UNITEDSTATESENVIRONMENTALPROTECTIONAGENCYREGIONIII1650ArchStreetPhiladelphia,Pennsylvania19103-2029SUBJECT:ApprovalandPromulgationofAirQualityDate:7/4’12eifImplementationPlans;Maryland;PreconstructionPermittingRequirementsforElectricGeneratingStationsinMarylandTechnicalSupportDocumentFROM:DavidTalley7j€OfficeofPermitsandAirToxis(3AP1O)AirProtectionDivisionTO:KathleenCox,AssociateDirectdOfficeofPermitsandAirToxics(3AP1I.BACKGROUNDOnMay13,2011,theMarylandDepartmentoftheEnvironment(MDE)submittedaStateImplementationPlan(SIP)revisionrequesttoEPA.OnJuly15,2011,MDEsubmittedalettertoEPAasasupplementtoitsMay13,2011submittal.BoththeMay13,2011submittalandtheJuly15,2011letterareinthedocketforthisproposedrulemaking.TheMDEistheprincipalDepartmentintheStateofMarylanddesignatedbytheGovernorastheofficialStateairpollutioncontrolagencyresponsibleforimplementingtheCleanAirAct(CAA).TheMarylandPublicServiceCommission(PSC)isanagentoftheStateofMarylandandisanindependentunitintheExecutiveBranchofthegovernmentoftheStateofMaryland.ThePSCregulatespublicutilitiesincludingelectricgeneratingstationsownedbyelectriccompaniesdoingbusinessinMarylandandisempoweredbytheStateofMarylandtoissueCertificatesofPublicConvenienceandNecessity(CPCNs)fortheconstructionandmodificationofelectricgeneratingstations.ThisSIPrevisionrequestconsistsofchangestotheMDERegulations.09and.10atCOMARTitle26.11.02.TheMDEisalsosubmittingtobeapprovedintotheMarylandSIPforfirsttime,PublicUtilityCompaniesArticle7,7-205,7-207,7-207.1and7-208,AnnotatedCodeofMaryland;Chapters02(AdministrativeProvisions)and03(DetailsofFilingRequirements)underCOMAR20.79;andregulations.01,.02,.06,and.07atCOMAR20.79.01.TheMDE’sMay13,2011SIPrevisionrequestalsoincludestheJanuary25,2011letterfromPSCGeneralCounselH.RobertErwintoSecretaryRobertM.SummersofMDE,outliningthePSC’sprocessforissuingcompletenessdeterminationsforCPCNs.AsthisletterispartoftheState’sMay13,2011officialSIPrevisionrequest,itcanbefoundinthedocketforthisproposedrulemakingaction.Theprocessfordetermininganapplicationcomplete,asoutlinedintheletter,isarequiredelementoftheCPCNprocess.UndertheCAA,majorstationarysourcesandmajormodificationsofairpollutionarerequiredtoobtainapermittoconstructpriortocommencingconstructionactivities.ThePublicUtilityCompaniesArticle’sprovisionsrequireelectricgeneratingstationsinMarylandtoobtainaCPCNfromthePSCpriortoconstructionormodification.TheCPCNswillserveasthemechanismfortheStatetoimplementPreventionofSignificantDeterioration(PSD)andNonattainmentNewSourceReview(NSR)requirementsforelectricgeneratingstationsinMaryland.EPAisproposingtoapproveMaryland’sSIPrevisionrequesttoaddthestatutoryandregulatoryrequirementsinPublicUtilityCompaniesArticleandassociatedregulationsinTitle20,subsection79ofMarylandregulationsthatwouldrequireelectricgeneratingstationstoobtainaCPCNpriortoconstruction.ThelatterprovisionsalsorequirethatalloftheairqualityprovisionsthatwouldotherwisebeincorporatedintoapermittoconstructoranapprovalissuedbyMDEmustbecontainedinaCPCNissuedbythePSC.InEnvironmentArticle2,2-402(3),AnnotatedCodeofMaryland,electricgeneratingstationsthatarenotrequiredtoobtainaCPCNfromthePSCremainsubjecttoMDE’spreconstructionpermittingrequirements.However,thecurrentSIP-approvedregulationsatCOMARTitle26,sections26.11.02.09and.10exemptelectricgeneratingstationsconstructedormodifiedbyelectricgeneratingcompaniesfromMDE’spermittingregulations.Therefore,thecurrentSIPregulationsareinconsistentwithMaryland’sstatutoryprovisioninthattheydonotpreserveMDE’spermittingauthorityforelectricgeneratingstationsthatarenotrequiredtoobtainaCPCN.EPAisproposingtoapproveMDE’sMay13,2011SIPrevisiontoamendCOMAR26.11.0209and.10tomakeMaryland’sSIPregulationsconsistentwithMaryland’sstatutoryprovisionsandtocomplywiththeCAA.ThisproposedactiontoapproveMaryland’sMay13,2011SIPrevisionwillcorrectthedeficienciesintheMarylandSIPbyeliminatingtheinconsistenciesbetweenStatestatutoryandregulatoryrequirementsforpreconstructionpermittingforelectricgeneratingstationsinMaryland.ItwillalsoensurethattheSIPisadequatetopreventsignificantdeteriorationofairqualityinareasdesignatedasattainmentorunclassifiableasrequiredbySections110(a)and161oftheCAAand40CFRPart51.166,andwillensurethattheSIPprovidesfortheattainmentandmaintenanceoftheNAAQS.Section110(a)(2)(C)oftheCAArequirestheStateSIPtohaveaprogramforregulationofconstructionandmodificationofsourcesincludingapermitprogramasrequiredbyPartCforPSDandPartDfornonattainmentNSRofTitleIoftheAct.II.PROGRAMREVIEWMarylandDepartmentoftheEnvironment(MDE)Table1-COMARTitle26.11.02Permits,Approvals,andRegistrationThefollowingisabriefsummaryofthechangesenactedonNovember16,2009.Section-StatusDescriptionRegulation.09ModifiedRequireselectricgeneratingstationstoobtainaSourcesSubjectpreconstructionpermitforactivitiesnotrequiredtoreceiveatoPermitstoCertificateofPublicConvenienceandNecessity(CPCN)ConstructandfromtheMarylandPublicServiceCommission(PSC)beforeApprovalscommencingconstruction.[COMAR26.11.02.09A-D]2Table2-COMARTitle26.11.02Permits,Approvals,andRegistrationThefollowingisabriefsummaryofthechangesenactedonNovember16,2009.SectionStatusDescriptionRegulation.10ModifiedExemptsfrompermittingunderTitle26onlyelectricSourcesExemptgeneratingfacilitiesthatarerequiredtoobtainaCertificatefromPermitstoofPublicConvenienceandNecessity(CPCN)fromtheConstructandMarylandPublicServiceCommission(PSC)beforeApprovalscommencingconstruction.[COMAR26.11.02.1OA-X]MarylandPublicServiceCommission(PSC)Asstatedpreviously,thePSCregulatespublicutilitiesincludinggeneratingstationsownedbyelectriccompaniesdoingbusinessinMarylandandisempoweredbythestatetoissueCPCNsfortheconstructionandmodificationofelectricgeneratingstations.TheregulatoryandstatutoryprovisionsthatgovernthePSCprocessarebeingproposedforinclusionintotheSIPforthefirsttime.ThePublicUtilityCompaniesArticle’sprovisionsandtheassociatedPSCregulationsunderCOMARgovernmorethanCAArequirementsandairqualityissues,andCPCNsareissuedbythePSCthroughanadjudicatoryprocessunlikeMDE’spreconstructionpermitreviewprocess.Therefore,weareproposingtoapproveintotheSIPonlythoseregulatoryandstatutoryprovisionsthatgovernthePSCprocesswhicharenecessarytoimplementCAArequirements,andaretakingnoactiononthoseportionsofMaryland’ssubmittalwhichareunrelatedtorequirementsoftheCAA.DescriptionsoftheregulatoryandstatutoryprovisionsthatgovernthePSCprocessbeingproposedforapprovalintotheSIPareprovidedinTables3—6,below.Table7identifiesofthoseprovisionsintheMay13,2011submittaluponwhichEPAisnotacting.Table3-COMAR20.79.01GeneralThefollowingisabriefsummaryoftheadditions.TheseregulationswereenactedbythestateonDecember28,2009.SectionStatusDescription.01NewScope:Defineswhoissubjecttothesubtitle.Approving___________.O1A,.O1Cand.O1Donly..02NewDefinitions:Addingdefinitionsfor“Aestheticsite”,“Applicant”,“Application”,“Approval”,Archeologicalsite”,“Associatedtransmissionline”,“Commence”,“Construction”,“Demand”,“Electriccompany”,“Generatingstation”,“Historicsite”,“Linearfacilities”,“Modification”(exceptasnotedbelow),“On-sitegeneratedelectricity”,“Person”,“Project”,“Publicairport”,“Regulatedpollutant”,[COMAR20.79.0l.02A,B].06NewModificationstotheFacilitiesataPowerPlant.Requiresapprovalpriortocommencingamodificationatpowerplants.[COMAR20.79.0l.06A-D].07NewWaiversandModifications3Table4-COMAR20.79.02:AdministrativeProvisionsThefollowingisabriefsummaryoftheadditions.Chapter02waseffectiveonFebruary10,1997.Regulation.02wasamended,and.03Cwasadopted,effectiveNovember8,2004.Section-StatusDescription-.01NewFormofapplication.02NewDistributionofApplication.03NewProceedingsontheapplication.Table5-COMAR20.79.03:DetailsofFilingReiuirements—GeneratingStationsThefollowingisabriefsummaryoftheadditions.Chapter03waseffectiveonFebruary10,1997.Regulations.01and.02Bwereamended,and.03wasadopted,effectiveNovember8,2004.SectionStatusDescription.01NewDescriptionofGeneratingStation[COMAR20.79.03.OIA-HJ.02NewEnvironmentalInformation.Approving.02A,and.02B(l),(2)onlyPSCStatutoryRevisionsIncludetheFollowing:TheMay13,2001SIPrevisionincludesSections7-205,7-207,7.207.1,and7-208ofthePublicUtilityCompaniesArticleoftheAnnotatedCodeofMaryland.TheauthorityandproceduresforregulatingtheconstructionandmodificationofelectricgeneratingstationsbythePSCresidesinboththeirregulationsandtheirstatute.Therefore,therelevantportionsofthestatutemustbeincludedintheSIPtoconstituteawholepreconstructionpermittingprogram.TheseadditionsarebeingmadetoensureconformancetoCAArequirements.Table6-PublicUtilityCompaniesArticleoftheAnnotatedCodeofMarylandSectionStatusDescription§7-205NewElectriccompanies—Modificationofpowerplant.Allsections.§7-207NewGeneratingstationsortransmissionlines—Generalcertificationprocedure,SIPsubmittalincludessections(a),(b)(1),(c),(d),(e).Excludessections(b)(2)and(3),(f),(g),(h).§7-207.1NewGeneratingstationsortransmissionlines—On-sitegeneratedelectricity;approvalprocess,SIPsubmittalincludessections(a)and(e).Excludessections(b),(c),(d).§7-208NewGeneratingstationsortransmissionlines—Jointconstructionofstationandassociatedlines,SIPsubmittalincludessections(a)(1),(b),(c),(d),(e),(f),(h)(2).Excludessections(a)(2),(g),(h)(l).4ProvisionsoftheMay13,2011SIPSubmittaluponWhichEPAisTakingNoAction:Asdiscussedearlier,Maryland’sMay13,2011submittalincludedcertainprovisionsthatarespecifictotheCPCNprocess,butareunnecessaryfortheimplementationofCAArequirements.BecausetheprovisionsbelowarenotrelevanttoCAArequirements,wearetakingnoactionwithregardtothem.Table7-ProvisionsuponWhichEPAisTakingNoAction:SectionRegulationDescription20.79.01.O1BScope:applicabilitytooverheadtransmissionlines20.79.01.02B(14)(b)Definitions:“modification”ofoverheadtransmissionlines20.79.01.02B(14)(c)Definitions:“modification”under§7-206ofthePublicUtilityCompanyArticle(7-206isnotpartoftheSIPrevision)20.79.01.02B(17)Definitions:“Plan”20.79.01.02B(21)Definitions:“TransmissionLine”20.79.03.02B(3)Waterqualityissues20.79.03.02B(4)Wetlandissues20.79.03.02B(5)Wastemanagementissues20.79.03.03“Condemnation”III.PURPOSEOFTHEJULY15,2011LETTERFROMMDETOEPAAsindicatedintheTables3and4,theMay13,2011SIPrevisionrequestincludesTitle20,Subtitle79,Chapter01,paragraph.07WaiversandModificationsandTitle20,Subtitle79,Chapter02paragraph.03ProceedingsontheApplication,specificallysubparagraphC.PhasedProceedingsRequests.TheJuly15,2011letterfromSecretaryRobertM.SummersofMDEtoShawnM.Garvin,RegionalAdministratorofEPARegionIIIprovidesMDE’sassurancesthatwhenthePSCimplementstheseregulatoryprovisions,theMarylandDepartmentoftheEnvironment,pursuanttoitsauthorityunderthePublicUtilitiesCompanyArticle,Subsection7-208,paragraph(f);willensurethatnowaivers,modificationsorphasedapplicationsareissuedoracceptedbythePSCthatdonotcomplywiththeallapplicablerequirementsofthefederalCleanAirActandfederalregulations.IV.CONCLUSIONTheMay13,2011SIPrevisionrequestamendsMDE’sregulationsandaddstheappropriateregulationsandstatutesthatgovernthePSC.TheserevisionsclarifytherolesandresponsibilitiesbothofMDEandthePSCwithregardtopermittingelectricgeneratingstationsinMaryland.TheyalsoclarifythepermittingrequirementsapplicabletoelectricgeneratingstationsinMaryland.ApprovalofthisSIPrevisionwillremovedeficienciesandinconsistencies5inthecurrentMarylandSIPandwillensurethatelectricgeneratingstationscomplywiththeCAAandtheregulationsat40CFRParts51.160,51.165and51.166.V.RECOMMENDEDAGENCYACTIONI,therefore,recommendthattheamendedMDEregulationsatCOMAR26.11.02(.09and.10),theadditionofthePSCregulationsatCOMAR20.79.01(.01,.02,.06and.07),COMAR20.79.02(.01,.02,and.03)andCOMAR20.79.03(.01and.02),andthePublicUtilityCompaniesstatutoryprovisionsofArticle7-205,7-207,7-207.1and7-208assubmittedtoEPAonMay13,2011beapprovedintotheMarylandSIPexceptasnotedinTable7ofthisTSD.6