# ENCLOSURE3
STATE IMPLEMENTATION PLANREVISIONS

Enclosure 3 Page 1

# VERMONT DEPARTMENT OF ENVIRONMENTAL CONSERVATION State Implementation Plan Revision Supporting Compliance With 

# Requirements for REASONABLYAVAILABLECONTROL

TECHNOLOGY (RACT) Under the 8-Hr Ozone National Ambient Air Quality Standard (NAAQS) Adopted on July 18, 1997



# November 14, 2008

# INTRODUCTION

Background and Requirement
Thefederal CleanAir ActAmendments of 1990 (CAA) givethestates primaryresponsibility for achieving the National Ambient Air Quality Standards (NAAQS)

. The NAAQS are established by the U

.S

. Environmental Protection Agency (EPA) as the maximumconcentrations in the atmosphere for specific air contaminants to protect public health and welfare

. The principal mechanismatthe statelevel for complyingwiththe CAAis the State Implementation Plan (SIP)

. ASIP outlines the programs, actions, and commitments a state will carry out to implement its responsibilities under the CAA

. Once approved by the EPA, a SIP is a legally enforceable document under bothstateandfederal law
.
This document contains a SIP revision for meeting the Reasonably Available Control Technology (RACT) requirements set forth by the CAArelating to the 8-hour ozone NAAQS
. The CAArequires that states achievethe NAAQSby specified dates, based onthe severity ofan area's air quality problem

. Maintaining concentrations ofground-level ozone below the healthbasedstandard is important because ozone is a serious human health threat, andalso can cause damage to important foodcrops, forests, andwildlife

. Repeated exposure to ozonepollution may cause a variety of adverse health effects for both healthy people and those with existing conditions including difficulty in breathing, chest pains, coughing, nausea, throat irritation, and congestion

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

. Asthma is a significant and growing threat to children and adults

. Although Vermont has not experienced violations ofthe 8-hour ozone NAAQS, the CAAidentifies Vermont as a part ofthe OzoneTransport Region (OTR)

. Certain stationary source control measures specified in the CAA as applicable to areas considered "moderate" ozone non-attainment areas also apply to states and portions of states located in the OzoneTransport Region (OTR) eventhough these areas are notdesignated as nonattainment areas. Stationary source control measures are techniques and equipment for reducing ozone precursor emissions, i .e., volatile organic compounds (VOC) and nitrogen oxides (NOx) fromstationary sources in the state
. For the purposes of regulating stationary sources therefore, the entire State ofVermontis considered a"moderate" ozone non-attainment areaforthe federal 8-hour ozone NAAQS because it is in the OTRestablished by operation of law under Section 184ofthe CAA

. Sections 182(b)(2) and 182(f) ofthe federal CAArequire owners andoperators of sources in ozone non-attainment areas to implement RACT for sources that are subject to ControlTechniques Guidelines (CTG) issued by EPAandfor"major sources" ofVOCandNOx, whichare ozoneprecursors.

# RACTis defined as the lowest emissions limitationthat aparticular source is capableofmeeting

by the application of control technology that is reasonably available considering technological and economic feasibility (44 FR 53762 ; September 17, 1979)

. RACT requirements are included in the CAA to assure that significant source categories at major sources of ozone precursor emissions are controlled to a "reasonable" extent, butnot necessarily to the more stringent Best Available Control Technology (BACT) or Maximum Achievable Control Technology (MACT) levels expected of new sources
. According to the EPA's Final Rule to Implement the 8-Hour Ozone NAAQS (70 FR 71612, November 29, 2005), areas classified as "moderate" nonattainment or higher must submit a demonstration that their current rules fulfill 8-hour ozone RACTrequirements for all CTGcategories andall major, non-CTGsources as arevisionto their SIPs

. Such demonstrations can be made with either a newRACTdetermination or acertification that previously-required RACT controls represent RACT for the 8-hour ozone standard

. The certification should be accompanied by appropriate supporting information, such as consideration ofinformation receivedduring thepublic commentperiod

. Regardless of the state's attainment designation for the 1997 8-hour ozone standard, Vermont, was required to submit RACT SIP revisions by September 15, 2006 because it is part of the OTR

. On March 24, 2008, EPApublished in the Federal Register afinding that Vermont had failed to submit the SIP revisions required for the 1997 8-hour ozone NAAQS

. Vermont is submitting the required SIP revisions at this time

. Although delayed in submittal to EPA, this SIP submittal does not have any substantive effect on air quality, since the required RACT controls on the applicable sources in Vermont have been in effect in rules, permits and/or administrativeordersformanyyears.

# Intent ofthis RACT SIPrevision

As mentioned above, all existing Vermont sources to which the "moderate" non-attainment area RACT rules were applicable have for several years already been required to apply RACT equivalent controls by state issued permits, administrative orders, rules or policies

. Thus this submittal completes thefederal SIP-related administrative responsibilityforthe StateofVermont in defining RACT for stationary sources with respect to the originally adopted 8-hour ozone standard (July 18, 1997)

. This RACT SIP revision demonstrates and/or certifies the following withrespect to Vermont stationary sources ofozoneprecursors: 1
. All required RACT controls, both CTGs and Major Sources, have been implemented onall relevant stationary sources ofVOCandNOx emissions; 2
. All applicable CTGRACT controls required to be submitted under the current RACT SIP call (applicable to CTGs issued prior to 2006) have been previously approved by EPAunderthe 1-hour ozone NAAQS; and 3
. All previously EPA-approved RACT controls, including CTGs issued prior to 2006 and previously submitted Single Source RACT determinations, as well as newly determined Single Source RACT applied to other Major Sources have been certified by the Vermont Air Pollution Control Officer, based on EPA's guidance and standards, to represent RACT control levels underthe new 8-hour ozone NAAQS

.

# . TABLE OF CONTENTS

Discussion A_

. VOCCTGRACT TABLE 1
. VOCCTG/RACT List B

. MajorSource (>50Tons per Year) Facility VOCRACT TABLE 2
. VOCRACT Major Source Facilities C

. Major Source (>100Tons per Year) Facility NOxRACT TABLE 3

. NOx RACT Major Source Facilities 

# Appendices Appendix A

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

Ozone RACT 2
. Certifications (or-recertifications) ofNegativeDeclarations for 25 CTGcategories issued priorto 2006 3
. Certifications ofNegative Declarations for 5 CTGcategories issued since 2005
. Appendix B: AdoptedVermont Ruleswhicharealready includedin thefederally

enforceable SIPbutforwhichminor changes are beingsubmitted for approval and to replace the existing version

. Text ofadopted Rule 5-253.3 Bulk Gasoline Plants Text ofadopted Rule 5-251(3) Control ofNitrogen Oxides Emissions: RACT for large stationary sources (Note: exact samerule currently in SIP as 5-251(2)) 

# Appendix C

: Isovolta Inc

. Operating Permit OP-95-040portions intended forinclusion in SIP(Thisfacilitywasformerlycalled U .S

. Samica) Appendix D

: Churchill Coatings CorporationOperatingPermitAOP-06-040portions intended forinclusion in SIP Appendix E: Dalton Hydro, LLC

. Operating PermitAOP-04-020portions intended forinclusion inSIP Appendix F: Killington/PicoSki Resort Partners, LLC

. OperatingPermitAOP-04-025a portions intended forinclusion in SIP

# Appendix G : OkemoLimitedLiability Company Operating Permit AOP-04-029 portions intended for inclusion in SIP Appendix H

: H .B.H

. Prestain, Inc

. Operating Permit AOP-03-009 portions intended for inclusion in SIP Appendix I: GreenMountain Prestain, Inc

. Operating PermitAOP-04-042 portions

intendedforinclusionin SIP AppendixJ: Documentation of 1995 Rule Changes to StateNOx RACT Rule 5-251

Control ofNitrogenOxides Emissions Appendix K

: Documentationof2001 Rule Changesto State VOCControl Rule 5-253.3 Bulk Gasoline Plants

# Discussion

A

. VOCCTGRACT VOCCTGsthat Vermontexamined with respect to this SIPsubmittal are shown below in Table 1
. VOC CTG/RACT List

. Vermont identified 34 source categories for which CTGs were adopted prior to September 2006 and for which determinations of RACT with respect to the newly adopted 8-Hr ozone standard were required to be included in this current RACT SIP revision

. Of these 34 CTG categories, 9 have been determined to be categories for which Vermont has applicable sources. For 8ofthese, Vermont has previously submitted RACT rules and received approval fromEPAand they have been adopted as RACT rules for the 1-Hr ozone standard in the Vermont SIP

. The Vermont regulations associated with these may be found in the Vermont Air Pollution Control Regulations (see Table 1
. column 2applicability and column 3VAPCRcitation)

. All 8ofthese rules were approved by EPAand included in theVermontSIP on 4/22/98

. The RACT regulation for 1 ofthese 8rules which had previously been approved by EPA in the Vermont SIP was amended in Vermont regulation on 4/20/O1 to clarify its requirements but not substantively change them, "Control ofVolatile Organic Emissions from Bulk Gasoline Plants" (December 1977, EPA-450/2-77-035)

. The amended Vermontrule, with its supporting administrative rulemaking documentation, is beingsubmitted withthis RACT SIP package to EPAforapproval

. The ninth CTGcategory for which a Vermont RACT rule was submitted to EPAon 11/22/06, "Control of Volatile Organic Compound Emissions from Wood Furniture Manufacturing Operations"(April 1996, EPA-453/R-96-007), is still pending SIPapproval by EPA

. It is the Vermont Air Pollution Control Officer's determination that the Vermont Air Pollution Control rules applicable to all nine ofthese CTGcategories, which have been approved and/or are pending approval as RACT for the 1-Hr ozone standard, also represent RACT for the 8-Hr ozone standard, including any subsequent revisions to the ozone standard that maintain an 8-Hr averaging period

. Certification of this fact and re-certifications that there are no applicable sources in Vermont for the other 25 CTGcategories (25 negative declarations) are included in APPENDIXA

. In addition, there are seven newCTG categories that were recently issued by EPA since September 2006
. Vermont has already determined that there are no applicable sources in Vermont for five ofthese newCTGcategories and is submitting negative declarations for these at this time in APPENDIX A

. Vermont utilized several different sources to verify that there were no applicable sources within the CTG categories for which we are making negative declarations

. The Permitting database, the annual emission registration database, the Field Enforcement database, permitting and field enforcement staffas well as other programs within the Department were consulted in our efforts to determine applicable sources to the CTG categories

. These databases themselves are constantly being updatedto ensure they are accurate and complete basedonnew initiatives andnew

information

. 7

# Vermont has also determined that it is required to adopt RACT rules for theremaining two new

CTGs, which are: "Control Techniques Guidelines: Industrial Cleaning Solvents" (September 2006, EPA 453/R-06-001) and "Control Techniques Guidelines: Offset Lithographic Printing and Letterpress Printing" (September 2006, EPA-453/R-06-002)

. Because these two new rules will take time to develop, Vermont intends to make a separate RACT SIP submittal covering these twocategories inthe near future

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. MaiorSource (>50Tons perYear) FacilityVOCRACT Besides the CTG-specific categories of VOCsources, the Clean Air Act requires RACT be applied to any major existing stationary source of VOC in the Ozone Transport Region, applicable to sources with the potential to emit 50tons or greater per year ofVOC

. Vermont's Air Pollution Control Regulation 5-253.20 applies to all sources with potential VOCemissions of 50 tpy or greater that are not regulated under a CTGspecific regulation

. This regulation was approved intheVermont SIPon 4/9/97

. Inreviewing existing stationary sources in Vermont, the State has identified 6facilities in Vermont which meet this criteria for reviewof RACT

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

. RACT for one of these sources (Isovolta, Inc., which was formerly called US Samica Corporation) had previously been incorporated into the Vermont SIP through an administrative order signed by the Secretary oftheVermont Agency ofNatural Resources on 1/4/95, submitted to EPAas a single-source RACT SIP, and approved by EPAon 4/9/97

. That administrative orderwas subsequently changed slightly and then incorporated into an operatingpermit issuedto the Isovolta Inc

. Plant on 1/6/06

. Since the order which is in the current Vermont SIP differs slightly fromthe operative "Permit to Operate", this SIP submittal includes, as APPENDIX C, the relevant conditions fromthe current operating permit for Isovolta Incorporated's plant in Rutland, Vt

. (OP-95-040)

. The State of Vermont would like EPAto incorporate the relevant portions ofthe Operating Permit related toVOCRACT (equivalentto the originaladministrative order) into theVermont SIP

. Anysubsequentchangeto the operating permit would be treated as asingle-source SIPrevision inthe future

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

. Churchill Coatings Corporation is identified in Table 2, where a summary of its permit history is given

. Churchill Coatings Corporation has an existing RACT determination incorporated into its current operating permit

. Therefore, the relevant conditions fromthe Churchill Coatings Corporation operating permit (AOP-06-040) are also being submitted as part ofthis RACT submittal package as APPENDIX Dfor inclusion in the Vermont SIP

. As with Isovolta Inc., any changeto the operatingpermit would betreatedas a single-source SIPrevision inthe future andsubmitted to EPAafterpublic comment andan opportunity for ahearing

. The two facilities identified as major VOCsources in Table 2 (HBH Prestain, Inc

. and Green Mountain Prestain, Inc.) have each been subject to the State of Vermont New Source Review permit process and required to control emissions at the "most stringent emission rate" (MSER)

. MSERhas been accepted by EPAunderVermont SIP NSRrules as equivalent to BACT/LAER

. RACT is less stringent than either ofthese control levels so these two facilities already meet RACT under existing permits

. These permits are included as APPENDIX HandAPPENDIXI for incorporation ofthe relevant conditions into the SIP

. Again, anysubsequent changes to the operating permits would be treated as a single-source SIP revisions in the future

. The two remaining facilities identified as major VOCsources in Table 2 (Ethan Allen Beecher Falls and Orleans) are subject to the wood furniture CTGand therefore are not subject to major source VOCRACTpursuantto 5-253.20oftheVermont AirPollutionControl Regulations

. 17

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. Maior Source (>100Tons per Year) Facility NOx RACT
Vermont's Air Pollution Control Regulation 5-251(3) applies to all sources with potential NOx emissions of 100 tpy or greater
. This regulation was approved (as 5-251(2)) by EPA and incorporated into the Vermont SIP on 4/9/97

. In reviewing existing stationary sources in Vermont, the State has identified 6facilities in Vermont which meet this criteria for reviewof RACT

. Table 3
. "NOx RACT Major Source Facilities" belowsummarizes the situation with respectto these six facilities

. Dalton Hydro, LLCin Gilman, Vermont was formerly called Simpson Paper

. Asingle-source SIP for NOx RACT was submitted to EPA and approved on 4/9/97

. In the interimperiod between SIP submittal andapproval by EPA, this RACT orderwas amended onJanuary 9, 1996 to remove the opacity monitoring requirements

. Theserequirements had no bearing onthe NOx RACT emission limits

. The amended order requirements were then incorporated into the subsequent Title V permits to operate unchanged from the amended administrative order (1/9/96)

. The State Air Pollution Control Officer has determined that the level of control that represented RACT atthat time remainsthe appropriate RACTtoday

. Becausetheadministrative order that comprised the original single-source SIP submittal is now out of date, Vermont is submitting, as part ofthis RACT SIPrevision, the relevant conditions fromthe operating permit for Dalton Hydro, LLC(OP-04-020) as APPENDIX E for incorporation into theVermont SIP

. Any subsequent change to the operatingpermit would be treated as a single-source SIPrevision inthefuture

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

. These are two ski areas, Killington/Pico Ski Resort Partners, LLC (Killington) and Okemo Limited Liability Company (Okemo)

. Both sources operateunderTitle Vpermits issued by Vermont

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

. The variability in the NOx RACT determinations forthe otherwise similarski resortswas a function of the differentflexibility needs at the resorts, the remaining life of the SCRequipped engines and non SCR equipped engines, timing of issuance of the permits in conjunction with the replacement schedules of all other engines at the resorts and the standards those engines would be held to
. The number of engines at each source in conjunction with the ages and emission characteristics of those various engines makes a direct comparison between the resorts difficult and not as straight forward as a single emission unit source such as a utility boiler with numerous precedents for RACT determinations

. The original permit incorporating the NOx RACT requirements for Okemo was issued September 5, 2000 and required a combination of SCR on the one large 1480 bhp engine, efficiency improvements to reduce overall fuel usage, hour limits on the engines, and a replacement schedule for all otherengines bringing themup to Tier II emission standards

. On a more traditional source RACTwould rarely require complete removal of the existing emission unit and replacement with a newunit

. Killington was first subjectedto the NOx RACT requirements in its permit issued May4, 2004
. It also required an SCRunit on the one large unit, a 1485 bhp unit

. Since this engine was older with a reduced expected operating life, the SCR requirement was reduced to 70%which enabled a more cost effective system
. In order to increase NOx reduction elsewhere under RACT to compensate for the lower SCR efficiency, the engine replacement schedule and requirements were changed fromOkemos and required Tier III compliant engines

. As a result, 21

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

.

Both RACT determinations can be considered RACT, at a minimum, since they both resulted in very significant NOx reductions due mainly to the replacement ofolder, dirtier engineswith new Tier II or Tier III certified engines
. This submittal includes the relevant conditions fromthe Title V operating permits for each of these sources as APPENDIX F (AOP-04-025a) &APPENDIXG(AOP-04-029) for inclusion in theVermont SIP

. The remaining three stationary sources to which RACT determinations may apply include two power stations as well as a rock processing facility

. All ofthese sources have been subject to MSER under the NSR program approved in Vermont's SIP

. MSER is, at minimum, representative of RACT, therefore there is no need to submit these determinations
. In addition, the SIP approved NOx RACT regulation 5-251(3)(d) exempts fromRACT those facilities that have been subjected to MSER

. Therefore, the permits for these three facilities are not included in this submittal
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