# T E C H N I C A L 

# S U P P O R T 

# D O C U M E N T

Department of the Environment 

## Amendments to Prevention of Significant Deterioration (PSD) Requirements
under COMAR 26.11.01.01 and 26.11.06.14

Purpose of the Amendments

The purpose of this action is to:

(1) update the adoption of the U.S. Environm ental Protection Agency (EPA) Prevention of Significant Deterioration (PSD) federal re quirements found under 40 CFR Part 52.21 to include the changes in the July 1, 2008 edition of the Code of Federal Regulations (CFR); and

(2) clarify the meaning of the terms “Administr ator” and “Reviewing Authority” as used in 40
CFR Parts 52.21 and 52.1116.

These amendments will be submitted to EPA for approval as part of Maryland's State Implementation Plan.

Background

The PSD program is a federal program that applies to new major stationary sources 1 or major
modifications 2 at existing sources for pollutants where th e area in which the source is located is
in "attainment" or "unclassifiable" 3 with the National Ambient Air Qual ity Standards (NAAQS)

. The PSD program allows for growth in these areas by limiting emissions of air pollutants to prevent significant deteri oration of air quality.

PSD Requirements

The PSD program requires installation of the "Best Available Control Technology (BACT)"

, air quality impact analyses and public involvement.

PSD requirements do not prevent sources from in creasing emissions. Instead, they are designed

to:

1 Major Stationary Sources: This term, as defined in the Prevention of Significant Deterioration program, means any stationary pollutant source with potential to emit more than either 100 or 250 tons per year, depending upon the source category.

2 Major Modification: This term is used to define modifications of existing major stationary sources of emissions with respect to Prevention of Significant Deteriora tion and New Source Review under the Clean Air Act.

3 There are no "unclassifiable" areas in Maryland.

11. protect public health and welfare;
2. preserve, protect, and enhance the air quality in national parks, national wilderness areas, national monuments, national seashores, and other areas of special national or regional natural, recreational, scenic, or historic value;
3. insure that economic growth will occur in a manner consistent with the preservation of existing clean air resources; and
4. assure that any decision to permit increased ai r pollution in any area to which this section applies is made only after careful evaluation of all the consequences of such a decision and after adequate procedural opportunities for informed public participation in the decision making process.

Best Available Cont rol Technology (BACT)

BACT is an emissions limitation which is base d on the maximum degree of control that can be achieved. It is a case-by-case decision that considers energy, environmental, and economic impact. BACT can be add-on control equipment or modification of the production processes or methods. This includes fuel cleaning or treatm ent and innovative fuel combustion techniques. BACT may also be an equipment design, work pract ice, or operational standard if imposition of
an emissions standard is infeasible.

Air Quality Analysis Requirement

The main purpose of the air quality analysis is to demonstrate th at new emissions emitted from a proposed major stationary source or major modi fication, in conjunction w ith other applicable emissions increases and decreases from existing sources, will not cause or contribute to a violation of any applicable NAAQS or PSD increment.

Generally, the analysis will involve (1) an assess ment of existing air quality, which may include ambient monitoring data and air quality dispersion modeling resu lts; and (2) predictions, using dispersion modeling, of ambient concentrations that will result from the applicant's proposed project and future growth a ssociated with the project.

Additional Impacts Analysis Required

The additional impacts analysis assesses the im pacts of air, ground and water pollution on soils, vegetation, and visibility caused by any increase in emissions of any regulated pollutant from the source or modification under review, and from associated growth. Associated growth is industrial, commercial, a nd residential growth that will o ccur in the area due to the source.

PSD Increment

PSD increment is the amount of air pollution an area is allowed to increase. PSD increments prevent the air quality in clean areas from deteriorating to the level set by the NAAQS. The NAAQS is a maximum allowable concentration "ceiling." A PSD increment, on the other hand,
is the maximum allowable increase in concentration that is allo wed to occur above a baseline concentration for a pollutant. Th e baseline concentration is defi ned for each pollutant and, in

4/21/2009 3:26 PM 2general, is the ambient concentration existing at the time that the first complete PSD permit application affecting the area is submitted. Signifi cant deterioration is said to occur when the amount of new pollution would exce ed the applicable PSD increment. It is important to note, however, that the air qualit y cannot deteriorate beyond the concentration allowed by the applicable NAAQS, even if not all of the PSD increment is consumed.

Maryland's PSD Requirements

The federal PSD regulations have been incorp orated by reference under the Code of Maryland Regulations (COMAR) since 1981. The Department updates the COMAR reference to the PSD regulations each year or when the federal re gulations undergo significant amendments. EPA has amended the federal regulations since the last upd ate to the 2007 edition of the CFR. Therefore, it is necessary to update COMAR's reference to include the amendments reflected in the July
2008 CFR.

Sources Affected

Major sources in "attainment" areas of the Stat e that emit any pollutant subject to regulation under the Clean Air Act (NOx, SOx, particulate matter, etc.) are a ffected. A new major source is subject to PSD requirements if it is within a liste d source category with proj ected emissions of at least 100 tons per year (listed under COMAR 26.11.01.01B(37(a); or a non-listed source with emissions of at least 250 tons per year of any regulated criteria pollutant . Additionally, lower emission thresholds apply to existing majo r sources undergoing a major modification.

EPA Designation of Maryland Counties for the 8-hour Ozone Standard:

All counties in Maryland are designated as "attainment" counties for the 8-hour ozone standard except the following:

• Baltimore Area: Anne Arundel, Baltimore, Ca rroll, Harford, Howard, Baltimore City • Washington D.C. area: Calvert, Charle s, Frederick, Montgomery, Prince George's • Cecil County • Kent and Queen Anne's (In Maintenance)

EPA Designation of Maryland Counties for the Annual PM2.5 Standard:

All counties in Maryland are designated as "attainment" coun ties for the annual PM2.5 standard except the following:

• Baltimore Area: Anne Arundel, Baltimore, Ca rroll, Harford, Howard, Baltimore City • Washington D.C. area: Charles, Frederick, Montgomery, Prince George's • Washington County

Changes made to the PSD requirements

4/21/2009 3:26 PM 34/21/2009 3:26 PM 4 (from July 1, 2007 - June 30, 2008 editions of the CFR)

Since the July 1, 2007 edition of the CFR, EPA ma de the following changes to the PSD program, which were incorporated into th e July 1, 2008 edition of the CFR:

EPA amended the definition of “major stationa ry source” in 40 CFR 52.21 (effective July 2, 2007) to exclude ethanol production facilities from the requirement to include fugitive emissions in determining whether chemical process plants are major sta tionary sources. 72 FR 24066 (May 1, 2007).

EPA amended 40 CFR52.21(r)(6) (effective Janu ary 2, 2008) to clarif y the recordkeeping requirements for a modification where there is a “reasonable possibility” that the change would result in a significant increas e of any regulated New Source Review (NSR) pollutant. 72 FR 72607 (December 21, 2007).

Expected Emissions Reductions

This regulation update will not reduce emissions from existing sources.

Comparison to Federal Standards

There is a corresponding federal standard to this proposed acti on, but the proposed action is not more restrictive or stringent.

Estimate of Economic Impact

This proposed action has no economic impact in and of itself, because it merely identifies EPA’s recent amendments to its PSD regulations. EPA’ s PSD program is a federal program and EPA already accounted for the program's impact on al l the affected sources on a nationwide basis.

There is no additional impact on af fected sources or the Department due to this proposed action.

Economic Impact on Small Businesses

This action will have no economic impact on sma ll businesses because the affected sources are
not “small businesses” as defined in State G overnment Article, §2-1505.2 , Annotated Code of Maryland.

L:\AQPlanning and Monitoring\Regulation Development Division\PSD\2009 PSD update\T SD\TSD for 2009 PSD amendments.doc