# Appendix B Board Public Hearing Transcript, and Notice of Final Regulation

### Board Public Hearing Tran script: February 10, 2011..........................................................3 Notice of Final Regulation: February 25, 2011 .................................................................15

## Board Public Hearing Transcript: February 10, 2011

# COPY

Proposed Amendments to Regulation 61-62, Air Pollution Control Regulations and Standards



### SOUTH CAROLINA BOARD OF HEALTH AND

ENVIRONMENTAL CONTROL

BOARD MEETING, FEBRUARY 10, 2011

This meeting, held on February 10, 2011, a portion
of which was reported by Lisa F. Huffman, Verbatim Court Reporter and Notary Public in and for the State of South Carolina; said meeting being held at the Boardroom of
S.C. Department of Health and Environmental Control,
2600 Bull Street, Columbia, South Carolina, is being held pursuant to notice and in accordance with the South Carolina Rules, at the Offices of DHEC, on Thursday, the
10th day of November, 2011, scheduled for 10:OO a.m., and commencing at the hour of 10:OO a.m., the reported portion of which began at 10:12 a.m.

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### APPEARANCES

BOARD MEMBERS: Chairman: Paul C. Aughtry, I11 Secretary: Steven G. Kisner
C. Earl Hunter, Commissioner Coleman Buckhouse, M.D. Henry C. Scott
M. David Mitchell, M.D.

OFFICE OF GENERAL
COUNSEL: Carl Roberts, Esquire

CLERK: Lisa Lucas Longshore

ALSO PRESENT: Staff member: Robbie Brown



## ***** Interested members of the public.

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- 

### CONTENTS

Proceedings

Certificate of Reporter

Word Index

Sign-in Sheet for Public Hearing on Proposed Amendments
To Regulation 61-62, Air Pollution Control Regulations and Standards, And the Air Quality State Implementation Plan, State Register Document No. 4160



## ***** ATTACHMENTS: Page

4

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### PROCEEDINGS MR. CHAIRMAN: We will now have public hearings pursuant to Code Section 1-23-111. Notice
of these hearings was published in The State Register. The following procedures will be used for the hearings. A member of the DHEC staff will describe the proposal. At the conclusion of that presentation, any member of the public may comment.
I will first call on those who have signed up to speak.
At the conclusion of their comments, there will be an opportunity for any other member of the public to speak. Please limit your comments to five minutes. And if several members of a group

are present, please appoint a spokesperson for that

group. Please limit your comments to material which is relevant and is not repetitive of
statements already made. Please state your name and organization for the court reporter. If you have a written statement, please provide a copy to the reporter.
Item No. 

### 8 is Proposed Amendments of Regulation 61-62, Air Pollution Control Regulations and Standards. Staff presentation will be by Robbie Brown.

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### MR. BROWN: Good morning, Mr. Chairman,
members of the board, Commissioner Hunter. This is

a request for a public hearing and a finding of 

### need and reasonableness to amend Regulation 61-62, Standards No. 7 and 7.1 and the South Carolina
State Implementation Plan. These revisions are being promulgated to update our regulations for consistency with federal requirements. And as such, these revisions do not require legislative review. Specifically, the department is proposing to
amend Regulation 61-62.5, Standard No. 7, which is
the "Prevention of Significant Deterioration," and
Standard No. 7.1, "Nonattainment New Source Review," and also the SIP, to incorporate provision
of federal new source review PM 

### 2.5, with implementation rules. These rules define how to
address PM 2.5 in a major construction permit application review. The department also proposes to adopt federal language for a footnote in Standard No. 7 regarding ozone precursors in order to maintain full approval of the PSD program. And lastly, to add a non-substantive clarification to
correct a scrivener's error. The EPA has proposed ending the use of Pm 10



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### Surrogacy Policy. And this policy has allowed the

use of PM 10 review to serve as the PM 2.5 review until the EPA issued all their implementation
rules. To expedite the EPA's rules of these changes, we requested parallel processing of our regulation proposal. And the EPA's comments have been incorporated into the proposed regulations you
have been provided.


### A notice of drafting was published in The
State Register on July the 23rd, 2010. No comments were received during the comment period. On November loth, 2010, the board granted staff initial approval to public notice of proposed
amendments and to conduct a staff informational
forum. On December 29th, 2010, a staff informational forum was held. And no comments were received during the public notice period or at the
forum. The department staff recommends that after public hearing and consideration of the attached information, the board finds for the need and reasonableness of the proposed revisions.
Thank you. And I'll be glad to answer any questions.
MR. CHAIRMAN: Thank you, Robbie. Lisa, has anybody signed up to speak?

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### MR. ROBERTS: Mr. Chairman, no one has signed to speak on this one.
MR. CHAIRMAN: Okay. Thank you. Is there anybody present who would like to speak? Are there any questions? Excuse me?
MR. HUNTER: I was just saying, no one's stepping forward.
MR. CHAIRMAN: Good. That's a good number. Are there any questions from the board of Mr.
Brown? Any comments? Hearing none, is there a motion to accept the recommendation?
MS. BUCKHOUSE: I so move. MR. CHAIRMAN: Is there a second?
MR. SCOTT: Second. MR. CHAIRMAN: Further discussion? All in
favor? BOARD MEMBERS: Aye. MR. CHAIRMAN: Motion carries. Thank you very much, Mr. Brown. (The reported portion of the hearing was concluded at 10:16 

### a.m.)

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### CERTIFICATE OF REPORTER I, 

### Lisa F. Huffman, Verbatim Court Reporter and Notary Public in and for the State of South Carolina at Large, hereby certify that I 

### reported the Hearing of the Board for the Department of Health and Environmental Control, held on the 10th day of February, 2011; and that the foregoing pages constitute a true and correct transcription of my report of said proceedings.
I 

### further certify that I 

### am neither attorney nor counsel for, nor related to or employed by any of the parties connected with this action, nor am I 

### financially
interested in said cause. I 

### further certify that the original of said transcript was thereafter sealed and delivered to LISA LONGSHORE, Clerk for the Board, Department of 

### Health and Environmental Control, 2600 Bull Street, Columbia, South Carolina 29201, who will retain this sealed original transcript and shall be responsible for filing same with the court prior to trial or any hearing which might result.
In witness whereof, I 

### have set my hand and seal
this 25th day of February,

Lisa F. 

### Huffman My Commission expires 7/11/15

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### Proposed Amendments to Regulation 61-62, 

### Air Pollution Control Regulations and Standards

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### Garber Reporting Service 803-256-4500Proposed Amendments to Regulation 61-62, Air Pollution Control Regulations and Standards

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### Sign-In Sheet for Public Hearing



# a PROPOSED AMENDMENTS To REGULATION 61-62, 

### AIR POLLUTION CONTROL REGULATIONS AND STANDARDS, AND THE AIR QUALITY STATE IMPLEMENTATIOIV PLAN 

### Doc. No 

### 4160 February 10, 201 1 Synopsis: The Department proposes to amend R. 61-62.5, Standard No. 7, Prevention of Significant Deterioration; 

### R. 6 1-62.5, Standard No. 7.1, Nonattainment New Source Review (NSR); and the SIP to incorporate the provisions of the federal rule entitled "Final Rule To Implement the 8-Hour Ozone National Ambient Air Quality Standard" (70 FR 71612) also known as the "Phase 2 Ozone Rule," and the federal rule entitled "Implementation of the New Source Review (NSR) Program for Particulate Matter Less Than 2.5 Micrometers (PM2,5)" (73 FR 28321), also known as the "NSR PM2.5 Implementation Rule NSR PM2.5 Implementation Rule." The Department also proposes to add a nonsubstantive clarification to correct a scrivener's error. 

### These amendments will not require Legislative review.

## Notice of Final Regulation: February 25, 201126 FINAL REGULATIONS

South Carolina State Register Vol. 35, Issue 2 February 25, 2011 Document No. 4160 DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL CHAPTER 61 Statutory Authority: 1976 Code Sections 48-1-10 et seq. 61-62. Air Pollution Control Regulations and Standards 61-62.5. Standard No. 7, Prevention of Significant Deterioration 61-62.5. Standard No. 7.1, Nonattainment New Source Review (NSR) Synopsis: The Department has amended R. 61-62.5, Standard No. 7, Prevention of Signi ficant Deterioration; R. 61-62.5, Standard No. 7.1, Nonattainment New Source Review (NSR ); and the SIP to incorporate the provisions of the federal rule entitled “Final Rule To Implement the 8- Hour Ozone National Ambient Air Quality Standard” (70 FR 71612) also known as the “Phase 2 Ozone Rule,” and the federal rule entitled “Implementation of the New Source Review (NSR) Program for Particulate Matter Less Than 2.5 Micrometers (PM 2.5 )” (73 FR 28321), also known as the “NSR PM 2.5 Implementation Rule NSR PM 2.5 Implementation Rule.” The Department also added a nonsubstantive clarification to correct a scrivener’s error. These regulations were promulgated to comply with fede ral law. A fiscal impact statement, assessment report, or legislative review are not required. A Notice of Drafting for these proposed regulations was published in the State Register on July 23, 2010.
Discussion of Revisions:
SECTION CITATION/EXPLANATION OF CHANGE: Regulation, 61-62.5, Standard No. 7, Prevention of Significant Deterioration Regulation, 61-62.5, Standard No. 7, Prevention of Signi ficant Deterioration, (b) Definitions, (44) “Regulated NSR Pollutant”: The definition of “Regulated NSR Pollutant” was revi sed to include elaboration on which pollutants are precursors for criteria pollutants under the National Ambient Air Quality Standards, and specific instructions on how to calculate PM emissions when dete rmining if emissions fall within the scope of this definition. Regulation, 61-62.5, Standard No. 7, Prevention of Significant Deterioration, (b) Definitions, (49)(i) “Significant”: The definition of “Significant” was revised to include new thresholds for PM 2.5 . Regulation, 61-62.5, Standard No. 7, Prevention of Significant Deterioration, (i) Exemptions, (1)(xi): This item was added to clarify what provisions apply to PSD applications received before July 15, 2008. Regulation, 61-62.5, Standard No. 7, Prevention of Significant Deterioration, (i) Exemptions, (5)(i): This item was modified by adding “or nitrogen oxides” to the footnote for Ozone in the list of de minimis air quality levels, so that a facility with a net increase of 100 tons per year or more of nitrogen oxides subject to PSD would be required to perform an ambient impact analysis including the gathering of ambient air quality data.FINAL REGULATIONS 27

South Carolina State Register Vol. 35, Issue 2 February 25, 2011 Regulation, 61-62.5, Standard No. 7.1, Nonattainment New Source Review (NSR) Regulation, 61-62.5, Standard No. 7.1, Nonattainment New Source Review (NSR), (c) Definitions, (13) “Regulated NSR pollutant”: The definition of “Regulated NSR pollutant” was modifi ed in the introductory sentence by adding the words “of this regulation” for clarification to correct a nons ubstantive scrivener’s error. The definition is also modified by adding a list of precursors and the requirements for considering PM, including timing requirements for considering condensable emissions. Regulation, 61-62.5, Standard No. 7.1, Nonattainment New Source Review (NSR), (c) Definitions, (14) “Significant”: The definition of “Significant” was revised to include new thresholds for PM 2.5 . Instructions: Amend Regulation 61-62, Air Pollution Control Regulations and Standards, pursuant to each instruction provided below with the text of the amendments.
Text: Regulation, 61-62.5, Standard No. 7, Prevention of Significant Deterioration (b) Definitions, (44) “Regulated NSR Pollutant” shall be revised as follows: (44) “Regulated NSR pollutant,” for purposes of this regulation, means the following: (i) Any pollutant for which a national ambient air quality standard has been promulgated and any constituents or precursors for such pollutants identified by the Administrator. Precursors identified by the Administrator for purposes of NSR are the following: (a) Volatile organic compounds and nitrogen oxides are precursors to ozone in all attainment and unclassifiable areas. (b) Sulfur dioxide is a precursor to PM 2.5 in all attainment and unclassifiable areas. (c) Nitrogen oxides are presumed to be precursors to PM 2.5 in all attainment and unclassifiable areas, unless the State demonstrates to the Administrator’s satisfaction or the EPA demonstrates that emissions of nitrogen oxides from sources in a specific area are not a significant contributor to that area’s ambient PM 2.5 concentrations. (d) Volatile organic compounds are presumed not to be precursors to PM 2.5 in any attainment or unclassifiable area, unless the State demonstrates to the Administrator’s satisfaction or the EPA demonstrates that emissions of volatile organic compounds from sources in a specific area are a significant contributor to that area’s ambient PM 2.5 concentrations. (ii) Any pollutant that is subject to any sta ndard promulgated under section 111 of the Clean Air Act; (iii) Any Class I or II substance subject to a standa rd promulgated under or established by title VI of the Clean Air Act;28 FINAL REGULATIONS

South Carolina State Register Vol. 35, Issue 2 February 25, 2011 (iv) Any pollutant that otherwise is subject to re gulation under the Clean Air Act; except that any or all hazardous air pollutants either listed in section 112 of the Clean Air Act or added to the list pursuant to section 112(b)(2) of the Clean Air Act, which have not been delisted pursuant to section 112(b)(3) of the Clean Air Act, are not regulated NSR pollutants unless the listed hazar dous air pollutant is also regulated as a constituent or precursor of a general pollutant lis ted under section 108 of the Clean Air Act; (v) Reserved; (vi) Particulate matter (PM) emissions, PM 2.5 emissions and PM 10 emissions shall include gaseous emissions from a source or activity which condense to fo rm particulate matter at ambient temperatures. On or after January 1, 2011 (or any earlier date established in the upcoming rulemaking codifying test methods), such condensable particulate matter shall be accounted for in applicability determinations and in establishing emissions limitations for PM, PM 2.5 and PM 10 in PSD permits. Compliance with emissions limitations for PM, PM 2.5 and PM 10 issued prior to this date shall not be based on condensable particular matter unless required by the terms and conditions of the permit or the applicable implementation plan. Applicability determinations made prior to this date without accounting for conden sable particular matter shall not be considered in violation of this section unless the applicable implementa tion plan required condensable particular matter to be included. (b) Definitions, (49)(i) “Significant” shall be revised as follows: (49)(i) “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 of the following rates:
Pollutant and Emissions Rate Carbon monoxide: 100 tons per year (tpy) Nitrogen oxides: 40 tpy Sulfur dioxide: 40 tpy
Particulate matter: 25 tpy of particulate matter emissions; 15 tpy of PM 10 emissions; 10 tpy of direct PM 2.5 ; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless demonstrated not to be a PM 2.5 precursor under (b)44 of this section Ozone: 40 tpy of volatile organic compounds or oxides of nitrogen Lead: 0.6 tpy Fluorides: 3 tpy Sulfuric acid mist: 7 tpy Hydrogen sulfide (H 2 S): 10 tpy Total reduced sulfur (including H 2 S): 10 tpy Reduced sulfur compounds (including H 2 S): 10 tpyFINAL REGULATIONS 29

South Carolina State Register Vol. 35, Issue 2 February 25, 2011 Municipal waste combustor organics (measured as tota l tetra- through octa-chlor inated dibenzo-p-dioxins and dibenzofurans): 3.2 x 10 -6 megagrams per year (3.5 x 10 -6 tons per year) Municipal waste combustor metals (measured as par ticulate matter): 14 megagrams per year (15 tons per year) Municipal waste combustor acid gases (measured as su lfur dioxide and hydrogen chloride): 36 megagrams per year (40 tons per year) Municipal solid waste landfills emissions (mea sured as nonmethane organi c compounds): 45 megagrams per year (50 tons per year) (i) Exemptions, (5)(i) shall be revised as follows: (i) The emissions increase of the 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 μg/m 3 , 8-hour average; Nitrogen dioxide--14 μg/m 3 , annual average; Particulate matter--10 μg/m 3 of PM 10 , 24-hour average; Sulfur dioxide--13 μg/m 3 , 24-hour average; Ozone; 1 Lead--0.1 μg/m 3 , 3-month average; Fluorides--0.25 μg/m 3 , 24-hour average; Total reduced sulfur--10 μg/m 3 , 1-hour average; Hydrogen sulfide--0.2 μg/m 3 , 1-hour average; Reduced sulfur compounds--10 μg/m 3 , 1-hour average; or

1 No de minimis 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 of ambient air quality data. (i) Exemptions, (5)(ii) shall be revised as follows: (ii) The concentrations of the pollutant in the ar ea that the source or modification would affect are less than the concentrations listed in paragraph (i)(5)(i), or the pollutant is not listed in paragraph (i)(5)(i). Regulation, 61-62.5, Standard No. 7.1, Nonattainment New Source Review (NSR) (c) Definitions, (13) “Regulated NSR pollutant” shall be revised as follows: (13) “Regulated NSR pollutant,” for purposes of this regulation, means the following: (A) Oxides of nitrogen or any volatile organic compounds; (B) Any pollutant for which a national ambient air quality standard has been promulgated; (C) Any pollutant that is a constituent or precurs or of a general pollutant listed under paragraphs (c)(13)(A) or (B), provided that a constituent or precurs or pollutant may only be regulated under NSR as part of regulation of the general pollutant. Precursors iden tified by the Administrator for purposes of NSR are the following:30 FINAL REGULATIONS

South Carolina State Register Vol. 35, Issue 2 February 25, 2011 (a) Volatile organic compounds and nitrogen oxides are precursors to ozone in all ozone nonattainment areas; (b) Sulfur dioxide is a precursor to PM 2.5 in all PM 2.5 nonattainment areas; (c) Nitrogen oxides are presumed to be precursors to PM 2.5 in all PM 2.5 nonattainment areas, unless the State demonstrates to the Administrator’s satisfaction or EPA demonstrates that emissions of nitrogen oxides from sources in a specific area are not a signifi cant contributor to that area’s ambient PM 2.5 concentrations; (d) Volatile organic compounds and ammoni a are presumed not to be precursors to PM 2.5 in any PM 2.5 nonattainment area, unless the State demonstrates to the Ad ministrator’s satisfaction or EPA demonstrates that emissions of volatile organic compounds or ammonia from sources in a specific area are a significant contributor to that area’s ambient PM 2.5 concentrations; or (D) PM 2.5 emissions and PM 10 emissions shall include gaseous emissions from a source or activity which condense to form particulate matter at ambient temperatures. On or after January 1, 2011 (or any earlier date established in the upcoming rulemaking codifying test methods), such condensable pa rticulate matter shall be accounted for in applicability determinations a nd in establishing emissions limitations for PM 2.5 and PM 10 in permits issued under this ruling. Comp liance with emissions limitations for PM 2.5 and PM 10 issued prior to this date shall not be based on condensable particulate ma tter unless required by the terms and conditions of the permit or the applicable implementation plan. Applicability determinations made prio r to this date without accounting for condensable particulate matter shall not be considered in violation of this section unless the applicable implementation plan required condensable particul ate matter to be included. (c) Definitions, (14) “Significant” shall be revised as follows: (14) “Significant” means, in reference to a net emissions increase or the potential of a source to emit any of the following pollutants, as rate of emissions that would equal or exceed any of the following rates:
Pollutant Emission Rate Carbon monoxide: 100 tons per year (tpy) Nitrogen oxides: 40 tpy
Particulate matter: 15 tpy of PM 10 emissions; 10 tpy of direct PM 2.5 ; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless demonstrated not to be a PM 2.5 precursor under paragraph 13 of this section Sulfur dioxide: 40 tpy Ozone: 40 tpy of volatile organi c compounds or oxides of nitrogen Lead: 0.6 tpyFINAL REGULATIONS 31

South Carolina State Register Vol. 35, Issue 2 February 25, 2011 Statement of Need and Reasonableness:
This statement of need and reasonableness was determined by staff analysis pursuant to S.C. Code Section 1- 23-115(C)(1)-(3) and (9)-(11).
DESCRIPTION OF REGULATION: Amendments to R. 61-62 .5, Standard No. 7, Prevention of Significant Deterioration, R. 61-62.5, Standard No. 7. 1, Nonattainment New Source Review (NSR). Purpose: The Department has amended R. 61-62.5, Standard No. 7, Prevention of Significant Deterioration; R. 61-62.5, Standard No. 7.1, Nonattainment New Sour ce Review (NSR); and the SIP to incorporate the provisions of the Phase 2 Ozone Rule and the NSR PM 2.5 Implementation Rule, and to add a nonsubstantive clarification to correct a scrivener’s error. Legal Authority: The legal authority for R. 61-62, Air Pollution Control Regulations and Standards, is S.C. Code Sections 48-1-10, et seq. Plan for Implementation: The amendments took e ffect upon approval by the Board of Health and Environmental Control and publication in the State Register. The amendments will be implemented by providing the regulated community with copies of th e regulation, sending an email to stakeholders, and publishing the Notice of Final Regulation and upda ted regulations on the Department’s website.
DETERMINATION OF NEED AND REASONABLEN ESS OF THE REGULATION BASED ON ALL FACTORS HEREIN AND EXPECTED BENEFITS: The EPA regularly promulgates amendmen ts to federal regulations to include clarification, guidance, technical amendments, and strengthen air quality provisions. States are mandated by law to adopt these federal amendments. These amendments are reasonable as they pr omote consistency and ensure conformity of state regulations to federal requirements.
DETERMINATION OF COSTS AND BENEFITS: There will be no increased cost to the state or its po litical subdivisions resulting from this revision. The standards to be adopted are already effective and applicable to the regulated community as a matter of federal law, thus regulated community has already incurred the cost of these regulations. The amendments will benefit the regulated community by clarifying the re gulations and increasing their ease of use.
UNCERTAINTIES OF ESTIMATES:
There are no uncertainties of estimates relative to the costs to the state or its political subdivisions.
EFFECT ON ENVIRONMENT AND PUBLIC HEALTH: Adoption of the recent changes in federal regulations through the amendments to R. 61-62, Air Pollution Control Regulations and Standards, and the SIP will provide continued protection of the environment and public health.
DETRIMENTAL EFFECT ON THE ENVIRONMENT A ND PUBLIC HEALTH IF THE REGULATIONS ARE NOT IMPLEMENTED: The state’s authority to implement federal requirement s, which are beneficial to the public health and environment, would be compromised if these ame ndments were not adopted in South Carolina.