Statement of the Air and Radiat ion Management Administration Department of the Environment for the Public Hearing Relating to Amendments Necessary to Implement the Requirements of the federal PSD and Title V Greenhouse Gas Tailoring Rule held on February 15, 2011 Baltimore, MD

My name is Deborah Rabin. I am the Regulations Coordinator for the Air and Radiation Management Administration, Department of the Environment.

This public hearing is being held pursuant to the requirements of 40 CFR Section 51.102, 40 CFR Section 70.4, and Sections 2-301 et. seq. of the Environment Article, Annotated Code of Maryland. It is also being held in conformance with the State Administrative Procedures Act under the State Government Article, beginning at Section 10-101.

Notice of this hearing appeared in the:

Maryland Register on January 14, 2011; MDE's website from January 11, 2011 through February 16, 2011; Baltimore Sun on January 14, 2011; Washington Post on January 13, 2011; and the St. Mary’s Enterprise on January 14, 2011.

Copies of these notices were submitted for the record.

Copies of this proposed action and supporting documents were made available for review by the State Clearinghouse and are also submitted at this time into the hearing record. Copies were also made available for public inspection at the Air and Radiation Management Administration offices in Baltimore, Cumberland, and Salisbury, and at all local health departments or local air quality control offices.

The purpose of today's hearing is to give the public an opportunity to comment on proposed amendments to implement the requirements of EPA's Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule.

Summary

The purpose of this action is to implement the requirements of the EPA's PSD and Title V Greenhouse Gas Tailoring Rule published in the Federal Register on June 3, 2010.

The Tailoring Rule limits the applicability of the existing PSD and Title V operating permit requirements of the Clean Air Act as of January 2, 2011 so that it does not apply to all stationary sources that emit or have the potential to emit greenhouse gases at the 100 or 250 tons per year levels provided under the Act.

1Excluding applicability of the PSD and Title V operating permit requirements to the 100 and 250 tpy thresholds will exclude very small sources, such as apartment buildings, office buildings, and restaurants. The Tailoring Rule phases in the applicability thresholds for both the PSD and Title V operating permit programs for sources of GHG emissions, by establishing the first two steps of the phase-in for the largest emitters of GHGs. This is the first phase of regulating greenhouse gas emissions and supports Maryland law requiring a reduction in greenhouse gas emissions.

Submission to EPA for Approval

The appropriate parts of this action will be submitted to EPA for approval as part of Maryland's State Implementation Plan and Title V Program. The Department will request approval of the regulations in their entirety.

Requirements of EPA’s Tailoring Rule

EPA will phase in the CAA permitting requirements for GHGs in two initial steps which are described in the Notice of Proposed Action published in the MD Register on January 14, 2011.

Explanation of Specific Amendments

The following regulations under COMAR 26.11 have been amended to implement the Tailoring Rule requirements:

1. COMAR 26.11.01.01B - definitions were added for: • "CO2 equivalent emissions (CO2e)" which includes the calculation procedure • "Greenhouse gases (GHG)", meaning the aggregate group of 6 greenhouse gases.

2. COMAR 26.11.01.01B (37) and COMAR 26.11.06.14 - The PSD program requirements have been updated to include EPA's Tailoring Rule requirements.

3. COMAR 26.11.02.01B(44) - expanded the definition of "Regulated air pollutant" by adding greenhouse gas as defined under COMAR 26.11.01.01B( 18-1) and subject to regulation under EPA's final PSD and Title V Tailoring Rule.

4. COMAR 26.11.02.01C(1) - the definition of "Major source" has been amended to include sources of GHG subject to regulation under 40 CFR 70.2, as amended by the Tailoring Rule.

5. COMAR 26.11.02.12 - provides that the procedures for obtaining a permit to construct apply to GHG sources to which 40 CFR 52.21(b)(49(iv) or (v) apply.

Sources Affected

Most of the affected sources in Maryland are already subject to Title V or PSD requirements.

Economic Impact

2Step 1 of the Tailoring Rule will have a limited economic impact on affected sources. If an existing source is currently addressing another pollutant for PSD or in a Title V permit, then GHG requirements will also apply.

Step 2 of the Tailoring Rule, which begins on July 1, 2011, imposes Title V and PSD permitting requirements on larger sources of GHG emissions even if they would not apply based on emissions of any other pollutants.

The Department will handle Step 1 of the rule with existing staff. Staff requirements will be reevaluated for Step 2 and future steps as they are finalized by EPA.

Consideration of Comments

The Department will consider all comments before making a decision to adopt these

amendments.

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