1 

## Technical Support Document **NOx RACT Source Specific SIP Revision**

**– State of New Jersey**  **for the Naval Weapons Station Earle**  **(NWSE)**

**in Colts Neck** **, New**  **Jersey**

**I. INTRODUCTION**  Title Iof the Clean Air Act Amendments of 1990 (A ct or CAA) contains many new and revised requirements for areas that have not attained the national ambient air quality standards for ozone. Section 182(f) of the Act requires States to apply the same requirements to major stationary sources of nitrogen dioxide (NO x ) as defined by § 302 and 182(c), (d), and (e) of the Act, as are applied to major stationary sources of volatile organic compounds (VOC). The new NO x requirements are reasonable available control technology

(RACT) 1 and new source review for major stationary sources in certai n ozone nonattainment areas and throughout an y ozone transport region. On November 25, 1992, the Environmental Protection Agency (EPA) published a NO x Supplement to the General Preamble (NO x Supplement) to provide guidance on implementation of new provis ions of the Act concerning emissions of NO x . 57 Federal Register ( Fed. Reg. ) 55620 (Nov. 25, 1992). The reader should refer to “The General Preamble for Implementation of Title I of the Clean Air Act Amendments,” 57 Fed. Reg. 13498 (Apr. 16, 1992), and the NO x Supplement for a more detailed discussion of the other NO x requirements. This technical support document (TSD) deals primarily with the State of New Jersey Department of Environmental Protection’s (NJDEP’s) State Implementation Plan (SIP) revision to the ozone SIP. This SIP was submitted to address the NO x RACT requirements specific to the stationary internal combustion reciprocating engines operated b y Naval Weapons Station Earle, in Colts Neck , N ew J ersey (NJ)

.
**II. CLEAN AIR ACT REQUIREMENTS FO**  **R OZONE ATTAINMENT, RACT AND NEW JERSEY’S RACT REGULATION**  A. Ozone Attainment Requirements

1 The EPA defines RACT as the low est emission limitation that a particular source is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility. 44 Fed. Reg. 53762 (Sept. 17, 1979).

2 In March 2008, EPA strengthened the Ozone NAAQS to a level of 0.075 pp m. How ever, the Ad ministrator is reconsidering this new standard and is expecting to make a decision in July 2011.2 In 1997, EPA revised the health

- based NAAQS for ozone, setting it at 0.08 parts per million (ppm) averaged over an 8

- hour time frame. 2 EPA set the 8

- hour ozone s tandard based on scientific evidence demonstrating that ozone causes adverse health effects at lower ozone concentrations and over longer periods of time than was understood when the pre

- existing 1

- hour ozone standard was set.

On April 30, 2004 (69 Fed . Reg. 23951), EPA finalized its attainment/nonattainment designations for areas across the country with respect to the 8

- hour ozone standard. These actions became effective on June 15, 2004. The entire state of New Jersey

is located in two multi

- state 8

- hour ozone moderate nonattainment areas, the New York

- Northern New Jersey

- Long Island, NY

- NJ

- CT nonattainment area, and the Philadelphia

- Wilmington

- Atlantic City , PA

- NJ

- MD

- DE nonattainment area.

These designations triggered the Act’s requirements unde r section 182(b) for moderate nonattainment areas, including a requirement to submit an attainment demonstration. EPA’s Phase 1 8

- hour ozone implementation rule, published on April 30, 2004 (69 Fed. Reg. 23951) (Phase 1 Rule) specifies that states must submit attainment demonstrations for their nonattainment areas to the EPA by no later than three y ears from the effective date of designation, that is, b y June 15, 2007. On November 29, 2005, EPA published Phase 2 of the 8

- hour ozone implementation rule ( 70 Fed. Reg. 71612) (Phase 2 Rule) in which it addresses the control obligations that apply to areas designated nonattainment for the 8

- hour ozone NAAQS. Among other things, the Phase 1 and 2 Rules outline the SIP requirements and deadlines for various in areas designated as moderate nonattainment. For such areas, RACT plans were due b y September 2006 (40 CFR 51.912(a)(2)). B. RACT Requirements Sections 172(c)(1), 182(b)(2) and 182(f) of the Act require nonattainment areas that are designated as mo derate or above to adopt RACT. All of New Jersey is subject to this requirement since all counties in the State are located in either of two nonattainment areas that are classified as moderate ozone nonattainment areas for the 8

- hour ozone standard (40 CF R 81.331). In accordance with section 182(b), New Jersey must, at a minimum, adopt RACT level controls for sources covered b y a Control Techniques Guidelines (CTG) document and for any major non

- CTG sources. Section IV.G of EPA’s Phase 2 rule discusse s the RACT requirements for the 1997 8

- hour ozone standard. It states, in part, that where a RACT SIP is required, SIPs implementing the 8

- hour ozone standard generall y must assure that RACT is met, either through a certification that previously required RACT controls represent RACT for 8

- hour ozone implementation purposes or, where necessary , through a new RACT determination. The majority of counties in New Jersey were previousl y classified under the 1

- hour ozone standard as severe, while the remaining c ounties were subject to RACT as part of the Ozone Transport Region. New Jersey chose a uniform applicability level for RACT based on the severe classification which resulted in a statewide requirement3

for major sources of NOx and VOC to be defined as thos e having emissions of 25 tons per year or more of both VOC and/or NOx. Under the 8

- hour standard, in areas classified as moderate, the definition for major sources is 50 tons per y ear for VOC and 100 tons per year for NOx. However, New Jersey’s choice to retain the original 1

- hour ozone limits statewide in New Jersey for purposes of the RACT analy sis resulted in a more stringent evaluation of RACT. New Jersey ’s use of 25 tons per ye ar for RACT is consistent with the anti

- backsliding provisions of the Act. See Clean Air Act Sections 110(l) and 193; and South Coast Air Quality Management Dist (SCAQMD) v. EPA, 472 F.3d 882 (D.C. Cir. 2006).

C. History

of New Jersey ’s NO x RACT Rule , Subchapter 19. NJDEP held public hearings on March 18 and 19, 1993, to he ar public comments on the proposed rule. Following the public hearings and the comment period, on November 15, 1993 , New Jersey adopted Title 7, Chapter 27, Subchapter 19, of the New Jersey Administrative Code (Subchapter 19 or N.J.A.C. 7:27

- 19), entitled “Control and Prohibition of Air Pollution from Oxides of Nitrogen

. ” NJDEP submitted Subchapter 19 to EPA as a revision to the SIP on November 15, 1993. EPA reviewed the SIP revision and found it to be administratively and technically complete by Decembe r 29, 1993. On October 2, 1995, EPA proposed a full approval of NJDEP’s Subchapter 19. 60 Fed. Reg. 51379 (Oct. 2, 1995). The public comment period ended November 1, 1995. EPA did not receive an y comments on the proposed full approval. However, during this public comment period, discussions developed among regional EPA offices as to the approvability

of rules , such as NJDEP’s Subchapter 19, containing generic or “process oriented” provisions establishing RACT requirements for major sources of NO x and/o r VOC emissions. The approvability issue related to Subchapter 19’s generic provision was resolved and EPA approved Subchapter 19. 60 Fed. Reg. 51379 (Jan. 27, 1997) Subchapter 19 became effective on February 26, 1997. On March 24, 1995 , NJDEP adopted amendments to Subchapter 19. NJDEP submitted the amended Subchapter 19 to EPA as a SIP revision on June 21, 1996. EPA found the SIP revision to be administratively and technicall y complete b y S eptember 26, 1996. On August 31, 1998, EPA proposed a full ap proval of NJDEP’s Subchapter 19. 63 Fed. Reg. 46209 (Aug. 31, 1998). The public comment period ended September 30, 1998. EPA did not receive an y comments on the proposed full approval. EPA approved NJDEP’s amendments to Subchapter 19. 64 Fed. Reg. 148 32 (Mar. 29, 1999). The amendments became effective on April 28, 1999. On July 1, 1996 , NJDEP adopted additional amendments to Subchapter 19. NJDEP amended Subchapter 19 to make the regulation consistent with a new program called the Open Market Emissio ns Trading (OMET) Program at Subchapter 30. On October 27, 1998, NJDEP submitted the amended Subchapter 19 to EPA as part of the OMET Program SIP revision. EPA determined the submittal to be administratively and technicall y complete on December 22, 1998. On January 9, 2001, EPA proposed a conditional approval of NJDEP’s OMET Program SIP revision, including the4

corresponding amendments to Subchapter 19. 66 Fed. Reg. 1796 (Jan. 9, 2001). The public comment period ended March 12, 2001. Subsequently , EPA and NJDEP identified a number of problems with the OMET program. On October 18, 2002, EPA announced it would cease processing the OMET Program SIP revision and withdrew its proposed conditional approval. 67 Fed. Reg. 64347 (Oct. 18, 2002). On February 2 5, 2004, NJDEP terminated the OMET Program and repealed Subchapter 30 through rulemaking. NJDEP also amended Subchapter 19 on April 5, 2004 (effective date), to delete those provisions related to the OMET Program, and to include new provisions for sources that participated in the OMET Program to comply with RACT. In an April 26, 2004 letter, EPA notified NJDEP that new provisions proposed in Subchapter 19 were not consistent with the ACT and EPA’s RACT guidance and, therefore, were not approvable as a SIP revision. The corresponding OMET amendments to Subchapter 19 that dealt with sources that availed themselves of the OMET Program were not repealed. Therefore, they

are still part of the rules in Subchapter 19. NJDEP committed to delete the OMET provisi ons from Subchapter 19, and related rules, in future rulemaking. It should be noted that, since the July 1, 1996 adoption, NJDEP adopted administrative changes amendments to Subchapter 19 four additional times without submitting the revised rule to EPA for approval as SIP revisions. The additional amendments include the following effective dates: May 4, 1998 (29 N.J.R. 3521(a); 30 N.J.R. 1563(b)); Administrative change on March 1, 1999 (31 N.J.R. 639); May 15, 2000 (31 N.J.R. 1671(a); 32 N.J.R. 1808(a)); April 5, 2004 (35 N.J.R. 3486(a); 36 N.J.R. 1791(a)); October 17, 2005 (36 N.J.R. 4228(a); 37 N.J.R. 3976(a)); and November 21, 2005 (36 N.J.R. 4607(a); 37 N.J.R. 4415(a)). NJDEP adopted additional amendments to Subchapter 19, effective October 17, 20 05. On July 31, 2007, EPA approved these amendments to Subchapter 19 as part of the SIP. On March 20, 2009 , NJDEP adopted additional amendments to Subchapter 19 and submitted it to EPA as a SIP revision on April 21, 2009. On June 4, 2009, EPA determined the submittal to be administratively and technicall y complete. NJ DEP provided su

pplemental information to EPA on May 7, 2009. EPA proposed approval of the NJDEP’s amendments to Subchapter 19 on April 23, 2010 (75 F ed. R eg. 21197). The public comment peri od ended on May 24, 2010. EPA did not receive an y comments on the proposed full approval. EPA approved NJDEP ’s amendments to Subchapter 19 in the final rule on August 3, 2010 (75 F ed. R eg. 45483). The amendments became effective September 2, 2010. D. Subchapter 19.13 The s ource - s pecific SIP revision discussed in this technical support document was submitted to EPA, pursuant to Subchapter 19. Subchapter 19.13 establishes a procedure for a case

- by

- case determination of what represents RACT for a partic ular facilit y, item of equipment or source operation. This procedure is applicable in two ty pes of situations: (1) where a major NO x facility contains an y source operation or item of equipment not listed in Subchapter 19.2 with the potential to emit more than 10 tons of NO x per ye ar; or5

(2) where the owner or operator of a source operation or item of equipment that is listed in Subchapter 19.2 seeks approval of an alternative maximum allowable emission rate. In the first instance, for any source operation or item of equipment at a major NO x facility , with the potential to emit 10 TPY or more of NO x , not specificall y regulated under Subchapter 19.2, the owner/operator must submit a 'NO x Control Plan' to the NJDEP. This NO x Control Plan is to include a technical and economic feasibility evaluation of NO x control technologies as well as a proposed NO x emission limit. In the second instance, those specific sources subject to NO x limits under Subchapter 19 may

appl y for an alterative emissions limit. In this case, NO x RACT control measures may

be deemed impractical due to some phy sical constraints or the control measures may

be incapable of reducing the emissions to the limits required under Subchapter 19. In this situation, the NJDEP may establish an al ternative maximum allowable emission rate for the affected sources. For each of these situations, Subchapter 19.13 provides that NJDEP establish emission limits based upon a RACT determination specific to the facility in question. The procedures for requesting that determination, and the standards for review of the request, are the same in each situation. The owner or operator of a facilit y for which a NO x control plan is required must obtain approval of the plan, implement it by May 31, 1995, and cont inue to comply with it thereafter. The Act imposes this deadline. Implementing the plan includes obtaining the required permits and certificates, installing the approved NO x control technology , and complying with the emission limits approved in the plan. An owner or operator seeking approval of an alternative maximum allowable emission rate must obtain approval before the source operation or item of equipment in question becomes subject to the rate normally applicable under S ubchapter 19, in order to avo id incurring violations for exceeding that normally

applicable rate. S ubchapter 19.13(h) provides that "an y alternate emissions limit pursuant to Subchapter 19.3(c) or NO x Control Plan pursuant to Subchapter 19.3(b) approved by the NJDEP will be submitte d to EPA for approval as a revision to the SIP for ozone." An alternate emissions limit or NO x Control Plan would be first proposed and adopted in New Jersey

and then, as required by

law, submitted to EPA for approval as a SIP revision. Subchapter 19 p rovides that any alternative emission limit approved by NJDEP after M ay 19, 2009 shall have a limit of 10 y ears, unless the source is modified, altered, or reconstructed during the term of the plan in which case the source may need to appl y to NJDEP for a new alternate emissions limit, pursuant to Subchapter 19.13(b)(6) or 19.3(k). NJDEP approved the source

- specific SIP revision discussed in this TSD on May 12, 2009.

E. Enforceability

of Subchapter 196 For sources not subject to specific emission limitat ions or work practice standards, N.J.A.C. 7:27

- 19.13 provides a procedure and schedule that must be followed in order to comply with the Subchapter. Noncompliance with this procedure would constitute a violation of Subchapter 19, which would subject the s ource owner or operator to civil and/or criminal penalties, as applicable. EPA believes this is sufficient to ensure that sources compl y and should EPA have to take enforcement action, it could use the same provisions to obtain compliance. EPA will proce ss all source

- specific SIP revisions submitted by NJDEP, regardless of the status of EPA approval of Subchapter 19, provided that NJDEP complies with the following:

- provide evidence that NJDEP has the necessary legal authorit y under State law to approve and implement the compliance plan with reference to appropriate State laws and regulations;

- provide a description of the enforcement procedure NJDEP will use should it discover a violation;

- provide a description of the compliance strategy NJDEP will use to ensure compliance; and

- include a cop y of an y relevant permits which are contained in the compliance plan. For “grandfathered” sources, the compliance plan must identify the applicable enforceable requirements or restrictions.

**III. EPA’S ANALYSIS OF**  **STATE SUBMITTAL** (Note this Technical Support Document summarizes the state submission. The complete RACT analysis, related correspondence and SIP revision are available for inspection and review at the EPA Regional Office and NJDEP State Office.) **Naval Weapons Station Earle Alternative N**  **O x**  **Emission Limit** P ursuant to Subchapter 19.3(h) “an y alternate emissions limit pursuant to section 19.3(c) or NOx Control Plan pursuant to section 19.3(b) approved b y the NJDEP will be submitted as an amendment to the S IP for ozone.” An alternate emission limit or NOx Control Plan would be first proposed in New Jersey as an amendment to the SIP and then submitted to EPA, by

law, as a SIP revision. Similarly , Subchapter 19.21(f) requires NJDEP to submit repowering plans to EPA as a revision to the SIP. This technical support document discusses EPA’s anal ys is of a single source

- specific SIP revision. In a letter dated May

14, 2009 from Mark N. Mauriello, Acting Commiss io ner, NJDEP, to Acting Regional Administrator Georg e Pavlou , EPA Region 2 , New Jersey requested EPA’s approval of a revision to the NJ SIP for ozone. The request was for a7

NJ SIP revision for the N aval Weapons Station Earle (NWSE) facilit y located at 201 Highway 34 South in Colts Neck , NJ in Monmouth County
. NWSE facility contains one existing and one new generator which are powered by one existing and one new 500 Kilowatt, lean burn, two

- stroke, compression ignition, dies e l fuel fired , stationary internal combustion reciprocating engine (both engines are Detroit Diesel Model 12V

- 92T ). The source - specific SIP revision for NWSE was proposed by NJDEP on January 16 , 200 9 through public notice in T he Star L edger Newspaper, which is circulated in Colts Neck, New Jersey . The public notice allowed 30 day s for p ublic comments and the opportunity for a public hearing, offered upon written request. NJDEP did not receive any requests for a public hearing, therefore no hearing was held. EPA provided comments on the SIP revision prior to adoption by NJDEP. After re viewing and addressing EPA’s comments, NJDEP adopted the source specific SIP revision on May 12, 2009 and supplemented this information on May

21, 2009

. As part of the completeness review, EPA ensured that NJDEP complied with the conditions discussed earl ier in Section II.E. for source specific SIP revisions. This technical support document is the next step in EPA’s rulemaking process. NJDEP’s SIP revision consists of two attachments with multiple enclosures. **Attachment 1** includes the following document s:

 Enclosure 1: SIP Completeness Checklist
 Enclosure 2: A cop y of the Alternate Emission L imit approval document
 Enclosure 3: Response to comments document
 Enclosure 4: Statement of basis
 Enclosure 5: A cop y of the Public Notice and Opportunity for Public Hearing
 Enclosure 6: A cop y of the Affidavit of Publication of Public Notice
 Enclosure 7: A cop y of the application package from the applicant and other supporting documentation **Attachment 2** includes a copy of N.J.A.C. 7:27

- 19.1 et seq ., Control and Proh ibition of Air Pollution from Oxides of Nitrogen, most recently amended by

New Jersey on April 20, 2009

. The NWSE facility

contains one existing and one new generator powered by one existing and one new 500 Kilowatt (kW) , lean burn, two

- stroke, compress ion ignition, diesel fuel fired , reciprocating stationary internal combustion engine. According to N.J.A.C.7:27

- 19.8 (e) , engines equal to or exceeding 370 kW (500 bhp) used for generating electricit y are subject to the following provisions under this chap ter : 1. Beginning March 7, 2007, exist ing lean burned diesel fuel fired engines are required to compl y with the revised NOx RACT limit of 2.3 g/bhp

- hr. 2. For units (37 kW or larger rated output) that commence operations after March 7, 2007, engines are re quired to comply with the revised NOx RACT limit of 0 .9 0 g/bhp

- hr.8

3. In accordance with N.J.A.C. 7:27

- 19.8(f) and 7:27

- 19.16, owners and operators of these engines are required to adjust the engine’s combustion process in accordance with the manufacturer’ s recommended maintenance schedule and meet specific recordkeeping requirements. This means : 1) NWSE’s existing engine must comply with the revised NOx RACT limit of 2.3 g/bhp

- hr , 2) NWSE’s new engine must comply with the revised NOx RACT limit of 0 .9 0 g/ bhp

- hr , and 3) both of NWSE’s engines must mee t engine combustion adjustment, maintenance and recordkeeping requirements

. However, while combusting diesel fuel , the NWSE’s existing and new engine will not meet the NO x RACT limit s of 2.3 and 0.9 0 g/bhp

- hr, respectivel y . NSWE provided an anal ys is of available control technology and economic feasibility options for reducing NOx emissions from the engines . The anal ys is was conducted to determine the control technology

and NOx emissions limits that would repre sent the best achievable level of control that is both technically and economically

feasible. A total of 16 NOx emissions control technology options were evaluated to determine if they were technically and economicall y feasible for application to either e ngine , and, if so, how effective they would be in reducing NOx emissions from these units and how much they would cost. The list of options was compiled based on the list of technologies set forth in the EPA’s Alternative Control Techniques (ACT) Document , dated July 1993, EPA’s Air Pollution Control Cost Manual , dated June 7. 2003, and EPA’s Stationary Reciprocating Internal Combustion Engines Update Information on NOx Emissions and Control Techniques , dated September 1, 2000, and NJDEP’s State of the Art Manual for Reciprocating Internal Combustion Engines , dated 2003

. Below are the following evaluated NOx control options:

**1. Fuel Switching**  **2. Emissions Averaging**  **3. Ignition Timing Retardation**  **4. Water Injection**  **5. Exhaust Gas Recirculation**  **6. Selective Catalytic Reduct**  **ion 7.**  **Selective Non**
**- Catalytic Reduction**  **8. Catalytic Adsorption**  **9. Lean N**  **O x**  **Catalyst 10.**  **Ozone Injection 11.**  **Aftercooling 12.**  **Non -**  **Selective Catalytic Reduction 13.**  **Catalytic Adsorption**  **14. SCONOx**  **Technology 15.**  **NOx Tech Emissions Control System 16.**  **Prestratified Charge** The findings of the analysis of technical and economical feasibility were that **NONE** of the NOx control technology options mentioned above w as considered to be technicall y9

and economically feasible for either of the engines

. Details of this anal ys is are included in the Enclosure 7 of the NJ SIP

. T herefore, an alternative emission limit (AEL) , as described in N.J.A.C. 7:27

- 19.13 , must be implemented. NWSE submitted an application pursuant to N.J.A.C. 7:27

- 19.13 for an AEL. NWSE has proposed the following , to limit the : 1. NOx emi ssions rate from each engine to 11.3 g/bhp

- hr , 2. t otal NOx emissions rate while combusting 100% distillate oil to 4.67 tons per year for both engines combined , 3. c ombined hours of operation for both engines to less than 675 hours per year, 4. o peration of each engine to 75 % load or less , and 5. annual fuel usage to 20,047.5 0 gallons per year combined for both engines The proposed AE L would allow NWSE to operate both of these engines on 100% distillate oil for up to 675 total hours per year, limit the annual fuel u sage to 20,047.5 0 gallons per year, and lower the allowable NOx emissions from 15.98 (The current approved permit limit for one internal combustion engine .) to 4.67 tons per y ear combined for both engines. NJDEP’s May

21, 200 9, Conditions of Approval for NWSE specify the NOx emissions limits, combustion process adjustment mentioned above , emission testing , monitoring, recordkeeping and reporting requirements. These permit conditions are consistent with the NO x RACT requirements specified in Subchapter 19. Continued compliance will be determined by NJDEP’s review of NWSE’s records and other source data. **EPA’s Evaluation:** EPA reviewed NWSE ’s application and NJDEP’s source

- specific SIP revision for completeness and approvability . EPA agrees with the tech nical and economic feasibility

demonstration and the proposed alternative maximum allowable NO x emission limit of 11.3 g/bhp

- hr for each engine; m aximum allowable NOx emissions rate for both engines combined to 4.67 tons per y ear; combined hours of operati on for both engines to less than 675 hours per y ear; operation of each engine to 75% load or less, and the annual fuel usage to 20,047.5 0 gallons per year combined for both engines . Based on the revised emission limit, as well as the limits on fuel use and hours of operation, EPA proposes to approve NJDEP’s source specific SIP revision for an AELfor NWSE.

**EPA’s APP**  **R OVABILITY RECOMMENDATION: Full Approval** 10