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1~lq< PROOG4 Memorandum UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 1 5 Post Office Square, Suite 100 Boston, MA 02109-3912

Date: July 10, 2012 Subject: Technical Support Document (TSD) for the New Hampshire Submittals to Fulfill the Requirements for 1997 and 2006 PM2 .5National Ambient Air Quality Standards Infrastructure Portion ofthe Clean Air Act Under Section 110(a)(2) From : Alison Simcox, Environmental Scientist Thru: Anne Arnold, Manager

Air Quality Planning Unit 

# 06

To: Docket for New Hampshire Section 110PM2 .5 Infrastructure Submittals (EPA-ROI-OAR-2009-0460 and EPA-ROI-OAR-2011-0324) A . INTRODUCTION The Environmental Protection Agency (EPA) is taking action on certain submittals made by New Hampshire to meet the Clean Air Act (CAA) section 110(a)(2) requirements relating to the 1997 and the revised 2006fine particulate matter (PM2,5) national ambient air quality standards (NAAQS) . This technical support document (TSD) gives EPA's analysis of the New Hampshire submissions with respect to section 110(a)(2) . 

### B. BACKGROUND Under sections 110(a)(1) and (2) ofthe Clean Air Act (CAA), states are required to submit SIPs that provide for the implementation, maintenance, and enforcement (the infrastructure) ofa new or revised NAAQSwithin three years following the promulgation ofthe NAAQS . Section 110(a)(2) lists the specific infrastructure elements that must be incorporated into the SIPs, including for example, requirements for emission inventories, prevention of significant deterioration (PSD), air pollution control measures, and monitoring that are designed to assure attainment and maintenance of the NAAQS . EPArefers to the requirements ofsections 110(a)(2)(A)-(C), (D)(ii), (E)-(H), and (J)-(M) as the "infrastructure" SIPs. Additionally, EPA refers to the requirements ofsection 110(a)(2)(D)(i) as the "interstate transport" SIPs. EPA provided separate guidance to states on each type ofSIP, infrastructure and interstate transport, and these actions may be on separate tracks and timelines. 1997 and 2006 PM2,5 NAAQSOn July 18, 1997, EPApublished new NAAQS for PM

(62 FR38652) . This included a new annual and a new

24-hour NAAQSfor particles with an aerodynamic diameter less than or equal to a nominal 2.5 micrometers (denoted PM2 .5). The annual PM2

.5 standard was set at 15 micrograms per cubic meter (~Lg/m3) based on a 3-year average ofannual mean PM2,5 concentrations, and the 24-hour PM2 .5 standard was set at 65 [tg/m3 based on a 3-year average of the 98th percentile of 24-hour concentrations. Thus, states were required to submit "infrastructure" SIPs for the 1997 PM2 .5 NAAQS to EPA no later than June 2000

. However, intervening litigation over the 1997 PM2,5 (and 8-hour ozone) NAAQS created uncertainty about how to proceed, and many states did not provide the required "infrastructure" SIP submissions for these newly promulgated NAAQS. On March 4, 2004, Earthjustice submitted a notice of intent to sue related to EPA's failure to issue findings offailure to submit related to the infrastructure requirements for the 1997 (and 8- hour ozone) NAAQS. With regard to the 1997 PM2 .5 NAAQS, EPAentered into a consent decree with Earthjustice, which required EPAto complete a Federal Register notice announcing EPA's determinations pursuant to section 110(k)(1)(B) ofthe Act as to whether each State had made complete submissions to meet the requirements ofsection 110(a)(2) for the 1997 PM2 .5 NAAQS by October 5, 2008. On October 17, 2006, EPApublished revised standards for PM (71 FR 61144) . For PM2 .5, the annual standard of 15 ~Lg/m was retained, and the 24-hour standard was revised to 35 pg/m3. For PM 10, the annual standard was revoked, and the 24-hour standard (150 ~Lg/m3) was retained. As required by section 110(a)(1) ofthe CAA, 110(a)(2) ("infrastructure") submittals were due within three years of promulgation ofthe revised 24-hour PM2 .5 standard (i .e., by September 21, 2009) . New Hampshire submitted a certification letter for the 1997 PM2,5 standards on April 3, 2008. On October 22, 2008, EPApublished findings concerning whether states had made the 110(a)(2) submissions for the1997 PM2 .5 standards (73 FR62902) . In the October 2008 action, we found that New

Hampshire had made a complete submission. New Hampshire submitted a certification letter for the 2006 PM2 .5 NAAQS on September 18, 2009. On June 9, 2010, EPApublished findings concerning whether states had made the 110(a)(2) submissions forthe 2006 PM2 .5 standards (76 FR55577) . In this findings notice, we found that New

Hampshire had made a complete submission. Additional information EPAis currently acting upon SIPs that address the infrastructure requirements of CAAsection 110(a)(1) and (2) for ozone and PM2 .5 NAAQS for various states across the country. Commenters on EPA's recent proposals for some states raised concerns about EPAstatements that it was not addressing certain substantive issues in the context of acting on those infrastructure SIP submissions. Those commenters specifically raised concerns involving provisions in existing SIPs and with EPA's statements in other proposals that it would address two issues separatelyand not as part of actions on the infrastructure SIP submissions: (i) existing provisions related to

excess emissions during periods ofstart-up, shutdown, or malfunction ("SSM") at sources, that may be contrary to the CAAand EPA's policies addressing such excess emissions; and (ii) existing provisions related to "director's variance" or "director's discretion" that purport to permit revisions to SIP-approved emissions limits with limited public process or without requiring further approval by EPA, that may be contrary to the CAA . EPA notes that there are two other substantive issues for which EPAstated in other proposals that it would address the issues separately: (i) existing provisions for minor-source new source review("minor source NSR") programs that may be inconsistent with the requirements ofthe CAAand EPA's regulations that pertain to such programs; and (ii) existing provisions for Prevention ofSignificant Deterioration (PSD) programs that may be inconsistent with current requirements of EPA's "Final NSR Improvement Rule," 67 FR 80186 (December 31, 2002), as amended by 72 FR 32526 (June 13, 2007) ("NSRReform") . As noted above, for the 1997 PM2,5 (and also for 1997 8-hour ozone) NAAQS, states must provide a SIP submission, or provide a certification that addresses sections 110(a)(2)(A) through (M), with the exception ofthe portion of 110(a)(2)(C) pertaining to a permit programin Part D Title I ofthe CAA, 3 or 4prongs of (D)(i), and 110(a)(2)(I) (nonattainment area plan under Part D) . The four prongs of 110(a)(2)(D)(i) refer to EPA's subdivision of (D)(i) into four "interstate transport prongs," two under 110(a)(2)(D)(i)(I) and two under 110(a)(2)(D)(i)(II) . The two prongs under 110(a)(2)(D)(i)(l) are: (prong 1) contribute significantly to nonattainment in any other state with respect to any such national primary or secondary NAAQS, and (prong 2) interfere with maintenance by any other state with respect to the same NAAQS . The two prongs under 110(a)(2)(D)(i)(II) are (prong 3) interfere with measures required to be included in the applicable implementation plan for any other state under part Cto prevent significant deterioration (PSD) ofair quality or (prong 4) to protect visibility. To help states meet this statutory requirement, EPAissued guidance on October 2, 2007 entitled "Guidance on SIPElements Required Under Section 110(a)(1) and (2)for the 1997 8-Hour Ozone andPMZ,S NationalAmbientAir Quality Standards," which listed the basic elements that states must include in their 110(a) SIPs. On September 25, 2009, EPA issued an updated guidance document entitled Guidance on SIP Elements Required Under Sections 110(a)(1) and (2)for the 200624-Hour Fine Particle (PM2.5) National AmbientAir Quality Standards (NAAQS), which clarifies expectations for certain elements to meet the requirements of sections 110(a)(1) and (2) ofthe CAAfor both the 1997 and 2006 PM2,5 NAAQS. Specifically, guidance is provided for satisfying the section 110(a)(2)(D) requirements for the 2006 PM2,5 NAAQS, as well as guidance for satisfying the section 110(a)(2)(G) requirements that addresses both the 1997 and 2006 PM2,5 NAAQS. C . STATE SUBMITTALSPursuant to the October 2, 2007 EPAguidance for addressing the SIP infrastructure elements

required under sections 110(a)(1) and (2), there are 14 components that must be included in the SIPs that New

Hampshire submitted for the 1997 and 2006 PMz.s NAAQS. These are as follows: Section 110(a)(2)(A) Emission limits and other control measures. Section 110(a)(2)(B) Ambient air quality monitoring/data system . Section 110(a)(2)(C) Programfor enforcement ofcontrol measures. Section 110(a)(2)(D) Interstate transport. Section 110(a)(2)(E) Adequate resources. Section 110(a)(2)(F) Stationary source monitoring system . Section 110(a)(2)(G) Emergency power. Section 110(a)(2)(H) Future SIP revisions. Section 110(a)(2)(J) Consultation with government officials. Section 110(a)(2)(J) Public notification. Section 110(a)(2)(J) Prevention of significant deterioration (PSD) and visibility protection. Section 110(a)(2)(K) Air quality modeling/submission ofsuch data. Section 110(a)(2)(L) Permitting fees. 

### Section 110(a)(2)(M) Consultation/participation by affected local entities. As noted above, New

Hampshire provided a submittal dated April 3, 2008 to satisfy the requirements of section 110(a)(2) ofthe CAAfor the 1997 PM2 .5 NAAQS, and a submittal dated September 18, 2009for the 2006 PM2,5NAAQS. We are proposing to approve the submittals fromNew Hampshire as fully meeting the infrastructure requirements for the 1997 and 2006 PM2,5standards for the following 110(a)(2) elements: section 110(a)(2)(B), (C) (enforcement program), prongs 1 and 2of (D)(i), (D)(ii), (E)(i), (E)(iii), (F), (G), (H), (J) (consultation), (J) (public notification), (K), (L), and (M). We are proposing to conditionally approve the submittals fromNew Hampshire for the following 110(a)(2) elements: 110(a)(2)(A) and E(ii) (state boards and conflict of interest provisions), as well as (C), prong 3 of (D)(i), and (J) as they relate to the state's PSDprograms. Inthis action for New

Hampshire, as further described under "Evaluation ofState Submittals," we are addressing prongs 1, 2 and 3 of 110(a)(2)(D)(i) . EPA has previously decided that it can take action on different parts ofan infrastructure SIP for a given NAAQS without taking concurrent action on all subsections. This is the case with section 110(a)(2)(D)(i) . EPA is working with states to address each ofthe four prongs of section 110(a)(2)(D)(i) with administrative actions proceeding on different tracks with different schedules.For elements that are conditionally approved, New Hampshirewill have oneyear from final rulemaking to remedy the deficiencies described below under "Evaluation of State Submittals." If the state remedies the deficiencies prior to the one-year deadline, EPAwill publish a rulemaking to convert the conditional approvals to approvals. If the state does not remedy the deficiencies within the allowed one-year period, the conditional approvals will become disapprovals. 

### D . EVALUATION OF STATE SUBMITTALS As noted above, New

Hampshire provided submittals for the 1997 and 2006 PM2,5 NAAQS. However, the demonstrations submitted by the State for how it is meeting many ofthe section 110(a)(2) elements are substantively identical for both ofthe PM2,5 NAAQS. Therefore, unless otherwise noted, the following evaluation ofeach element pertains to both standards. 1 . Section 110(a)(2)(A) : Emission limits and other control measures: 

### This requires SIPs to include enforceable emission limits and other control measures, means or techniques, schedules for compliance and other related matters. NH DES's response to this requirement: The State listed the following provisions to meet this element: RSA21-0 Department of Environmental Services and RSA 125-CAir Pollution Control . Powers ofthe Commissioner. Regulations. Fees. General Permits. New Hampshire Code ofAdministrative Rules, Department of Environmental Services (Env-A 100- 4300) : The following chapters and parts have general and specific applicability to sources of particulate matter emissions, including NOx, S02, and VOCs as precursors to particulate matter: CHAPTER Env-A300Ambient Air Quality Standards, eff. 2-28-04 - Part Env-A303 Primary and SecondaryAmbient Air Quality Standards for Particulate Matter - Part Env-A 304 Primary and SecondaryAmbient Air Quality Standards for Sulfur Dioxide - Part Env-A306 Primary and SecondaryAmbient Air Quality Standards for Nitrogen Dioxide 

### CHAPTER Env-A400Acid Deposition Control Program, eff . 12-22-04 CHAPTER Env-A500Standards Applicable to Certain New or Modified Facilities and Sources of Hazardous Air Pollutants, ef£ 4-5-02, 12-31-05, and 6-23-09 - Part Env-A503 New Source Performance Standards CHAPTEREnv-A600Statewide Permit System, eff . 4-26-03, 7-28-04, 6-8-06,4-3-08, and 4- 22-09 - Part Env-A606Air Pollution Dispersion Modeling Impact Analysis Requirements- Part Env-A618 (formerly Env-A 622) Additional Requirements in Non-Attainment Areas and

the New Hampshire Portion ofthe Northeast Ozone Transport Region - Part Env-A619 (formerly Env-A 623) Prevention of Significant Deterioration (PSD) ofAir Quality Permit Requirements CHAPTEREnv-A700Permit Fee System, ef£ 4-26-03 and 6-26-04 - Part Env-A702 Application Review and Modeling Fees - Part Env-A703 Permit Review Fees - Part Env-A 704Testing and Monitoring Fees for Temporary Permits - Part Env-A 705Emission-Based Fee CHAPTEREnv-A800TestingAnd Monitoring Procedures, eff . 10-31-02, 12-22-04, 4-27- 07, and 4-22-09 - Part Env-A802 Compliance Stack Testing for Stationary Sources - Part Env-A 803 NOx RACT Testing Requirements - Part Env-A 804 Volatile Organic Compound Testing - Part Env-A 805 Capture Efficiency [for VOCs] - Part Env-A 806 Sulfur Content Testing of Fuels - Part Env-A 807 Testing for Opacity of Emissions - Part Env-A808 Continuous Emission Monitoring - Part Env-A 809Approval ofAlternate Methods CHAPTEREnv-A 1000 Prevention, Abatement, and Control of Open Source Air Pollution, eff. 3-12-03, and 8-23-08 - Part Env-A 1001 Open Burning - Part Env-A 1002 Fugitive Dust - Part Env-A 1003 Firefighter Instruction and Training Activities CHAPTEREnv-A 1100 Prevention, Abatement, and Control of Mobile Source Air Pollution, eff. 3-26-05 - Part Env-A 1101 Diesel And Gasoline-Powered Motor Vehicles CHAPTEREnv-A 1200Prevention, Abatement, and Control of Stationary Source Air Pollution, ef£ 8-27-98, 10-31-02, 12-31-02, 12-22-04, 2-26-05, and 4-3-08 - Part Env-A 1204 Stationary Sources ofVolatile Organic Compounds (VOCs) - Part Env-A 1211 Nitrogen Oxides (NOx) CHAPTEREnv-A 1600 Fuel Specifications (formerly incorporated into CHAPTEREnv-A 400), ef£ 5-29-97, 5-2-02, 4-23-05, and 4-27-07 - Parts Env-A 1604 thru 1606Sulfur Content Limitations for Fuels - Part Env-A 1607 Fuel Analysis Requirement for Suppliers of Liquid or Solid Fuel - Part Env-A 1610 Compliance - Part Env-A 1611 Oxygen-Flexible Reformulated Gasoline CHAPTEREnv-A 1900 Incinerators and Wood Waste Burners (formerly Part Env-A 1201), eff

. 2-26-05- Part Env-A 1903 Visible Emission Standard for Incinerators and Wood Waste Burners

- Part Env-A 1904 Particulate Matter Emission Standards for Incinerators and Wood Waste Burners 

### CHAPTEREnv-A2000 Fuel Burning Devices (formerly Part Env-A 1202), eff. 4-23-05 - Subparts Env-A2002.01 thru 2002.05 Visible Emission Standards for Fuel Burning Devices and Opacity Standard for Fuel Burning Devices Subject to 40 CFR 60 - Subparts Env-A2002.06thru 2002.10 Particulate Emission Standards for Fuel Burning Devices CHAPTEREnv-A2100 Particulate Matter and Visible Emissions Standards (formerly Part Env-A 1203), eff. 11-24-04 CHAPTEREnv-A2400 Ferrous and Non-Ferrous Foundries, Smelters and Investment Casting Industries (formerly Part Env-A 1205), ef£ 11-24-04 CHAPTER Env-A2500 Pulp and Paper Industry: Particulate Matter and Visible Emissions Standards (formerly Part Env-A 1206), eff . 11-24-04 CHAPTER Env-A2600Pulp and Paper Industry: Total Reduced Sulfur Emissions From Kraft Mills, eff

. 12-9-04 CHAPTEREnv-A 2700 Hot Mix Asphalt Plants (formerly Part Env-A 1207), eff. 11-24-04 CHAPTEREnv-A2800 Sand and Gravel Sources, and Cement and Concrete Sources (formerly Part Env-A1208), eff. 11-24-04 CHAPTEREnv-A 2900 Multiple Pollutant Annual Budget Trading and Banking Program, ef£ 5-13-03 CHAPTEREnv-A 3000 Emissions Reduction Credits Trading Program, eff . 1-21-97 CHAPTEREnv-A 3100 Discrete Emissions Reduction Trading Program, ef£ 1-21-97 CHAPTEREnv-A3200 NOx Budget Trading Program, eff. 4-1-00 and 11-2-07 CHAPTEREnv-A3300 Municipal Waste Combustion, eff . 2-2-08 CHAPTEREnv-A3400 Commercial and Industrial Solid Waste Incinerators, ef£ 5-2-02 CHAPTEREnv-A3500Hospital/MedicaVInfectious Waste Incineration, eff . 1-5-07 CHAPTEREnv-A3600National Low Emission Vehicle (National LEV) Program, eff. 7- 22-09 CHAPTER Env-A3700 NOx Emissions Reduction Fund for NOx-Emitting GenerationSources, ef£ 12-20-01 and 3-26-05

CHAPTER Env-A4000Portable Fuel Container Spillage Control, eff . 1-9-08 CHAPTEREnv-A4100 Consumer Products, eff. 9-24-05 CHAPTEREnv-A4200 Architectural and Industrial Maintenance Coatings, eff. 7-27-06 CHAPTEREnv-A4300 Other Solid Waste Incineration, ef£ 1-5-07 New Hampshire Code ofAdministrative Rules, Department of Safety (Saf-C 100 - 6700) : The following chapters and parts have applicability to vehicular sources of particulate matter emissions, including NOx, S02, and VOCs as precursors to particulate matter : CHAPTERSaf-C 3200 Official Motor Vehicle Inspection Requirements, eff . 6-22-07 and 6- 20-08, provides for the inspection of passenger cars, trucks, combinationvehicles, trailers and semi-trailers, motorcycles, farmand agricultural vehicles, antique vehicles and motorcycles, recreation vehicles, street rods, and homemade vehicles. Part Saf-C3220Emissions Requirements: The following subparts provide for inspection of motor vehicle components: - Saf-C 3220.01 Positive CrankcaseVentilation (PCV) - Saf-C 3220.02 Air Injection Pump/Pulse Air System - Saf-C 3220.03 Inspection of Fuel System - Saf-C 3220.04 Evaporative Canister - Saf-C 3220.05 Inspection of Exhaust System - Saf-C 3220.06 Replacement Parts CHAPTERSaf-C 5800 Roadside Diesel Opacity Inspection, eff. 1-1-99, implements a roadside heavy-duty diesel emissions testing program mandated by the New

Hampshire Legislature as part 1998 NH Laws 207. The law was passed pursuant to the state's agreement with the Federal Environmental Protection Agency on an overall clean air strategy underthe provisions ofthe federal Clean Air Act Amendments of 1990 . The rules apply to all diesel powered motor vehicles with a manufacturer's gross vehicle weight rating of 10,000 pounds or more and all diesel-powered buses manufactured to carry 25 or more passengers, whether these vehicles are registered in New Hampshire or anotherjurisdiction. EPAanalysis: Section 110(a)(2)(A) requires that all emission limits, control measures and other related matters in the SIPbe enforceable. Many ofthe Env-Aregulations listed above have been approved by EPA, and New Hampshire has submitted others, including revisions to previously approved regulations, to EPAfor approval (Env-A 400-600, 1000, 1500, 1600, 1900-2100, 2400- 2800) . (See Appendix - note that some regulations have changed numbers.) However, the current SIP-approved Env-A300(Ambient Air Quality Standards) does not reflect the most recent annual and 24-hour PM NAAQS. In March/April 2012, New Hampshire proposed the necessary revisions to Env-A 300, and has submitted a letter datedJune 29, 2012, committing to adopt and submit the necessary regulation revisions to EPAby a date that is no later than one year fromconditional approval of New Hampshire's PM2,5infrastructure submissions. Wepropose to conditionally approve New Hampshire's 110(a) submissions for infrastructure element 110(a)(2)(A) . 2 . Section 110(a)(2)(B) : Ambient air quality monitoring/data system This requires SIPs to include provisions to provide for establishment and operation ofambient air quality monitors, collecting and analyzing ambient air quality data, and making these data available to EPA upon request. NHDES's response to this requirement: The State listed the following provisions to meet this element: 40 CFRPart 58 Ambient Air Quality Surveillance: New Hampshire's 2009 Air Monitoring Network Plan, submitted to meet the requirements of this part, received approval fromEPA on August 31, 2009. NHDES collects and reports ambient air quality data for 03, S02, NOZ, Pb, CO, PMIo and PM2 .5. The data are reviewed andvalidated before being sent to the EPAair quality system AQS, no later than 90days after the end ofa calendar quarter. [The most recent plan for New Hampshire, the 2011 Annual Air Monitoring Network Plan, was submitted on August 12, 2011 and was approved on September 2, 2011 .] RSA 125-C:6 Powers and Duties of the Commissioner :

- RSA 125-C

:6, IV authorizes the Commissioner to collect and disseminate the results ofstudies relating to air quality. - RSA 125-C

:6, Vauthorizes the Commissioner to consult and cooperate with agencies of the federal government . RSA 125-C

:6, XVI authorizes the Commissioner to establish an air quality monitoring equipment replacement program to provide for sufficient annual replacementto meet federal Environmental Protection Agency guidelines and to assure the reliability and accuracy ofthe network equipment. EPAanalysis: New

Hampshire meets the requirements to establish, operate, and maintain an ambient air monitoring network, collect and analyze the monitoring data, and make the data available to EPA upon request. We conclude that New Hampshire's infrastructure SIPs for the 1997 and 2006 PM2

.5 NAAQS meet the requirements ofsection 110(a)(2)(B) . 3 . Section 110(a)(2)(C) : Programs for Enforcement, PSD, and NSR This requires states to have a plan that includes a programproviding for enforcement of all SIP measures and the regulation of modification and construction ofany stationary source within the10

areas covered by the plan as necessary to assure that NAAQS are achieved, including a program to meet PSDand nonattainment New Source Review

(NSR) requirements. NHDES's response to this requirement: The State listed the following provisions to meet this element: RSA 125-C

:4 Rulemaking Authority ; Subpoena Power: - RSA 125-C

:4, I authorizes rulemaking to control emissions and establish a permit program . RSA 125-C

:11 Permit Required provides for a permit program, permits with enforceable emission limits, and emission control measures. 

### RSA 125-C:15 Enforcement : - RSA 125-C:15, I authorizes NHDES to issue orders to correct violations RSA 125-C . - RSA 125-C:15, I-b, II, III and IV provide for penalties for violations of RSA 125-C . These statutes establish legal authority for the enforcement of New Hampshire Rules Governing the Control ofAir Pollution (Env-A 100 - 4300) . EPAanalysis: New Hampshire has legal authority under RSA 125-C:15 to enforce the state's air-pollution regulations, which include SIP-approved regulations necessary to assure that NAAQS are achieved, including PSDand NSRprograms. NSRand PSDpermitting: As discussed previously, we are not evaluating nonattainment-related provisions, such as the nonattainment NSRprogram required by part Din 110(a)(2)(C) and measures for attainment required by section 110(a)(2)(I), as part ofthe infrastructure SIPs for the 1997 and 2006 PM2,5 NAAQS because these submittals are required beyond the date (3 years fromNAAQS 

### promulgation) that section 110 infrastructure submittals are required. PSDprograms apply in areas that are meeting the NAAQSor are unclassifiable (referred to as areas in attainment) . PSDapplies to new major sources and major modifications at existing sources. New Hampshire's NSRprogram is established in RSA 125-C :11 (Air Pollution Control/Permit Required), RSA 125-C

:12 (Air Pollution Control/Administrative Requirements), and RSA 125- C :13 (Air Pollution Control/Criteria for Denial ; Suspension or Revocation; Modification) . New Hampshire's PSDprovisions for air-quality permits are established in Env-A619 . The most recent version of the state's Statewide Permit System(Env-A 600) was approved into the NH SIPon February 6, 2012 (77 FR 5700) . New Hampshire has authority to issue PSDpermits and enforce themunder its approved PSDSIP . MajorSource PM2

.5 PSDrules

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On May 16, 2008, EPA promulgated the final "Implementation ofthe New Source Review (NSR) Program

for Particulate Matter Less Than 2.5 Micrometers (PMZ.5)" (73 FR28321) . That action established NSRapplicability for PM2 .5 precursor pollutants, established major source thresholds and significant emissions rates for PM2 .5 and its precursors, and laid out aroad map for states to use in transitioning to addressing condensable particulate matter. New Hampshire is in the process of adopting rules to meet its obligations for PSDunder the May 16, 2008 PM2 .5 rule. Following adoption of these rules, the State will submit a SIP revision to EPAfor approval . On October 20, 2010, EPA promulgated the final "Prevention ofSignificant Deterioration (PSD) for Particulate Matter Less Than 2.5 Micrometers (PM2,5)-Increments, Significant Impact Levels (SILs) and Significant Monitoring Concentration (SMC)" (75 FR64864) . That action amended the requirements for PM2 .5 under the PSDprogramby adding maximum allowable increases in ambient pollutant concentrations ("increments") and two screening tools, known as the Significant Impact Levels (SILs) and a Significant Monitoring Concentration (SMC) for PM2,5 . The SILs for PM2

.5 were also added to two other NSRrules that regulate the construction and modification of any major stationary source located in an attainment or unclassifiable area, where the source's emissions may cause or contribute to aviolation ofthe NAAQS . In this final rule, states were required to submit revised SIPs to EPAfor approval by July 20, 2012. Although New Hampshirewill not meetthis deadline, the State is in the process ofadopting rules to meet its obligations for PSDunder the October 20, 2010 PM2 .5 rule. Following adoption ofthese rules, the State will submit a SIP revision to EPAfor approval . Furthermore, New

Hampshire presently implements PSDthrough an incorporation by reference (IBR) ofa pre-2006 version of 40CFR52.21 . Since New Hampshire law

does not permit prospective incorporation by reference, we understand the New Hampshire regulation's IBRof 40 CFR52.21(d) (prohibiting sources fromexceeding NAAQS) to refer to the NAAQS as they existed on the date ofNew Hampshire's IBR

. Therefore, New

Hampshire's PSDprogram does not properly implement the basic requirement ofensuring that new sources do not cause a NAAQS exceedance for the 2006 PM2 .5 NAAQS. New

Hampshire is presently in the process of revising its regulations to IBRa more up-to-date version of 40 CFR52.21 . Since New

Hampshire has not yet completed the rulemaking discussed in the preceding three paragraphs, the New

Hampshire 110(a) submittals are not fully approvable with respect to CAA section 110(a)(2)(C), (D)(i)(11), and (J) forthe 1997 and 2006 PM2 .5 NAAQS at this time. All these sections relate to New Hampshire's PSDpermit program . However, New

Hampshire is making progress and, on June 28, 2012, New Hampshire submitted a letter to EPA committing to adopt and submit the necessary regulation revisions to EPA by a date no laterthan one year from conditional approval of New Hampshire's PM2

.5 infrastructure submissions. Therefore, we are proposing to conditionally approve infrastructure elements 110(a)(2)(C) [also (D)(i)(II) and (J)] as it relates to the state's need to have a PSDprogram that meets all federal requirements. Minor Source Permitting:12

In this action, EPAis proposing to approve New Hampshire's Infrastructure SIP forthe 1997 and 2006 PM2

.5 standards with respect to the general requirement in section 110(a)(2)(C) to include a programin the SIPthat regulates the modification and construction ofany stationary source necessary to assure that the NAAQS are achieved. EPAdid not reevaluate New Hampshire's minor source programat this time, and therefore, is not proposing to approve or disapprove the New Hampshire existing minor NSRSIPprogram itself to the extent that it may be inconsistent with EPA's regulations governing this program . EPAmaintains that the CAAdoes not require that infrastructure SIPs address existing provisions concerning minor NSRprograms. We articulated our position in a number of infrastructure SIP final actions taken in 2011, noting in the preambles for those actions that existing provisions for minor source new source review programs may be dealt with separately, outside the context ofacting onthe infrastructure SIP submission ofa state. Greenhouse Gas (GHG) PSDPermitting: On June 3, 2010, EPApromulgated the final "Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule" (75 FR 31514) . This rule, known as "the Tailoring Rule" established thresholds that phase in the applicability of PSDrequirements to GHGsources, starting withthe largest GHGemitters, and was designed to relieve the overwhelming administrative burdens and costs associated with the dramatic increase in permitting burden that would have resulted fromapplying PSDrequirements to GHGemission increases at or above the mass-based statutory thresholds of 100or 250tons per year generally applicable to all PSDregulated pollutants starting on January 2, 2011 . However, EPArecognized that even after it finalized the Tailoring Rule, many SIPs with approved PSDprograms would, until they were revised, continue to apply PSDat the statutory thresholds, even though the states would not have sufficient resources to implement the PSDprogram at those levels. Consequently, on December 30, 2010, EPApromulgated the final "Limitation ofApproval of Prevention ofSignificant Deterioration Provisions Concerning Greenhouse Gas EmittingSources in State Implementation Plans" (75 FR82536), which narrowed EPA's approval of previously approved SIPs that apply PSDto GHGemissions increases from sources emitting GHGs below

the Tailoring Rule thresholds. The rule allowed EPAto withdraw its previous approvals ofState programs to the extent that the SIPs applied PSDto increases in GHG emissions fromGHG-emitting sources below the Tailoring Rule thresholds. Portions ofthe PSD programs regulating GHGs fromGHG-emitting sources with emission increases at or above the Tailoring Rule thresholds remained approved. The effect of EPAnarrowing its approval in this manner is that the provisions of previously approved SIPs that apply PSDto GHGemissions increases from

sources emitting GHGs below the Tailoring Rule thresholds have the status of having been submitted by the State but not yet acted upon by EPA . New Hampshire has an approved PSDSIP that provides the State authority to issue PSDpermits governing GHGand sets GHGpermitting applicability at the Tailoring Rule thresholds. This PSDSIPwas approved by EPA on February 6, 2012 (77 FR 5700) . This PSDprogramis able to take advantage ofthe Tailoring Rule thresholds for PSDapplicability by relying on the GHG PSDNarrowing Rule.

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EPAconcludes that New Hampshire has SIP-approved regulations that include programs for enforcement, source monitoring, source testing and test methods, and recordkeeping and reporting (see Appendix) . However, EPA is proposing to make a determination that the New Hampshire 110(a) submittals for the 1997 and 2006 PM2 .5 NAAQS do not meet the portions of CAAsection 110(a)(2)(C) which relate to the state's need to have a federally enforceable PSD program that meets requirements ofthe two major source PM2,5 PSDrules discussed above, 73 FR28321 and 75 FR64864 . Therefore, we are proposing to conditionally approve infrastructure elements 110(a)(2)(C) . (As discussed below, we are also proposing to conditionally approve two related elements, (D)(i)(II) and (J) .) 4 . Section 110(a)(2)(D) : Interstate transport and Interstate and International pollution abatement Section 110(a)(2)(D) is divided into two components, 110(a)(2)(D)(i) and 110(a)(2)(D)(ii) . In addition, EPAhas subdivided Section 110(a)(2)(D)(i) into four "prongs," two under 110(a)(2)(D)(i)(I) and two under 110(a)(2)(D)(i)(11) . The two prongs under 110(a)(2)(D)(i)(I) are (prong 1) contribute significantly to nonattainment in any other State with respect to any such national primary or secondary NAAQS, and (prong 2) interfere with maintenance by any other State with respectto the same NAAQS. The second two prongs under 110(a)(2)(D)(i)(II) are (prong 3) interfere with measures required to be included in the applicable implementation plan for any other State under part Cto prevent significant deterioration of air quality or (prong 4) to protect visibility. Section 110(a)(2)(D)(ii) addresses interstate and international pollution abatement, and requires SIPs to include provisions insuring compliance with sections 115 and 126of the Act, relating to interstate and international pollution abatement. Herein, we are addressing prongs 1 and 2of 110(a)(2)(D)(i)(I) and prong 3 of 110(a)(2)(D)(i)(II) as well as section 110(a)(2)(D)(ii) for New Hampshire's 110(a) submissions for the 1997 and 2006 PM2,5NAAQS

. EPAhas previously decided that it can take action on different parts ofan infrastructure SIP for a given NAAQS without taking concurrent action on all subsections. This is the case with section 110(a)(2)(D)(i) . EPA is working with states to address each ofthe four prongs of section 110(a)(2)(D)(i) with substantive administrative actions proceeding on different tracks with different schedules. NH DES's response to this requirement (PSD and Visibility only) : The State listed the following provisions to meet this element: RSA 125-C

:6. XVand Part Env-A 619 address the prevention ofsignificant deterioration (PSD) ofambient air quality in relation to interstate transport of pollutants and protection ofair quality in Class I international parks - see program description for CAAsection 110(a)(2)(J) . EPAAnalysis :14

Regarding 110(a)(2)(D)(i) , we are herein addressing prongs 1, 2and 3 of 110(a)(2)(D)(i) for the 2006 PM2

.5 NAAQS. We have alreadytaken some actions on interstate transport SIPs for the 1997 PM2

.5 NAAQS in separate rulemakings. EPAhas also taken separate action on prong 4 of 110(a)(2)(D)(i) that pertains to visibility. New Hampshire submitted a Regional Haze SIP to EPAon January 29, 2010, with supplemental submittals on January 14, 2011, and August 26, 2011, that addresses regional haze for the firstplanning period from2008through 2018. On February 28, 2012 (77 FR 11809) EPAproposed approval ofNew Hampshire's Regional Haze SIP. EPA is required by consent decree to take final action by July 13, 2012. On July 3, 2012, New

Hampshire submitted a letter to EPAcertifying that it is not contributing significantly to nonattainment or interfering with maintenance ofthe 1997 or 2006 PM2 .5 NAAQS in any other state. EPAagrees and has conducted modeling for the Clean Air Interstate Rule (CAIR) (70 FR25162) and for the Cross State Air Pollution Rule (CSAPR) (76 FR48208) that shows that New

Hampshire does not contribute to nonattainment or interfere with maintenance in any other state. Therefore, we are proposing to approve New Hampshire's submissions with respect to prongs 1 and 2 of 110(a)(2)(D)(i) . In regard to 110(a)(2)(D)(i)(II), we are proposing action herein on the requirement that pertains to preventing sources in New Hampshire fromemitting pollutants that will interfere with measures required to prevent significant deterioration ofair quality in other states for the 2006 PM2,5 standard (i .e., prong 3 of 110(a)(2)(D)(i)) . On August 15, 2006, EPAissued guidance entitled "Guidance for State Implementation Plan (SIP) Submissions to Meet Current Outstanding Obligations Under Section 110(a)(2)(D)(i) for the 8-hour Ozone and PM2,5National Ambient Air Quality Standards." The 2006guidance states that the PSDpermitting program is the primary measure that each State must include to prevent interference with other state's programs to prevent significant deterioration ofair quality in accordance with section 110(a)(2)(D)(i)(II)

. As discussed under (3) ofthis TSDon section 110(a)(2)(C), the state's SIP-approved PSD program does not yet meet requirements ofthe most recent federal PSDrules for implementing the PM2,5NAAQS. Therefore, we are proposing to conditionally approve prong 3 of 110(a)(2)(D)(i) in New Hampshire's 110(a) submittal for the 1997 and 2006 PM2,5NAAQS. Although we are not proposing action herein on the fourth and final prong of 110(a)(2)(D)(i) (protect visibility), we note that EPAproposed approval ofNew Hampshire's Regional Haze SIP on February 28, 2012 (77 FR 11809) and expects to take final action by July 13, 2012. Regarding Section 110(a)(2)(D)(ii), which relates to interstate and international pollution abatement, New

Hampshire is required to give notice ofdraft PSDpermits that meet the requirements in our regulations. In the currently approved SIP, former Env-A 205.03 provides that New

Hampshire specifically defers to 40 CFR Part 52 for the process by which PSDpermits are issued. Env-A205.03. 40CFRPart 52effectively incorporates the requirements of 40CFR Part 124 - which include affected state notice. 40 CFR 124.10(c)(1)(iii), (vii) &(x) . (New Hampshire's current notice regulation for PSDpermits, Env-A621 .03-04, does not IBR40CR Part 52. Since the approved SIP's notice regulation is adequate, we are not presently reviewing

### 15

the revised regulation.) The State also has no pending obligations under section 115 or 126(b) of the Act. 5 . Section 110(a)(2)(E) : Adequate resources Section 110(a)(2)(E) requires states to provide (i) necessary assurances that the State will have adequate personnel, funding, and authority under State law to carry out the SIP (and is not prohibited by any provision of Federal or State law fromcarrying out the SIP or portion thereof), (ii) requires that the State comply withthe requirements respecting State boards under section 128, and (iii) necessary assurances that, where the State has relied on a local or regional government, agency, or instrumentality for the implementation ofany SIP provision, the State has responsibility for ensuring adequate implementation of such SIP provision. NHDES's response to this requirement : The State listed the following provisions to meet this element: RSA 125-C:6 authorizes the NHDES Commissioner to enforce the state's air laws, establish a permit program, accept and administer grants, and exercise all incidental powers necessary to carry out the law

. RSA 125-C:12 authorizes the Commissioner to collect fees to recover the costs ofreviewing and acting upon permit applications and enforcing the terms of permits issued. RSA21-0:11 establishes the NHAir Resources Council, a State board that has the authority to hear enforcement and permit appeals. The Council consists of 11 members, 6 ofwhom must represent the public interest. The State of New

Hampshire Air Quality Implementation Plan, originally submitted January 27, 1972, with numerous amendments, describes the (A) existing organizations; (B) Manpower ; (C) Funding; (D) Physical Resources and (E) Local Agencies. (The State ofNew Hampshire does not rely on any local or regional government, agency, or instrumentality for the implementation ofany SIP provision) . [added to SIP for 2006 PM2,5 NAAQS: RSA 125-S Motor Vehicle Air Pollution Abatement Fund establishes a fund to be used for costs incurred by NHDES in the prevention and abatement ofon-road motor vehicle emissions. Funding is provided through a transfer offees collected for motor vehicle inspection stickers.] EPAanalysis: New Hampshire's SIP meets the requirements ofsection 110(a)(2)(E)(i) for the 1997 and 2006 PM2,5 NAAQS

. RSA 125-C:6 provides adequate authority for the State ofNew Hampshire to carry out its SIPobligations with respect to the 1997 and 2006 PMz,5 NAAQS. The State receives sections 103 and 105 grant funds through its Performance Partnership Grant alongwith required State matching funds to provide funding necessary to carry out New Hampshire's SIP16

requirements. In this action, EPA proposes to find that New Hampshire's resources meet the requirements of CAAsection 110(a)(2)(E)(i) . With regard to section 110(a)(2)(E)(ii), New Hampshire has a board, called the NHAir Resources Council, that approves permits or enforcement orders under the CAA . Congress added section 128 in the 1977 amendments as the result ofa conference agreement. Titled "State boards," section 128provides in relevant part: (a) Not later than the date oneyear after August 7, 1977, each applicable implementation plan shall contain requirements that- (1) Any board or body which approves permits or enforcement orders under [this Act] shall have at least a majority of members whorepresent the public interest and do not derive any significant portion oftheir income frompersons subject to permits or enforcement orders under [this Act], and (2) Any potential conflicts of interest by members of such board or body or the head ofan executive agency with similar powers be adequately disclosed. We note three relevant considerations for implementing section 128 . First, section 128 must be implemented through SIP-approved, federally enforceable provisions. Second, subsection 128(a)(1) applies only to states that have a board or body that is composed of multiple individuals and that, among its duties, approves permits or enforcement orders under the CAA . It does not apply in states that have no such multi-member board or body, and where instead a single head ofan agency approves permits or enforcement orders under the CAA . Third, subsection 128(a)(2), which requires that SIPs contain adequate provisions for disclosure of potential conflicts of interest, applies to all states, regardless ofwhether the State has a multimember board or body that approves permits or enforcement orders under the CAA . New Hampshire currently has a multi-member board or body, called the NHAir Resources Council, that approves permits or enforcement orders under the CAA . Thus, New

Hampshire currently is subject to the requirements ofsubsection 128(a)(1), as well as to the requirements of section 128(a)(2) . However, although the state has conflict-of-interest provisions in its general statutes, they have not been approved by EPA into the New Hampshire SIP

. In a letter datedJune 29, 2012, New Hampshire submitted its statute addressing conflict of interest for SIP approval . EPAhas not yet acted on this submittal . Therefore, we are proposing to conditionally approve the infrastructure submittals for New Hampshire with respect to section 110(a)(2)(E)(ii) . Finally, with respect to section 110(a)(2)(E)(iii), New Hampshire has not assigned responsibility for carrying out portions ofthe SIP to any local government, agency, or other instrumentality. New Hampshire's SIPtherefore meets the requirements for this element. 6 . Section 110(a)(2)(F) : Stationary source monitoring system This requires states to establish a systemto monitor emissions from stationary sources and to submit periodic emission reports.

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NHDES's response to this requirement : The State listed the following provisions to meet this element: RSA 125-C

:6authorizes the Commissioner to require owners or operators ofstationary sources to install, maintain, and use emission monitoring devices and to make periodic reports to the Commissioner on the nature and amounts ofemissions fromsuch stationary sources. The Commissioner shall have the authority to make such data available to the public and as correlated with any applicable emission standards. CHAPTEREnv-A800Testing and Monitoring Procedures establishes minimum testing and monitoring procedures, calculation procedures, standards, and requirements in orderto determine compliance with applicable State and Federal statutes and rules. This chapter includes the following parts: PART Env-A 802 Compliance Stack Testing for Stationary Sources PART Env-A803 NOx Reasonably Available Control Technology (RACT) Testing Procedures PART Env-A804Volatile Organic Compound Testing PART Env-A805 Capture Efficiency PART Env-A806Sulfur Content Testing of Fuels PART Env-A 807 Testing for Opacity of Emissions PART Env-A 808 Continuous Emission Monitoring PART Env-A 809Approval ofAlternate Methods CHAPTEREnv-A900Owner or Operator Recordkeeping and Reporting Obligations establishes the requirement that records be kept at sources which discharge air pollutants so that the emissions ofsuch pollutants may be readily calculated or estimated and reported to the division for the purposes ofdemonstrating compliance, compiling emission inventories, and developing air related strategic plans. This chapter includes the following parts: 

### PART Env-A902 Availability of Records PART Env-A 903 General Recordkeeping Requirements PART Env-A904 VOCEmission Statements Recordkeeping

Requirements PART Env-A905 NOx Emission Statements Recordkeeping

Requirements PART Env-A906 Additional Recordkeeping Requirements PART Env-A907 General Reporting Requirements PART Env-A908 VOCEmission Statements Reporting

Requirements PART Env-A909 NOx Emission Statements Reporting

Requirements PART Env-A 910 Additional Reporting Requirements PART Env-A 911 Recordkeeping and Reporting Requirements for

Permit Deviations PART Env-A912 Alternative Time Periods18

PART Env-A902, Env-A 902.01(d) reads: "Subject to Env-A 103, all data submitted to the division, including emission data and applicable emission limitations, shall be made available to the public." Env-A 103 provides a mechanism by which aperson who submits information to the director can protect confidential information, to the extent permitted under RSA 125-C

:6, VII . Under RSA 125-C:6, VII, emission data is not considered confidential information. EPAanalysis: EPAhas reviewed the above laws and regulations and has determined that NH DES's submittals meet the requirements of CAASection 110(a)(2)(F) . The regulations referenced above have been approved into the New Hampshire SIP (see Appendix) . 7 . Section 110(a)(2)(G) : Emergency power This requires states to provide for authority to address activities causing imminent and substantial endangerment to public health, including contingency plans to implement the emergency episode provisions in their SIPs. NHDES's response to this -requirement : The State listed the following provisions to meet this element. In addition, in their April 2008 submittal, NHDES noted that the State expects to be classified as a Priority III region and, therefore, an emergency episode plan for PM2 .5 is not required. RSA 125-C

: 4,1. states in part: "The commissioner shall adopt rules under RSA 541-A, relative to: (c) procedures to meet air pollution emergencies, as authorized by RSA 125-C:9" . RSA 125-C:9Authority of the Commissioner in Cases of Emergency. states: "Whenever the commissioner finds that an air pollution emergency exists requiring immediate action to protect the public health, welfare, or safety, he maywith consent ofthe governor and council issue an order reciting the existence ofsuch an emergency and requiring that such action be taken as he deems necessary to meet the emergency. Such order shall be effective immediately. Any person to whom

such an order is directed shall comply therewith. The commissioner shall rescind or abate such order as soon as the emergency ceases to exist." EPAanalysis : For PM2,5, EPA's guidance dated September 25, 2009provides clarification that states that have air quality control regions identified as either Priority I, Priority IAor Priority II by the "Prevention ofAir Pollution Emergency Episodes" rules at 40 CFR 5 1 .150 must develop emergency episode contingency plans. The guidance recommends that until EPAestablishes significant harmlevels (SHL) for PM2 .5, states should establish their own SHL levels based on EPA's February 12, 2007 issue paper on setting priority and emergency action levels and also consider the recommended levels set forth in Attachment B ofthe September 25, 2009 guidance. States would be required to develop emergency episode plans for any area that has monitored and recorded 24-hour PM2 .5 levels greater than 140 .4 Pg/m3 since 2006. AState that has never exceeded this level since 2006 is considered to be Priority III in accordance with the guidance,19

may certify that it has appropriate general emergency powers to address PM2 .5 -related episodes, and is not required to adopt specific emergency episode plans at this time, given the existing monitored levels. New Hampshire's April 2008 submittal states that they expect to be classified as a Priority III region and, therefore, an emergency episode plan for PM2 .5is not required. Air-quality monitors in New Hampshire show

that PM2 .5 levels for the past three years are below the 140.5 ~Lg/m3 threshold. New

Hampshire has, therefore, met the requirements of CAASection 110(a)(2)(G) for both the 1997 and 2006 standards. 8 . Section 110( a)(2)(H) : Future SIPrevisions This requires states to have the authority to revise their SIPs in response to changes in the NAAQS, availability of improved methods for attaining NAAQS, or in response to an EPA finding that the SIP is substantially inadequate. NH DES's response to this requirement: The State listed the following provisions to meet this element: RSA 125-C

:6. Powers and Duties of the Commissioner . - In addition to the other powers and duties granted herein, the commissioner shall have and may exercise the following powers and duties: II . Developing a comprehensive program and provide services for the study, prevention and abatement ofair pollution. In addition to this legal authority, CHAPTEREnv-A200Procedural Rules, PART Env-A 204 Public Hearings on the State Implementation Plan provides procedures for SIPhearings. EPAanalysis: New

Hampshire's submittals for both the 1997 and 2006 PM2,5 standards affirm that the SIP may be revised should EPAfind that the plan is substantially inadequate to attain a standard or to comply with any additional requirements under the CAA . Therefore, the state's submittals meet the requirements of CAASection 110(a)(2)(H) . 9 . Section 110(a)(2)(I) : Areas designated nonattainment and meet the applicable requirements of Part D . As noted above, this action does not address infrastructure elements related to section 110(a)(2)(1) . 10 . Section 110(a)(2)(J) : Consultation with government officials; Public notification; and PSDandvisibility protection Section 110(a)(2)(J) requires states to provide a process for consultation with local governments and Federal Land Managers carrying out NAAQS implementation requirements pursuant to Section 121 relating to consultation. Section 127 requires that the State notify the public ofany20

NAAQS exceedences, advise the public of health hazards associated with such pollution, and include measures to enhance public awareness of measures that can be taken to prevent exceedances. Section 110(a)(2)(J) also requires states to meet applicable requirements of Part Crelated to prevention of significant deterioration and visibility protection. EPA interprets this section 110 provision on visibility as not being "triggered" by a new NAAQS because the visibility requirements in part Care not changed by a new NAAQS. NHDES's response to this requirement: The State listed the following provisions to meet this element: RSA 125-C

:6 Powers and Duties of the Commissioner. - In addition to the otherpowers and duties granted herein, the commissioner shall have and may exercise the following powers and duties: V . Advising, consulting, and cooperating with the cities and towns and other agencies ofthe state, federal government, interstate agencies, and other affected agencies or groups in matters relating to air quality; VI . Encouraging local units to promote cooperation by the people, political subdivisions, industries, and others in preventing and controlling air pollution; XIII . Coordinating and regulating the airpollution control programs of political subdivisions of the State and entering agreements with said subdivisions to plan or implement programs for the control and abatement ofair pollution. Chapter Env-A600Statewide Permit System PART Env-A621 Permit Notice and Hearing Procedures : Temporary Permits and Permits to Operate specifies the public notice and hearing procedures that apply to all applications for the issuance of, amendment to, or denial of temporary permits and permits to operate. PART Env-A 622 Permit Notice and Hearing Procedures : Title VOperating Permits specifies the public notice and hearing procedures that apply to all applications for the issuance, significant modification to or renewal ofTitle Voperating permits files with the department and all requests for Title Voperating permit re-openings. Chapter Env-A 1500 Conformity provides for consultation with local agencies and planning commissions with respect to transportation conformity and the conformity offederal actions related to transportation projects. RSA 125-C:6 Powers and Duties of the Commissioner . - In addition to the other powers and duties granted herein, the commissioner shall have and may exercise the following powers and duties: IV. Collecting and disseminating the results ofstudies relating to air quality; V . Advising, consulting, and cooperating with the cities and towns and other agencies ofthe state, federal government, interstate agencies, and other affected agencies or groups in matters

### 21

relating to air quality; VI . Encouraging local units to promote cooperation by the people, political subdivisions, industries, and others in preventing and controlling air pollution. RSA 125-C

:12Administrative Requirements states: " . . .II . The commissioner shall act upon a permit application within a reasonable period of time. Prior to such action, the commissioner shall provide notice ofthe application by publication in at least one newspaper of general circulation. The commissioner shall also provide an opportunity for a hearing to interested persons. The requirement ofpublic notice and hearing shall not apply to such devices or sources that will have, in the opinion ofthe commissioner, an insignificant effect on air quality. The commissioner may adopt rules relative to the requirements of public notice and hearing for such devices or sources. 111. Any person aggrieved by the decision ofthe commissioner granting or denying a permit application maywithin 10 days of the decision file an appeal with the air resources council . The air resources council shall hold a hearing on any such appeal promptly, and shall thereafter issue a decision upholding, 

### modifying or abrogating the commissioner's decision. . ." In implementing this authority, NHDES issues press releases in advance of unhealthful PM2 .5 and ozone days. NHDES also posts warnings on its website, advising people what they can do help prevent NAAQS exceedances and avoid adverse health effects of poor quality air days. RSA 125-C:6 Powers and Duties of the Commissioner. - In addition to the other powers and duties granted herein, the commissioner shall have and may exercise the following powers and duties: XV . Implementing a program of PSDfor ambient air quality by establishing air quality increments, limiting the maximum allowable increases in the amounts ofair pollutants provided such increments are not less stringent than those specified in the CAA, amendments thereto, and in regulations promulgated there under; CHAPTEREnv-A 600Statewide Permit System, Part Env-A619 (formerly Env-A 623) Prevention of Significant Deterioration (PSD) ofAir Quality Permit Requirements addresses the prevention ofsignificant deterioration ofair quality andvisibility protection, in compliance with the requirements of 40 CFR51 .166, 40CFR52.21 and RSA-125-C . EPAanalysis: EPAfinds that New

Hampshire's 110(a) submittals meets the requirements of CAASection 110(a)(2)(J) for consultation with government officials. NH DES is one ofthe State partners participating in EPA's AIRNOW and Enviroflash Air Quality Alert programs. (See www .airnow .gov) NHDES's submittals meet the requirements of CAASection 110(a)(2)(J) for public notification.

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NH DES referred to its Title Vregulations in its submission. However, Title Vprovisions are generally not relevant to Section 110SIPs (except for the fees element discussed later in this document) . Regarding the requirement in section 110(a)(2)(J) that the SIP meet the applicable requirements of part Coftitle I ofthe CAA, EPA has evaluated this requirement in the context ofsection 110(a)(2)(C) with respect to permitting (see discussion under (3) of this TSD) . New Hampshire's PSDprovisions for air-quality permits are established in Env-A619 . The most recent version ofthe state's Statewide Permit System(Env-A 600) was approved into the NH SIP on February 6, 2012 (77 FR 5700) . New Hampshire has authority to issue PSDpermits and enforce themunder its approved PSDSIP . EPA recently approved changes to New Hampshire's PSDprogram(77 FR 5700) reflect changes in the federal PSDprogram related to the permitting ofgreenhouse gas emission (76 FR26933) . This PSDprogram takes advantage ofthe Tailoring Rule thresholds for PSDapplicability by relying on the GHGPSDNarrowing Rule. However, as discussed under (3) and (4) above (i .e., pertaining to Sections I 10(a)(2)(C)-(D)), New Hampshire's EPA-approved PSDprogramdoes not yet meet requirements ofthe two major source PM2

.5 PSDrules, 73 FR28321 and 75 FR64864, or implement the 2006 PM2 .5 NAAQS itself. Therefore, we are proposing to conditionally approve the state's 110(a) submittals for the portion ofSection 110(a)(2)(J) that relates to PSD . With regard to the applicable requirements for visibility protection, EPArecognizes that states are subject to visibility and regional haze program requirements under part Cofthe CAA . In the event of the establishment ofa new NAAQS, however, the visibility and regional haze program requirements under part Cdo not change. Thus, we find that there is no new visibility obligation triggered under section 110(a)(2)(J) when a new NAAQS becomes effective. New Hampshire submitted a Regional Haze SIP to EPAon January 29, 2010, with supplemental submittals on January 14, 2011, and August 26, 2011, that addresses regional haze for the first planning period from2008 through 2018. On February 28, 2012 (77 FR 11809) . EPAproposed approval of New

Hampshire's Regional Haze SIP. EPAis required by consent decree to take final action by July 13, 2012. As a result ofthe above analysis, EPAis proposingto approve New Hampshire's 110(a) submittals as meeting the requirements of CAASection 110(a)(2)(J) for consultation with government officials and public notification, and to conditionally approve the submittals for the portion ofSection 110(a)(2)(J) that relates to PSD . 11 . Section 110(a)(2)(K) : Air quality and modeling/data This requires that SIPs provide for performing air-quality modeling for predicting effects on air quality ofemissions fromany NAAQS pollutant and submission of such data to EPAupon request.

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NH DES's response to this requirement: The State listed the following provisions to meet this element: CHAPTER Env-A600Statewide Permit System, Part Env-A 606Air pollution Dispersion Modeling Impact Analysis Requirements, eff . 4-26-03, specifies the air pollution dispersion modeling impact analysis requirements that shall apply to owners and operators ofcertain sources and devices in order to demonstrate compliance with the New Hampshire State Implementation Plan, RSA 125-C, RSA 125-I, and any rules adopted thereunder . EPAanalysis : Areviewof NH DES laws and regulations shows that NHDES has broad powers to conduct air quality modeling. Therefore, New Hampshire's infrastructure submittals meet the requirements of CAASection 110(a)(2)(K) . 12. Section 110(a)(2)(L) : Permitting fees This requires SIPs to require each major stationary source to pay permitting fees to cover the cost of reviewing, approving, implementing and enforcing a permit, until such time as the SIP fee requirement is superseded by EPA's approval ofthe state's Title Voperating permit program . NH DES's response to this requirement: The State listed the following provisions to meetthis element : RSA 125-C

:4 Rulemaking Authority; Subpoena Power states: "I . The commissioner shall adopt rules under RSA541-A, relative to: . . . (i) Fees for permit application and review, as authorized by RSA 125-C :12, IV. . ." RSA 125-C

:12 Administrative Requirements states: " . . .IV. As a condition of any permit required, the commissioner may require payment ofa fee to cover the reasonable costs of reviewing and acting upon the application for a permit and of implementing or enforcing the terms and conditions ofa permit . The applicant shall pay any cost or expense associated with public notices or notifications in the permit process. The commissioner shall adopt rules relative to a fee schedule for applicants and the collection offees under the schedule. All fees and monetary grants, gifts, donations, or interest generated by these funds shall be deposited with the State treasurer in a special nonlapsing fund to be knownas the air resources fund and shall be continually appropriated to the department for the administration ofthis chapter. V . As a condition of any permit to operate under RSA 125- C:11, I-a, the commissioner may require payment ofa fee to cover the reasonable costs of reviewing and acting upon the application for a permit to operate, permit renewal, and permit modification ofan affected source, and of implementing or enforcing the terms and conditions of an affected source permit . The applicant shall pay any cost or expense associated with public notices or notifications in the permit process. The commissioner shall adopt rules relative to a fee schedule for applicants and the collection offees under the schedule. Funds collected by the commissioner under this paragraph frompermit fees shall be deposited in the air resources fund, shall be accounted for24

separately, and shall be used by the commissioner for the establishment and operation ofa statewide systemof permitting forthe construction, operation, or modification of any new or existing affected source." CHAPTEREnv-A700 Permit Fee System : The purpose ofthis chapter is to establish a fee systemrequiring the payment offees to cover the reasonable direct and indirect costs of: reviewing and acting upon applications for the issuance of, amendment to, modification to, renewal of, or any combination ofthe foregoing actions to a temporary permit, State permit to operate, or Title Voperating permit ; implementing and enforcing the terms and conditions of any temporary permit, State permit to operate, or Title Voperating permit ; administering the State permit program ; and developing, implementing and administering the Title Voperating permit program . In particular, Env-A705 establishes the emission fee programfor Title Vand non- Title Vsources. EPAanalysis: EPA's full approval ofNew Hampshire's title Vprogram became effective on November 23, 2001 . Before EPAcan grant full approval, a state must demonstrate the abilityto collect adequate fees. New

Hampshire's title Vprogramincluded a demonstration the state will collect a fee fromtitle Vsources above the presumptive minimumin accordance with 40CFR 70.9(b)(2)(i), New

Hampshire collects sufficient fees to administer the title Vpermit program . NHDES's submittal meets the requirements of CAASection 110(a)(2)(L) . 13. Section 110(a)(2)(M) : Consultation/participation by affected local entities This requires states to provide for consultation and participation in SIPdevelopment by local political subdivisions affected by the SIP . 

### NHDES's response to this requirement : The State listed the following provisions to meet this element: RSA 125-C:6 Powers and Duties of the Commissioner states: "In addition to the other powers and duties granted herein, the commissioner shall have and may exercise the following powers and duties: . . . V . Advising, consulting, and cooperating with the cities and towns and other agencies ofthe state, federal government, interstate agencies, and other affected agencies or groups in matters relating to air quality; VI . Encouraging local units to promote cooperation by the people, political subdivisions, industries, and others in preventing and controlling air pollution in the state; VI-a. Encouraging the recycling ofwaste oil by allowing qualified marketers to sell, and qualified facilities to burn, a mixture that consists of at least 90percent virgin No. 6 oil and the remainder complyingwith the used fuel oil specifications in 40 CFR, section 279.11, table 1 ; . . . XIII . Coordinating and regulating the air pollution control programs ofpolitical subdivisions of the State and entering agreements with said subdivisions to plan or implement programs for the control and abatement ofair pollution. . ."

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EPAanalysis : Based upon EPA's review ofthe April 2008 and September 2009 submittals, New Hampshire's public participation requirements and procedures fulfill the requirements for consultation with local political subdivisions affected by the plans and, therefore, meet the requirements of CAA Section 110(a)(2)(M) . Conclusions and Recommended Agency Action EPA's analysis ofNew Hampshire's infrastructure submittals for the 1997 and 2006 PM2 .5 NAAQS concludes that New Hampshire's submittals meet the requirements for section 110(a)(2)(B), (C) (enforcement program), prongs 1 and 2of (D)(i), (D)(ii), (E)(i), (E)(iii), (F), (G), (H), (J) (consultation), (J) (public notification), (K), (L), and (M) . We recommend that a rulemaking be prepared proposing full approval of these elements. 

### Our review

also indicates that the submittals do not meet all requirements ofsection 110(a)(2)(A) and E(ii) (state boards and conflict of interest provisions), as well as (C), prong 3 of (D)(i), and (J) as they relate to the state's PSDprograms. However, New Hampshire has committed to addressing the noted deficiencies . Therefore, we recommend that a rulemaking be prepared proposing conditional approval of these elements.26 Appendix EPA-Approved New

Hampshire Air Quality Regulations for PM2,5 and OtherAir Pollutants State Citation Title / Subject State Effective EPA Approval Explanations Date Date Env-A 100 Organizational 12/21/2010 2/6/2012 Added definitions "Carbon dioxide PDF (10 pp, Rules: Definitions . 77 FR 5700 equivalent emissions (C02e)", 65K) "Greenhouse gases", and "Major source" . Note: Definitions which have been Incorporated By Reference into the NewHampshire State Implementation Plan are numbered consecutively by EPA, and do not necessarily correspond to the State's assigned definition number in the NewHampshire State Regulation Env-A 100. It is NewHampshire's practice to renumber their definitions in EnvA 101 when definitions are added or deleted fromthe State Regulation. Env-A 200 Procedural Rules. 07/23/2001 10/28/2002 Parts Env-A 206; 208; and (PDF) (14 pp, 67 FR 65710 Sections Env-A 209.01 through 139K) 209.04 are not part of the approved SIP. Env-A 300 Ambient Air 04/21/1989 O8/19/1994 Part Env-A 304 is not part of the PDF (4 pp, Quality Standards. 59 FR 42766 approved SIP. 114K) Env-A 400 Sulfur Content 12/24/1990 08/14/1992 Section Env-A 405.05 (c) and (d) ; PDF (4 pp, Limits in Fuels. 57 FR 36603 and Part 456 are not part of the 1 13K) SIP. Env-A 600 Statewide Permit 12/21/2010 2/6/2012 Added section Env-A 619.03(b)- PDF (27 pp, System . 77 FR 5700 (e) . 105K) Env-A 700 Permit Fee System . 12/24/1990 08/14/1992 Approved Parts Env-A 701 PDF (5 pp, 57 FR 36603 through 705. 11 7K) Env-A 800 Testing and 08/21/1995 03/10/1998 Approved Parts Env-A 801

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PDF (39 pp, Monitoring 63 FR 11600 through 807. 257K) Procedures. Env-A 900 Owner or Operator 08/21/1995 03/10/1998 Approved Sections Env-A 901 PDF (16 pp, Obligations . 63 FR 11600 through 903. 143K) Env-A 1000 Prevention, 05/19/1989 08/19/1994 Approved Part Env-A 1001 . PDF (3 pp, Abatement, and 59 FR 42766 111 K) Control of Open

Source Air Pollution. Env-A 1200 Prevention, 08/21/1995 07/23/2002 Approved Parts Env-A 1201 PDF (144 pp, Abatement, and 67 FR 48033 through 1208; and 1211 . 657K) Control of Approval of 1201 .05 shall not be

Stationary Source construed to supersede New Air Pollution. Source Performance Standards ; National Emission Standards for Hazardous Air Pollutants; and the regulations controlling emissions frommajor newor modified stationary sources in attainment and non-attainment areas. Env-A 1 500 Conformity of 04/19/1996 OS/16/1999 Approved Part Env-A 1502. PDF (2 pp, General Federal 64 FR 44417 107K) Actions. Env-A 3200 NOx Budget 07/27/1998 11/14/2000 Approved Parts Env-A 3201 PDF (30 pp, Trading Program . 65 FR 68078 through 3218. 237K) Env-A 3600 National Low 07/21/1999 03/09/2000 Approved Parts Env-A 3601 PDF (2 pp, Emission Vehicle 65 FR 12476 through 3603. 108K) (National LEV)

Program . NHCAR, Emission 11/17/1998 01/10/2001 Part Saf-C 3221A "Emission

Amendments to 66 FR 1868 Amendments to Official Motor Part Saf-C Official Motor Vehicle Inspection Requirements" 3221 A (PDF) Vehicle Inspection adopted on November 17, 1998. (2 pp, 109K) Requirements . NHCAR, Roadside Diesel 11/17/1998 01/10/2001 Part Saf-C 5800 "Roadside Diesel

Opacity Inspection 66 FR 1868 Opacity Inspection ProgramRules" Part Saf-C Program Rules. adopted on November 17, 1998. 5800 (PDF) (9 pp, 125K)