ENVIRONMENTAL PROTECTION AGENCY 

40 CFR Part 52 

[EPA-RIO-OAR-2011-0767, FRLApproval and Promulgation of Implementation Plans; Oregon: New Source Review I Prevention 

of Significant Deterioration Rule Revisions and Air Quality Pennit Streamlining Rule Revisions 

AGENCY: Environmental Protection Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing to approve a portion ofthe State Implementation Plan (SIP) 

revision submitted by the State of Oregon for the purpose of addressing the third element of the 

interstate transport provisions ofClean Air Act (CAA or the Act) section 11O(a)(2)(D)(i)(II) for 

the 1997 8-hour ozone National Ambient Air Quality Standards (NAAQS or standards) and the 

1997 and 2006 fine particulate matter (PM2.s) NAAQS. The third element ofCAA section 

110(a)(2)(D)(i)(II) requires that a State not interfere with any other State's required measures to 

prevent significant deterioration (PSD) ofits air quality. 

EPA is also proposing to approve numerous revisions to the Oregon SIP that were 

submitted to EPA by the State ofOregon on October 8, 2008; October 10, 2008; March 17, 

2009; June 23,2010; December 22,2010 and May 5,2011. The revisions include updating 

Oregon's new source review (NSR) rules to be consistent with current Federal regulations and 
streamlining Oregon's air quality rules by clarifying requirements, removing duplicative rules, 

and correcting errors. The revisions were submitted in accordance with the requirements of 

section 110 and part D ofthe Act ). 

DATES: Comments must be received on or before [insert date 30 days after publication in the 

Federal Register]. 

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-RlO-0AR-201l-0767, 

by any ofthe following methods: 

• 	 www.regulations.gov: Follow the on-line instructions for submitting comments. 

• 	 Email: RIO-Public Comments@epa.gov 

• 	 Mail: Scott Hedges, EPA Region 10, Office ofAir, Waste and Toxics (A WT-107), 1200 

Sixth Avenue, Suite 900, Seattle WA, 98101 

• 	 Hand Delivery I Courier: EPA Region 10, 1200 Sixth A venue, Suite 900, Seattle W A, 

98101. Attention: Scott Hedges, Office ofAir, Waste and Toxics, AWT - 107. Such 

deliveries are only accepted during normal hours of operation, and special arrangements 

should be made for deliveries ofboxed information. 

Instructions: Direct your comments to Docket ID No. EPA-RlO-0AR-2011-0767. EPA's 

policy is that all comments received will be included in the public docket without change and 

may be made available online at www.regulations.gov, including any personal information 

provided, unless the comment includes information claimed to be Confidential Business 

Information (CBI) or other information whose disclosure is restricted by statute. Do not submit 

information that you consider to be CBI or otherwise protected through www.regulations.gov or 

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e-maiL The www.regulations.gov website is an "anonymous access" system, which means EPA 

will not know your identity or contact information unless you provide it in the body of your 

comment. If you send an e-mail comment directly to EPA without going through 

www.regulations.gov your e-mail address will be automatically captured and included as part of 

the comment that is placed in the public docket and made available on the Internet. If you 

submit an electronic comment, EPA recommends that you include your name and other contact 

information in the body of your comment and with any disk or CD-ROM you submit. If EP A 

cannot read your comment due to technical difficulties and cannot contact you for clarification, 

EP A may not be able to consider your comment. Electronic files should avoid the use of special 

characters, any form of encryption, and be free of any defects or viruses. 

Docket: All documents in the docket are listed in the www.regulations.gov index. Although 

listed in the index, some information is not publicly available, e.g., CBI or other information 

whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is 

not placed on the Internet and will be publicly available only in hard copy. Publicly available 

docket materials are available either electronically in www.regulations.gov or in hard copy 

during normal business hours at the Office of Air, Waste and Toxics, EPA Region 10,1200 

Sixth Avenue, Seattle WA, 98101. 

FOR FURTHER INFORMATION CONTACT: Scott Hedges at telephone number: (206) 

553-0296, e-mail address: hedges.scott@epa.gov, or the above EPA, Region 10 address. 

SUPPLEMENTARY INFORMATION: Throughout this document wherever "we", "us" or 

"our" are used, we mean EPA. Information is organized as follows: 

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Table of Contents 

I. Purpose of Proposed Action 

II. Oregon SIP Revisions 

A. 	 Third PSD Element of Oregon's Interstate Transport SIP for the 1997 Ozone and 

1997 and 2006 PM2.5 NAAQS 

B. 	 How Oregon's NSRlPSD Permitting Program Meets Federal Requirements 

1. Oregon's NSRlPSD Rule Revisions 

2. Analysis ofOregon's NSRlPSD Revisions 

C. 	 Agricultural Operations (as specified in Oregon Revised Statute 468A.020) 

D. Permitting Rule Corrections, Clarifications and Streamlining 

1. Rule Revisions in the October 10,2008 SIP Submittal 

2. Rule Revisions in the March 17,2009 SIP Submittal 

3. Rule Revisions in the June 23, 2010 SIP Submittal 

E. 	 Significant Changes to Oregon's SIP 

III. EPA's Proposed Action 

A. Rules to Approve into SIP 

B. 	Rules on which No Action is Taken 

IV. Statutory and Executive Order Reviews 

I. Purpose of Proposed Action 

EPA proposes to approve a portion of Oregon's Interstate Transport SIP revision for the 

1997 8-hour ozone and 1997 and 2006 PM2.5 NAAQS submitted by the Oregon Department of 

Quality (ODEQ) on June 23, 2010, and December 22, 2010.' Specifically, we are proposing to 

approve the portion ofthe plan that addresses the third element ofsection 11 O(a)(2)(D)(i), 

interference with any other State's required measures to PSD ofits air quality with respect to 

these NAAQS. On June 9, 2011, EPA approved elements one and two ofCAA section 

11O(a)(2)(D)(i): (1) significant contribution to nonattainment ofthese NAAQS in any other 

State, and (2) interference with maintenance ofthese NAAQS by any other State (76 FR 33650). 

I See transmittal letters dated June 23, 2010, from Joni Hammond, Deputy Director, ODEQ, and December 22, 

2010, from Dick Pedersen, Director, ODEQ, to Dennis McLerran, Regional Administrator, EPA Region 10. 

4 

In addition, on July 5, 20 II , EPA approved the SIP for the fourth element ofCAA section 

11O(a)(2)(D)(i) found the SIP to be adequate for element four: interference with any other 

State's required measures to protect visibility (76 FR 38997). 

EPA is also proposing to approve multiple revisions to Oregon's SIP that were submitted 

to EPA by ODEQ on October 8,2008, October 10,2008, March 17,2009, June 23,2010, 

December 22,2010, and May 5,2011. The revisions update Oregon's NSR rules to be consistent 

with Federal requirements by regulating PM2.5 and precursor pollutants, as well as adding 

greenhouse gases (OHOs) to the list of pollutants whose emissions are subject to control under 

the State's NSR permitting process and establishes a threshold for such regulation. Approval of 

the State's OHO permitting regulations is proposed to be accompanied by a simultaneous 

withdrawal of the Federal Implementation Plan (FIP) that EPA promulgated on December 9, 

2010 (75 FR 82246). EPA also proposes to approve changes to Oregon's Plant Site Emissions 

Limit (PSEL) program which address the method for establishing baseline emissions and adopt a 

threshold or significant emission rate of 10 tons per year ofPM2.5 as a significant change at an 

existing facility. Other SIP rule changes that are proposed for approval in this action streamline 

and clarify the State's air quality rules that are unrelated to NSR and remove duplicative or 

outdated requirements (such as the removal of unused basic permit categories that are covered 

under the general permitting provisions ofthe Oregon Administrative Rules (OAR). The SIP 

submittals, described in greater detail in this Notice, revise and amend OAR, chapter 340, 

divisions 200,202,204,206,209,210,214,216,222,224,225,228, 234, and 236, currently in 

the federally approved Oregon SIP (CFR part 52, subpart MM), and add portions ofOAR 

chapter 340, division 208 to the Federal approved Oregon SIP. The proposed SIP revisions are 

5 

explained in more detail below along with our evaluation ofhow these rules comply with the 

requirements for SIPs and the basis for our proposed action. 

II. Oregon SIP Revisions 

Table 1 provides a list of each SIP submittals by ODEQ (by submittal date, and subject) 

evaluated in this proposed action. The paragraphs that follow Table 1 include further information 

for each SIP submittal including a summary ofthe submittal with relevant background 

information and analysis to support our action. 

Table 1: ODEQ SIP Submittals Addressed in this Action2 

Date of Submittal Subject 

10108/2008 Statutory Agricultural Operations Exemption 

10/1012008 Permit Streamlining Rules 

(Repealed Rules in Italics) 

i 0311712009 Plant Site Emission Limit (PSEL) Rule 

06/23/2010 (Report on interstate 

transport ofPM2.5 and ozone added 

to submittal on 12/221201 0) 

Infrastructure SIP Rule Changes 

05/0512011 NSR, PM2.5, and GHG Permitting Rule Updates 

Title I ofthe CAA, as amended by Congress in 1990, specifies the general requirements 

for States to submit SIPs to attain and/or maintain the NAAQS and EPA's actions regarding 

approval ofthose SIPs. With this action we are proposing approval ofthe third element of 

2 EPA is not proposing to take action on each of the regulatory provisions that were included in the five SIP 

submissions identified in Table 1. Only the SIP revisions and implementing regulations specifically identified in 

Table 2 are being proposed for action in today's notice. 

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Oregon's Interstate Transport SIP revision for the 1997 8-hour ozone and 1997 and 2006 PM2.5 

NAAQS related to PSD. 

EPA last approved the Oregon major NSR rules (which encompass PSD and part D NSR) 

on December 17,2002 (published January 22,2003,68 FR 2891). That approval acted on a July 

1, 2001, comprehensive version of Oregon's NSR rules submitted to EPA on June 26, 2001, prior 

to the 2002 NSR Refonn Rules (published on December 31,2002, effective date March 3,2003). 

Since the approval ofthe State's July 2001 rules, ODEQ has submitted several NSRJPSD rule 

revisions for incorporation into the federally approved SIP including, most recently, the changes 

needed for the pennitting ofPM2.5 and GHGs under ODEQ's major NSR program. The 

regulations which are proposed for approval in this action accordingly include PSD pennitting of 

PM2.5 and GHGs and nonattainment NSR pennitting of PM2.5. 

Finally, EPA is also proposing to approve multiple SIP submittals containing ODEQ rule 

revisions that effectuate structural reorganizations ofthe Oregon code. These rules have been 

clarified and streamlined with duplicative and outdated requirements removed. Further 

background for each one is provided in the section below. 

A. Third PSD Element of Oregon's Interstate Transport SIP for the 1997 Ozone and 

1997 and 2006 PM2.5 NAAQS 

7 

On July 18, 1997, EPA promulgated the 1997 8-hour ozone

3 NAAQS and the 1997 PMZ.5 

NAAQS4, Additionally on December 18, 2006, EPA revised the 1997 24-hour PMZ.5 standard. 5 

Today's proposed actions relate to these revised standards (the 1997 8-hour ozone NAAQS and 

the 1997 and 2006 PMZ.5 NAAQS). 

Section 110(a)(I) ofthe CAA requires States to submit SIPs to address a new or revised 

NAAQS within three years after promulgation ofsuch standards, or within such shorter period as 

EP A may prescribe. Section 11 O(a)(2) lists the elements that such new SIPs must address, as 

applicable, including section 11 O(a)(2)(D)(i) which pertains to interstate transport of certain 

emissions. On August 15, 2006, and September 25,2009, respectively, EPA issued guidance for 

States making submissions to meet the requirements of section 11O(a)(2)(D)(i) for the 1997 8­

hour ozone and 1997 PMz.5 standards (2006 Guidance)6 and for the 2006 PMZ.5 standards (2009 

Guidance). 7 

3 See 62 FR 38856. The level of the 1997 8-hour ozone NAAQS is 0.08 parts per million (ppm). 40 CFR part 50.10. 

The 8-hour ozone standard is met when the 3-year average of the annual 4th highest daily maximum 8-hour ozone 

concentrations is 0.08 ppm or less (i.e., less than 0.085 ppm based on the rounding convention in 40 CFR part 50, 

appendix I). This 3-year average is referred to as the "design value." 

4 See 62 FR 38652. The level of the 1997 PM2.

5 NAAQS are 15.0 Ilgim3 (annual arithmetic mean concentration) and 

65 Ilgim3 (24-hour average concentration). 40 CFR part 50.7. The annual standard is met when the 3-year average of 

the annual mean concentrations is 15.0 Ilgim3 or less (i.e., less than 15.05 Ilgim3 based on the rounding convention 

in 40 CFR part 50, appendix N section 4.3). The 24-hour standard is met when the 3-year average annual 98th 

percentile of 24-hour concentrations is 65 Ilgim3 or less (i.e., less than 65.5 llg/m3 based on the rounding convention 

in 40 CFR part 40 appendix N section 4.3). Id. These 3-year averages are referred to as the annual PM1.

5 and 24-hour 

PM2.5 "design values," respectively. 

5 See 71 FR 61144 . In 2006, the 24-hour PM2.5 NAAQS standard was changed from 65 llg/m3 to 35 Ilgim3 (24­

hour average concentration). The annual PM2.5 standard was not changed. 40 CFR 50.13. 

6 Memorandum from William T. Harnett entitled "Guidance for State Implementation Plan (SIP) Submissions to 

Meet Current Outstanding Obligations Under Section 110(a)(2)(D)(i) for the 8-hour ozone and PM2.5 National 

Ambient Air Quality Standards," August 15, 2006. 

7 Memorandum from William T. Harnett entitled "Guidance SIP Elements Required Under Sections llO(a)(l) and 

(2) for the 24-hour Particle (PM2.

5) National Ambient Air Quality Standards (NAAQS)," September 25,2009. 

8 

The interstate transport SIP provisions in section 110(a)(2)(D)(i) (also called "good 

neighbor" provisions) require each State to submit a SIP that contains provisions that prohibit 

emissions that adversely affect another State in the ways contemplated in the statute. Section 

110(a)(2)(D)(i) identifies four distinct elements related to the evaluation of impacts of interstate 

transport of air pollutants. In this rulemaking EPA is addressing the third element in this 

subsection. The third element of section 11 0(a)(2)(D)(i) requires a SIP to contain adequate 

provisions prohibiting emissions that interfere with any other State's required measures to 

prevent significant deterioration of its air quality. 

As a part of its SIP submittal addressing interstate transport, ODEQ submitted an analysis 

entitled "Oregon SIP Infrastructure for Addressing the Interstate Transport ofOzone and Fine 

Particulate Matter", dated November 5, 2009, to EPA on December 22,2010.8 EPA believes 

that ODEQ's submission is consistent with EPA's recommendations in both the 2006 and 2009 

Guidance, when evaluated in conjunction with the NSRlPSD rule revisions that EPA proposes to 

approve in today's action. EPA's proposed approval of Oregon's SIP submission for purposes of 

meeting the requirements of section 110(a)(2)(D)(i) is contingent upon the final approval ofthe 

NSRlPSD rule revisions also included in this proposed action. (In addition to this section, see 

sections II. C through E ofthis action for a discussion of the rule revisions proposed for 

approval.) 

EP A proposes to find that the Oregon SIP (40 CFR 52 subpart MM), as amended by 

today's proposed action, includes the requirements under the CAA necessary to avoid 

8 This interstate transport report was inadvertently left out of the original June 23, 2010, SIP submittal. 

9 

interference with another State's SIP measures for preventing significant deterioration of air 

quality. 

Oregon has no EPA designated 8-hour ozone nonattainment areas, and has two designated 

24-hour PM2.5 nonattainment areas (Klamath Falls and Oakridge). For most ofthe State, ODEQ 

permits new major industrial sources through the PSD program for these pollutants. ODEQ's major 

NSR rules (division 224- which includes both nonattainment NSR and PSD rule provisions), as 

reflected in the rules proposed for incorporation into the SIP in today's action, ensure that the 

programs for PSD in other States are not jeopardized by new or expanding industrial sources. 

Specifically, all new industrial sources and major modifications to existing industrial sources in 

attainment areas are subject to ODEQ PSD rules requiring pre-construction review, air quality 

analysis, the application of any required emission control technology, and air permitting. All new 

sources and major modifications in nonattainment areas are subject to the nonattainment New Source 

Review provisions ofthese rules, including LAER, offsets, and net air quality benefit. ODEQ's PSD 

program directly regulates PM2.5 meeting the requirements ofNSRlPSD and also includes 

procedures to address Phase-II requirements ofthe final rule to implement the 8-Hour Ozone 

NAAQS. 

EPA believes that Oregon's regulatory and SIP revision for the 1997 8-hour ozone 

NAAQS that makes NOx a precursor for ozone for PSD purposes and the PSD revision for the 

1997 and 2006 PM2.5 NAAQS that makes S02 and NOx precursors for PM2.5 for PSD purposes, 

taken together with the other revised PSD rule revisions that EPA proposes to approve in this 

action, satisfy the requirements ofthe third element ofsection 11 0(a)(2)(D)(i) for the 1997 8­

hour ozone NAAQS and the 1997 and 2006 PM2.5 NAAQS. That is; these provisions ensure that 

10 

there will be no interference with any other State's required PSD measures because Oregon's 

SIP, as proposed for approval in this action, will meet current CAA requirements for PSD. 

B. How Oregon's NSRlPSD Permitting Program Meets Federal Requirements 

Parts C and D of title I of the CAA, 42 U.S.C. 7470-7515, set forth preconstruction 

review and permitting programs applicable to new and modified stationary sources of air 

pollutants regulated under the CAA, known ,as "major New Source Review" or "major NSR." 

The major NSR programs of the CAA include a combination of air quality planning and air 

pollution control technology program requirements. States adopt major NSR programs as part of 

their SIP. Part C is the "Prevention of Significant Deterioration" or "PSD" program, which 

applies in areas that meet the NAAQS (i.e., "attainment" areas) as well as in areas for which 

there is insufficient information to determine whether the area meets the NAAQS (i.e., 

"unclassifiable" areas). Part D is the "Nonattainment New Source Review" or the "NNSR" 

program, which applies in areas that are not in attainment of the NAAQS (i.e., "nonattainment 

areas"). EPA regulations implementing these programs are contained in 40 CFR 51.165, 51.166, 

52.21,52.24, and part 51, appendix S. 

On December 31, 2002, EPA published final rule changes to the PSD and NNSR 

programs (67 FR 80186) and on November 7, 2003, EPA published a notice of final action on 

the reconsideration ofthe December 31, 2002 final rule changes (68 FR 63021). In the 

November 7, 2003 final action, EPA added a definition of "replacement unit," and clarified an 

issue regarding plantwide applicability limitations (PALs). The December 31, 2002 and the 

November 7, 2003, final actions, are collectively referred to as the "2002 NSR Reform Rules." 

11 

The 2002 NSR Reform Rules made changes to five areas of the major NSR programs 

related to physical and operational changes at existing major stationary sources. In summary, the 

2002 rules: (1) provide a new method for determining baseline actual emissions; (2) adopt an 

actual-to-projected-actual methodology for determining whether a major modification has 

occurred; (3) allow major stationary sources to comply with PALs to avoid having a significant 

emissions increase that triggers the requirements of the major NSR program; (4) provide a new 

applicability provision for emissions units that are designated clean units; and (5) exclude 

pollution control projects (PCPs) from the definition of "physical change or change in the 

method ofoperation." 

After the 2002 NSR Reform Rules were finalized and effective (March 3, 2003), various 

petitioners challenged numerous aspects of the 2002 NSR Reform Rules, along with portions of 

EPA's 1980 NSR rules (45 FR 5276, August 7, 1980). On June 24,2005, the DC Circuit Court 

issued a decision on the challenges to the 2002 NSR Reform Rules. See New York v. United 

States, 413 F.3d 3 (DC Cir. 2005). In summary, the DC Circuit Court vacated portions ofthe 

2002 NSR Reform Rules pertaining to clean units and PCPs, remanded a portion of the rules 

regarding recordkeeping (40 CFR 52.21 (r)(6) and 40 CFR 51.166(r)(6)), and either upheld or did 

not comment on the other provisions included as part of the 2002 NSR Reform Rules. On June 

13, 2007 (72 FR 32526), EPA took final action to revise the 2002 NSR Reform Rules to remove 

from Federal law all provisions pertaining to clean units and the PCP exemption that were 

vacated by the D.C. Circuit Court. 

12 

The 2002 NSR Refonn Rules require that State agencies adopt and submit revisions to 

their SIP pennitting programs implementing the minimum program elements ofthe 2002 NSR 

Refonn Rules no later than January 2,2006. To meet this requirement, ODEQ submitted an 

NSR refonn equivalency demonstration report on December 22,2005. 

1. Oregon's NSRlPSD Rule Revisions 

EP A last approved the Oregon major NSR rules addressing part D NSR and PSD on 

December 17, 2002 (published January 22, 2003, 68 FR 2891). This approval acted on a July 1, 

2001, comprehensive version ofOregon's NSR rules submitted to EPA on June 26,2001. 

On May 5,2011, ODEQ submitted a series ofrule changes as revisions to the Oregon 

SIP. These rule changes are necessary to align its rules with significant changes made to EPA's 

air quality pennitting regulations, including the 2002 NSR Refonn Rules (published on 

December 31, 2002, effective date March 3, 2003), and the pennitting of PM2,5 and OHO 

emissions. The SIP submittal covers revisions to OAR chapter 340, divisions 200,202,216,224, 

225, and 228. 

The rule revisions include the adoption of a threshold or significant emission rate of 10 

tons per year ofPM2,5 as a significant change at an existing facility. Facilities would trigger 

NSRlPSD pennitting only if a physical or operational change increased emissions above this 

threshold. The rule revisions also include the adoption oflevels to detennine if additional 

13 

ambient air quality analysis is required, track the cumulative impact of emissions growth in areas 

that meet air quality standards, and determine if preconstruction monitoring is required for PM2.5. 

The May 5,2011, SIP submittal also includes rules to allow the permitting ofGHG 

emissions under Oregon's NSRlPSD program. Oregon's definition of "federal major source" is 

almost identical to EPA's definition of "major stationary source" and as such, Oregon has 

tailored its PSD rules in a manner identical to EPA's with respect to major sources ofGHG 

emissions. That is, for a "federal major source" to be "major" for GHGs under the Oregon PSD 

program, it must have the potential to emit GHGs equal to or greater than 100,000 tons per year 

on a carbon dioxide equivalent (C02e) basis and a potential to emit GHGs equal to or greater 

than 1001250 tons per year on a mass basis.9 However, as discussed above, Oregon's definition 

of "major modification" is substantially different than (but equivalent to) EPA's definition of 

"major modification" so Oregon has tailored its PSD rule in a different manner in order to 

produce the same outcome with respect to major modifications for GHGs as EPA's Tailoring 

Rule. 

In order for Oregon's PSEL-based definition to have the same effect as EPA's definition 

of "major modification" with respect to GHG emissions (Le., an increase greater than 75,000 

tons per year on a C02e basis and an increase greater than "zero" on a mass basis), Oregon's rule 

requires the establishment ofPSELs on a C02e basis and an increase in the PSEL of more than 

75,000 tons per year on a C02e basis, before a "major modification" under the Oregon rules will 

9 Carbon dioxide equivalent or C02e is a unit of measurement that allows the effect ofdifferent GHGs to be 

compared using carbon dioxide as a standard unit for reference. 

14 
have occurred. to This approach is consistent with how the Oregon program defines major 

modifications for all other NSR regulated pollutants and results in the same outcome as EPA's 

Tailoring Rule with respect to major modifications for OHO emissions. 

EPA proposes to find that these provisions are consistent with EPA's OHO Tailoring 

Rule and is proposing to approve this OHO PSD permitting revision into the Oregon SIP 

providing Oregon with the authority to issue PSD permits addressing OHO emissions. In 

addition, EPA will rescind the FIP codified in 40 CFR 52.1987( d) that ensures the availability of 

a PSD-permitting authority for OHO-emitting sources in Oregon once this proposed action has 

been approved into the Oregon SIP. 

Additionally the May 5,2011, SIP submittal includes rule changes providing small-scale 

local energy projects more flexibility in obtaining reductions to offset proposed emission 

increases. 

EPA has reviewed these amendments to the ODEQ rules and, as discussed below, has 

determined that they meet EPA's requirements under sections 110, part C and part D oftitle I of 

the CAA. EPA is therefore proposing to approve them as revisions to the Oregon SIP. 

2. Analysis of Oregon's NSRJPSD Revisions 

10 Oregon's rules use the terms "significant emission threshold" or "significant emission rate (SER)" for GHG PSD 

permitting purposes. However, these terms do not have the same meaning as "significant" as used in the context of 

EPA's PSD regulation at 40 C.F.R. 51.166. EPA has not established a significant emission rate for GHGs under 40 

C.F.R. 51.1 66(b)(23)(i). Oregon's PSEL PSD permitting program establishes a GHG threshold of 75,000 C02e to 

tailor the application of its PSD permitting program in a manner similar to EPA's GHG Tailoring Rule. 

15 
In 1982, EPA approved Oregon's Major NSRJPSD program as equivalent to, or more 

stringent than, EPA's NSRJPSD regulations (47 FR 35191, August 13, 1982). Oregon's program 

includes a Major NSR rule that covers non-attainment NSR and PSD applicability provisions as 

well as a separate but related PSEL (plant-wide cap) rule. The PSEL rule employs a similar, 

though not identical, approach to EPA's PAL program and was in fact identified as 'an example 

'of a State program successfully using a PAL concept during EPA's development ofits PAL 

regulations. 

In the December 31, 2002, preamble to its 2002 NSR Reform Rules, EPA discussed 

potential state PAL regulatory programs that could differ from the Federal rules while still 

affording equivalent effectiveness as an NSRJPSD program. The 2002 NSR Reform rules did 

not include specific requirements for an area-wide PAL program. However, the Agency did 

provide that "[i]f a State currently has or wants to pursue an area-wide PAL program, then it 

must demonstrate that its program is equivalent to or more stringent than our final [PAL] 

rules."I! Later on, EPA affirmed that fI[ elver since our current NSR regulations were adopted in 

1980, we have taken the position that States may meet the requirements of part 51 'with different 

but equivalent regulations.' 45 FR 52676. Several states have, indeed, implemented programs 

that work every bit as well as our own base programs, yet depart substantially from the basic 

framework established in our rules. A good example is Oregon, where the SIP-approved 

1167 FR 80221 (December 31,2002). 

16 

program requires all major sources to obtain plantwide permits not unlike the PALs that we are 

finalizing today ... " 12 

Oregon's NSRlPSD program differs from the Federal program in several ways. It doesn't 

subject the same sources and modifications to major NSR as would EPA's rules. The program 

has lower major source thresholds for sources in nonattainment areas and maintenance areas, so 

smaller new sources and changes to smaller existing sources are subject to review. The program 

also requires fugitive emissions to be included in the applicability determination for all new 

sources and modifications to existing sources. However, as mentioned, the program also utilizes 

a PSEL approach to defining major modifications rather than a contemporaneous net emissions 

increase approach as does EPA's main (non PAL alternative) NSR reform approach. 

The effect of Oregon's PSEL approach is that, generally, changes which would be subject 

to review under the PAL provisions in the 2002 NSR Reform Rules are subject under Oregon's 

rules. However, there are some differences between the Oregon rules and EPA's rules that, 

generally, result in Oregon's program being more protective. For example, when a major 

modification is permitted, BACT and/or LAER is required for more new and modified emission 

units than under EPA's PAL rules. Oregon's rules require BACT/LAER for all new and 

modified units, not just significant and major units, as well as defining what constitutes a 

modified unit more broadly than EPA's rules. In addition, changes which would result in 

increased emissions, but would not be considered modifications under either the Oregon rules or 

12 67 FR 80241. 

17 
EPA's reform rules are still reviewed for compliance with ambient standards and PSD 

increments under Oregon's PSEL program. 

Overall, EPA has determined that Oregon's PSD program for reviewing and controlling 

emissions from new and modified sources is at least as strict as EPA's program. We have 

reviewed Oregon's NSRJPSD program and ODEQ's recent rule revisions included in today's 

proposed action, and have determined that the NSRJPSD program meets the current requirements 

in 40 CFR 51.165 and 51.166. Accordingly, EPA proposes in this action to approve the 

specified changes into the federally approved SIP. 

C. Agricultural Operations (as specified in Oregon Revised Statute 468A.020) 

The CAA does not provide an exemption for agricultural operations while, prior to 2007, 

Oregon's State law exempted most agricultural operations from air quality regulations. To 

address this discrepancy, the 2007 Oregon Legislature (in accordance with Oregon Senate Bill 

235) updated Oregon's air quality law (Oregon Revised Statute (ORS) 468.020 and 468A.020) to 

be consistent with the Federal CAA enabling the regulation of air emissions from agricultural 

sources if necessary to implement the Federal CAA. The Oregon Environmental Quality 

Commission in tum adopted rule amendments to OAR 340-200-0030, 340-210-0205, and 340­

264-0040 to align these rules with ORS 468A.020 and to make revisions to Oregon's SIP and the 

Oregon title V operating permit program. The revisions to OAR 340-200-0030,340-210-0205, 

and 340-264-0040 were submitted to EPA by ODEQ on October 8, 2008. OAR rules now allow 

18 

agricultural air quality pollution sources to be regulated in Oregon as necessary to meet CAA 

requirements. 

EP A believes that the revised ORS 468A.020 (in conjunction with the corresponding 

revisions to the OAR 340-200-0030, 340-210-0205, and 340-264-0040) meet CAA requirements 

and, therefore, we propose to incorporate these revised OAR provisions into the federally 

approved Oregon SIP. 

D. Permitting Rule Corrections, Clarifications and Streamlining 

EPA is proposing to take action on portions of the following three SIP submittals by 

ODEQ that correct previous errors, provide clarification and streamline air quality permitting 

rules in the State of Oregon. These rules are described with additional specificity in section E of 

this notice. 

1. Rule Revisions in the October 10, 2008, SIP Submittal 

In 2001, ODEQ streamlined the Air Quality Program's permitting program which was previously 

approved by EPA. In 2007, ODEQ's rulemaking further streamlined and updated the permitting 

process by clarifying requirements, eliminating duplicative and conflicting standards; keeping rules 

in line with Federal requirements, and correcting errors. This rule making package was submitted by 

19 

ODEQ to EPA as a SIP revision on October 10, 2008. The SIP submittal covers revisions to OAR 

chapter 340, divisions 200, 208, 209, 214, 216, 218, 228, 232, 234 and 236 and EPA is proposing to 

approve incorporation ofthese provisions into the federally approved SIP. The rule revisions in the 

October 10, 2008 SIP submittal: 

1) 	 Add the chemical HFE-7300 to a list of compounds exempt from the definition of 

volatile organic compounds (VOC), or ground-level ozone precursors to be 

consistent with Federal regulations; 

2) 	 Revise Excess Emissions rules to address the factors which ODEQ will take into 

consideration to determine how it will exercise its enforcement discretion with 

respect to excess emissions incidents meeting specified criteria; 

3) 	 Delete unused Basic Permit categories in the Air Contaminant Discharge Permit 

(ACDP) rules that have been replaced by other permit categories; 

4) 	 Update, correct errors, and clarify general permits for asphalt plants, boilers, 

concrete plants, rock crushers, and wood products facilities (These changes clarify 

monitoring, reporting and compliance procedures in division 216 (ACDPs) and 

include a provision that facilities with ACDPs may not be operated if the permit 

expires or is terminated, unless a timely renewal application has been submitted 

or another type of permit has been issued. The revisions also clarify that for 

facilities with title V or ACDPs, requirements established in preceding permits 

remain in effect unless specifically modified or terminated.); 

20 
5) Change the averaging time in the sulfur dioxide standards for fuel-burning 

equipment from two hours to three hours to align with Federal standards (refer to 

section D, division 228 ofthis proposal- Requirements for Fuel Burning 

Equipment and Fuel Sulfur Content - for a complete discussion ofthe revised 

averaging time ofthe sulfur dioxide emission standards); 

6) Add a requirement for prior notification for those seeking to avail themselves of 

the exemption allowing a higher (currently SIP-approved) emission rate for 

burning salt laden wood waste; 

7) SIP-strengthening measures that replace outdated regulations governing wigwam 

burners with a state-wide prohibition on their use; 

8) Streamline the kraft pulp mill rules (in division 234) by clarifying permitting and 

compliance determinations, and eliminating unnecessary reporting, which 

includes removing a Director's discretion reference in the definition of "Daily 

Arithmetic Average" allowing alternatives to emission limits, testing or monitoring 

methods without prior EPA approval, removing a section on submission ofplans for 

construction and modification because general permitting regulations in division 210 

address these requirements, removing a section requiring use ofobsolete sodium ion 

probe, as well as claritying Federal New Source Performance Standards requirements 

that apply to kraft pulp mills; 

21 
9) Specifies average hourly emission rate calculation procedures and measurement 

methods for board products manufacturing. 

These changes clarify, correct and update Oregon's existing rules to be consistent with Federal 

regulations as well as streamline the permitting process and are proposed for approval into the SIP. 

It should also be noted that on November 5, 1999, ODEQ submitted a complete rule 

renumbering to EPA for approval. On January 22, 2003 (68 FR 2891), we approved most of 

these new divisions but at that time did not take action on division 208 (Visible Emissions and 

Nuisance Requirements). We are now proposing to approve rules 0010 (Definitions), 0100 

(Visible Emissions, Applicability), 0110 (Visible Emissions,Visible Air Contaminant 

Limitations), 0200 (Fugitive Emissions Requirements, Applicability) and 0210 (Fugitive 

Emissions Requirements) ofdivision 208 into the Oregon SIP which will replace division 21, 

rules 015, 050, 055, and 060. 

Additionally, we are proposing to approve Oregon's current excess emission rules 

(division 214, rules 0300 through 0360) into the Oregon SIP. Upon approval, these division 214 

rules will replace the federally-approved division 28 which will be removed from the SIP. EPA 

finds that the division 214 rules included in the October 10,2008, SIP submittal conform to 

Federal guidance related to excess emissions, and proposes to incorporate these rules into the 

SIP. Oregon's excess emission provisions specify the factors that the State will take into account 

regarding the exercise of its enforcement discretion in response to excess emissions. 

22 

Finally, on January 18,2007, EPA added 1,1,1,2,2,3,4,5,5,5-decafluoro-3-methoxy-4­

trifluoromethyl-pentane (also known as HFE-7300) to the list of compoundsI

3 which are excluded 

from the definition ofVOC on the basis that these compounds make a negligible contribution to 

tropospheric ozone fonnation (72 FR 2193 - 2196). Exempting HFE-7300 from the definition of 

VOC in OAR 340-200-0020 is consistent with Federal regulations . 

. 2. Rule Revisions in the March 17,2009, SIP Submittal 

The Stationary Source PSEL rule (OAR chapter 340, division 222) sets limits on emissions 

ofspecified regulated air pollutants. The primary purpose of establishing a PSEL is to assure 

compliance with ambient air standards and PSD increments, which regulate criteria pollutants 

(i.e., particulate matter, ground-level ozone, carbon monoxide, sulfur oxides, nitrogen oxides, 

and lead). 

The March 17, 2009, SIP submittal exempts pollut~nts regulated by the Accidental 

Release Prevention rules and the Early Reduction High Risk Pollutant rules from regulation 

under the PSEL rule. These pollutants were erroneously included in ODEQ's previous rule and 

have subsequently been removed. The Accidental Release Prevention rule (OAR-244-0230) was 

established to require businesses storing large quantities ofhazardous materials to have a Risk 

Management Plan to prevent the accidental release of those regulated substances. The Early 

Reduction High Risk Pollutants rules (OAR 340-244-0120) are used to allow a source to make 

early voluntary emission reductions oflisted chemicals in order to be allowed greater flexibility 

13 See 40 CFR 51.1 OO(s). 

23 
later when complying with new Federal regulations. These programs are not implemented 

through the PSEL rule and do not depend on that rule for implementation. 

3. Rule Revisions in the June 23,2010, SIP Submittal 

Sections 11O(a)(I) and (2) of the Federal CAA requires States to submit changes to SIP 

interstate transport provisions to EPA for approval. The rule revisions submitted to EPA on June 

23,2010, are needed to update Oregon's SIP and meet EPA infrastructure requirements. The SIP 

submittal covers revisions to OAR chapter 340, divisions 200, 202, 204, and 206. 

These rule revisions include provisions necessary to address changes to the NAAQS for 

PM2.5, ozone and lead. Specifically these revisions add PM2.5 to the list ofregulated air 

pollutants so that Oregon no longer needs to rely on a surrogacy policy; include PM2.5 thresholds 

for significant harm, PM2.5 levels for triggering alerts, warnings, and emergencies (developed by 

ODEQ pursuant to the requirements of40 CFR 51.151); include PM2.5 non-attainment area 

boundary descriptions for the cities ofKlamath Falls and Oakridge; and, in accordance with EPA 

regulations, exempt dimethyl carbonate and propylene carbonate from the definition ofVOC. 

On February 20,2009, EPA added dimethyl carbonate and propylene carbonate to the list of 

compounds (40 CFR 51.100(s)) which are excluded from the definition ofVOC on the basis that 

these compounds make a negligible contribution to tropospheric ozone formation (74 FR 3437­

3441). Exempting dimethyl carbonate and propylene carbonate from the definition ofVOC in OAR 

340-200-0020 will make Oregon rule consistent with Federal regulations. 

24 

E. Significant Changes to Oregon's SIP 

The docket to today's proposed action includes a technical support document which 

describes in more detail the substantive changes to the Oregon rules that have been submitted by 

ODEQ as revisions to the SIP, EPA's evaluation ofthe changes, and the basis for EPA's action. 

A summary of significant regulatory changes proposed for incOIporation into the SIP 

under today's proposal are provided below. 

DIVISION 200 GENERAL AIR POLLUTION PROCEDURES AND DEFINITIONS 

This division includes ODEQ's general air quality definitions (rule 0020), a list of 

abbreviations and acronyms (rule 0025), general exceptions (rule 0030), provisions for 

compliance schedules (rule 0050), and rules for conflicts ofinterest and makeup of boards (rules 

0100 to 0120). 

ODEQ has revised the method ofsetting the starting emission level, or netting basis, for 

counting emission changes for new and expanding facilities when they are initially permitted. 

Under the current SIP, to ensure that Oregon's NSRJPSD program is protective, companies are 

required to evaluate the air quality effects that would occur if a new or expanded facility 

operated at its capacity. Once this level is approved, it is added to a facility's netting basis even 

though the facility may never actually operate at that level. This unrealistically high starting 

emission level could allow a future expansion to avoid NSRJPSD. To prevent this, ODEQ has 

added a process to reset the netting basis once a new or expanded facility has been operating for 

25 

up to 10 or 15 years to establish a realistic level. This applies to major OHO sources that were 

permitted but not yet operating before the OHO rules were adopted and to future NSRlPSD 

sources. The process will not limit the ability of a facility to operate permitted equipment, but 

will prevent use ofthe added netting basis until the level is reset. 

General Definitions 340-200-0020 

Actual emissions - The rule revision adds provisions in definition of actual emissions for sources 

that had not begun normal operation during the baseline period but were approved or permitted 

to construct and operate. Oregon revised its major source permitting program by reducing the 

netting basis from potential to emit (PTE) down to the highest actual emissions at the end ofthe 

baseline period for sources approved under division 224. This will be required before any future 

netting can take place and will prevent sources from netting out ofNSRlPSD. Sources that 

reduce actual emissions because ofvoluntary controls will not lose that portion ofthe netting 

basis. This reduction will not affect the PSEL so sources with NSRlPSD permits will be able to 

utilize permitted emission units up to their permitted PTE without going through NSRlPSD 

again. ODEQ also revised its major source permitting program by reducing the netting basis 

from PTE down to the highest actual emissions in the last 10 years since the date of permit 

issuance for sources permitted under division 224 (Major NSR which includes PSD). 

The revision to the definition of actual emissions also adds 1) a provision for sources that 

had not begun normal operation but were permitted under division 224 to reset actual emissions, 

2) a provision to reduce PTE to actual emissions for sources that had not begun normal 

operations but were permitted to construct and operate under division 224,3) a provision to 

26 

reduce PTE to actual emissions for sources permitted under division 224 or approved under 

division 210 (Stationary Source Notification Requirements) after the baseline period, and 4) adds 

aggregate insignificant emissions threshold for PM2.5 in PM2.5 nonattainment areas. This makes 

PM2.5 consistent with the PM 10 threshold, which is 5% of the significant emission rate (SER) of 5 

tons in Medford and other non attainment areas in older rules. 

Aggregate insignificant emissions - The revision to the definition of aggregate insignificant 

emissions adds an emissions threshold for GHG. The de minimis level for GHG is set at the State 

of Oregon GHG reporting threshold (2,756 tons C02e). 

Baseline Emission Rate - The revised definition for baseline emission rate does not include a 

specific rate for PM2.5 because PM2.5 will be ratioed to PMIO for both netting basis and PSEL. 

The revised definition includes a baseline emission rate for GHG with the first permit action 

after July 1, 2011, since that is when GHG sources are required to get permits for GHGs alone. 

The revised definition further adds a provision for recalculating the baseline emission rate 

if actual emissions are reset in accordance with the definition of actual emissions. The revised 

definition also adds a provision for freezing only the production basis used to establish the 

baseline emission rate, not the entire baseline emission rate. 

Biomass - The revised rule adds a definition ofbiomass and defers carbon dioxide (C02) 

emissions from biomass in accordance with EPA's July 2011 deferral. The application ofthe 

27 

PSD and title V permitting requirements to C02 emissions from bioenergy and other biogenic 

stationary sources has been deferred for a period of 3 years. 

Criteria Pollutant - The revised rule adds PM2.5 to the definition of criteria pollutant. 

Federal Major Source - The revised rule adds a GHG threshold of 100,qOO tons C02e per year 

to definition ofFederal Major Source consistent with EPA's GHG Tailoring Rule and includes 

fugitive emissions in the definition ofmajor modification. This inclusion clarifies that fugitive 

emissions must be included in the major NSR applicability. The GHG threshold in 340-200­

0020(55) is consistent with the requirements in the GHG Tailoring Rule. 

Major Modification - The definition ofmajor modification has been revised. The revised 

definition adds a provision stating that major modifications for precursors are also major 

modifications for ozone and PM2.s. This revision aligns the definition with EPA rules. The 

revised definition also specifies 1) that a major modification is triggered if the PSEL exceeds the 

netting basis, 2) the type of accumulation ofphysical changes and changes in operation that 

trigger a major modification, 3) that fugitive emissions must be included in the major NSR 

applicability, 4) that emissions increases from the increased use of equipment permitted or 

approved to construct are not included in major modification applicability, and 5) when sources 

would trigger NSR with only a 1 ton/year increase. 

The revised definition ofmajor modification also states that the portion of the netting 

basis and PSEL that was based on PTE because the source had not bebrun normal operations must 

28 

be excluded from major modification applicability until it is reset and deletes the exception for 

PCPs that has been removed from Federal regulations. 

Major Source - The revised major source definition states that fugitive emissions must be 

included in determining whether or not a source is considered major. The revised definition also 

indicates that PTE calculations must include emissions increases due to the new or modified 

source. 

Netting Basis - The revised netting basis definition states that the initial netting basis and PSEL 

for PM25 and GHG will be established with the first permitting action issued after July 1,2011, 

provided the permitting action involved a public notice period that began after July 1, 2011 (i.e., 

when major GHG sources will be required to obtain permits). 

The revised definition also adds a provision that the initial netting basis and PSEL for 

PM2.5 will be the PM2.5 fraction ofthe PMIO netting basis and PSEL. ODEQ treats PM2.5 and 

PM10 in a comparable manner since PM2.5 is a subset ofPMIO, which is a pollutant already 

addressed by the existing permitting rules. As a result, a facility's PM2.5 fraction will be 

determined and used to calculate permitted levels for PM2.5. This approach incorporates PM2.5 at 

this time as ifit had been part ofthe program all along; allowing previously approved expansions 

to continue to operate and new expansions to be reviewed consistent with State and Federal 

requirements. It also avoids the need to select a unique baseline period for counting changes in 

PM2.5 emissions towards triggering NSRlPSD. Because the PM 10 SER is 15 tons/year and the 

PM2.5 SER is 10 tons/year, sources could retroactively trigger the PM2.5 SER because ofpast 

29 

approved increases in PMIO. As a result, ODEQ may conduct a one time 5 ton true up to 

eliminate this possibility. 

The revised definition also sets the initial source-specific PSEL for a source with a PTE 

greater than or equal to the SER to be equal to the PM2.5 fraction ofthe PMIO PSEL. The 

revision further clarifies when the netting basis is zero and when changes to the netting basis are 

effective and adds a provision to reduce the netting basis from PTE for sources permitted under 

OAR 340-224 (Major NSR) after the baseline period. 

Opacity and Source Test The reference to Director's discretion to allow alternatives to 

emission limits, testing or monitoring methods in Federal rules or the SIP without prior EPA 

approval has been deleted from the definitions of opacity and source test. 

PM2.5 - The revised PM2.5 definition adds EPA's new reference test methods and adds a 

provision for PM2.5 precursors. This definition is consistent with EPA's rules for purposes of 

title V and NSR. 

Regulated Pollutant The revised definition for regulated pollutant includes precursors and 

GHGs and clarifies that only regulated pollutants with significant emissions are subject to NSR. 

The revised definitions discussed above are consistent with the EPA definition in 40 CFR 

51. 165(a)(1) and 51.166(b). 

Exceptions 340-200-0030 

30 
The rule was revised to clarify that the statutory exemption for agricultural operations 

and equipment do not apply to the extent necessary to implement the CAA. This allows 

agricultural operations and equipment to be regulated as necessary in Oregon to meet CAA 

requirements. 

Division 200 Tables 

The Significant Air Quality Impact, Significant Emission Rates, De minimis Emission 

Levels, and Generic PSEL tables (Tables 1 through 5) in division have also been revised. The 

tables add: 1) EPA-adopted PM2.5 significant impact levels; 2) EPA-adopted SERs for GHG, 

direct PM2.5, PM2.5 precursors and VOC precursors; 3) de minimis levels for GHG, for PM2.5 in 

the Medford AQMA, and for direct PM2.5; and 4) a generic PSEL for PM2.5 and GHG. The de 

minimis level for GHG has been set at the State of Oregon GHG reporting threshold. The de 

minimis levels for PM2.5 are consistent with PMIO and the generic PSEL for GHG is based on 

proposed SER minus 1000 tpy. In addition, the generic PSEL for PM2.5 is based on the proposed 

SER minus 1 tpy, consistent with other criteria pollutants. 

DIVISION 202 AMBIENT AIR QUALITY STANDARDS AND PSD INCREMENTS 

This division contains the State ambient air quality standards and the PSD increments. 

Definitions 340-202-0010 

31 
Baseline Calculation - The revised definition clarifies that actual emission increases from any 

source or modification (not just major sources and major modifications) on which construction 

commenced after January 6,1975, cannot be included in the baseline calculation. It also adds the 

baseline concentration for PMIO in the Medford-Ashland AQMA from the definition in division 

225 (Air Quality Analysis Requirements) and the baseline concentration year for PM2.5 that is 

set on the year when ambient monitoring was done and when the increment was proposed. 

Ambient Air Quality Standards for Suspended Particulate Matter 340-202-0060, Ozone 

340-202-0090 and Lead 340-202-0130 

The revised rules update the Oregon's ambient air quality standards to be consistent with 

Federal NAAQS by adding the 2006 annual average and 24-hour Federal standards for PM2.5, the 

2008 8-hour Federal standard for ozone and the 2010 one-hour Federal standard for lead. 

DIVISION 204 DESIGNATION OF AIR QUALITY AREAS 

This division identifies the carbon monoxide, PMIO, and ozone nonattainment areas in the 

State ofOregon. 

Designation of N onattainment Areas 340-204-0030 

32 

The rule was revised to add two PM2.5 non attainment areas, Klamath Falls and Oakridge, 

that were designated by EPA to not be in attainment ofthe 2006 24-hour PM2.5 NAAQS (74 FR 

58688, November 13, 2009). 

DIVISION 206 AIR POLLUTION EMERGENCIES 

This division establishes criteria for identifying and declaring air pollution episodes at 

levels below the level of significant harm. The division was revised to add a significant harm 

level for PM2.5 of350.5 Jig/m3 (24-hour average), an air pollutant alert level for PM2.5 of 140.5 

Jig/m3 (24-hour average), an air pollution warning level of210.5 !lg/m3 (24-hour average) for 

PM.2.5, and an air pollutant emergency level of280.5 Jig/m3 (2-hour average) for PM2.5. 

DIVISION 214 STATIONARY SOURCE REPORTING REQUIREMENTS 

This division contains ODEQ's provisions for reporting and recordkeeping, information 

requests (section 114 authority), credible evidence, business confidentiality, emission statements, 

and excess emissions. 

Excess Emissions and Emergency Provisions 340-214-0300 through 0360 (Formally in 

Division 28) 

The applicability of the Excess Emissions and Emergency Provisions rule has been 

revised to align with EPA policy regarding applicability, planned start-up and shutdown, 

schedule maintenance, other excess emissions, enforcement action criteria, and affirmative 

33 

defense by clarifying that the affinnative defense of emergency does not take away ODEQ's 

enforcement discretion, but is relevant when evaluating a violation to detennine the level of 

penalty. It also clarifies that excess emission reports must include whether a source followed 

approved procedures for startup, shutdown or maintenance activity when applicable and 

consolidates and further describes criteria for demonstrating emergency as an affinnative 

defense. The rule revisions are consistent with EPA policy as specified in 1999 memorandum by 

DIVISION 216 AIR CONTAMINANT DISCHARGE PERMITS 

This division is the ODEQ federally-enforceable State Operating Pennit program, and is 

also the administrative pennit mechanism used to implement the notice of construction and 

major NSR programs. 

The revisions to the rules in division 216 clarify that facilities with ACDPs may not be 

operated if the pennit expires or is tenninated, unless a timely renewal application has been 

submitted or another type ofpennit has been issued. The revisions also clarify that for facilities 

with title V or ACDPs, requirements established in preceding pennits remain in effect unless 

specifically modified or tenninated. 

14 Memorandum from Steven A. Herman entitled "State Implementation Plans: Policy Regarding Excess Emissions 

During Malfunctions, Startup, and Shutdown, September 20, 1999. 

34 

In addition, the following unused Basic PelTIlit categories currently in the Oregon SIP 

have been deleted from this rule and, following this action, are proposed to be removed from the 

SIP: 

1) Wood Furniture and Fixtures more than 5,000 but less than 25,000 board 

feet/maximum 8 hour input 

2) Flour, Blended and/or Prepared and Associated Grain Elevators more than 2,000 

but less than 10,000 tons per year throughput. 

3) Grain Elevators used for intelTIlediate storage more than 1,000 but less than 

10,000 tons/year throughput. 

4) Millwork (including kitchen cabinets and structural wood members) more than 

5,000 but less than 25,000 bd. ft.lmaximum 8 hour input. 

5) Non-Ferrous Metal Foundries more than one ton/yr. but less than 100 tons/yr. of 

metal charged. 

6) Pesticide Manufacturing more than 1,000 tons/yr. but less than 5,000 tons/yr. 

7) Sawmills and/or Planing Mills more than 5,000 but less than 25,000 board 

feet/maximum 8 hour finished product. 

8) Seed Cleaning and Associated Grain Elevators more than 1,000 but less than 

5,000 tons per year throughput. 

9) Bakeries, Commercial baking more than 500 tons of dough per year. 

10) Cereal Preparations and Associated Grain Elevators more than 2,000 but less than 

10,000 tons per year throughput. 

35 

11) Coffee Roasters roasting more than 6 tons coffee beans in a year, but less than 30 

tons/yr. 

In 2001, ODEQ instituted 19 Basic Permit categories to track small air emission sources. 

ODEQ intended that basic permits function as a registration, or means to track sources with 

potential to grow or require a different type ofpermit and to trigger control requirements. The 

purpose was to anticipate emission increases and reduce potential for source violations. Because 

no basic permits have been issued in the above categories, removing these categories does not 

result in termination of any existing permits. A general provision in the ODEQ's ACDP rules 

(division 216) ensures that any facility with significant emissions is regulated through a permit. 

The rule revision also delegates authority to Lane Regional Air Protection Agency to 

implement ACDP and Oregon title V operating permit programs for regulation ofPM2.5 and 

GHG within its area ofjurisdiction. It also adds: 1) PM2.5 and GHGs to pollutant-based source 

categories requiring ACDPs, 2) a 5 ton PM2.5 threshold for requiring a permit in nonattainment 

areas to provide more protection for the area through source surveillance, and 3) a 100,000 ton 

GHG C02e threshold for GHG permitting, consistent with the GHG tailoring rule. These rule 

revisions are proposed for approval into the SIP. 

DIVISION 224 MAJOR NEW SOURCE REVIEW 

This division contains the ODEQ major source permit to construct programs as required 

by title J, parts C and D ofthe Act. It requires an ACDP prior to beginning construction on a 

new major source or major modification 

36 
This division applies to new major sources and major modifications and requires that no 

owner or operator begin actual construction without first having received an ACDP and having 

satisfied the requirements of division 224. 

The division includes the procedural requirements for the NSR program, including 

specifying the information that must be submitted in a permit application, the time period for 

which the approval to construct is valid, the obligation to comply with all applicable 

requirements, and the time period that the new or modified source can operate without applying 

for a title V operating permit, and when a title V operating permit must be revised before 

commencing construction or operation. The division also includes the procedures for processing 

permit applications. 

The division also includes the substantive requirements which must be met for approval 

of a new major source or major modification. These include the requirement that the owner or 

operator must demonstrate the ability ofthe source to comply with all applicable requirements. 

ODEQ's major source permit to construct program as revised in division 224 complies with 

EPA's requirements in 40 CFR 51.165 through 51.166 and ensures that new and modified major 

37 

sources will not cause or contribute to violations of any NAAQS. Therefore, EPA proposes to 

approve these provisions into the Oregon SIP. 

Applicability and General Prohibitions 340-224-0010 

The rule revision clarifies that division 224 (Major NSR) applies to the regulated 

pollutant for which the area is designated non attainment or maintenance within nonattainment 

and maintenance areas, as well as to the regulated pollutant for which the area is designated 

attainment or unclassified within attainment and unclassifiable areas. It also adds applicability 

requirements for GHG PSD permitting ofsources that have already triggered NSR/PSD for other 

pollutants and that are major for GHGs and trigger PSD. This is consistent with EPA's Tailoring 

Rule for purposes oftitle V and PSD. 

Requirements for Sources in Nonattainment Areas 340-224-0050 

The rule revision adds requirements for PM2.5 precursors to sources in designated PM2.5 

nonattainment areas (Le., Oakridge and Klamath Falls). It also clarifies that LAER applies to 

each emissions unit that emits the nonattainment pollutant or precursor not included in the most 

38 

recent netting basis or included in the most recent netting basis but has been modified to increase 

actual emissions. 

Requirements for Sources in Maintenance Areas 340-224-0060 

The rule revision adds precursors to the list of pollutants subject to BACT in maintenance 

areas. It clarifies that BACT applies to each emissions unit that emits the maintenance pollutant 

or precursor not included in the most recent netting basis or included in the most recent netting 

basis but has been modified to increase actual emissions. 

Prevention of Significant Deterioration Requirements in Attainment or Unclassified Areas 

340-224-0070 

The rule revision: 1) adds precursors to the BACT requirement, 2) clarifies that BACT 

applies to each emissions unit that emits the nonattainment pollutant or precursor not included in 

the most recent netting basis, or is included in the most recent netting basis but has been 

modified to increase actual emissions, 3) indicates that the required air quality analysis is for the 

pollutant with increases above the SER over the netting basis, and 4) adds a provision that 

increases above the SER for direct PM2.5 or PM2.5 precursors also trigger an analysis ofPM2.5. 

39 

DIVISION 225 AIR QUALITY ANALYSIS REQUIREMENTS 

This division contains all ofthe modeling, monitoring, impact analysis, and net air 

quality benefit requirements that are necessary to ensure ambient air quality requirements are 

met in the permitting process. The division also includes provisions which specify the technical 

information and processes to be used in air quality impact analyses. 

The provisions for demonstrating net air quality benefit in the revisions to division 225 

comply with the CAA and EPA's requirements for emission offsets (section 173 ofthe Act, 40 

CFR 5 1. 1 65(a) and 40 CFR part 51, appendix S, Emission Offset Interpretative Ruling). EPA is 

therefore proposing to approve these provisions as complying with part D ofthe CAA. 

Definitions 340-225-0020 

Baseline Concentration - The revised baseline concentration definition adds a baseline 

concentration year of2007 for PM2.5 consistent with EPA regulations. The definition ofbaseline 

concentration is consistent with EPA's definitions in 40 CFR 51.1 65(a) and 51.166(b). 

40 

Requirements for Analysis and Demonstrating Compliance in Maintenance Areas 340-225­

0045 and PSD Class I, II and III Areas 340-225-0050 and 0060 

The rule revisions clarify that a single source impact analysis is sufficient to show 

compliance with standards and increments for only the pollutants that trigger PSD, and that a 

single source impact analysis is for emission increases equal to or greater than a significant 

emission rate above the netting basis due to the proposed source or modification. The revisions 

also add a PM2.5 significant monitoring concentration of 4 jlg/m3 

as specified in EPA's PM2.5 

NSRJPSD implementing rule for use in determining the need for preconstruction monitoring of a 

proposed source or modification in a PSD Class II and III area 

Requirements for Demonstrating a Net Air Quality Benefit 340-225-0090 

The rule revision adds PM2.5to the list ofpollutants for non-ozone areas and adds PM2.5 

precursor, S02 and NOK offset ratios for non-ozone areas. These offset ratios are based on levels 

established by EPA. The revision also indicates that precursor emissions can be used to offset 

direct PM2.5 and vice versa. We are taking no action on these interpollutant offset ratios for 

PM2.5 at this time to give Oregon time to provide a demonstration that these interpollutant offset 

41 

ratios are NAAQS protective in Oregon or alternatively revise these ratios in accordance with the 

July 21,2011, memorandum by EPA that revises the Federal interpollutant offset policy. IS 

The rule revision further adds an alternative provision for small scale local energy 

projects (and related infrastructure) located in nonattainment and maintenance areas indicating 

that the net air quality benefit requirement is satisfied ifthe nonattainrnent or maintenance 

pollutant emissions are offset using the offset ratios specified in this rule, provided that the 

proposed major source or major modification does not cause or contribute to a violation ofthe 

NAAQS or otherwise pose a material threat to compliance with air quality standards in the 

non attainment area. The State ofOregon House Bill 2952 amended ORS 468A.040 to add an 

exception for small scale local energy projects regarding net air quality benefit. 

DIVISION 228 REQUIREMENTS FOR FUEL BURNING EQUIPMENT AND FUEL 

SULFUR CONTENT 

l5 In a memorandum from Gina McCarthy, EPA Assistant Administrator, entitled "Revised Policy to Address 

Reconsideration ofInterpollutant Trading Provisions for Fine Particles (PM25),"July, 21, 2011 , EPA revised its 

policy originally set forth in the 2008 PM2,5 New Source Review Implementations Rule (the 2008 fmal rule, 73 FR 

28321,) concerning the development and adoption of interpollutant trading (offset) provisions for PM2.5 under state 

nonattainment area NSR programs for PM2.5. As a result ofour reconsideration of the policy, EPA no longer 

supports the ratios provided in the preamble to the 2008 final rule as presumptively approvable ratios for adoption in 

SIPs containing nonattainment NSR programs for PM2.

5. This revised policy does not affect the EPA rule 

provisions that allow states to adopt as part of their nonattainment NSR programs for PM2.5appropriately supported 

interpollutant offset provisions involving PM2,5 precursors. 

42 
This division provides sulfur content of fuel requirements and general emission standards 

for fuel burning equipment. 

Sulfur Dioxide Standards 340-228-0200 

To be consistent with Federal emission standards and the reference source test method, 

the averaging time for sulfur dioxide emission standards for fuel-burning equipment in this rule 

has been changed from two hours to three hours. As part of their June 23,2010, SIP submittal, 

ODEQ provided a demonstration that this rule change will have no discern able effect on the air 

quality or on the stringency of their revised emission standard. EPA has reviewed ODEQ's 

demonstration and has determined that the revised rule will not interfere with the attainment or 

maintenance of the NAAQS for sulfur dioxide. Therefore, EPA proposes to approve these 

regulations. 

DIVISION 234 EMISSION STANDARDS FOR WOOD PRODUCTS INDUSTRIES 

The division establishes emission standards and monitoring and reporting requirements 

for wigwam waste burners, kraft pulp mills, neutral sulfite semi-chemical (NSSC) pulp mills, 

sulfite pulp mills, and board products industries (veneer, plywood, particleboard, hardboard). 

Definitions 340-234-0010 

43 

Wigwam Waste Burner - The definition ofwigwam waste burner has been revised. The outdated 

regulations governing the use of wigwam waste burners have been deleted and a prohibition 

statewide has been added. 

III. EPA's Proposed Action 

Consistent with the discussion above, EPA proposes to approve most ofthe submitted 

SIP provisions and to take no action on certain other provisions, as discussed below. This action 

will result in proposed changes to the Oregon SIP in 40 CFR part 52, subpart MM. 

A. Rules to Approve into SIP 

EPA proposes to approve into the Oregon SIP at 40 CFR part 52, subpart MM, the 

following revisions to chapter 340 ofthe OAR listed in Table 2. It is important to note that in 

those instances where ODEQ submitted multiple revisions to a single rule of chapter 340 ofthe 

OAR, the most recent version of that rule (based on State effective date) is proposed to be 

incorporated into the SIP since it supersedes all previous revisions. 

Table 2.

.ODEQ ReguI.. fIons f:or ProposedA pprovaI 


State 
 TitlelSubject State Explanation 

Citation Effective Date 

OAR 340-200 - General Air Pollution Procedures and Definition 

0010 Purpose and Applicability 11/8/2007 

0020 General Air Qualit~ Definitions 1511120 ii 

0025 Abbreviations and Acronyms 011 

0030 Exceptions 9117/2008 

OAR 340-202 - Ambient Air Quality Standards and PSD Increments 

0010 Definitions 5/1/2011 

44 


I 
0060 Suspended Particulate Matter 5/112011 

0090 Ozone 512112010 

0130 Ambient Air Quality Standard for 

Lead 

512112010 

0 Ambient Air Increments 5/1/2011 

OAR 340-204 - Designation of Air Quality Areas 

0010 Definitions 5/2112010 

0030 Designation ofNonattainment 

Areas 

5/2112010 

OAR 340-206 - Air Pollution Emergencies 

0010 Introduction 512112010 

0030 Episode Stage Criteria for Air 

Pollution Emergencies 

5/21/2010 

OAR 340-208 - Visible Emissions and Nuisance Requirements 

0010 Definitions 11/8/2007 

0100 Visible Emissions, Applicability 111812007 

0110 Visible Air Contaminant 

Limitations 

1118/2007 

0200 Fugitive Emission Requirements, 

Applicability 

111812007 

0210 Fugitive Emission Requirements, 

Requirements 

111812007 

OAR 340-209 - Public Participation 

0040 Public Notice Information 1118/2007 

0070 

i 

Hearings and Meeting 

Procedures 

1118/2007 

0080 Issuance or Denial of a Permit 11/8/2007 

OAR 340-210 - Notice of Construction and Approval of Plans 

0205 Applicability 9/17/2008 

OAR 340-214 - Stationary Source Reportin2 Requirements 

0010 Definitions 11/812007 

0300 

(Formally 

OAR340-28­

1400) 

Purpose and Applicability 

, 

111812007 

0310 

(Formally 

OAR340-28­

1410) 

Planned Startup and Shutdown 1118/2007 

0320 

! (Formally 

I OAR340-28­

Scheduled Maintenance 111812007 

45 

1420) 

0330 

(Fonnally 

OAR340-28­

1430) 

Upsets and Breakdowns 11/8/2007 

0340 

(Fonnally 

OAR340-28­

1440) 

Reporting Requirements 11/8/2007 

0350 

(Fonnally 

OAR340-28­

1450) 

Enforcement Action Criteria 11/8/2007 

0360 Emergency as an Affinnative 

Defense 

11/8/2007 

OAR 340-216 - Air Contaminant Discharge Permits 

0020 and 

Table 1 

Applicability 5/1/2011 

0040 Application Requirements 5/1/2011 

0060 General ACDPs 5/1/2011 

0064 Simple ACDPs 5/1/2011 

0082 Tennination or Revocation of an 

ACDP 

11/8/2007 

OAR 340-222 - Stationary Source Plant Site Emission Limits 

0020 Applicability 8/29/2008 

OAR 340-224 Major New Source Review 

0010 Applicability and General 

Prohibitions 

5/1/2011 

0050 Requirements for Sources in 

Nonattainment Areas 

5/1/2011 

0060 Requirements for Sources in 

Maintenance Areas 

5/1/2011 

0070 Prevention of Significant 

Deterioration Requirements for 

Sources in Attainment or 

Unclassified Areas 

5/1/2011 

OAR 340-225 - Air Qualit) Analysis Requirements 

0020 Definitions 5/1/2011 

0030 Procedural Requirements 5/1/2011 

0045 Requirements for Analysis in 

Maintenance Areas 

5/1/2011 

0050 Requirements for Analysis in 

PSD Class II and Class III Areas 

5/1/2011 

46 

I 

I 

0060 Requirements for Demonstrating 511/2011 

Compliance with Standards and 

Increments in PSD Class I Areas 

0090 h i

Requirements for Demonstrating 

a Net Air Quality Benefit 

511/2011 

'rat

EP A is not taking 

action on the 

interpollutant offset 

iosprovided in 

0090(2)(a)(C) 

. OAR 340-228 - Requirements for Fuel Burning Equipment and Fuel Sulfur 

Content 

0020 Definitions 11/812007

0200 Sulfur Dioxide Standards 111812007

0210 Grain Loading Standards 111812007 

OAR 340-232 - Emission Standards for VOC Sources 

0010 Introduction 111812007 

OAR 340-234 - Emission Standards for Wood Products Industries 

Definitions 111812007 


0100 


0010 

Wigwam 1118/2007 ~' 

Waste Burners Statement of 

Policy and Applicability ___--+____.. 

Wigwam 111812007 Rule repealed, . 

Waste Burners - Authorization to remove from SIP 

Operate a Wigwam Burner 

0120 

0110 

Wigwam 111812007 Rule repealed, 

Waste Burners Emission and . remove from SIP 

Operation Standards for 

Wigwam Waste Burners 

0130 Wigwam 111812007 Rule repealed, 

Waste Burners - Monitoring and remove from SIP I I 

Reporting 

0140 Wigwam 1118/2007

I Waste Burners Existing I i Administrative Agency Orders I 

~------~-------- 0210 Kraft Pulp Mills - Emission I 1118/2007 

Limitations I 

Rule repealed, 

Specifications 

i 0230 Kraft Pulp Mills - Plans and 111812007

remove from SIP 

0240 Kraft Pulp Mills Monitoring 111812007

t--_O_25_0_-+-_Kr~a_ft_P:-u-:!,-lp-=-rv1i1ls - Reporting 1118/2007 i 

0260 Kraft Pulp Mills - Upset , 111812007 Rule repealed, I Conditions remove from SIP 

Board Product Industries - 11118/2007 

Applicability and General 

Provisions 

0500 

I 0510 Board Product Industries ­ 111812007 

Veneer and Plywood I 

47 

Manufacturing Operations 

0520 Board Product Industries ­

Particleboard and Manufacturing 

Operations 

11/812007 

0530 Board Product Industries ­

Hardboard Manufacturing 

Operations 

1118/2007 

OAR 340-236 - Emission Standards for Specific Sources 

0010 Definitions 1118/2007 

0410 Hot Asphalt Plants -Control 

Facilities Required 

11/812007 

OAR 340-264 - Rules for Open Burning 

0040 Exemptions, Statewide 9117/2008 

B. Rules on which No Action is Taken 

The following provisions were included in the SIP submittals discussed above. However, 

EPA is not proposing to approve these provisions. 

OAR 340-200-0040 - State of Oregon Clean Air Act Implementation Plan 

OAR 340-215 - Greenhouse Gas Reporting Requirements 

OAR 340-218 (0010, 0020, 0040, 0050, 0120, 0150, 0180, 0190 and 0250) - Oregon Title V 

Operating Permits 

OAR 340-228 - Requirements for Fuel Burning Equipment and Fuel Sulfur Content, Mercury 

Rules (0672 Emission Caps, 0673 Monitoring Requirements for the Hg Emission Standards, 

0676 Heat Input Determinations 0674, 0676 Coal Sampling and Analysis, and 0678 Hg Mass 

Emissions Measurement Prior to Any Control Devices 0678) 

OAR 340-228 - Requirements for Fuel Burning Equipment and Fuel Sulfur Content Federal 

Acid Rain Program (0300) 

48 
OAR 340-230 - Incinerator Regulations 

OAR 340-234-0010 - Standards for Wood Products Industries - EPA is not acting on references 

to total reduced sulfur from smelt dissolving tanks, sewers, drains, categorically insignificant 

activities, and wastewater treatment facilities in the revised definition of other sources. 

IV. Statutory and Executive Order Reviews 

Under the CAA, the Administrator is required to approve a SIP submission that complies 

with the provisions ofthe Act and applicable Federal regulations. 42 U.S.C. 741O(k); 40 CFR 

52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided 

that they meet the criteria ofthe CAA. Accordingly, this proposed action merely approves state 

law as meeting Federal requirements and does not impose additional requirements beyond those 

imposed by state law. For that reason, this proposed action: 

• 	 is not a "significant regulatory action" subject to review by the Office of Management 

and Budget under Executive Order 12866 (58 FR 51735, October 4,1993); 

• 	 does not impose an information collection burden under the provisions of the Paperwork 

Reduction Act (44 U.S.C. 3501 et seq.); 

• 	 is certified as not having a significant economic impact on a substantial number ofsmall 

entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.); 

• 	 does not contain any unfunded mandate or significantly or uniquely affect small 

governments, as described in the Unfunded Mandates Reform Act of 1995 (Public Law 

104-4); 

49 

• 	 does not have Federalism implications as specified in Executive Order 13132 (64 FR 

43255, August 10, 1999); 

• 	 is not an economically significant regulatory action based on health or safety risks subject 

to Executive Order 13045 (62 FR 19885, April 23, 1997); 

• 	 is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, 

May 22,2001); 

• 	 is not subject to requirements of Section 12(d) ofthe National Technology Transfer and 

Advancement Act of 1995 (15 U.S.C. 272 note) because application of those 

requirements would be inconsistent with the CAA; and 

• 	 does not provide EPA with the discretionary authority to address, as appropriate, 

disproportionate human health or environmental effects, using practicable and legally 

permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994). 

In addition, this rule does not have tribal implications as specified by Executive Order 

13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian 

country located in the state, and EPA notes that it will not impose substantial direct costs on 

tribal governments or preempt tribal law . 

List of Subjects in 40 CFR Part 52 

Environmental protection, Air pollution control, Intergovernmental relations, Lead, 

Nitrogen dioxide, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur 

oxides, Volatile organic compounds. 

50 
Dated: -!....j16L..L:.15,=-t-~---L-11_ 

51