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# 39 ) IV-H-6 5 Docket Number: 

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PM Sheet 39of 107P. 2 IV- H-& 5


### UnitedState s Department o f Energ y Officeo f theDeput

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I- d 9IE8-9IB-E0 i st^ O ' S 99 1 e6*:S 0 30 ZZ AO WP. 3

Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 regulation s w e promulgate di n 1980 , yo u ma ymodify , o r eve n completel yreplace , o r add , emission s unit s withou t obtainin g a majo r NS R permit ^ s o lon g a s "actua l emissions " d o no t increas e bya significan t amoun t ove r baselin e level s a t th e plan t a s a whole . Applicabilit yo f th e majo r NS R progra mmus t b e determine d i n advanc e o f constructio nan d i s pollutant
specific . I n case s involvin g existin g sources , thi s require s a pollutant-by-pollutan t determinatio no f th e emission s change ^ i f any, tha t wil l resul t fro mth e physica l o r operationa l change . Ou r 198 0 regulation s implementin g th e PS D an d nonattainmen t majo r NS R program s thu s inquir e whethe r th e propose d chang e constitute s a "majo r modification, " tha t is , a pnn-ay^jj4^rnpby. s i r^ l chang e o r chang e i n th e metho d o f operatio n"tha t woul dresul t i n a significan t ne t emission s increas e o f anypollutan t subjec t t o regulatio nunde r th e Act. " A"ne t emission s increase " i s define d a s th e increas e i n "actua l emissions " fro mth e particula r physica l o r operationa l chang e (takin g int o accoun t th e us e o f emission s contro l technolog yan d restriction s o n hour s o f operatio no r rate s o f productio n wher e suc hcontrol s an d restriction s ar e federall y enforceable) , togethe r wit hyou r othe r contemporaneou s 1 2

Z-d 9IE8-9TB-E0 Asi; o ' S ss~l BQS:S 0 2 0 2 2 *°UP. 4

Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 increase s o r decrease s i nactua l emissions. 4 I norde r t o trigge r applicabilit yo f th e majo r NS Rprogram , th e ne t emission s increas e mus t b e "significant." 5 Ou r existin g regulation s generall ydefin e b^a-solino-^— ' actua l emission s a s "th e averag e rate , i ntpy , a t whic hth e uni t actuall yemitte d th e pollutan t durin g a 2-yea r perio d whic hprecede s th e particula r dat e an dwhic hi s representativ e o f norma l sourc e operation. " Th e reviewin g authoritie s wil l allo wus e o f a differen t tim e perio d"upo n a determinatio ntha t i t i s mor e representativ e o f norma l sourc e operation. " W e hav e historicall yuse dth e 2 year s immediatel yprecedin g th e propose dchang e t o establis ht-ho
baselinel . However , i nsom e case s w e hav e allowe dus e o f an earlie r period . Wit hrespec t t o change s a t existin g sources , a predictio n.o

f whethe r th e physica l o r operationa l chang e a. JaHr-T XJ

4 '"Inapproximat e terms , "contemporaneous " emission s increase s o r decrease s ar e thos e tha t hav e occurre dbetwee n th e dat e 5 year s immediatel yprecedin g th e propose dphysica l o r operationa l chang e and th e dat e tha t th e increas e fro m th e chang e occurs . -fSee , fo r example , §52.2 1 (b. ) (3 ) (ii ) .-J5 *"-Onc e a modificatio ni s determine dt o b e major , th e PS D requirement s appl yonl yt o thos e specifi c pollutant s fo r whic hther e woul d b e a significan t ne t emission s increase . fSee , fo r example , §52.21(j)(3 ) (BACT ) an d§52.21(m)(1)(b ) (ai r qualit yanalysis ) .-J1 3

£- d 9T£8-3I6-E0 £ ST^ Q - S aa~ | BQg.g o 2 0 2 2 ^ WP. 5

Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 determinin g "baselin e actua l emissions. " Tha t is , th e relevan t terminolog yfo r calculatin g a post-modifiedtio n (change ) pre-chang e emission s increa-s- e fo r mos t application s i s no w^baselin e actua l emissions ^ rathe r tha nfactua l emissions. ^ Yo u ma yus e an yconsecutiv e 24-mont hperio di n th e pas t 1 0 year s t o determin e you r baselin e actua l emissions . Second , w e ar e supplementin g th e existin g

" actual-to-poteritial"acrt:ual-to-potentia l applicabilit ytes t wit ha n" ac t ual--to
- p mjected-actual " actual-to-pr o jected

actua l applicabilit ytes t fo r determinin g i f a non-roufej^ e physica l o r operationa l chang e a t a nexistin g emission s uni t wil l resul t i na nemission s increase . Notwithstandin g th e ne wtest , yo u wil l stil l hav e th e abilit yt o conduc t a n "actual—to-potential"actual-to-potentia l typ e tes t withi n th e ne w"-act-ira-l—to-pro j acted—actual" 1 actual-to-proiected

actua l applicabilit ytest . I nthi s case , yo u wil l no t b e subjec t t o certai nrecordkeepin g requirement s tha t woul d otherwis e apply . Fo r EUSGUs , w e ar e makin g severa l change s t o th e existin g procedure s an d ar e codifyin g ou r curren t polic yfo r calculatin g th e baselin e actua l emissions . Tha t is , th e baselin e actua l emission s fo r EUSGU s i s th e averag e rate , i n tons— p&r —ye-crertpy , a t whic htha t th e uni t actuall yemitte d 2 0

V' d 9IE8-9I6-E0Z . sx^ o " S as i BDS=S D 2 0 2 2 no wP. 6

Interna lan dDeliberativ eDraft

- D o no t quote , cite , copy , o r distribute . Novembe r

19 , 200 2 t h epollutan t

durin g a2-yea r

(consecutiv e24-month ) perio d withi nth e5-yea r perio dimmediatel yprecedin g whe nth e owne r o r operato r

begin s actua lconstruction . W ear eals o retainin g th eoptio ntha t allow s th eus eo f adifferen t

tim e perio di f

th ereviewin g authorit ydetermine s i t i s mor e representativ eo f norma lsourc eoperation . 2 . CM AExhibi t

B A s describe d i nsectio n1^ . C i . 1
—above , w e hav e decide d t o adop t a nactual-to-ifitfnyg:-actua l methodology , combine d wit ha revise d proces s t o determin e baselin e emissions , t o us e i ndeterminin g whe nsource s ar e considere dt o hav e mad e a modificatio nan d ar e thereb ysubjec t t o NSR . T-b^refere K \$e ajte_

= aejfc=-a<i6pt±ii2 j th e methodolog ybase do npotentia l emission s a s discusse d i nth e CMAExhibi t B proposal . Se e sectio nII I o f thi s preambl e fo r a discussio no f th e comment s w e receive d o nthi s proposa l an dou r responses . 3 . Plantwid e Applicabilit yLimitation s APA L i s a voluntar yoptio ntha t wil l provid e yo u wit h th e abilit yt o manag e facility-wid e emission s withou t triggerin g majo r NS Rreview . W e believe-tha t th e adde d flexibilit yprovide d unde r a PA L wil l facilitat e you r abilit yt o respon d rapidl yt o changin g marke t condition s whil e enhancin g th e environmenta l protectio nafforde dunde r 2 1

S* d9TE8-9I6-E0 £ si^ O ' S ss" l eoS^S O 2 0 2 2 no wP. 7

Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 wor k practic e requirement s i nth e permi t fo r th e uni t tha t wer e adopte d i nconjunctio nwit hBAC T o r LAE Ran dth e projec t woul d no t alte r anyphysica l o r operationa l characteristic s tha t forme d th e basi s fo r th e BAC T o r LAE R determination . I f th e projec t cause s th e nee dfo r a chang e i nth e emissio nlimitation s o r wor k practic e requirement s i n th e permi t fo r th e uni t adopte d i nconjunctio nwit hBAC T o r LAE Ro r woul d alte r anyphysica l o r operationa l characteristic s tha t forme dth e basi s fo r th e BAC T o r LAE R determination , yo u los e th e Clea nUni t status . Yo u ma y stil l procee d wit hth e projec t withou t triggerin g majo r NS R review , i f th e increas e i s no t a significan t ne t emission s increase . Emission s unit s tha t hav e no t bee nthroug hmajo r NS Rma ystil l qualif yfo r Lh e Clea nUni t dfe-s-i g nation s ta t u s i f the ydemonstrat e tha t th e emission s contro l leve l i s mission s contro l l e comparabl e t o BAC T o r LAER . Thi c QYrlngiQtt-wouldwil l b e 

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## — vali d fo r u p t o a 10-yea r period . Th e ne wapplicabilit y tes t doe s no t exclud e consideratio no f physica l change s o r change s i nth e metho d o f operatio no f Clea nUnit s fro mmajo r NSR , bu t rathe r change s th e wa yemission s increase s ar e calculate d fo r thes e changes . Thi s ne wapplicabilit ytes t therefor e protect s ai r quality , create s incentive s fo r source s t o instal l state-of-the-ar t controls , provide s 2 3

9" d9IE8-9T6-E0 £ SI^ Q - S aa-\ eiS^S O 2 0 2 2 no wP. 8

Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 clarif ytha t yo u mus t obtai na permi t befor e yo u begi n constructio n(includin g for:modifications) , tha t th e provision s appl yfo r eac hregulate dNS R pollutan t tha t you r sourc e emits , an d tha t th e provision s appl yt o an ysourc e locate d i n th e are a designate da s attainmen t o r unclassifiabl e (fo r §^dr§ § 51.16 6 an d £52^.21) . W e hav e als o .adde d a ne wdefinitio nfo r reviewin g authorit ytha t clarifie s wh o ha s authorit yt o implemen t majo r NS R programs . Reviewin g authorit ymean s th e Stat e ai r pollutio ncontro l agency , loca l agency , othe r Stat e agency , o r othe r agenc yauthorize d b yth e Administrato r t o carr you t a permi t progra munde r p a r t 5—§-5ir§ § 51.16 5 an d §J 1-5J L .1 6 6 , o r th e Administrato r i n th e cas e o f EPA-implemente d permi t program s unde r §52.21 . 7 . Enforcemen t A s note d above , toda yw e ar e takin g fina l actio no n fiv e change s t o th e NS R progra mtha t creat e alternativ e mean s o f determinin g NS R applicabilit yfo r project s tha t begi nactua l constructio nafte r thes e provision s becom e effectiv e i n you r jurisdiction . I f yo u ar e subsequentl y determine d no t t o hav e me t anyo f th e obligation s o f thes e ne walternative s -fo r example , failur e t o mee t emission s o r applicabilit ylimits , properl yprojec t emissions , and/o r 2 8

L . d 9IE8-9IG-E0 ^ S T^ 0 " S se i eiS^S O 2 0 2 2 «° WP. 9

« . Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 properl yimplemen t th e PC P Exclusio no r Clea nUni t Test , yo u wil l b e subjec t t o anyapplicabl e enforcemen t provision s (includin g th e possibilit yo f citizens ' suits ) unde r th e applicabl e section s o f th e Act . Sanction s fo r violation s o f thes e provision s ma yinclud e monetar ypenaltie s o f up t o $27,50 0 pe r da yo f violation , a s wel l a s th e possibilit yo f injunctiv e relief ^ whic hma yinclud e th e requiremen t t o instal l ai r pollutio ncontrols . Tt—- \ <^-"*- \ » a . - , 

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- LP\**"^*°\U~<^ vt* ^ \ 1 ' • I nmos t cases , a nemisgdTonlimitation , operatin g .p restriction. , o r othe r requiremen t mus t b e bot hlegall yan df . ^ t practically\enforceabl ybyth e Administrator , o r a State , loca l o r triba l ai r pollutio ncontro l agency . A"legall y enforceable " /reauiromon t mcaiij . Lh<a t som e authorit yha s th e righ t t o enforc e \h e restriction . Practica l enforceabilit y fo r a source-specifV c permi t mean s tha t th e permit' s provision s mus t specify : (l)' Atechnically-accurat e limitatio nan d th e portion s o f th e sourc e subjec t t o th e limitation ; (2 ) th e tim e Verio dfo r th e limitatio n(hourly , daily , monthly , an d annualVimit s suc ha s rollin g annua l limits ) ; and (3 ) th e metho d A o determin e complianc e includin g appropriate.monitoriVg , recordkeeping , an d reporting . Fo r rule s an dgenerav l permit s tha t appl yt o categorie s o f sources , practicabl e enforceabilit y

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B- d 9IE8-9I6-E0 £ si; D " S 33 1 BIS:S D 2 0 2 2 AO WP.1 0

Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 additionall yrequire s that " the , provisions : 11) identif yth e type s o r categorie s o f source s tha t ar e covere db yth e rule ; (2 ) wher e coverag e i s optional , provid e fo r notic e t o th e permittin g authorit yo f th e source' s electio nt o b e covere d byth e rule ; an d ( 3 ) \ specif yth e enforcemen t consequences , relevan t t o th e rule. V T-e&aijJ-s—

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practica l enforc^abili-Ly- . ^- JA. .f&_j{" "

federall yenforceable . "FederalXenforceability " mean s tha t no t onl y i s a describe d ab o righ t t o en f o reouiremen t practic a

^e , rc e bu t i naddition . restriction s an d ll venforceable . "EVAmus t hav e a limitation s a s direc t impose d o na

7 Se e memorandum , "Releas e o f Interi mPolic yo nFedera l Enforceabilit yo \ Limitation s o nPotentia l t o Emit, " signe d byJoh nSeit z and\ Rober t Va nHeuvelen , Jan . 22 , 199 6 a t 5- 6 an d Attachmen t 4, \available o nth e We ba s http://www.epa.gov/rgytgrnj/programs/artd/air/title5/t5memo s /pottoem i . pd f . Mors e detaile d guidanc e o npractica l enforceabilit yi s cbntaine d i nth e memorandum . \ \ s Th e Agenc yha s frequentl yuse dth e ter m"practicabl y enforceable " an d "practical " enforceability, " interchangeably . Theire i s n o differenc e i nth e meanin g o f thes e terms . \ * 3 0

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Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 sourc e t o limi t it s exposur e t o Ac t programs. " 9 J J?o r computin g baselin e actua l emission s fo r us e i ndetermining ; majo r NS Rapplicabilit yo r fo r establishin g a PAL , vo u mus t „ conside r "legall yenforceable " requirements . ¥-ha t -arts-, th e Administrator , jState , loca l o r triba l ai r pollutio ncontro l agenc yha s th V

authorit yt o enforc e th e requiremen t irrespectiv e of\it s practica l enforceability . ,Inou r existin g regulation s tha t ar e unamende dby todavX s action , th e ter m"federall yenforceability " stil l appear^ . I n1995 , th e cour t i nChemica l Manufacturer s Ass' n V . EP A prograi r B e r u i s i n caus e les , no t th e remande d i \ o th \ th e i n Fe d EPA . e co u ter m s f te c era \ th e definitio n

No. 8 9-151 4 ( D r t vacate d th e . o f PT E .C . Ci r i nth e

a SeP t a majo r NS R

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yState , o r loca l ai r r.r. 1 1 n-t-Tg nagency. " Th e court ' s remand , hwever , di dno t affec t SI P requirements ^ "'"hVi' i ^-hi s ti? TM y i T 1 continu e t o ^-
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9 Se e generall ymemorandum , "5ption s fo r Limitin g th e Potentia l t o Emi t (PTE ) o f a Stationar ySourc e Unde r Sectio n 11 2 an d Titl e V

o f th e Clea nAi r \ct, " signe dbyJoh nSeit z and Rober t Va nHeuvelen , Jan . 25 , 1995 , a t 2-3 . 3 1

0 1 'o l 9TE8-9IB-E0ii , st-i O " S 3B- | B2S=S 0 2 0 2 2 AOK JP.1 2

Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 iffr-pla nrequirements^

- II . Revision s t o th e Metho dfo r Determinin gWhethe r a Propose dModificatio nResult s i na Significan t Emission s Increas e A . Introductio n Toda yw e ar e finalizin g tw o set s o f amendment s t o our . existin g majo r NS R regulation s tha t provid e anothe r wa yi n whic hyo u ma ycalculat e emission s increase s t o determin e whethe r certai ntype s o f physica l change s o r change s i n th e metho d o f operatio n(physica l o r operationa l changes ) o f a n existin g emissions•uni t —trigge r the
—majo r NS R requirements. 1 0 Th e firs t se t o f amendment s relate s t o th e wa yi n whic hyo u wil l determin e you r baselin e actua l emission s fo r suc hemission s unit s i n accordanc e wit ha ne w definitio no f "baselin e actua l emissions. " See , fo r example , ne w§52.2 1 (b ) (48 ) . W e wil l b e allowin g yo u t o us e anyconsecutiv e 24-mont hperio d durin g th e 10-yea r perio d prio r t o th e chang e t o determin e you r baselin e actua l

1 0 B ydefinition , th e modificatio no f a n existin g sourc e i s potentiall ysubjec t t o majo r NS R onl yi f tha t existin g sourc e i s "major. " I n addition , whe na n existin g "minor " sourc e make s a physica l o r operationa l chang e tha t byitsel f i s major , tha t chang e constitute s a majo r stationar ysourc e tha t i s subjec t t o majo r NSR . -fSee , fo r example , 4- 0 CF R S3-S52..2 1 (b ) (1 ) (c ) - t 3 2

T T - d 9TE8-9IG-E0Z . *?* 0 " S " ! e 2 S : S 0 2 D 2 2 *°K JP.1 3

Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 emission s fo r existin g emission s unit s (othe r tha nEUSGUs ) . Th e secon d se t o f amendment s replace s th e existin g "actual
to-potential"actual-to-potentia l and "actual—to — representative—actual—annualactual-to-representative-actual

annua l emissions ^ applicabilit ytest s fo r existin g emission s unit s (includin g EUSGUs ) wit ha n" actual—t u uiojecLt:d

actual"actual-to-projected-actua l applicabilit ytes t fo r determinin g i f a physica l o r operationa l chang e wil l resul t i na nemission s increas e a t suc hunits. 1 1 (Notwithstandin g thi s ne wtest , th e actual-to-potentia l methodolog yi s stil l availabl e a t you r optio nunde r th e ne wapplicabilit ytests. ) Th e ne wprocedur e fo r determinin g you r pre-chang e baselin e actua l emission s wil l no t appl yt o EUSGUs. 1 2 Instead , fo r

1 1 Throughou t "thi s praaffirHja i t i s assume dtha t th e physica l chang e or./chang^in/Cn e metho d o f ope^tTb^^^^/non^-roTlitin e chang e o r i s no t otherwis e exfesip^r^ a fro mrevie wa s a modification . 1 2 Fo r NS Rpurposes , the , definitio no f "electri c utilit y stea mgeneratin g unit " mean s anystea melectri c generatin g uni t tha t i s constructe dfo r th e purpos e o f supplyin g mor e tha none-thir d o f it s potentia l electri c outpu t capacit yand mor e tha n2 5 MWelectrica l outpu t t o anyutilit ypowe r distributio nsyste mfo r sale . An ystea msupplie dt o a stea m distributio nsyste mfo r th e purpos e o f providin g stea mt o a steam-electricstea melectri c generato r tha t woul dproduc e electrica l energ yfo r sal e i s als o considere di ndeterminin g th e electrica l energ youtpu t capacit yo f th e affecte d facility . -fSee , fo r example , 4 0 CF R52552.21(b ) (31 ) . r Referenc e i nthi s notic e t o utilit yunit s i s mean t t o includ e al l emission s unit s covere dbythi s definition . 3 3

2 1 - d 9TE8-9IG-E0 A sil O " S se n B2S:S 0 2 D 2 2 AOK JInterna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 determination . Unde r thi s approach , i ncircumstance s wher e ther e i s a reasonabl e possibilit ytha t a projec t tha t i s no t par t o f a majo r modificatio nma yresul t i na significan t increas e o f a regulate d NS Rpollutant , befor e beginnin g actua l construction , srri—owner—or—operator—whro—uses—this 

### (JUtrVL metho d mustyo u ma ycJLxeg e t o mak e an drecor da projectio no f / \ == = futurepost-chang e emission s o f tha t pollutan t fro mchange d units . 1. 3 T o mak e thi s projection , the—owner—or—operator—wouldyo u mus t us e th e maximu mannua l rat e a t whic hth e modi-fied—uni t orchanqe d unit s ar e projecte d t o emi t th e pollutan t i nany o f th e 5 calenda r year s followin g th e tim e th e uni t resume s regula r operation s afte r th e projec t (o r 1 0 year s i f th e projec t increase s th e unit' s desig ncapacit yo r potentia l t o emi t th e regulate d NS Rpollutant ) . Th e owner—oi—operatorYo u the nuses - thes e projection s t o calculat e whethe r th e projec t wil l resul t i na significan t emission s increase . I nmakin g thi s calculation , tli e owner—o r operator—wouldyo u coul d exclud e an yemission s tha t th e uni t coul dhav e accommodate d

1 5 Not e tha t w e plan , i nth e nea r future , t o issu e a Notic e o f Propose d Rulemakin g tha t wil l addres s th e issu e o f "debottlenecking. " I ntoday' s rulemaking , w e d o no t inten d t o chang e curren t requirement s relate dt o "debottlenecking. " Us e o f th e ter m

"change dunit " shoul dno t b e interprete da s a chang e t o thos e requirements . 3 7

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Interna l an d Deliberativ e Draft
- D o no t quote , cite , copy , o r distribute . Novembe r 19 , 200 2 hav e require d yo u t o tak e int o accoun t an ylegall y enforceabl e constraint s impose d o nth e facilit ysinc e th e selecte d 12-mont htim e frame , an d currentl yi neffect . Thus , yo u woul d generall yhav e bee nrequire dt o calculat e th e modifie d emission s unit' s baselin e actua l emission s by usin g th e appropriat e utilizatio nleve l fro mth e selecte d 12-mont hperiod , i ncombinatio nwit hth e emission s unit' s curren t enforceabl e emissio nfactors . Suc henforceabl e emissio nfactor s woul d hav e include dcurren t Federa l an d Stat e limits , suc ha s RAC T (Reasonabl yAvailabl e Contro l Technology) , MAC T (MaximumAchievabl e Contro l Technology) , BACT , LAERj

_an d Ne wSourc e Performanc e Standard s (NSPSJL , a s wel l a s efrforotrabl Gor ' f QdoraJrJf yenforceabl e limit s resultin g fro manyvoluntar yreduction s yo u ma yhav e take n (fo r example , fo r netting , offsets , o r Emissio nReductio n ^Credit s (ERCs) ) - Also , yo u woul dhav e ha dt o conside r any operationa l constraint s tha t ar e enforceable-iffs— a -practica l matter , suc ha s productio nlimits , fue l us e limits , o r limit s t o th e numbe r o f hour s pe r da yo r day s pe r yea r a t whic hth e uni t modified , o r affecte db ysuc hmodification , coul d operate . Finally , w e indicate d tha t i t wa s no t ou r inten t t o exten d th e 5-yea r contemporaneou s perio d(fo r considerin g 4 3

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