GOVERNMENT OF THE DISTRICT OF COLUMBIA

District Department of the Environment 

# ***

Office of the Director

April 5, 2013

Shawn M. Garvin Regional Administrator
U.S. Environmental Protection Agency Region III (Mail Code: 3RAOO)
1650 Arch Street Philadelphia

, P A 19103-2029

Subject: Submittal of the District of Columbia ' s New Source Review Regulations

as a SIP Revision

Dear Mr. Garvin:

Pursuant to the authority set forth in the District of Columbia Air Pollution Control Act of 1984 as amended, effective March 15

, 1985 (D.C. Law 5-165; D.C. Official Code§§ 8-101.01 et seq. (2008 Repl. & 2012 Supp.)), the District Department of the Environment
Establishment Act of2005

, as amended

, effective February 15

, 2006 (D

. C. Law 16-51 ; D

. C. Official Code§§ 8-151.01 et seq. (2008 Repl. & 2012 Supp)) ; Mayor ' s Order 98-
44

, dated April10, 1998

, Mayor ' s Order 98-45

, dated April10, 1998, and Mayor's Order 2006-61, dated June 14, 2006, the District of Columbia is hereby requesting approval of
its State Implementation Plan (SIP) revision pertaining to amendments to Chapters 1 and
2 ofTitle 20 (Environment) ofthe District of Columbia Municipal Regulations (DCMR).
A Notice of Final Rulemaking was posted in the D

. C. Register on November 16, 2012

, at 59 DCR 013044 (D

. C. Register ID 4049670).

The following are attached:

• One copy of the Chapters 1 and 2 revisions

, Notice of Final Rulemaking, as adopted ;

• One copy of the Chapters 1 and 2 revisions with underline / strikethrough to indicate the SIP revisions;

• The Public Hearing Notice;

• The Hearing Officer's Certification ;

• One disk containing an electronic version of the entire SIP revision. The
electronic version includes an exact duplicate of the paper copy of the SIP revision submittal as well as an additional data file supporting the submittal. The
additional data file is a compilation of public comments received and responses, referred to as a "Technical Support Document" (i.e., record ofrulemaking preambles and response to comments document)

, as well as copies of the

comments received on the rulemaking.

DISTRICT

# ~~**greenforward** DEPARTMENT

OF THE ENVIRO MENT 1200 First St. NE

, 5 th Floor

, Washiri.gton

, DC 2000 2 1 20 2 -535-2600 

### I ddoe.dc

. govSpecifically, I request that the following portions of Chapters 1 and 2 be approved as a SIP revision:

Section 199

- amend, add, and delete specific definitions and amend one definition for an acronym in the Chapter 1 SIP; Section 200- amendment thereof;
Section 204- entirely replace current section with revised section in SIP; Section 206 -repeal and reserve; Section 208

- add section to SIP; Section 21 0

- add section to SIP;
Section 299

- amend introductory language and add and amend specific definitions in Chapter 2 SIP;

These are the only portions of the rulemaking that the District of Columbia is requesting
be considered part of this SIP revision to address the Clean Air Act's requirements to reduce ground-level ozone levels and particulate matter, including precursor emissions of
NOx and VOCs. Section 209, which was added as a part of the same rulemaking action, is not being submitted as a SIP revision.

Should you have any questions or require additional information, please contact me at (202) 535-2615, or Ms

. Cecily Beall, Associate Director for the Air Quality Division, at (202) 535-2626.

Si

ith A. An erson Acting Director

Enclosure

cc: Diana Esher, Director, Air Protection Division, EPA Region 3 Cecily Beall, Associate Director, Air Quality Division, DDOE

# 20 DCMR Chapter s 1 and 2 :



# New Source R eview

Technical Support Document

As of 11

. 16 .201 2

# CONTENT

The New Source Review regulation amendments were first published in the D.C. Register on February 17, 2012, at 59 DCR 001217

.



## Preambles :

Notice of Proposed Rulemaking

Posted: February 17, 2012 ( 59 DCR 001217

, D.C. Register ID 1942733 ) Hearing Date: March 19 , 201 2

Notice of Final Rulemaking

Posted: November 16, 2012 ( 59 DCR 0 13044 D.C. Register ID 4049670 )



## Response to Comments Documents:

Responses to Public Comments on Proposed Rulemaking ( November 16

, 201 2 )

# PreamblesNOTICE OF PROPOSED R ULEMAKING

Posted: February 17, 2012 (59 DCR 001217, D.C. Register ID 1942733 ) Hearing Date: March 19, 2012

The Director of the District Department of the Environment, pursuant to the authority set forth in sections 5 and 6(b) of t he District of Columbia Air Pollution Control Act of 1984, as amended, effective March 15, 1985 (D.C. Law 5

- 165; D.C. Official Code §§ 8

- 101.05 and 8

- 101.06(b) (2008 Repl.) ) ; section 107(4) of the District Department of the Environment Establishment Act of 2005, effective February 15, 2006 (D.C. Law 16

- 51; D.C. Official Code §

8

- 151.07(4) (2008 Repl.) ) ; Mayor's Order 98

- 44, dated April 10, 1998, and Mayor’s Order 2006

- 61, date d June 14, 2006, hereby gives notice of the intent to adopt the following amendments to Chapters 1 and 2 of title 20 (Environment) of the District of Columbia Municipal Regulations (DCMR) in not less than thirty (30) days from the date of publication of th is notice in the D.C. Register. Further, these rules shall not become effective until approved by the Council of the District of Columbia, or forty

- five (45) days after submission to the Council, not including Saturdays, Sundays, legal holidays, and days of Council recess, if the Council has not disapproved these rules.

SUMMARY

The New Source Review (NSR) program is a permit program created to help achieve and maintain compliance with the National Ambient Air Quality Standards (NAAQS) set by the

United S tates Environmental Protection Agency (EPA). The EPA has set NAAQS for six (6) “criteria” pollutants: ozone (O 3 ), particulate matter (PM), carbon monoxide (CO), nitrogen oxides (NO

x ), sulfur dioxide (SO 2 ), and lead (Pb). NSR applies to new and modified m ajor

emission sources that have the ability to significantly impact air quality or interfere with other programs created to achieve and maintain NAAQ S levels. The District is currently designated by EPA as being in “nonattainment” of the NAAQS for ozone a nd particulate matter. Nonattainment NSR requires more stringent emission standards for certain pollutants that exceed the NAAQS. Therefore, the District must have increased control measures for particulate matter and the precursor pollutants (mainly NO

x and volatile organic compounds) that create ozone.

Federal NSR Amendments

To meet the objectives above, t he proposed rules amend certain sections of the District’s air quality regulations that pertain to NSR. The proposed rules must also comply with fe deral requirements pertaining to the implementation of the District’s comprehensive air pollution control program . Since EPA amended certain federal regulations pertaining to NSR standards and requirements

, the proposed rules amend the District’s NSR regu lations in accordance with

the EPA requirements summarized below

.

EPA published amendments to the federal NSR rule on December 31, 2002. See 67 Fed. Reg.

8018 6 . The primary sections of the new rule changed the method for calculating a significant

incre ase, added a plantwide applicability limit, and created a clean unit exemption. For calculating pre

- project emissions, the federal rule replaced the “actual emissions” calculation,which was based on the previous twenty

- four ( 24 )

- month period, with a “baseline actual

emissions” calculation, which allowed the use of any consecutive twenty

- four ( 24 ) month period

within the last ten ( 10 ) years. Id

. at 80195. The federal rule also added the option of an actual

to

- projected

- actual em issions test in addition to the existing actual

- to

- potential emissions test for calculating post

- project emissions. Id

. at 80196. Due to concerns about the uncertainty of predicting emission levels, the federal rule also state d that when the “projected a ctual” emissions have a “reasonable possibility” of meeting or exceeding the significant level for that NSR pollutant, the owner or operator must comply with recordkeeping, and in some cases reporting requirements. Id

. at 80197.

The federal NSR amendme nts also adopted a plan t wide applicability limitation (PAL) and a “clean unit” exemption. The PAL allow ed a major modification or change to method of operation for an individual emission s unit to avoid triggering NSR if there was no net significant

increa se in the plantwide actual emissions of that pollutant. Id

. at 80206. The “clean unit”

program create d an exemption for facilities which ha d already installed certain emission controls either voluntarily or under a previous NSR determination

. Id

. at 8022 2.

New York and thirteen (13) other states, including the District, challenged t he federal NSR rule in the D.C. Circuit Court of Appeals . In its decision, the C ourt remanded the “reasonable possibility” standard for further clarification , vacated the clean unit (CU) provisions, and vacated the pollution control project (PCP) provisions that had been initially promulgated in 1991 and had been carried forward in the 2002 rule (57 Fed. Reg. 32314)

. See New York v. EPA, 413 F.3d

3 (D.C. Cir. 2005)

. Pursuant to the 2005 court order, EPA issued a final NSR rule on June 13, 2007, amending its regulations to eliminate the CU and PCP provisions. See 72 Fed. Reg

. 32526.

On December 21, 2007, EPA issued a final rule clarifying the definition of “reasonable possibility” with respect to the record

- keeping and reporting requirements. 72 Fed. Reg. 7260 7

. The rule finalized the “percentage increase” option, whereby if the “projected actual” emissions

are fifty percent (50%) or more of the significan t level for that NSR pollutant, then the “reasonable possibility” recordkeeping and reporting requirements are triggered. Id

. at 72609. The revised “reasonable possibility” requirements were not challenged.

Additional amendments to the NSR permitting program also faced legal challenges. On October 27, 2003, EPA promulgated the Equipment Replacement Provision (ERP) of the Routine Maintenance, Repair and Replacement Exclusion (RMRR) which provided that project s involving replacement of equipment not exceeding twenty percent (20%) of the replacement value of the total unit were considered “routine maintenance” and exempt from NSR permitting and air quality analysis requirements. 68 Fed. Reg. 61248. Fourteen (14 ) states, including the District of Columbia, several cities, counties and numerous environmental groups challenged the legality of the rule in the D.C. Circuit Court of Appeals, which subsequently stayed the rule on December 24, 2003. The Court ultimatel y struck down the ERP provision, finding that it was contrary to the plain language of section 111(a)(4) of the Clean Air Act. See New York v. EPA

, 443 F. 3d 880 (D.C. Cir. 2006).On February 27, 2006, EPA issued another final rule affecting the NSR prog ram by amending 40

CFR part 60, subparts Da, Db, and Dc, which established emission limitations for NO

x , SO 2 , and PM from electric utility steam generating units (EGUs). See 71 Fed. Reg . 9866. Twelve (12) states, including the District of Columbia, the c ity of New York, and several environmental groups challenged the Final Rule on both the stringency of its emission limitations and its failure to regulate greenhouse gases (GHGs). Following the Supreme Court’s decision in

Massachusetts v. EPA , 549 U.S. 49 7 (2007), EPA requested a remand of the final rule for reconsideration of the GHG emissions issue, which the D.C. Circuit Court of Appeals granted on September 24, 2007. See State of New York, et al. v. EPA, No. 06

– 1322 (September 24, 2007). EPA also req uested a remand on determination of the emission limitations for NO

x , SO 2 , and PM, which the Court granted on September 4, 2009. See State of New York, et al. v. EPA, No.

06

– 1148 (September 4, 2009). On December 30, 2010, EPA published a notice of proposed settlement agreement, whereby it committed to signing a proposed rule to regulate GHGs from EGUs by July 26, 2011, and to take action on the final rule by May 26, 2012. See 75 Fed. Reg

. 82392.

On September 14, 2006, EPA published a proposed amendment to the NSR permitting program to address “debottlenecking, aggregation, and project netting.” See 71 Fed. Reg . 54235. EPA

propos ed changes to how NSR applies to the modification of one portion of a facility in such a manner that production or throughput in other unchanged portions of the facility increases, a type
of modification known as a “ debottlenecking" project. Under the proposed amendments

, unchanged portions of the facility would not be su bject to NSR if emissions from those portions have already been taken into account in a prior permit or regulatory action. Id . at 54241. EPA also proposed a clarification to NSR to allow multiple projects that are implemented at a facility

to be treated as a single project ( such as, aggregated) if one project is dependent on another. Id

. at 54244. Finally, EPA proposed to simplify a step in the calculation used to determine whether NSR applies when emissions increases and decreases are added together (ca lled "netting"). The netting process c onsiders certain previous and prospective emission changes at an existing maj or

source to determine if a net emissions increase of a pollutant will result from a proposed project

. Id . at 54248. On January 15, 2009, EPA published notices finalizing the aggregation portion of the rulemaking and withdrawing the debottlenecking portion. See 74 Fed. Reg . 2376 and 74 Fed. Reg . 2460.

District NSR Amendments

The se proposed rules are a combination of EPA’s NSR amendments as they have evolved in response to the litigation and different NSR options drafted by the National Association of Clean Air Agencies (NACAA, formerly STAPPA and ALAPCO

– State and Territorial Air Pollution Program Administrators (STAPPA) ) and the Association of Local Air Pollution Control Officials (ALAPCO)). The NSR provisions drafted by NACAA are more stringent than the federal NSR rules and they were designed to control regulated NSR pollutants more than the federal rules. Since the District is in nonattainment for ozone and particulate matter, these proposed NSR rules are more stringent than the federal NSR rules in an effort to reduce the emissions of particulate matter and the ozone precurso r pollutants, NO

x and volatile organic compounds.Specifically, t he se proposed rules do not adopt the federal amendments that replace the “actual

emissions” calculation with a “baseline actual emissions” calculation. The “baseline actual

emissions” cal culation allows a ten (10) year “look back” period with the ability to use different
twenty

- four ( 24 ) month periods to calculate the emissions of each regulated pollutant separately. This would allow a source to calculate its pre

- construction emissions ba sed on the highest level of emissions in any twenty

- four ( 24 ) month period over the past ten (10) years for each pollutant separately and those amounts would be compared to the amounts that will be emitted from a new

or modified source to determine if NSR was required. In the alternative, t he se proposed rules are more stringent in that they only allow a five (5) year “look back” period wherein any consecutive
twenty

- four ( 24 ) month period can be used to calculate the actual emissions of all regulated NSR

p ollutants at the same time

. Since different pollutants can have higher emission rates at different times, these proposed rules are more stringent by decreasing the “look back” from ten (10) to (5) years and requiring that the same twenty

- four (24) month p eriod be used to calculate all of the regulated NSR pollutants.

These proposed rules do not adopt the federal actual

- to

- projected

- actual emissions test and

instead retain an actual

- to

- potential emissions test for calculating post

- project emissions. This is more stringent because potential emissions often include the maximum capacity of a source and are more certain than projected actual emissions (which means that comparing new or modified sources to potential emissions as opposed to projected emissions i s more likely to trigger NSR and require increased control of regulated pollutants). Because these proposed rules do not allow a source to project future actual emissions, the “reasonable possibility” requirements do not apply.

In relation to federal NS R, these proposed rules make many minor changes that help clarify calculations and compliance requirements for the District’s NSR program and they include the adoption of a PAL permit.

The proposed changes discussed above are reflected in the se proposed rules by: a mend ing and deleting de finitions in 20 DCMR § 199.1 that pertain specifically to NSR, and add ing new definitions in 20 DCMR § 299.1 ; amending the requirements for NSR permits in 20 DCMR §

204 ; and add ing PAL permits in 20 DCMR § 208 for major s ources that want the flexibility to make minor changes at the facility without triggering NSR.

In addition, these proposed rules add minor new source review standards in 20 DCMR § 209 that would affect sources that have a potential to emit equal or greater than five tons per year (5 Tpy) and change the notice and comment requirements in 20 DCMR § 210

. The minor new source review standards will require smaller sources to reduce emission s by operating control technologies or using pollution prevention methodologies. The proposed notice and comment changes will allow greater flexibility for public notification of permits issued under chapter 2 of title 20 of the DCMR, such as posting on t he DDOE website.

Additionally, these proposed rules clarify that operating permits issued under 20 DCMR § 200 must be renewed upon expiration to allow continued operation of the source. At the same time, these proposed rules would reduce the frequenc y of required renewals by extending the allowable effective duration of a permit from three (3) to five (5) years. This would reducepaperwork burdens for both the regulated community and DDOE without significantly reducing

the effectiveness of the air qu ality program.

Finally, these proposed rules also establish source category permits (commonly referred to as “general permits” in other jurisdictions) that will allow DDOE to issue a single permit for groups

of similar sources. Individual sources will be able to apply for coverage under the source category permit rather than establishing a new permit specific to their source. This change would benefit both permit applicants and DDOE by reducing the processing time of permits and improving the consistency of requirements established for each source within each covered
source category.

Comments on these proposed rules must be submitted electronically or in writing, no later than thirty (30) days after the date of publication of this notice in the D.C. Register

. Written

comments must be submitted to Ms. Cecily Beall, District Department of the Environment, Air Quality Division, 1200 First Street, NE, 5 th Floor, Washington, D.C. 20002 or cecily.beall@dc.gov or (20 2) 535

- 2600

.

DDOE’s policy is that public comments, whether mailed, delivered, submitted electronically on computer disks or in paper, will be made available for public viewing on its website as DDOE receives them and without change, unless the comment contains copyrighted material, confidential business information, or other information whose disclosure is restricted by sta tute. When DDOE identifies a comment containing copyrighted material, DDOE will provide a reference to that material on the website. The copyrighted material will be available in hard copy to the public.NOTICE OF FINAL RULEMAKING

Posted: Novembe r 16, 2012 , at 59 DCR 0 13044 (D.C. Register ID 4049670 )

The Director of the District Department of the Environment, pursuant to the authority set forth in sections 5 and 6(b) of the District of Columbia Air Pollution Control Act of 1984, as amended, effective March 15, 1985 (D.C. Law 5

- 165; D.C. Official Code § § 8

- 101.05 and 8

- 101.06(b) (2008 Repl.) ) ; section 107(4) of the District Department of the Environment Establishment Act of 2005, effective February 15, 2006 (D.C. Law 16

- 51; D.C. Official Code §

8

- 151.07(4) (2008 Repl.) ) ; Mayor's Order 98

- 44, dated April 1 0, 1998, and Mayor’s Order 2006

- 61, dated June 14, 2006, hereby gives notice of adoption of the following amendments to Chapters 1 and 2 of title 20 (Environment) of the District of Columbia Municipal Regulations (DCMR). As required by section 6 (b) of the District of Columbia Air Pollution Control Act

, prior to the issuance of a Notice of Final Rulemaking, this rulemaking was submitted to the Council of the District of Columbia (Council) for a review period of up to forty

- five (45) days.

The Notice of Final Rulemaking was deemed approved by the Council on November 1, 2012

.

The New Source Review (NSR) program is a permit program created to help achieve and maintain compliance with the National Ambient Air Quality Standards (NAAQS) set by the

United States En vironmental Protection Agency (EPA). The EPA has set NAAQS for six (6) “criteria” pollutants: ozone (O 3 ), particulate matter (PM), carbon monoxide (CO), nitrogen oxides (NO

x ), sulfur dioxide (SO 2 ), and lead (Pb). NSR applies to new and modified major

emi ssion sources that have the ability to significantly impact air quality or interfere with other programs created to achieve and maintain NAAQ S levels. The District is currently designated by EPA as being in “nonattainment” of the NAAQS for ozone and parti culate matter. Nonattainment NSR requires more stringent emission standards for certain pollutants that exceed the NAAQS. Therefore, the District must have increased control measures for particulate matter and the precursor pollutants (mainly NO

x and vol atile organic compounds) that create ozone.

Proposed regulations were published in the D.C. Register on February 17, 2012 , at 59 DCR

001217. T he comment period officially closed on March 19 , 20 12

, with the Department having

received comments from four (4) members of the regulated community, JBG Companies (JBG), the U.S. Department of Defense (DOD), the U.S. General Services Administration (GSA), and the D.C. Water and Sewer Authority (DC Water)

. The Department considered these comments and posted respon ses on its website on November 16, 2012; however the Department has elected not to incorporate the commenters’ suggested changes and is therefore proceeding with this final rulemaking. The Department has made five (5) clarification amendments, which the Of fice of the Attorney General determined are non

- substantive in nature and therefore do not necessitate reproposal. Section 200.3 is amended to replace the word “forms” with “for” and the phrase “of this chapter” is added after “in accordance with the requi rements”. These changes reflect the previous wording of § 200.3, which the Department did not intend to change through the proposed rulemaking but was altered due to a drafting error. Section 200.5 is amended to add the language
“construction or” after “ in cluding applications for renewal of any ” and to add the language
“construction activities or” before “ operations are to continue beyond the expiration date ”. These amendments are made in response to comments requesting clarification whether the permit

rene wal requirements apply to construction permits. Section 209.1(b) is amended to add thelanguage “from an individual unit” after “[r]esults in an increase of the potential to emit rate

equal to or greater than five tons per year (5 Tpy)”. This amendment is intended to clarify that the Department determines minor NSR applicability on a unit

- by

- unit basis, not through project aggregation. Two (2) commenters requested clarification on this issue.

The Department received several significant comments regarding t he proposed rules’ departure from the federal nonattainment NSR rule, specifically with respect to the calculation of actual emissions and PAL baseline emissions, and the test for determining NSR applicability. All four commenters noted that the District p roposed an “actual

- to

- potential” test for major NSR applicability, whereas the federal rule applies an “actual

- to

- projected

- actual” test. The

commenters noted that the actual

- to

- potential test would subject a large number of projects to NSR requirements ev en if they only resulted in a minor increase in actual emissions. The commenters suggested that the District follow the federal rule’s actual

- to

- projected actual test. The Department is very familiar with the federal NSR rule and has submitted numerous dra fts of its own proposed rule to EPA for comment, and determined that the actual

- to

- potential test is more protective of air quality in the District. The District’s rule is intended to encourage

industries to use state

- of

- art technologies to limit their pot ential to emit below the NSR threshold when undergoing modifications, and in the event that this is not possible, to use the opportunity when they are already making changes to install the most effective pollution control technology

and reduce overall emis sions in the District through offsets. Therefore, the District has retained

the actual

- to

- potential test.

Two comments were received on the definition of “actual emissions” proposed in § 199. The federal nonattainment NSR rule permits sources to select an y consecutive twenty

- four (24) month period within the previous ten (10) years when calculating the source’s actual emissions, and also to choose a different twenty

- four (24) month period for each regulated pollutant. The District’s rule requires sources t o use the “ the twenty

- four (24) month period which precedes the particular date” when calculating the actual emissions, unless it makes a determination that a different time period within the last five (5) is more representative of operations. Two

commente rs requested that DDOE follow the federal NSR rule by allowing sources to use the ten (10) year “look back” period and also to choose different periods for each regulated pollutant. The Department has considered these comments and decided to retain the met hod for calculating actual emissions as proposed because it is more stringent than the federal rule and therefore more protective of air quality in the District. The look back period proposed by the District is intended to capture the emissions levels that are representative of current operations at the source, rather than permitting the source to just pick the twenty

- four (24) months when emissions where highest in the last ten (10) years. In addition, the requirement that sources use the same “twenty

four ” month period for each pollutant is intended to prevent sources from choosing the highest baseline for each pollutant, and therefore will result in a more stringent limit on overall

emissions.

Three commenters had similar concerns about the method for ca lculating Plantwide Applicability Limit (PAL) baseline emissions. These commenters requested clarification on why the District proposed a more stringent method for determining the PAL baseline period than the federal nonattainment NSR requirements, and sug gested that it follow the federal rule. The proposed rule uses the immediately preceding two (2) calendar years for the PAL baselineperiod, unless the Department determines that a different twenty

- four (24) month period within

the previous five (5) years is more representative of normal source operations. The federal rule permits a source to use any consecutive twenty

- four (24) month period within the previous ten (10) years. The District proposed a five (5) year look back period instead of a ten (10) year look back to limit a source’s potent ial to find a higher baseline. The Department has determined that this method is more protective of air quality in the District, because a lower baseline will also

result in a lower PAL for the source and therefore like ly lower actual emissions. Therefore, the

District retained the definition of “PAL baseline period” as proposed. The federal rule also permits sources to select a different PAL baseline period for each PAL pollutant, whereas the District’s rule provides le ss flexibility. One commenter requested that the District allow the selection of different baseline periods for different pollutants, as in the federal rule. Because the PAL baseline period is generally going to be the immediately preceding two (2) calenda r years, if a source applies for different PALs at different times, the baseline period will likely be different for each pollutant. (An exception would be if the Department determines that a different
twenty

- four (24) month period is more representative o f normal source operations.) If a source applies for multiple PALs at the same time, then the baseline period for each PAL would be the

same. Re stricting sources to one baseline is intended to prevent a source from selecting the highest baseline for each r egulated pollutant, and therefore will also result in a lower PAL and be more protective of air quality in the District. Therefore, the District has retained the proposed method for determined the PAL baseline period.

Three commenters sought clarification on whether the public notice and comment procedures proposed in § 210 would allow the Department to issue synthetic minor permits, and if so, would the Department confirm whether it intends to issue such permits. The Department recognizes the

need for a s ynthetic minor program and agrees that the public notice and comment provisions in § 210 will be sufficient to support such a program when it does create one in the future.
However, the District will not have the resources to implement a synthetic program until it

creates a fee sch edule for 20 DCMR c hapter 2 p ermits and amends the fees for 20 DCMR

c hapter 3 permits. The synthetic minor program will be created at the same time as these fee amendments through a separate rulemaking action.

Three commenters requested that the Department clarify whether a deviation report required under § 208.35(b) is considered prompt if it complies with the overarching semi

- annual reporting requirement of the proposed section. Deviation reports must be submitted in accordan ce with the requirements specified in the source’s permit and 20 DCMR § 302.1(c)(3). While this will mean that many deviation reports are considered prompt if they are submitted with the source’s semi

annual reports, some deviations may be required to be r eported sooner, such as deviations resulting from an emergency or that pose an imminent and substantial danger to public health.

Two commenters requested that the District expand the list of exempted sources under § 200 .12. One commenter requested that th e District create an exemption for temporary, portable sources, such as portable generators. Another commenter requested that the District add general language that it will develop a list of exempted sources and physical changes

, and publish this list for thirty ( 30 ) days of public comment in the D.C. Register

. The Department recognizes that there may be a need to exempt addition al sources from the 20 DCMR c h apter 2 permitting requirements; however it does not intend to address additional exemptions through the currentrulemaking. However, it is the Department’s policy that it does not consider portable generators

to be a “stationary source” subject to the requirements of § 200 provided they do not remain in

one location for more than twelve ( 12 ) consecutive months. This is consistent with the definition

of “ stationary source ” in the federal Clean Air Act, which does not include emissions from a nonroad engine. 42 U.S.C. § 7603(z). The term “nonroad engine” is defined by the U.S. Environmental Protection Ag ency (“EPA”) as including “any internal combustion engine ... [t]hat, by itself or in or on a piece of equipment, is portable or transportable, meaning designed to be and capable of being carried or moved from one location to another,” but not including an

e ngine that “remains or will remain at a location for more than 12 consecutive months.” 40 C.F.R. § 89.2.

The Department also received comments on the proposed Minor New Source Review program proposed in § 209. One commenter asked the District to conside r a higher applicability threshold. One commenter suggested that the District consider dropping the minor NSR program altogether . The commenter argued that the program effectively lowered the major source and major modification threshold to five ( 5 ) tons p er year ( tpy )

. The Department disagrees with this characterization of the minor NSR program. Minor NSR provides more flexibility with respect to the required control technologies than major NSR and does not require that emissions increases

be offset. Also, minor NSR applicability is determined through a potential

- to

- potential test rather

than an actual

- to

- potential test and therefore is less stringent. The intent of the minor NSR program is to discourage sour ces from installing used emissions units with out dated pollution control technologies, and instead require them to install new state

- of

- the

- art equipment. The same commenter also requested that the Department publish a manual detailing the state

- of

- the

art (SOTA) technology requirements for compliance wi th minor NSR. The Department does not have the resources at this time to publish such a manual , therefore compliance with the requirements of § 209 will be determined on a case

- by

- case basis for the time being

. The Department may consider publishing a docu ment that provides guidance on SOTA at a future

date.

Two commenters sought clarification on whether minor NSR applicability was determined on a

unit

- by

- unit basis or whether the use of the word “project” and the reference to “collateral emissions increases” imply that the Department will aggregate emissions units. The Dep artment clarifies that minor NSR applicability is determined on a unit

- by

- unit basis. The term “project” as defined in § 199 is only applicable to major sources and the language “that results in collateral emissions increases” is intended to clarify when i nstallation or modification of a pollution
control device would trigger minor NSR applicability. For new sources or modifications to existing sources, collateral emissions increases will not be considered.

# Response t o Comments

Document20 DCMR C HAPTE RS 1 AND 2 : Proposed Rulemaking to Amend New Source Review (“NSR”) Permitting Program

COMMENT PERIOD: F EBRUARY 17, 2012 TO M ARCH 19, 2012

Response to Comments*

* Please note that the comments in this document are paraphrased . Copies of the original comments are posted at http://green.dc.gov/

.

The District Department of the Environment (“the Department”) proposed regulations to amend the New Source Review (“NSR”) permitting program on February 17, 2012. 59 DCR 001217. The comment period officially closed on March 19, 2012, with the Department having received comments from four (4) mem bers of the regulated community: JBG Companies (“JBG”), the U.S. Department of Defense (“DOD”), the U.S . General Services Administration (“GSA”), and the D.C. Water and Sewer Authority (“DC Water”). The comments and the Department’s responses are compiled below.

1. Include a synthetic minor permit provision or clarify that the Department can issue synthetic minor permits under the current structure (JBG; GSA; DC Water). Several commenters requested that the Department implement a synthetic minor permitting program. Two commenters suggested the new notice and comment provisions in § 210 would permit the Department to begin implementing such a program. The Department recognizes the need for a synthetic minor program and does intend to create such a program in the future. However, th e Department will not have the resources to do this until it creates a fee schedule for chapter 2 permits and amends the fees for chapter 3 permits. The synthetic minor program will be created at the same time as these fee amendments through a separate rul emaking action.

2. Make the applicability threshold consistent with adjacent jurisdictions within the same

non
- attainment area (JBG). One commenter noted that the District’s proposed rule is more stringent than the federal nonattainment NSR rule and the rules of the neighboring

non

- attainment jurisdictions of Maryland and Virginia. Specifically, the commenter noted

that the District’s proposed rule has a major NSR applicability threshold of twenty

- five (25) tons per year of NOx and volatile organic compounds (V OCs), whereas Virginia has a major source threshold of one hundred (100) tons per year for NOx and fifty (50) tons per year for VOCs. The Department has determined that a lower applicability threshold is more protective of air quality in the District, and is also legally required in order to comply with the anti

- backsliding prohibition in § 172(e) of the federal Clean Air Act (42 U.S.C. § 7502), due to the District’s former designation as being in “severe”

nonattainment for the 1

- hour ozone standard. See So uth Coast Air Quality Mgmt. Dist. v. EPA, 472 F.3d 882, 902 (D.C. Cir. 2006).

3. Replace the actual

- to

- potential test with an actual

- to

- projected actual test (JBG; GSA; DC Water; DOD). All four commenters noted that the District proposed an “actual

- to

potential” test for nonattainment NSR applicability, whereas the federal rule applies an
“actual

- to

- projected actual” test. These commenters noted that the actual

- to

- potential test would subject a large number of projectsto NSR requirements, even though they may only result in a slight increase in actual emissions. The commenters argue that this would be overly burdensome. One commenter stated that use of the actual

- to

- potential testwould put District businesses at a disadvantage compared to Virginia and Maryland,

which employ the actual

- to

- projected actual test. One commenter noted that EPA deemed

the actual

- to

- potential test overly broad in its 2002 NSR reform rule. All commenters suggested that the District follow the federal rule actual

- t o

- projected actual test. The Department is very familiar with the federal NSR rule and has submitted numerous drafts of its own proposed rule to EPA for comment, and determined that the actual

- to

- potential test is more protective of air quality in the Dist rict. The District has elected to be more stringent than the federal rule and its neighboring jurisdictions in this respect. The actual

to

- potential test is intended to encourage industries to use state

- of

- art technologies to limit their potential to emit below the NSR threshold when undergoing modifications, and in the event that this is not possible, to use the opportunity when they are already making changes to install the most effective pollution control technology and reduce

overall emissions in the Di strict through offsets. Therefore, the District has retained the

actual

- to

- potential test.

4. Determination of actual emissions should be consistent with the federal rule (GSA; DC Water). Two commenters requested that the District follow the federal NSR rule by allowing sources to select any consecutive 24

- month period during the previous 10 years for establishing the source’s baseline actual emissions and also by allowing sources to

use different 24

- month periods for different regulated pollutants. The Distri ct’s proposed rule requires sources to use the 24

- month period preceding the date of the permit application, unless another 24

- month period within the previous 5 years is more representative of normal source operations. The District incorporated a 5

- year “ look
back” instead of a 10

- year look back in order to limit a source’s potential to find a higher baseline. The proposed look back is also intended to be more representative of current operations at the source, rather than permitting the source to just pic k the 24

- month period when emissions where the highest. Two commenters also requested that the

District allow sources to use different 24

- month periods for each pollutant, as allowed by the federal rule. The current proposed rule requires the source to use the same 24

- month period for all pollutants. Restricting sources to one baseline is intended to prevent a source from selecting the highest baseline for each regulated pollutant. The District’s rule is inherently more restrictive, rather than equivalent t o, the federal rule. The Department is very familiar with the federal NSR rule and has submitted numerous drafts of its own proposed rule to EPA for comment, and has determined that the proposed 5

- year look

back period is more protective of air quality in the District, as is requiring sources to use

the same 24

- month period for each pollutant. Therefore, the District has retained the method for determining actual emissions as proposed.

5. The determination of PAL baseline emissions should be consistent with th e federal rule (GSA; DC Water; DOD). Several commenters requested that the District clarify why it proposed a more stringent method for determining the PAL baseline period than the federal requirements, and suggested that it follow the federal rule. The Di strict’s proposed rule uses the immediately preceding 2 calendar years for the PAL baseline period, unless the District determines that a different 24

- month period within the previous 5 years is more representative of normal source operations. The federal rule permits a source to use any consecutive 24

- month period within the previous 10 years. The District only allows a 5

- year look back instead of a 10

- year look back in order to limit a source’s potential to find a higher baseline. The lower baseline will result in a lower PAL andtherefore likely also lower actual emissions. The federal rule also permits sources to

select a different PAL baseline period for each PAL pollutant, whereas the District’s rule provides less flexibility. One commenter requested t hat the District allow the selection of different baseline periods for different pollutants, as in the federal rule. Because the PAL baseline period is generally going to be the immediately preceding two (2) calendar years, if a source applies for differen t PALs at different times, the baseline period will likely be different for each pollutant. (An exception would be if the Department determines that a different twenty

- four (24) month period is more representative of normal source operations.) If a source applies for multiple PALs at the same time, then the baseline period for each PAL would be the same. Re stricting sources to one baseline is intended to prevent a source from selecting the highest baseline for each regulated pollutant, and therefore will al so result in a lower PAL and be more protective of air quality in the District. Therefore, the District has retained the proposed method for determined the PAL baseline period.

6. The renewal time period for chapter 2 permits should be eliminated (JBG). One

commenter commended the District on extending the renewal period for chapter 2 permits from 3 years to 5 years, however also recommended that the Department eliminate the expiration of chapter 2 permits altogether. The Department has considered

this commen t, and determined that the expiration period is necessary in order to reassess permits from time to time and ensure that all of the applicable requirements are included and that the permit is up to current standards. The 5 year period is also consistent wi th the

duration of a 20 DCMR chapter 3 permit, which will help streamline permitting

processes. 7. Clarify the PAL effective date (GSA). One commenter noted that a PAL becomes

effective on the date of issuance but that an increased PAL becomes effective on th e date that the emissions unit that is part of the PAL major modification becomes operational.

See § 299 definition of “PAL effective date” and § 208.23(b). The commenter requested clarification on whether an initial PAL application is considered an increa sed PAL or whether an increased PAL only applies if an existing PAL is increased. The Department clarifies that an increased PAL only applies if an existing PAL is increased.

8. Clarify whether a source may have multiple PALs (GSA). One commenter noted that § 208.6(e) states that each PAL may regulate only one pollutant and requested clarification whether a facility may obtain separate PALs at one time for different pollutants. The Department clarifies that a facility may obtain multi ple PALs covering different pollutants at the same time.

9. Extend the PAL effective period to 10 years (GSA). One commenter requested that the

District follow the federal PAL effective period allowance of 10 years, rather than the current proposed period of 5 years. The Department has considered the federal rule in development of § 208 and determined that a 5 year period is more appropriate because it is consistent with the effective period for 20 DCMR chapter 2 and chapter 3 operating permits.

10. Clarify the P

AL deviation reporting requirements (GSA; DC Water; DOD). Three commenters requested that the Department clarify whether a deviation report required under § 208.35(b) is considered prompt if it complies with the overarching semi

- annual reporting requiremen t of the proposed section. Deviation reports must be submitted in accordance with the requirements in the source’s individual permit, which will beconsistent with the requirements of 20 DCMR § 302.1(c)(3) and other reporting

requirements deemed necessary under 20 DCMR § 500.1. While this means that some deviation reports may be considered prompt if they are submitted with the source’s semi

annual reports, many deviations may require reporting sooner, such as those resulting from an emergency or deviations that pose an imminent and substantial danger to public

health. The Department currently includes the specific reporting requirements in its operating permits and also intends to incorporate these requirements in the PAL permit.

11. The authority to reopen a PA L should be discretionary and the reasons for reopening a PAL should be clarified ( DC Water

; DOD). Section 208.12(d) requires the Department to reopen a PAL permit if a reduction in the PAL is “necessary to avoid causing or contributing to a NAAQS or PSD i ncrement violation, or to an adverse impact on an air quality related value that has been identified for a Federal Class I area”. One commenter suggested that the authority to reopen a PAL for this reason should be discretionary, rather than mandatory, as permitted under the federal regulation. The Department has considered the federal rule in the development of § 208 and determined that a threat to the District’s NAAQS attainment should be a mandatory reason for reopening a PAL permit. One commenter reques ted that the Department clarify the conditions for which a reduction is necessary pursuant to § 208.12(d). The Department modeled the proposed language regarding reductions of the PAL after the federal rule (40 C.F.R. § 51.165(f)(8)(ii)(B)( 3 )) and therefor e does not agree that it needs clarification. Determinations under § 208.12(d) will be made on a case

- by

- case basis, but will most likely be made in response to modeling that demonstrates a source is causing or contributing to a NAAQS or PSD violation.

12. All ow applicants to petition the Department for clarification of the rationale for establishing a new PAL level or provide additional information to suggest an alternative PAL level (DOD). One commenter noted that the Department is permitted to

set the PAL at a different level in the renewed permit pursuant to § 208.20. The commenter requested that the District add language allowing applicants to comment or seek clarification on the revised PAL level prior to the public comment period. The Department does not a gree that this language is necessary because it intends to engage permit applicants informally throughout the permitting process to the extent that it is practical. In addition, the proposed procedures are consistent with other 20 DCMR chapter 2 permitting procedures and adding an extra formal step would unduly delay the permitting process. If the applicant’s concerns are not fully addressed prior to issuance of the draft permit then they may use the public comment period to express them.

13. Clarify vague requ irements in the provisions on source category permits (JBG). One commenter requested clarification on whether source category permits were intended to be federally enforceable, and if so whether an existing major source could obtain a source category permi t as an alternative to a 20 DCMR chapter 3 permit. The District intends to submit § 200 to the U.S. Environmental Protection Agency (EPA) as a revision to the District’s State Implementation Plan (SIP), therefore source category permits will be federally e nforceable. However, the Department does not intend to use these permits as a substitute for chapter 3 permits. As stated in § 200.6(d), a chapter 2 source category permit is not a substitute for a permit required under chapter 3. (Section 302.4 of the air quality regulations creates a separate “general permit” that may substitute for Part 70 permits for particular source categories. This is a different permit with differentrequirements than the source category permits established in chapter 2.) The commen ter

also asked whether § 200.6(e) means that a source category permit does not require the 30 day public notice and comment period specified in § 210.4(f). The 30 day public notice period is required for the initial establishment of the source category per mit, but not as it is issued to each individual source, therefore source category permits that have a passive approval period established pursuant to § 200.6(e) will not be subject to the 30 day notice requirement.

14. Clarify vague requirements in the applic ation fees provision (JBG). One commenter requested that the District spell out the process for establishing application fees under § 200.10 more clearly. The District does not currently have a fee structure in place for 20

DCMR chapter 2 permits and plans to address application fees in the future through a separate rulemaking action.

15. Clarify definition of “construction” (JBG). One commenter requested that the Department clarify which activities are allowed prior to obtaining a construction permit.

The com menter references the definition of “begin actual construction” under the federal Prevention of Significant Deterioration (PSD) regulations. 52 C.F.R. § 52.21 (b)(11).

This definition mirrors the federal nonattainment NSR definition in

40 C.F.R. § 51.165(a )(1)(xv). The air quality regulations have a preexisting definition of “begin actual construction” under § 199, which is consistent with the federal definition, therefore further clarification is not necessary.

16. Clarify permit requirements for demolition of sources (JBG). One commenter requested that the Department clarify whether § 200.1 requires a permit before demolition of a source, because demolition is included in the definition of “construction”. The permit requirements of § 200.1 do not apply to the demolition of sources. The chapter 2 construction permitting requirements apply to the construction of new sources and modifications of existing sources. Demolition of an existing source would not be considered construction of a “new” source and the propos ed definition of “modification” in § 199 explicitly exempts the decommission or removal of existing sources.

17. Clarify permit requirements for operation of a temporary source (JBG). One commenter requested clarification on whether the Department intends to i ssue a separate construction and operating permit under §§ 200.1 and 200.2 when the Department allows for the temporary operation of a source pursuant to § 200.3. The requirements of these sections are not being amended by the current rulemaking; however, the Department clarifies that a permit applicant would still be required to submit the application for a construction and operation permit at the same time. Section 200.3 is only intended to serve as a temporary substitute for a permit to operate under § 2 00.2, in the event that the Department does not issue the construction and operation permit at the same time and time is needed to evaluate the operation of a source prior to issuance of an operation permit under § 200.2 or in the case where a timely permi t application to operate has been received, but “due to delays attributable to the Mayor, the permit has not been issued” in a timely fashion.

18. Expand exempted sources under § 200.12 (JBG; DC Water ). Two commenters requested

that the District expand the list of exempted sources under § 200.12. One commenter requested that the Department create an exemption for temporary, portable sources, such as portable generators. Another commenter requested that the Department add general language that it will develop a l ist of exempted sources and physical changes and publishsuch list for 30 days of public comment in the DC Register. The Department recognizes

that there may be a need to exempt additional sources from the chapter 2 permitting requirements and may consider adding such exemptions at future date ; it does not intend to address additional exemptions through the current rulemaking. However, it is the Department’s policy is that it does not consider portable generators to be a “stationary source” subject to the r equirements of § 200 provided that it does not remain in one place

for more than 12 consecutive months and is not replaced by a similar unit used for the same purpose to avoid the 12

- month trigger . This is consistent with the definition of stationary sourc e in the federal Clean Air Act, which does not include emissions from a nonroad engine. 42 U.S.C. § 7602(z). The term “nonroad engine” is defined by the EPA as including “any internal combustion engine ... [t]hat, by itself or in or on a piece of equipment , is portable or transportable, meaning designed to be and capable of being carried or moved from one location to another,” but not including an engine that “remains or will remain at a location for more than 12 consecutive months or a shorter period of

ti me for an engine located at a seasonal source.” 40 C.F.R. § 89.2.

19. Reconsider the minor NSR program ( DC Water

). One commenter suggested that the District drop the proposed minor NSR program under § 209. The commenter argued that the program effectively lowered the major source and major modification threshold to 5 tpy. The Department disagrees with this characterization of the minor NSR program. Minor NSR provi des more flexibility with respect to the required control technologies than major NSR and does not require that emissions increases be offset. Also, minor NSR applicability is determined through a potential

- to

- potential test rather than an actual

- to

potent ial test. The intent of the minor NSR program is to discourage sources from installing used or other substandard emissions units with outdated pollution control technologies, and instead require them to install new state

- of

- the

- art equipment.

20. Change the pr oject PTE threshold for minor NSR sources (JBG). One commenter requested that the District change the applicability threshold for minor NSR under § 209. The commenter stated that this threshold could require a source to reduce its actual emissions by insta lling control technologies or using pollution prevention methods on small emission sources that aggregate to make up a “project”. The Department disagrees that this scenario will occur. The minor NSR threshold only relates to an increase in the source’s p otential to emit rate, and therefore would not require any source to reduce its actual emissions. In addition, the Department only intends minor NSR to apply to individual pieces of equipment, so it will not aggregate small pieces of equipment when

determi ning applicability.

21. Clarify Minor NSR a pplicability (JBG; DC Water ). Two commenters requested that the Department clarify whether minor NSR applicability is determined based on individual pieces of equipment or whether it was intended to aggregate multiple pieces of equipment into a “project”. One commenter requested that the Department do this through the addition of a definition for “project” that would apply to § 209, the other requested that the Department clarify the meaning of “collateral emissions in crease”. The Department only intends minor NSR to apply to individual pieces of equipment, so it will not aggregate small pieces of equipment when determining applicability. This has been clarified in § 209.1(b).

22. The Department should publish a manual of state of the art pollution controls for the minor NSR provision (

DC Water

). One commenter requested that the Departmentpublish a manual of “state of the art” (SOTA) performance levels for compliance with §

209, as done by the New Jersey Department of Envi ronmental Protection. The Department appreciates this suggestion, however does not have the resources at this time to publish such a manual, therefore compliance with the requirements of § 209 will be

determined on a case

- by

- case basis. The Department may consider publishing a document that provides guidance on SOTA at a future date.

23. Clarify whether LAER applies to “affected emissions units” (GSA). One commenter asked whether the requirement to install LAER applies to “affected emissions units” or

whether e missions from these units are just used to calculate NSR applicability. The Department clarifies that emissions from an emissions unit that is affected by the project, as described in § 204.6(d), are factored into the applicability determination, however t he emissions unit itself is not required to install LAER. This is consistent with the federal interpretation. See EPA Memorandum from Director Division of Stationary Source

Enforcement : Determination of Emission Points Subject to LAER, dated September 30,

1977.

24. Clarify how minor NSR applies to emergency generators and fire pumps (GSA). One commenter requested clarification on how minor new source review would apply to sources such as emergency generators and fire pumps that are typically limited in their

pe rmits to 500 hours per year of operation. To the extent that EPA has an established policy considering such hourly limitations a limit on the source’s potential to emit (PTE), as is the case for emergency generators, the Department will consider these limi tations when determining minor NSR applicability. See EPA Memorandum from John S. Seitz, Director, Office of Air Quality Planning and Standards : Calculating Potential to Emit (PTE) for Emergency Generators, dated September 6, 1995. However, the Department emphasizes that the chapter 2 permit does not establish the limitation on PTE, rather the operational limitations are considered inherent limits on the PTE. Therefore, this should not be construed as creation of a synthetic minor permitting program. 25. Clarif y minor NSR control technology requirements (GSA). One commenter sought clarification on whether minor NSR technology requirements where determined on a pollutant

- by

- pollutant basis or “by the project”. Section 209.3 states that the operating

emission cont rol technologies or pollution prevention methodologies shall be applied “relative to each pollutant for which [the source] meets the applicability requirements.” Therefore, the technology requirements shall be determined on a pollutant

- by

- pollutant

basis.

26. Clarify permit renewal requirements and prohibition on operating without a permit (GSA; DC Water

). Two commenters requested clarification on whether the requirement to submit a timely permit renewal application under § 200.5 applies to both construction

an d operating permits. The Department clarifies that construction permits do not generally need to be renewed, except in the rare instance that construction activities continue beyond the expiration date of the permit. The operating permit supersedes the

con struction permit in most cases. This language has been clarified in § 200.5. One commenter also stated that the prohibition on a source continuing to operate with an expired operating permit in § 200.5 is overly severe. The commenter recommended that

the D epartment incorporate language similar to that used in New Jersey which would provide for a permit shield when the renewal application is filed in a timely manner but the permit is not renewed prior to the expiration date. The Department has considered thi ssuggestion, however does not intend to incorporate such language at this time. The

Department amended § 200.5 in order to clarify the preexisting requirement that a source must have a valid permit under § 200.2 at all times that it is operating. I n situa tions where a source has submitted a timely application for renewal of an operating permit but not been issued a new permit prior to its expiration, the Department may permit the source to operate on a temporary basis pursuant to § 200.3.

27. Clarify the crite ria for source category permits and whether they will be issued for emergency generators (GSA). One commenter suggested that the criteria for source category permits established pursuant to § 200.6(b) should be submitted for public

comment and also asked h ow these criteria would differ from the permit application. The criteria for the initial source category permit will be subject to the public notice requirements of § 210, but the permits issued to individual sources will not be. The individual permit appl ications for each source category will be tailored to establish whether the criteria for the source category permit have been met. The commenter also asked whether the Department is considering a source category permit for emergency generators and what the timeline is for developing such a permit. The Department will consider establishing a source category permit (or multiple permits) for emergency generators, but has not yet established a time line for doing so.

28. Create an Emission Reduction Credit (ERC) r egistry and allow interpollutant trading of VOCs and NOx (GSA). One commenter requested that the Department establish an Emission Reduction Credit (ERC) registry pool system that guides the management of qualified ERCs that can be used in the District. The Department does not have plans to establish an ERC registry at this time because it does not have the resources to maintain such a system. The commenter also asked whether ERCs purchased in upstream states will qualify as offsets. The Department clarifies that the location of ERCs is determined in accordance with § 204.12 of the rulemaking. The Department will determine on a case

by

- case basis whether the proposed ERCs meet these requirements. The commenter also

asked whether the District would consider interpollutant trading between VOCs and NOx at a ratio of one to one. Pursuant to § 204.21 of the proposed regulation, “emission offsets obtained shall be for the same regulated NSR pollutant”, therefore interpollutant trading of NOx and VOCs is not permit ted. The District has retained this language as proposed, because it is required by the federal nonattainment NSR rule, which states that “[t]he plan shall require that in meeting the emissions offset requirements ... the emissions offsets

obtained shall be for the same regulated NSR pollutant unless interprecursor offsetting is permitted for a particular pollutant as specified in this paragraph.” 40 C.F.R. § 51.165 (a)(11). The paragraph goes on to state that a plan may allow for interpollutant trading of

di rect PM 2.5 and PM 2.5 precursors, but does not specify that the plan may allow for interpollutant trading of ozone precursors.

29. The requirement for reporting of NSR applicability for sources that experience a significant increase but not a major modification is overly burdensome (DC Water). Section 204.17 requires projects that result in a significant emission increase but are not considered major modifications to submit an applicability analysis to the Department. One commenter stated that this requirement i s unnecessary and overly burdensome. The commenter is correct in its interpretation that this requirement would apply to sources that are not subject to NSR requirements because the significant emissions increase is netted out by contemporaneous emissions decreases; however, the Department disagreesthat the requirement to submit this applicability analysis pursuant to § 204.17 is

unnecessary or overly burdensome. The Department needs to maintain this documentation in order to keep a record of why certain s ources were not subjected to NSR permitting requirements. Sources will have to make an applicability determination prior to applying for the permit regardless; therefore, the District is not making an overly burdensome request by asking that they submit in formation with the permit application that they will already have developed, and also make it available on future request.

30. Clarify definition of Continuous Parameter Monitoring System (CPMS) (DC Water). One commenter requested that the Department clarify t he definition of Continuous Parameter Monitoring System to provide examples of the types of parameters. The Department’s definition was modeled after the federal NSR definition ( see 40 C.F.R. § 51.165(a)(1)(xxxiii)) and the Department does not agree that i t needs to be clarified. More specific details about the parameters to be monitored will be included in the source’s chapter 2 permit.DISTRICT DEPARTMENT OF THE ENVIRONMENT
New Source Review P rogram

SECTION 199 (DEFINITIONS AND ABBREVIATIONS )
, subsection 199.1, of CHAPTER 1 (GENERAL RULES), of TITLE 20 (ENVIRONMENT) of the DCMR is amended as

follows:

By amending the definition of “Act ual emissions” to read as follows :

Actual emissions

– the actual rate of emissions of a pollutant from an emissions unit, as determined in accordance with paragraphs (a) through (g):

(a) In general, actual emissions as of a particular date shall equal th e average rate, in tons per year, at which the unit actually emitted the pollutant during the twenty

- four ( 24 ) month period which precedes the particular date and which is representative of normal source operation;

(b) Actual emissions shall be calculated using the unit’s actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period;

(c) When a project involves multiple emissions units or multiple regulated NSR pollutants, or both, only on e (1) consecutive twenty

- four (24) month period within the last five (5) years must be used to determine the actual emissions for all pollutants and for all the emissions units affected by the project;

(d) The average rate shall not be based on any consec utive twenty

- four (24) period for which there is inadequate information for determining annual emissions;

(e) The Department may allow the use of a different time period within the last five (5) years upon determining that it is more representative of o perations; and

( f ) For any emissions unit which has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date.

By adding a definition for “Administrator” to read as follows :

Administr ator

– Administrator of the United States Environmental Protection Agency or an authorized representative.

By amending the definition of “Allowable emissions” to read as follows :

Allowable emissions

– the emission rate of a stationary source calculated u sing the maximum rated capacity of the source (unless the source is subject to enforceable limits which restrict the operating rate, hours of operation, or both) and the most stringent of the following:(a) The applicable standards as set forth in 40 C

. F

. R

. parts 60, 61, and 63;

(b) Any applicable State Implementation Plan emissions limitation, including those with a future compliance date; or

(c) The emissions rate specified under any requirement or permit condition that is enforceable as a practical matter , including those with a future compliance date.

By adding a definition for “Best available control technology” to read as follows :

Best available control technology (BACT)

– an emissions limitation (including a visible emissions standard) based o n the maximum degree of reduction for each regulated NSR pollutant which would be emitted from any proposed major stationary source or major modification which the Department, on a case

- by

- case basis, taking into account energy, environmental, and

economic impacts and other costs, determines is achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel combustion techniques for control of such pollutant. In no event shall application of best available control technology result in emissions of any pollutant that would exceed the emissions allowed by any applicable standard under 40

C

. F

. R

. parts 60

, 61 , or 63 . If the Department d etermines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or co mbination thereof, may be prescribed instead to satisfy the requirement for the application of BACT. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice

or op eration, and shall provide for compliance by means that achieve equivalent results.

By amending the definition for “Building, structure, facility, or installation” to read as

follows :

Building, structure, facility, or installation

– all of the pollutant emitting activities which belong to the same industrial grouping, are located on one (1) or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control), except the activities of any vessel. Pollu tant

- emitting activities shall be considered as part of the same industrial grouping if they belong to the same “Major Group” ( for example , which have the same first two (2) digit code) as described in the Standard Industrial Classification Manual, 1972, a s amended by the 1977 Supplement (U.S. Government Printing Office stock numbers 4101

- 0066

and 003

- 005

- 00176

- 0, respectively).

By adding a definition for “Clean Air Act” to read as follows :

Clean Air Act

– federal Clean Air Act, enacted August 7, 1977 ( Public Law 95

- 95; 42 U.S.C.

7401 et seq. )

.

By adding a definition for “Construction” to read as follows :Construction

– any physical change or change in the method of operation including fabrication,

erection, installation, demolition, or modification of an emissions unit that would result in a change in emissions.

By adding a definition for “Continuous emissions monitoring system” to read as follows :

Continuous emissions monitoring system (CEMS)

– all of the equipment that may be required

to meet data acquisition and availability requirements to sample, condition (if applicable), analyze, and provide a record of emissions on a continuous basis.

By adding a definition for “Continuous emissions rate monitoring system” to read as follows :

Continuous emi ssions rate monitoring system (CERMS)

– the total equipment required for the determination and recording of the pollutant mass emissions rate of mass per unit of time.

By adding a definition for “Continuous parameter monitoring system” to read as follow s :

Continuous parameter monitoring system (CPMS)

– all of the equipment necessary to meet the data acquisition and availability requirements of this section, to monitor process and control device operational parameters (for example, control device seconda ry voltages and electric currents) and other information (for example, gas flow rate, O 2 or CO 2 concentrations), and to record average operational parameter value(s) on a continuous basis.

By adding a definition for “Department” to read as follows :

Depa rtment

– The District Department of the Environment (DDOE).

By deleting the definition of “ Federal Clean Air Act .”

By amending the definition of “Federally enforceable” to read as follows :

Federally enforceable

– all limitations and conditions which are enforceable by the Administrator, including those requirements developed pursuant to 40 CFR parts 60

, 61, and 63 requirements within any applicable state implementation plan, any permit requirements established pursuant to 40 C

. F

. R

. § 52.21 or under regul ations approved pursuant to 40 CFR part 51, subpart I, including operating permits issued under an EPA

- approved program that is incorporated into the state implementation plan and expressly requires adherence to any permit issued under such program, or any permit requirements not designated as “state only” in a federal operating permit, a permit issued pursuant to c hapter 3 of this title, or a permit issued pursuant to

40 C

. F

. R

. parts 70 and 71.

By adding a definition for “Lowest achievable emission rate” to read as follows :

Lowest achievable emission rate (LAER)

– for any source, the more stringent rate of emissions based on the following:(a) The most stringent emissions limitation which is contained in the implementation plan of

any State for such cla ss or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable; or

(b) The most stringent emissions limitation which is achieved in practice by such class or
categ ory of stationary sources. This limitation, when applied to a modification, means

the lowest achievable emissions rate for the new or modified emissions units within or stationary source. In no event shall the application of the term permit a proposed ne w or modified stationary source to emit any pollutant in excess of the amount allowable under an applicable new source standard of performance.

By deleting the definition of “Major Modification.”

By amending the definition of “Major stationary source” to read as follows :

Major stationary source

– any stationary source of air pollutants which emits, or has the potential to emit, one hundred tons per year (100 T py) or more of any pollutant regulated under the Clean Air Act, except that lower emissions thre sholds shall apply as follows:

(a) Seventy ( 70 ) Tpy or more of PM 10 or, where applicable, seventy ( 70 ) Tpy of a specific

PM 10 precursor, in any nonattainment area for PM 10 ;

(b) Fifty ( 50 ) Tpy or more of carbon monoxide in any serious nonattainment area for carbon monoxide, where stationary sources contribute significantly to carbon monoxide levels in the area (as determined under rules issued by the EPA Administrator);

(c) Twenty

- five ( 25 ) Tpy or more of nitrogen oxides or volatile organic compounds i n any nonattainment area for ozone, except where paragraph (d) below is applicable;

(d) Ten ( 10 ) Tpy or more of nitrogen oxides or volatile organic compounds in any extreme nonattainment area for ozone;

(e) Any physical change that would occur at a stat ionary source not qualifying under paragraphs (a)

- (d) above, is a major stationary source if the change would constitute a major stationary source by itself;

(f) A major stationary source that is major for volatile organic compounds or oxides of nitrog en shall be considered major for ozone; and

(h) The fugitive emissions of a stationary source shall not be included in determining major stationary source status, unless the source belongs to one (1) of the following categories of stationary sources:

(1) Co al cleaning plants (with thermal dryers);(2) Kraft pulp mills;

(3) Portland cement plants;

(4) Primary zinc smelters;

(5) Iron and steel mills;

(6) Primary aluminum ore reduction plants;

(7) Primary copper smelters;

(8) Municipal incinerators capable of charging more than two hundred fifty tons ( 250

T ) of refuse per day;

(9) Hydrofluoric, sulfuric, or nitric acid plants;

(10) Petroleum refineries;

(11) Lime plants;

(12) Phosphate rock processing plants;

(13) Coke oven batteries;

(14) Sulfur recovery plants;

(15) Carbon black plants (furnace process);

(16) Primary lead smelters;

(17) Fuel conversion plants;

(18) Sintering plants;

(19) Secondary metal production plants;

(20) Chemical process plants;

(21) Fossil

- fuel boile rs (or combination thereof) totaling more than two hundred fifty

million British thermal units (250,000,000 Btus ) per hour heat input;

(22) Petroleum storage and transfer units with a total storage capacity exceeding three hundred thousand ( 300,000 ) barr els;

(23) Taconite ore processing plants;(24) Glass fiber processing plants;

(25) Charcoal production plants;

(26) Fossil fuel

- fired steam electric plants of more than two hundred fifty million

British thermal units (250,000,000 Btus) per hour hea t input; and

(27) Any other stationary source category which, as of August 7, 1980, is being regulated under §§ 111 or 112 of the Clean Air Act.

By amending the definition of “modification” to read as follows :

Modification

– other than as used in § 205 of this title, any physical change in, or change in the method of operation of, a stationary source which increases or decreases the amount of any air pollutant emitted by the source, or which results in the emission of any air pollutant not previously

em itted, except that the term shall not include the following:

(a) Routine maintenance, repair, or replacement;

(b) An increase in the hours of operation or in the production rate, unless the change would be prohibited under any federally enforceable permi t condition established pursuant to § 204;

(c) Use of an alternative fuel or raw material if, prior to March 15, 1985, the affected facility was designed to accommodate the alternative use; and

(d) Decommissioning or removal.

By deleting the definitio n of “Net Emissions Increase.”

By adding a definition for “Particulate Matter 2.5 (PM 2.5 )” to read as follows:

Particulate Matter 2.5 (PM 2.5 )

– finely divided solid or liquid material, including condensable particulate, other than uncombined water, with an aerodynamic diameter less than or equal to a

nominal two and a half micrometers ( 2.5 μm ) , emitted to the ambient air. When used in the context of ambient concentration, means particles with an aerodynamic diameter less than or equal to a nominal two and a half micrometers (2.5 μm) as measured by a reference method

based on 40 C

. F

. R

. p art 50, a ppendix L, or an equivalent method designated in accordance with

40 C

. F

. R

. p art 53.

By adding a definition for “Particulate Matter 10 (PM 10 )” to read as follows:

Particulate Matter 10 (PM 10 )

– particulate matter with an aerodynamic diameter less than or equal to a nominal ten micrometers ( 10 μm)

.

By amending the definition of “Potential to emit” to read as follows :Potential to emit

– the maximum capacity of a s tationary source to emit a pollutant under its

physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or o n the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on emissions is enforceable as a practical matter . Secondary emissions do not count in determining the potential to emit of a stationary source.

By adding a definition for “Project” as follows :

Project

– a physical change in, or change in the method of operation of, an e xisting major stationary source

.

SECTION 199 (DEFINITIONS), subsection 199.2, of CHAPTER 1 (GENERAL RULES), of TITLE 20 (ENVIRONMENT) of the DCMR is amended to add the following acronyms :

Best Available Control Technology BACT

Lowest Achievable Emissions Rate LAER

New Source Review NSR

Particulate Matter 2.5 PM 2.5

SECTION 199 (DEFI NITIONS), subsection 199.2, of CHAPTER 1 (GENERAL RULES), of TITLE 20 (ENVIRONMENT) of the DCMR is amended as follows:

The second definition for the acronym, “PM,” which is currently defined as:

particulate matter with an aerodynamic diameter

is amended to read “ PM 10 ” as follows:

Particulate Matter 10

SECTION 200 (GENERAL PERMIT REQUIREMENTS) , of CHAPTER 2 ( GENERAL

AND NON

- ATTAINMENT AREA PERMITS ), of TITLE 20 (ENVIRONMENT) of the

DCMR is amended to read as follows:

200 GENERAL PERMIT REQUIREMENTS

200.1 A permit from the Mayor Department shall be obtained before any person shall

cause, suffer, or allow the construction of a new stationary source, or the modification of an existing stationary source, or the installation or modification of any air po llution control device on a stationary source.200.2 An operating permit shall be obtained from the Mayor Department before any person shall cause, suffer, or allow the operation of the following:

(a) Any major stationary source, for which a construction or modification permit is required under § 200.1; or

(b) Any source for which a construction or modification permit is required under § 200.1, and which construction or modification permit was subject to conditions which affect, or would affect, the ope ration of the source.

200.3 The Mayor Department may allow the temporary operation of a source for a

period no longer than one (1) month. This period may be extended month to month, to enable the initial evaluation of the operation of a source or device

g ranted a permit under § 200.1, or to enable the continued operation of a source for which an application for an operating permit under § 200.2 has been filed, but due to delays attributable to the Mayor Department the permit has not been issued. Any tempora ry operation of a source shall be in accordance with the requirements of this chapter

.

200.4 Construction and operating permits, shall be valid for the period specified in the

permit, but not to exceed three (3) five (5) years.

200.5 Each owner or operat or of a stationary source or device for which a permit is

required shall timely file with the Mayor Department the appropriate application

, including applications for renewal of any construction or operating permit, if

construction activities or operations are to continue beyond the expiration date of an existing permit

.

200.6 The Department may, after its review, review by EPA and affected states (as

defined in 20 DCMR § 399), and after notice and opportunity for public comment and hearing as required by § 210, establish a source category permit covering a group of similar sources or emission units according to (a) through (h) of this

subsection :

(a) Any source category permit shall comply with all requirements applicable to the source pursuant to the air quality regulations this title;

(b) During establishment of any source category permit, the Department shall establish criteria by which sources may qualify for the source category permit;

(c) The Department shall maintain records of the public comments and issues raised during the public participation process;

(d) A source category permit does not substitute for a permit required under

c hapter 3 of this title ;(e) A response to each source category permit application may not be provided, rather the sou rce category permit may specify a reasonable period of time after which an application is deemed approved and the applicant may construct and operate under the source category permit;

(f) The applicant for a source category permit may be issued an individ ual permit or letter or other document indicating that the application has been approved or denied;

(g) If the Department provides an individual response, as provided in paragraph (f), the permittee shall retain the response and make it available

on reque st to authorized officials of the Department; and

(h) Any established source category permit is subject to the expiration and

renewal conditions found in § 200.4 and 200.5 and may be revised by following the same process as is used for original establishm ent of the permit.

200. 6 7 Applications for permits shall be filed with the Mayor Department on the form or

forms that the Mayor Department shall prescribe and shall be accompanied by the data, information, and analyses necessary or desirable to enable the

M ayor Department to determine whether the requested permit should be issued or

denied.

200. 7 8 The Mayor Department may require, at any time, the submission of the data,

information, and analyses that the Mayor Department may deem necessary or desirable, to al low the Mayor Department to determine whether a requested permit should be issued or denied, or an outstanding permit should be modified or

revoked.

200. 8 9 Applications for construction and operating permits may incorporate by reference

data, information, and analyses otherwise available or provided to the Mayor Department , provided that the reference is clear and specific.

200. 9 10 Each permit application shall be accompanied by a fee to be determined by the

Mayor Department

.

200. 1 0 1 1 An application for a p ermit shall be signed in the following manner:

(a) If the applicant is a partnership, a general partner shall sign the application;

(b) If the applicant is a corporation, association, or cooperative, an officer shall sign the application;(c) If the applicant is a sole proprietorship, the proprietor shall sign the application; and

(d) If the applicant is a government or governmental agency, department, or board, a senior executive of that government, agency, department, or board who has authority to sign shal l sign the application.

200. 11 12 No permit shall be required for any fuel burning equipment which has a capacity

of five million British thermal units (5,000,000 Btus ) or less B.T.U.s per hour of heat input and which uses for fuel only gaseous fuels or di stillate oils. This section shall not apply to sources subject to § 204.

200. 12 13 The Mayor Department shall establish a schedule of fees for construction and

operating permits. These fees shall be sufficient to cover the reasonable costs of reviewing and acting upon the application and the reasonable costs of implementing and enforcing the terms and conditions of the permit.

SECTION 204 ( PERMIT REQUIREMENTS FOR SOURCES AFFECTING NON

ATTAINMENT AREAS) of CHAPTER 2 ( GENERAL AND NON

- ATTAINMENT AREA
PERMITS ) of the DCMR is repealed and replaced with :

204 PERMIT REQUIREMENTS FOR MAJOR SOURCES LOCATED IN

NON

- ATTAINMENT AREAS (NEW SOURCE REVIEW)

204.1 This section shall apply to the construction of any new major stationary source or

any major modification at a n existing major stationary source in an area designated as nonattainment under § 107(d)(1)(A)(i) of the Clean Air Act.

204.2 Permit applications submitted pursuant to this section shall include a control

technology evaluation to demonstrate that any new major stationary source or major modification will meet the lowest achievable emission rate (LAER) for all new or modified emissions units, unless otherwise provided in this section.

204.3 Any permit application submitted pursuant to this section shall pr ovide for

creditable emission reduction offsets pursuant to this section. The application shall provide documentation adequate for the Department to assess the validity of the proposed offsets.

204.4 Any new major stationary source or major modification to be constructed in an

area designated as nonattainment shall comply with LAER as determined by the Department and set forth in a preconstruction permit issued pursuant to this

section.

204.5 Any new major stationary source or major modification to be constructed in a

nonattainment area shall not begin actual construction without a permit issued bythe Department that incorporates the applicable control technology and offset requirements as specified in § 204.18 and 204.19

.

204.6 Before applying for a permit to construct, the owner or operator shall determine

applicability pursuant to the provisions below and submit this determination with the permit application:

(a) A project is a major modification for a regulated NSR pollutant as defined

in § 299;

(b) Determine whether the emissions increases from the project are significant

as defined in § 299 by summing the potential to emit from each new emissions unit and the difference between the potential to emit for each existing unit affected by the proj ect after the change and the actual emissions prior to the change;

(c) Determine whether the project results in a significant net emissions

increase as defined in § 299;

(d) An emissions unit is considered affected by the project if an emissions

increase from the unit would occur as a result of the project, regardless of whether a physical change or change in the method of operation will occur at the particular emissions unit; and

(e) Subsection 204.17 pertains to projects that result in a significant in crease in a regulated NSR pollutant, but do not result in a significant net

emissions increase.

204.7 Any major stationary source subject to a Plantwide Applicability Limit (PAL) for

a regulated NSR pollutant shall comply with the requirements set forth in § 208.

204.8 For sources and modifications subject to any preconstruction review program, the

baseline for determining credit for emissions reductions is the emissions limit under the State Implementation Plan in effect at the time the application to

c onstruct is filed, except that the offset baseline shall be the actual emissions of

the source from which offset credit is obtained where:

(a) The demonstration of reasonable further progress and attainment of ambient air quality standards is based upon t he actual emissions of sources located within the designated nonattainment area; or

(b) The State Implementation Plan does not contain an emissions limitation for that source or source category.

204.9 In determining offset credits, the following provisi ons shall also apply:(a) Where the emissions limit under the State Implementation Plan provides for greater emissions than the potential to emit of the source, offset credits will be granted only for control below the potential to emit;

(b) For an exi sting fuel combustion source, credit shall be based on the allowable emissions under the applicable State Implementation Plan for the type of fuel being burned at the time the application to construct is

filed:

(1) If the existing source commits to switch to a cleaner fuel at some future date, emissions offset credit based on the allowable (or actual) emissions for the fuels involved is not acceptable, unless the permit is conditioned to require the use of a specified

alternative control measure which woul d achieve the same degree

of emissions reduction should the source switch back to a dirtier fuel at some later date; and

(2) The Department should ensure that adequate long

- term supplies of the new fuel are available before granting emissions offset cred it for fuel switches; and

(c) Emissions reductions achieved by shutting down an existing source or curtailing production or operating hours below baseline levels may be generally credited if such reductions are surplus, permanent, quantifiable,

and federa lly enforceable:

(1) The shutdown or curtailment is creditable only if it occurred on or after the date of the most recent emissions inventory used in the plan's demonstration of attainment, unless an earlier cutoff date has been specified in the plan;

(2) In no event may credit be given for shutdowns that occurred prior to August 7, 1977; and

(3) For purposes of this subsection, the Department may choose to consider a prior shutdown or curtailment to have occurred after the

date of its most recent emis sions inventory, if the inventory explicitly includes as current existing emissions the emissions from such previously shutdown or curtailed sources

.

204.10 No emissions credit may be allowed for replacing one (1) hydrocarbon compound

with another of less er reactivity, except for those compounds listed in Table 1 of EPA's "Recommended Policy on Control of Volatile Organic Compounds,'' 42

F ed. R eg. 35314 ( July 8, 1977 )

.

204.11 All emission reductions claimed for offset credit shall be federally enforceable

.204.12 Procedures relating to the permissible location of offsetting emissions shall be followed which are at least as stringent as those set out in 40 C

. F

. R

. part 51,

a ppendix S, § IV.D.

204.13 Credit for an emissions reduction can be claimed to the extent that the Department

has not relied on it in issuing any permit under regulations approved pursuant to

40 C

. F

. R

. part 51, subpart I, or the District has not relied on it in demonstrating attainment or reasonable further progress.

204.14 The total t onnage of increased emissions, in tons per year, resulting from a major

modification that must be offset in accordance with § 173 of the Clean Air Act shall be determined by summing the difference between the allowable emissions

after the modification and the actual emissions before the modification for each

emissions unit.

204.15 The provisions of § 204 do not apply to a source or modification that would be a

major stationary source or major modification only if fugitive emissions to the extent quantifiab le are considered in calculating the potential to emit of the stationary source or modification and the source does not belong to any of the categories listed under the definition of major stationary source in § 199.1.

204.16 The following provisions app ly to any owner or operator subject t o the air quality

regulations of this title :

(a) Approval to construct shall not relieve any owner or operator of the responsibility to comply fully with applicable provisions of the State Implementation Plan and any o ther requirements under local, s tate or
f ederal law; and

(b) At such time that a particular source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in any enforceable limitation which was establishe d after August 7, 1980, on the capacity of the source or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then the requirements of this section shall apply to the source or modification as though construction

had not yet commenced on the source or modification.

204.17 For any project that would result in a significant emissions increase, but is not

considered a major modification:

(a) Before submitting a permit application for such a project, the owner or
operator s hall document and maintain a record of the following

information:

(1) A description of the project;(2) Identification of the emissions unit(s) whose emissions of a regulated NSR pollutant could be affected by the project; and

(3) The applicability anal ysis used to determine the project is not a major modification for any regulated NSR pollutant, including the actual emissions, the potential to emit after the project, and the netting analysis;

(b) The owner or operator shall provide a copy of the infor mation set out in paragraph (a) to the Department with a permit application submitted
pursuant to § 200.1; and

(c) The owner or operator of the source shall make the information required in paragraph (a) available for review upon the Department’s request

.

204.18 The permit shall require that in meeting the emissions offset requirements for

ozone nonattainment areas, the ratio of total actual emission reductions of VOC or

NO X to the emissions increase of VOC or NO X shall be at least one and three

tenths to one (1.3:1).

204.19 The permit shall require that in meeting the emissions offset requirements for all

other nonattainment areas, the ratio of total actual emission reductions of any pollutant to the emissions increase of that pollutant shall be at least one to one (1:1).

204. 20 Requirements of this chapter applicable to major stationary sources and major

modifications of PM 10 shall also apply to major stationary sources and major

modificat ions of PM 10 precursors, except where the Administrator determine s that

such sources do not contribute significantly to PM 10 levels that exceed the PM 10 ambient standards in the area.

204.2 1 In meeting the emissions offset requirements of § 204.8 through 204.14, the

emissions offsets obtained shall be for the same regu lated NSR pollutant, except as provided in § 204. 22

.

204.2 2 The Department may allow the offset requirements in § 204.8 through 204.14 for

direct PM 2.5 emissions or precursors of PM 2.5 to be satisfied by offsetting

reductions in direct PM 2.5 emissions or emissions of any PM 2.5 precursor, using a ratio approved by the Department following public notice and comment and approval by EPA.

SECTION 206 (NOTICE AND COMMENT PRIOR TO PERMIT ISSUANCE) of CHAPTER 2 (GENERAL AND NON

- ATTAINMENT AREA PERMITS) of TITLE 20 (ENVIRONMENT) of the DCMR is repealed and replaced with:206 [RESERVED]

CHAPTER 2 (GENERAL AND NON

- ATTAINMENT AREA PERMITS) of TITLE 20 (ENVIRONMENT) of the DCMR is amended by adding a new section 208 to read as

follows:

208 PLANTWIDE APPLICABILITY LIMIT (PAL) PERMITS FOR MAJOR

SOURCES

208.1 The Department may approve the use of a Plantwide Applicability Limit (PAL)

for any existing major stationary source if the PAL meets the requirements in this

section.

208.2 The Department shall not approve the use of a PAL for VOC or NO

x for any

major stationary source in an extreme ozone nonattainment area.

208.3 Any physical change in or change in the method of operation of a major stationary

source that maintains its total source

- wide emissions below the PAL level, meets the requirements of this section, and complies with the PAL permit is not a major modification for the PAL pollutant and does not have to be approved through the nonattainment New Source Review program in § 204.

208.4 Any major stationar y source operating under a PAL permit shall continue to

comply with all applicable federal, state or local requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL permit, excluding any enforceable emissions limitations that the source used to avoid applicability with the requirements of the District’s NSR program under § 204 and 206 , except as modified through normal permit modification processes under c hapter 2 or c hapter 3 of this t it le

.

208.5 As part of a permit application requesting a PAL, the owner or operator of a major

stationary source shall submit the following information to the Department for approval:

(a) A list of all emissions units at the source designated as small, significant, or major based on their potential to emit. In addition, the owner or operator of the source shall indicate which, if any, federal or state applicable requirements, emission limitations, or work practices apply to each unit;

(b) Calculations of the PAL baseline emissions, with supporting documentation, for all emissions units at the source;

(c) The calculation procedures that the major stationary source owner or operator proposes to use to convert the monitoring system data to monthly

emissio ns and annual emissions based on a twelve ( 12 ) month rolling total for each month as required by § 208. 33 ; and(d) Any other information requested by the Department.

208.6 The Department may establish a PAL at a major stationary source, provided that

at a minimum, the following requirements are met:

(a) The PAL shall impose an emission limitation that is federally enforceable and enforceable as a practical matter, for the entire major stationary source, with compliance to be determined as follows:

(1) For each month during the PAL effective period after the first twelve (12) months of establishing a PAL, the major stationary source owner or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous twelve (12) consecutive months is less than the PAL (a twelve (12) month average, rolled monthly); and

(2) For each month during the first eleven (11) months from the PAL effective date, the major stationary source owner or operator shall

show that the su m of the preceding monthly emissions from the

PAL effective date for each emissions unit under the PAL is less than the PAL;

(b) The PAL shall be established in a PAL permit that meets the public participation requirements in § 208.8;

(c) The PAL shall b e set in accordance with the requirements of § 208.9;

(d) The PAL permit shall contain all the requirements in § 208.10;

(e) Each PAL shall regulate emissions of only one (1) pollutant;

(f) Each PAL shall have a term of no more than five (5) years; and

(g) The PAL permit shall contain monitoring, recordkeeping

, and reporting

conditions consistent with § 208. 24 through 208. 35

.

208.7 At no time (during or after the PAL effective period) are emissions reductions of a

PAL pollutant that occur during the PAL effective period creditable as decreases for purposes of offsets under 40 C

. F

. R . § 51.165(a)(3)(ii) unless the level of the PAL is reduced by the amount of such emissions reductions and such reductions

would be creditable in the absence of the PAL.

2 08.8 PALs for existing major stationary sources shall be established, renewed, or

increased through a public participation procedure that is consistent with 40

C

. F

. R . § § 51.160 and 51.161 and § 210, including the following:(a) The Department shall provid e the public with notice of the proposed approval of a PAL permit and at least a thirty ( 30 ) day period for submittal of public comment; and

(b) The Department shall address all material comments before taking final action on the permit.

208.9 The initia l PAL level for a major stationary source shall be established as follows:

(a) The initial PAL shall be the sum of:

(1) The significant level for the PAL pollutant as defined in § 299.1 or under the Clean Air Act, whichever is lower; and

(2) The PAL ba seline emissions of the PAL pollutant for each emissions unit at the source at the time the application is submitted, except that PAL baseline emissions from any emissions unit that has been permanently shut down shall not be included in establishing the P AL;

(b) The Department shall establish a future effective PAL adjustment in the PAL permit to reflect a reduction (in tons per year) for any applicable federal or state regulatory requirement with a future compliance date; and

(c) For newly constructed units (which do not include modifications to existing units) on which actual construction began after the twenty

- four (24) month period, in lieu of adding the baseline actual emissions as specified in paragraph (a), the emissions must be added to the PAL l evel in an amount equal to the potential to emit of the units.

208.10 The PAL must contain, at a minimum, the following information:

(a) The PAL pollutant and the applicable source

- wide emission limitations in tons per year and their effective dates;

(b ) The PAL permit effective date and the expiration date of the PAL;

(c) Specification in the PAL permit that if a major stationary source owner or operator applies to renew a PAL in accordance with § 208. 16 through

208. 18 before the end of the PAL effecti ve period, then the PAL shall not expire at the end of the PAL effective period but it shall remain in effect until final action is taken by the Department on the application for renewal;(d) A requirement that emission calculations for compliance purpose s must include any noncompliant emissions in excess of any emissions limitations, emissions associated with startup and shutdown, fugitive emissions, to the extent quantifiable, and emissions associated with upsets or malfunctions;

(e) A requirement that, once the PAL expires, the major stationary source is subject to the requirements of § 208. 15 ;

(f) The calculation procedures that the major stationary source owner or operator shall use to convert the monitoring system data to monthly

emissions and annua l emissions based on a twelve (12) month rolling total as required by § 208. 33 ;

(g) A requirement that the major source owner or operator monitor all emissions units in accordance with the provisions under § 208. 24 through

208. 32 ;

(h) A requirement to re tain the records required under § 208. 33 and 208. 34 on site (s uch records may be retained in an electronic format ) ;

(i) A requirement to submit the reports required under § 208. 35 by the required deadlines; and

(k) Any other requirements that the Departm ent deems necessary to implement and enforce the PAL.

208.11 The Department shall specify a PAL effective period of no more than five (5)

years

.

208.12 During the PAL effective period, the Department must reopen the PAL permit to:

( a ) Correct typograph ical or calculation errors made in setting the PAL or

reflect a more accurate determination of emissions used to establish the PAL;

( b ) Reduce the PAL if the owner or operator of the major stationary source

creates creditable emissions reductions for use as offsets;

( c ) Revise the PAL to reflect an increase in the PAL as provided under §

208. 23 ;

( d ) Reduce the PAL if the Department determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PSD increment violation, or to an a dverse impact on an air quality related value that hasbeen identified for a Federal Class I area by a Federal Land Manager and for which information is available to the general public; and

( e ) Reduce the PAL to reflect newly applicable requirements (for example, NSPS) with compliance dates after the PAL effective date

.

208.13 The Department shall reopen a c hapter 3 operating permit with a PAL for cause

consistent with § 303.6 and 303.7 of this title

.

208.14 Except for the permit reopening for the corre ction of typographical or calculation

errors that do not increase the PAL level, all other reopenings shall be carried out in accordance with the public participation requirements in § 208.8.

208. 15 Any PAL that is not renewed in accordance with the proce dures in § 208. 16 shall

expire at the end of the PAL effective period, and the following requirements shall apply:

(a) Each emissions unit (or each group of emissions units) that existed under the PAL shall comply with an allowable emission limitation und er a revised permit established according to the following procedures:

(1) Within the time frame specified for PAL renewals in § 208. 16 , the major stationary source shall submit a proposed allowable emission limitation for each emissions unit (or each gro up of emissions units, if such a distribution is more appropriate as decided by the Department) by distributing the PAL allowable emissions for the major stationary source among each of the emissions units that existed under the PAL;

(2) If the PAL had no t yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required

under § 208. 16 , such distribution shall be made as if the PAL had been adjusted; and

(3) The Department shall decide whether and how the P AL allowable emissions will be distributed and issue a revised permit incorporating allowable limits for each emissions unit, or each group of emission units, as the Depar tment determines is appropriate;

(b) Each emissions unit(s) shall comply with the a llowable emission limitation on a twelve (12) month rolling basis;

(c) The Department may approve the use of monitoring systems (source testing, and emission factors) other than continuous emissions monitoring system ( CEMS )

, continuous emissions rate moni toring system ( CERMS )

,predictive emissions monitoring system ( PEMS ) or continuous parameter monitoring system ( CPMS ) to demonstrate compliance with the allowable emission limitation;

(d) Until the Department issues the revised permit incorporating allowa ble limits for each emissions unit, or each group of emissions units, as required under sub paragraph (a)(3) of this subsection, the source shall continue to comply with a source

- wide, multi

- unit emissions cap equivalent to the level of the PAL emission lim itation;

(e) Any physical change or change in the method of operation at the major stationary source will be subject to major NSR requirements if such change meets the definition of major modification in § 199.1 of this title;

and

(f) The major stationar y source owner or operator shall continue to comply with any s tate or f

ederal applicable requirements ( Lowest Achievable Emissions Rate ( LAER )

, Best Achievable Control Technology ( BACT )

, Reasonably Available Control Technology ( RACT )

, and New Source

Perfor mance Standards ( NSPS ) ) that may have applied either during the PAL effective period or prior to the PAL effective period except for those

emission limitations that were established pursuant to § 208.4, but were eliminated by the PAL in accordance with the provisions in § 208.3.

208. 16 The Department shall follow the procedures specified in § 208.8 in approving any

request to renew a PAL for a major stationary source, and shall provide both the proposed PAL level and a written rationale for the proposed PAL level to the public for review and comment. During such public review, any person may propose a PAL level for the source for consideration by the Department.

208. 17 A major stationary source owner or operator shall submit a timely application to

the Department to request renewal of a PAL. A timely application is one that is submitted at least six (6) months prior to, but not earlier than eighteen (18) months from, the date of permit expiration. This deadline for application

submittal is to ensure th at the permit will not expire before the permit is renewed. If the owner or operator of a major stationary source submits a complete application to renew the PAL within this time period, then the PAL shall continue to be effective until the Department tak es final action on the application for

renewal.

208. 18 The application to renew a PAL permit shall contain the following information:

(a) The information required in § 208.5;

(b) A proposed PAL level;(c) The sum of the potential to emit of all emiss ions units under the PAL (with supporting documentation);

(d) Any other information the owner or operator wishes the Department to consider in determining the appropriate level for renewing the PAL; and

(e) Additional information as requested by the Depa rtment to make a determination on the renewal request.

208. 19 If the emissions level calculated in accordance with § 208.9 is equal to or greater

than eighty percent ( 80 %) of the PAL level, the Department may renew the PAL

at the same level without consid ering the factors set forth in § 208. 20 . However, in no case may any such adjustment fail to comply with § 208. 21

.

208. 20 The Department may set the PAL at a level that it deems to be more

representative of the source’s PAL baseline emissions determine d from the date of the renewal application, or that the Department determines to be more appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the
source’s voluntar y emissions reductions, or other factors as specifically identified by the Department’s written rationale.

208. 21 Notwithstanding § 208. 19 and 208. 20 above:

(a) If the potential to emit of the major stationary source is less than the PAL, the Department shall adjust the PAL to a level no greater than the potential to emit of the source; and

(b) The Department shall not approve a renewed PAL level higher than the current PAL, unless the major stationary source has complied with the provisions of § 208. 2 3 (increasing a PAL).

208. 22 If the compliance date for a state or federal requirement that applies to the PAL

source occurs during the PAL effective period, and if the Department has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL permit renewal or the source’s Title V permit renewal, whichever occurs

first.

208. 23 The Department may increase a PAL emission limitation following the provisions

below:

(a) The owner or operator of the major stationary source shall:

(1) Submit a complete application to request an increase in the PAL limit for a PAL major modification . The following requirements shall apply:(A) Such application shall identify the emissions unit(s) contributing to the increase in emissions so as to cause the major stationary source's emissions to equal or exceed its PAL;

(B) As part of this application, the major stationary source owner or operator shall demonstrate that the sum of the PAL baseline emissions of the small emissions units, plus

th e sum of the PAL baseline emissions of the significant and major emissions units assuming application of LAER, plus the sum of the allowable emissions of the new or modified emissions unit(s) exceeds the PAL; and

(C) The level of control that would result from the application of LAER on each significant or major emissions unit shall be determined by conducting a new LAER analysis at the time the application is submitted, unless the emissions unit is currently obligated to comply with a LAER requirement

tha t was established within the preceding five (5) years. In such a case, the assumed control level for that emissions unit shall be equal to level of LAER with which that emissions unit must currently comply;

(2) Obtain a major NSR permit for all emissio ns unit(s) identified in §

208. 23 (a)(1)(A) regardless of the magnitude of the emissions increase resulting from them (that is, no significance levels apply);

and

(3) The emissions unit(s) in subparagraph (2) shall comply with any emissions requirements re sulting from the major NSR process (for example, LAER or BACT), even though they have also become subject to the PAL or continue to be subject to the PAL;

(b) The PAL permit shall require that the increased PAL level be effective on the day any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant;

(c) The Department shall calculate the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the

PA L baseline emissions of the significant and major emissions units, plus the sum of the PAL baseline emissions of the small emissions units; and

(d) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requireme nts of § 208.8.208. 24 Each PAL permit must contain enforceable requirements for the monitoring system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per unit of time;

(a) Any monitoring system authorized for use in the PAL permit must be based on sound science and meet generally acceptable scientific procedures for data quality and manipulation;

(b) The information generated by such system must meet minimum legal requirements for admissibility in a judicial proceed ing to enforce the PAL permit;

(c) The PAL monitoring system must employ one (1) or more of the four (4) general monitoring approaches meeting the minimum requirements set

forth in § 208. 2 5 through 208. 3 2 and must be approved by the Department;

(d) Notwi thstanding the paragraph above, the owner or operator may employ an alternative monitoring approach that meets the requirements of this section if approved by the Department; and

(e) Failure to use a monitoring system that meets the requirements of this

section renders the PAL invalid.

208. 25 The following are acceptable general monitoring approaches when conducted in

accordance with the minimum requirements in § 208. 26 through 208. 32 :

(a) Mass balance calculations for activities using coatings or solve nts and sulfur dioxide calculations for fuel burning sources;

(b) CEMS;

(c) CPMS or PEMS; or

(d) Emission factors.

208. 26 An owner or operator using mass balance calculations to monitor PAL pollutant

e missions from activities using coating or solvents shall meet the following requirements:

(a) Provide a demonstrated means of validating the published content of the PAL pollutant that is contained in or created by all materials used in or at the emissions unit;(b) Assume that the emissions unit emits all of the PAL pollutant that is contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process; and

(c) Where the vendor of a material or fuel, which is used in or at the

emiss ions unit, publishes a range of pollutant content from such material, the owner or operator must use the highest value of the range to calculate the PAL pollutant emissions unless the Department determines there is

site

- specific data or a site

- specific mon itoring program to support another content within the range.

208. 27 An owner or operator using CEMS to monitor PAL pollutant emissions shall meet

the following requirements:

(a) CEMS must comply with applicable Performance Specifications found in

40 C

. F

. R

. part 60, appendix B; and

(b) CEMS must sample, analyze

, and record data at least every fifteen (15) minutes while the emissions unit is operating.

208. 28 An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions

shall meet the follow ing requirements:

(a) The CPMS or the PEMS must be based on current site

- specific data demonstrating a correlation between the monitored parameter(s) and the PAL pollutant emissions across the range of operation s of the emissions unit; and

(b) Each CPMS or PEMS must sample, analyze, and record data at least every fifteen (15) minutes, or at another less frequent interval that the Department approves , while the emissions unit is operating.

208. 29 An owner or operator using emission factors to monitor PAL pollutant emissions

shall meet the following requirements:

(a) All emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the factors’ development;

(b) The emissions unit shall operate within the designated range of use for the emission factor, if applicable; and

(c) If technically practicable, the owner or operator of a significant emissions unit that relies on an emission factor to calculate PAL pollutant emissions

shall conduct validation test ing to determine a site

- specific emission factor within six (6) months of PAL permit issuance unless the Department determines that testing is not required.208. 30 A source owner or operator must record and report maximum potential to emit

without conside ring enforceable emission limitations or operational restrictions for an emissions unit during any period of time that there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL permit.

208. 31 Notwithstanding the requirements in § 208. 26 through 208. 30 , where an owner or

operator of an emissions unit cannot demonstrate a correlation between the monitored parameter(s) and the PAL pollutant emissions rate at all operating points of the emissions u nit, the Department shall, at the time of permit issuance:

(a) Establish default value(s) for determining compliance with the PAL based on the highest potential emissions reasonably estimated at such operating point(s); or

(b) Determine that operation of the emissions unit during operating conditions when there is no correlation between monitored parameter(s) and the PAL pollutant emissions is a violation of the PAL.

208. 32 All data used to establish the PAL pollutant must be revalidated through

performa nce testing or other scientifically valid means approved by the Department. Such testing must occur at least once every five (5) years after

issuance of the PAL.

208. 33 The PAL permit shall require an owner or operator to retain a copy of all records

nec essary to determine compliance with any requirement of this section and of the PAL, including a determination of each emissions unit’s twelve ( 12 ) month rolling total emissions, for five (5) years from the date of such record.

208. 34 The PAL permit shall require an owner or operator to retain a copy of the

following records for the duration of the PAL effective period plus five (5) years:

(a) A copy of the PAL permit application and any applications for revisions to the PAL; and

(b) Each annual certific ation of compliance pursuant to c hapter 3 of this title and the data relied on in certifying the compliance.

208.3 5 The owner or operator shall submit semi

- annual monitoring reports and prompt

deviation reports to the Department in accordance with the app licable Title V operating permit program in c hapter 3 of this title. The reports shall meet the following requirements:(a) The semiannual report shall be submitted to the Department within thirty (30) days of the end of each reporting period. This repo rt shall contain the following information:

(1) The identification of owner and operator and the permit number;

(2) Total annual emissions (tons per year) based on a twelve ( 12 ) month rolling total for each month in the reporting period recorded

pursua nt to § 208. 33 and 208. 34 ;

(3) All data relied upon, including, but not limited to, any Quality Assurance or Quality Control data, in calculating the monthly and annual PAL pollutant emissions;

(4) A list of any emissions units modified or added to the major stationary source during the preceding six ( 6 ) month period;

(5) The number, duration, and cause of any deviations or monitoring malfunctions (other than the time associated with zero (0) and span checks), and any corrective action taken;

(6) A not ification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the monitoring system will be fully operational or replaced with another monitoring system, and

whethe r the emissions unit monitored by the monitoring system continued to operate, and the calculation of the emissions of the pollutant or the number determined by method included in the permit, as provided by § 208. 30 ; and

(7) A signed statement by the respo nsible official (as defined by the applicable Title V operating permit program in c hapter 3 of this title) certifying the truth, accuracy, and completeness of the information provided in the report;

(b) The major stationary source owner or operator shal l promptly submit reports of any deviations or exceedances of the PAL requirements, including periods w here no monitoring is available;

(c) The deviation reports required under paragraph (b) shall be submitted in

accordance with § 302.1(c)(3)(C) of this title and shall contain the following information:

(1) The identification of owner and operator and the permit number;(2) The PAL requirement that experienced the deviation or that was exceeded;

(3) Emissions resulting from the deviation or the exceed ance; and

(4) A signed statement by the responsible official (as defined by the applicable Title V operating permit program in c hapter 3 of this title) certifying the truth, accuracy, and completeness of the information provided in the report; and

( d ) T he owner or operator shall submit to the Department the results of any revalidation test or method within three (3) months after completion of

such test or method.

208. 36 If any provision of this section, or the application of such provision to any person

of circumstance, is held invalid, the remainder of this section, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

CHAPTER 2 (GENERAL AND NON

- ATTAINMENT AIR PERMITS) of T ITLE 20 (ENVIRONMENT) of the DCMR is amended by adding a new s ection 210 to read as follows :

210 NOTICE AND COMMENT PRIOR TO PERMIT ISSUANCE

210.1 Before issuing a permit under this chapter, the Department shall prepare a draft

permit and provide adequa te notice to ensure that the affected community and the general public have reasonable access to the application and draft permit

information.

210.2 With the exception of any information that the Department deems is confidential

,

the Department shall ma ke available for public inspection:

(a) The application for a permit and any additional information that the Department requests ;

(b) The Department’s analysis of the application, including, where required or deemed appropriate, an ambient air quality an alysis, a regulatory review, and a control technology review; and

(c) The draft permit or justification for denial.

210.3 The Department shall publish a notice regarding the draft permit or denial in the

D.C. Register and shall make the information in § 210.2 available for public inspection at the Department’s office. In addition, the Department shall use atleast one (1) of the following procedures to ensure appropriate means of

notification:

(a) Mail or e

- mail a copy of the notice to persons on a m ailing list that the Department develops consisting of those persons who have requested to be placed on such a mailing list;

(b) Post the notice on the Department’s website;

(c) Publish the notice in a newspaper of general circulation in the area

affect ed by the source;

(d) Provide copies of the notice for posting at one (1) or more locations in the area affected by the source, such as p ost o ffices, libraries, community centers, or other gathering places in the community; or

(e) Employ other means of n otification as appropriate.

210.4 The notice shall include the following information at a minimum:

(a) Identifying information of the source, including the name and address of the facility

, and the name and telephone number of the facility manager or oth er contact person ;

(b) For preconstruction permits (including source category permits), the regulated NSR pollutants to be emitted, the affected emissions units, and the emission limitations for each affected emissions unit;

(c) For preconstruction permi ts, the emissions change involved in the permit action;

( d ) The name, address, and telephone number of a contact person in the Department from whom additional information may be obtained;

(e) Locations and times of availability of the information in § 21 0.2; and

( f ) A statement that any person may submit written comments, a written request for a public hearing, or both, on the draft permit action within thirty ( 30 ) days from the date of the public notice.

210.5 By mail or e

- mail, a copy of the notice s hall be sent to the applicant, the EPA

,

through Region III, and to all Affected States (as defined in 20 DCMR § 399) for the following permits:

(a) All NSR permits issued pursuant to § 204; and(b) All source category permits, when initially issued

.

SE CTION 299 (DEFINITIONS AND ABBREVIATIONS), SUBSECTION 299.1, of CHAPTER 2 (GENERAL AND NON

- ATTAINMENT AREA PERMITS) of TITLE 20 (ENVIRONMENT) of the DCMR is amended as follows:

The lead

- in language in § 299.1 is amended to read as follows:

299.1 The mean ings ascribed to the definitions and abbreviations appearing in § 199.1

and 199.2 of this title shall apply to any terms in this chapter not defined below. However, the following definitions shall apply to the terms as used in this chapter:

By adding th e definition for “Emissions unit” to read as follows :

Emissions unit

– means any part of a stationary source that emits or would have the potential to emit any regulated NSR pollutant following paragraphs (a) and (b) below:

(a) A new emissions unit is an y emissions unit that is (or will be) newly constructed and that has existed for less than two (2) years from the date such emissions unit first operated. Any emissions unit that is constructed or installed for the purpose of replacing an existing unit, or any emissions unit that is relocated from another stationary source for the purpose of replacing an existing unit, shall be considered a new emissions unit at the time of replacement and until two (2) years from the date such new unit commenced operation ; and

(b) An existing emissions unit is any emissions unit that is not a new emissions unit.

By adding the definition for “Major emissions unit” to read as follows :

Major emissions unit

– any emissions unit that emits or has the potential to emit the PAL pollutant in an amount that is equal to or greater than the major source threshold for the PAL pollutant as defined for a major stationary source in § 199.1 of this title

.

By amending the definition of “Major modification” to read as follows :

Major modi fication

– any physical change in or change in the method of operation of a major stationary source that would result in a significant emission increase and a significant net emissions increase of a regulated NSR pollutant from the major stationary source :

(a) Any emissions increase that is significant for volatile organic compounds or nitrogen oxides shall be considered significant for ozone;

(b) A physical change or change in the method of operation shall not include:

(1) Routine maintenance, repair

, and replacement. In determining whether an activity at a facility constitutes routine maintenance, repair

, and replacement, the owner oroperator shall consider the nature, extent, purpose, frequency, and cost of the work to be performed. Routine mainte nance, repair

, and replacement activities are narrow in scope, do not result in increased capacity, occur with regular frequency, and involve limited expense;

(2) Use of an alternative fuel raw material by reason of an order under §§ 2 (a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 ( 15 U.S.C. § § 791

, et seq

. (20 06 ) ) (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the Federal Power Act ( 16 U.S.C. § § 791a

, et

seq

. (20 06 ) ) ;

(3) Use of an alternative fuel by reason of an order or rule under § 125 of the Clean

Air Act;

(4) Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste;

(5) Use of an alternative fuel or raw ma terial by a stationary source which;

(A) The source was capable of accommodating before December 21, 1976, unless such change would be prohibited under any federally enforceable permit condition which was established after December 12, 1976 pursuant

to 4 0 C

. F

. R

. § 52.21 or under regulations approved pursuant to 40 C

. F

. R

. part 51, subpart I or 40 C

. F

. R

. § 51.166 ; or

(B) The source is approved to use under any permit issued pursuant to §§ 204

or 208 ;

(6) A change that only consists of an increase in the hours of operation or in the production rate, unless such change is prohibited under any federally enforceable permit condition which was established after December 21, 1976 pursuant to 40

C

. F

. R

. § 52.21 or regulations approved pursuant to 40 C

. F

. R

. part 51

, subpart I or

40 C

. F

. R

. § 51.166 ; or

(7) Any change in ownership at a stationary source; and

(c) This definition shall not apply with respect to a particular pollutant when the major stationary source is complying with the requirements under § 208 fo r a PAL for that pollutant. Instead, the definition for PAL major modification in § 299.1 shall apply.

By adding the definition of “Net emissions increase” to read as follows :

Net emissions increase

– is as follows:

(a) With respect to any regulated N SR pollutant emitted by a major stationary source, the amount by which the sum of subparagraphs (1) and (2) below exceeds zero (0) :(1) The emissions increase from the project

, determined according to the following:

(A) The emissions increase from the project is determined by summing the potential to emit from each new emissions unit and the difference between the potential to emit for each existing unit affected by the project after the change and the actual emissions prior to the change ; and

(B) An e missions unit is considered affected by the project if an emissions increase from the unit would occur as a result of the project, regardless of whether a physical change or change in the method of operation will occur at the particular emissions unit; and

(2) Any other increases and decreases in emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable;

(b) An increase or decrease in emissions is contemporaneous with the increase from the project only if it occurs during the period of five (5) consecutive calendar years before and including the date of submittal of the application and continuing until operation

commences;

(c) An increase or decrease in emissions is creditable only if th e Department or other reviewing authority has not relied on it in issuing a permit for the source under this section, which permit is in effect when the increase in emissions from the particular change occurs;

(d) An increase in emissions is creditable t o the extent that the new level of allowable

emissions exceeds the old level of actual emissions for the contemporaneous change;

(e) An increase that results from a physical change at a source occurs when the emissions

unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed one hundred eighty (180) days;

(f) A decrease in emissions is credib le , to the extent that:

(1) The old level of actual emissions exceeds the new level of allowable emissions;

(2) The new level of allowable emissions is enforceable as a practical matter at and after the time that actual construction on the particular cha nge begins;

(3) The Department has not relied on it in issuing any permit under regulations approved pursuant to 40 C

. F

. R

. part 51, subpart I or the State has not relied on it in demonstrating attainment or reasonable further progress; and(4) The decrea se in emissions has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change ; and

(g) Actual emissions for calculating increases and decreases under this paragraph shall be

determined as defined in § 199.1 of this title.

By adding the definition for “ Plantwide applicability limit ( PAL ) ” to read as follows :

Plantwide applicability limit ( PAL )

– an emission limitation, expressed in tons per year, for a pollutant at a major s tationary source that is federally enforceable and enforceable as a practical

matter established source

- wide in accordance with § 208.

By adding the definition for “PAL baseline emissions” to read as follows :

PAL baseline emissions

– the rate of emission s, in tons per year, of a single regulated NSR pollutant:

(a) For any emissions unit that was an existing emissions unit during the PAL baseline period, PAL baseline emissions means the average rate, in tons per year, at which the unit actually emitted t he pollutant during the PAL baseline period;

(1) The average rate shall include fugitive emissions to the extent quantifiable and any authorized emissions associated with startup and shutdown;

(2) The average rate shall not include excess emissions or e missions associated with upsets or malfunctions;

(3) The average rate shall be adjusted downward to exclude any non

- compliant emissions that occurred while the source was operating above any emission limitation that was legally enforceable during the PAL baseline period;

(4) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to compl y with such limitations during the PAL baseline period; and

(5) The average rate shall not be based in any period for which there is inadequate information either for determining emissions, in tons per year, or for adjustments required by sub paragraphs (1 ) through (4) above; and

(b) For any existing emissions unit that was not an existing emissions unit during the PAL baseline period but commenced operation during or after the selected PAL baseline period, the PAL baseline emissions shall equal the allowa ble emissions or the potential to emit, whichever is lower;(c) For a new emissions unit, PAL baseline emissions shall equal zero (0) ; and

(d) PAL baseline emissions shall be determined by measurement, calculations, estimations,

or recordkeeping in the order of the following preferences:

(1) Continuous Emission Monitoring System (CEM S ) data integrated to annual emissions using flow meters and conversion factors;

(2) Predictive Emissions Monitoring System (PEMS);

(3) Other Measurements and Calculation s:

(A) Stack emissions:

(i) Determine hourly emissions by stack emission testing;

(ii) Determine annual operating hours using hour meter records ; and

(iii) Calculate annual emissions using hourly emissions and annual operating hours ; or

(iv) Determin e emissions per heat input by stack emission testing;

(v) Determine amount of fuel combusted in a year using fuel flow meter record and calculate annual heat input; and

(vi) Calculate annual emissions using emissions per heat input and annual heat input ;

(B) Mass balance:

(i) Determine the amount of materials used through measurements in the process;

(ii) Calculate emissions per mass of material used using mass balance techniques;

(iii) Determine amount of material used in a year; and

(iv) Calcula te annual emissions using emissions per mass of material and amount of material used in a year;

(C) Emission Factors:

(i) Using generally recognized and accepted emission factors such as

AP

- 42, determine hourly emissions;(ii) Determine annual operatin g hours using hour meter records; and

(iii) Calculate annual emissions using hourly emissions and annual operating hours; or

(iv) Using generally recognized and accepted emission factors such as

AP

- 42, determine emissions per heat input unit;

(v) Determ ine amount of fuel combusted in a year using fuel flow meter record and calculate annual heat input; and

(vi) Calculate annual emissions using emissions per heat input and annual heat input; or

(4) Instances where measurements of operating hours or fuel combusted (hour meter or fuel flow meter) are not available, annual emissions can be calculated using available records (such as production records, fuel consumption records, fuel purchase receipts, laboratory reports on fuel analysis, and third party rec ords such as electric bills);

(A) Determine hourly emissions using stack emission tests, mass balance or emission factors;

(B) Determine annual hours of operation using production records; and

(C) Calculate annual emissions using hourly emissions and an nual hours of operation; or

(D) Determine emissions per heat input unit using stack emission tests, mass balance or emission factors;

(E) Determine amount of fuel combusted in a year records and calculate annual heat input; and

(F) Calculate annual emis sions using emissions per heat input and annual heat input.

By adding the definition for “PAL baseline period” to read as follows :

PAL baseline period

– the two (2) consecutive calendar years immediately prior to the year the application for a PAL is sub mitted. The Department may allow the use of a different

consecutive twenty

- four ( 24 ) month period within the last five (5) years upon a determination that the operations during that period would be more representative of normal source operations.

By addi ng the definition for “PAL effective date” to read as follows :PAL effective date

– generally means the date of issuance of the PAL permit. However, the

PAL effective date for an increased PAL is the date any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. The PAL limit that was in effect prior to the change shall remain in effect until the new PAL is effective.

By adding the definition for “PAL major modification” to read as follows :

PAL major modification

– notwithstanding the definitions for major modification and net

emissions increase in § 199.1, any physical change in or change in the method of operation of the PAL source that causes it to emit the PAL pollutant at a level greater than the PAL.

By adding the definition for “PAL pollutant” to read as follows :

PAL pollutant

– the pollutant for which a PAL is established at a major stationary source.

By adding the definition for “ Predictive emissions monitoring system (PEMS) ” as fo llows :

Predictive emissions monitoring system (PEMS)

– all of the equipment necessary to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, g as flow rate, O 2 or CO 2 concentrations), and calculate and record the mass emissions rate (for example, lb/hr) on a

continuous basis.

By adding a definition for “Regulated NSR ( new source review ) pollutant” as follows :

Regulated NSR ( new source review ) p ollutant

– i s the following:

(a) Nitrogen oxides or any volatile organic compounds;

(b) Any pollutant for which a national ambient air quality standard has been promulgated;

(c) Any pollutant that is a constituent or precursor of a general pollutant li sted under paragraphs (a) or (b) above, provided that a constituent or precursor pollutant may only be regulated under NSR as part of regu lation of the general pollutant;

(d) Precursors identified by the Administrator for purposes of NSR are the followin g:

( 1 ) Volatile organic compounds and nitrogen oxides are precursors to ozone in all

ozone nonattainment areas ;

( 2 ) S ulfur dioxide i s a precursor to PM 2.5 i n all PM 2.5 nonattainment areas;

( 3 ) Nitrogen oxides are presumed to be precursors to PM 2.5 in all PM 2.5 nonattainment areas, unless the Department demonstrates to the Administrator’ s satisf action or

EPA demonstrates that em issions of nitrogen oxides from sources in a spec ificarea are not a significant contributor to that area’ s ambient PM 2.5 conce ntrations;

and

( 4 ) Volatile organic compounds and ammonia ar e presumed not to be precursors to
PM 2.5 in any PM 2.5 nonattainment area , unless the Department demonstrates to the
Administrator’ s satisfaction or EPA demonstrates that emission s of volatile

org anic compounds or ammonia from sources in a specific area are a significant

contributor to that area’s ambient PM 2.5 concentrations; and

( e ) PM 2.5 emissions and PM 10 emissions shall include gaseous emissions from a so urce or activity which condense to fo rm particulate matter at ambient temperatures, determined in accordance with the following:

(1) S uch condensable partic ulate matter shall be accounted for in applicability

determinations and in establishing emissions limitations for PM 2.5 and PM 10 in

nona ttainment major NSR permits; and

(2) Compliance with emissions limitations for PM 2.5 and PM 10 shall not be b ased on condensable particulate matter unless required by the terms and conditions of the permit or the applicable implementation plan. Ap plicability d eterminations made prior to this date without accounting for condensable particulate matter shall no t
be considered in violation of this section unless the applicable implementation plan required condensable particulate matter to be included.

By adding th e definition for “Significant” as follows :

Significant

– in reference to a significant emissions increase, a significant net emissions

increase

, or the potential of a stationary source or emissions unit to emit a significant amount of a regulated NSR poll utant, a rate of emissions that would equal or exceed any of the following:

(a) Carbon monoxide: one hundred tons per year ( 100 T py );

(b) Ozone

- Nitrogen oxides or VOCs: twenty

- five ( 25 ) Tpy ;

(c) Sulfur dioxide: forty ( 40 ) Tpy ;

(d) Lead: six

- tenths ( 0.6 ) Tpy ;

(e) PM 10 : fifteen ( 15 ) Tpy ;

(f) PM 2.5 : ten ( 10 ) Tpy ;

(g) For the purposes of applying the requirements of this section, where applicable, to a major stationary source of a PM 10 precursor located in a PM 10 nonattainment area, the significant e mission rate for a PM 10 precursor is forty ( 40 ) Tpy or more of that precursor;(h) For the purposes of applying the requirements of this section, the significant emission

rate for a PM 2.5 precursor is forty ( 40 ) Tpy of sulfur dioxide emissions and forty ( 40 ) Tpy of nitrogen oxide emissions ;

(i) Notwithstanding the significant emissions rate for carbon monoxide stated above, significant for carbon monoxide in a serious nonattainment area is fifty ( 50 ) Tpy

, provided the Department has determined that the a pplicable stationary source contributes significantly to carbon monoxide levels in that area;

(j) Notwithstanding the significant emissions rates for ozone stated above, significant for volatile organic compounds in an extreme nonattainment area for ozon e is any amount above zero; and

(k) Notwithstanding the above paragraphs , any emissions rate or any net emissions increase associated with a major stationary source or major modification, which would construct within six and twenty

- one hundredths miles (6 .21 m. )

, or ten kilometers (10 km )

, of any Class I area, and have an impact on the area equal to or greater than one microgram per

cubic meter (1 μ g/m3 ) over a twenty

- four hour (24 hr) average.

By adding the definition for “Significant emissions increase ” to read as follows :

Significant emissions increase

– for a regulated NSR pollutant, an increase in emissions that is significant (as defined in this section) for that pollutant

.

By adding the definition for “Significant emissions unit” to read as follow s :

Significant emissions unit

– an emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level (as defined under “significant” in this subsection or in the Clean Air Act, which ever is lower) for that PAL pollutant.

By adding the definition for “Small emissions unit” to read as follows :

Small emissions unit

– an emissions unit that emits or has the potential to emit the PAL pollutant in an amount less than the significant level (as defined under “significant” in this subsection or in the Clean Air Act, whichever is lower) for that PAL pollutant.

By adding the definition for “Source category permit” to read as follows :

Source category permit

– a preconstruction or operating per mit issued by the Department that may be applied to a number of similar emissions units or sources. A source category permit may be written to address a single emissions unit, a group of the same type of emissions units, or an

entire minor source.DISTRICT DEPARTMENT OF THE ENVIRONMENT

NOTICE OF FINAL RULEMAKING

New Source Review P rogram

The Director of the District Department of the Environment, pursuant to the authority set forth in sections 5 and 6(b) of the District of Columbia Air Pollution Control Act of 1984, as amended, effective March 15, 1985 (D.C. Law 5

- 165; D.C. Official Code §§ 8

- 101.05 and 8

- 101.06(b) (2008 Repl .) ) ; section 107(4) of the District Department of the Environment Establishment Act of 2005, effective February 15, 2006 (D.C . Law 16

- 51; D.C. Official Code §

8

- 151.07(4) (2008 Repl .) ) ; Mayor's Order 98

- 44, dated April 10, 1998, and Mayor’s Order 2006

- 61, dated June 14, 2006, hereby gives notice of adopt ion of the fol lowing amendments to

C hapters 1 and 2 of t itle 20 (Environment ) of the District of Columb ia Municipal Regulations (DCMR)

. As required by section 6 (b) of the District of Columbia Air Pollution Control Act

, prior to the issuance of a Notice of Final Rulemaking, this rulemaking was submitted to the

Council of the Distri ct of Columbia (Council) for a review period of up to forty

- five (45) days. The Notice of Final Rulemaking was deemed approved by the Council on November 1, 2012

.

The New Source Review (NSR) program is a permit program created to help achieve and

maintain compliance with the National Ambient Air Quality Standards (NAAQS) set by the United States Environmental Protection Agency (EPA). The EPA has set NAAQS for six (6) “criteria” pollutants: ozone (O 3 ), particulate matter (PM), carbon monoxide (CO), nitroge n oxides (NO

x ), sulfur dioxide (SO 2 ), and lead (Pb). NSR applies to new and modified major

emission sources that have the ability to significantly impact air quality or interfere with other programs created to achieve and maintain NAAQ S levels. The Distr ict is currently designated by EPA as being in “ nonattainment ” of the NAAQS for ozone and particulate matter. Nonattainment NSR requires more stringent emission standards for certain pollutants that exceed the NAAQS. Therefore, the District must have inc reased control measures for particulate matter and the precursor pollutants (mainly NO

x and volatile organic compounds) that create ozone.

Proposed regulations were published in the D.C. Register on February 17, 2012 , at 59 DCR

001217. T he comment period officially closed on March 19 , 20 12

, with the Department having received comments from four (4) members of the regulated community , JBG Companies (JBG ),

t he U.S. Department of Defense (DOD ), the U.S. Ge neral Services Administration (GSA ), and

the D. C. Wat er and Sewer Authority (DC Water )

. The Department considered these comments and posted responses on its website on November 16, 2012; however the Department has elected not to incorporate the commenters’ suggested changes and is therefore proceeding with t his final

rule making

. The Department has made five (5) clarification amendments , which the Office of the Attorney General determined are non

- substantive in nature and therefore do not necessitate reproposal

. Section 200.3 is amended to replace the word “fo rms” with “for” and the phrase “of this chapter” is added after “in a ccordance with the requirements ” . These changes reflect the previous wording of § 200.3, which the Department did not intend to change through the proposed rulemaking but was altered due to a drafting error. Section 200.5 is amended to add the language
“construction or” after “ including applications for renewal of any ” and to add the language
“construction activities or” before “ operations are to continue beyond the expiration date ”. Theseamendments are made in response to comments requesting clarification whether the permit

renewal requirements apply to construction permits. Section 209.1(b) is amended to add the language “from an individual unit” after “[r]esults in an increase of the po tential to emit rate equal to or greater than five tons per year (5 Tpy)”. This amendment is intended to clarify that the Department determines minor NSR applicability on a unit

- by

- unit basis, not through project aggregation. Two (2) commenters request ed c larification on this issue.

The Department received several significant comments regarding the proposed rules ’ d eparture
from the federal nonattainment NSR rule, specifically with respect to the calculation of actual

emissions and PAL baseline emissions

, and the test for determining NSR applicability

. All four

commenters noted that the District proposed an “actual

- to

- potential” test for major NSR applicability, whereas the federal rule applies an “actual

- to

- projected

- actual” test. The

commenters noted that the actual

- to

- potential test would subject a large number of projects to NSR requirements even if they only resulted in a minor increase in actual emissions. The

c ommenters suggested that the District follow the federal rule ’s actual

- to

- projected actual t est. The Department is very familiar with the federal NSR rule and has submitted numerous drafts of its own proposed rule to EPA for comment, and determined that the actual

- to

- potential test is more protective of air quality in the District. The District ’s rule is intended to encourage
industries to use state

- of

- art technologies to limit their potential to emit below the NSR threshold when undergoing modifications , and in the event that this is not possible, to use the opportunity when they are already maki ng changes to install the most effective pollution control technology

and reduce overall emissions in the District through offsets . Therefore, the District has retain ed

the actual

- to

- potential test.

Two comments were received on the definition of “actual emissions” proposed in § 199. The federal nonattainment NSR rule permits sources to select any consecutive twenty

- four (24) month period within the previous ten (10) years when calculating the source’s actual emissions

, and also to choose a different twent y

- four (24) month period for each regulated pollutant. The District’s rule requires sources to use the “ the twenty

- four (24) month period which precedes the particular date” when calculating the actual emissions, unless it makes a determination that a

diff erent time period within the last five (5) is more representative of operations. Two commenters requested that DDOE follow the federal NSR rule by allowing sources to use the ten (10) year “look back” period and also to choose different periods for each re gulated pollutant. The Department has considered these comments and decided to retain the method for calculating actual emissions as proposed because it is more stringent than the federal rule and therefore more protecti ve of air quality in the District. T he look back period proposed by the District is intended to capture the emissions levels that are representative of current operations at the source, rather than permitting the source to just pick the twenty

- four (24) months when emissions where highest in the last ten (10) years . In addition, the requirement that sources use the same “twenty

four” month period for each pollutant is intended to prevent sources from choosing the highest baseline for each pollutant , and therefore will result in a more stringe nt limit on overall

emissions

.

Three commenters had similar concerns about the method for calculating Plantwide Applicability Limit ( PAL ) baseline emission s . These commenters requested clarification on why

the District proposed a more stringent method for determining the PAL baseline period than thefederal nonattainment NSR requirements, and suggested that it follow the federal rule. The

proposed rule uses the immediately preceding two (2) calendar years for the PAL baseline period, unless the Department determines that a different twenty

- four (24) month period within the previous five (5) years is more representative of normal source operations. The federal rule permits a source to use any consecutive twenty

- four (24) month period within the previous ten ( 10 ) years. The District proposed a five (5) year look back period instead of a ten (10) year look back to limit a source’s potent ial to find a higher baseline. The Department has determined that this method is more protective of air quality in the Distric t, because a lower baseline will also result in a lower PAL for the source and therefore likely lower actual emissions. Therefore, the

District retained the definition of “PAL baseline period” as proposed. The federal rule also permits sources to select a different PAL baseline period for each PAL pollutant, whereas the
District’s rule provides less flexibility

. One commenter requested that the District allow the selection of different baseline periods for different pollutants, as in the federal rule. Becau se the

PAL base line period is generally going to be the immediately preceding two (2) calendar years,

if a source applies for different PALs at different times, the baseline period will likely be

different for each pollutant

. (An exception would be if the Department determines that a different
twenty

- four (24) month period is more representative of normal source operations.) If a source applies for multiple PALs at the same time, then the baseline period for each PAL would be the

same. Re stricting sources t o one baseline is intended to prevent a source from selecting the highest baseline for each regulated pollutant, and therefore will also result in a lower PAL and be more protective of air quality in the District. Therefore, the District has retained the p roposed

method for determined the PAL baseline period.

Three commenters sought clarification on whether the public notice and comment procedures proposed in § 210 would allow the Department to issue synthetic minor permits, and if so, would the Department confirm whether it intends to issue such permits. The Department recognizes the need for a synthetic minor program and agrees that the public notice and comment provisions in § 210 will be sufficient to support such a program when it does create one in th e future. However, the District will not have the resources to implement a synthetic program until it

creates a fee sch edule for 20 DCMR c hapter 2 p ermits and amends the fees for 20 DCMR

c hapter 3 permits. The synthetic minor program will be created at the same time as these fee amendments through a separate rulemaking action.

Three commenters requested that the Department clarify whether a deviation report required under § 208.35(b) is considered prompt if it complies with the overarching semi

- annual repo rting requirement of the proposed section. Deviation reports must be submitted in accordance with the requirements specified in the source’s permit and 20 DCMR § 302.1(c)(3). While this will mean that many deviation reports are considered prompt if they ar e submitted with the source’s semi

annual reports, some deviations may be required to be reported sooner, such as deviations resulting from an emergency or that pose an imminent and substantial danger to public health.

Two commenters requested that the Di strict expand the list of exempted sources under § 200 .12. One commenter requested that the District create an exemption for temporary, portable sources, such as portable generators. Another commenter requested that the District add general language

that i t will develop a list of exempted sources and physical changes

, and publish this list for thirty ( 30 ) days of public comment in the D.C. Register

. The Department recognizes that theremay be a need to exempt addition al sources from the 20 DCMR c h apter 2 pe rmitting

requirements; however it does not intend to address additional exemptions through the current rulemaking. However, it is the Department’s policy that it does not consider portable generators to be a “stationary source” subject to the requirements of § 200 provided they do not remain in

one location for more than twelve ( 12 ) consecutive months. This is consistent with the definition

of “ stationary source ” in the federal Clean Air Act, which does not include emissions from a nonroad engine. 42 U.S.C . § 7603(z). The term “nonroad engine” is defined by the U.S. Environmental Protection Agency (“EPA”) as including “any internal combustion engine ... [t]hat, by itself or in or on a piece of equipment, is portable or transportable, meaning designed to

be a nd capable of being carried or moved from one location to another,” but not including an engine that “remains or will remain at a location for more than 12 consecutive months.” 40
C.F.R. § 89.2.

The Department also received comments on the proposed Mino r New Source Review program proposed in § 209. One commenter asked the District to consider a higher applicability threshold. One commenter suggested that the District consider dropping the minor NSR program altogether . The commenter argued that the progra m effectively lowered the major source and major modification threshold to five ( 5 ) tons per year ( tpy )

. The Department disagrees with this characterization of the minor NSR program. Minor NSR provides more flexibility with respect to the required control technologies than major NSR and does not require that emissions increases

be offset. Also, minor NSR applicability is determined through a potential

- to

- potential test rather

than an actual

- to

- potential test and therefore is less stringent. The intent of th e minor NSR program is to discourage sour ces from installing used emissions units with outdated pollution control technologies, and instead require them to install new state

- of

- the

- art equipment. The same commenter also requested that the Department publis h a manual detailing the state

- of

- the

art (SOTA) technology requirements for compliance with minor NSR. The Department does not have the resources at this time to publish such a manual , therefore compliance with the requirements of § 209 will be determined on a case

- by

- case basis for the time being

. The Department may consider publishing a document that provides guidance on SOTA at a future

date.

Two commenters sought clarification on whether minor NSR applicability was determined on a

unit

- by

- unit basis or whether the use of the word “project” and the reference to “collateral emissions increases” imply that the Department will aggregate emissions units. The Department

clarifies that minor NSR applicability is determined on a unit

- by

- unit basis. The term “ project” as defined in § 199 is only applicable to major sources and the language “that results in collateral emissions increases” is intended to clarify when installation or modification of a pollution control device would trigger minor NSR applicability. For new sources or modifications to existing sources, collateral emissions increases will not be considered.

SECTION 199 (DEFINITIONS AND ABBREVIATIONS )
, subsection 199.1, of CHAPTER 1 (GENERAL RULES), of TITLE 20 (ENVIRONMENT) of the DCMR is amended as follows:By amending the definition of “Actual emissions” to read as follows :

Actual emissions

– the actual rate of emissions of a pollutant from an emissions unit, as determined in accordance with paragraphs (a) through (g):

(a) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emitted the pollutant during the twenty

- four ( 24 ) month period which precedes the particular date and which is representative of normal source

oper ation;

(b) Actual emissions shall be calculated using the unit’s actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period;

(c) When a project involves multiple emissions units or mul tiple regulated NSR pollutants, or both, only one (1) consecutive twenty

- four (24) month period within the last five (5) years must be used to determine the actual emissions for all pollutants and for all the emissions units affected by the project;

(d) T he average rate shall not be based on any consecutive twenty

- four (24) period for which there is inadequate information for determining annual emissions;

(e) The Department may allow the use of a different time period within the last five (5) years

upon determining that it is more representative of operations; and

( f ) For any emissions unit which has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date.

By adding a definition fo r “Administrator” to read as follows :

Administrator

– Administrator of the United States Environmental Protection Agency or an authorized representative.

By amending the definition of “Allowable emissions” to read as follows :

Allowable emissions

– the e mission rate of a stationary source calculated using the maximum rated capacity of the source (unless the source is subject to enforceable limits which restrict the operating rate, hours of operation, or both) and the most stringent of the following:

(a) The applicable standards as set forth in 40 C

. F

. R

. parts 60, 61, and 63;

(b) Any applicable State Implementation Plan emissions limitation, including those with a future compliance date; or(c) The emissions rate specified under any requirement or per mit condition that is

enforceable as a practical matter , including those with a future compliance date.

By adding a definition for “Best available control technology” to read as follows :

Best available control technology (BACT)

– an emissions limitation (including a visible emissions standard) based on the maximum degree of reduction for each regulated NSR pollutant which would be emitted from any proposed major stationary source or major modification which the Department, on a case

- by

- case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning or treatme nt or innovative fuel combustion techniques for control of such pollutant. In no event shall application of best available control technology result in emissions of any pollutant that would exceed the emissions allowed by any applicable standard under 40

C

. F

. R

. parts 60

, 61 , or 63 . If the Department determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equip ment, work practice, operational standard, or combination thereof, may be prescribed instead to satisfy the requirement for the application of BACT. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementatio n of such design, equipment, work practice or operation, and shall provide for compliance by means that achieve equivalent results.

By amending the definition for “Building, structure, facility, or installation” to read as

follows :

Building, structure, facility, or installation

– all of the pollutant emitting activities which belong to the same industrial grouping, are located on one (1) or more contiguous or adjacent properties, and are under the control of the same person (or persons under common contr ol), except the activities of any vessel. Pollutant

- emitting activities shall be considered as part of the same industrial grouping if they belong to the same “Major Group” ( for example , which have the same first two (2) digit code) as described in the St andard Industrial Classification Manual, 1972, as amended by the 1977 Supplement (U.S. Government Printing Office stock numbers 4101

- 0066

and 003

- 005

- 00176

- 0, respectively).

By adding a definition for “Clean Air Act” to read as follows :

Clean Air Act

– federal Clean Air Act, enacted August 7, 1977 (Public Law 95

- 95; 42 U.S.C.

7401 et seq. )

.

By adding a definition for “Construction” to read as follows :

Construction

– any physical change or change in the method of operation including fabrication,

erecti on, installation, demolition, or modification of an emissions unit that would result in a change in emissions.

By adding a definition for “Continuous emissions monitoring system” to read as follows :Continuous emissions monitoring system (CEMS)

– all of the equipment that may be required

to meet data acquisition and availability requirements to sample, condition (if applicable), analyze, and provide a record of emissions on a continuous basis.

By adding a definition for “Continuous emissions rate monito ring system” to read as follows :

Continuous emissions rate monitoring system (CERMS)

– the total equipment required for the determination and recording of the pollutant mass emissions rate of mass per unit of time.

By adding a definition for “Continuou s parameter monitoring system” to read as follows :

Continuous parameter monitoring system (CPMS)

– all of the equipment necessary to meet the data acquisition and availability requirements of this section, to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, O 2 or CO 2 concentrations), and to record average operational parameter value(s) on a continuous basis.

By adding a defin ition for “Department” to read as follows :

Department

– The District Department of the Environment (DDOE).

By deleting the definition of “ Federal Clean Air Act .”

By amending the definition of “Federally enforceable” to read as follows :

Federally enforc eable

– all limitations and conditions which are enforceable by the Administrator, including those requirements developed pursuant to 40 CFR parts 60

, 61, and 63 requirements within any applicable state implementation plan, any permit requirements

establis hed pursuant to 40 C

. F

. R

. § 52.21 or under regulations approved pursuant to 40 CFR part 51, subpart I, including operating permits issued under an EPA

- approved program that is incorporated into the state implementation plan and expressly requires adherence to any permit issued under such program, or any permit requirements not designated as “state only” in a federal operating permit, a permit issued pursuant to c hapter 3 of this title, or a permit issued pursuant to

40 C

. F

. R

. parts 70 and 71.

By adding a d efinition for “Lowest achievable emission rate” to read as follows :

Lowest achievable emission rate (LAER)

– for any source, the more stringent rate of emissions based on the following:

(a) The most stringent emissions limitation which is contained in t he implementation plan of any State for such class or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable; or(b) The most stringent emissions limitation whic h is achieved in practice by such class or

category of stationary sources. This limitation, when applied to a modification, means

the lowest achievable emissions rate for the new or modified emissions units within or stationary source. In no event shall the application of the term permit a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable under an applicable new source standard of performance.

By deleting the definition of “Major Modification.”

By amendin g the definition of “Major stationary source” to read as follows :

Major stationary source

– any stationary source of air pollutants which emits, or has the potential to emit, one hundred tons per year (100 T py) or more of any pollutant regulated under

the Clean Air Act, except that lower emissions thresholds shall apply as follows:

(a) Seventy ( 70 ) Tpy or more of PM 10 or, where applicable, seventy ( 70 ) Tpy of a specific

PM 10 precursor, in any nonattainment area for PM 10 ;

(b) Fifty ( 50 ) Tpy or more of ca rbon monoxide in any serious nonattainment area for carbon monoxide, where stationary sources contribute significantly to carbon monoxide levels in the area (as determined under rules issued by the EPA Administrator);

(c) Twenty

- five ( 25 ) Tpy or more of nitrogen oxides or volatile organic compounds in any nonattainment area for ozone, except where paragraph (d) below is applicable;

(d) Ten ( 10 ) Tpy or more of nitrogen oxides or volatile organic compounds in any extreme nonattainment area for ozone;

(e) Any physical change that would occur at a stationary source not qualifying under paragraphs (a)

- (d) above, is a major stationary source if the change would constitute a major stationary source by itself;

(f) A major stationary source that is major fo r volatile organic compounds or oxides of nitrogen shall be considered major for ozone; and

(h) The fugitive emissions of a stationary source shall not be included in determining major stationary source status, unless the source belongs to one (1) of the following categories of stationary sources:

(1) Coal cleaning plants (with thermal dryers);

(2) Kraft pulp mills;

(3) Portland cement plants;

(4) Primary zinc smelters;(5) Iron and steel mills;

(6) Primary aluminum ore reduction plants;

(7) Primar y copper smelters;

(8) Municipal incinerators capable of charging more than two hundred fifty tons ( 250

T ) of refuse per day;

(9) Hydrofluoric, sulfuric, or nitric acid plants;

(10) Petroleum refineries;

(11) Lime plants;

(12) Phosphate rock proc essing plants;

(13) Coke oven batteries;

(14) Sulfur recovery plants;

(15) Carbon black plants (furnace process);

(16) Primary lead smelters;

(17) Fuel conversion plants;

(18) Sintering plants;

(19) Secondary metal production plants;

(20) C hemical process plants;

(21) Fossil

- fuel boilers (or combination thereof) totaling more than two hundred fifty

million British thermal units (250,000,000 Btus ) per hour heat input;

(22) Petroleum storage and transfer units with a total storage capacity exceeding three hundred thousand ( 300,000 ) barrels;

(23) Taconite ore processing plants;

(24) Glass fiber processing plants;

(25) Charcoal production plants;(26) Fossil fuel

- fired steam electric plants of more than two hundred fifty million

Briti sh thermal units (250,000,000 Btus) per hour heat input; and

(27) Any other stationary source category which, as of August 7, 1980, is being regulated under §§ 111 or 112 of the Clean Air Act.

By amending the definition of “modification” to read as foll ows :

Modification

– other than as used in § 205 of this title, any physical change in, or change in the method of operation of, a stationary source which increases or decreases the amount of any air pollutant emitted by the source, or which results in the emission of any air pollutant not previously emitted, except that the term shall not include the following:

(a) Routine maintenance, repair, or replacement;

(b) An increase in the hours of operation or in the production rate, unless the change would be prohibited under any federally enforceable permit condition established pursuant to § 204;

(c) Use of an alternative fuel or raw material if, prior to March 15, 1985, the affected facility was designed to accommodate the alternative use; and

(d) Decommi ssioning or removal.

By deleting the definition of “Net Emissions Increase.”

By adding a definition for “Particulate Matter 2.5 (PM 2.5 )” to read as follows:

Particulate Matter 2.5 (PM 2.5 )

– finely divided solid or liquid material, including condensable particulate, other than uncombined water, with an aerodynamic diameter less than or equal to a

nominal two and a half micrometers ( 2.5 μm ) , emitted to the ambient air. When used in the context of ambient concentration, means particles with an aerodynamic diameter less than or equal to a nominal two and a half micrometers (2.5 μm) as measured by a reference method

based on 40 C

. F

. R

. p art 50, a ppendix L, or an equivalent method designated in accordance with

40 C

. F

. R

. p art 53.

By adding a definition for “Pa rticulate Matter 10 (PM 10 )” to read as follows:

Particulate Matter 10 (PM 10 )

– particulate matter with an aerodynamic diameter less than or equal to a nominal ten micrometers ( 10 μm)

.

By amending the definition of “Potential to emit” to read as follows :

Potential to emit

– the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equip ment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treatedas part of its design only if the limitation or the effect it would have on emissions is enforceable

as a practical matter

. Secondary emissions do not count in determining the potential to emit of a stationary source.

By adding a definition for “Project” as follows :

Project

– a physical change in, or change in the method of operation of, an e xisting major stationary source

.

SECTION 199 (DEFINITIONS), subsection 199.2, of CHAPTER 1 (GENERAL RULES), of TITLE 20 (ENVIRONMENT) of the DCMR is amended to add the following acronyms :

Best Available Control Technology BACT

Lowest Achievable Emissions Rate LAER

New Source Review NSR

Particulate Matter 2.5 PM 2.5

SECTION 199 (DEFINITIONS), subsection 199.2, of CHAPTER 1 (GENERAL RULES), of TITLE 20 (ENVIRONMENT) of the DCMR is amended as follows:

The second definition for the acronym, “PM,” which is currently defined as:

particulate matter with an aerodynamic diameter

is amended to read “ PM 10 ” as follows:

Particulate Matter 10

SECTION 200 (GENERAL PERMIT REQUIREMENTS) , of CHAPTER 2 ( GENERAL

AND NON

- ATTAINMENT AREA PERMITS ), of TITLE 20 (ENVIRONMENT) of the

DCMR is amended to r ead as follows:

200 GENERAL PERMIT REQUIREMENTS

200.1 A permit from the Department shall be obtained before any person shall cause,

suffer, or allow the construction of a new stationary source, or the modification of an existing stationary source, or the installation or modification of any air pollution control device on a stationary source.

200.2 An operating permit shall be obtained from the Department before any person

shall cause, suffer, or allow the operation of the following:

(a) Any major stati onary source, for which a construction or modification permit is required under § 200.1; or(b) Any source for which a construction or modification permit is required under § 200.1, and which construction or modification permit was subject

to conditions which affect, or would affect, the operation of the source.

200.3 The Department may allow the temporary operation of a source for a period no

longer than one (1) month. This period may be extended month to month, to

enable the initial evaluation of the operation of a source or device granted a permit under § 200.1, or to enable the continued operation of a source for which an application for an operating permit under § 200.2 has been filed, but due to delays attributable to the Department the permit has not been issued. Any temporary operation of a source shall be in accordance with the requirements of this chapter

.

200.4 Construction and operating permits, shall be valid for the period specified in the

permit, but not to exceed five (5) years.

200.5 E ach owner or operator of a stationary source or device for which a permit is

required shall timely file with the Department the appropriate application, including applications for renewal of any construction or operating permit, if

construction activities or operations are to continue beyond the expiration date of an existing permit.

200.6 The Department may, after its review, review by EPA and affected states (as

defined in 20 DCMR § 399 ), and after notice and opportunity for public comment and hearing as required by § 210, establish a source category permit covering a group of similar sources or emission units according to (a) through (h) of this

subsection :

(a) Any source category permit shall comply with all requirements applicable

to the source pursua nt to the air quality regulations this title;

(b) During establishment of any source category permit, the Department shall establish criteria by which sources may qualify for the source category permit;

(c) The Department shall maintain records of the pu blic comments and issues raised during the public participation process;

(d) A source category permit does not substitute for a permit required under

c hapter 3 of this title ;

(e) A response to each source category permit application may not be provided, rather the source category permit may specify a reasonable period of time after which an application is deemed approved and the applicant may construct and operate under the source category permit;(f) The applicant for a source category permit may be iss ued an individual permit or letter or other document indicating that the application has been approved or denied;

(g) If the Department provides an individual response, as provided in paragraph (f), the permittee shall retain the response and make it avai lable on request to authorized officials of the Department; and

(h) Any established source category permit is subject to the expiration and

renewal conditions found in § 200.4 and 200.5 and may be revised by following the same process as is used for origi nal establishment of the permit.

200.7 Applications for permits shall be filed with the Department on the form or forms

that the Department shall prescribe and shall be accompanied by the data, information, and analyses necessary or desirable to enable th e Department to determine whether the requested permit should be issued or denied.

200.8 The Department may require, at any time, the submission of the data, information,

and analyses that the Department may deem necessary or desirable, to allow the Depar tment to determine whether a requested permit should be issued or denied, or an outstanding permit should be modified or revoked.

200.9 Applications for construction and operating permits may incorporate by reference

data, information, and analyses otherw ise available or provided to the Department, provided that the reference is clear and specific.

200.10 Each permit application shall be accompanied by a fee to be determined by the

Department.

200.11 An application for a permit shall be signed in the fol lowing manner:

(a) If the applicant is a partnership, a general partner shall sign the application;

(b) If the applicant is a corporation, association, or cooperative, an officer shall sign the application;

(c) If the applicant is a sole proprietorship, the pr oprietor shall sign the application; and

(d) If the applicant is a government or governmental agency, department, or board, a senior executive of that government, agency, department, or board who has authority to sign shall sign the application.200.12 No permit shall be required for any fuel burning equipment which has a capacity

of five million British thermal units (5,000,000 Btus ) or less per hour of heat input and which uses for fuel only gaseous fuels or distillate oils. This section shall not appl y to sources subject to § 204.

200.13 The Department shall establish a schedule of fees for construction and operating

permits. These fees shall be sufficient to cover the reasonable costs of reviewing and acting upon the application and the reasonable co sts of implementing and enforcing the terms and conditions of the permit.

SECTION 204 ( PERMIT REQUIREMENTS FOR SOURCES AFFECTING NON

ATTAINMENT AREAS) of CHAPTER 2 ( GENERAL AND NON

- ATTAINMENT AREA
PERMITS ) of the DCMR is repealed and replaced with :

204 PERMIT REQUIREMENTS FOR MAJOR SOURCES LOCATED IN

NON

- ATTAINMENT AREAS (NEW SOURCE REVIEW)

204.1 This section shall apply to the construction of any new major stationary source or

any major modification at an existing major stationary source in an area

des ignated as nonattainment under § 107(d)(1)(A)(i) of the Clean Air Act.

204.2 Permit applications submitted pursuant to this section shall include a control

technology evaluation to demonstrate that any new major stationary source or major modification wil l meet the lowest achievable emission rate (LAER) for all new or modified emissions units, unless otherwise provided in this section.

204.3 Any permit application submitted pursuant to this section shall provide for

creditable emission reduction offsets p ursuant to this section. The application shall provide documentation adequate for the Department to assess the validity of the proposed offsets.

204.4 Any new major stationary source or major modification to be constructed in an

area designated as nonatt ainment shall comply with LAER as determined by the Department and set forth in a preconstruction permit issued pursuant to this

section.

204.5 Any new major stationary source or major modification to be constructed in a

nonattainment area shall not be gin actual construction without a permit issued by the Department that incorporates the applicable control technology and offset requirements as specified in § 204. 18 and 204.19

.

204.6 Before applying for a permit to construct, the owner or operator shall determine

applicability pursuant to the provisions below and submit this determination with the permit application:(a) A project is a major modification for a regulated NSR pollutant as defined

in § 299;

(b) Determine whether the emissions increases from the project are significant

as defined in § 299 by summing the potential to emit from each new emissions unit and the difference between the potential to emit for each existing unit affected by the project after the change and the actual emissions pri or to the change;

(c) Determine whether the project results in a significant net emissions

increase as defined in § 299;

(d) An emissions unit is considered affected by the project if an emissions increase from the unit would occur as a result of the pro ject, regardless of whether a physical change or change in the method of operation will occur at the particular emissions unit; and

(e) Subsection 204.17 pertains to projects that result in a significant increase

in a regulated NSR pollutant, but do not r esult in a significant net

emissions increase.

204.7 Any major stationary source subject to a Plantwide Applicability Limit (PAL) for

a regulated NSR pollutant shall comply with the requirements set forth in § 208.

204.8 For sources and modifications su bject to any preconstruction review program, the

baseline for determining credit for emissions reductions is the emissions limit under the State Implementation Plan in effect at the time the application to construct is filed, except that the offset baselin e shall be the actual emissions of

the source from which offset credit is obtained where:

(a) The demonstration of reasonable further progress and attainment of ambient air quality standards is based upon the actual emissions of sources

located within the designated nonattainment area; or

(b) The State Implementation Plan does not contain an emissions limitation for that source or source category.

204.9 In determining offset credits, the following provisions shall also apply:

(a) Where the emissions l imit under the State Implementation Plan provides for greater emissions than the potential to emit of the source, offset credits will be granted only for control below the potential to emit;

(b) For an existing fuel combustion source, credit shall be bas ed on the allowable emissions under the applicable State Implementation Plan forthe type of fuel being burned at the time the application to construct is

filed:

(1) If the existing source commits to switch to a cleaner fuel at some future date, emissions offset credit based on the allowable (or actual) emissions for the fuels involved is not acceptable, unless the permit is conditioned to require the use of a specified alternative control measure which would achieve the same degree

of emissions reduction should the source switch back to a dirtier fuel at some later date; and

(2) The Department should ensure that adequate long

- term supplies of the new fuel are available before granting emissions offset credit for fuel switches; and

(c) Emissions reductio ns achieved by shutting down an existing source or curtailing production or operating hours below baseline levels may be generally credited if such reductions are surplus, permanent, quantifiable, and federally enforceable:

(1) The shutdown or curtailment is creditable only if it occurred on or after the date of the most recent emissions inventory used in the plan's demonstration of attainment, unless an earlier cutoff date has been specified in the plan;

(2) In no event may credit be given for shutdowns that occurred prior to August 7, 1977; and

(3) For purposes of this subsection, the Department may choose to consider a prior shutdown or curtailment to have occurred after the date of its most recent emissions inventory, if the inventory explicitly incl udes as current existing emissions the emissions from such previously shutdown or curtailed sources

.

204.10 No emissions credit may be allowed for replacing one (1) hydrocarbon compound

with another of lesser reactivity, except for those compounds listed in Table 1 of EPA's "Recommended Policy on Control of Volatile Organic Compounds,'' 42

F ed. R eg. 35314 ( July 8, 1977 )

.

204.11 All emission reductions claimed for offset credit shall be federally enforceable.

204.12 Procedures relating to the permissible location of offsetting emissions shall be

followed which are at least as stringent as those set out in 40 C

. F

. R

. part 51,

a ppendix S, § IV.D.204.13 Credit for an emissions reduction can be claimed to the extent that the Department

has not relied on it in issuing any permit under regulations approved pursuant to

40 C

. F

. R

. part 51, subpart I, or the District has not relied on it in demonstrating attainment or reasonable further progress.

204.14 The total tonnage of increased emissions, in tons per year, resulting from a major

modification that must be offset in accordance with § 173 of the Clean Air Act shall be determined by summing the difference between the allowable emissions

after the modification and the actual emissions before the modification for each

emissions unit.

204.15 The provisions of § 204 do not apply to a source or modification that would be a

major stationary source or major modification only if fugitive emission s to the extent quantifiable are considered in calculating the potential to emit of the stationary source or modification and the source does not belong to any of the categories listed under the definition of major stationary source in § 199.1.

204.16 The following provisions apply to any owner or operator subject t o the air qu ality

regulations of this title :

(a) Approval to construct shall not relieve any owner or operator of the responsibility to comply fully with applicable provisions of the State Implementation Plan and any other requirements under local, s tate or
f ederal l aw; and

(b) At such time that a particular source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in any enforceable limitation which was established after August 7, 1980, on the capacity of the so urce or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then the requirements of this section shall apply to the source or modification as though construction had not yet commenced on the source or modification.

20 4.17 For any project that would result in a significant emissions increase, but is not

considered a major modification:

(a) Before submitting a permit application for such a project, the owner or operator shall document and maintain a record of the follow ing

information:

(1) A description of the project;

(2) Identification of the emissions unit(s) whose emissions of a regulated NSR pollutant could be affected by the project; and(3) The applicability analysis used to determine the project is not a major modification for any regulated NSR pollutant, including the actual emissions, the potential to emit after the project, and the netting analysis;

(b) The owner or operator shall provide a copy of the information set out in paragraph (a) to the Department with a permit application submitted
pursuant to § 200.1 ; and

(c) The owner or operator of the source shall make the information required in paragraph (a) available for review upon the Department’s request

.

204.18 The permit shall require that in meeting the emissions offset requirements for

ozone nonattainment areas, the ratio of total actual emission reductions of VOC or

NO X to the emissions increase of VOC or NO X shall be at least one and three tenths to one (1.3:1).

204.19 The permit shall require th at in meeting the emissions offset requirements for all

other nonattainment areas, the ratio of total actual emission reductions of any pollutant to the emissions increase of that pollutant shall be at least one to one (1:1).

204. 20 R equirements of this c hapter applicable to major stationary sources and major

modifications of PM 10 shall also apply to major stationary sources and major

modificat ions of PM 10 precursors, except where the Administrator determines that

such sources do not contribute significant ly to PM 10 levels that exceed the PM 10 ambient standards in the area.

204.2 1 In meeting th e emissions offset requirements of § 204.8 through 204.14, the

emissions offsets obtained shall be for the same regulated NSR pollutant , except as provided in § 204. 22

.

204.2 2 The Department may allow the offset requirement s in § 204.8 through 204.14 for

direct PM 2.5 emissions or precursors of PM 2.5 to be satisfied by offsetting

reductions in direct PM 2.5 emissions or emissions of any PM 2.5 precursor , using a

ratio a pproved by the Department following public notice and co mment and approval by EPA.

SECTION 206 (NOTICE AND COMMENT PRIOR TO PERMIT ISSUANCE) of CHAPTER 2 (GENERAL AND NON

- ATTAINMENT AREA PERMITS) of TITLE 20 (ENVIRONMENT) of the DCMR is repealed and repl aced with:

206 [RESERVED]CHAPTER 2 (GENERAL AND NON

- ATTAINMENT AREA PERMITS) of TITLE 20

(ENVIRONMENT) of the DCMR is amended by adding a new section 208 to read as

follows:

208 PLANTWIDE APPLICABILITY LIMIT (PAL) PERMITS FOR MAJOR

SOURCES

208.1 Th e Department may approve the use of a Plantwide Applicability Limit (PAL)

for any existing major stationary source if the PAL meets the requirements in this

section.

208.2 The Department shall not approve the use of a PAL for VOC or NO

x for any

major sta tionary source in an extreme ozone nonattainment area.

208.3 Any physical change in or change in the method of operation of a major stationary

source that maintains its total source

- wide emissions below the PAL level, meets the requirements of this sectio n, and complies with the PAL permit is not a major modification for the PAL pollutant and does not have to be approved through the nonattainment New Source Review program in § 204.

208.4 Any major stationary source operating under a PAL permit shall conti nue to

comply with all applicable federal, state or local requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL permit, excluding any enforceable emissions limitations

that the sourc e used to avoid applicability with the requirements of the District’s NSR program under § 204 and 206 , except as modified through normal permit modification processes under c hapter 2 or c hapter 3 of this t itle

.

208.5 As part of a permit application requ esting a PAL, the owner or operator of a major

stationary source shall submit the following information to the Department for approval:

(a) A list of all emissions units at the source designated as small, significant, or major based on their potential to emit

. In addition, the owner or operator of the source shall indicate which, if any, federal or state applicable requirements, emission limitations, or work practices apply to each unit;

(b) Calculations of the PAL baseline emissions, with supporting

do cumentation, for all emissions units at the source;

(c) The calculation procedures that the major stationary source owner or operator proposes to use to convert the monitoring system data to monthly

emissions and annual emissions based on a twelve ( 12 ) mo nth rolling total for each month as required by § 208. 33 ; and

(d) Any other information requested by the Department.208.6 The Department may establish a PAL at a major stationary source, provided that at a minimum, the following requirements are met:

(a) The PAL shall impose an emission limitation that is federally enforceable and enforceable as a practical matter, for the entire major stationary source, with compliance to be determined as follows:

(1) For each month during the PAL effective period af ter the first twelve ( 12 ) months of establishing a PAL, the major stationary source owner or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous twelve ( 12 ) consecutive months is less than the P AL (a twelve (12) month average, rolled monthly); and

(2) For each month during the first eleven ( 11 ) months from the PAL effective date, the major stationary source owner or operator shall show that the sum of the preceding monthly emissions from the

PAL effective date for each emissions unit under the PAL is less

than the PAL ;

(b) The PAL shall be established in a PAL permit that meets the public participation requirements in § 208.8;

(c) The PAL shall be set in accordance with the requirements of § 20 8.9;

(d) The PAL permit shall contain all the requirements in § 208.10;

(e) Each PAL shall regulate emissions of only one (1) pollutant;

(f) Each PAL shall have a term of no more than five (5) years; and

(g) The PAL permit shall contain monitoring, re cordkeeping

, and reporting

conditions consistent with § 208. 24 through 208. 35

.

208.7 At no time (during or after the PAL effective period) are emissions reductions of a

PAL pollutant that occur during the PAL effective period creditable as decreases

for purposes of offsets under 40 C

. F

. R . § 51.165(a)(3)(ii) unless the level of the PAL is reduced by the amount of such emissions reductions and such reductions

would be creditable in the absence of the PAL.

208.8 PALs for existing major stationary sources s hall be established, renewed, or

increased through a public participation procedure that is consistent with 40

C

. F

. R . § § 51.160 and 51.161 and § 210, including the following:(a) The Department shall provide the public with notice of the proposed approval of a PAL permit and at least a thirty ( 30 ) day period for submittal of public comment; and

(b) The Department shall address all material comments before taking final action on the permit.

208.9 The initial PAL level for a major stationary source shall b e established as follows:

(a) The initial PAL shall be the sum of:

(1) The significant level for the PAL pollutant as defined in § 299.1 or under the Clean Air Act, whichever is lower; and

(2) The PAL baseline emissions of the PAL pollutant for each

em issions unit at the source at the time the application is submitted, except that PAL baseline emissions from any emissions unit that has been permanently shut down shall not be included in establishing the PAL;

(b) The Department shall establish a future effective PAL adjustment in the PAL permit to reflect a reduction (in tons per year) for any applicable federal or state regulatory requirement with a future compliance date; and

(c) For newly constructed units (which do not include modifications to

exis ting units) on which actual construction began after the twenty

- four (24) month period, in lieu of adding the baseline actual emissions as specified in paragraph (a) , the emissions must be added to the PAL level in an amount equal to the potential to emit of the units.

208.10 The PAL must contain, at a minimum, the following information:

(a) The PAL pollutant and the applicable source

- wide emission limitations in tons per year and their effective dates;

(b) The PAL permit effective date and the expiratio n date of the PAL;

(c) Specification in the PAL permit that if a major stationary source owner or operator applies to renew a PAL in accordance with § 208. 16 through

208. 18 before the end of the PAL effective period, then the PAL shall not expire at the e nd of the PAL effective period but it shall remain in effect until final action is taken by the Department on the application for renewal;

(d) A requirement that emission calculations for compliance purposes must include any noncompliant emissions in exce ss of any emissionslimitations, emissions associated with startup and shutdown, fugitive emissions, to the extent quantifiable, and emissions associated with upsets or malfunctions;

(e) A requirement that, once the PAL expires, the major stationary sourc e is subject to the requirements of § 208. 15 ;

(f) The calculation procedures that the major stationary source owner or operator shall use to convert the monitoring system data to monthly

emissions and annual emissions based on a twelve (12) month rolling total as required by § 208. 33 ;

(g) A requirement that the major source owner or operator monitor all emissions units in accordance with the provisions under § 208. 24 through

208. 32 ;

(h) A requirement to retain the records required under § 208. 33 and 208. 34 on site (s uch records may be retained in an electronic format ) ;

(i) A requirement to submit the reports required under § 208. 35 by the required deadlines; and

(k) Any other requirements that the Department deems necessary to implement and enforce the PAL.

208.11 The Department shall specify a PAL effective period of no more than five (5)

years

.

208.12 During the PAL effective period, the Department must reopen the PAL permit to:

( a ) Correct typographical or calculation errors made in setting the PA L or

reflect a more accurate determination of emissions used to establish the PAL;

( b ) Reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets;

( c ) Revise the PAL to reflect an in crease in the PAL as provided under §

208. 23 ;

( d ) Reduce the PAL if the Department determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PSD increment violation, or to an adverse impact on an air quality related value tha t has been identified for a Federal Class I area by a Federal Land Manager and for which information is available to the general public; and( e ) Reduce the PAL to reflect newly applicable requirements (for example, NSPS) with compliance dates after the P AL effective date

.

208.13 The Department shall reopen a c hapter 3 operating permit with a PAL for cause

consistent with § 303.6 and 303.7 of this title

.

208.14 Except for the permit reopening for the correction of typographical or calculation

errors that do not increase the PAL level, all other reopenings shall be carried out in accordance with the public participation requirements in § 208.8.

208. 15 Any PAL that is not renewed in accordance with the procedures in § 208. 16 shall

expire at the end of the PAL effective period, and the following requirements shall apply:

(a) Each emissions unit (or each group of emissions units) that existed under the PAL shall comply with an allowable emission limitation under a revised permit established according to the following procedures:

(1) Within the time frame specified for PAL renewals in § 208. 16 , the major stationary source shall submit a proposed allowable emission limitation for each emissions unit (or each group of emissions units, if such a distribution is more appropriate as decided by the Department) by distributing the PAL allowable emissions for the major stationary source among each of the emissions units that existed under the PAL;

(2) If the PAL had not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required

under § 208. 16 , such distribution shall be made as if the PAL had been adjusted; and

(3) The Department shall decide whether and how the PAL allowable

emissions will be distributed and is sue a revised permit incorporating allowable limits for each emissions unit, or each group of emission units, as the Depar tment determines is appropriate;

(b) Each emissions unit(s) shall comply with the allowable emission

limitation on a twelve ( 12 ) mon th rolling basis;

(c) T he Department may approve the use of monitoring systems (source testing, and emission factors) other than continuous emissions monitoring system ( CEMS )

, continuous emissions rate monitoring system ( CERMS )

, predictive emissions monit oring system ( PEMS ) or continuous parameter monitoring system ( CPMS ) to demonstrate compliance with the allowable

emission limitation ;(d) Until the Department issues the revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as required under sub paragraph (a)(3) of this subsection, the source shall continue to comply with a source

- wide, multi

- unit emissions cap equivalent to the level of the PAL emission limitation;

(e) Any physical change or change in th e method of operation at the major stationary source will be subject to major NSR requirements if such change meets the definition of major modification in § 199.1 of this title;

and

(f) The major stationary source owner or operator shall continue to comp ly with any s tate or f

ederal applicable requirements ( Lowest Achievable Emissions Rate ( LAER )

, Best Achievable Control Technology ( BACT )

, Reasonably Available Control Technology ( RACT )

, and New Source Performance Standards ( NSPS ) ) that may have applied eit her during the PAL effective period or prior to the PAL effective period except for those

emission limitations that were established pursuant to § 208.4, but were eliminated by the PAL in accordance with the provisions in § 208.3.

208. 16 The Department shall follow the procedures specified in § 208.8 in approving any

request to renew a PAL for a major stationary source, and shall provide both the proposed PAL level and a written rationale for the proposed PAL level to the public for review and comment. During such public review, any person may propose a PAL level for the source for consideration by the Department.

208. 17 A major stationary source owner or operator shall submit a timely application to

the Department to request renewal of a PAL. A timely application is one that is submitted at least six (6) months prior to, but not earlier than eighteen (18) months from, the date of permit expiration. This deadline for application submittal is to ensure that the permit will not expire before the permit i s renewed. If the owner or operator of a major stationary source submits a complete application to renew the PAL within this time period, then the PAL shall continue to be effective until the Department takes final action on the application for

renewal.

208. 18 The application to renew a PAL permit shall contain the following information:

(a) The information required in § 208.5;

(b) A proposed PAL level;

(c) The sum of the potential to emit of all emissions units under the PAL (with supporting documen tation);(d) Any other information the owner or operator wishes the Department to consider in determining the appropriate level for renewing the PAL; and

(e) Additional information as requested by the Department to make a determination on the renewal req uest.

208. 19 If the emissions level calculated in accordance with § 208.9 is equal to or greater

than eighty percent ( 80 %) of the PAL level, the Department may renew the PAL at the same level without considering the factors set forth in § 208. 20 . However

, in no case may any such adjustment fail to comply with § 208. 21

.

208. 20 The Department may set the PAL at a level that it deems to be more

representative of the source’s PAL baseline emissions determined from the date of the renewal application, or th at the Department determines to be more appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the source’s voluntary emissions reductions, or other factors as speci fically identified by the Department’s written rationale.

208. 21 Notwithstanding § 208. 19 and 208. 20 above:

(a) If the potential to emit of the major stationary source is less than the PAL, the Department shall adjust the PAL to a level no greater than the potential to emit of the source; and

(b) The Department shall not approve a renewed PAL level higher than the current PAL, unless the major stationary source has complied with the provisions of § 208. 23 (increasing a PAL).

208. 22 If the compliance d ate for a state or federal requirement that applies to the PAL

source occurs during the PAL effective period, and if the Department has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL permit renewal or the source’s T itle V permit renewal, whichever occurs

first.

208. 23 The Department may increase a PAL emission limitation following the provisions

below:

(a) The owner or operator of the major stationary source shall:

(1) Submit a complete application to request a n increase in the PAL limit for a PAL major modification . The following requirements shall apply:

(A) Such application shall identify the emissions unit(s) contributing to the increase in emissions so as to cause themajor stationary source's emissions to equal or exceed its PAL;

(B) As part of this application, the major stationary source owner or operator shall demonstrate that the sum of the PAL baseline emissions of the small emissions units, plus the sum of the PAL baseline emissions of the signif icant and major emissions units assuming application of LAER, plus the sum of the allowable emissions of the new or modified emissions unit(s) exceeds the PAL; and

(C) The level of control that would result from the application of LAER on each significant or major emissions unit shall be determined by conducting a new LAER analysis at the time the application is submitted, unless the emissions unit is currently obligated to comply with a LAER requirement that was established within the preceding five (5) y ears. In such a case, the assumed control level for that emissions unit shall be equal to level of LAER with which that emissions unit must currently comply;

(2) Obtain a major NSR permit for all emissions unit(s) identified in §

208. 23 (a)(1)(A) regard less of the magnitude of the emissions increase resulting from them (that is, no significance levels apply);

and

(3) The emissions unit(s) in subparagraph (2) shall comply with any emissions requirements resulting from the major NSR process (for example, LAER or BACT), even though they have also become subject to the PAL or continue to be subject to the PAL;

(b) The PAL permit shall require that the increased PAL level be effective on the day any emissions unit that is part of the PAL major modification

b ecomes operational and begins to emit the PAL pollutant;

(c) The Department shall calculate the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the PAL baseline emissions of the significant and major emissions units, plus the sum of the PAL baseline emissions of the small emissions units; and

(d) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requirements of § 208.8.

208. 24 Each PAL permit must cont ain enforceable requirements for the monitoring

system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per unit of time;(a) Any monitoring system authorized for use in the PAL permit must be

based on sound science an d meet generally acceptable scientific procedures for data quality and manipulation;

(b) The information generated by such system must meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL permit;

(c) The PAL monit oring system must employ one (1) or more of the four (4) general monitoring approaches meeting the minimum requirements set

forth in § 208. 2 5 through 208. 3 2 and must be approved by the Department;

(d) Notwithstanding the paragraph above, the owner or oper ator may employ an alternative monitoring approach that meets the requirements of this section if approved by the Department; and

(e) Failure to use a monitoring system that meets the requirements of this

section renders the PAL invalid.

208. 25 The foll owing are acceptable general monitoring approaches when conducted in

accordance with the minimum requirements in § 208. 26 through 208. 32 :

(a) Mass balance calculations for activities using coatings or solvents and

sulfur dioxide calculations for fuel burn ing sources;

(b) CEMS;

(c) CPMS or PEMS; or

(d) Emission factors.

208. 26 An owner or operator using mass balance calculations to monitor PAL pollutant

e missions from activities using coating or solvents shall meet the following requirements:

(a) Prov ide a demonstrated means of validating the published content of the PAL pollutant that is contained in or created by all materials used in or at the emissions unit;

(b) Assume that the emissions unit emits all of the PAL pollutant that is

contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process; and(c) Where the vendor of a material or fuel, which is used in or at the emissions unit, publishes a range of pollutant content from such material, the owner or operator must use the highest value of the range to calculate the PAL pollutant emissions unless the Department determines there is

site

- specific data or a site

- specific monitoring program to support another

content within the range.

208. 27 An owner or operator using CEMS to monitor PAL pollutant emissions shall meet

the following requirements:

(a) CEMS must comply with applicable Performance Specifications found in

40 C

. F

. R

. part 60, appendix B; and

(b) CEMS must sampl e, analyze

, and record data at least every fifteen (15) minutes while the emissions unit is operating.

208. 28 An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions

shall meet the following requirements:

(a) The CPMS or the PEMS must be based on current site

- specific data demonstrating a correlation between the monitored parameter(s) and the PAL pollutant emissions across the range of operation s of the emissions unit; and

(b) Each CPMS or PEMS must sample, analyze, and record data at least every fifteen (15) minutes, or at another less frequent interval that the Department approves , while the emissions unit is operating.

208. 29 An owner or operator using emission factors to monitor PAL pollutant emissions

shall meet the following req uirements:

(a) All emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the factors’ development;

(b) The emissions unit shall operate within the designated range of use for the emission factor, if applicable; and

(c) If technically practicable, the owner or operator of a significant emissions unit that relies on an emission factor to calculate PAL pollutant emissions shall conduct validation testing to determine a site

- specific emission factor within six (6) months of PAL permit issuance unless the Department determines that testing is not required.

208. 30 A source owner or operator must record and report maximum potential to emit

without considering enforceable emission limitations or operatio nal restrictions for an emissions unit during any period of time that there is no monitoring data,unless another method for determining emissions during such periods is specified in the PAL permit.

208. 31 Notwithstanding the requirements in § 208. 26 thro ugh 208. 30 , where an owner or

operator of an emissions unit cannot demonstrate a correlation between the monitored parameter(s) and the PAL pollutant emissions rate at all operating points of the emissions unit, the Department shall, at the time of permit issuance:

(a) Establish default value(s) for determining compliance with the PAL based on the highest potential emissions reasonably estimated at such operating point(s); or

(b) Determine that operation of the emissions unit during operating conditions

w hen there is no correlation between monitored parameter(s) and the PAL pollutant emissions is a violation of the PAL.

208. 32 All data used to establish the PAL pollutant must be revalidated through

performance testing or other scientifically valid means a pproved by the Department. Such testing must occur at least once every five (5) years after

issuance of the PAL.

208. 33 The PAL permit shall require an owner or operator to retain a copy of all records

necessary to determine compliance with any requireme nt of this section and of the PAL, including a determination of each emissions unit’s twelve ( 12 ) month rolling total emissions, for five (5) years from the date of such record.

208. 34 The PAL permit shall require an owner or operator to retain a copy of the

following records for the duration of the PAL effective period plus five (5) years:

(a) A copy of the PAL permit application and any applications for revisions to the PAL; and

(b) Each annual certification of compliance pursuant to c hapter 3 of this title and the data relied on in certifying the compliance.

208.3 5 The owner or operator shall submit semi

- annual monitoring reports and prompt

deviation reports to the Department in accordance with the applicable Title V operating permit program in c hapt er 3 of this title. The reports shall meet the following requirements:

(a) The semiannual report shall be submitted to the Department within thirty (30) days of the end of each reporting period. This report shall contain the following information:

(1) The identification of owner and operator and the permit number;(2) Total annual emissions (tons per year) based on a twelve ( 12 ) month rolling total for each month in the reporting period recorded
pursuant to § 208. 33 and 208. 34 ;

(3) All data relied upon, including, but not limited to, any Quality Assurance or Quality Control data, in calculating the monthly and annual PAL pollutant emissions;

(4) A list of any emissions units modified or added to the major stationary source during the preceding six ( 6 ) month period;

(5) The number, duration, and cause of any deviations or monitoring malfunctions (other than the time associated with zero (0) and span checks), and any corrective action taken;

(6) A notification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the monitoring system will be fully operational or replaced with another monitoring system, and whether the emissions unit monitored by the monitoring system continued to operate, and the calculation of the emissions of the pollutant or the number determined by method included in the permit, as provided by § 208. 30 ; and

(7) A signed statement by the responsible official (as defined by the applicable Tit le V operating permit program in c hapter 3 of this title) certifying the truth, accuracy, and completeness of the information provided in the report;

(b) The major stationary source owner or operator shall promptly submit reports of any deviations or ex ceedances of the PAL requirements, including periods w here no monitoring is available;

(c) The deviation reports required under paragraph (b) shall be submitted in

accordance with § 302.1(c)(3)(C) of this title and shall contain the following informatio n:

(1) The identification of owner and operator and the permit number;

(2) The PAL requirement that experienced the deviation or that was exceeded;

(3) Emissions resulting from the deviation or the exceedance; and

(4) A signed statement by the respons ible official (as defined by the applicable Title V operating permit program in c hapter 3 of thistitle) certifying the truth, accuracy, and completeness of the information provided in the report; and

( d ) The owner or operator shall submit to the Departme nt the results of any revalidation test or method within three (3) months after completion of

such test or method.

208. 36 If any provision of this section, or the application of such provision to any person

of circumstance, is held invalid, the remainder of this section, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

CHAPTER 2 (GENERAL AND NON

- ATTAINMENT AREA PERMITS) of TITLE 20 (ENVIRONMENT) of the DCMR is amended by adding a new s ection 209 to read as follows :

209 PERMIT REQUIREMENTS FOR NON

- MAJOR STATIONARY

SOURCES ( MINOR NEW SOURCE REV IEW )

209.1 Effective January 1, 201 4 , except as specified in § 209.2, the requirements of this

section are applicable to any source required to obtain a permit under § 200 to construct a new stationary source, modify an existing stationary source, or install or modify an air pollution control device on a stationary source that results in collateral emission increases, for a project that:

(a) Is not required to comply with the requirements of either § 204 or § 208;

and

(b) Results in an increase of the potential to emit rate equal to or greater than

five tons per year (5 Tpy ) from an individual unit of any of the followin g:

(1) Total volatile organic compounds (VOCs);

(2) Nitrogen oxides (NOx);

(3) Sulfur dioxide (SO 2 );

(4) Particulate matter less than ten ( 10 ) microns in aerodynamic diameter (PM 10 );

(5) Fine particulate matter less than two and a half ( 2.5 ) microns i n aerodynamic diameter (PM 2.5 ); and

(6) An aggregate of any of the hazardous air pollutants (HAPs) listed in §112(b) of the Clean Air Act.209.2 Any source applying for a permit under § 200 not meeting the applicability requirements specified in § 209.1 shall submit, with their application, sufficient documentation to show that the proposed source does not meet those applicability requirements.

209.3 Any source meeting the applicability requirements specified in § 209.1 shall,

relative to each pollutant for which it meets the applicability requirement, be controlled by operating emission control technologies or pollution prevention methodologies that limit emissions to the atmosphere meeting one (1) or more of the following requirements:

(a) The lowest achievable emission rate (LAER);

(b) The best available control technology (BACT);

(c) For an air contaminant that is a HAP, the requirements of a maximum achievable control technology (MACT) or other standard resulting from a

residual risk determination promulgated under 40 C

. F

. R

. part 63 or, where applicable, a more stringent standard adopted under this title;

(d) An emission control technology or pollution prevention methodology approved in advance by the Department for a similar source pursuant to

th is section; or

(e) An emission control technology or pollution prevention methodology approved by the Department, on a case

- by

- case basis, pursuant to § 209.4.

209.4 A case

- by

- case determination pursuant to § 209.3(e) shall be performed by

completing the following steps:

(a) Identify and evaluate a list of air pollution technologies and pollution prevention methodologies that may be applied to the source including, but not limited to, technologies and methodologies used for similar sources,

innovative co ntrol technologies, modification of the process or process equipment, other pollution prevention measures, and combinations of the above measures;

(b) Arrange the measures on the list in descending order of air pollution control effectiveness; and

(c) Ch ose and propose the top

- rated measure on the list not eliminated from

consideration as a result of one (1) of the following demonstrations:

(1) Where a demonstration can be and is made that this measure is technically infeasible, based on physical, chemic al, or engineeringprinciples, and/or technical difficulties that would prevent the successful application of the measure;

(2) Where a demonstration can be and is made that this measure has adverse environmental effects (for example effects on water or

la nd, HAP emissions, or increased environmental hazards) when compared with its air contaminant emission reduction benefits, which would make use of this measure unreasonable;

(3) Where a demonstration can be and is made that this measure

should be eliminat ed from consideration based on its calculated economic impacts using the techniques in the latest edition of EPA’s Control Cost Manual, where the total and incremental costs of the top measure are greater than the total and incremental costs of the propose d measure(s) and that the extra costs, when compared with the air contaminant emission reduction benefits resulting from the top measure would make use of the top measure unreasonable; or

(4) Where a demonstration can be and is made that this measure

shou ld be eliminated from consideration based on its energy impacts such as establishment that it relies on fuels that are not reliably available; or that the energy consumed by the top measure is greater than that consumed by the proposed measure(s), and that the extra energy used, when compared with the air contaminant emission reduction benefits resulting from the top measure would

make use of that measure unreasonable.

209.5 Any application submitted pursuant to the requirements of this section shall

conta in the following:

(a) The control technology or pollution prevention methodology proposed to be installed and operated to meet the requirements of § 209.3;

(b) The list, if this method was chosen, generated pursuant to § 209.4;

(c) Any demonstration(s) performed pursuant to § 209.4(c); and

(d) Any additional information that the Department requests in order to complete an evaluation of the proposal.

CHAPTER 2 (GENERAL AND NON

- ATTAINMENT AIR PERMITS) of TITLE 20 (ENVIRONMENT) of the DCMR is amended by a dding a new s ection 210 to read as follows :210 NOTICE AND COMMENT PRIOR TO PERMIT ISSUANCE

210.1 Before issuing a permit under this chapter, the Department shall prepare a draft

permit and provide adequate notice to ensure that the affected community a nd the general public have reasonable access to the application and draft permit

information.

210.2 With the exception of any information that the Department deems is confidential

,

the Department shall make available for public inspection:

(a) The appl ication for a permit and any additional information that the Department requests ;

(b) The Department’s analysis of the application, including, where required or deemed appropriate, an ambient air quality analysis, a regulatory review,

and a control techno logy review; and

(c) The draft permit or justification for denial.

210.3 The Department shall publish a notice regarding the draft permit or denial in the

D.C. Register and shall make the information in § 210.2 available for public inspection at the De partment’s office. In addition, the Department shall use at

least one (1) of the following procedures to ensure appropriate means of

notification:

(a) Mail or e

- mail a copy of the notice to persons on a mailing list that the Department develops consisti ng of those persons who have requested to be placed on such a mailing list;

(b) Post the notice on the Department’s website;

(c) Publish the notice in a newspaper of general circulation in the area affected by the source;

(d) Provide copies of the noti ce for posting at one (1) or more locations in the area affected by the source, such as p ost o ffices, libraries, community centers, or other gathering places in the community; or

(e) Employ other means of notification as appropriate.

210.4 The notice sha ll include the following information at a minimum:

(a) Identifying information of the source, including the name and address of the facility

, and the name and telephone number of the facility manager or other contact person ;(b) For preconstruction permi ts (including source category permits), the regulated NSR pollutants to be emitted, the affected emissions units, and the emission limitations for each affected emissions unit;

(c) For preconstruction permits, the emissions change involved in the permit

a ction;

( d ) The name, address, and telephone number of a contact person in the Department from whom additional information may be obtained;

(e) Locations and times of availability of the information in § 210.2; and

( f ) A statement that any person may sub mit written comments, a written request for a public hearing, or both, on the draft permit action within thirty ( 30 ) days from the date of the public notice.

210.5 By mail or e

- mail, a copy of the notice shall be sent to the applicant, the EPA

,

through R egion III, and to all Affected States (as defined in 20 DCMR § 399) for the following permits:

(a) All NSR permits issued pursuant to § 204; and

(b) All source category permits, when initially issued

.

SECTION 299 (DEFINITIONS AND ABBREVIATIONS), SUBSEC TION 299.1, of CHAPTER 2 (GENERAL AND NON

- ATTAINMENT AREA PERMITS) of TITLE 20 (ENVIRONMENT) of the DCMR is amended as follows:

The lead

- in language in § 299.1 is amended to read as follows:

299.1 The meanings ascribed to the definitions and abbreviation s appearing in § 199.1

and 199.2 of this title shall apply to any terms in this chapter not defined below. However, the following definitions shall apply to the terms as used in this chapter:

By adding the definition for “Emissions unit” to read as foll ows :

Emissions unit

– means any part of a stationary source that emits or would have the potential to emit any regulated NSR pollutant following paragraphs (a) and (b) below:

(a) A new emissions unit is any emissions unit that is (or will be) newly const ructed and that has existed for less than two (2) years from the date such emissions unit first operated. Any emissions unit that is constructed or installed for the purpose of replacing an existing unit, or any emissions unit that is relocated from anothe r stationary source for the purpose of replacing an existing unit, shall be considered a new emissions unit at the time of replacement and until two (2) years from the date such new unit commenced operation ; and(b) An existing emissions unit is any emiss ions unit that is not a new emissions unit.

By adding the definition for “Major emissions unit” to read as follows :

Major emissions unit

– any emissions unit that emits or has the potential to emit the PAL pollutant in an amount that is equal to or great er than the major source threshold for the PAL pollutant as defined for a major stationary source in § 199.1 of this title

.

By amending the definition of “Major modification” to read as follows :

Major modification

– any physical change in or change in th e method of operation of a major stationary source that would result in a significant emission increase and a significant net emissions increase of a regulated NSR pollutant from the major stationary source :

(a) Any emissions increase that is significant for volatile organic compounds or nitrogen oxides shall be considered significant for ozone;

(b) A physical change or change in the method of operation shall not include:

(1) Routine maintenance, repair

, and replacement. In determining whether an acti vity at a facility constitutes routine maintenance, repair

, and replacement, the owner or operator shall consider the nature, extent, purpose, frequency, and cost of the work to be performed. Routine maintenance, repair

, and replacement activities

are nar row in scope, do not result in increased capacity, occur with regular frequency, and involve limited expense;

(2) Use of an alternative fuel raw material by reason of an order under §§ 2 (a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 ( 15 U.S.C. § § 791

, et seq

. (20 06 ) ) (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the Federal Power Act ( 16 U.S.C. § § 791a

, et

seq

. (20 06 ) ) ;

(3) Use of an alternative fuel by reason of an order or rul e under § 125 of the Clean

Air Act;

(4) Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste;

(5) Use of an alternative fuel or raw material by a stationary source which;

(A) The so urce was capable of accommodating before December 21, 1976, unless such change would be prohibited under any federally enforceable permit condition which was established after December 12, 1976 pursuant

to 40 C

. F

. R

. § 52.21 or under regulations approved pu rsuant to 40 C

. F

. R

. part 51, subpart I or 40 C

. F

. R

. § 51.166 ; or(B) The source is approved to use under any permit issued pursuant to §§ 204

or 208 ;

(6) A change that only consists of an increase in the hours of operation or in the production rate, un less such change is prohibited under any federally enforceable permit condition which was established after December 21, 1976 pursuant to 40

C

. F

. R

. § 52.21 or regulations approved pursuant to 40 C

. F

. R

. part 51

, subpart I or

40 C

. F

. R

. § 51.166 ; or

(7) Any change in ownership at a stationary source; and

(c) This definition shall not apply with respect to a particular pollutant when the major stationary source is complying with the requirements under § 208 for a PAL for that pollutant. Instead, the definit ion for PAL major modification in § 299.1 shall apply.

By adding the definition of “Net emissions increase” to read as follows :

Net emissions increase

– is as follows:

(a) With respect to any regulated NSR pollutant emitted by a major stationary source , the amount by which the sum of subparagraphs (1) and (2) below exceeds zero (0) :

(1) The emissions increase from the project

, determined according to the following:

(A) The emissions increase from the project is determined by summing the potential to emit from each new emissions unit and the difference between the potential to emit for each existing unit affected by the project after the change and the actual emissions prior to the change ; and

(B) An emissions unit is considered affected by the proje ct if an emissions increase from the unit would occur as a result of the project, regardless of whether a physical change or change in the method of operation will occur at the particular emissions unit; and

(2) Any other increases and decreases in emissi ons at the major stationary source that are contemporaneous with the particular change and are otherwise creditable;

(b) An increase or decrease in emissions is contemporaneous with the increase from the project only if it occurs during the period of fi ve (5) consecutive calendar years before and including the date of submittal of the application and continuing until operation

commences;

(c) An increase or decrease in emissions is creditable only if the Department or other reviewing authority has not relied on it in issuing a permit for the source under thissection, which permit is in effect when the increase in emissions from the particular

change occurs;

(d) An increase in emissions is creditable to the extent that the new level of allowable

emis sions exceeds the old level of actual emissions for the contemporaneous change;

(e) An increase that results from a physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particu lar pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed one hundred eighty (180) days;

(f) A decrease in emissions is credible , to the extent that:

(1) The old level of act ual emissions exceeds the new level of allowable emissions;

(2) The new level of allowable emissions is enforceable as a practical matter at and after the time that actual construction on the particular change begins;

(3) The Department has not relied on it in issuing any permit under regulations approved pursuant to 40 C

. F

. R

. part 51, subpart I or the State has not relied on it in demonstrating attainment or reasonable further progress; and

(4) The decrease in emissions has approximately the same qualit ative significance for public health and welfare as that attributed to the increase from the particular change ; and

(g) Actual emissions for calculating increases and decreases under this paragraph shall be

determined as defined in § 199.1 of this title.

By adding the definition for “ Plantwide applicability limit ( PAL ) ” to read as follows :

Plantwide applicability limit ( PAL )

– an emission limitation, expressed in tons per year, for a pollutant at a major stationary source that is federally enforceable an d enforceable as a practical

matter established source

- wide in accordance with § 208.

By adding the definition for “PAL baseline emissions” to read as follows :

PAL baseline emissions

– the rate of emissions, in tons per year, of a single regulated NSR

po llutant:

(a) For any emissions unit that was an existing emissions unit during the PAL baseline period, PAL baseline emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during the PAL baseline period;

(1) The average rate shall include fugitive emissions to the extent quantifiable and any authorized emissions associated with startup and shutdown;(2) The average rate shall not include excess emissions or emissions associated with upsets or malfunctions;

(3) The average rate shall be adjusted downward to exclude any non

- compliant emissions that occurred while the source was operating above any emission limitation that was legally enforceable during the PAL baseline period;

(4) The average rate shall be a djusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the PAL baseline p eriod; and

(5) The average rate shall not be based in any period for which there is inadequate information either for determining emissions, in tons per year, or for adjustments required by sub paragraphs (1) through (4) above; and

(b) For any existing em issions unit that was not an existing emissions unit during the PAL baseline period but commenced operation during or after the selected PAL baseline period, the PAL baseline emissions shall equal the allowable emissions or the potential to emit, whichever is lower;

(c) For a new emissions unit, PAL baseline emissions shall equal zero (0) ; and

(d) PAL baseline emissions shall be determined by measurement, calculations, estimations,

or recordkeeping in the order of the following preferences:

(1) Continuo us Emission Monitoring System (CEM S ) data integrated to annual emissions using flow meters and conversion factors;

(2) Predictive Emissions Monitoring System (PEMS);

(3) Other Measurements and Calculations:

(A) Stack emissions:

(i) Determine hourly em issions by stack emission testing;

(ii) Determine annual operating hours using hour meter records ; and

(iii) Calculate annual emissions using hourly emissions and annual operating hours ; or

(iv) Determine emissions per heat input by stack emission test ing;(v) Determine amount of fuel combusted in a year using fuel flow meter record and calculate annual heat input; and

(vi) Calculate annual emissions using emissions per heat input and annual heat input;

(B) Mass balance:

(i) Determine the amount o f materials used through measurements in the process;

(ii) Calculate emissions per mass of material used using mass balance techniques;

(iii) Determine amount of material used in a year; and

(iv) Calculate annual emissions using emissions per mass of m aterial and amount of material used in a year;

(C) Emission Factors:

(i) Using generally recognized and accepted emission factors such as

AP

- 42, determine hourly emissions;

(ii) Determine annual operating hours using hour meter records; and

(iii) Calc ulate annual emissions using hourly emissions and annual operating hours; or

(iv) Using generally recognized and accepted emission factors such as

AP

- 42, determine emissions per heat input unit;

(v) Determine amount of fuel combusted in a year using fuel flow meter record and calculate annual heat input; and

(vi) Calculate annual emissions using emissions per heat input and annual heat input; or

(4) Instances where measurements of operating hours or fuel combusted (hour meter or fuel flow meter) are no t available, annual emissions can be calculated using available records (such as production records, fuel consumption records, fuel purchase receipts, laboratory reports on fuel analysis, and third party records such as electric bills);

(A) Determine hour ly emissions using stack emission tests, mass balance or emission factors;(B) Determine annual hours of operation using production records; and

(C) Calculate annual emissions using hourly emissions and annual hours of operation; or

(D) Determine emissi ons per heat input unit using stack emission tests, mass balance or emission factors;

(E) Determine amount of fuel combusted in a year records and calculate annual heat input; and

(F) Calculate annual emissions using emissions per heat input and annual h eat input.

By adding the definition for “PAL baseline period” to read as follows :

PAL baseline period

– the two (2) consecutive calendar years immediately prior to the year the application for a PAL is submitted. The Department may allow the use of a di fferent

consecutive twenty

- four ( 24 ) month period within the last five (5) years upon a determination that the operations during that period would be more representative of normal source operations.

By adding the definition for “PAL effective date” to rea d as follows :

PAL effective date

– generally means the date of issuance of the PAL permit. However, the PAL effective date for an increased PAL is the date any emissions unit that is part of the PAL major modification becomes operational and begins to em it the PAL pollutant. The PAL limit that was in effect prior to the change shall remain in effect until the new PAL is effective.

By adding the definition for “PAL major modification” to read as follows :

PAL major modification

– notwithstanding the defi nitions for major modification and net

emissions increase in § 199.1, any physical change in or change in the method of operation of the PAL source that causes it to emit the PAL pollutant at a level greater than the PAL.

By adding the definition for “PAL pollutant” to read as follows :

PAL pollutant

– the pollutant for which a PAL is established at a major stationary source.

By adding the definition for “ Predictive emissions monitoring system (PEMS) ” as follows :

Predictive emissions monitoring system (P EMS)

– all of the equipment necessary to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, O 2 or CO 2 concentrations), and calc ulate and record the mass emissions rate (for example, lb/hr) on a

continuous basis.By adding a definition for “Regulated NSR ( new source review ) pollutant” as follows :

Regulated NSR ( new source review ) pollutant

– i s the following:

(a) Nitrogen oxides or any volatile organic compounds;

(b) Any pollutant for which a national ambient air quality standard has been promulgated;

(c) Any pollutant that is a constituent or precursor of a general pollutant listed under paragraphs (a) or (b) above, provided that a constituent or precursor pollutant may only be regulated under NSR as part of regu lation of the general pollutant;

(d) Precursors identified by the Administrator for purposes of NSR are the following:

( 1 ) Volatile organic compounds and nitrogen o xides are precursors to ozone in all

ozone nonattainment areas ;

( 2 ) S ulfur dioxide i s a precursor to PM 2.5 i n all PM 2.5 nonattainment areas;

( 3 ) Nitrogen oxides are presumed to be precursors to PM 2.5 in all PM 2.5 nonattainment areas, unless the Departm ent demonstrates to the Administrator’ s satisf action or

EPA demonstrates that em issions of nitrogen oxides from sources in a spec ific area are not a significant contributor to that area’ s ambient PM 2.5 concentrations;

and

( 4 ) Volatile organic compounds an d ammonia ar e presumed not to be precursors to
PM 2.5 in any PM 2.5 nonattainment area , unless the Department demonstrates to the
Administrator’ s satisfaction or EPA demonstrates that emission s of volatile organic compounds or ammonia from sources in a speci fic area are a significant

contributor to that area’s ambient PM 2.5 concentrations; and

( e ) PM 2.5 emissions and PM 10 emissions shall include gaseous emissions from a so urce or activity which condense to form particulate matter at ambient temperatures, de termined in accordance with the following:

(1) S uch condensable partic ulate matter shall be accounted for in applicability

determinations and in establishing emissions limitations for PM 2.5 and PM 10 in

nonattainment major NSR permits; and

(2) Compliance with emissions limitations for PM 2.5 and PM 10 shall not be b ased on condensable particulate matter unless required by the terms and conditions of the permit or the applicable implementation plan. Ap plicability determinations made prior to this date without acc ounting for condensable particulate matter shall no t
be considered in violation of this section unless the applicable implementation plan required condensable particulate matter to be included.By adding the definition for “Significant” as follows :

Signi ficant

– in reference to a significant emissions increase, a significant net emissions

increase

, or the potential of a stationary source or emissions unit to emit a significant amount of a regulated NSR pollutant, a rate of emissions that would equal or ex ceed any of the following:

(a) Carbon monoxide: one hundred tons per year ( 100 T py );

(b) Ozone

- Nitrogen oxides or VOCs: twenty

- five ( 25 ) Tpy ;

(c) Sulfur dioxide: forty ( 40 ) Tpy ;

(d) Lead: six

- tenths ( 0.6 ) Tpy ;

(e) PM 10 : fifteen ( 15 ) Tpy ;

(f) PM 2.5 : ten ( 10 ) Tpy ;

(g) For the purposes of applying the requirements of this section, where applicable, to a major stationary source of a PM 10 precursor located in a PM 10 nonattainment area, the significant emission rate for a PM 10 precursor is forty ( 40 ) T py or more of that precursor;

(h) For the purposes of applying the requirements of this section, the significant emission

rate for a PM 2.5 precursor is forty ( 40 ) Tpy of sulfur dioxide emissions and forty ( 40 ) Tpy of nitrogen oxide emissions ;

(i) Notwit hstanding the significant emissions rate for carbon monoxide stated above, significant for carbon monoxide in a serious nonattainment area is fifty ( 50 ) Tpy

, provided the Department has determined that the applicable stationary source contributes significa ntly to carbon monoxide levels in that area;

(j) Notwithstanding the significant emissions rates for ozone stated above, significant for volatile organic compounds in an extreme nonattainment area for ozone is any amount above zero; and

(k) Notwithstand ing the above paragraphs , any emissions rate or any net emissions increase associated with a major stationary source or major modification, which would construct within six and twenty

- one hundredths miles (6.21 m. )

, or ten kilometers (10 km )

, of any

Class I area, and have an impact on the area equal to or greater than one microgram per

cubic meter (1 μ g/m3 ) over a twenty

- four hour (24 hr) average.

By adding the definition for “Significant emissions increase ” to read as follows :

Significant emissions incre ase

– for a regulated NSR pollutant, an increase in emissions that is significant (as defined in this section) for that pollutant

.By adding the definition for “Significant emissions unit” to read as follows :

Significant emissions unit

– an emissions uni t that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level (as defined under “significant” in this subsection or in the Clean Air Act, whichever is lower) for that PAL pollutant.

By adding the definition for “Small emissions unit” to read as follows :

Small emissions unit

– an emissions unit that emits or has the potential to emit the PAL pollutant in an amount less than the significant level (as defined under “significant” in this

subsecti on or in the Clean Air Act, whichever is lower) for that PAL pollutant.

By adding the definition for “Source category permit” to read as follows :

Source category permit

– a preconstruction or operating permit issued by the Department that may be applied to a number of similar emissions units or sources. A source category permit may be written to address a single emissions unit, a group of the same type of emissions units, or an

entire minor source.OF THE GOVERNMENT OF THE DISTRICT OF COLUMBIA

District Department of the Environment

Air Quality Division

MEMORANDUM 

### ';.\' ·:(' ·k**ii~Hni¥11**



### /c'1

<' TO: Christophe A. G. Tulml"·"'· 11,

### "~;;' •..

### d.'~ "
Director, District Departm\nt of the Environment

(,.) 

### \ -../ FROM: Cecily Beall 

### CJ)J;,":J\;zi),:,···

Associate Director, AQD, DDOE

DATE: March 20, 2012

SUBJECT: Hearing Officer's Certification for the Public Hearing on Proposed New

Source Review Regulations and Proposed Amendment to State Implementation Plan

This is to certify that a public hearing was held at approximately 5:30p.m. on March 19,

2012 to give the public the opportunity to comment on the proposed revisions to the new

source review (NSR) regulations and the proposed revision of the District's State Implementation Plan. Notice of the public hearing was posted on DDOE's website and published in the D.C Register on February 17,2012 (59 DCR 001493) (see attached notices).

The District was represented by Cecily Beall of the District Department of the

Environment (DDOE), Air Quality Division (AQD); Stephen Ours, Chief of the Permitting and Enforcement Branch, DDOE/AQD; and Lauren Maxwell, Assistant Attorney General, Office of the General Counsel (OGC), DDOE. There were five attendees, but no one testified (see attached sign-in sheets). AQD had received four sets
of written comments prior to the public hearing.

During the public hearing, attendees from the General Services Administration (GSA)

asked the following questions, to which AQD and OGC staff provided the following

responses:

• What is the District's ozone nonattainment classification? Mr. Ours responded

that the District is a moderate nonattainment area except for purposes of some regulations such as NSR, under which the District still uses the severe nonattainment area applicability thresholds to prevent backsliding under the

federal Clean Air Act.

1200 First St. NE, 5th Floor, Washington, DC 20002 

### I Tel: (202) 535-2650 

### I web:ddoe.dc.gove Does the U.S. Environmental Protection Agency (EPA) have to review and

approve the NSR regulations? Ms. Beall responded that DDOE/AQD worked

with EPA throughout the 27 drafts 'of the regulations to ensure that EPA's

concerns were addressed. In addition, EPA could comment during the public

comment period if they had any remaining concerns. Ms. Beall also explained

that once finalized, the regulation will be submitted to EPA as an amendment to the District's State Implementation Plan (SIP).

• Has EPA already approved the District's state implementation plan (SIP)? Mr.

Ours and Ms. Beall responded that the SIP is an evolving document that can be

found at 40 CFR 52 Subpart J. As DDOE/ AQD develops and revises regulations

with EPA's input, the final regulations are submitted as SIP revisions.

• Will greenhouse gases (GHG) be included in the NSR regulations? Ms. Maxwell responded that GHGs will be considered at a future time. Mr. Ours and Ms.

Beall further explained that GHGs would be considered in light of the prevention

of significant deterioration requirements and the federal tailoring rule because

there is no standard for GHGs and therefore there cannot be a nonattainment designation and nonattainment NSR would not apply.

o What is the District's attainment status of the other criteria pollutants? Ms. Beall
reviewed the status for PM2.5, CO, N02, S02, and lead.

Mr. Ours informed the attendees that, once the NSR regulations are final, development of

a synthetic minor program and permit fees is a high priority for DDOE/AQD. He also

noted that the proposed NSR regulations included two provisions that affect minor

sources: (1) the ability to develop source category permits and (2) the extension of the period of minor source permits from three years to five years.Notice of Proposed Rulemaking on Air Quality Issues I ddoe



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Proposed Rulemaking on New Source Review and Proposed Revision of the District's State Implementation Plan (SIP)

Notice is hereby given that a public hearing will be held on Monday, March 19, 2012 at 5:30p.m. in Room 512 at 1200 First Street, N.E., 5th Floor, in Washington, D.C.,

20002. This hearing provides interested parties an opportunity to comment on the District's proposed rulemaking on New Source Review (NSR) and proposed State

Implementation Plan (SIP) revision. Once finalized, 20 DCMR §§ 199,200,204, 206, 208, 210, and 299 will be submitted to the United States Environmental Protection

Agency to revise the SIP in order to meet the requirements of section 110 of the federal Clean Air Act (42 U.S. C.§ 7410) in accordance with 40 C.F R. part 51.

The District Department of the Environment (DDOE) is proposing amendments to the New Source Review (NSR) permitting program, which applies to new and modified

major emission sources that have the ability to significantly impact air quality in the District and downwind states. This rulemaking also proposes to add source category

permits (commonly referred to as "general permits" in other JUrisdictions), which will allow DDOE to issue a single permit for groups of similar sources. Finally, this

rulemaking pcoposes to add requirements for new source review of minor sources. Once finalized, DDOE will submit all of the amendments as a SIP revision, except

those pertaining to minor new source review (20 DCMR § 209).

The proposed regulation is also available for public review during normal business hours at the offices of the District Department of the Environment (DDOE), 1200 First

Street, NE, Washington, D.C. 20002. Interested parties wishing to testify at this hearing must submit in writing their names, addresses, telephone numbers, and

affiliation, if any, to Mr. William Bolden at DDOE by 4:00p.m. on Monday, March 19,2012. Interested parties may also submit written comments to Ms. Cecily Beall,

DDOE Air Quality Division, at 1200 First Street, NE, 5th Floor, Washington, DC 20002, or submit comments to her by email at cecily.beall@dc.gov. No written or email

comments will be accepted after March 19, 2012. For more information or to find out if the public hearing has been canceled, call Mr. Stephen Ours at 202-535-1747 or

email him at stephen.ours@dc.gov..New Source Review- Proposed Rulemaking I ddoe



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DOOE is seeking comments on proposed amendments to the New Source Review (NSR) permitting program, which applies to new and modified major emission sources

that have the ability to significantly impact air quality in the District and downwind states. The rulemaking also proposes to add source category permits (commonly

referred to as "general permits" in other jurisdictions). which will allow DDOE to issue a single permit for groups of similar sources. Finally, the rulemaking proposes to

add requirements for new source review of minor sources

.

.A;I.lchment(s):

NSR Proposed Rule making

- Public Hearing Notice 18.64 KB

NSR Notice of Proposed Rulemaking 123.98 KB

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__**[:~1** Distrid of Columbia MAYOR DC GUIDE RESIDENTS BUSINESS VISITORS

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PUBLIC HEARING ON PROPOSED RULEMAKING ON NEW SOURCE REVIEW AND

PROPOSED REVISION OF THE DISTRICT'S STATE IMPLEMENTATION PLAN (SIP)

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.. . 2 11 1 / 201 3DISTRICT DEPARTMENT OF THE ENVIRONMENT

NOTICE OF PUBLIC HEARING ON AIR QUALITY ISSUES

Proposed Rulemaking on New Source Review and Proposed Revision of the District’s State Implementation Plan (SIP)

Notice is hereby given that a public hearing will be held on Monday, March 19

, 2012 at 5:30 p.m. in Room 5 12 at 1200 First Street, N.E., 5th Floor, in Washington, D.C., 20002. This hearing provides interested parties an opportunity to comment on the District’s proposed rulemaking on New Source Review (NSR ) and proposed State Implementation Plan (SIP) revision. Once finalized, 20 DCMR §§ 199, 200, 204, 206, 208, 210 , and 299 will be submitted to the United States Environmental Protection Agency to revise the SIP in order to meet the requirements of

section 110 of the federal Clean Air Act (42 U.S.C. § 7410) in accordance with 40 C.F.R. p art 51.

The District Department of the Environment (DDOE) is proposing amendments to the New Source Review (NSR) permitting program , which applies to new and modified major emission sources that have the ability to significantly impact air quality in the District and downwind states. This rulemaking also proposes to add source category permits (commonly referred to as “general permits” in other jurisdictions) , which will all ow DDOE to issue a single permit for groups of

similar sources. Finally, t his rulemaking proposes to add requirements for new source review of minor sources. Once finalized, DDOE will submit all of the amendments as a SIP revision , except those pertaining to minor new source review (20 DCMR § 20 9 )

.

The proposed regulation is available for public review during normal business hours at the offices of the District Department of the Environment (DDOE), 1200 First Street, NE, Washington, D.C. 20002, and on

- line at http://ddoe.dc.gov/ddoe . Interested parties wishing to testify at this hearing must submit in writing their names, addresses, telephone numbers, and affiliation, if any, to Mr. William Bolden at DDOE by 4:00 p.m. on Monday, March 19 , 201 2 . Interested p arties may also submit written comments to Ms. Cecily Beall, DDOE Air Quality Division, at 1200 First Street, NE, 5th Floor, Washington, DC 20002, or submit comment s to her by email at cecily.beall@dc.gov . No written or email comments will be accepted afte r March 19 , 201 2 . For more information or to find out if the public he aring has been canceled, call Mr

. Stephen Ours at
202

- 535

- 1747 or email him at stephen.ours @dc.gov

.