1 

Technical Support Document 

Approval and Promulgation of Implementation Plans; Oregon: New Source 

Review / Prevention of Significant Deterioration Rule Revisions and Air 

Quality Permit Streamlining Rule Revisions 

Federal Register Proposal, September 2011 

Docket # EPA-R10-OAR-2011-0767

 A. OCTOBER 10, 2008 SIP SUBMITTAL BY ODEQ

Overview of Rule Revisions

1. General Definitions 

The rule changes relocate several definitions to the General Air Quality Definitions section to 

make it clear that they apply to all air quality rules. Revisions to the definition of “particulate 

matter” improve the cross reference to Oregon Department of Environmental Quality’s 

(ODEQ) Air Quality Source Sampling Manual and specify test methods. 

2. Delisting HFE-7300 as a VOC 

The rule changes add HFE-7300 to the list of compounds exempt from the definition of volatile 

organic compounds (VOC). According to EPA research, this substance has negligible 

reactivity and very low potential to form ground-level ozone or smog. HFE-7300 has a variety 

of potential uses including as a heat-transfer fluid and in coating, cleaning, and lubricating 

applications. 

3. Revisions to make Title V procedural rules consistent with federal Part 70 requirements, and 

improve administration 

EPA is not acting on the Title V permitting rules (OAR 340-218) because Title V permitting 

rules are not part of the SIP. 

4. Revisions to make Excess Emissions rules consistent with federal Part 70 requirements 

In its 2006 Title V Program Review, EPA identified several deficiencies in ODEQ’s Excess 

Emissions rules. Revisions to these rules achieve two main objectives. First, they clarify that 

the affirmative defense of emergency does not take away ODEQ’s enforcement discretion, but 

is relevant when evaluating a violation to determine the level of penalty. Second, the revisions 

consolidate the notification and reporting requirements and the criteria for demonstrating 

emergency as an affirmative defense. The revisions make ODEQ’s rules consistent with 40 

CFR part 70 requirements and also EPA SIP guidance. The EPA SIP guidance is contained in a 
2 

September 20, 1999 memorandum titled “State Implementation Plans: Policy Regarding 

Excess Emissions During Malfunctions, Startup, and Shutdown” from Steven A. Herman, 

Assistant for Enforcement and Compliance Assurance, and Robert Perciasepe, Assistant 

Administrator for Air and Radiation. 

5. Changes to Basic Permit Categories 

The rule changes streamline the Air Contaminant Discharge Permit (ACDP) program by 

eliminating basic permit categories with limited potential for environmental harm. 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 of permit and to trigger control requirements. The purpose 

was to anticipate emission increases and reduce potential for source violations. The existence 

of unused basic permit categories results in lack of clarity about whether various small 

facilities must obtain basic ACDPs. Deleting the unused permit categories eliminates 

confusion and align the rules with current program implementation. To date, ODEQ has only 

issued basic permits to source categories that required ACDPs before the 2001 rulemaking. 

Because no basic permits have been issued in the several categories proposed for repeal, this 

action does not result in termination of any existing permits. A general provision in the ACDP 

rules ensures that any facility with significant emissions is regulated through a permit. OAR 

340-216-0020 Table 1 (B)(75) requires permits for all sources not otherwise listed with 

emissions of five or more tons a year of PM10 in a PM10 non-attainment or maintenance area, or 

10 or more tons of any single criteria pollutant in any part of the state. 

6. Update and Renewal of General Permits for Rock Crushers, Ready Mix Concrete Plants, 

Asphalt Plants, Sawmills/Plywood/Veneer Plants, and Boilers 

ODEQ adopted by reference updates and corrections to several categories of general permits. 

Since these permits were originally issued in 2001, ODEQ has identified various errors in need 

of correction. These changes clarify monitoring, reporting and compliance procedures. 

7. SO2 Averaging 

To align with federal standards, ODEQ changed the averaging time in the sulfur dioxide 

standards for fuel-burning equipment from two to three hours. The averaging time is the period 

during which measurements are taken to determine compliance with a standard. Measurements 

of a pollutant are averaged for comparison to the standard. Currently, some facilities must 

demonstrate compliance with both two and three hour averaging periods. The rule change 

simplifies compliance determinations by eliminating duplicative standards. 

8. Salt Laden Wood Exception 

This rule change adds a requirement that the existing salt laden wood waste exemption is 

applicable only upon prior notice to ODEQ. When burned, salt laden wood has higher 

emissions than “standard” wood. High salt content is caused by floating logs in salt water as a 

means of transportation. While this was a common practice 30 years ago, it is now a rare event. 

9. Utility Mercury Rule Corrections 
3 

EPA is not acting on these mercury rules because the Clean Air Mercury Rule was vacated and 

mercury is not part of the SIP. 

10. Revisions to Incinerator Rules 

Revisions to the incinerator rules clarify and consolidate definitions and clarify the 

requirements for operating crematory incinerators. EPA is not acting on these incinerator rules 

because the rules are covered under section 111(d) of the CAA (Standards of performance for 

existing sources; remaining useful life of source). 

11. Wigwam Prohibition 

Because wigwam waste burners cannot be operated in compliance with other air quality 

regulations, ODEQ repealed outdated regulations governing wigwam burners and prohibit 

their use statewide. These revisions specify that wigwam waste burner emissions not be 

subtracted from the netting basis in rare cases where wigwam burners were actually operated at 

facilities during the baseline period. 

12. Revisions to Kraft Pulp Mill Rules 

ODEQ adopted the Kraft Pulp Mill rules in 1973. Since then, EPA has promulgated New 

Source Performance Standards (NSPS) for Kraft Pulp Mills. Process units at some mills were 

modified after the NSPS applicability date, making those units subject to the NSPS. ODEQ 

revised their Kraft Pulp Mill rules to clarify NSPS requirements that apply to these mills. The 

revisions also simplify permitting and compliance determinations and eliminate unnecessary 

reporting. 

13. Simplified Emission Standards for Plywood, Particleboard and Hardboard Manufacturing 

Operations 

The rule revisions clarify emission requirements for plywood, particleboard and hardboard 

manufacturing facilities by specifying uniform measurements and compliance methods. 

14. Changes to Emission Standards for Specific Industries 

The rule changes consolidate definitions and clarify them for consistency with other divisions. 

Description of Substantive Rule Revisions Submitted October 10, 2008

DIVISION 200 GENERAL AIR POLLUTION PROCEDURES AND DEFINITIONS

This division contains ODEQ’s general air quality definitions (rule 0020), a list of abbreviations 

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

the Oregon SIP (rule 0040), provisions for compliance schedules (rule 0050), and rules for 

conflicts of interest and makeup of boards (rules 0100 to 0120). 

The following is a discussion and evaluation of the noteworthy division changes: 

1) General Definitions 340-200-0020 
4 

Ambient Air - Relocates definition and clarifies exclusion for areas to which the general public has 

no access. 

Opacity - Relocates definitions to the general rto apply to all air quality rules in divisions 200 

through 268. Deletes reference to Director’s discretion to allow alternatives to emission limits, 

testing or monitoring methods in federal rules or the State Implementation Plan without prior EPA 

approval. 

Particulate Matter - Clarifies cross reference to Source Sampling Manual, clarifies test methods. 

Source Test - Deletes reference to Director’s discretion to allow alternatives to emission limits, 

testing or monitoring methods in federal rules or the State Implementation Plan without EPA 

approval. 

Volatile Organic Compounds - Delists HFE-7300 as a VOC and adds HFE-7300 to the list of 

volatile organic compounds that are not subject to regulation as ozone forming compounds 

because of a very low tendency to react with sunlight to form ozone. 

DIVISION 208 VISIBLE EMISSIONS AND NUISANCE REQUIREMENTS

This division (currently not in the SIP) contains the visible and fugitive emission, and nuisance 

control requirements for Oregon. On November 5, 1999, ODEQ submitted a complete rule 

renumbering to EPA for approval. On January 22, 2003 (68 FR 2891), EPA 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) of division 208 into the Oregon SIP which will replace division 21, 

rules 015, 050, 055, and 060. 

DIVISION 209 PUBLIC PARTICIPATION. 

This division contains the public participation procedures and requirements for issuing permits. 

The permitting program rules assign permit actions to the appropriate public participation 

procedures established in this division. 

1) Public Notice Information 340-209-0040 and Issuance or Denial of a Permit 340-209-0080 

Adds that public notices of proposed air contaminant discharge permit and Title V permit actions 

will include a description of procedures for making comments and requesting hearings. For added 

clarity, moves procedures for responding to comments and taking action on Title V Permits into 

the rule section on Issuance or Denial of a Permit. 

DIVISION 214 STATIONARY SOURCE REPORTING REQUIREMENTS
5 

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

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

excess emissions. 

The following is a discussion and evaluation of the noteworthy division changes in the definitions 

and excess emission subsections: 

1) Definitions 340-214-0010 

Clarifies that a “Large Source” is a facility required to maintain a Title V Permit, and a “Small 

Source” is a facility required to maintain an ACDP. 

2) Excess Emissions and Emergency Provisions 340-214-0300 

Broadens applicability of the Excess Emissions rule to include excess emissions caused by reasons 

other than those enumerated in the rule. Aligns language in applicability, planned start-up and 

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

affirmative defense subsections with federal requirements by clarifying that the affirmative 

defense of emergency does not take away ODEQ’s enforcement discretion, but is relevant when 

evaluating a violation to determine the level of penalty. Consolidates notification requirements for 

excess emissions not addressed by planned startup and shutdown, scheduled maintenance or 

emergencies, in the All Other Excess Emissions section. Clarifies that excess emission report 

must include whether a source followed approved procedures for startup, shutdown or 

maintenance activity when applicable. Consolidates and further describes criteria for 

demonstrating emergency as an affirmative defense. 

DIVISION 216 AIR CONTAMINANT DISCHARGE PERMITS

This division is the ODEQ federally-enforceable State operating permit (FESOP) program , and is 

also the administrative permit mechanism used to implement the notice of construction and major 

new source review programs. 

Clarifies 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. 

Clarifies that for facilities with Title V or ACDPs, requirements established in preceding permits 

remain in effect unless specifically modified or terminated. 

Table 1 - To streamline permitting procedures, clarifies which facilities must obtain basic permits 

and update rules to current practices, deletes the following unused Basic Permit categories: 

- Wood Furniture and Fixtures more than 5,000 but less than 25,000 board feet/maximum 8 hour 

input 

- Flour, Blended and/or Prepared and Associated Grain Elevators more than 2,000 but less than 

10,000 tons per year throughput. 

- Grain Elevators used for intermediate storage more than 1,000 but less than 10,000 tons/year 

throughput. 
6 

- Gray iron and steel foundries, malleable iron foundries, steel investment foundries, steel 

foundries more than one ton/yr. but less than 100 tons/yr. metal charged (not elsewhere identified). 

Note that this source category is not in the current SIP and is only being deleted from the current 

version of OAR 340-216. 

- Millwork (including kitchen cabinets and structural wood members) more than 5,000 but less 

than 25,000 bd. ft./maximum 8 hour input. 

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

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

- Sawmills and/or Planing Mills more than 5,000 but less than 25,000 board feet/maximum 8 hour 

finished product. 

- Seed Cleaning and Associated Grain Elevators more than 1,000 but less than 5000 tons per year 

throughput. 

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

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

per year throughput. 

- Coffee Roasters roasting more than 6 tons coffee beans in a year, but less than 30 tons/yr. 

DIVISION 218 OREGON TITLE V OPERATING PERMITS

Since this division establishes a program to implement Title V operating permits, it is not part of 

Oregon’s SIP. As such, EPA is taking no action on the rule revisions submitted for division 218. 

DIVISION 228 REQUIREMENTS FOR FUEL BURNING EQUIPMENT AND FUEL 

SULFUR CONTENT 

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

for fuel burning equipments. 

1) Sulfur Dioxide Standards 340-228-0200 

To match federal standards, changes the averaging time for sulfur dioxide standards for 

fuel-burning equipment 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 discernable 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. 

2) Grain Loading Standards 340-228-0210 

Adds requirement for notice to ODEQ prior to using an existing exemption allowing a higher 

emission rate for burning salt laden wood waste. 

3) Utility Mercury Rule Corrections 
7 

EPA is not taking action on the revised utility mercury budgets included in the October 10, 2008 

SIP submittal by Oregon since the Clean Air Mercury Rule was vacated and these provisions have 

been previously removed from this division. 

DIVISION 230 INCINERATOR REGULATIONS 

1) Definitions 340-230-0030 

Deletes “fugitive emissions”, “opacity” and “particulate matter” definitions because they are 

addressed in the General Definitions, division 200. Clarifies the “pyrolysis” definition by deleting 

references to hospital or medical waste. 

2) Crematory Incinerators 340-230-0200 

Simplifies the opacity standard for crematory incinerators by changing it from an aggregate 

measurement of 6 minutes in 60 minutes to a 6 minute period. Clarifies crematory operating 

requirements for units built before and after March 13, 1993. For continuity of recordkeeping, 

increases from one to two years the requirement to maintain crematory temperature monitoring 

records. Clarifies compliance demonstration requirements by describing specific source test 

procedures and citations. 

EPA is not acting on these rules because incinerator regulations are not part of the SIP. 

DIVISION 234 EMISSION STANDARDS FOR WOOD PRODUCTS INDUSTRIES 

1) Definitions 340-234-0010 

Deletes outdated regulations governing the use of Wigwam Waste Burners and adds a prohibition 

statewide (340-234-0100 through 0140). Addresses rare historic cases in which wigwam 

emissions have been included in a source’s netting basis by specifying that these emissions shall 

not be subtracted from the netting basis. Deletes reference to Director’s discretion in the definition 

of daily arithmetric average to allow alternatives to emission limits, testing or monitoring methods 

in federal rules or the State Implementation Plan without prior EPA approval. 

Adds additional exemptions for smelt dissolving tanks, sewers, drains, categorically insignificant 

activities, and wastewater treatment facilities to the list of “other sources” of Total Reduced Sulfur 

(TRS). Smelt dissolving tanks are covered by separate state limits. Sewers, drains and wastewater 

treatment facilities are not measurable sources of TRS. Categorically insignificant activities are 

very minor, difficult to evaluate and could include non-industrial sources such as restrooms. 

EPA is not acting on references to total reduced sulfur in this division because control of total 

reduced sulfur is not appropriate for inclusion in the SIP. 

2) Kraft Pulp Mills 340-234-0200 
8 

Consistent with current practice, clarifies that the Department may require that a Kraft Pulp Mill 

undertake an odor emission reduction study program. Deletes section on submission of plans for 

construction and modification because general permitting regulations in division 210 address these 

requirements. 

3) Board Products Industries (Veneer, Plywood, Particleboard, Hardboard 340-234-0500) 

Clarifies emission requirements for Board Products by specifying uniform measurements and 

compliance methods. 

DIVISION 236 EMISSION STANDARDS FOR SPECIFIC INDUSTRIES 

1) Definitions 340-236-0010 

Clarification of “collection efficiency” definition. 340-236-0010(15) - In definition of “fluorides” 

and “particulate matter” deletes reference to Director’s discretion to allow alternatives to emission 

limits, testing or monitoring methods in federal rules or the State Implementation Plan without 

prior EPA approval. Updates “source test” definition for consistency with other rules, adds 

reference to the Department’s Source Sampling Manual. Deletes reference to Director’s discretion 

to allow alternatives to emission limits, testing or monitoring methods in federal rules or the State 

Implementation Plan without prior EPA approval. 

EPA has reviewed these 2008 amendments to the ODEQ rules and has determined that they meet 

EPA’s requirements under sections 110, part C and part D of title 1 of the Clean Air Act. EPA is 

therefore proposing to approve them as revisions to the Oregon SIP. 

B. MARCH 17, 2009 SIP SUBMITTAL BY ODEQ

Description of Substantive Rule Revisions

The March 17, 2009 rule revision exempts pollutants regulated by the Accidental Release 

Prevention rules and the Early Reduction High Risk Pollutant rules from regulation under the Plant 

Site Emission Emission Limits (PSEL) rule. 

The PSEL rule sets limits on emissions of specified regulated air pollutants. The primary purpose 

of establishing a PSEL is to assure compliance with ambient air standards, which regulate a group 

of pollutants known as criteria pollutants (particulate matter, ground-level ozone, carbon 

monoxide, sulfur oxides, nitrogen oxides, and lead). However, at the end of last year, ODEQ 

discovered an error in the PSEL Rule requiring PSELs for two unintended categories of pollutants. 

These two categories include substances regulated by the Accidental Release Prevention rule and 

substances listed as Early Reduction High Risk Pollutants. 

DIVISION 222 STATIONARY SOURCE PLANT SITE EMISSION LIMITS 
9 

Applicability 340-222-0020 

The Accidental Release Prevention rule (OAR 340-244-0230) was established to require 

businesses storing large quantities of hazardous materials to have a Risk Management Plan to 

prevent the accidental releases 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 of listed chemicals in order to be allowed greater flexibility 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. 

C. JUNE 23, 2010 SIP SUBMITTAL BY ODEQ

Description of Substantive Rule Revisions

Sections 110(a)(1) and (2) of the federal Clean Air Act requires states to submit changes to state 

implementation plan infrastructure elements to EPA for approval. The rule revisions submitted to 

EPA on June 23, 2010 are needed to update Oregon's infrastructure State Implementation Plan and 

meet EPA infrastructure requirements. The rule package also contains other changes to align 

ODEQ and EPA rules. 

These following summarizes noteworthy division changes: 

DIVISION 200 GENERAL AIR POLLUTION PROCEDURES AND DEFINITIONS 

General Air Quality Definitions 340-200-0020 

Incorporates the definition of PM2.5 and adds PM2.5 into the definition of criteria pollutants. 

Revises definition of volatile organic compound to exempt dimethyl carbonate and propylene 

carbonate, consistent with recent federal actions. EPA has determined that the volatile organic 

compounds dimethyl carbonate and propylene carbonate have low photochemical reactivity and 

are not significant contributors to ozone formation. EPA has exempted both compounds from the 

definition of volatile organic compound for purposes of ozone. 

Abbreviations and Acronyms 340-200-0025 

Adds acronym for PM2.5.

DIVISION 202 AMBIENT AIR QUALITY STANDARDS AND PSD INCREMENTS 

Adopts federal changes to National Ambient Air Quality Standards for PM2.5, ozone and lead 

including adding a definition for PM2.5 and adding PM2.5 into the definition of criteria pollutant. 

Suspended Particulate Matter 340-202-0060 
10 

Adds 2006 24-hour PM2.5 standard of 35 μg/m3

 and 1997 annual average PM2.5 standard of 15 

μg/m3. 

Ozone 340-202-0090 

Adds 2008 8-hour ozone standard of 0.075 ppm. 

Ambient Air Quality Standard for Lead 340-202-0130 

Adds the 2008 lead standard of 0.15 μg/m3

 maximum arithmetic mean averaged over a calendar 

quarter.

DIVISION 204 DESIGNATION OF AIR QUALITY AREAS 

Designation of Nonattainment Area 340-204-0030 

Specifies PM2.5 non-attainment area boundary descriptions for the cities of Klamath Falls and 

Oakridge.

DIVISION 206 AIR POLLUTION EMERGENCIES 

Introduction 340-206-0010 

Adds PM2.5 threshold for significant harm (350.5 μg/m3 24-hour average). 

Episode Stage Criteria for Air Pollution Emergencies 340-206-0030 

Adds PM2.5 thresholds for triggering air quality alerts (140.5 μg/m3

 24-hour average), warnings 

(210.5 μg/m3

 24-hour average), and emergencies (280.5 μg/m3 2-hour average) developed by 

ODEQ pursuant to the requirements of 40 CFR 51.151. 

D. MAY 5, 2011 SIP SUBMITTAL BY ODEQ

Description of Substantive Rule Revisions

DIVISION 200 GENERAL AIR POLLUTION PROCEDURES AND DEFINITIONS

This division contains ODEQ’s general air quality definitions (rule 0020), a list of abbreviations 

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

the Oregon SIP (rule 0040), provisions for compliance schedules (rule 0050), and rules for 

conflicts of interest and makeup of boards (rules 0100 to 0120). 

The following is a discussion and evaluation of the noteworthy division changes: 
11 

1) General Definitions 340-200-0020 

Actual emissions - Adds exceptions 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 tightened its program by reducing the netting basis from potential to emit (PTE) 

down to the highest actual emissions at the end of the baseline period for sources approved under 

division 200. This will be required before any future netting can take place and will prevent 

sources from netting out of NSR/PSD using their permitted PTE. Sources that reduce actual 

emissions because of voluntary controls will not lose that portion of the netting basis. This 

reduction will not affect the PSEL so sources will be able to increase up to PTE without going 

through NSR/PSD again. 

Adds a provision for sources that had not begun normal operation but were permitted under 

division 224 (Major NSR) to reset actual emissions. ODEQ has revised the method of setting 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 NSR/PSD 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 NSR/PSD. To address this concern, ODEQ has added a 

process to reset the netting basis once a new or expanded facility has been operating for up to 10 or 

15 years to establish a realistic level. This applies to major greenhouse gas sources that were 

permitted but not yet operating before the greenhouse gas rules were adopted and to future 

NSR/PSD sources. The process will not limit the ability of a facility to operate permitted 

equipment, but will prevent use of the added netting basis until the level is reset. 

Adds 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. Adds a provision to 

reduce PTE to actual for sources permitted under division 224 or approved under division 210 after 

the baseline period. Oregon tightened its 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. 

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

makes PM2.5 consistent with the PM10 threshold, which is 5% of the significant emission rate or 

SER (5 tons) in Medford and other nonattainment areas in older rules. 5% of 10 tons equals 0.5 

tons. 

These changes to the definition of actual emissions in 340-200-0020(3) are consistent with the 

EPA definition in 40 CFR 51.165(a)(1) and 51.166(b). 
12 

Aggregate insignificant emissions - Adds aggregate insignificant emissions threshold for 

greenhouse gases (GHGs). The de minimis level for GHGs is set at the State of Oregon GHG 

reporting threshold. (2,756 tons CO2e). Oregon’s rules use the terms “aggregate insignificant 

emissions”, “significant emission threshold”, and “significant emission rate (SER)” for GHG PSD 

permitting purposes. However, these terms do not have the same meaning as a “SER” 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. Oregon’s PSEL PSD permitting program establishes a GHG threshold of 

75,000 CO2e to tailor the application of its PSD permitting program in a manner similar to EPA’s 

GHG tailoring rule.

Baseline Emission Rate - Adds subsection for regulated pollutants only. Provides clarification that 

the baseline emission rate only applies to pollutants subject to the New Source Review program. 

Specifically, HAPs are not subject to NSR, but there may be other pollutants also not subject to 

NSR. No baseline emission rate will be necessary for PM2.5 because PM2.5 will be ratioed to PM10

for both netting basis and PSEL. 

Establishes 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. Adds subsection for newly 

regulated pollutants (including GHGs). The baseline emission rate for newly regulated pollutants 

will be established as the actual emissions during any consecutive 12 month period within the 24 

months immediately preceding its designation as a regulated pollutant with the first permit action 

after the rules are adopted (May 1, 2011). 

Adds a provision for recalculating the baseline emission rate if actual emissions are reset in 

accordance with the definition of actual emissions. Adds a provision for freezing only the 

production basis used to establish the baseline emission rate, not the entire baseline emission rate. 

Emission factors can be changed upon obtaining better information. 

Baseline Period - Adds exemption for GHG from 77/78 baseline and adds a GHG baseline period 

as the highest 12-month consecutive period between 2000 and 2010. 

These changes to the definitions of baseline emission rate and baseline period in 

340-200-0020(13) and (14) are consistent with the EPA definitions and requirements in 40 CFR 

51.165 and 51.166. 

Biomass - Adds a definition of biomass and defers carbon dioxide emissions from biomass in 

accordance with EPA’s July 2011 deferral. The application of the PSD and Title V permitting 

requirements to carbon dioxide (CO2) emissions from bioenergy and other biogenic stationary 

sources has been deferred for a period of 3 years. 

Carbon dioxide equivalent, CO2e - Adds definition of carbon dioxide equivalent. This definition is 

consistent with EPA’s Tailoring Rules for purposes of Title V and PSD. 

Direct PM2.5 - Adds definition of direct PM2.5. This definition is needed because is it used in the 

definition of PM2.5. 
13 

The direct PM2.5 definition in 340-200-0020(36) is consistent with the regulated NSR pollutant 

definition in 40 CFR 51.165(a)(1) and 51.166(b). 

Emission Factor - Deletes approval of emission factor by EPA or the DEQ. Discretionary approval 

is not allowed. These emission factors are included in the plant site emissions detail sheets. 

Federal Major Source - Adds GHG threshold of 100,000 tons CO2e per year to definition of 

Federal Major Source consistent with EPA’s GHG tailoring rule. Include fugitive emissions in the 

definition of major modification. Clarifies that fugitive emissions must be included in the major 

new source review applicability. Includes emission decreases in potential to emit (PTE) 

calculations. Clarifies that emission decreases may also be included in the major new source 

review applicability. 

The GHG threshold in 340-200-0020(55) is consistent with the requirements in the GHG Tailoring 

rule. 

Greenhouse Gases - Adds definition greenhouse gases (GHGs). This definition is consistent with 

EPA’s Tailoring Rules for purposes of Title V and PSD. Adds deferral of carbon dioxide 

emissions from the combustion or decomposition of biomass. EPA has deferred carbon dioxide 

emissions from the combustion or decomposition of biomass. 

Major Modification - Rewords definition of major modification to include changes “in the 

method” of operation. Adds a provision stating that major modifications for precursors are also 

major modifications for ozone and PM2.5. This clarifies the definition and is consistent with EPA 

rules. Clarifies that major modification is triggered if the PSEL exceeds the netting basis. Clarifies 

the accumulation of physical changes and changes in operation that trigger a major modification. 

Includes fugitive emissions in the definition of major modification. Clarifies that fugitive 

emissions must be included in the major new source review applicability and that emissions 

increases from the increased use of equipment permitted or approved to construct are not included 

in major modification applicability. Clarifies when sources would trigger NSR with only a 1 

ton/year increase. 

Adds provision that the portion of the netting basis and PSEL that was based on PTE because the 

source had not begun normal operations must be excluded from major modification applicability 

until it is reset. Deletes the exception for pollution control projects. The DC Circuit invalidated the 

federal exemption from NSR upon which this paragraph is based. 

To avoid penalizing sources that made previously approved changes that increased PM10

emissions prior to Oregon regulating PM2.5, these PM10 changes will be grandfathered into the 

permits. In the future, this would not apply to any source since they would trigger NSR/PSD. 

These changes to the definition of major modification in 340-200-0020(70) are consistent with the 

EPA definition in 40 CFR 51.165(a)(1) and 51.166(b). 
14 

Major Source - Adds fugitive emissions to the definition of major source. Fugitive emissions must 

be included to determine whether a source is major or not. Adds that potential to emit calculations 

must include emissions increases due to the new or modified source. Potential to emit calculations 

of the new or modified source must be included to determine whether a source is major or not. This 

clarifies the definition and is consistent with EPA rules and past implementation of the rules. Adds 

definition of major stationary source for GHG consistent with EPA rules. 

Netting Basis - Provides clarification that the netting basis only applies to pollutants subject to the 

NSR program. Deletes the rules in netting basis that apply to the baseline emission rate since 

baseline emission rate will no longer be frozen. Adds provisions that the initial netting basis and 

PSEL for PM2.5 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 greenhouse gas sources will be required to obtain permits). 

Adds provision that the initial netting basis and PSEL for PM2.5 will be the PM2.5 fraction of the 

PM10 netting basis and PSEL. Since PM2.5 is a subset of PM10 emissions, Oregon set the PM2.5

netting basis and PSEL as a fraction of the existing PM10 netting basis and PSEL. Oregon treats 

PM2.5 and PM10 in a comparable manner since PM2.5 is a subset of PM10, which is a pollutant 

already addressed by the existing permitting rules. As a result, DEQ determines the amount of 

PM10 that is PM2.5 at a facility and use that fraction to calculate permitted levels for PM2.5. This 

approach incorporates PM2.5 at this time as if it had been part of the program all along; allowing 

previously approved expansions to continue to operate and that new expansions are 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 NSR/PSD. Because the PM10

significant emission rate is 15 tons/year and the PM2.5 significant emission rate is 10 tons/year, 

sources could retroactively trigger the PM2.5 SER because of past approved increases in PM10. In 

order to eliminate this possibility, a one time 5 ton true up may be necessary. 

Adds provision setting the initial source specific PSEL for a source with PTE greater than or equal 

to the SER equal to the PM2.5 fraction of the PM10 PSEL. 

Clarifies when the netting basis is zero and when changes to the netting basis are effective. The 

changes clarify the instances when the netting basis and PSEL are reduced and matches the intent 

and past interpretation of the rule. 

Adds a provision to reduce the netting basis from PTE for sources permitted under division 224 

(Major NSR) after the baseline period. Oregon tightened its 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. 

Adds a provision that emission reductions required by rule do not include emissions reductions 

achieved under OAR 340-226-0110 and 0120 (Pollution Prevention and Operating and 

Maintenance Requirements under the Highest and Best Practicable Treatment and Control rules). 

This provision will continue to encourage sources to implement voluntary early reductions. In 

addition, only the netting basis will be reduced to prevent unwarranted offsetting. The PSEL will 
15 

not be reduced so a source will still be able to utilize the full capacity of a unit that went through 

PSD without triggering PSD again. 

Ozone Precursor - Adds definition of ozone precursor consistent with EPA rules. 

PM2.5 - Changes definition of PM2.5 and adds EPA’s new reference test methods. Adds a provision 

for PM2.5 precursors. This definition is consistent with EPA’s rules for purposes of Title V and 

NSR. 

PM2.5 fraction - Adds a definition for PM2.5 fraction. 

Adds part 52 to the CFR citations for reference methods. Appendix M of Part 51 includes 

reference methods for condensable PM. 

Regulated Pollutant - Adds precursors and GHGs to definition. Clarifies that only regulated 

pollutants with significant emissions are subject to NSR. 

Significant Emission Rate - Adds exception for GHG emissions impacting Class I areas to the 

definition of significant emission rate. There is no ambient standard for GHG, so this provision 

does not apply to GHG emissions. 

Small scale local energy project - Adds definition of small scale local energy project. House Bill 

2952 amended ORS 468A.040 to add an exception for small scale local energy projects regarding 

net air quality benefit. 

Volatile Organic Compounds - Adds propylene carbonate to definition of VOC. 

2) Division 200 Tables 

Adds EPA-adopted PM2.5 significant impact levels (SILs). Combines SILs for all air quality areas 

into one table for all pollutants. Adds EPA-adopted significant emission rates (SERs) for GHG, 

direct PM2.5 PM2.5 precursors and VOC precursors. EPA adopted a major source threshold and 

SER when it defined GHG as a regulated pollutant. Adds de minimis levels for GHG, for PM2.5 in 

the Medford AQMA, and for direct PM2.5. The de minimis level for GHG is set at the GHG 

reporting threshold. The de minimis levels for PM2.5 are consistent with PM10. Adds generic PSEL 

for PM2.5 and GHG. The generic PSEL for GHG is based on proposed SER minus 1000 tpy. 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 prevention of significant 

deterioration (PSD) increments. 

The following is a discussion and evaluation of the significant division changes: 
16 

1) Definitions 340-202-0010 

Baseline Calculation - Deletes the words “major”. Corrects definition by clarifying that actual 

emission increases from any source or modification on which construction commenced after 

January 6, 1975 cannot be included in the baseline calculation, not just major sources and major 

modifications. This change is necessary because when an air quality impact analysis is required 

under division 225 (Air Quality Analysis Requirements), all permitted sources, not just “major” 

sources, are included in the modeling analysis, not in the baseline calculation (or background 

concentration). The baseline concentration for PM10 in the Medford-Ashland Air Quality 

Maintenance Area (AQMA) from the definition in division 225 was added. Adds baseline 

concentration year for PM2.5 that is set on the year when ambient monitoring was done and when 

the increment was proposed. 

2) Ambient Air Quality Standards 

Suspended Particulate Matter 340-202-0060 

Deletes annual PM10 air quality standard (previously revoked by EPA). 

DIVISION 216 AIR CONTAMINANT DISCHARGE PERMITS

This division is the ODEQ federally-enforceable State operating permit (FESOP) program , and is 

also the administrative permit mechanism used to implement the notice of construction and major 

new source review programs. 

The following are the significant changes to this division. 

Oregon DEQ delegates authority to Lane Regional Air Protection Agency to implement Air 

Contaminant Discharge Permit and Oregon Title V Operating Permit programs for regulation of 

PM2.5 and GHG within its area of jurisdiction. The requirements and procedures contained in 

divisions 200, 224, and 225 pertaining to PM2.5 and GHG are used by the Regional Agency to 

implement its permitting programs until it adopts superseding rules which are at least as restrictive 

as state rules. 

Adds PM2.5 and GHGs to source categories requiring air contaminant discharge permits. Adds a 5 

tons PM2.5 threshold for requiring a permit in nonattainment areas provides more protection for the 

area through source surveillance. Adds a 100,000 ton GHG CO2e threshold for GHG, consistent 

with the GHG Tailoring Rule. 

Adds requirement for owner/operator to correct permit application upon becoming aware of error. 

Corrects source category numbers and adds GHG and PM2.5 to permitting requirement tables. 

DIVISION 224 MAJOR NEW SOURCE REVIEW
17 

This division contains the ODEQ major source permit to construct programs as required by Title I, 

Parts C and D of the Act. It requires an air contaminant discharge permit (ACDP) prior to 

beginning construction on a new major source or major modification 

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 Air Contaminant Discharge 

Permit and having satisfied the requirements of this division. 

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 of the source to comply with all applicable requirements. 

The following is a discussion and evaluation of the noteworthy division changes: 

1) Applicability and General Prohibitions 340-224-0010

Restructures OAR 340-224-0010 and clarifies that division 224 applies to the regulated pollutant 

for which the area is designated nonattainment 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. Adds applicability requirements for 

GHG PSD permitting of sources 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 Rules for purposes 

of Title V and PSD. 

2) Requirements for Sources in Nonattainment Areas 340-224-0050

Adds requirements for PM2.5 precursors to sources in designated PM2.5 nonattainment areas. This 

change is needed because of the PM2.5 nonattainment areas in Oakridge and Klamath Falls. 

Adds precursors to the LAER requirement. This change is needed because LAER applies to the 

nonattainment area pollutant and its associated precursors. Clarifies that LAER applies to each 

emissions unit that emits the nonattainment 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. Clarifies that modifications to individual emissions units that increase the potential to 

emit less than 10 percent of the significant emission rate (SER) are exempt from applying LAER 

unless these modifications are not constructed yet, are part of a discrete, identifiable, larger project 

that was constructed within the previous 5 years, and that is equal to or greater than 10 percent of 

the SER; or were constructed without, or in violation of, ODEQ's approval. 
18 

3) Requirements for Sources in Maintenance Areas 340-224-0060

Adds precursors to the list of pollutants subject to BACT in maintenance areas. Adds precursors to 

the BACT requirement. 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. Clarifies that 

modifications to individual emissions units that increase the potential to emit less than 10 percent 

of the SER are exempt from applying BACT unless these modifications are not constructed yet, 

are part of a discrete, identifiable, larger project that was constructed within the previous 5 years, 

and that is equal to or greater than 10 percent of the SER; or were constructed without, or in 

violation of, ODEQ's approval. 

4) Prevention of Significant Deterioration Requirements in Attainment or Unclassified 

Areas 340-224-0070

Adds precursors to the BACT requirement. Clarifies that BACT applies to each emissions unit that 

emits the attainment (or unclassified) 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. Clarifies that modifications to individual emissions units that increase the potential to 

emit less than 10 percent of the SER are exempt from applying BACT unless these modifications 

are not constructed yet, are part of a discrete, identifiable, larger project that was constructed 

within the previous 5 years, and that is equal to or greater than 10 percent of the SER; or were 

constructed without, or in violation of, ODEQ's approval. 

Adds provision that the required air quality analysis is for the pollutant with increases above the 

SER over the netting basis. Adds provision that increases above the SER for direct PM2.5 or PM2.5

precursors also trigger an analysis of PM2.5. 

PM2.5 precursors have to be addressed in attainment and unclassified areas. 

DIVISION 225 AIR QUALITY ANALYSIS REQUIREMENTS

This division contains all of the 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 definitions of the terms “allowable emissions” and “baseline concentration” are consistent 

with EPA’s definitions in 40 CFR 51.165(a) and 51.166(b). 

The provisions for demonstrating net air quality benefit comply with the CAA and EPA’s 

requirements for emission offsets (section 173 of the Act, 40 CFR 51.165(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 of the Act. 
19 

1) Definitions 340-225-0020 

Baseline Concentration - Adds baseline concentration year of 2007 for PM2.5 increment to the 

definition. 

Range of Influence (ROI) – Adds K value of 5 for PM2.5 to the ROI equation used in modeling 

analyses. Changes K value to 5 for NOx consistent with EPA’s new 1-hour SO2 and NOx standards. 

2) Requirements for Analysis in Maintenance Areas 340-225-0045 and PSD Class II and III 

Areas 340-225-0050 

Clarifies that a single source impact analysis is sufficient to show compliance with standards and 

increments for only the pollutants that trigger PSD. This change is a clarification to the rules 

consistent with how the rules have been applied. Adds PM2.5 significant monitoring concentration 

of 4 μg/m3 as specified in EPA’s PM2.5 NSR/PSD implementing rule. 

3) Requirements for Demonstrating Compliance with Standards and Increments in PSD 

Class I Areas 340-225-0060 

Clarifies that a single source impact analysis is sufficient to show compliance with standards and 

increments for only the pollutants that trigger PSD. Clarifies 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. These changes are clarifications to the rules consistent 

with how the rules have been applied. 

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

Adds PM2.5 to the list of pollutants for non-ozone areas. Adds PM2.5 precursor, SO2 and NOx offset 

ratios for non-ozone areas. These offset ratios are based the presumptive levels established by EPA 

in the preamble to Significant Impact Levels (SILs). Adds provision that precursor emissions can 

be used to offset direct PM2.5 and vice versa. 

Adds alternative provisions for small scale local energy projects (and related infrastructure) 

located in nonattainment and maintenance areas indicating that the net air quality benefit provision 

in this rule is satisfied if the nonattainment or maintenance pollutant emissions are offset using the 

offset ratios specified in this rule, provided that the proposed major source or major modification 

would not cause or contribute to a violation of the national ambient air quality standard or 

otherwise pose a material threat to compliance with air quality standards in the nonattainment area. 

House Bill 2952 amended Oregon Revised Statutes (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 
20 

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

for fuel burning equipments. 

1) Federal Acid Rain Program 340-228-0300 

The acid rain program section was amended to incorporate by reference the latest EPA regulations 

on acid rain permitting. Specifically 40 CFR Parts 72, 75 and 76 as of July 1, 2006 were 

incorporated by reference on July 2, 2010. EPA is not taking action on this rule revision because 

the acid rain program is not part of a State Implementation Plan.