ENCLOSURE3 

STATE IMPLEMENTATION PLAN REVISIONS 

Enclosure 3 Page 1 
VERMONT DEPARTMENT OF ENVIRONMENTAL 

CONSERVATION 

State Implementation Plan Revision 

Supporting Compliance With 

Requirements for REASONABLY AVAILABLE CONTROL 

TECHNOLOGY (RACT) 

Under the 8-Hr Ozone National Ambient Air Quality Standard (NAAQS) 

Adopted on July 18, 1997 

November 14, 2008 
INTRODUCTION 

Background and Requirement 

The federal Clean Air Act Amendments of 1990 (CAA) give the states primary responsibility for 

achieving the National Ambient Air Quality Standards (NAAQS). The NAAQS are established 

by the U.S . Environmental Protection Agency (EPA) as the maximum concentrations in the 

atmosphere for specific air contaminants to protect public health and welfare . The principal 

mechanism at the state level for complying with the CAA is the State Implementation Plan (SIP) . 

A SIP outlines the programs, actions, and commitments a state will carry out to implement its 

responsibilities under the CAA. Once approved by the EPA, a SIP is a legally enforceable 

document under both state and federal law. 

This document contains a SIP revision for meeting the Reasonably Available Control 

Technology (RACT) requirements set forth by the CAA relating to the 8-hour ozone NAAQS. 

The CAA requires that states achieve the NAAQS by specified dates, based on the severity of an 

area's air quality problem . Maintaining concentrations of ground-level ozone below the healthbased standard is important because ozone is a serious human health threat, and also can cause 

damage to important food crops, forests, and wildlife. Repeated exposure to ozone pollution may 

cause a variety of adverse health effects for both healthy people and those with existing 

conditions including difficulty in breathing, chest pains, coughing, nausea, throat irritation, and 

congestion . It can worsen bronchitis, heart disease, emphysema, and asthma, and reduce lung 

capacity . Asthma is a significant and growing threat to children and adults . Although Vermont 

has not experienced violations of the 8-hour ozone NAAQS, the CAA identifies Vermont as a 

part of the Ozone Transport Region (OTR) . 

Certain stationary source control measures specified in the CAA as applicable to areas 

considered "moderate" ozone non-attainment areas also apply to states and portions of states 

located in the Ozone Transport Region (OTR) even though these areas are not designated as nonattainment areas. Stationary source control measures are techniques and equipment for reducing 

ozone precursor emissions, i .e ., volatile organic compounds (VOC) and nitrogen oxides (NOx) 

from stationary sources in the state . For the purposes of regulating stationary sources therefore, 

the entire State of Vermont is considered a "moderate" ozone non-attainment area for the federal 

8-hour ozone NAAQS because it is in the OTR established by operation of law under Section 

184 of the CAA. Sections 182(b)(2) and 182(f) of the federal CAA require owners and operators 

of sources in ozone non-attainment areas to implement RACT for sources that are subject to 

Control Techniques Guidelines (CTG) issued by EPA and for "major sources" of VOC and NOx, 

which are ozone precursors . 
RACT is defined as the lowest emissions limitation that a particular source is capable of meeting 

by the application of control technology that is reasonably available considering technological 

and economic feasibility (44 FR 53762; September 17, 1979). RACT requirements are included 

in the CAA to assure that significant source categories at major sources of ozone precursor 

emissions are controlled to a "reasonable" extent, but not necessarily to the more stringent Best 

Available Control Technology (BACT) or Maximum Achievable Control Technology (MACT) 

levels expected of new sources . According to the EPA's Final Rule to Implement the 8-Hour 

Ozone NAAQS (70 FR 71612, November 29, 2005), areas classified as "moderate" nonattainment or higher must submit a demonstration that their current rules fulfill 8-hour ozone 

RACT requirements for all CTG categories and all major, non-CTG sources as a revision to their 

SIPs . Such demonstrations can be made with either a new RACT determination or a certification 

that previously-required RACT controls represent RACT for the 8-hour ozone standard . The 

certification should be accompanied by appropriate supporting information, such as 

consideration of information received during the public comment period . 

Regardless of the state's attainment designation for the 1997 8-hour ozone standard, Vermont, 

was required to submit RACT SIP revisions by September 15, 2006 because it is part of the 

OTR. On March 24, 2008, EPA published in the Federal Register a finding that Vermont had 

failed to submit the SIP revisions required for the 1997 8-hour ozone NAAQS. Vermont is 

submitting the required SIP revisions at this time. Although delayed in submittal to EPA, this 

SIP submittal does not have any substantive effect on air quality, since the required RACT 

controls on the applicable sources in Vermont have been in effect in rules, permits and/or 

administrative orders for many years. 
Intent of this RACT SIP revision 

As mentioned above, all existing Vermont sources to which the "moderate" non-attainment area 

RACT rules were applicable have for several years already been required to apply RACT 

equivalent controls by state issued permits, administrative orders, rules or policies. Thus this 

submittal completes the federal SIP-related administrative responsibility for the State of Vermont 

in defining RACT for stationary sources with respect to the originally adopted 8-hour ozone 

standard (July 18, 1997). This RACT SIP revision demonstrates and/or certifies the following 

with respect to Vermont stationary sources of ozone precursors : 

1 . All required RACT controls, both CTGs and Major Sources, have been implemented 

on all relevant stationary sources of VOC and NOx emissions; 

2 . All applicable CTG RACT controls required to be submitted under the current RACT 

SIP call (applicable to CTGs issued prior to 2006) have been previously approved by 

EPA under the 1-hour ozone NAAQS; and 

3 . All previously EPA-approved RACT controls, including CTGs issued prior to 2006 

and previously submitted Single Source RACT determinations, as well as newly 

determined Single Source RACT applied to other Major Sources have been certified by 

the Vermont Air Pollution Control Officer, based on EPA's guidance and standards, to 

represent RACT control levels under the new 8-hour ozone NAAQS. 
. TABLE OF CONTENTS 

Discussion 

A_. VOC CTG RACT 

TABLE 1 . VOC CTG/RACT List 

B. Major Source (>50 Tons per Year) Facility VOC RACT 

TABLE 2 . VOC RACT Major Source Facilities 

C. Major Source (>100 Tons per Year) Facility NOx RACT 

TABLE 3. NOx RACT Major Source Facilities 

Appendices 

Appendix A: 1 . Certifications that existing 1-Hr Ozone RACT is equivalent to 8-Hr 

Ozone RACT 

2. Certifications (or-recertifications) of Negative Declarations for 25 

CTG categories issued prior to 2006 

3 . Certifications of Negative Declarations for 5 CTG categories 

issued since 2005. 

Appendix B: Adopted Vermont Rules which are already included in the federally 

enforceable SIP but for which minor changes are being submitted for 

approval and to replace the existing version. 

Text of adopted Rule 5-253 .3 Bulk Gasoline Plants 

Text of adopted Rule 5-251(3) Control of Nitrogen Oxides 

Emissions : RACT for large stationary sources 

(Note: exact same rule currently in SIP as 5-251(2)) 

Appendix C: Isovolta Inc . Operating Permit OP-95-040 portions intended for inclusion 

in SIP (This facility was formerly called U.S. Samica) 

Appendix D: Churchill Coatings Corporation Operating Permit AOP-06-040 portions 

intended for inclusion in SIP 

Appendix E: Dalton Hydro, LLC. Operating Permit AOP-04-020 portions intended 

for inclusion in SIP 

Appendix F: Killington/Pico Ski Resort Partners, LLC. Operating Permit AOP-04-025a 

portions intended for inclusion in SIP 
Appendix G: Okemo Limited Liability Company Operating Permit AOP-04-029 

portions intended for inclusion in SIP 

Appendix H: H.B.H. Prestain, Inc. Operating Permit AOP-03-009 portions intended for 

inclusion in SIP 

Appendix I: Green Mountain Prestain, Inc. Operating Permit AOP-04-042 portions 

intended for inclusion in SIP 

Appendix J : Documentation of 1995 Rule Changes to State NOx RACT Rule 5-251 

Control of Nitrogen Oxides Emissions 

Appendix K: Documentation of 2001 Rule Changes to State VOC Control Rule 5-253 .3 

Bulk Gasoline Plants 
Discussion 

A. VOC CTG RACT 

VOC CTGs that Vermont examined with respect to this SIP submittal are shown below in Table 

1. VOC CTG/RACT List. Vermont identified 34 source categories for which CTGs were 

adopted prior to September 2006 and for which determinations of RACT with respect to the 

newly adopted 8-Hr ozone standard were required to be included in this current RACT SIP 

revision. Of these 34 CTG categories, 9 have been determined to be categories for which 

Vermont has applicable sources. For 8 of these, Vermont has previously submitted RACT rules 

and received approval from EPA and they have been adopted as RACT rules for the 1-Hr ozone 

standard in the Vermont SIP . The Vermont regulations associated with these may be found in 

the Vermont Air Pollution Control Regulations (see Table 1 . column 2 applicability and column 

3 VAPCR citation). All 8 of these rules were approved by EPA and included in the Vermont SIP 

on 4/22/98 . The RACT regulation for 1 of these 8 rules which had previously been approved by 

EPA in the Vermont SIP was amended in Vermont regulation on 4/20/O1 to clarify its 

requirements but not substantively change them, "Control of Volatile Organic Emissions from 

Bulk Gasoline Plants" (December 1977, EPA-450/2-77-035). The amended Vermont rule, with 

its supporting administrative rulemaking documentation, is being submitted with this RACT SIP 

package to EPA for approval . 

The ninth CTG category for which a Vermont RACT rule was submitted to EPA on 11/22/06, 

"Control of Volatile Organic Compound Emissions from Wood Furniture Manufacturing 

Operations" (April 1996, EPA-453/R-96-007), is still pending SIP approval by EPA. 

It is the Vermont Air Pollution Control Officer's determination that the Vermont Air Pollution 

Control rules applicable to all nine of these CTG categories, which have been approved and/or 

are pending approval as RACT for the 1-Hr ozone standard, also represent RACT for the 8-Hr 

ozone standard, including any subsequent revisions to the ozone standard that maintain an 8-Hr 

averaging period . Certification of this fact and re-certifications that there are no applicable 

sources in Vermont for the other 25 CTG categories (25 negative declarations ) are included in 

APPENDIX A. 

In addition, there are seven new CTG categories that were recently issued by EPA since 

September 2006 . Vermont has already determined that there are no applicable sources in 

Vermont for five of these new CTG categories and is submitting negative declarations for these 

at this time in APPENDIX A. Vermont utilized several different sources to verify that there 

were no applicable sources within the CTG categories for which we are making negative 

declarations . The Permitting database, the annual emission registration database, the Field 

Enforcement database, permitting and field enforcement staff as well as other programs within 

the Department were consulted in our efforts to determine applicable sources to the CTG 

categories . These databases themselves are constantly being updated to ensure they are accurate 

and complete based on new initiatives and new information. 

7 
Vermont has also determined that it is required to adopt RACT rules for the remaining two new 

CTGs, which are: "Control Techniques Guidelines : Industrial Cleaning Solvents" (September 

2006, EPA 453/R-06-001) and "Control Techniques Guidelines : Offset Lithographic Printing 

and Letterpress Printing" (September 2006, EPA-453/R-06-002). Because these two new rules 

will take time to develop, Vermont intends to make a separate RACT SIP submittal covering 

these two categories in the near future . 
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B. Maior Source (>50 Tons per Year) Facility VOC RACT 

Besides the CTG-specific categories of VOC sources, the Clean Air Act requires RACT be 

applied to any major existing stationary source of VOC in the Ozone Transport Region, 

applicable to sources with the potential to emit 50 tons or greater per year of VOC. Vermont's 

Air Pollution Control Regulation 5-253 .20 applies to all sources with potential VOC emissions 

of 50 tpy or greater that are not regulated under a CTG specific regulation. This regulation was 

approved in the Vermont SIP on 4/9/97 . In reviewing existing stationary sources in Vermont, the 

State has identified 6 facilities in Vermont which meet this criteria for review of RACT. Table 

2. "VOC RACT Major Source Facilities" below summarizes the situation with respect to these 

six facilities . 

RACT for one of these sources (Isovolta, Inc ., which was formerly called US Samica 

Corporation) had previously been incorporated into the Vermont SIP through an administrative 

order signed by the Secretary of the Vermont Agency of Natural Resources on 1/4/95, submitted 

to EPA as a single-source RACT SIP, and approved by EPA on 4/9/97 . That administrative 

order was subsequently changed slightly and then incorporated into an operating permit issued to 

the Isovolta Inc. Plant on 1/6/06 . Since the order which is in the current Vermont SIP differs 

slightly from the operative "Permit to Operate", this SIP submittal includes, as APPENDIX C, 

the relevant conditions from the current operating permit for Isovolta Incorporated's plant in 

Rutland, Vt. (OP-95-040). The State of Vermont would like EPA to incorporate the relevant 

portions of the Operating Permit related to VOC RACT (equivalent to the original administrative 

order) into the Vermont SIP. Any subsequent change to the operating permit would be treated as 

a single-source SIP revision in the future . 

In addition to Isovolta Inc., another existing facility in Vermont is subject to the VOC RACT 

regulation. Churchill Coatings Corporation is identified in Table 2, where a summary of its 

permit history is given. Churchill Coatings Corporation has an existing RACT determination 

incorporated into its current operating permit . Therefore, the relevant conditions from the 

Churchill Coatings Corporation operating permit (AOP-06-040) are also being submitted as part 

of this RACT submittal package as APPENDIX D for inclusion in the Vermont SIP . As with 

Isovolta Inc., any change to the operating permit would be treated as a single-source SIP revision 

in the future and submitted to EPA after public comment and an opportunity for a hearing. 

The two facilities identified as major VOC sources in Table 2 (HBH Prestain, Inc. and Green 

Mountain Prestain, Inc.) have each been subject to the State of Vermont New Source Review 

permit process and required to control emissions at the "most stringent emission rate" (MSER) . 

MSER has been accepted by EPA under Vermont SIP NSR rules as equivalent to BACT/LAER. 

RACT is less stringent than either of these control levels so these two facilities already meet 

RACT under existing permits. These permits are included as APPENDIX H and APPENDIX I 

for incorporation of the relevant conditions into the SIP. Again, any subsequent changes to the 

operating permits would be treated as a single-source SIP revisions in the future . The two 

remaining facilities identified as major VOC sources in Table 2 (Ethan Allen Beecher Falls and 

Orleans) are subject to the wood furniture CTG and therefore are not subject to major source 

VOC RACT pursuant to 5-253 .20 of the Vermont Air Pollution Control Regulations. 

17 
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C. Maior Source (>100 Tons per Year) Facility NOx RACT 

Vermont's Air Pollution Control Regulation 5-251(3) applies to all sources with potential NOx 

emissions of 100 tpy or greater. This regulation was approved (as 5-251(2)) by EPA and 

incorporated into the Vermont SIP on 4/9/97 . In reviewing existing stationary sources in 

Vermont, the State has identified 6 facilities in Vermont which meet this criteria for review of 

RACT. Table 3 . "NOx RACT Major Source Facilities" below summarizes the situation with 

respect to these six facilities . 

Dalton Hydro, LLC in Gilman, Vermont was formerly called Simpson Paper. A single-source 

SIP for NOx RACT was submitted to EPA and approved on 4/9/97 . In the interim period 

between SIP submittal and approval by EPA, this RACT order was amended on January 9, 1996 

to remove the opacity monitoring requirements . These requirements had no bearing on the NOx 

RACT emission limits . The amended order requirements were then incorporated into the 

subsequent Title V permits to operate unchanged from the amended administrative order 

(1/9/96). The State Air Pollution Control Officer has determined that the level of control that 

represented RACT at that time remains the appropriate RACT today. Because the administrative 

order that comprised the original single-source SIP submittal is now out of date, Vermont is 

submitting, as part of this RACT SIP revision, the relevant conditions from the operating permit 

for Dalton Hydro, LLC (OP-04-020) as APPENDIX E for incorporation into the Vermont SIP. 

Any subsequent change to the operating permit would be treated as a single-source SIP revision 

in the future . 

In addition to Dalton Hydro, LLC, two other existing sources in Vermont must apply NOx 

RACT . These are two ski areas, Killington/Pico Ski Resort Partners, LLC (Killington) and 

Okemo Limited Liability Company (Okemo). Both sources operate under Title V permits issued 

by Vermont. The NOx limits contained in these permits represent RACT as a minimum. The 

variability in the NOx RACT determinations for the otherwise similar ski resorts was a function of 

the different flexibility needs at the resorts, the remaining life of the SCR equipped engines and 

non SCR equipped engines, timing of issuance of the permits in conjunction with the 

replacement schedules of all other engines at the resorts and the standards those engines 

would be held to. The number of engines at each source in conjunction with the ages and 

emission characteristics of those various engines makes a direct comparison between the 

resorts difficult and not as straight forward as a single emission unit source such as a utility 

boiler with numerous precedents for RACT determinations . The original permit incorporating 

the NOx RACT requirements for Okemo was issued September 5, 2000 and required a 

combination of SCR on the one large 1480 bhp engine, efficiency improvements to reduce 

overall fuel usage, hour limits on the engines, and a replacement schedule for all other engines 

bringing them up to Tier II emission standards. On a more traditional source RACT would rarely 

require complete removal of the existing emission unit and replacement with a new unit . 

Killington was first subjected to the NOx RACT requirements in its permit issued May 4, 2004. It 

also required an SCR unit on the one large unit, a 1485 bhp unit . Since this engine was older 

with a reduced expected operating life, the SCR requirement was reduced to 70% which 

enabled a more cost effective system . In order to increase NOx reduction elsewhere under 

RACT to compensate for the lower SCR efficiency, the engine replacement schedule and 

requirements were changed from Okemos and required Tier III compliant engines. As a result, 

21 
a direct comparison of the RACT requirements between the two ski resort facilities is difficult. 

Both RACT determinations can be considered RACT, at a minimum, since they both resulted in 

very significant NOx reductions due mainly to the replacement of older, dirtier engines with new 

Tier II or Tier III certified engines. 

This submittal includes the relevant conditions from the Title V operating permits for each of 

these sources as APPENDIX F (AOP-04-025a) & APPENDIX G (AOP-04-029) for inclusion in 

the Vermont SIP. 

The remaining three stationary sources to which RACT determinations may apply include two 

power stations as well as a rock processing facility. All of these sources have been subject to 

MSER under the NSR program approved in Vermont's SIP . MSER is, at minimum, 

representative of RACT, therefore there is no need to submit these determinations. In addition, 

the SIP approved NOx RACT regulation 5-251(3)(d) exempts from RACT those facilities that 

have been subjected to MSER. Therefore, the permits for these three facilities are not included 

in this submittal. 
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