies ofrelated EPA reference rules upon which the Department relied in the drafting of

### this proposed amendment, and copies ofthe actual proposed amendmentstoRegulations 1125 and 1130 as notedabove. Prior to the public hearing ofNovember 10,2010,public comment

## was received from both Robert A. Reich, P.E., Manager, Global Enviromnental Stewardship at DuPont, and Angela D. Marconi, P.E., Cherry Island Landfill Gas Manager, Delaware
\ 

### Solid Waste Authority (DSWA). Although the hearingrecord 

## was closed with regard to receipt ofanyfurthercommentattheconclusion of publichearingonNovember 

### lOth, this Hearing Officer specifically noted that the record would remain open in order for the inclusionintotherecord oftheDepartment'sresponses to the comments alreadyreceived frombothDuPontandDSW A. With regard to the comments presented by

### Mr. Reich dated October 22,2010, 

### it


## was DuPont's positionthat the Department needed to add several additional definitions into Section 1.9 ofRegulation 1125andSection2.0ofRegulation 1130 inorderto clarify several categories ofGHGsthat are (I) notunique chemical compounds; and (2) are not defined in EPA's Tailoring Rule. Specifically, DuPont requested that Delaware's definitions for "hydrofluorocarbon" and ''perfluoiocarbons'' include restrictions that are not in the EPA implied definition of these terms. 

### In response to this request, 

### Mr. Pettingill advised DuPont on November 9, 2010 that DAQ believes that EPA has "

...implicitlydefined HFC and PFC inthe "Tailoring"rule by directing readers, onpage 31606, to the amendments under Part 51, such as 51.166(b)(48)(ii)(a) to Table A-I to Subpart A ofPart 98 ofthis chapter

- Global Warming Potentials, which 

### Table is an



## 7

### AppendixtotheMandatory Greenhouse Gas Reporting Rule". In

### Table A-I oftheEPA rule (and Tables I-I and 2-1 ofDelaware's &egulations 1125 and 1130, respectively), these compounds are defined or identified by chemical name, formula and Chemical Abstracts (CAS) number, which the Department believes is· a more 

### than adequate definitionfor thesetwo classes ofcompounds that are included inthe term "GHG". Mr. Pettingill further advised Mr. Reich that the Department "

... believes it is essential to 

### maintain consistency among all

### the 

## states and the EPA in the definition ofwhat is a GHG

...", and thus DAQ is not agreeable to changing and/or adding any additional ,r 

### language to these proposed amendments, as it is believed that such action would "

... introduce confusioninthe application ofthe full suiteofEPAGreenhouseGasrules." As 

### further clarificatioll; in an email sent to Paul Jann (DuPont) by Mr. Pettingill on November 12, 2010,. the Department confirmed with DuPont that the HFC and PFC compounds listed in Table 1-1 is the all-inclusive list, and that no other fluorinated compounds would be subject to the Tailoring rule, nor were any other fluorinated compoundswereincludedinRegulations 1125 and/orll30. With regard to the comment received from DSW A, the Department received correspondence from Angela D. Marconi, P.E., dated October 27, 2010. In 

### this letter, DSWA wished to clarify several points with respect to Delaware's implementation of EPA'sTailoring Rule. Inanemail senttoMs. f.1arconi byMr. Pettingillonthe afternoon ofNovefnber 10,2010 (just before the actna! public hearing held later that same night), DNRECrespondedtoDSWA'scomments as follows:



### 8

### 1. In 

### response to DSWA's request that DNREC will "follow suitand exclude biogenic GHG emissions ifEPA does so, the Department notes 

### that it must adopt regulations that are eitherequal to ormore stringent thanthe minimum federal requirements. Thus, ifthe EPA excludes biogenic GHG emissions, then DNREC would consider a corresponding change to its regulations, and anychangewouldbe subjecttopublicnoticeand comment; 2. In

### response to DSWA's request 1hat DNREC confirm that fugitive emissions from a landfill will not trigger inclusion in the rule, DNREC notes that, as showninthe cuttentlanguage ofRegulation 1125, fugitives are consideredin determining a major source or major modification in any ofthe 28 source categories (see provision 3.7.4.2). IfEPA, in the current reconsideration of this aspect of their NSR rule, decides something different from DNREC's
currentpractice, then itwillbegiven consideration. Ag.ain, anychangeto the
currentDNRECregulation wouldbe subjecttopublicnoticeandcomment; 3. In 

### response to DSWA's recommendations concerning BACT for GHG, the Department notes 1hat BACT determinations in Delaware will be on a caseby-case basis whenindividualpermits areprepared. The DSWA solutionmay be evaluated at 1hat time. In 

### the meantime, DNREC suggests that DSWA follow developments ontheEPAwebsite (the 

### linkfor whichwasprovidedfor DSWA's review and convenience). In 

### addition to the aforementioned written comments dated October 27, 2010, a representative from DSWA (Nicole Burkhardt) attended the hearing on November 10, 2010, and offered additional comment for the record inthis matter. Specifically, DSWA



### 9

### requested that DNREC confIrm that, if the Obama administration preempts EPA's authoritytoregulate GHGs, then "DNREC will follow 

### suitand hold onthese greenhouse gas revisions until the Tailoring Rule (or its replacement) is enforced". In 

### response to this comment, Mr. 

### Pettingill forwarded an eniailto Ms. Burkhardt on November 11, 2010, stating that if the Obama administration took such action, and the EPA was prevented from regulating greenhouse gases as described, thenDNREC would cc;>nsider a correspondingchangeto Regulations 1125 and 1130, and such changes would be subject
to public notice and comment It should be noted that no changes were made by the Departmenttothese proposedregulation amendments as a result ofany ofthe comments thatwere receivedinthismatter. For the Secretary's review, and in order for the Secretary to gain a thorough understanding ofthis proposed promulgation, copies ofthe above-referenced proposed amendments are attached hereto as Appendix "A", and the same are expressly incorporatedinto thisHearing Officer'sReport. It· 

### should be noted that the Department adhered to all appropriate Delaware
statutes and the regulatory developmentprocess in this matter, and that the Department**h~met** 

### the required public notice obligations regarding this proposed amendment. It should also benotedthattheDepartmenthas reviewedtheseproposed amendments inthe light ofthe Regulatory Flexibility Act, and believes the same to belawful,**f~ible** 

### and desirable, andthattherecommendations asproposed shouldbe applicable to allDelaware citizens equally.



### 10

### III. Conclusions andRecommendations: Based onthe record developed 

### inthis matter, I conclude thatthe Departmenthas provided appropriate reasoningregarding the need fortheproposed amendments to 7 DE Admin. Code 1125, Requirements for Preconstruction Review, Section 3.0, "Prevention ofSignificant Deterioration ofAir Quality", and 7 DEAdmin. Code 1130, Title V State Operating Pennit Program, Section 2.0, "Definitions": Greenhouse Gas (GHG) Emissions. Accordingly, I recommend promulgation ofthese proposed amendments 

### in thecustomarymannerprovided bylaw. Further, I recommendthefollowing findings: 1. The Department has jurisdiction undel; its statutory authority, 7 Del.C.• Chapter60, tomakea determination 

### inthisproceeding; 2. The Department provided adequate public notice ofthe public hearing in a
mannerrequired.bythelawandregulations; 3. 

### The. Department held a public hearing 

### in a manner required by the law and regulations; 4. The Department has reviewed these proposed amendments in the light ofthe Regulatory Flexibility Act, and believes the same to be lawful, feasible and desirable, and that the recommendations as proposed should be applicable to all Delaware citizensequally; 5. Promulgation ofthe aforementioned proposed amendments to 7 DE Admin. Code 1125 and 1130 will enableDelawareto 

### conformtotherequirements ofa recent federal rule, 75 FR 31514, "Prevention ofSignificantDeterioration and Title V Greenhouse Gas Tailoring Rule" (June 3, 2010), providing for the



## 11

### regillationofcertain greenhouse gases which are considered pollutants under existing Delaware airqualityregillations; 6. The aforementioned proposed amendments to 7 DE Admin. Code 1125 and 1130will add definitions to the existing Delawareregillations, thus describing GHGs as composed ofthe aggregate group ofsix greenhouse gases: carbon dioxide (CO2), nitrous oxide (N20), methane· (CH4), hydrofluorocarbons (lIFC), perfluorocarbons (PFC); and sulfur hexafluoride (SF6), as well as for carbon dioxide equivalent emissions (C02e), whichis obtainedbymultiplying the. mass weight of each individual greenhouse gaS by its global warming potential and summingtheresults for a particularemissions source; 7. Additionally, the aforementioned proposed amendments to 7 DE Admin

.

. Code 1125 and 1130 will require considerationforpermitting ofcertain GHG emitting sources, under Title V (Reg. 

### IHO) and new source review (Reg. 1125), beginning January 2, 2011, that.emit or have the potential to emit, 75,000 tons per year, or, 100,000 tons per year ofC02e. In 

### making these revisions now, the new threshold limits will be added to enable Delaware to regulate these emissions in these regillations, as shown in the recently issued federal rule 75 FR31514, "Prevention ofSignificantDeterioration and Title V Greenhouse Gas Tailoring Rule"; 8. The Department haS 

### an adequate record for its decision, and no further public hearing is appropriate ornecessary;



### 12

### 9. TheDepartment'sproposed amendments to thisregulation, as published in

### the October I, 2010.Deiaware Register of Regulations 

### and as set forth within Appendix "A" 

### hereto, are adequately supported, not arbitrary or capricious, and are consistent with the applicable laws and regulations. Consequently, they should be approved as final 

### regulation amendments, which shall go into effect ten days after their publication in 

### the next available issue of the DelawareRegisterof Regulations; 

### and 10. The Department shall submit the proposed regulation amendments as final 

### to theDelawareRegisterof Regulation

### forpublication in

### its next available issue, and shallprovide writtennotice to 

### thepersons affectedbythe Order.

AhearlReg.1125.1 130.Amndmts.2010



### 13 ISAA.YES ublic Hearing Officer

# APPENDIX 

# "A"

### TITLE 7 NATURAL RESOURCES & 

### ENVIRONMENTAL CONTROL DELAWARE ADMINISTRATIVE CODE 1

1100Air QualityManagementSection
1125 Requirements for Preconstruction Review
12111110

1.9 Definitions
- Forthe purposes ofthis regulation

***************** "Greenhouse Gases (GHGr means an air pollutant composed ofan aggregate group ofsix greenhouse gases; carbon dioxide (C02), nitrous oxide (N20), methane (CH.), hydrofluorocarbons(HFC),

.perfluorocarbons 

### (PFe), and sulfur hexafluoride (SFs). For the purposes of this regulation, the term C02equivalent emissions (CO,e) shall represent an amount ofGHG emitted, and shall be computed as follows;

.
• Multiplythe mass amount ofemissions (tpy), foreach ofthe.six greenhouse gases in the pollutant GHG by the gases associated global warming potential as shown in Table 

### 1-1 ofthis regulation. • Sum the resultant value foreach gas tocompute atpyCO,e 

### Table 1-1 GLOBALWARMING POTENTIALS 

### Globalwarming potential**(l~O** 

### yr.) 1 21 

### 310 

# J ._........_ .... 11,700

### HFC-152a



## - HFC-161 HFC-227ea HFC-236cb
. 

# _l HFC-236ea HFC-236fa HFC-245ca 

# J ID'C-245fa HFC-365mfc HFC-43-1Omee Sulfurhexafluoride 2551-62-4 SF6 

# JI I

-**~** 

### 650



## - 150

_ ___ _ _ 2,800 1,000

.._. _ _),300 300

. 3,800 53 140

12 2,900 1,340 1,370 6,300

560 1,030

794 1,300 23,900 PFC-14(perflooromethane) 75 7'Lf1 rl<', 

## i 6,500
Perfluorocyclopropane 931-91-9!!C-C3F6 17,340

7,500

._ . 7,500 *********** 

### "Subjectto Regulation" means, for any airpollutant, thatthe pollutant is subjecttoeithera provision in the Clean Air Act, or a nationally-applicable regulation codified by EPA, that requires actual control of the quantity ofemissions ofthat 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. ExceptthatGHG shall notbe subjectto regulation except asfollows: (a) BeginningJanuary 2, 2011,

### the pollutant GHG shall be subjectto regulation if:

• The stationarysource is a new majorstationarysource for anypollutant subject to regulation under the eM that is not GHG and also will emit orwill have the potentialto emit75,000tpvC02 e ormore; or

• The stationary source is an existing major stationary source for any pollutant subject to regulation under the eM that is not GHG and also will have an

.emissions increase of that pollutant and an emissions increase of 75,000 tpy C02e ormore: and, in addition, (b) BeginningJuly 1, 2011,

### thepollutantGHG also shall be subjectto regulation:

• At a new stationary source that will emit orhave the potential to emit 100,000 tpyC02 e: or

• At an existing stationary source thatemits orhas the potential to emit 100,000 tpyC02 e when such stationarysource undertakesa physical changeorchange in the method ofoperation that will result in an emissions increase of75,000 tpy C02 e ormore. 'The term emissions increase, asusedabove, shall mean that both a significant emissions increase and a

.significantnetemissions increase occur. ".', 

### *********** 

### 3.7.3 The requirements of 3.8 through 3.15 of this regulation apply to any major stationary source or major modification that would be constructed in an area designated as attainment or uncfassifiable.

## · Title 7 Natural Resources and Environmental Control
1100AirQuality Management Section
1130 Title 

## V State Operating Permit Program 11115/199312111110 *********** 

### 2.0 Definitions 

## *********** "Majorsource" *********** 

### (2) A major stationary source ofairpollutants. as defined in section 302 (Title III
- General Definitions) ofthe Act. that directly emits orhas the potential to emit. 100 tpy or more of any air pollutant subject to regulation (including any major source of fugitive emissions of any such pollutant. as determined by rule by the Administrator). The fugitive emissions ofa stationary .source shall not be considered in determining whether it is a major stationary source for the purposes of section 3020) (Title III
- General Definitions) of the Act. unless the source belongs to one of the following categories of stationary sources: ************* 

### "Subjectto regulation" means. for any air pollutant. thatthe pollutant is subjectto either a prOVision in the Clean AirAct, ora nationally-applicable regulation codified by the EPA. that requires actual control ofthe quantity ofemissions ofthat pollutant. and thatsuch a control requirement has taken effect and is operative to control, limit or restrict the quantityofemissions ofthat pollutant released from the regulated activity. Exceptthat:

.. (1)Greenhouse gases (GHG). the air pollutant defined in 40 CFR 86.1818
- 12(a)

as the aggregate group ofsix greenhouse gases: carbon dioxide (COg), nitrous oxide (N20), 

### methane**(CH~),** 

### hydrofluorocarbons (HFC), perfluorocarbons 

### (pFC). and sulfur hexafluoride{SF6>' shall not be subject to regulation unless, as ofJuly

### 1, 2011, 

### the GHG emissions are at a stationary source emitting or having the potential to emit 100,000

### tpy CO,equivalent emissions. (2) The term tpy CO? equivalent emissions (COz.el shall represent an amount of GHGemitted, and shall be computed by multiplying the mass amount of emissions (tPV, for each ofthe six greenhouse gases in the pollutant GHG, by the gas's associated global warming potential as shown in Table 2-1 

### of this regulation "Global Warming Potentials·, and summing the resultant value for each to compute a tpy COze. Table 2-1 

### GLOBAL WARMING POTENTIALS

- Globalwarming Name CAS No. Chemicalformula )!otential I 

### (100 vr.)**~**,J;n-,;,J, 

### p"**~o** n 

### lCD, 

## 1 ,K.:'-

# ~A**O~~~** 

# n

# ~**~~A n~**  

### J)Jl

-

# ~:::. 11.700 lJ-Wr_"I? @ 

### HFC-41

### 593-53~ 

# I .liQ HFC-125 "I""**~~** 

### ,HF.

_

# ~ HFC-134**~cn** 

### "1<;'_"1 1r',l-T,F 4 

### IHFC-134a 811-97.,..?**"l-T~** 

### 1 "lOll 

### IHFC-143 4:1\ .:.: 1\ 

### :C2H,h Jill)**HFC--14"1~** 

### 420- At: ..,**r~l-T,F, ~**  

### Rnll HFC-152 624-72-<! ,FCH,F



# _**lJ~** 

### 'HFC-152a**~c ~~-f\** 

### Irl-T1CHF~ 

## _l1Q HFG,-lli 353-36-" :::H.rl-T,F 

## , 

# 11 HFC..,.227ea 43J 00 

### 2.900 

### IHFc--:n,;,.h 677- c£ "- 

### ICl-T? 

## b

# ~ 'HFC-: 431-"'1-0IrJ-W. 

### "

# -'~- 690--39-1

## Ir.l-T~F6 ,; "Inll 679- 0': 7 

### C,H3F, 2QQ- 

### :HFC-245fa 

## , 460--73-1 ICHF,CH,CF, 1.030

.. 

### HFC-31

# -~,ICH.rF,( 

## W

..... 

### HFC-41·-1Omee .( 'tlC.l'.t1 

### ,CF, 1 "100 "-

### •

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### Title

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## 1'" dayofOctober. 2010



### Wanda James NOlary Public Slate ofDelaware Commission expires 11/02/201y

# ·

### •OFFICE OF THE SECRETARY STATE OF DELAWARE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTAL CONTROL 89 KINGS HIGHWAY DOVER, DELAWARE 19901 

### Secretary's OrderNo.:**2010~A-0040** 

### RE: ApprovingFinalAmendments to 7DEAdmin. Code 1125, Requirements forPreconstruction Review, Section 3.0, "PreventionofSignificantDeteriorationofAir**Quality~'** 

### and 7 DE Admin. Code 1130,

### TitleV StateOperatingPermitProgram, Section2.0, "Definitions": Greenhouse.Gas (GHG)Emissions

Date ofIssuance: November 17,2010 EffectiveDateoetheAmendment: December ll,

### 2010 PHONE: (302) 739-9000 FAX: (302) 739-6242



### Under the authority vested in the Secretary of the Department of Natural Resources and, Environmental Controi ("Department'" or "DNREC") the following findings, reasons and conclusions are entered as an Order o,ftlie Secretary 

### inthe abovereferenced rulemaking proceeding. Background lind Procf'duralHastory This Order considers proposed regulatory amendments 

### t,) 7 DE Admin. Code 1125. 

### &.ill!.irementsfGf Precqnstruction Rel'jew. Section 3.0, "Prevention of Significant Deterioration of Air Quality" and 7 DE Admin. Code 1130, 

### Title V State Operating Permit Prog!am, Section 

### :;!.O, "Detinitions": Greenhouse Gas jGHG) Emissions, to 

### enable Delaware to conform to the requirements ofa recent federal rule, 75 FR 31514, 

### "Prevention of Significant Deterioration and Title V**~ouse6as** 

### Tailoring Rule"

### (June 3, 2010), providing for the regulation of certain**green1J.0~egases,** 

### which are consideredpollutants upderexistingDelaware air qualityregulations.



# . '. '
. 

### The Department is proposing to amend existing Regulations 1125and 1130 by

. '-, ."

. , 

### addin.g defInitionswhichdesc;:ribe greenhouse gases (GHG) as cOl)1posed ofthe aggregate

.- -'

- ; . 

### gro.up of six greenhouse gases:.carbondioxide (C02), nitrous oxide (N20)" methane



## . .' . 

### (CH4),**hydrofluoroc~rbons** 

### (HFC),. perfluorocarbons O'FC), 

### and sulfur hexafluoride

. . . 

### (SF6), 

### as well as for c;rrbon:dioxide .equivalent emissions (COle). These**regul~tions** 

### also will.

## be amended to. reqmre cOllsideration for permitting of.certain.GHGemitting.sources,

-. . .,. .. '... '. .. ., '. 

### under Title V (Reg. 1130) and**ne~** 

### source reyiew (Reg. 1125), I;eginniilg January 2,

. . . 

## , 

## . ."- " .- '. '" 

### 2011, that emit or have the potentialto emit, 75,000**ton~** 

### peryear,.or, 100,000 tons per

• , -. _ .' •••• _. of '. ) •



### ..year ofC:0ze

..The-Department**isproposin~** 

### to make theserevisioJls;;now to 

### add the new

threshold limits for regulating these emissions in**theseregulatj~)l!s· ~s**  

### shown in the recently issued federal. rule 75 FR 31514,. "Prevention ofSignificant,Deterioration and

, ..- 

### . . . . - . 

### ,-
. 

### TiJ!eV G,reenhouseOas TailoringRule", asnoted above. On August 

### 3!, 2010, the Department's Division of Air Quali!'j (DAQ) commenced t.1}e regulatory development process with Start ActionNotice 2010-19. The Department published the proposed regulatory amendments in the October I, 

### 2010 Delaware Register

### of Regulations and held a pubiic hearing on Novemt-er 10,2010. The Department's presiding hearing officer, Lisa A. 

### Vest, prepared a Hearing Officer's Report dated November 12,2010(Report). The Report recommends certain findings and the adoption of the proposed regulatory amendments as attached to the Report as AppendixA.



### 2

### Findings andDiscussion I find that theproposed Amendments are well-supported bythe record developed by the Department, and adopt the Report to the extent itis consistent with this Order. The Department'sexperts developed the record and drafted the proposed Amendments. The Department received public comments from the regulated community, as noted in the Report, and considered and responded to all timelyandrelevant public comments in**n:~g** 

### its determination. I 

### fmd ,that the Department's experts in the Division ofDAQ fully developed the ,.record to support adoption ofthis Amendment. With the adoption ofthe regulatory**.~** 

### amendments to 7 DE Admin. Code. 1125, Requirements for Preconstruction Review,**.~** 

### Section 3.0, "Prevention ofSignificant Deterioration of

### Air Quality" and 7 DE Admin.**~dil;** 

### Code 1130, Title V State Operating Permit Program, Section 2.0,**"Definitions~':** 

# c. Greenhouse Gas (GHG) Emissions, Delaware

..will be enabled. to conform to the

- requirements of a recent federal .rule, 75 FR 31514,**'~Prevention** 

### of Significant

..peteriorationand Title V 

### Greenhouse Gas Tailoring Rule".(June 3, 2010), providing for

theregulation ofcertain greenhouse gases,'whichareconsideredpollutants under existing Delaware air quality.regulations. AdditionallYl .these regulations are being amended at**this~time** 

### to require conSideration fotpermitting ofcertain GHG emitting sources, under Title 

### V (Reg. 1130) and new source review (Reg

..U25); beginningJanuary,2, 2011, that el)lit.or have the potential to emit, 75,OQOtons, per year, Or; 100,000 tons per.year of C02e.

3.

### In

### conclusion, the following findings and conclusions are entered: 1.) 

### The Department has jurisdiction under its statutory authority to issue an Orderadoptingthese proposed Amendments as final; 2.) The Department provided adequate public notice of the proposed Amendments, and provided the public with an adequate opportunity to comment on the proposed Amendments, including at apublichearing; 3.) The Department held a public hearing on November 10, 2010 on the proposed Amendments in order to consider public comments before making any final decision, and fully considered and responded to all timely and relevant comments receivedfrom the regulated communityconcerningthis matter; 4) The Department's Hearing Officer's Report, including its recommended record and the recommended Amendments as set forth in Appendix A, are adopted to provideadditional reasons and findings forthis Order; 5.) The recommended Amendments do not reflect any substantive changes from the proposed regulation Amendments as published in the October I, 

### 2010, DelawareRegisterof Regulations; 

### 6.) The recommended Amendments should be adopted as final regulation Amendments because (I) 

### Delaware will be enabled to conform to the requirements ofa recent federal rule, 75 FR 31514, "Prevention ofSignificant Deterioration and Title V Greenhouse Gas Tailoring Rule" (June 3, 2010), providing for the regulation ofcertain greenhouse gases, which are considered pollutants under existing Delaware air quality regulations; (2) consideration will now be required for permitting of certain GHG emitting sources, under Title V (Reg. 1130) and new source review (Reg. 1125),

4 

# '.

### • 

# . beginning January 2, 20II, that emit orhave the potential to emit, 75,000 tons peryear, or, 100,000 tons peryear ofC02e; and (3)the regulation amendments are well supported bydocuments inthe record; and'that 7.) 

### The Department shall submit this Order approving the final regulations to the 

### Delaware Register of Regulations for publication in its next available issue, and provide such other notice as the law and regulation require and the Department determines is appropriate.

Secretary

Ahearl Reg.1125.1130.Amndmts.201O.Ord.



## 5

### • 

### •



# . I I I I I I

I I
I

ISTATEOF DELAWARE DEPARTMENTOF NATURAL RESOURCES & ENVIRONMENTAlCONTROL DIVISION OFAIR QUALITY 655 S. Bay Road, Suile 5N

DOVER, DELAWARE 19901


### CERTIFICATION October II,20II Telephone: (302) 739
- 9402 Fax No.: (302) 739
- 3106



### I hereby certifYthat apublichearing was held October28, 2010, ona revisionto the Stateof Delaware State ImplementationPlan. Therevisionamends 7 DEAdmin. Code 1125

- REQUIREMENTS FORPRECONSTRUCTIONREVIEW,byrevising Section

### 3.0

- Prevention ofSignificantDeteriorationofAirQuality. Theamendmentsrequirepermittingconsiderationof Greenhouse Gas (GHG) emittingsourcesbeginningJanuary2,2011,that emit orhavethe potentialto emit75,000 tonsperyearor 100,000tonsperyearofC02e. Theeffective date of thisrevision is December 11, 2010. I further certifYthatthehearing

## was held inaccordance withthenoticerequiredbySubsection 51-.102 of40 CFR51.

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