TECHNICAL SUPPORT DOCUMENT

Department of the Environment 

Adoption of EPA's 

Prevention of Significant Deterioration & Title V 

Greenhouse Gas Tailoring Rule 

Amendments to COMAR 26.11.01.01, 

COMAR 26.11.02.01 &.12 and COMAR 26.11.06.14

Statement of Purpose 

The purpose of this action is to implement the requirements of the U. S. Environmental 

Protection Agency’s (“EPA”) final Prevention of Significant Deterioration and Title V 

Greenhouse Gas Tailoring Rule ("Tailoring Rule"), which was published in the Federal Register 

on June 3, 2010 (75 FR 31514). 

The Tailoring Rule limits the applicability of the existing Prevention of Significant Deterioration 

(“PSD”) and Title V operating permit requirements of the federal Clean Air Act (“CAA”) 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 (“GHGs”) at the 100 or 250 tons per year (“tpy”) levels provided under 

the CAA. (January 2, 2011 is the date when EPA’s recently promulgated Light-Duty Vehicle 

Rule takes effect, imposing control requirements for the first time on GHGs.) 

Excluding 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. 

Requirements of EPA’s Tailoring Rule 

EPA will phase in the CAA permitting requirements for GHGs in two initial steps. 

Step 1. January 2, 2011 — June 30, 2011 (first 6 months)

• Only those sources cu

emissions of non-GHG pollutants (i.e., those that are newly-constructed or modified in a w

that significantly increases emissions of a pollutant other than GHGs) would be subject to 

permitting requirements for their GHG emissions under PSD. 

• 

would need to determine the Best Available Control Technology (BACT) for their GHG 

emissions. 

rrently subject to the PSD permitting program anyway due to their 

ay 

For these projects, only GHG increases of 75,000 tpy or more of total GHG, on a CO2e basis, 

1 
• Si

program anyway due to their emissions of non-GHG pollutants (i.e., newly constructed or 

existing major sources for a pollutant other than GHGs) would be subject to Title V operati

permit requirements for GHG. 

• During Step 1, no sour

solely to GHG emissions. 

milarly for the Title V operating permit program, only those sources currently subject to the 

ng 

ces would be subject to Clean Air Act permitting requirements due 

Step 2 July 1, 2011 — June 30, 2013 ( 2-year period)

over new construction projects that emit 

HG emissions of at least 100,000 tpy even if they do not exceed the permitting thresholds for 

ng permit requirements will apply to sources based on their 

HG emissions even if they would not apply based on emissions of any other pollutant. 

. 

me due to their GHG emissions. The majority of these newly permitted sources will likely be 

• For the first time, PSD permitting requirements will c

G

any other pollutant. Modifications at existing facilities that increase GHG emissions by at least 

75,000 tpy will be subject to permitting requirements, even if they do not significantly increase 

emissions of any other pollutant. 

• For the first time, Title V operati

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Facilities that emit at least 100,000 tpy CO2e will be subject to Title V permitting requirements

EPA estimates that about 550 sources nationwide will need to obtain Title V permits for the first 

ti

solid waste landfills and industrial manufacturers. It is expected that nationally, there will be 

approximately 900 additional PSD permitting actions each year triggered by increases in GHG 

emissions from new and modified emission sources. 

Future Steps

The Tailoring

a

• In 2011, EPA will propo

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more sources, beginning by July 1, 2013, and may propose or solicit comment on wheth

smaller sources should be permanently excluded from permitting. 

• EPA also will explore viable streamlining options for future GHG

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• By April 30, 2015, EPA wi

p

may decide that: (1) successful streamlining will allow EPA to phase in more sources, or (

certain smaller sources need to be permanently excluded from permitting. EPA will complete 

further rulemaking based on that study by April 30, 2016, to address the permitting of smaller

sources. 

• No sourc

 Rule also commits EPA to certain follow-up actions regarding future steps to 

ddress smaller sources: 

se or solicit comment on a Supplemental Notice of Proposed 

ulemaking (SNPR) in which EPA will propose a third step for phasing in GHG permitting for 

er certain 

 permitting to significantly 

duce permitting burdens. 

ll complete a study to evaluate the status of PSD and Title V 

ermitting for GHG sources, including progress in developing streamlining techniques. EPA 

2) 

es with greenhouse gas emissions below 50,000 tpy, and no modification of a source 

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re

permitting before at least April 30, 2016. 

Regulated Pollutants 

EPA's Tailoring Rule ad

1

2. Methane (CH4) 

3. Nitrous oxide (N2O) 

4. Hydrofluorocarb

5. Perfluorocarbons (PFC

6. Sulfur hexafluoride (SF6) 

Some of these GHGs have a h

d

(“CO2e”). CO2e is calculated by multiplying the mass emissions for each of the six GHGs t

source emits by that GHG’s global warming potential (published in Table A-1 to Subpart A of 40

CFR Part 98, “Global Warming Potentials,” 74 FR 56395), and then summing the results of 

those calculations. Under the Tailoring Rule, EPA is using CO2e as the metric for determining 

whether a source triggers PSD and Title V permitting applicability for GHGs. 

Explanation of Specific Amendments 

The following regulations under COMA

R

1. COMAR 26.11.01

• CO2 equivalent em

• Greenhouse gases (GHG), meaning the aggregate grou

2. COMAR 26.11.01.01B (37) and COMAR 26.11.06.14 - The PSD program requ

b

3. COMAR 26.11.02.01B(44) - expanded the definition of "R

g

EPA's final PSD and Title V Tailoring Rule. 

4. COMAR 26.11.02.01C(1) - the definition o

so

5. COMAR 26.11.02.12 - provides that the procedures for obtaining a permit to construct appl

to

B

sulting in net GHG increases of less than 50,000 tpy will be subject to PSD or Title V 

dresses the emissions of a group of six GHGs: 

. Carbon dioxide (CO2) 

ons (HFCs) 

s) 

igher global warming potential than others. To address these 

ifferences, the international standard practice is to express GHGs in carbon dioxide equivalents 

hat a 

R 26.11 have been amended to implement the Tailoring 

ule requirements: 

.01B - definitions were added for: 

issions (CO2e) which includes the calculation procedure 

p of 6 greenhouse gases. 

irements have 

een updated to include EPA's Tailoring Rule requirements. 

egulated air pollutant" by adding 

reenhouse gas as defined under COMAR 26.11.01.01B(18-1) and subject to regulation under 

f "Major source" has been amended to include 

urces of GHG subject to regulation under 40 CFR 70.2, as amended by the Tailoring Rule. 

y 

 GHG sources to which 40 CFR 52.21(b)(49(iv) or (v) apply. 

ackground 

 3 12/20/2010 2:56 PM 
On April 2, 20

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The Supreme Court found that EPA was required to determine whether or not 

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anticipated to endanger public health or welfare, or whether the science was too uncertain to

make a reasoned decision. In April 2009, EPA responded to the Court with a finding that 

greenhouse gases contribute to air pollution that may endanger public health or welfare. On 

December 15, 2009, EPA published findings under Section 202(a) of the Clean Air Act th

a prerequisite to finalizing the GHG standards for light-duty vehicles. 

On April 1, 2010, EPA finalized the light duty vehicle rule controlling 

ru

meeting these rule requirements may be sold in the U.S. This action triggered Clean Air Act 

permitting requirements under the PSD and Title V programs for GHG emissions. The 

Rule represents the first time GHGs will be subject to either of these Clean Air Act permitting

programs. 

Sources Aff

Facilities responsib

so

nation’s largest GHG emitters — power plants, refineries, and cement production facilities.

The sources that are not covered by this rule at this time include: small farms, restaurants, and

b

Emissions Reductions Expected from th

The purpose of this action is to implement the require

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gas emissions will be reduced through implementation of the PSD program and through othe

State and federal regulatory actions. 

Submission to EPA for Approval

07, the Supreme Court found that GHGs, including carbon dioxide, are air 

ollutants covered by the CAA. Massachusetts v. EPA, 549 U.S. 497 (2007). 

emissions of 

HGs from new motor vehicles cause or contribute to air pollution which may reasonably be 

at were 

GHG emissions. This 

le confirmed that January 2, 2011 is the earliest date that a 2012 model year vehicle 

Tailoring 

ected 

le for nearly 70 percent of the national GHG emissions from stationary 

urces will be subject to permitting requirements under the Tailoring Rule. This includes the 

 

 all 

ut the very largest commercial facilities. 

is Action 

ments of EPA's final PSD and Title V 

ailoring Rule which establish a phased in approach to reducing GHG emissions. Greenhouse 

r 

ill be submitted to EPA for approval as part of Maryland's 

tate Implementation Plan and Title V Program. The Department will request approval of the 

omparison to Federal Standards 

The appropriate parts of this action w

S

regulations in their entirety. 

C

 4 12/20/2010 2:56 PM 
There is a corresponding federal standard to this proposed action, but the proposed action is not 

more restrictive or stringent. 

ant Deterioration and Title V Greenhouse Gas Tailoring Rule" 

ublished in the Federal Register on June 3, 2010 (75: FR 31514) affecting 40 CFR Parts 51, 52, 

se of this action is to implement the requirements of the U. S. Environmental 

rotection Agency’s (“EPA”) final Prevention of Significant Deterioration and Title V 

egister 

e Tailoring Rule will have a limited economic impact on 

ffected sources. If an existing source is currently addressing another pollutant for PSD or in a 

begins on July 1, 2011, imposes Title V 

nd PSD permitting requirements on larger sources of GHG emissions even if they would not 

 existing staff. Staff requirements will be 

evaluated for Step 2 and future steps as they are finalized by EPA. 

g. landfills) that would be 

ewly subject to permitting requirements due to GHG emissions. Many local governments are 

EPA's "Prevention of Signific

p

70, et al. 

The purpo

P

Greenhouse Gas Tailoring Rule ("Tailoring Rule"), which was published in the Federal R

on June 3, 2010 (75 FR 31514). 

Estimate of Economic Impact 

Step 1 (1/2/2011 - 6/30/11) of th

a

Title V permit, then GHG requirements will also apply. 

Step 2 (7/1/11 - 6/30/2013) of the Tailoring Rule, which 

a

apply based on emissions of any other pollutants. 

The Department will handle Step 1 of the rule with

re

Local governments may be impacted if they have facilities (example e

n

already subject to permitting requirements as a result of non-GHG emissions. 

Economic Impact on Small Businesses

The EPA considered the impact of the GHG Tailoring Rule on small businesses as required by 

e Regulatory Flexibility Act (RFA) and the Small Business Regulatory Enforcement Fairness 

verview of PSD Program 

th

Act (SBREFA). Since this rule does not impose regulatory requirements but rather lessens the 

regulatory burden of the CAA requirements on smaller sources of GHG, no economic costs are 

imposed upon small sources of GHG as a result of the rule. The rule provides regulatory relief 

for small sources. These avoided costs or benefits accrue because small sources of GHG are not 

required to obtain a title V permit and new or modifying small sources of GHG are not required

to meet PSD requirements. Some of the small sources benefiting from this action are small 

entities, and these entities will benefit from the regulatory relief of the rule (75 FR 31599). 

O

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The PSD program is a preconstruction review and permitting program applicable to new major 

ationary sources and major modifications at existing major stationary sources. The PSD 

I of 

1.165, 

y of 

ability of PSD to a particular source must be determined in advance of construction or 

odification and is pollutant-specific. The primary criterion in determining PSD applicability for 

`major 

y Source

st

program applies in areas that are designated ``attainment'' or ``unclassifiable'' for a National 

Ambient Air Quality Standard (NAAQS). The PSD program is contained in part C of title 

the CAA. The ``nonattainment new source review (NSR)'' program applies in areas not in 

attainment of a NAAQS or in the Ozone Transport Region and is implemented under the 

requirements of part D of title I of the CAA. Collectively, we commonly refer to these two

programs as the major NSR program. The governing EPA rules are contained in 40 CFR 5

51.166, 52.21, 52.24, and part 51, Appendices S and W. There is no NAAQS for CO2 or an

the other well-mixed GHGs, nor has EPA proposed any such NAAQS; therefore, unless and until 

we take further such action, we do not anticipate that the nonattainment NSR program will apply

to GHGs. 

The applic

m

a proposed source is whether the source is a ``major emitting facility,'' based on its predicted 

potential emissions of regulated pollutants, within the meaning of CAA section 169(1) and either 

constructs or undertakes a modification. EPA has implemented these requirements in its 

regulations, which use somewhat different terminology for determining PSD applicability, which 

is whether the source is a ``major stationary source'' or whether the proposed project is a `

modification.'' 

Major Stationar

ionary source'' is any source belonging to a specified list of 28 source 

ategories which emits or has the potential to emit 100 tpy or more of any pollutant subject to 

s 

tions

Under PSD, a ``major stat

c

regulation under the CAA, or any other source type which emits or has the potential to emit such

pollutants in amounts equal to or greater than 250 tpy. We refer to these levels as the 100/250-

tpy thresholds. A new source with a potential to emit (PTE) at or above the applicable ``major 

stationary source threshold'' is subject to major source NSR. These limits originate from section

169 of the CAA, which applies PSD to any ``major emitting facility'' and defines the term to 

include any source that emits or has a PTE of 100 or 250 tpy, depending on the source category. 

Note that the major source definition incorporates the phrase ``subject to regulation,'' which, a

described later, will begin to include GHGs on January 2, 2011, under our interpretation of that 

phrase discussed in the recent Interpretive Memo notice. 75 FR 17004, 

April 2, 2010. 

Major Modifica

isting sources that undertake a ``major modification,'' which occurs: (1) 

hen there is a physical change in, or change in the method of operation of, a ``major stationary 

PSD also applies to ex

W

source;'' (2) the change results in a ``significant'' emission increase of a pollutant subject to 

regulation (equal to or above the significance level that EPA has set for the pollutant in 40 CFR 

52.21(b)(23)); and (3) there is a ``significant net emissions increase'' of a pollutant 

 6 12/20/2010 2:56 PM 
subject to regulation that is equal to or above the significance level (defined in 40 CFR 

52.21(b)(23)). Significance levels, which EPA has promulgated for criteria pollutants and certain 

other pollutants, represent a de minimis contribution to air quality problems. When EPA 

has not set a significance level for a regulated NSR pollutant, PSD applies to an increase of the 

pollutant in any amount (that is, in effect, the significance level is treated as zero). 

General Requirements for PSD

This section provides a very brief summary of the main requirements of the PSD program. One 

principal requirement is that a new major source or major modification must apply BACT, which 

is determined on a case-by-case basis taking into account, among other factors, the cost 

effectiveness of the control and energy and environmental impacts. EPA has developed a ``topdown'' approach for BACT review, which involves a decision process that includes identification 

of all available control technologies, elimination of technically infeasible options, ranking of 

remaining options by control and cost effectiveness, and then selection of BACT. Under PSD, 

once a source is determined to be major for any regulated NSR pollutant, a BACT review is 

performed for each attainment pollutant that exceeds its PSD significance level as part of new 

construction or for modification projects at the source, where there is a significant increase and a 

significant net emissions increase of such pollutant. (EPA noted that the PSD program has 

historically operated in this fashion for all pollutants--when new sources or modifications 

are ``major,'' PSD applies to all pollutants that are emitted in significant quantities from the 

source or project. This rule does not alter that for sources or modifications that are major due to 

their GHG emissions.) 

In addition to performing BACT, the source must analyze impacts on ambient air quality to 

assure that no violation of any NAAQS or PSD increments will result, and must analyze impacts 

on soil, vegetation, and visibility. In addition, sources or modifications that would impact Class I 

areas (e.g., national parks) may be subject to additional requirements to protect air quality related 

values (AQRVs) that have been identified for such areas. Under PSD, if a source's proposed 

project may impact a Class I area, the Federal Land Manager is notified and is responsible for 

evaluating a source's projected impact on the AQRVs and recommending either approval or 

disapproval of the source's permit application based on anticipated impacts. There are currently 

no NAAQS or PSD increments established for GHGs, and therefore these PSD requirements 

would not apply for GHGs, even when PSD is triggered for GHGs. However, if PSD is triggered 

for a GHG emissions source, all regulated NSR pollutants which the new source emits in 

significant amounts would be subject to PSD requirements. Therefore, if a facility triggers 

review for regulated NSR pollutants that are non-GHG pollutants for which there are established 

NAAQS or increments, the air quality, additional impacts, and Class I requirements would apply 

to those pollutants. 

Overview of Title V Operating Permits Program 

The operating permit requirements under title V are intended to improve sources' compliance 

with other CAA requirements. The title V program is implemented through regulations 

promulgated by EPA, 40 CFR part 70, for programs implemented by state and local agencies and 

tribes, and 40 CFR part 71, for programs generally implemented by EPA. 

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 8 12/20/2010 2:56 PM 

In summary, the title V program requires major sources (defined and interpreted by EPA to 

include sources that emit or have a PTE of 100 tpy of any pollutant subject to regulation) and 

certain other sources to apply for operating permits. Under EPA's long-standing interpretation, a 

pollutant, such as a GHG, is ``subject to regulation'' when it is subject to a CAA requirement 

establishing actual control of emissions. Title V generally does not add new pollution control 

requirements, but it does require that each permit contain all pollution control requirements or 

``applicable requirements'' required by the CAA (e.g., New Source Performance Standard 

(NSPS), and SIP requirements, including PSD), and it requires that certain procedural 

requirements be followed, especially with respect to compliance with these requirements. 

``Applicable requirements'' for title V purposes include stationary source requirements, but do 

not include mobile source requirements. Other procedural requirements include providing review 

of permits by EPA, states, and the public, and requiring permit holders to track, report, and 

annually certify their compliance status with respect to their permit requirements. 

Title V Permit Requirements

This section provides a brief summary of the requirements of the title V program that are most 

relevant to this action. A source generally must apply for a title V permit within 1 year of first 

becoming subject to permitting--for new sources, this is usually within 1 year of commencing 

operation. The application must include, among other things, identifying information, a 

description of emissions and other information necessary to determine applicability of 

requirements and information concerning compliance with those requirements. The permitting 

authority uses this information to develop the source's operating permit. 

Sources: 

EPA Fact Sheet http://www.epa.gov/NSR/actions.html 

U. S. Environmental Protection Agency’s (“EPA”) final Prevention of Significant Deterioration 

and Title V Greenhouse Gas Tailoring Rule ("Tailoring Rule"), Federal Register Notice: 

 June 3, 2010 (75 FR 31514). 

Federal Register Notice: http://edocket.access.gpo.gov/2010/pdf/2010-11974.pdf