Paul C.Aughrry, I11 Chairman BOARD: Henry C. Scorr
Edwin H. Cooper, 111 Vice Chairman Steven G. Kisner Secretary C. Earl Hunter, Commissioner Promotirig andprotecting the health ofthepublic and the enuironmer~t M. David Mitchell, MD Glenn A. McCall Coleman F. Buckhouse, MD

March 14, 2011

Ms. Gwendolyn Keyes Fleming Regional Administrator United States Environmental Protection Agency, Region 4 Sam Nunn Atlanta Federal Center 61 Forsyth Street, SW Atlanta, Georgia 30303-8960


### Re: Revisions to the South CarolinaAir 

### Quality ImplementationPlan 

### -Preventionof Significant Deterioration and Nonattainment New Source Review
Dear Ms. Fleming:
The South Carolina Department of Health and Environmental Control ("Department") is requesting that the U.S. Environmental Protection Agency ("EPA") grant final approval of revisions to the Prevention of Significant Deterioration ("PSD") and Nonattainment New Source Review ("NSR") provisions ofthe South CarolinaAir Quality Implementation Plan ("SIP"). The Department requested parallel processing for this revision on December 2,2010. Under the parallel processing procedure, the EPA Regional office works closely with the state during the development ofnew or revised regulations and solicits public comment in approximately the same time frame that the state notices its proposed revisions and holds its public hearing. Background
On November 29,2005,the EPA issued a final rule in the Federal Register 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," which finalized regulations to implement the 8-hour ground-level ozone National Ambient Air Quality Standard that the EPA established in July 1997.The Department has implemented all required elements of this rule, but is clarifying a footnote to the PSD regulations to list nitrogen oxide (('NOX") as a precursor to ozone in this SIP revision.
On April 25, 2008, the Department published a Notice of Drafting in the South CarolinaState Register to initiate revisions to Regulation 61-62.5, Standard No. 7, Prevention ofSigniJcant Deterioration, Regulation 61-62.5, Standard No. 7.1, Nonattainment New Source Review (NSR), and the SIP, in order to comply with a final rule entitled Prevention ofSigniJicantDeterioration (PSD) andNonattainment New Source Review (NSR):Removal of Vacated Elements (72 FR 32526), published in the Federal Register on June 13,2007.
On May 16,2008,the EPA published a final rule in the Federal Register entitled Implementation ofthe New Source Review (NSR)Program for Particulate Matter Less Than2.5Micrometers (PM2.3(73 FR

SOUTH CAROLINA DEPARTMENT OFHEALTH AND ENVIRONMENTAL CONTROL 2600BullStreet

# . Columbia,SC29201 Phone:(803) 898-3432 www.scdhec.govMs. Fleming March 14,201 1 Page 2 28321), also known as the "NSR PM2.5Implementation Rule," which finalized regulationsto implement the NSR program for fine particulate matter (that is, particles with 

### an aerodynamic diameter less than or equal to a nominal 

### 2.5 micrometers, generally referred to as "PM2,5"). The NSR PM2.5 Implementation Rule became effective July 15, 2008, and required states with SIP-approved PSD programs, ofwhich South Carolina is one, to submit revised PSD programs within a 3 year transition period followingthe date of its publication (May 16, 201 1). TheNSR PM2.5Implementation Rule included a major source threshold, significant emissions rates for direct PM2.5and its presumed precursors, sulfur dioxide (SO2) and NOx; offset ratios for PM2.5;and interpollutant trading for offsets and applicability of NSR to PM2.5precursors. TheNSR PM2.5 Implementation Rule also continued the EPA's policy of allowing SIP-approved states to use PMlo(that is, particles with an aerodynamic diameter less than or equal to a nominal 10micrometers) as a surrogate for PM2.5 in meeting the NSR requirements ofthe Clean Air Act, until the end ofthe 3 year transition period ("EPA PMloSurrogatePolicy").
On September 26,2008, the Department published a second Notice ofDrafting in the 

### South Carolina State Register for the revisions to Regulation 61-62.5, StandardNo. 7, 

### Prevention ofSigniJicant Deterioration, Regulation 6 1-62.5, Standard No. 7.1, 

### Nonattainment New Source Review (IVSR),and the SIP. This second notice incorporated, among other things, the NSR PM2.5Implementation Rule.
On April 24,2009, the Department published a Notice ofFinal Regulation in the 

### South CarolinaState Register to completethe regulation development process initiated by the aforementioned Notices, except for the revisions required to incorporate the NSR PM2.5 Implementation Rule. The Department elected to delay these revisions for the NSR PM2.5Implementation Rule, pending further guidance from the EPA, which the EPA released in part on September 29,2010.


### CurrentRevisions
On July 23,2010, the Department published a Notice ofDrafting (included as part ofAppendix A) in the 

### South CarolinaState Register to incorporate the NSR PM2.5Implementation Rule and the clarification from the Phase 2 Ozone Rule. On August 16,201 0, EPA Region 4 advised the Department not to include the interpollutant trading ratio amendments in the NSR PM2.5Implementation Rule in this SIP revision, pending the resolution of litigation. The Department has not included interpollutant trading ratios in this SIP amendment.
On October 1,201 0, per a request fiom the EPA, the Department submitted its initial prehearing SIP package to the EPA for review and comment. On October 8,201 0, the Department received recommendations fiom the EPA based on the October 1,201 0, submittal. The Department addressed these recommendations in an October 20, 2010, revised prehearing SIP package.
OnNovember 26,2010, the Department published a Notice ofProposed Regulation (included as part of Appendix B) seeking public comment on the current revisions to the SIP in the 

### South CarolinaState Register. On December 17,201 0, the EPA notified the Department that it had reviewed the October 20, 2010, submittal, and that it had no comments. On December 29,2010, the Department held a staff informational forum ("SIF"). No stakeholders attended, and the Department received no comments during the comment period. A transcript ofthe SIF and copy ofthe SIF Sign-in Sheet are included as part of Appendix A.Ms. Fleming March 14,2011 Page 3 The Department held a public hearing before the Board of Health and Environmental Control on February 10, 20 11, at which the Department received no comments. A transcript ofthis meeting is included as part of Appendix 

### B. On February 25,201 1,the Department published 

### a Notice of Final Regulation (included as part of Appendix B) in the South Carolina StateRegister to revise Regulation 6 1-62.5, Standard No. 7, Prevention of SignzjicantDeterioration, Regulation 6 1-62.5, Standard No. 7.1, Nonattainment New Source Review (NSR), and the SIP. The Department appreciates the assistance provided by EPA Region 4 during the formulation of this plan. Should you or your staffhave any questions or comments concerning this SIP revision, please contact Alan Hancock ofthe Bureau of Air Quality by email at hancocam@dhec.sc.gov or by telephone at

Robert W. King, Jr., P.E. Deputy Commissioner Environmental Quality Control

ec: Richard Schutt, Chief, Air Planning Branch, EPA Region 4 Lynorae Benjamin, Chief, Regulatory Development Section, EPA Region 4 Royce Dansby-Sparks, Regulatory Development Section, EPA Region 4 Twunjala Bradley, Regulatory Development Section, EPA Region 4 Joel Huey, Regulatory Development Section, EPA Region 4 Myra Reece, Bureau Chief, BAQ, S.C. DHEC Renee Shealy, Assistant Bureau Chief, BAQ, S.C. DHEC Robert Brown, Director, Division of Air Assessment, Innovations, and Regulation, BAQ, S.C. DHEC Maeve S. R. Mason, Manager, Regulation & SIP Management Section, BAQ, S.C. DHEC
CD enclosure:
1. Text of Final Regulation (strikeout and clean copy) 2. Appendix A: Notice ofDrafting, Notice of Proposed Regulation, Staff-Led Informational Forum Sign-in Sheet and Transcript 

### 3. Appendix B: Board Public Hearing Transcript and Notice of Final Regulation 4. Appendix C: Copy of Legal Authority