P. 1


# OAR Box 

# 1840 Prepped byOllie Stewart



### Document

Number: 

# 27 ) IV-H-3 3 Docket Number: 

# A-90-3 7

Printed 11/14/20081:25:30PM Sheet 27 of 27iiuv- u r —ttxiviti. P. 2

m- It >

To : 

### Fox# : From ; P.01/1 8


# 8A \ r\ . FA

XTRANSMISSIO

N OFFIC E OFINFORMATIO N AN D ReeuLAToa vAFFAIRS OFFIC E O FMANAGEMEN TAN D Bu&ee

r NATURAL RESOURCES

, ENS* * AN D AGRICULTURE BRANCH 725 17t h Street , NW, Roo

m 1020 2 Washington, bC

20503 ' Office : 202-395-3084/Fax : 202-395-7285 

### A-90-3 7 IV-H-3 3

) Ar tFraas ) Rich Therou x ) Ji m Lait

y ) Amand a Le e T ^ 4 Am

yFarrel l ) Bryon Alle n ) Margi e Malanosk

i ) Davi d Rostke r ) Rut h Solomo

n ) Edmon d To y bate ;

Pages : 

# \\\n\VL'

W_, includin g thi s cove rsheet .

Comments : 

# \l^%'wil lCo/w- C t n

# ~ ?

FAXSHEeTJMtt JP. 3

Nuy-tfe-_fld0 214=1 5 P.02/1 8

Interna lan aDeliberativ eDraft - D ono tquote , cite /

cop/ , o rdistribute , Octobe r23 ,200 2 example , §52.21(b)(48)) , and wil l b e base d o nyou r post chang e desig nand maximu mexpecte d utilizatio nrat e les s any amoun t o f emission s tha t coul d hav e bee naccommodate d .durin g th e selecte d 24-mont hbaselin e perio d and i s no t rjTj

- <l(Jr\^j
""- —-——_ - afcti-ib-tbablcrelate d t o th e change . Accordingly , yo u wil l calculat e th e unit' s projecte d actua l emission s a s th e produc t of : (I ) th e hourly.emission s rate , whic hi s base d o n th e emission s unit' s operationa l capabilitie s following th e change(s) , taking int o accoun t enforceabl e restriction s tha t coul d affec t th e hourl yemission s rat e following th e change(s) ; and (2 ) projecte d leve l o f utilization , whic hi s base d o nbot hth e emission s unit' s historica l annua l utilizatio n rat e and al l availabl e informatio nregarding th e emission s unit' s likel ypost-chang e capacit yutilization . I ncalculatin g th e projecte d actua l emissions , yo u shoul d conside r bot hth e expecte d an d th e highes t projection s o f th e busines s activit ytha t yo u expec t coul d b e achieve d and tha t ar e consisten t with-aayinformatio nyou r company publishe s fo r business-relate d purpose s suc ha s a stockholde r prospectus , o r application s fo r busines s loans . Fromth e initia l calculation , yo u ma ythe nmak e th e appropriat e adjustmen t t o subtrac t ou t anyportio no f th e emission s increas e tha t coul d hav e bee naccommodate d during 7 2 

# IP. 4

nuv-_iY-_a_u_<

_14:1 5

• •-..:"•;.?.?."•.:• • •••. . P . 03/1 8

lateral-an

d Deliberativ

a Draft

- Do not quoto , cite , copy, , or distribute .

. /v-eafiaLuJJ-M-iuflj^roject , th e baselin e actua l emission s i s equa l t o 0 i f yo u have-no t ye t begunoperatio no f th e unit , and i s equa l t o th e unit' s potentia l t o emi t onc e i t ha s begunt o operate . *_>§ . A mI abl e t o appl ytoday' s change s fo r calculating th e baselin e actua l emission s t o othe r majo r NS Rrequirements ? No , a s state d i nsectio nII.AT , yo u ar e onl yallowe d t o us e today f sth e ne wbaselin e methodologyi ntoday' s rul e fo r thre e specifi c purpose s involving existing emission s unit s •(•other

- -tha n a nEUSGB**)— as follows. —

• Fo r modifications , t o determin e a modifie d unit' s pre chang e baselin e actua l emission s a s par t o f th e ne w "actual-to-projected-actual " test. -

• Fo r netting , t o determin e th e pre-chang e actua l emission s o f a nemission s uni t tha t underwen t a physica l o r operationa l chang e withi nth e O contemporaneou s period . Yo u ma yselect^baselin e
" ' ) \ period s fo r eac hcontemporaneou s increas e o r decrease . • Fo r PALs , t o establis hthe PAL level . I f yo u determin e tha t the modificatio no f you r sourc e i s a majo r modification , yo u mus t rever t t o usin g th e existin g definitio no f ^actua l emissions " t o determin e you r source' s actua l emission s ona particula r dat e t o satisf y 6 9P. 5

iluv-t ii -<_I_I_)_: m; i b P.04/1 8

• "'• '.. • :••>'••'.' : -.^,\'^!S^.i^ s

Internal , and'Deliberativ e Draft - D Ono t quote , cite , copy , o r .distribute . ' Octobe r 29 , 200 2 Today' s ne wrequirement s requir e tha t yox i toVelect . grth e sam e singl e consecutiv e 24-mont hperio d withi nth e 10

- yea r loo k bac k perio d t o calculat e th e baselin e actua l emission s fo r eachal l existin g emission s uni t tha t wil l b e affec.fce._-b

vth e prcnec-.changed . [See , fo r example , ne w §52.2 1 (b ) (48 ) (ii ) (e. ) . ] I t folluwsTh e resul t wil l b e tha t th e baselin e actua l emission s fo r eac haffecte d pollutan t al& o mustwil l b e base d o nth e same consecutiv e 24-mont h perio d a s well . Yo u wil l hav e th e optio nt o selec t th e singl e 24-mont h perio d tha t bes t represent s th e collectiv e leve l o f operatio n(an

d emissions ) fo r you r existing emission s units . I f a particula r existing emission s uni t di d no t ye t exis t durin g th e 24-mont hperio d yo u selec t t o calculat e th e baselin e actua l emissions , yo u mus t coun t tha t emission s unit' s emission s rat e a s zer o fo r tha t ful l perio d o f time . I f a nemission s uni t operate d fo r onl ya portio n o f th e particula r 24-mont hperio d tha t yo u select , yo u mus t calculat e it s averag e annua l emission s rat e usin g a n emission s rat e o f zer o fo r tha t portio no f tim e whe nth e uni t wa s no t i noperation. — Fo r ne wemission s unit s ( a uni t tha t ha s existe d fo r les s tha ntw o years ) tha t wil l b e affectedchanae d b yth e 6 8 *"\ : Vr ' "u--*-£2r£t- '.- : '.*P. 6

s-^-tX**. _«=i b. P-05/1 8

Interna l an dDeliberativ e Draft - D bno t quote , cite , copy, ' o r distribute . Octobe r 29 , 200 2 t o tak e advantag e o f Lhe ne wprocedure , yo u wil l als o b e require d ivtrac k th e post-changebefor e proceedin g wit h construction . Second , w e ar e requiring EUSGU s tha t us e projection s fo r covere d project s t o send a cop yo f thei r tracke d emissions,t o theifpermittin g authority , withou t regar d t o whethe r thes e emissions Mi have increase d bva significant-amoun t o r excee d thei r projections . Th e effec t o f thi s consolidatio ni s tha t w e mak e mino r change s t o th e existin g procedure s fo r EUSGUs . Fo r example . EUSGU s mus t projec t emission s o na 12-mont hbaBis , rathe r a than the curren t approac ho f projecting averag e annua l emissions-;—i n ton s pe r yeai , fromunit s tha t ar e modified 1 t o ensur e tha t th e .UC Weniib&xoa s d o iaot"M.euieaen t fo r th e tw o year s immediatel yfollowing th e change . Also . EUSGU s nee d onl y mak e and repor t a projectio nwhe nther e i s a reasonabl e possibilit ytha t th e give nprojec t ma vresul t i na significan t emission s increas e (o r a significan t ne t emissioi-s-incTea.se ) ove r the'baselin e actua l emission s fo r anyemis&lon s unlfc-r"—[See , fo r example , ne w S52.21(r ) (G) (ii) .] —Also , i f the m.ifcsr collectiv e annua l eidnssioiia -ahow

s tha t ther e i s - a significan t ac t emission s increas e a t the source,—and hence , a majo r mudification,—yot r mus t i-eport thisLu you i reviewing authorit yan d b e prepare d 4 1 

# 1/—_J i-_:_»_*- l^MI b P.06/1 8

Interna l and Deliberativ e Draft

- D o so t quote , cite , copy , o r distribute . Octobe r 29 , 200 2 th e presumptiv e tim e perio d from whic hyo u ma yestablis h you r baselin e actua l emissions , th e ne wprocedure s shoul d reflec t th e emission s level s tha t occu r during a norma l busines s cycle , withou t requirin g yo u t o demonstrat e t o you r reviewin g authorit ytha t anothe r perio d i s "mor e representativ e o f norma l sourc e operations. " Commenter s als o believ e tha t th e curren t methodology require s man ychange s mad e t o existing equipmen t t o g o throug hmajo r NSR , withou t taking int o accoun t operatin g history , eve nwhe n suc hchange s wil l no t resul t i nincrease d pollutio nt o th e environment . Accoid-jgiqlr , toQu r ne w applicabilit yreauirement s addres s thes e commenters ' concerns , and fcowill focu s limite d resource s mor e effectively , w e hav e se t fort htoday' s ne wapplicablit y requirement s •. W e ar e als o modifyin g th e wayexisting units ( othe r "tha nEUSGU s nua

vdetermin e whethe r thei r emission s wil l Svallowin qthemt o us e projecte d actua l emission s fo r purpose s o f thi s determination . Unde r thi s approach , i n circumstance s wher e ther e i s a reasonabl e possibilit ytha t a projec t tha t i s no t par t o f a majo r modificatio nma vresul t agains t th e PS D increments , and w e continu e t o requir e it s us e fo r suc hpurposes . 

### 3 6INU V -_ Ji—-03-J* - 14 = I V P.07/1 8

Intentalon

d Deliberativ

e Draft

- Do no t quote , cite , copy , or distribute . Octobe r 29 , 200 2 

### mus t sen dacop yo f

th eprojection s an dothe r infprmatio ntf

o thei r "reviewin g authorit ymakecy&ry 

# I

detejiminatioxibefore beginnin g actua l construction , If . fo r a projec t a t a nexisting emission s uni t a t a majo r stationarysource , yo u elec t t o us e th e actual

to-projected-actua l emission s test , w e ar e als o requirin g vo u t o maintai ninformatio no nyour , post chang e emissions , fo r 5 year s following a physica l o r operationa l change , o r i nsome case s fo r 1 0 year s dependin g o nth e natur e o f th e change . I f your„_annua l emission s excee d th e baselin e actua l emission s b va significan t amoun t and als o excee d vou r projection , vo u mus t repor t thi s informatio nt o vou r reviewin g authorit ywithi n6 0 day s afte r th e en d o f th e calenda r year . EUSGU s usin g th e actual-to-projected-actua l emission s tes t mus t repor t thei r post-chang e emission s t o r reviewin g authoritie s withi n6 0 day s afte r the im en d o f th e calenda r yea r withou t regar d t o whethe r suc h emission s excee d th e baselin e actua l emission s o r projecte d actua l emissions . Instea d o f projectin g you r post-chang e emissions r al l existin g emission s unit s ma vinstead projec t post 5 4. IUV-K JI -CKVOri. 1 <4 ; < ^ P.07/1 8 P. 9

Internal , andDeliberativ eDraft - D ono tquote , cite , copy , o rdistribute . Octobe r29 , 200 2 mus tsen dacop yo f th eprojection s an dothe r i n f <prmatio nt_

b thei r'reviewin gauthorit ymak eevar y 

# 4

determinationbefor e beginnin g actua l construction . If . fo r a projec t a t a nexisting emission s unit,a t a ma^o r stationarysource , yo u elec t t o us e th e actual

to-projected-actua l emission s test , w e ar e als o requirin g vo u t o maintai ninformatio no nyou r post chang e emissions , fo r 5 year s following a physica l o r operationa l change , o r i nsome case s fo r 1 0 year s dependin g o nth e natur e o f th e change . I f vou r annua l emission s excee d th e baselin e actua l emission s b ya significan t amoun t and als o excee d vou r projection , vo u mus t repor t thi s informatio nt o you r reviewin g authorit vwithi n6 0 dav s afte r th e en d o f th e calenda r

EUSGU s -usin

g th e actual-to-projected-actua l emission s tes t mus t repor t thei r post-chang e emission s t o reviewin g authoritie s withi n6 0 day s afte r th e end o f th e calenda r yea r withou t regard t o whethe r suc h emission s excee d th e baselin e actua l emission s o r projecte d actua l emissions . __M_8JH-E_ess^55HB-BTe«Mt-5-2=«S555--ee»« B es5- ^ Instea d o f projectin g you r post-chang e emissions , al l existin g emission s unit s ma vinstea d projec t post 5 4P.1 0

NOU-07-200 2 13:0 2 P.01/1 9

To ; Fox #
From : 

# -_^___H_l_K

y FA XTRANSMISSIO N OFFIC E O FINFORMATIO N ANt > Heeuurow

AFFAIR S OFFIC E O FMANAGEMEN TAN D BUDGE T NATURA L RESOURCES , ENe*e vAN D AGRICULTUR E BRANC H 72517t h Street , NW , Roo m 10202 Washington , D

C 2050 3 Office : 202-395-3084/Fox : 202-395-728 5

bate : Pages : ) Ar tFraa s ) Ric h Therou x ) Ji m Lait y ) Amand a Le e t > 4 Am yFarrel l ) Bryo n Alle n ) Margi e Malanosk i ) Davi d Rostke r ) Rut h Solomo n ) Edmon d Toy 

# Jil l 

# n,

1 6

. , includin g thi s cove rsheet .

Comments :

MX5HEET.I* -NOU-07-200213:0 2

' •'.'. : ':J. V '?&-.„• ! '.'•••

••'}; P.1 1 , P.02/1 9

•

> rV^l'^r.' f 'C ' ^VXntMMi/'aad'DeiiberativB^raft - D ono tquote /

oite , copy , o r

distribute. ' [•}£%!J;$$$*Zr/<.-:\'i.'r.'..''•'. .'" . Octobe r 2J , 200 2 .V'th e unit' s 24-mont hbaselin e perio d and i s unrelate d t o th e change . Onc e th e appropriat e subtraction s hav e bee nmade , th e fina l valu e fo r th e projecte d actua l emissions , i nton s pe r year , i s th e valu e tha t yo u compar e t o th e baselin e actua l emission s t o determin e whethe r you r modificatio n projec t wil l resul t i na significan t emission s increase . Th e adjustments , t o th e pfojection • o f projecte d actua l emission s allow s yo u t o exclud e fromyou r projectio nonl y th e amoun t o f th e emission s increas e tha t i s no t 

## 0 7 r«Ulsod( T ) t o th e physica l o r operationa l change(s) . I ncomparin g you r projecte d actua l emission s t o th e units ' baselin e actua l emissions , yo u onl ycoun t emission s increase s tha t wil l resul t fromth e constructio n project.— r

Fo r example , a s wit hth e electri c utilit y industry , yo u ma yb e abl e t o attribut e a portio n o f you r emission s increas e t o a growt hi ndemand fo r you r produc t i f yo u wer e abl e t o achiev e thi s highe r leve l o f productio n durin g th e consecutiv e 24-mont hperio d yo u selecte d t o establis hth e baselin e actua l emissions , and th e increase d demand fo r th e produc t i s unrelate d t o th e change. — Fo r Clea nUnits , i f a give nprojec t ca nb e constructe d and operate d a t a Clea nUni t withou t causing th e emission s uni t t o los e it s Clea nUni t status , the nn o emission ^ 7 3P.1 2

NOV-87-200 2 13:0 3 P.03/1 9

Internal an' d Deliberativ e Draft

- Do so t quote , cite , copy , or distribute . Octobe r 29 , 200 2 increas e wil l occur . Fo r ne wunits / however , yo u mus t continu e t o calculat e post-chang e emission s o n th e basi s o f a unit' s PT E (including lowe r enforceabl e leval a whe n applicable). — 3£ . Wil l myprojectio no f projecte d actua l emission s becom e a nenforceabl e emissio nlimitatio na e suggeste d i n th e 199 8 NOA? - No , w e di d no t adop t a requirement

- &&'$ * ;l d eaLabl j you r pi'ojeetio no f

projeeted-actua i emission ^a s afederall y enforceabl elimitation-.—Notwithstanding

- th efebsenceo f suc h a nearfQiimeablB " restrictionsuc harequirement/ . $ yo uar ea nexistin g emission s unit((othe r t2ia naEUSGDland

JSGU) < you r constructio n projec t result s i n both- a significan t emission s increas e and a significan t ne t amissiona-increas e a t the? ma-io

r staLionarvaouxaea n increas e i n annua l emission s tha t exceed s th e baselin e actua l emission s b va sicrnifican t amount , and differ s fromyou r preconsLructio n pr o j ectio no f post-chancr e emission s tha t yo u wer e require d t o calculat e and maintain , record s of . the nyo u mus t repor t thi s increas e t o you r reviewing authority , eon-sistent wit h today' s representative-actual-annua l emissio ntesta ; EUflQCT s

7 4 •

# I P.1 3

NOU-07-200 213:0 3 P.04/1 9

. . • . ' i
Internal «n

d Deliberativ

e Draft * Do no t quote , cite , copy, , or distribute . •'•\j,K

: .: ; : -,-\ 0ctob«r2S| , 200 2 repor t annuall ythei r post-chang e annua l emijaio n reportsemission s t o the . reviewing authorit yunde r the net * tgEPC O Lest-—-fle e 3ectioi.an voccurrenc e o f a significan t increas e wil l b e covere d unde r tha t repor t fo r th e affecte d calenda r year . Se e sectio nII.D. 6 o f thi s preambl e fo r a mor e detaile d discussio no f the reporting requirements .
473

- Ho w&°* determin e ho wlong myprojectio no f projecte d actual-pos t - chang e emission s wil l b e tracke d t o ensur e tha t m yprojec t i s no t a majo r modification ? Generally , you r projectio n o f projecte d actua l emission s mus t b e tracke d agains t you r facility ' s iM post chang e emission s fo r 5 year s following completio no f th e change s whethe r yo u ar e a nEUSGUo r othe r typ e o f existing emission s unit . W e wil l presum e tha t anyincrease s tha t occu r afte r 5 year s ar e no t associate d wit hth e physica l o r operationa l changes . However , yo u ma yb e require d t o trac k emission s fo r a longe r perio d o f time unde r aertainth e followin g circumstances . Tha t is , I f yo u ar e a n existing emission s uni t fullll l f^ilESwiliSBffiraf

r and on e o f th e effect s o f you r physica l o r operationa l change(s ) i s t o increas e a unit' s desig n capacit yo r PTE , ouc htha t a _Ujjuirica.iL emij,^iuu

a incxeas e ccul d result , bu t yo u da UO L beli e n e LhaL 7 5P.1 4

NOU-07-200 2 13=0 4 P.05/1 9

Internal an

d Deliberativ

e Draft

- Do no t quote , cite , copy , or distribute . Octobe r 29 , 200 2 th e ne wcapacit yo r PT E wil l b e full yutilise d (s o a s no t I c cause 1 -a•significan t ne t emission s increase),yo u must.trac k you r emission s fo r a perio d o f i o year s afte r th e completio n o f th e cuii j tru e Lio n project . Thi s extende d perio d allow s fo r th e possibilit ytha t vo u coul d en d u p usin g th e increase d capacit yngar e thafe n yo u adde d vi a th e physica l o r upeiaLlona l change s coul d b e fully

- utilize d durin g a norma l bas-ities s cycle.—Likewise,—if-you-ax e a EU3QU, you'mayb e require d t o trac k you r emission s fo r a period-of-1 0 years , i f th e reviewing - authorit ydetermine s tha t thi s longe r perio d i s mor e representativ e of-normal 1 sourc e operations•.

- €-rpro^ected and suc hus e migh t lead t o significan t emission s increases . 4 . Wha t ar e th e reportin g and fo r modiffc^io n projects ^ When , according - t o you r bes t calculations 1 .- , th e physica l o r operationa l changes'yo u ar e planning t o mak e t o on e O J mor e existin g emissions'unit s (other tha na nEUflGU 1 ) - -qt ' yoa r majo i staLiunary-sourccReportih g an d recordkeeping fo r a projec t i s recfuire d whe nthre e criteri a ar e met : 1 ) vo u elec t t o projec t post-chang e emission s rathe r tha nus e PTE ; 2 ) ther e i s a reasonabl e possibilit ytha t th e projec t wil l

" —-r-r^ —mMmmm\mmmmm^SSS^Lamm^m\\m-mt,tmmmmWS^\,^S,^S;S^Kt^La\m\mm^ X '"• •k a _S_eS-HP-^Sfe-SS^^CP-BEC-S5 S resul t i na significan t emiaaion s increase : and 3 ) th e 

# I

recordkeeping



### 7 6NOU-07-200 2 13:0 4 P.1 5 | P.06/1 9

Internal 'an

d Deliberativ

e Draft

- Do not quote , cite , copy, , or distribute . Octobe r 29 , 200 2 above , yo u ar e als o obligate d t o ensur e tha t th e necessary emission s informatio nyo u ar e require d t o maintai n i s availabl e fo r examinatio nupo nreques t b yth e reviewin g authority? — Existin g EUflGU

s wil l hav e the-same repeating and iccordH-ecpinc j xequiiement s tha t existe d undei ; th e actual-to

lepieaentaLl-ve-actua l anhwa l emission s tesL , excep t tha t yo u wil l b e ie4uire d t o .submi t a notic e L o you r reviewin g •authorit

ybefor e beginning actua l const- , uction.—Se e • the dissuasio n earlie r o nthis-issu e i nfleet-ionII . A . of

- thi s jyjieamble .

• ? o r th e genera l public . j| . Ho wd o today' s change s affec t th e nettin g methodology fo r existin g emission s unit s (othe r tha nEUSGUs) ? I f you r calculation s sho wtha t a significan t emission s increas e wil l resul t froma modification , yo u hav e th e optio no f taking int o consideratio nanycontemporaneou s emission s change s tha t ma yenabl e yo u t o "ne t out " o f review , tha t is , sho wtha t th e ne t emission s increas e a t th e majo r stationarysourc e wil l no t b e significant . Th e contemporaneou s tim e perio d wil l no t chang e unde r th e Federa l PS D programa s a resul t o f today' s action . Tha t is , 

### •? creditabl e increase s and decrease s i nemission s tha t hav e , j 7 9 • 'P.1 6



### NUU-07-200 2 13:0 4 P.07/1 9 

# bh Interna l an

dDeliberativ

e Draft

- Do no t quote , cite

- copy , o r dlstributie . i\/yOctobe r 29 , 200 2 n^whethe r a significan t ne t emission s increas e wil l occu r a t

th e majo r stationar ysource , wil l no t chang e a s a resul t o f today' s fina l rulemaking , f However/)toda y' s rulcmakii-c ; • codifie s th e presumption 1 

### establishe dunde r th e 1392'WEPC O aiuefidiiiei-t

s, . whichth e rul e provide s tha t fo r a nexistin g EUSG Uyo uma ycalculat e th e baselin e actua l emission s a s th e averag e annua l emission s (tpy ) o f th e emission s uni t usin g an y2-yea r perio dou t o f th e 5 year s immediatel yprecedin g th e modifications—Thl bDre&Lmmtioi i (Thi s was , se t ou t a s a presumptio ni nth e preambl e fo r th e 199 2 WEPC O amendments ) . Thi s rul e recognize s th e natur e o f utilit yoperation s withou t compromisin g th e regulator ylanguag e -tha t •••requires t-ha t t-h e 2-yea r perio duse di ndefinin g th e baselin e actua l emission s b e rcureaentaLiv e o f "normal " oueratiunsordinar y variabilit yi ndeman dfo r electricity . [See , fo r example , ne w§52.2 1 (b ) (21 ) (ii ) J Fo r example , a s a syste ma utility' s "normal " operations7mean s directl yrespondin g L o a deman dfo r electricity.—ft a col dwinte r o r ho t summe r wil l resul t i n hig hlevel s o f "normal " operationsdeman dwhil e a relativel y mil dyea r wil l produc e lowe r "normal f f 

### operationsdemand . B y allowin g a utilit yt o us e an yconsecutiv e 2 year s withi nth e pas t 5 , th e rul e bette r considersrecoo/nize s tha t electricit y 8 2 

# IP.1 7

NOU-07-200 2 13:0 5 P.08/1 9

Internal an

d Deliberativ

e Draft

- Do no t quote , cite , copy , or distribute . Octobe r 29 , 200 2 deman d an d resultan t utilit yoperation s fluctuat e i n respons e t o variou s factor s suc ha s annua l variabilit yi n Climati c o r economi c condition s tha t affec t demand , o r change s a t othe r plant s i nth e utilit ysystem tha t affec t th e dispatc ho f a particula r plant . B yem.aai_dir.era l lowin g utilitie s t o us e a s a baselin e fo r a utilit yt o any consecutiv e 2 year s i nth e las t 5 vears . thes e type s o f fluctuation s i noperation s ca nb e mor e realisticall y considered , wit hthe resul t being a baselin e mor e closel y representativ e o f norma l operation .



### ran f aurma luperafcion . . , / . ,*J 

## ; ydu,wiii == 

## g_ajLiiiu Ht omavi aL..C uppuitL-uit y

-v . AJliffu^^ •^•^w< - f<rC** <A{*>V\

X. dji+tmi/^

ficv n -t^vrt ^«- q^•_--p l ^g« - afl^.>i-juiww+'li«jw f vara- yam ? y-nyiawia a authorit y - fchnr nnnthp r haoelin o periud UUfdid ULli e Lyfjiga_:- 3 voa r pe3Ei»oeHg.i

J mui u rcproocaitativ o o f th e emiooion o unites —
w ric_2_ffl-y>S-_^>perat.ion. > ...Thi s opportunit yi s no t availabl e unde r th e ne w10-yea r loo k bac k approac htha t i s -applicabl e t o al l othe r eixisti-u

g emissions ' unit s whe nyo u pla n t o modif ythem . I t ehould-b e note d tha t th e "2-year-in-5 " baselin e metho d applicabl e t o modification s a t existing EUSGUdoe s not--appl yt o pas t modification s a t BUflG Ufo r th e purpose-o f determinin g contemporaneou s emission s changes:—This

positio nwa s state d i nth e 199 2 WEP0 0 rulemaking , and i t i a no t bein g alLcre d i ntuday' s rulemaking.—fle e 5 7 P R32323 , 8 3P.1 8

NOU-07-200 213:0 5 P.09/1 9

< 

### Interna l an

dDeliberativ

e Draft

- D o no t quote , cite , dopy , or distribute . October 29 , 200 2 ' M th e industrie s analyzed , busines s cycle s diffe r markedl yb y industry , an d ma yvar ygreatl ybot hi n duratio nan d intensit yeve nwithi na particula r industry . Nevertheless , w e conclude dfro m

th e studytha t l o year s o f dat a i s reasonabl e t o captur e a n entir e industr ycycle . Comment s fro mvariou s industrie s suppor t a conclusio ntha t a 10-yea r loo k bac k perio di s a fai r an d representativ e tim e fram e fo r encompassin g a source' s norma l busines s cycle . W e believ e tha t th e us e o f a 10-yea r loo k bac k perio d wil l hel p provid e certaint yt o th e proces s an d eliminat e th e ambiguit yan d confusio ntha t ca n occu r whe na napplican t an d th e reviewin g authority ' disagree^o nwha t tim e fram e provide s th e perio dmos t representativ e o f norma l sourc e operation . Th e ne wrequirement s als o provid e certaint yt o th e loo k bac k period , sinc e ther e i s n o opportunit yt o selec t anothe r perio do f tim e outsid e thi s 10-yea r perio d(se e additiona l discussio ni n^sectio nII,E.2. ) I n addition , w e hav e place d certai nrestriction s o nwhe nth e ful l 10-yea r loo k bac k perio dma yb e used . (Se e fJgectionII.E.3. ) Wit hregar dt o th e concer ntha t industr yma ytr yt o appl yth e ne wrequirement s retroactivel yt o und o curren t industria l Classificatio n(SIC ) cod e fo r individua l industrie s (OMB , 1987) . maiviaua l 9 6 •P.1 9

jNOU-07-200 213=0 5 P.10/1 9



# < ? Internal an

d Deliberativ

e Draft

- Do no t quote , cite , copy , or distribute . Octobe r 29 , 200 2 nonattainmen t are a o r ozon e transpor t region . (Se e 61 F R 38259 , Jul y23 , 1996. ) However , becaus e w e ar e no wbeyond th e poin t wher e th e Novembe r 15 , 199 0 limi t i s relevan t t o modifications , w e ar e onl yapplying thi s limitatio nin in the nettin g contex t wit hrespec t t o emission s unit s change d withi nth e contemporaneou s perio d fc r a modification . 4 . Whywer e change s mad e t o th e propose d approac hfo r establishin g baselin e actua l emission s usin g a 10-yea r loo k back ? Commenter s rais e specifi c question s abou t ho wt o us e th e 10-yea r loo k bac k t o calculat e a nemission s unit' s baselin e actua l emissions . Severa l commenter s ar e concerne d abou t ho wth e utilizatio nrat e woul d b e considere d i nth e calculation . Fo r example , some commenter s suppor t th e proposa l t o allo wsource s t o us e thei r highes t capacit y achieve d durin g anyconsecutiv e 1 2 months , becaus e i t provide s improve d flexibilit yi nestablishing a capacit y leve l tha t i s representativ e o f norma l operations . However , othe r commenter s objec t t o usin g the 1 2 month s wit hth e highes t utilization . Thes e commenter s argu e tha t th e us e o f productio nrate s ca nb e unworkabl e becaus e ther e i s no t alway s a clea r relationshi p betwee nproductio nrat e and emissions , i n addition , reliabl e record s ma yno t b e 

### 10 2P . 11/1 9

NOU-07-200213:0 6

Interna landDeliberativ eDraft - D ono tquote , cite , copy , o rdistribute . Octobe r29 , 200 2 

# fan exten t tha t th e reduction s resulte d hef condition s tha t ar e enforceabl e a a a •practica l matterlimitations . 5 . Ho wdoe s th e chang e i nth e baselin e perio d affec t relate d requirement s regardin g protectio no f ai r quality ? a . Ho wdoe s th e extende d baselin e perio d conformwit hth e specia l modificatio nprovision s unde r section s 182(c ) and (&) o f th e Act ? Mos t commenter s fee l th e propose d extensio no f th e loo k bac k perio d fit s withi nth e desig nan d inten t o f th e specia l modificatio nprocedure s se t fort hi nsection s 182(c ) and (e ) o f th e Act , applicabl e i nserious , sever e and extrem e ozon e nonattainmen t areas . However , on e commente r representin g Stat e and loca l ai r pollutio ncontro l agencie s consider s th e ne wrequirement s t o b e i nsignifican t conflic t wit hth e specia l modificatio nprocedure s containe d i n thos e section s o f th e Act . Th e commente r indicate s tha t thi s conflic t coul d b e resolve d b ydeferrin g t o relevan t requirement s fo r modification s i n serious , sever e and extreme areas . Th e commente r add s tha t whil e NS Rprogram s ar e tool s t o attai n and maintai ncomplianc e wit hth e NAAQS , the yshoul d no t b e availabl e t o undermin e specifi c statutoryand SI P requirement s designe d t o resolv e nonattainmen t problems . W e disagre e wit hth e commenter' s concer ntha t th e us e 10 6 

# I

•P.2 1

Nuv-l37-<4_ld

2 13:0 6 P . 12/1 9

Interna l an

d Deliberativ

e Draft

- D e no t quote , cite , eopy , oi r distribute . October 2* , 200 2 ^ baselin e actua l emission s (fo r purpose s o f determinin g whethe r a physica l o r operationa l chang e wil l resul t i nadf 5KYU/"K>I(- ' emission s increase ) wil l caus e an yadvers e environmenta l impacts. — 6 . wh ywa s th e contemporaneou s perio d fo r nettin g no t als o change d t o a 10-yea r loo k bac k period ? I nth e 199 6 NPRM , w e indicate d tha t w e wer e no t proposin g t o exten d th e 5-yea r contemporaneou s perio d alon g wit hth e propose d 10-yea r loo k bac k perio d associate d wit h th e establishmen t o f baselin e actua l emissions . (Se e 6 1 F R 38259 , Jul y23 , 1996. ) W e did , however , solici t comment s o n th e effec t o f the ' differin g loo k bac k period s an d an y reason s wh ythes e period s shoul d b e th e same . Commenter s responde d i na variet yo f way s t o ou r request , wit hn o clea r consensu s a s t o whethe r i t woul d b e appropriat e t o establis h a unifor mloo k bac k period . On e commente r support s th e 10

- yea r contemporaneou s perio d fo r reason s o f consistency . Othe r commenter s believ e tha t i t wa s reasonabl e t o us e tw o differen t tim e frames . Som e commenter s suppor t retainin g th e 5-yea r contemporaneou s perio d becaus e changin g i t coul d hav e advers e effect s o n existin g permi t determinations . Severa l commenter s suppor t th e selectio no f a differen t contemporaneou s tim e fram e othe r tha nth e existin g 5-yea r 11 0P.2 2 P.13/1 9 NOU-07-200

213:0 6

Interna landDeliberativ eDraft - D ono tquote , oite , copy, ' o rdistribute . Octobe r29 , 200 2 period , bu t differe d i nthei r recommendatio nfo r changing . it . On e suggest s givin g th e sourc e th e optio no f choosing eithe r a 10-yea r o r 5-yea r contemporaneou s period . Anothe r commente r believe s tha t a l-yea r perio d woul d reduc e confusion . Finally , anothe r commente r propose s a 5-yea r contemporaneou s perio d tha t woul d no t mandat e tha t consecutiv e 5 year s b e considered . W e d o no t believ e tha t ther e i s a compellin g reaso nt o chang e th e existin g 5-yea r contemporaneou s period . Th e loo k bac k period s serv e differen t purpose s and nee d no t b e th e sam e i n orde r t o effectivel yimplemen t th e NS Rprogram objectives . State s retai nth e flexibilit yi ndefinin g a differen t contemporaneou s perio d unde r SIP-approve d NS R programs , and ma yus e tha t flexibilit yt o adjus t th e contemporaneou s perio d i f the ybeliev e tha t a differen t perio d i s mor e appropriate,fo r thei r purpose s unde r th e ne w applicabilit yrequirements . [See , fo r example , §51.166(b)(3)(ii). ] Therefore , unde r today' s ne w requirements , w e hav e no t change d th e 5-yea r contemporaneou s perio d unde r th e Federa l PS D program . I t shoul d b e note d u r r I tha t fo r purpose s o f determining the baselin e actua l 4 * C/fc-* ^ emission s o f a contemporaneou s chang e i nemission s fro ma n emission s uni t tha t wa s a nexisting uni t a t th e time o f th e il lP.14/1 9

, NDU-07-200213:0 7

Interna lan dDeliberativ eDraft - D ono tquote , cite , eopy , o zdistribute . Octobe r 29 , 200 2 appl yth e causatio nprovisio na s originall ycontaine d i nth e WEPC O amendments . ..Bot hth e statut e and implementing , regulation s indicat e tha t ther e shoul d b e a causa l link betwee nth e propose d chang e and anypost-chang e increas e i n emissions , tha t is , "...an yphysica l chang e o r chang e i nth e metho d o f operatio ntha t would result in a significan t ne t emission s increase... " [emphasi s added] . [See , fo r example , existin g §52.21(b)(2)(1). ] Consequently , unde r today' s ne w rules , whe na projecte d increas e i nequipmen t utilizatio ni s i nrespons e t o a facto r suc ha s growt hi nmarke t demand , yo u ma ysubtrac t th e emission s increase s from th e unit' s projecte d actua l emission s i f yo u ca nsho wthat : (1 ) th e uni t coul d hav e achieve d th e necessaryleve l o f utilizatio n durin g th e consecutiv e 24-mont hperio d yo u selecte d t o establis hth e baselin e actua l emissions ; and (2 ) th e <_\»r«ri M

, increas e i s no t a11xibutablerelate d t o th e physica l o r operationa l change(s ) mad e t o th e unit . [Se e fo r example , ne w§52.2 1 (b ) (41 ) (ii ) (c ) . ] O nth e othe r hand , demand growt hca nonl yb e exclude d t o th e exten t tha t th e physica l o r operationa l chang e i s no t aLtributablerelate d t o th e emission s increase . Thus , eve n i f th e operatio no f a nemission s uni t t o mee t a particula r leve l o f demand coul d hav e bee naccomplishe d durin g th e 11 4 

# INOU-07-200 2 13:0 7 ^__

_P.2 4 P.15/1 9



# I interna l 'an

dDeliberativ

e Draft

- D o no t quote , cite , copy , or distribute . October 29 , 200 2 determinin g a-significan t emission s au d on e fo r determinin g a significan t ne t emission s increase ) present s a n unreasonabl e burden-.—Moreover , w e hav e retaine da differen t methodolog yfo r th e WEPC O tes t an d fu r nettin g fo r EUOQUa . W e ar e no t awar e o f anyabsur dresult s o r undu e bmrde n place do nEUSGU s fro mth e WEPCO - rules . Accordiiigly , w e ar e

. no L ej.tendin

g th e "actua l t o fu-ture annual" ' methodology ' fo r computin g contemporaneou s increaset . -o r decrease s fro mHi e othe r emission s units

- a t a mano r stationar ysourceA s state d previously , w e di d no t specificall yreques t commen t o$. thi s issu e an d w e hav e n o plan s t o appl ythi s tes t t o nettin g a t thi s time . AIAZS 

### /jJ^io® & wk

<$*+ 4A'* WA^I ^ 

### e* | ll . Shoul dw e impos e a nenforceabl e projecte dactua l emission s level ? ~~lf r 

### & Som e commenter s o nou r 199 6 proposa l suppor t th e C^f\lv^L establishmen t o f a nenforceabl e limitatio no nth e modifie d source' s projecte dfutur e emission s level . Othe r commenter s suppor t ou r specifi c proposa l i nth e 199 8 NO At o us e th e projectio no f projecte dactua l emission s a s a temporar ycap fo r th e emission s unit s involve di nth e modificatio n project , tha t is , a nenforceabl e 10-yea r emission s level . O nth e othe r hand , man yothe r commenter s oppos e th e concept , citin g variou s reason s fo r thei r opposition . Thes e 12 1• NOU-07-200 213=0 7 P.16/1 9

Interna lan dDeliberativ eDraft - D o no tquote , oite , copy , o r distribute . Octobe r 29 , . 200, 2 include d concern s tha t i t woul d becom e a d_ s fact o baselin e fo r anyadditiona l permittin g and creat e additiona l enforcemen t liability , usurp Stat e prerogatives , b e inconsisten t wit hth e Clea nAi r Act , and requir e enforceabl e restriction s fo r to o long . Afe wstat e and loca l ai r permifc.timareviewin g agencie s indicat e tha t the ydi d no t hav e th e resource s t o adequatel yadministe r a programtha t woul d requir e permit s t o b e issue d fo r everyphysica l o r operationa l chang e a t a majo r stationarysource. - Today' s ne wrequirement s follo wth e 199 6 proposal . Yo u wil l no t be^require d t o mak e th e projecte d actua l emission s protection* ' througha permittin g action . Afte r considering the\comment s received , w e ar e concerne d tha t suc ha requiremen t ma yplac e a nunmanageabl e resourc e burde no n -.ermitti mreviewin g authorities . W e als o believ e tha t i t i s no t necessar yt o mak e you r futur e projection s enforceabl e i n orde r t o adequatel yenforc e th e majo r NS Rrequirements . Th e Ac t provide s ampl e authorit yt o enforc e th e majo r NS R requirement s i f you r physica l o r operationa l chang e result s i na significan t ne t emission s increas e a t you r majo r stationar ysource . 12 . Whyar e modifie d source s tha t ar e no t considere d majo r modification s no t require d t o submi t annua l report s o f 12 2 <P.2 6

11 - NpU-07-20021 3 = 0 7 P.17/1 9

Interna landDeliberativ eDraft - D ono tquote , cite , copy / o rdistribute . Octobe r29 , 200 2

» record s i f vo u elec t t o us e th e actual-to-pro-)ected-ac t

emission s tes t t o calculat e vou r emission s increas e fro mth e pro-ject . Second , yo u ar e onl yreguire d t o kee p th e record s i f ther e i s a reasonabl e possibilit ytha t vou r projec t micfot resul t i n a significan t emission s increase . Finally , yo u onl ynee d kee p thos e record s fo r project s tha t ar e no t majo r modifications . W e als o considere d requiring yo u t o submi t a nupfron t notificatio n t o you r reviewing authority , bu t conclude d tha t thi s woul d resul t i na nunnecessarypaperwor k burde n(excep t EUSGUs ) . W e anticipat e tha t a larg e majorit yo f th e project s tha t ar e no t majo r modification s ma ynonetheles s b e require d t o underg o a permi t actio nthroughStates ' mino r NS Rpermi t programs . I nsuc hcases , th e mino r NS R permittin g procedure s coul d provid e a nopportunit yt o ensur e tha t yo u and you r reviewin g authorit yagree s wit hyou r emissio nprojections . Requiring a separat e notificatio n woul d no t provid e th e reviewing authorit ywit hany additiona l informatio ni nsuc hcircumstances . Accordingly , w e believ e today ' s requirement s provid e permiLtincireviewin g agencie s wit hth e abilit yt o obtai nal l the.informatio n necessar yt o ensur e compliance . 13 . Wh yar e w e promulgating^ajdifferen t applicabilit ytes t 12 5P.2 7

NOU-07-200 2 13=0 8 P.18/1 9

i-,^raf.;*ac»ry.'-' , internal an

d Deliberativ

e Draft

- Do not quote , oite , copy ; or.distribute.''' : '^^-r^ $

. Octobe r 29 , 200 2 • ' : ' " "^'TM^'

- ma yb e desirabl e t o hav e th e same leve l o f oversigh t o n constructio nand modificatio nfo r anytyp e o f emission s units , thi s approac hi s impractica l du e t o resourc e constraint s a t reviewing authorities.—I f al l sourc e categorie s wer e require d t o submi t a notic e t o th e reviewing auLhority , w e ar e concerne d Lha t the reviewin g authorit ymay overloo k iiuLiuea submitte d b yEUOOUs.—Thua , w e ar e choubing L o focu s reviewing auL..oiilica r rebuurut J o nBUSO Ubecau.s e Lhe yrepresen t a proportionall yhighe r amoun t u f emission s i n mos t Qtat e -emission s inventorie s -tha n -an yothe r • category o f entxasion

a units .

Te.. L tfa

a I'l^^-j d FroA i Here.—3 : !Poday

f s-fdnal-rul- e contain s recurdkeeping and 1 reporting requirement s fo r existing emission s unit s rathe r than

- th e annua l reporting requirement s a s require d fo r EUSOUa.—fts

state d earlier , w e think thai

- -either-"approac hprovide s a n effectiv e mec.jBaiiism-fo r permitting-author!tic s t o enfurc e th e major-NS Rrequirements.—However 1 , - again , becaus e EfrggU s represcn L a proportionall yhighe r •percentag e o f Stat e emission s ••inventories , w e believe'tha t i t i & beneficia l fo r permittin g authoritie s t o receiv e annua l emission s informatio nfro mthes e source s t c • con-fir mLhei r complianc e 12 7NOU-07-200 2 13=0 8 P.19/1 9

Interna lan

dDeliberativ eDraft - D oso tquote , cite , copy , o rdistribute . October29 , 200

2 f



# o< ''believ

e PAL s base d 

## ,* 1 and assur e envisrbnm i affecte d source s ha d adequat e /
. .fero lriaftfuijemeTifec | . Therefore./w einten di nth e nea rfutur eto~-propos earul esoe^_rg±<a a1 1 vafjdrAegriawrPALs 

# I

Analogou s t o wha t th e PAL doe s fo r facilities , th e Clea nUni t tges t set s emission s limitation s o r wor k practic e requirement s i nconjunctio nwit hBACT , LAE Ro r Clea nUni t determinatio nand identifie s anyphysica l o r operationa l characteristic s tha t forme d th e basi s fo r th e BACT , LAE Ro r Clea nUni t determinatio nfo r a particula r unit . Th e Clea n Uni t tges t recognize s tha t when ^ yo u g o throughmajo r NS R revie w(including ai r qualit yreview ) and instal l BAC T o r LAE Ro r comparabl e technology , the nvo u ma ymak e any subsequen t change s t o th e Clea nUni t withou t triggering a n additiona l majo r NS Rrevie wa s long a s ther e i s n o nee d fo r a chang e i n th e emissions

- limitation s o r wor k practic e requirement s i nth e permi t fo r th e uni t adopte d i n conjunctio nwit hBACT , LAE Ro r Clea nUni t determinatio no r t o alte r anyphysica l o r operationa l characteristic s tha t forme d th e basi s fo r th e BACT , LAE Ro r Clea nUni t determination . Therefore , fo r Clea nUnits , give ntha t th e 13 6

TOTA L P.1 9