```

[Federal Register Volume 75, Number 78 (Friday, April 23, 2010)]
[Proposed Rules]
[Pages 21197-21207]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-9463]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R02-OAR-2010-0161, FRL-9141-5]

Approval and Promulgation of Implementation Plans; Implementation 
Plan Revision; State of New Jersey

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) proposes to approve 
a request from the State of New Jersey to revise its State 
Implementation Plan (SIP) to incorporate amendments to Subchapter 4 
``Control and Prohibition of Particles from Combustion of Fuel,'' 
Subchapter 10 ``Sulfur in Solid Fuels,'' Subchapter 16 ``Control and 
Prohibition of Air Pollution by Volatile Organic Compounds,'' 
Subchapter 19 ``Control and Prohibition of Air Pollution from Oxides of 
Nitrogen,'' and related amendments to Subchapter 21 ``Emission 
Statements.'' The amendments relate to the control of oxides of 
nitrogen (NOX), sulfur dioxide (SO2), particles 
and volatile organic compounds (VOCs) from stationary sources. This 
proposed SIP revision consists of control measures needed to meet the 
State's commitment to adopt additional reasonably available control 
technology (RACT) rules that address RACT requirements for the 1997 
national ambient air quality standards for ozone. Additionally, the 
proposed SIP revision includes control measures that will help the 
State meet the national ambient air quality standards for fine 
particles.
    The intended effect of this proposed rule is to approve the State 
control strategy, which will result in emission reductions that will 
help achieve attainment of the national ambient air quality standards 
for ozone and fine particles required by the Clean Air Act (the Act).

DATES: Comments must be received on or before May 24, 2010.

ADDRESSES: Submit your comments, identified by Docket ID number EPA-
R02-OAR-2010-0161, by one of the following methods:
    http://www.regulations.gov: Follow the on-line 
instructions for submitting comments.
     E-mail: Werner.Raymond@epa.gov.
     Fax: 212-637-3901.
     Mail: Raymond Werner, Chief, Air Programs Branch, 
Environmental Protection Agency, Region 2 Office, 290 Broadway, 25th 
Floor, New York, New York 10007-1866.
     Hand Delivery: Raymond Werner, Chief, Air Programs Branch, 
Environmental Protection Agency, Region 2 Office, 290 Broadway, 25th 
Floor, New York, New York 10007-1866. Such deliveries are only accepted 
during the Regional Office's normal hours of operation. The Regional 
Office's official hours of business are Monday through Friday, 8:30 to 
4:30 excluding Federal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R02-OAR-
2010-0161. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI or otherwise protected through www.regulations.gov 
or e-mail. The http://www.regulations.gov Web site is an ``anonymous 
access'' system, which means EPA will not know your identity or contact 
information unless you provide it in the body of your comment. If you 
send an e-mail comment directly

[[Page 21198]]

to EPA without going through http://www.regulations.gov your e-mail 
address will be automatically captured and included as part of the 
comment that is placed in the public docket and made available on the 
Internet. If you submit an electronic comment, EPA recommends that you 
include your name and other contact information in the body of your 
comment and with any disk or CD-ROM you submit. If EPA cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, EPA may not be able to consider your comment. Electronic 
files should avoid the use of special characters, any form of 
encryption, and be free of any defects or viruses. For additional 
information about EPA's public docket visit the EPA Docket Center 
homepage at http://www.epa.gov/epahome/dockets.htm.
    Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in http://www.regulations.gov or in hard copy at the Environmental 
Protection Agency, Region II Office, Air Programs Branch, 290 Broadway, 
25th Floor, New York, New York 10007-1866. EPA requests, if at all 
possible, that you contact the individual listed in the FOR FURTHER 
INFORMATION CONTACT section to view the hard copy of the docket. You 
may view the hard copy of the docket Monday through Friday, 8 a.m. to 4 
p.m., excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Paul Truchan (truchan.paul@epa.gov) 
concerning Subchapters 16 and 21, Anthony (Ted) Gardella 
(gardella.anthony@epa.gov) concerning Subchapter 19, and Kenneth 
Fradkin (fradkin.kenneth@epa.gov) concerning Subchapters 4 and 10, at 
the Air Programs Branch, Environmental Protection Agency, 290 Broadway, 
25th Floor, New York, New York 10007-1866, (212) 637-4249.

SUPPLEMENTARY INFORMATION: For detailed information on New Jersey's 
proposed SIP revision see the Technical Support Document (TSD), 
prepared in support of today's action. The TSD can be viewed at http://www.regulations.gov.
    The following table of contents describes the format of this 
rulemaking:
I. EPA's Proposed Action
    A. What Action Is EPA Proposing?
    B. Why Is EPA Proposing This Action?
    C. What Are the Clean Air Act Requirements for RACT?
    D. How Did New Jersey Address the RACT Requirements for the 8-
Hour Ozone Standard?
    E. When Were New Jersey's RACT Requirements Proposed and 
Adopted?
    F. What Is EPA's Evaluation of New Jersey's Subchapter 4--
``Control and Prohibition of Particles From Combustion of Fuel?''
    G. What Is EPA's Evaluation of New Jersey's Subchapter 10--
``Sulfur in Solid Fuels?''
    H. What Is EPA's Evaluation of New Jersey's Subchapter 16: 
``Control and Prohibition of Air Pollution by Volatile Organic 
Compounds?''
    I. What Is EPA's Evaluation of New Jersey's Subchapter 19 
``Control and Prohibition of Air Pollution From Oxides of 
Nitrogen?''
    J. What Is EPA's Evaluation of New Jersey's Subchapter 21--
``Emission Statements?''
II. Conclusion
III. Statutory and Executive Order Reviews

I. EPA's Proposed Action

A. What Action Is EPA Proposing?

    On April 21, 2009 New Jersey submitted a proposed State 
Implementation Plan (SIP) revision that includes amendments to New 
Jersey Administrative Code, Title 7: Chapter 27 (NJAC 7:27) Subchapter 
4 ``Control and Prohibition of Particles from Combustion of Fuel;'' 
Subchapter 8 ``Permits and Certificates for Minor Facilities (and Major 
Facilities Without an Operating Permit);'' Subchapter 10 ``Sulfur in 
Solid Fuels;'' Subchapter 16 ``Control and Prohibition of Air Pollution 
by Volatile Organic Compounds;'' Subchapter 19 ``Control and 
Prohibition of Air Pollution from Oxides of Nitrogen;'' and Subchapter 
21 ``Emission Statements.''
    EPA proposes to approve the state amendments to Subchapter 4 and 
Subchapter 10 as revisions to the SIP. These amendments relate to the 
control of particle and sulfur dioxide emissions and will help the 
State make advances towards reducing regional haze and meeting the 
national ambient air quality standards (NAAQS) for fine particles.
    EPA will review Subchapter 8 and will address the approvability of 
all Subchapter 8 amendments in a future action.
    EPA proposes to approve, as revisions to the New Jersey ozone SIP, 
the state-adopted amendments to Subchapter 16 and Subchapter 19, and 
related amendments to Subchapter 21, each adopted by New Jersey on 
March 20, 2009, and submitted to EPA on April 21, 2009. New Jersey 
amended Subchapter 16 and Subchapter 19 to meet the State's commitment 
to adopt additional RACT rules for 12 of 13 source categories (see 74 
FR 2945, January 16, 2009), which will result in additional emission 
reductions of NOX and VOCs. EPA proposes that New Jersey's 
state-adopted Subchapters 16 and 19, and the related amendments to 
Subchapter 21, are fully approvable as SIP-strengthening measures for 
New Jersey's ozone SIP. The amendments to Subchapters 16, 19 and 21 in 
New Jersey's submittal meet the State's commitment to adopt additional 
RACT control measures for 12 of 13 source categories to achieve 
additional emission reductions of NOX and VOCs to attain the 
8-hour ozone standard. The one remaining source category, adhesives and 
sealants, will be addressed in a separate rulemaking.

B. Why Is EPA Proposing This Action?

    EPA is proposing this action to:
     Give the public the opportunity to submit comments on 
EPA's proposed action;
     Approve control measures which reduce NOX and 
VOC emissions, a precursor of ozone formation, to help attain the NAAQS 
for ozone;
     Further New Jersey's and EPA's RACT requirements under the 
Clean Air Act (the Act); and
     Make New Jersey's regulations for additional emission 
reductions federally enforceable and available for emission reduction 
credit in the SIP.
     Approve control measures that reduce particles, sulfur 
dioxide, and NOX emissions, to help attain the NAAQS for 
fine particles.
     Approve control measures that reduce regional haze.

C. What Are the Clean Air Act Requirements for RACT?

    Sections 172(c)(1), 182(b)(2) and 182(f) of the Act require 
nonattainment areas that are designated as moderate or above to adopt 
RACT. All of New Jersey is subject to this requirement since all 
counties in the State are located in either of two nonattainment areas 
that are classified as moderate ozone nonattainment areas for the 8-
hour ozone standard (40 CFR 81.331). In accordance with section 182(b), 
New Jersey must, at a minimum, adopt RACT level controls for sources 
covered by a Control Techniques Guidelines (CTG) document and for any 
major non-CTG sources.
    Section IV.G of EPA's Phase 2 implementation rule (70 FR 71612, 
November 29, 2005) (Phase 2 Rule) discusses the RACT requirements for 
the 1997 8-hour ozone standard. It states, in part, that where a RACT 
SIP

[[Page 21199]]

is required, SIPs implementing the 8-hour ozone standard generally must 
assure that RACT is met, either through a certification that previously 
required RACT controls represent RACT for 8-hour ozone implementation 
purposes or, where necessary, through a new RACT determination. The 
majority of counties in New Jersey were previously classified under the 
1-hour ozone standard as severe, while the remaining counties were 
subject to RACT as part of the Ozone Transport Region. New Jersey chose 
a uniform applicability level for RACT based on the severe 
classification which resulted in a statewide requirement for major 
sources of NOX and VOC to be defined as those having 
emissions of 25 tons per year or more of both VOC and/or 
NOX. Under the 8-hour standard, areas classified as 
moderate, the definition for major source is 50 tons per year for VOC 
and 100 tons per year for NOX. However, New Jersey's choice 
to retain the original 1-hour ozone limits statewide in New Jersey for 
purposes of the RACT analysis resulted in a more stringent evaluation 
of RACT. New Jersey's use of 25 tons per year for RACT is consistent 
with the anti-backsliding requirement of the Act. See Clean Air Act 
sections 110(l) and 193; and South Coast Air Quality Management Dist 
(SCAQMD) v. EPA, 472 F.3d 882 (D.C. Cir. 2006).

D. How Did New Jersey Address the RACT Requirements for the 8-Hour 
Ozone Standard?

    New Jersey submitted a RACT assessment in an August 1, 2007 
submission which was supplemented on December 14, 2007. The RACT 
submission from the State of New Jersey consisted of: (1) A 
certification that previously adopted RACT controls in New Jersey's SIP 
for 101 source categories that were approved by EPA under the 1-hour 
ozone standard are based on the currently available technically and 
economically feasible controls, and that they continue to represent 
RACT for 8-hour ozone implementation purposes; (2) a commitment to 
adopt new or more stringent regulations that represent RACT control 
levels for both specific source categories and specific sources; and 
(3) a negative declaration that for certain Control Techniques 
Guidelines and/or Alternative Control Techniques (ACTs) documents there 
are no sources within New Jersey or that there are no sources above the 
applicable thresholds.
    EPA reviewed the State's RACT analysis and agreed with the State's 
conclusions. On May 15, 2009 (74 FR 22837) EPA conditionally approved 
New Jersey's RACT SIP for the 8-hour ozone standard conditioned on the 
State's meeting its commitment to submit adopted RACT rules for 13 
source categories by April 1, 2009. To address this commitment, on 
March 20, 2009, New Jersey adopted the RACT rules for the following 12 
source categories: Alternative and facility-specific VOC and 
NOX emission limits; emulsified and cutback asphalt used for 
paving; asphalt pavement production plants; CTGs published in 2006: 
flat wood paneling, flexible packaging printing materials, and offset 
lithographic printing and letterpress printing; coal-fired boilers 
serving electric generating units (EGUs); oil and gas-fired boilers 
serving EGUs; High Electric Demand Day (HEDD) EGUs; industrial/
commercial/institutional boilers and other indirect heat exchangers; 
municipal solid waste incinerators; glass manufacturing furnaces; 
sewage sludge incinerators; and VOC stationary storage tanks. The 
industrial adhesives and sealants source category (13th) was adopted on 
October 30, 2008 and submitted as a SIP revision on April 9, 2009. EPA 
will propose action on the adhesives and sealant rule in a separate 
action.

E. When Were New Jersey's RACT Requirements Proposed and Adopted?

    New Jersey proposed the RACT rules at Subchapters 4, 10, 16 and 19, 
and related amendments to Subchapter 21, on August 4, 2008, accepted 
written comments on them until October 3, 2008, and held public 
hearings on them on September 26, 2008. New Jersey adopted the amended 
RACT rules and related requirements on March 20, 2009, and submitted 
them to EPA for approval as revisions to the SIP on April 21, 2009. On 
June 4, 2009, EPA determined the submittal to be administratively and 
technically complete.

F. What is EPA's Evaluation of New Jersey's Subchapter 4--``Control and 
Prohibition of Particles From Combustion of Fuel?''

    New Jersey previously submitted Subchapter 4 (state effective date 
October 12, 1977) as a SIP revision and EPA approved it on January 27, 
1984 (49 FR 3465). In this action, EPA is acting on the April 21, 2009 
submittal of amendments to Subchapter 4 that affect the coal-fired 
boiler source category, which consist of new definitions and more 
stringent emission limits for facilities that emit particles from coal-
fired boilers.
Section 4.1 Definitions
    New Jersey revised section 4.1, Definitions, to add and/or revise 
terms and their definitions. EPA evaluated New Jersey's definitions for 
consistency with the Act, EPA regulations, and EPA policy, and proposes 
to approve them.
Section 4.2 Standards for the Emission of Particles
    New Jersey amended section 4.2 of Subchapter 4 to lower the current 
SIP approved particle emission rates for existing coal-fired boilers 
and for coal-fired boilers with a particle control apparatus that is 
newly constructed, installed or reconstructed. Owners/operators must 
comply with the new particle emission rates unless otherwise specified 
in an enforceable agreement with New Jersey. Note, particulates and 
particles are synonymous terms.
    The particulate emission rates in section 7:27-4.2(a) are unchanged 
from emission rates in the current SIP approved Subchapter 4. The 
emission rates listed in section 7:27-4.2(a) will no longer apply for 
any coal-fired boiler or particulate control apparatus regulated by new 
sections 7:27-4.2(b) or 7:27-4.2(c) on and after the required 
compliance dates. The compliance date for sources subject to 7:27-
4.2(b) is May 19, 2009; the compliance date for sources subject to 
7:27-4.2(c) is December 15, 2012.
    The particulate emission rate listed in section 7:27-4.2(b) of 
0.0150 pounds per million BTUs (MMBTU) shall apply for coal fired 
boilers that have a particulate control apparatus that is newly 
constructed, installed, reconstructed, and commences operation on or 
after May 19, 2009. The owner or operator shall demonstrate compliance 
based on the average of three stack tests, approved by New Jersey, and 
in accordance with the source's approved permit. A coal-fired boiler or 
particulate control apparatus is also subject, as applicable, to 
existing New Jersey state-of-the-art requirements at 7:27-8.12 and 
22:35, lowest achievable emission rate requirements at NJAC 7:27-18, 
and best available control technology requirements at 40 CFR 52.21, 
which are incorporated into the applicable implementation plan by 
reference.
    Unless regulated by 7:27-4.2(b), the particulate emission rate 
listed in section 7:27-4.2(c) shall apply for coal fired boilers in 
operation prior to May 19, 2009. Coal fired boilers are subject to an 
emission rate limit of 0.0300 pounds per MMBTU, or the permitted 
emission rate in effect as of May 19, 2009, whichever is lower. The 
owner or operator shall demonstrate compliance based on the average of 
three stack tests, approved by New Jersey, and in accordance with the 
source's approved permit.

[[Page 21200]]

    EPA supports and proposes to approve the amendments to Subchapter 
4, which further reduce particulate emissions in the State.

G. What Is EPA's Evaluation of New Jersey's Subchapter 10--``Sulfur in 
Solid Fuels?''

    New Jersey previously submitted Subchapter 10 (state effective date 
July 14, 1981) as a SIP revision and EPA approved it on November 3, 
1981 (46 FR 54542). In this action, EPA is acting on amendments that 
affect facilities that emit sulfur dioxide (SO2) emissions 
from solid fuel burning sources, including boilers serving electric 
generating units (EGUs). The amendments include new definitions and 
more stringent emission limits for SO2.
Section 10.1 Definitions
    New Jersey revised section 10.1, Definitions to add and/or revise 
terms and their definitions.
    EPA evaluated New Jersey's definitions for consistency with the 
Act, EPA regulations, and EPA policy, and proposes to approve them.
Section 10.2 Sulfur Contents Standards
    New Jersey amended section 10.2 of Subchapter 10 to require sources 
to comply with more stringent SO2 emission rates contained 
in section 7:27-10.2(h), and to eliminate the need to control 
SO2 emissions by regulating the sulfur content of solid 
fuel. Owners/operators must comply with the new SO2 emission 
rates unless otherwise specified in an enforceable agreement with New 
Jersey.
    Section 7:27-10.2(a), which regulates the sulfur content of solid 
fuel stored, offered for sale, sold, delivered or exchanged in trade, 
for use in New Jersey, and section 7:27-10.2(b), which regulates the 
sulfur content of solid fuel burned, will no longer apply to any source 
after December 14, 2012. Additionally, existing section 7:27-10.2(c), 
which required different emission standards based on the level of 
SO2 nonattainment of a particular zone, will no longer apply 
after December 14, 2012. Existing sections 7:27-10.2(d),(e), and (f), 
which also regulate SO2 emissions based on the sulfur 
content of fuel, and subsection (g), which applies to authorizations 
granted pursuant to subsection (f), will also no longer apply after 
December 14, 2012.
    Pursuant to section 7:27-10.2(h), all sources that combust solid 
fuel on or after December 15, 2012 must comply with the maximum 
SO2 emission rate of 0.250 pounds/MMBtu gross heat input 
based on a 24-hour emission rate and 0.150 pounds/MMBtu gross heat 
input based on a 30-calendar-day rolling average emission rate. Any 
source that combusts solid fuel, and that is constructed, installed, 
reconstructed, or modified, is also subject, as applicable, to existing 
New Jersey state-of-the-art requirements at 7:27-8.12 and 22:35, lowest 
achievable emission rate requirements at NJAC 7:27-18, and best 
available control technology requirements at 40 CFR 52.21, which are 
incorporated into the applicable implementation plan by reference.
    Pursuant to section 7:27-10.2(j), owners/operators of boilers may 
request, from New Jersey, a one-year extension of the December 15, 2012 
compliance deadline. Section 10.2(j) provides the necessary 
administrative and procedural requirements for owners to submit an 
extension request and the conditions under which New Jersey will 
approve the extension request.
    EPA supports and proposes to approve the amendments to this 
existing provision, which address SO2 emissions from solid 
fuel burning.
Section 10.5 SO2 Emission Rate Determinations
    Section 10.5 of Subchapter 10 is a new provision that establishes 
procedures for calculating the 24-hour and 30-calendar-day rolling 
average emission rates for SO2 that are specified in 
10.2(h).
    SO2 emissions must be determined through the use of a 
Continuous Emissions Monitoring System (CEMS). Section 10.5(c) allows 
owners/operators to exclude emissions when the units are not combusting 
solid fuel. Section 10.5(c)1 allows an exemption from the 30 calendar 
day SO2 emission rate during the period of startup until the 
unit begins combusting coal. Section 10.5(c)2 allows an exemption from 
the 24-hour SO2 emission rate during the period of time that 
the boiler does not combust coal. New Jersey provided for this 
exemption to exclude emissions from periods when the boiler is 
combusting fuel other than solid fuels, such as fuel oil or natural 
gas, which can be burned during the start-up of coal fired boilers.
    EPA supports these amendments and is proposing to approve them.

H. What Is EPA's Evaluation of New Jersey's Subchapter 16: ``Control 
and Prohibition of Air Pollution by Volatile Organic Compounds?''

    New Jersey previously submitted Subchapter 16 (state effective date 
October 17, 2005) as a SIP revision and EPA approved it on July 31, 
2007 (72 FR 41626). In this action, EPA is acting on amendments to 
Subchapter 16 that affect the following VOC sources or source 
categories: VOC stationary storage tanks; sources subject to control 
technique guidelines (CTGs) for flat wood paneling coatings, flexible 
packaging printing materials and offset lithographic printing and 
letterpress printing; sources subject to alternative or facility-
specific VOC control requirements; and asphalt used for paving;
Section 16.1 Definitions
    New Jersey revised section 16.1, Definitions, to add and/or revise 
terms and their definitions.
    EPA evaluated New Jersey's definitions for consistency with the 
Act, EPA regulations, and EPA policy and proposes to approve them.
Section 16.2 VOC Stationary Storage Tanks
    New Jersey has reevaluated the level of controls currently required 
for stationary storage tanks that store VOC by studying controls that 
have been successfully implemented in other states. The revisions 
primarily affect those tanks in Range III which is the range that 
covers larger tanks that store high vapor pressure VOC, such as 
gasoline, located at refineries, terminals, and pipeline breakout 
stations. The new requirements can be grouped into five categories: 
deck fittings and seals, domes, roof landings, degassing and cleaning 
operations, and inspection and maintenance procedures.
Deck Fittings and Seals
    New Jersey revised section 16.2(l) to add provisions that require 
roof penetrations, such as slotted guide poles, access hatches, and 
adjustable roof legs to have seals, and require upgraded seals for 
other deck fittings. In addition they provide more stringent rim seal 
system requirements for existing and new storage tanks in Range III and 
require roof openings to be maintained in a leak-free condition, as 
determined by EPA Method 21 (40 CFR part 60, Appendix A).
Domes
    New Jersey revised section 16.2(l) to require, with some 
exceptions, that domes be installed on external floating roof tanks 
that store materials with true vapor pressures greater than three pound 
per square inch absolute (psia). Any tanks exempted from the 
requirement of section 16.2(l) must still comply with other 
requirements in section 16.2 for tanks in existence on May 18, 2009, 
the day before the

[[Page 21201]]

operative date of these provisions. Compliance is required the first 
time an existing tank is degassed following May 19, 2009, the operative 
date of these revisions, but no later than May 1, 2020. A new tank is 
required to comply before the tank is initially filled.
Roof Landings
    Sections 16.2(n), (o), and (p) are new provisions that New Jersey 
designed to minimize emissions when a tank goes through a ``roof 
landing cycle.'' A roof landing cycle is composed of three phases: the 
removal of all stored liquid VOC (the floating roof is no longer in 
contact with the stored liquid VOC, but is supported by legs or 
cables), the idling period (when the tank is waiting to be refilled), 
and the refilling of the tank. Pursuant to 16.2(p)(1)(i), any floating 
roof tank existing on May 19, 2009 and not exempt pursuant to 
16.2(f)(6), must submit to NJDEP, by December 1, 2009, a complete, 
written facility-wide tank VOC control plan. Pursuant to 16.2(p)(1)(ii) 
any new tank, excluding those exempt pursuant to 16.2(f)(6), must 
submit to NJDEP, by 120 days of installation, a written new or updated 
facility-wide tank VOC control plan. Pursuant to 16.2(p)(2)(ii), 
schedules for implementation of emission controls by May 19, 2019 are 
to be consistent with the facility's schedule for tank removal from 
service for normal inspection and maintenance and with the facility's 
schedule for the installation of any new tanks. As an alternative to 
the implementation schedule of emission controls, storage tanks in 
Range III that store gasoline may submit an emissions averaging plan 
pursuant to 16.2(p)2.iii.
Degassing and Cleaning Operations
    Storage tanks must be periodically cleaned and accumulated sludge 
removed. Before this can occur, tanks must be degassed (removal of 
gases that remain after the liquid has been removed). Section 16.2(q) 
is a new provision that contains requirements for handling the gases 
and sludge that must be removed when a tank is degassed and cleaned 
between May 1 and September 30. Compliance with these requirements 
begins on May 1, 2010. Displaced vapors must be sent to a vapor control 
system with at least 95 percent control efficiency. Section 16.2(q) 
also contains approved methods for cleaning the inside of the tank. 
Sludge from tanks that contained a VOC with a vapor pressure greater 
than 1.5 psia (pounds per square inch absolute) must be transferred to 
receiving vessels that are controlled to prevent 95 percent of the 
emissions from being released to the atmosphere. Sludge containers must 
be kept vapor tight and free from liquid leaks.
Inspection and Maintenance
    Section 16.2(r) is a new provision that applies to VOC storage 
tanks in Range III and requires that the tanks in this range be 
inspected by an authorized inspector and the results recorded on an 
inspection form (contained in Subchapter 16, Appendix II). Section 
16.2(r) specifically identifies what must be annually inspected and 
what must be inspected once a tank is degassed but not less than once 
every 10 years. Any equipment that does not meet Subchapter 16 
requirements must be repaired or replaced.
    EPA evaluated the section 16.2 provisions for consistency with the 
Act, EPA regulations, and EPA policy and proposes to approve them.
Section 16.7 Surface Coating and Graphic Arts Operations
Offset Lithographic Printing and Letterpress Printing
    New Jersey revised section 16.7 to address the CTG for Offset 
Lithographic Printing and Letterpress Printing. Subsections (r) and (s) 
were added and require more stringent emission controls. Where more 
resource intensive emission controls are necessary or involve modifying 
the equipment, compliance is required by May 1, 2010. The VOC solvent 
content of fountain solutions is limited depending on the type of 
equipment and the limits must be complied with by May 19, 2009. 
Cleaning materials are restricted to a composite vapor pressure less 
than 10 mm Hg (millimeters mercury) or VOC content of less than 70 
percent by weight with some exceptions after May 19, 2009.
    In addition, section 16.7(t) was added and requires, effective May 
19, 2009, best management practices, such as, keeping VOC and VOC 
containing materials in closed containers, ensuring mixing vessels have 
covers and are kept closed when not adding or removing materials, 
keeping VOC containing shop towels in closed containers, and 
recordkeeping requirements. The above changes are consistent with the 
CTG recommendations issued on October 5, 2006.
    EPA evaluated these provisions for consistency with the Act, EPA 
regulations, and EPA policy and proposes to approve them.
Flexible Package Printing
    The New Jersey amendments to section 16.7 address the CTG for 
Flexible Package Printing. Section 16.7(h)(3) was added and requires 
more stringent emission controls for rotogravure, sheet-fed gravure, or 
flexographic printing operations installed or modified on or after May 
19, 2010. Section 16.7, Table 7D -Part B contains new maximum allowable 
VOC content of surface coating formulations (minus water) limits. 
Section 16.7(t) requires best management practices (see above 
description). These amendments are consistent with the CTG 
recommendations issued on October 5, 2006.
    EPA evaluated these provisions for consistency with the Act, EPA 
regulations, and EPA policy and proposes to approve them.
Flat Wood Paneling and Printed Hardwood Coatings
    The New Jersey amendments to section 16.7 address the CTG for Flat 
Wood Paneling and Printed Hardwood Coatings. Section 16.7, Table 7B 
contains new maximum allowable VOC content per volume of coating (minus 
water) limits for flat wood paneling and printed hardwood coatings of 
2.1 pounds per gallon with a compliance date of May 19, 2009. Section 
16.7(t) requires best management practices (see above description).
    The amendments to section 16.7 are consistent with the CTG 
recommendations issued on October 5, 2006. EPA has evaluated these 
provisions for consistency with the Act, EPA regulations, and EPA 
policy and proposes to approve them.
Section 16.11 Asphalt Pavement Production Plants
    The New Jersey amendments to section 16.11 clarify that it applies 
to plants where asphalt pavement is produced. There were no changes to 
the requirements.
    EPA evaluated this provision for consistency with the Act, EPA 
regulations, and EPA policy and proposes to approve it.
Section 16.17 Alternative and Facility-Specific VOC Control 
Requirements
    The New Jersey amendments to section 16.17 limit the duration of an 
approved VOC alternative control plan to ten years. Section 16.17(c)5 
provides that, for control plans issued after May 19, 2009, sources can 
reapply for a new plan the year before the existing alternate control 
plan expires. Sources with VOC control plans issued prior to May 19, 
2009 must reapply and demonstrate continued justification or comply 
with the specific Subchapter 16 requirements for that source. If the 
source does not submit a proposed plan

[[Page 21202]]

by August 17, 2009, the existing plan terminates on August 17, 2009 and 
the source must comply with all applicable provisions of Subchapter 16. 
All alternative control plans must be submitted by the State to EPA for 
approval as a revision to the SIP.
    EPA has evaluated these provisions for consistency with the Act, 
EPA regulations, and EPA policy and proposes to approve them.
Section 16.19 Application of Cutback and Emulsified Asphalts
    The New Jersey amendments to section 16.19 further reduce the 
amount of VOC that is allowed to be included in cutback asphalt or 
emulsified asphalt used between April 16 through October 14 to no 
greater than 0.1 percent VOC by weight or no greater than 6.0 
milliliters of oil distillate, in accordance with ASTM Method D244, 
Standard Test Methods and Practices for Emulsified Asphalts, or AASHTO 
T 59, Standard Method of Test for Testing Emulsified Asphalts. In 
addition, it requires cutback asphalt or emulsified asphalt to be 
stored in sealed containers from April 16 through October 14. Both 
these requirements are applicable as of April 16, 2009. EPA evaluated 
these provisions for consistency with the Act, EPA regulations, and EPA 
policy and proposes to approve them.
Other Changes to Subchapter 16
    In addition to the above, New Jersey modified Subchapter 16 to make 
technical and administrative corrections, to delete outdated 
provisions, such as the repealed Open Market Emissions Trading Program, 
and to clarify the use of terms in section 16.17.
    EPA evaluated these provisions for consistency with the Act, EPA 
regulations, and EPA policy and proposes to approve them.

I. What Is EPA's Evaluation of New Jersey's Subchapter 19 ``Control and 
Prohibition of Air Pollution From Oxides of Nitrogen?''

    The following is a summary of EPA's evaluation of New Jersey's 
April 21, 2009 SIP submittal consisting of new provisions and 
amendments to existing provisions to Subchapters 19.
    New Jersey previously submitted Subchapter 19 as a SIP revision to 
address the NOX RACT requirements, which EPA approved as SIP 
revisions on January 27, 1997 (62 FR 3804), March 29, 1999 (64 FR 
14832) and July 31, 2007 (72 FR 41626). New Jersey also developed a 
NOX Budget Trading Program, which EPA approved as a SIP 
revision on May 22, 2001 (66 FR 28063), and the Clean Air Interstate 
Rule (CAIR) program, which EPA approved as a SIP revision on October 1, 
2007 (72 FR 55666). The current submission provides new provisions and 
amendments that establish more stringent RACT limits for facilities 
that emit NOX. New Jersey revised Subchapter 19 to require 
owners and operators to implement the following new provisions and 
amendments to existing provisions:
1. New Provisions
Municipal Solid Waste (MSW) Incinerators
    Section 19.12 of Subchapter 19 is a new provision that establishes 
a NOX emission limit, compliance monitoring requirements and 
compliance dates for any size MSW incinerator. The new NOX 
emission limit is 150 parts per million measured on a dry volume basis 
(ppmvd) at 7% oxygen, averaged over a calendar day is set forth in 
section 19.12(a). If the NOX emission limit cannot be 
achieved, section 19.12(b) provides that owners/operators of the MSW 
incinerator can comply by obtaining an alternative maximum allowable 
NOX emission rate pursuant to section 19.13 of Subchapter 
19. In accordance with section 19.13(h), any State approved alternative 
maximum allowable NOX emission limit pursuant to 19.13(c) or 
NOX control plan pursuant to 19.13(b) must be submitted by 
New Jersey to EPA for approval as a SIP revision. Section 19.12(c) 
provides that compliance with the NOX limit is to be 
demonstrated with a continuous emission monitoring system (CEMS), 
pursuant to section 19.18 of Subchapter 19. Compliance is due by July 
18, 2009 if achieved by optimization of an existing NOX air 
pollution control system (APCS) without modifying the incinerator, 
however the date is extended to May 1, 2011 if compliance must be 
achieved by installing a NOX APCS or if it is necessary to 
physically modify the incinerator.
    The NOX emission limit of 150 ppmvd is more stringent 
than the federal limits currently in effect for existing large and 
small MSW incinerators (see 40 CFR Part 62, Subparts FFF and JJJ) and 
is more stringent than the limits previously approved by EPA as source-
specific SIP revisions submitted by New Jersey, pursuant to section 
19.13 of Subchapter 19.
    EPA supports these new provisions and is proposing to approve them.
Sewage Sludge Incinerators
    Section 19.28 of Subchapter 19 is a new provision that establishes 
NOX emission limits and compliance requirements for sewage 
sludge incinerators. Section 19.28(a) provides that the NOX 
emission limit is 7.0 pounds NOX per ton of dry sewage 
sludge for Multiple Hearth type incinerators and 2.5 pounds 
NOX per ton of dry sewage sludge for Fluidized Bed type 
incinerators, unless the owner/operator is complying with alternative 
compliance options at section 19.3(f) of Subchapter 19. The 
NOX emission limit of 7.0 pounds NOX per ton of 
dry sewage sludge for Multiple Hearth type incinerators is more 
stringent than the limits previously approved by EPA as source-specific 
SIP revisions submitted by New Jersey, pursuant to section 19.13 of 
Subchapter 19. EPA did not previously receive any source-specific SIP 
revisions from New Jersey for Fluidized Bed type sewage sludge 
incinerators.
    Pursuant to section 19.15(a) of Subchapter 19, owners/operators of 
sewage sludge incinerators must demonstrate compliance with either a 
CEMS or source emission tests. Pursuant to sections 19.15(b) and (c), 
owners/operators shall meet the following compliance demonstration 
dates: (1) For a source that was in operation before January 1, 1995, 
compliance is to be demonstrated at the frequency set forth in the 
permit for the equipment; and (2) for a source that commenced operation 
or is altered after January 1, 1995, initial compliance is to be 
demonstrated within 180 days of when the source commences operation.
    Pursuant to section 19.3(f) of Subchapter 19, owners/operators of 
sewage sludge incinerators may comply by using one of the alternative 
options listed in 19.3(f)(1)-(4) or a combination of options (1) and 
(3). The options in section 19.3(f) are: (1) An emissions averaging 
plan approved by New Jersey pursuant to sections 19.6 and 19.14; (2) an 
alternative maximum allowable NOX emission rate approved by 
New Jersey pursuant to section 19.13; (3) a plan for seasonal fuel 
switching approved by New Jersey pursuant to sections 19.14 and 19.20; 
and (4) a plan for phased compliance through the use of either 
repowering approved by New Jersey pursuant to section 19.21 or 
innovative control technology approved by New Jersey pursuant to 
section 19.23. In accordance with New Jersey's requirements for phased 
compliance through the use of either repowering or innovative control 
technology, owners/operators were required to have applied

[[Page 21203]]

to implement a plan by February 7, 2006 and to have fully implemented 
the plans by November 7, 2009. Since the New Jersey compliance 
deadlines have past, unless already fully implemented by November 7, 
2009, these two phased compliance plan options are no longer available 
as control options.
    When Subchapter 19 was last approved, EPA stated that it takes no 
action to either approve or disapprove the existing provisions for 
phased compliance using repowering or innovative control technology at 
sections 19.21 and 19.23, respectively, because they contain a 
compliance date of November 7, 2009, which was beyond the 1-hour ozone 
attainment date deadline. See 72 FR 41626, July 31, 2007. EPA continues 
to take no action on the phased compliance provisions at sections 19.21 
and 19.23, which are no longer viable control options, and requests New 
Jersey to delete this date which has now passed the next time 
Subchapter 19 is revised.
    EPA supports these changes and is proposing to approve this new 
provision.
High Electric Demand Days (HEDD) Electric Generating Units (EGUs)
    Sections 19.29 and 30 of Subchapter 19 are new provisions that 
establish a short term and a long term control strategy, respectively, 
for limiting NOX emissions on ``HEDD'' and establishing, as 
applicable, recordkeeping, reporting, and monitoring requirements for 
EGUs operating on HEDD which are typically days during the summer 
months when both temperatures and ozone levels can be high. Section 
19.1 defines a ``HEDD unit'' as an EGU, capable of generating 15 
megawatts or more, that commenced operation prior to May 1, 2005, and 
that operated less than or equal to an average of 50 percent of the 
time during the ozone seasons of 2005 through 2007.\1\ Section 19.1 
defines an HEDD as a day on which the generating load is forecast by 
the PJM Interconnection \2\ to have a peak value of 52,000 megawatts or 
higher.
---------------------------------------------------------------------------

    \1\ HEDD units can include some stationary gas turbines and some 
boilers.
    \2\ PJM Interconnection is a regional transmission organization 
(RTO) that coordinates the movement of wholesale electricity in all 
or parts of 13 states and the District of Columbia, including the 
State of New Jersey.
---------------------------------------------------------------------------

    Section 19.29 of Subchapter 19, contains the short term strategy to 
achieve NOX reductions from HEDD units starting on May 19, 
2009 through September 30, 2014 thereby providing owners/operators of 
affected units time to develop and implement the long term strategy 
pursuant to section 19.30, which requires compliance with the more 
stringent NOX emission limits at amended sections 19.4 and 
19.5 for boilers and combustion turbines, respectively. HEDD units 
applicable to section 19.29 are old units that typically emit high 
levels of NOX on HEDD.
    The short term strategy is based upon a March 2, 2007 Memorandum of 
Understanding (MOU) \3\ signed by New Jersey and the other member 
states of the Ozone Transport Commission (OTC). This MOU commits New 
Jersey to reduce NOX emissions associated with HEDD units by 
19.8 tons per day (TPD) on high electric demand days. Pursuant to 
section 19.29(b), this short term strategy requires owners/operators of 
HEDD units to do the following: (1) By June 18, 2009, submit to New 
Jersey an approvable ``2009 Protocol'' that defines all of the control 
measures pursuant to section 19.29(d) needed to achieve its share of 
the statewide NOX emission reductions from HEDD units, on 
each HEDD day during the period May 19, 2009 through September 30, 
2014, as determined by `Equation 1' of section 19.29(c); (2) provide a 
demonstration that all the required NOX reductions were 
obtained and include a demonstration in an annual report, pursuant to 
section 19.29(k); and (3) submit the annual report to New Jersey by 
January 30th of the following year, pursuant to section 19.29(k).
---------------------------------------------------------------------------

    \3\ ``Memorandum of Understanding Among the States of the Ozone 
Transport Commission Concerning the Incorporation of High Electric 
Demand Day Emission Reduction Strategies into Ozone Attainment State 
Implementation Planning''.
---------------------------------------------------------------------------

    The short term strategy also defines the applicability of the rule 
to specific affected sources, provides for recordkeeping and reporting 
requirements, provides detailed compliance requirements of an 
approvable 2009 Protocol, and establishes permitting requirements.
    It should be noted that pursuant to section 19.29(b)(3) of New 
Jersey's short term strategy, owners/operators of subject HEDD units 
may request the State's approval of a phased compliance plan, pursuant 
to section 19.22, which provides an additional year for compliance with 
the required NOX reductions due to impracticality. During 
the interim period, section 19.22(g)(4) requires owners/operators of an 
approved phased compliance plan to control NOX emissions 
either by adjusting the combustion process or seasonally combusting 
natural gas, pursuant to section 19.20, or implementing other control 
measures that New Jersey determines are appropriate.
    In addition to meeting the NOX reductions, (tons/HEDD) 
as provided in Equation 1, for the period from May 20, 2009 through 
April 30, 2015 owners/operators of HEDD units that are stationary 
combustion turbines are also required to meet a specific NOX 
emission limit (expressed as lbs/MMBTU), pursuant to section 19.5, as 
follows: (1) Table 4 emission limits apply for simple cycle combustion 
turbines; and (2) Table 5 emission limits apply for combined cycle or 
regenerative cycle combustion turbines.
    New Jersey's long term NOX reduction strategy provided 
in section 19.30 of Subchapter 19 addresses requirements for owners/
operators of HEDD units meeting new NOX emission limits 
starting in 2015 and beyond. As stated above, the new more stringent 
NOX emission limits, for boilers and combustion turbines, 
respectively, are provided in the new amendments in sections 19.4 and 
19.5. Owners/operators of HEDD units are required to submit to New 
Jersey a ``2015 HEDD Emission Limit Achievement Plan'' (``2015 Plan'') 
by May 1, 2010. The purpose of the 2015 Plan is to document how the 
owner/operator intends to comply with the 2015 HEDD NOX 
emission limits and to provide a schedule by which the new emission 
limits will be achieved for each HEDD unit. Owners/operators of HEDD 
units are required to submit to New Jersey an annual update on the 
progress of the 2015 Plan for each calendar year from 2010 through 
2014. Owners/operators of HEDD units are required to indicate any 
obstacles that might impede progress in achieving compliance with the 
applicable 2015 NOX emission limit and any steps needed to 
overcome these obstacles in their annual updates.
    EPA supports the new provisions, which address NOX 
reductions from HEDD units and proposes to approve them.
2. Amendments to Existing Provisions
Boilers Serving Electric Generating Units (EGUs)
    New Jersey revised section 19.4 of Subchapter 19 by lowering the 
current SIP approved NOX emission rates, and by providing 
new compliance dates, as summarized in Tables 1-3 of Subchapter 19, for 
boilers serving EGUs. Owners/operators must comply with the new 
NOX emission rates unless they are complying with the 
alternative compliance options in section 19.3(f) \4\

[[Page 21204]]

or unless otherwise specified in an enforceable agreement with New 
Jersey.
---------------------------------------------------------------------------

    \4\ Whenever EPA refers to section 19.3(f), the reader is 
referred to the discussion at section I.I.1 of this rulemaking 
relating to sewage sludge incinerators.
---------------------------------------------------------------------------

    The NOX emission rates in Table 1 of the amendments are 
the same as the emission rates in the current SIP approved Subchapter 
19 and are required to be complied with until December 14, 2012. For 
coal boilers, the NOX emission rates in Tables 2 and 3 are 
lowered to 1.5 pounds per megawatt hour (lb/MWh), resulting in 
additional NOX reductions ranging from about 75 percent to 
85 percent, depending upon the boiler type, and the operative 
compliance date is December 15, 2012. New Jersey revised the 
NOX emission rates from heat input based rates (pounds per 
MMBTU) in Table 1 to the production output based rates (lb/MWh) 
provided in Tables 2 and 3. Output based limits encourage sources to 
improve plant operating efficiency and encourage pollution prevention 
measures, such as clean energy supply, which result in reduced fuel 
consumption and reduced emission of pollutants, including 
NOX.
    When calculating a 24-hour NOX emission rate for coal 
combustion at a coal boiler, section 19.4 allows owners/operators to 
exclude emissions during startup and shutdown under the following 
restricted conditions: (1) For startup, when the unit is not combusting 
fossil fuel (coal), for a period not to exceed 8 hours, from initial 
combustion until the unit combusts coal and is synchronized with a 
utility electric distribution system; and (2) for shutdown, when the 
unit is no longer combusting coal and no longer synchronized with a 
utility electric distribution system. New Jersey provided for this 
exemption because of technological limitations: Selective catalytic 
reduction (SCR) and selective non-catalytic reduction (SNCR) control 
technologies do not control NOX emissions effectively at 
lower than optimum temperatures that can occur during startup and 
shutdown periods. EPA is in agreement with New Jersey's exemption for 
the following reasons: (1) The impact on ambient air quality is 
minimized by New Jersey's narrowly defined startup and shutdown 
requirements; (2) the exemption only applies during startup and 
shutdown periods when coal is not combusted; (3) the NOX 
control strategies have technological limitations during startup and 
shutdown periods; and (4) New Jersey requires compliance with oil/gas 
NOX emission limits during this startup/shutdown period. 
This startup/shutdown exemption is consistent with EPA's guidance as 
discussed in the TSD.
    For oil and gas boilers, the NOX emission rates provided 
in section 19.4, Table 3, expressed as lb/MWh, are more stringent as 
follows: (1) 2.0 for boilers combusting heavier than No. 2 fuel oil, 
resulting in additional NOX reductions as high as 53 
percent, depending upon the boiler type; and (2) 1.0 for boilers 
combusting either No. 2 and lighter fuel oil or gas only, resulting in 
additional NOX reductions ranging from about 50 percent to 
76 percent, depending upon the boiler type.
    The operative compliance date for oil and gas fired boilers that 
are subject to the new NOX emission rates in Table 3 is May 
1, 2015.
    Pursuant to section 19.4(f) of Subchapter 19, owners/operators of 
coal-fired boilers may request from New Jersey a one-year extension of 
both the December 15, 2012 emission limit compliance deadline and the 
June 15, 2013 compliance demonstration deadline required at section 
19.4(d)(1). Section 19.4(f) provides the necessary administrative and 
procedural requirements for owners to submit an extension request and 
the conditions under which New Jersey will approve the extension 
request.
    EPA supports and proposes to approve the amendments to the current 
SIP-approved provision as they provide for further NOX 
reductions from boilers serving EGUs.
Stationary Combustion Turbines
    New Jersey revised section 19.5 of Subchapter 19 to lower the 
current SIP approved NOX emission rates and to provide 
compliance dates for stationary combustion turbines, as summarized in 
Tables 4-7 of Subchapter 19. The NOX emission rates in 
Tables 4 through 6 are the same as the emission rates in the current 
SIP approved Subchapter 19.
    Table 7 is applicable to all HEDD unit stationary combustion 
turbines or stationary combustion turbines capable of generating 15 MW 
or more that commenced operation on or after May 1, 2005. The 
NOX emission rates in Table 7 are more stringent, by 
approximately 40 to 54 percent, depending upon the type of turbine and 
fuel combusted, than the current Table 6 SIP approved NOX 
emission rates. Owners/operators of affected units must comply with the 
Table 7 NOX emission rates on and after May 1, 2015.
    EPA supports and proposes to approve the amendments to the current 
SIP approved provision as they provide for further NOX 
reductions from stationary combustion turbines.
Industrial/Commercial/Institutional (ICI) Boilers and Other Indirect 
Heat Exchangers (IHEs)
    New Jersey revised section 19.7 of Subchapter 19 by lowering the 
current SIP approved maximum allowable NOX emission rates, 
by providing compliance dates, and by lowering the applicability 
threshold for ICI boilers and other IHEs. The more stringent 
requirements at section 19.7 do not apply to ICI boilers and other IHEs 
at petroleum refineries. Owners/operators must comply with the 
NOX emission rates unless they are complying with the 
alternative compliance options in section 19.3(f) (see footnote 4).
    The NOX emission rates in the new Table 9 are more 
stringent than the current SIP approved rates in Table 8 and are 
applicable to owners/operators of ICI boilers and IHEs, whether or not 
the source is located at a facility classified as major for 
NOX, for those sources that are not located at a petroleum 
refinery. Newly applicable sources are required to be in compliance 
with the new limits as follows: (1) The applicability threshold is 
lowered, for sources with a heat input rate expressed as lb/MMBTU, to 
25 from 50 lb/MMBTU and (2) the applicability of these provisions is 
extended to ICI boilers and IHEs not located at a facility classified 
as major for NOX. The new NOX emission rates are 
lowered as much as 77%, depending upon the boiler type and/or fuel 
combusted. The State has indicated there are no longer any coal-fired 
boilers in operation. Therefore it has deleted the requirement to 
comply with these NOX emission rates for the source category 
``coal-fired boilers.'' For sources with a heat input rate of at least 
25 MMBTU/hr but less than 50 MMBTU/hr, compliance with the Table 9 
NOX emission rates are required on and after (1) May 1, 2011 
if compliance is achieved without physically modifying the boiler or 
IHE and (2) May 1, 2012 for sources that comply by a physical 
modification. For sources with a heat input rate of at least 50 MMBTU/
hr, compliance with the Table 9 NOX emission rates is 
required on and after (1) May 1, 2010 if compliance is achieved without 
physically modifying the boiler or IHE and (2) May 1, 2011 for sources 
that comply by a physical modification.
    For ICI boilers and IHEs located at petroleum refineries, the 
current SIP approved NOx emission rates in Table 8 are still 
applicable.
    EPA supports and proposes to approve the amendments to the current 
SIP-approved provision as the amendments provide for further 
NOX

[[Page 21205]]

reductions from ICI boilers and other IHEs.
Asphalt Pavement Production Plants
    New Jersey revised section 19.9 of Subchapter 19 by lowering the 
current SIP approved maximum allowable NOX emission limit 
for dryers at asphalt production plants, by providing new compliance 
dates, and by requiring implementation and recordkeeping associated 
with new best management practices. The NOX emission limits 
are lowered, in the range of 37 to 67 percent, from 200 ppmvd, as 
measured at 7 percent oxygen, to more stringent limits depending upon 
the fuel combusted in the dryer. The new NOX emission limits 
are as follows: (1) 75 ppmvd for natural gas combustion; (2) 100 ppmvd 
for No. 2 fuel oil combustion; and (3) 125 ppmvd for No. 4 fuel oil, 
heavier fuel oil, on-specification used oil or any mixture of these 
three oils. Owners/operators must comply with the NOX 
emission limits unless they are complying with the alternative 
compliance options in section 19.3(f) (see footnote 4). In addition, 
owners/operators must annually adjust the combustion process of the 
dryer pursuant to section 19.16 of Subchapter 19.
    Owners/operators of an asphalt pavement production plant that are 
complying without physically modifying the dryer must be in compliance 
with the new NOX emission limits by the following dates: (1) 
By May 1, 2011, for sources with a heat input rate of less than 100 
MMBTU/hr and (2) by May 1, 2010, for sources with a heat input rate of 
at least 100 MMBTU/hr. For owners/operators of sources that must make 
physical modifications to comply, the compliance date is extended one 
year for each of the scenarios above.
    EPA supports and proposes to approve the amendments to the current 
SIP approved provision that addresses NOX reductions from 
asphalt pavement production plants.
Glass Manufacturing Furnaces
    New Jersey revised section 19.10 of Subchapter 19 by lowering the 
current SIP approved NOX emission limits by approximately 27 
to 64 percent, by adding new applicable source categories, and by 
providing compliance dates for glass manufacturing furnaces having the 
potential to emit more than 10 tons of NOX per year. The new 
NOX emission limits for glass manufacturing furnaces subject 
to the provisions are either 4.0 or 9.2 tons NOX per ton of 
glass removed from the furnace, depending upon the type of glass 
produced and the production rate of the glass furnace. The amendments 
applicable to glass manufacturing furnaces that produce pressed glass, 
blown glass, fiberglass and flat glass are now regulated by section 
19.10.
    Pursuant to section 19.10(f), in lieu of meeting the NOX 
emission limits at sections 19.10(a) and (b), owners/operators of glass 
manufacturing furnaces may comply by using the alternative compliance 
options at section 19.10(f), which parallel those for sewage sludge 
incinerators at 19.3(f) (see footnote 4), except that the alternative 
compliance option for innovative control technology and the phased 
compliance by repowering are not allowed by New Jersey.
    Owners/operators of glass manufacturing furnaces are required to be 
in compliance with the new NOX emission limits on and after 
May 1, 2010. Based on economic considerations, compliance with the 
amendments is required on the first day of startup after rebricking of 
the furnace occurs. Since economic feasibility is one of the RACT 
requirements, New Jersey's compliance requirement is acceptable to EPA.
    EPA supports and proposes to approve the amendments to the current 
SIP approved provision that addresses NOX reductions from 
glass manufacturing furnaces.
Alternative and Facility-Specific NOX Emission Limits (AELs 
and FSELs)
    Section 19.13 of Subchapter 19 establishes a procedure for making 
case-by-case RACT determinations for facilities classified as major for 
NOX, for an item of equipment, or for a source operation. 
Owners/operators of major NOX facilities with emission 
sources having a potential to emit of more than 10 tons of 
NOX per year, where no previous presumptive NOX 
emission limit has been established in Subchapter 19, are required to 
apply to New Jersey for a facility-specific emission limit (FSEL). 
Where a presumptive NOX emission limit exists in Subchapter 
19 and owners/operators determine that the presumptive NOX 
limit cannot be met by the source, the owners/operators can apply to 
New Jersey, pursuant to the procedures in section 19.13, for an 
alternative emission limit (AEL). FSELs and AELs are determined on a 
case-by-case basis. Pursuant to section 19.13(h), any FSEL or AEL 
approved by New Jersey must be submitted by the State to EPA for 
approval as a revision to the SIP. If EPA denies the approval of the 
proposed NOX plan as a revision to the SIP, section 19.13(l) 
provides that New Jersey will revoke its approval of the plan.
    Section 19.13 is amended by requiring owners/operators of each 
facility with either an FSEL or an AEL that was issued by New Jersey 
before May 1, 2005 to submit a new NOX control plan by 
August 17, 2009 unless a 90-day extension is requested and approved by 
the State. Pursuant to section 19.13(b)(1), any FSEL approved by New 
Jersey after May 19, 2009 will not have an expiration date unless there 
is a modification, alteration or reconstruction of the source, for 
which the State's approval of a new FSEL is required. Pursuant to 
section 19.13(b)(2) any AEL approved by New Jersey will have a term 
limit of 10 years. An approval of an AEL is void upon alteration of the 
equipment or source operation, unless New Jersey determines that the 
alteration does not materially affect the basis of the original 
approval or the source, prior to the alteration, applies for and 
obtains a revised AEL (see sections 19.13(b)(6) and 19.13(k)). New 
Jersey made these amendments after its review of existing FSELs and 
AELs many of which were approved as long ago as 1997. In many cases, 
the State determined that control technologies have advanced 
sufficiently since that time, warranting reevaluations of these case-
by-case determinations.
    EPA supports and proposes to approve the amendments to the current 
SIP approved provision as they will lead to potential NOX 
reductions from specific-sources.
3. Additional Amendments to Subchapter 19
    New Jersey adopted a number of other amendments since EPA last 
approved amendments to Subchapter 19 (72 FR 41626, July 31, 2007). 
Among other things, these amendments (1) Revised terms and definitions 
that do not change the meaning or stringency of the provisions; (2) 
revised section 19.2 to expand the list of the following applicable 
source categories: Certain glass manufacturing furnaces, any municipal 
solid waste incinerator, and any sewage sludge incinerator; (3) revised 
section 19.3 to exclude owners/operators of HEDD units from using 
alternative compliance options at section 19.3(f), beginning on May 1, 
2015; and (4) deleted the entire provision at section 19.27 that 
referred to New Jersey's now defunct Open Market Trading Program at 
Subchapter 30 that was repealed in 2004.

[[Page 21206]]

4. Compliance Dates
    New Jersey amended Subchapter 19 by including new provisions and 
amendments to previously approved SIP provisions that result in more 
stringent NOX emission limitations that will lead to 
additional reductions in NOX emissions from the affected 
major stationary combustion sources.
    New Jersey uses the emission benefits from the new provisions and 
amendments to Subchapter 19 in a variety of ways in the SIP. Some are 
used to meet reasonable further progress goals, others as a contingency 
measure should an area fail to attain the 1997 ozone standard, some to 
support the ``weight of evidence'' arguments concerning attainment of 
the 1997 ozone standard, and others that will be used to help to attain 
the new 2008 ozone standard (currently under reconsideration) that New 
Jersey anticipates will replace the 1997 ozone standard. In addition, 
New Jersey was seeking to fulfill the section 182(b)(2) and section 
172(c)(1) requirements for RACT as applied to both the 1997 and 2008 
ozone standards in setting the emission standards and compliance due 
dates.
    Emission reductions required by sections 182(b)(2) and 172(c)(1) of 
the Act, used to fulfill in the 1997 ozone SIP, are required to be 
achieved by May 2009. Sources with compliance periods that go beyond 
May 2009 are used as contingency measures or towards meeting RACT for 
the 2008 ozone standard. In determining a compliance date for a level 
of control that can be considered RACT, the time necessary to make the 
required modifications and the cost of modifications were taken into 
consideration. For example, rebricking of a glass manufacturing 
furnace, which usually accompanies new emission controls, is a 
significant factor in evaluating both time and expenses necessary for 
the project. Requiring a ``rebricking'' of a furnace before it is 
physically necessary would constitute a significant additional cost 
that could result in the new emission controls being considered 
economically unreasonable.
    The compliance dates included in Subchapter 19's provisions are as 
expeditious as practical considering the level of the required new 
controls. Consistent with the Phase 2 Rule, any emission reduction used 
in the 1997 ozone SIP is required to occur no later than the start of 
the 2009 ozone season, which is the time by which a state must 
demonstrate that it achieved the necessary emission reductions to meet 
the June 15, 2010 attainment date for areas that are classified as a 
moderate nonattainment area for the 8-hour ozone standard.
    Based on preliminary air quality data monitored for the 3-year 
period from 2007-2009, the Philadelphia-Wilmington-Atlantic City, PA-
NJ-MD-DE nonattainment area is eligible for a one year extension of its 
attainment date to June 15, 2011 because of the clean air quality data 
monitored for 2009. Similarly, the New York-N.New Jersey-Long Island, 
NY-NJ-CT nonattainment area is eligible for a clean data determination 
based on three years of clean data. In addition, consistent with EPA's 
last approval of Subchapter 19 (see 72 FR 41626, July 31, 2007), EPA 
continues to take no further action to approve or disapprove the 
existing provisions for phased compliance by repowering and innovative 
control technology at sections 19.21 and 19.23. These provisions still 
include the compliance date of November 7, 2009, which is beyond the 
November 15, 2007 attainment deadline for the NY-NJ-CT 1-hour ozone 
standard. For this reason, as indicated in EPA's July 2007 approval of 
Subchapter 19, New Jersey should delete the reference to the November 
7, 2009 compliance date for these two phased compliance plans.
5. Other Comments
    As stated above, owners/operators of HEDD units subject to New 
Jersey's short term strategy at section 19.29 may apply to the State 
for approval of a phased compliance plan pursuant to section 19.22 that 
allows for an additional year for compliance with the required 
NOX reductions due to demonstrated impracticality. However, 
at section 19.1, the definition of ``interim period'' allows a source 
an additional two years instead of one year from May 19, 2009. As 
discussed with the State, New Jersey should revise section 19.1 to make 
it consistent with section 19.22.
6. NOX RACT
    EPA originally approved Subchapter 19 into the SIP on May 31, 1972. 
37 FR 10842, 10880 and 40 CFR 52.1576. This rule was adopted because 
the Clean Air Act requires states to submit to EPA a plan that provides 
for implementation, maintenance and enforcement of a degree of nitrogen 
oxide reduction that is necessary to achieve attainment with the NAAQS. 
New Jersey developed, adopted and submitted to EPA, for approval into 
the SIP, Subchapter 19, a plan for the application of reasonably 
available control technology to reduce nitrogen oxide emissions from 
stationary sources.
    Pursuant to 40 CFR 81.331, New Jersey-NO2 table, all 
areas in New Jersey are classified as ``Cannot be classified or better 
than national standards.''
    New Jersey submitted previous versions of Subchapter 19 as SIP 
revisions which EPA approved as SIP revisions on January 27, 1997 (62 
FR 3804), March 29, 1999 (64 FR 14832) and July 31, 2007 (72 FR 41626). 
New Jersey also developed, adopted and submitted to EPA a 
NOX Budget Trading Program and a Clean Air Interstate Rule 
(CAIR) program which EPA approved as SIP revisions on May 22, 2001 (66 
FR 28063) and October 1, 2007 (72 FR 55666), respectively. The current 
submission provides new provisions and amendments that establish more 
stringent RACT limits for stationary sources that emit NOX.
    Given the previously approved versions of Subchapter 19 and the 
most recent version of Subchapter 19 that EPA is proposing to approve 
in this action, EPA has determined that New Jersey has met the 
requirement to adopt NOX RACT. Therefore, the 40 CFR 52.1576 
finding relating to the New Jersey SIP not providing for NOX 
RACT has been satisfied and this finding should be removed.

J. What Is EPA's Evaluation of New Jersey's Subchapter 21--``Emission 
Statements?''

    This rule requires industrial facilities to report annually 
detailed information on specified air pollutant emissions and process-
related data to New Jersey, if the facility emits or has the potential 
to emit air pollutants above a specified emissions threshold. New 
Jersey previously submitted Subchapter 21 (state effective date 
February 18, 2003) as a SIP revision and EPA approved it on August 2, 
2004 (69 FR 46106). In this action, EPA is acting on two revisions to 
Subchapter 21, one adopted on October 30, 2008 with an operative date 
of December 29, 2008 and the second adopted on March 20, 2009 with an 
operative date of May 19, 2009.
    The October 30, 2008 revision incorporated changes to the 
definition of volatile organic compounds (VOC) in section 21.1. The new 
definition excludes tertiary butyl acetate or t-butyl acetate (TBAC) 
from VOC emissions limitations or VOC content requirements, but 
requires that TBAC be considered a VOC for purposes of recordkeeping, 
emissions reporting, photochemical dispersion modeling and inventory 
requirements. EPA evaluated New Jersey's revised VOC definition for 
consistency with the Act, EPA regulations, and EPA policy. The revised 
definition of VOC as used in the

[[Page 21207]]

above rules is consistent with EPA's definition in 40 CFR 51.100(s). 
EPA is proposing to approve this revision.
    The March 20, 2009 version incorporates changes to sections 21.1 
and 21.5 that require owners/operators of VOC stationary storage tanks 
with floating roofs to provide additional emission information 
concerning roof landing operations.
    EPA evaluated New Jersey's revisions for consistency with the Act, 
EPA regulations, and EPA policy and proposes to approve them.

II. Conclusion

    Both Subchapters 16 and 19 contain provisions which require case-
by-case RACT determinations to be submitted as SIP revisions. These 
case-by-case RACT determinations are needed to fulfill the RACT 
requirement of section 182 of the Act. The State is in the process of 
evaluating these determinations for approval and therefore has not yet 
submitted them as SIP revisions. EPA would normally propose to 
conditionally approve this SIP revision as meeting the RACT requirement 
pending New Jersey's submission and EPA's approval of the case-by-case 
RACT determinations. However, based on information provided by New 
Jersey, the quantity of NOX and VOC emissions relevant to 
these determinations is below 5 percent of the stationary source 
baseline of emissions which is what EPA considers to be de minimis. 
Therefore, pursuant to EPA guidance,\5\ EPA is proposing to approve 
Subchapters 16 and 19. The remaining element needed to fulfill the VOC 
RACT requirement is New Jersey's Subchapter 26, which New Jersey 
submitted to EPA on April 9, 2009, as a SIP revision and which EPA is 
currently reviewing.
---------------------------------------------------------------------------

    \5\ ``Approval Options for Generic RACT Rules Submitted to Meet 
the non-CTG VOC RACT Requirement and Certain NOX RACT 
Requirements,'' November 7, 1996.
---------------------------------------------------------------------------

    Therefore, EPA evaluated New Jersey's submittal for consistency 
with the Act, EPA regulations and policy. The proposed new control 
measures will strengthen the SIP by providing additional 
NOX, SO2, fine particulate, and VOC emission 
reductions. Accordingly, EPA is proposing to approve the revisions to 
Subchapters 4, 10, 16, 19 and related revisions to Subchapter 21, as 
adopted on March 20, 2009, except that EPA is continuing to not act, 
for the reasons explained above in this rulemaking, on the phased 
compliance plans by repowering and innovative control technology in 
sections 19.21 and 19.23, respectively. In addition, EPA is proposing 
to delete 40 CFR 52.1576, relating to a prior finding that 
NOX RACT was not included in the New Jersey SIP.

III. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. 
Accordingly, this action merely approves state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
because the SIP is not approved to apply in Indian country located in 
the state, and EPA notes that it will not impose substantial direct 
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental 
relations, Nitrogen dioxide, Ozone, Particulate matter, Reporting and 
recordkeeping requirements, Sulfur oxides, Volatile organic compounds.

    Authority:  42 U.S.C. 7401 et seq.

    Dated: April 14, 2010.
Judith A. Enck,
Regional Administrator, Region 2.
[FR Doc. 2010-9463 Filed 4-22-10; 8:45 am]
BILLING CODE 6560-50-P
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