UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
REGION III 1650 Arch Street Philadelphia, Pennsylvania 19103

- 2029



### DATE: 03/29/12



### SUB JECT: Approval and Promulgation of Air Quality Implementation Plans;

Pennsylvania; Nonattainment New Source Review Rules

– Technical Support

Document



### FROM: Gerallyn Duke

Office of Permits and Air Toxics Review



### TO: Kathleen Cox , Associate Director

Office of Permits and Air Toxics Review

I. BACKGROUND

On August 9, 2007, t he Pennsylvania Department of Environmental Protection (PADEP) submitted a State Implementation Plan (SIP) revision request, pertaining to Pennsylvania’s

n onattainment New Source Review (NSR) program. This SIP revision is intended to update the
state’s nonattainment NSR regulations to meet the 2002 NSR Reform measures, make clarifying changes to certain nonattainment NSR provisions and to satisfy the requi rements of a recent decision by the United States Court of Appeals for the District of Columbia ( D

. C

. Circuit Court ) regarding antibacksliding ( South Coast Air Quality Management District v EP A (South Coast) ) 1

.

2002 NSR Reform

On December 31, 2002 (67 FR 80186), EPA published final rule changes to 40 Code of Federal Regulations (CFR) parts 51 and 52, regarding the CAA’s PSD and nonattainment NSR programs. On November 7, 2003 (68 FR 63021), EPA published a notice of final action on the
reconsideration of the December 31, 2002, final rule changes. The December 31, 2002, and the November 7, 2003, final actions are collectively referred to as the ‘‘2002 NSR Reform Rules.’’

The 2002 NSR Reform Rules are part of EPA’s implementation of parts C and D of title I of the CAA, 42 U.S.C. 7470

– 7515. Part C of title I of the CAA, 42 U.S.C. 7470

– 7492, is the PSD

program, which applies in areas that meet the National Ambient Air Quality Standards (NAAQS)

— ‘‘attainment’’ areas

— as well as in areas for which there is insufficient information
to determine whether the area meets the NAAQS

— ‘‘unclassifiable’’ areas. Part D of title I of the CAA, 42 U.S.C. 7501

– 7515, is the nonattainment NSR program, which applies in areas that

1 In 2006, the United States Court of Appeals for the District of Columbia Circuit found in et al, 472 F.3d 882 (D.C. Cir 2006) that NSR is a control measure and to weaken its requirements under the SIP would constitute impermissible backsliding under the CAA.2

are not in a ttainment of the NAAQS

— ‘‘nonattai nment’’ areas. Collectively, the PSD and
nonattainment NSR programs are referred to as the ‘‘New Source Review’’ or NSR programs.

EPA regulations implementing these programs are contained in 40 CFR 51.165, 51.166, 52.21, 52.24, and part 51, appendix S. T he CAA’s NSR programs are preconstruction review and permitting programs applicable to new and modified stationary sources of air pollutants regulated under the CAA. The NSR programs of the CAA include a combination of air quality planning and air polluti on control technology program requirements. Briefly, section 109 of the CAA, 42 U.S.C. 7409, requires EPA to promulgate primary NAAQS to protect public health and secondary NAAQS to protect public w elfare. Once EPA sets those standards, states must develop, adopt, and submit to EPA for approval a SIP that contains emissions limitations and
other control measures to attain and maintain the NAAQS. Each SIP is required to contain a preconstruction review program for the construction and modification of any stationary source of air pollution to assure that the NAAQS are achieved and maintained; to protect areas of clean air; to protect air quality related values (such as visibility) in national parks and other areas; to assure that appropriate emissions controls are applied; to maximize opportunities for economic development consistent with the preservation of clean air resources; and to ensure that any
decision to increase air pollution is made only after full public consideration of the consequences of the decision.

The 2002 NSR Reform Rules made changes to five areas of the NSR programs. In summary, the
2002 Rules: (1) Provide a new method for determining baseline actual emissions;( 2) adopt an
actual

- to

- projected actual methodology for determining whe ther a major modification has occurred; (3) allow major stationary sources to comply with PALs to avoid having a significant
emissions increase that triggers the requirements of the major NSR program; (4) provided a new applicability provision for emission s units that are designated clean units (Clean Unit test) ; and (5) excluded pollution control projects (PCPs) from the definition of ‘‘physical change or change
in the method of operation.’’ On November 7, 2003 (68 FR 63021), EPA published a notice of
final action on its reconsideration of the 2002 NSR Reform Rules, which added a definition for ‘‘replacement unit’’ and clarified an issue regarding PALs.

After the 2002 NSR Reform Rules were finalized and effective (March 3, 2003), industry, state,

a nd e nvironmental petitioners challenged numerous aspects of the 2002 NSR Reform Rules,

a long with portions of EPA’s 1980 NSR Rules (45 FR 52676, August 7, 1980). On June 24, 2005, the United States Court of Appeals for the District of Columbia (D.C. Circuit Co urt) issued a decision on the challenges to the 2002 NSR Reform Rules. New York v. United States , 413 F.3d 3 (D.C. Cir.2005) (also called New York I )

. In summary, the D.C. Circuit Court vacated portions of the rules pertaining to clean units and PCPs, remanded a portion of the rules regarding recordkeeping and the term ‘‘reasonable possibility’’ found in 40 CFR 52.21(r)(6) and 40 CFR 51.166(r)(6), and either upheld or did not comment on the other provisions included as
part of the 2002 NSR r r eform Rule s.

On June 13, 2007 (72 FR 32526), EPA took final action to revise the 2002 NSR Reform Rules to
remove from federal law all provisions pertaining to clean units and the PCP exemption that were vacated by the D.C. Circuit Court. With regard to the remanded portions of the 2002 NSR
Reform Rules related to recordkeeping, on December 21, 2007, EPA took final action to
establish that a ‘‘reasonable possibility’’ applies where source emissions equal or e xceed 50 percent of the CAA NSR significance levels for any pollutant (72 FR 72607). The ‘‘reasonable3

possibility’’ provision identifies for sources and reviewing authorities the c ircumstances under which a major stationary source undergoing a modification that does not trigger major NSR must keep records

. The 2002 NSR Reform Rules require that state agencies adopt and submit revisions to their SIP permitting programs implementing the minimum program elements of the
2002 NSR Reform Rules no later than January 2, 2006. (Consistent with changes to 40 CFR 51.166(a)(6)(i), state agencies are now required to adopt and submit SIP revisions within three years after new amendments are published in the Federal Register.) State agencies may meet the requirements of 40 CFR part 51 and the 2002 NSR Reform Rules wit h different but equivalent regulations.

Antibacksliding

On April 30, 2004 EPA published the “ Phase 1 Rule t o Implement the 8

- Hour Ozone National Ambient Air Quality Standard ” (69 Fed. Reg. 23,951) which, among other things, allowed areas that had a high er nonattainment classification under the one

- hour ozone standard to impose the NSR requirements of the new, less stringent eight hour classification. In Pennsylvania, for instance, the classification for the Philadelphia ozone nonattainment area changed from serious under the one hour standard to moderate under the eight hour standard. The Phase I rule was subsequently challenged on a number of points, including the NSR provisions and the D.C.
Circuit Court determined i n S outh Coas t

, th at all o ne

- hour ozone NAAQS major NSR requirements must remain in place until an area has attained the one hour standard

.

II. SUMMARY OF ACTION

On August 9, 2007, PADEP submitted a SIP revision request to the EPA Region III. The August 9, 2007 SIP revision request amends 25 Pa. Code Section 121.1 (relating to definitions) and 25
Pa. Code Chapter 127 (relating to construction, modification, reactivation and operation of sources). P ublic hearings were held on June 6, June 13, a nd June 19, 2006. These rules were adopted by the Pennsylvania Environmental Quality Board on February 20, 2007 and became effective May 19, 2007.

This approval action will revise the previously

- approved version of Pennsylvania’s
nonattainment NSR rules as approved into the Pennsylvania SIP on December 9, 1997 (62 FR 64722). The state has adopted an automatic incorporation by reference of federal PSD rules at §52.21, in its entirety , which was approved as part of the SIP on June 18, 19 83 . This SIP
revision takes no action on the state’s PSD program.

III. EVALUATION

EPA last took action on the NSR provisions of the Pennsylvania SIP on December 9, 1997

. At that time EPA approved a wholesale revision of the state’s pre

- construction permitting program and included new and revised subchapters A, B, C and E. Pennsylvania had adopted the new rules in response to the 1990 Clean Air Act Amendments (CAAA) requirement to submit new NSR pr ograms addressing §182. The only subchapter that was not revised was subchapter D

– the state’s PSD program.4

The approved 1997 SIP revision created a framework whereby a ll sources, except those specifically exempt, must comply with the general require ment to obtain a “plan approval” prior to construction as outlined in subchapters A and B. These subchapters are generally considered the state’s minor NSR program covering minor sources as well as minor changes at major

sources. M ajor sources are subjec t to the additional requirements of subchapters D (PSD) and E (nonattainment NSR). Subchapter E also includes additional provisions relating to minor changes at major sources for ozone precursors (NOx and VOCs)

. T he latter require s facilities to

aggrega te de minimis increases over a specified period of time. Once the net emissions increase (creditable decreases can be used to net over the period of aggregation) equal s or exceed s the significance threshold for the area, the facility is required to offset the increase at a ratio
commensurate with the area’s classification. De minimis changes are not subject to a technology requirement such as LAER or BACT. Finally, the 1997 SIP revision established t he state’s banking and trading emissions offset program

.

The 2007 SIP revision retains the currently approved framework for the state’s minor and major NSR program but updates the program to incorporate NSR Reform elements in the nonattainment NSR provisions, includes antibacksliding measures, and makes oth er clarifying rule changes.

NSR Reform Elements

Prior to NSR Reform, emission increases associated with a physical change or change in the method of operation at an existing major source were calculated by comparing past actual
emissions with the facilit y’s potential to emit after the change, com monly referred to as the
actual

- to

- potential test 2

. In general, NSR Reform allow s facilities to choose between the traditional test and a new test that would compare past actual emissions to a projection of future actual emissions, so long as the facility ma kes those projections based on realistic and reliable
information. In addition , the facility would not be required to establish the projected emissions as an enforceable emissions limit. The latter is commonly referred to as an actual

- to

- actual test.

As noted above, NSR Reform was challenged on all fronts, including the applic ability provisions
related to the actual

- to

- actual test and , of importance to the Pennsylvania SIP, the Clean Unit
test. The Clean Unit test would have allowed facilities that had installed state of the art pollution controls within the past 10 years to a void triggering NSR even when it would be clear that actual
emissions would increase. The D.C. Circuit rejected the Cle an Unit test on the grounds that “the CAA unambiguously defines “increases” in terms of actual emissions.” In its concluding paragraph on the matter, the Court opined that:

Therefore, because the plain language of the CAA indicates that Congress intended to apply NSR to changes that increase actual emission instead of potential or allowable emissions, we hold that EPA lacks the authority to promulgate the Clean Unit provision,

2 In 1992, EPA promulgated regulations that created special rules for physical and operational changes at elect ric generating units (EGUs). ( 57 FR 32314). These rules are commonly called the WEPCO rule because they were
prompt ed by litigation involving the W isconsin Electric Power Company (WEPCO). In those regulations, EPA adopted an actual

- to

- future

- actual methodology for all changes at EGUs except for construction of new units or the replacement of existing units.5

and we vacate that portion of the 2002 rule, 67 Fed. Reg. at 80 ,279

- 83 (codified at 40
C.F.R. § 52.21(x)) as contrary to the statute under Chevron Step 1.

Pennsylvania’s approved 1997 SIP rules allow sources to determine nonattainment NSR applicability based on a comparison of past “maximum allowable emissions” emissions to future
“maximum allowable emissions

. ” In other words, it allow s facilities to use a potential

- to

potential test to determine NSR applicability. This methodology applies to both the applicability test for major NSR as well as in calculating de minimis increases under their minor NSR provisions for ozone precursors. By any measure, these rules did not c onform to the pre

- Reform
actual

- to

- potential test or to the present, clear mandate of the D.C. Circuit Court in NY I that applicability be based on increases in actual emissions. The 1997 SIP could allow facilities to
make substantial increases in actual emissions without undergoing review and without applying offsets or installing LAER, particularly in nonattainment areas that already have poor air quality. By incorporating NSR Reform elements, adoption of the proposed 2007 SIP revision is a significant strengthening of the SIP and will finally bring Pennsylvania’s program in line with the requirements of the CAA.

Pennsylvania has adopted all of the NSR Reform measures with some modifications. Areas in which Pennsylvania’s regulations differ from th eir federal counterparts include:

Baseline actual emissions (BAE):

The look

- back period for dete rmining BAE is five years for all facilities, but non

- EGUs
may request up to ten years upon a demonstration that a different period is more
representat ive of normal source operation

. BAE do not include emissions associated with
malfunctions . Additionally, the same 2 4

- month period is to be used for all pollutants when multiple units are affected by a project unless a facility can demonstrate that another 24

-

m onth period would be more representative.

P rojected actual emissions (PAE):

P rojected actual emissions must be incorporated into the required plan approval as an emissions limit

.

R easonable Possibility:

The “ reasonable possibility ” provision identifies for sources and reviewing authorities the circumstances under which a major stationary source undergoing a modification that does not trigger major NSR must keep records. The 2002 NSR Reform Rules require that state agencies adopt and submit revisions to their SIP permitting programs implementing the minimum program elements of the 2002 NSR Reform Rules . In the case of the 2007 SIP revision, it wasn’t necessary for Pennsylvania to make any changes based on the reasonable possibility p rovisions because facilities that use projected actual emissions with the result that major NSR is not triggered, are still required to obtain a permit. These permits require all facilities to maintain and report their post

- change emissions.6

AntiBackslid ing :

On April 30, 2004, EPA designated Bucks, Chester, Delaware, Montgomery and Philadelphia Counties in Pennsylvania as moderate nonattainment under the eight

- hour ozone NAAQS and
revoked the one

- hour ozone NAAQS. Under the one

- hour ozone standard, Bucks, Chester, Delaware, Montgomery and Philadelphia Counties had been designated as severe nonattainment.
As a result of South Coast

, all o ne

- hour ozone NAAQS major NSR requirements in

Penns ylvania and in the five

- county Philadelphia area must remain in place. No other areas on Pennsylvania were affected by these antibacksliding provisions.

Summary of Rule Changes :

Many of the definitions in the approved 1997 SIP have been revised and many terms have been
added to accommodate the NSR R eform regulations. In addition, Pennsylv a nia has updated the
text of some definitions and added definitions that have existed in the federal program for some years prior to NSR refo rm.

The following table summarizes the changes to the definitions in Section 121.1

. Unless otherwise noted in the discussion below, all other modifications to definitions are grammatical or citation corrections or otherwise minor changes:

25 PA Code C hapter 121.1 Definitions :

Modified definitions “ BACT

-- best available control technology

, ” “creation

, ”
“de m inimi s emission increase, ” “generation

, ” “major facility

, ” “major modification

, ” “major NOx emitting facility

, ” “major VOC emitting facility

, ” and “secondary
emissions”

New definitions “Actual emissions

, ” “Actual PAL for a major facility

, ”
“air contamination source

, ” “allowable emissions

, ”

“ baseline actual emissions

, ” “begin actual construction

, ”
“commence

, ” “ CEMS

– continuous emissions monitor ing
system

, ” “CERMS

– continuous emissions rate monitoring
system

, ” “CPMS

– continuous parameter monitoring
system

, ” “ creditable emissions decrease

, ” “ deactivation

, ” “electric steam generating unit

, ” “ emissions unit

, ” “fugitive emissions

, ” “federally enf orceable

, ” “major
emissions unit

, ” “necessa ry preconstruction approvals or permits

, ” “ net emissions increase

, ” “PAL

– plantwide applicability limit, ” “PAL effective date,” “PAL effective period

, ” “PAL major modification

, ” “PAL permit

, ” “PAL pollutant

, ” “ PEMS

– predictive emissions monitoring
system

, ” “project

, ” “projected actual emissions

, ” “regulated NSR pollutant

, ” “replacement unit

, ” “repowering

, ” “significant

, ” “significant emissions
increase

, ” “significant emissions unit

, ” “significant net
emissions increase

, ” and “small emissions unit

. ”7

Deleted Definitions “Extreme ozone nonattainment area,” “marginal ozone nonattainment area,” “moderate ozone nonattainment area,” “serious ozone nonattainment area,” and “severe
ozone nonattainment area.”

Except for the revision s made to implement NS R R eform and one

- hour ozone an t i

- backsliding provisions , these definition changes reflect minor word changes (e.g.

, changing “which” to “that”). Pennsylvania has also added terms that are intended to help imple ment their state permit programs in general.

As stated above, State agencies may meet the requirements of 40 CFR part 51 and the 2002 NSR
Reform Rules with different but equivalent regulations. EPA is proposing approval of the following revisions and additions, including definitions for terms that differ from the federal rules. Departures from the 2002 federal rules and EPA’s approval of these deviations are
indicated below.

Section Status Description NSR
Reform?

121.1 Modified

text Added definition of “actual emissions.” Varies from

federal definition in two ways: (1) requires written determination when owner or operator justifies use of a
consecutive 24

- month period different than the 24

- month period immediately preceding normal (2) does not presume that source

- specific allowable emissions for the unit are equivalent to the actual emissions of the unit n o

121.1 Modified

text Added definition of “actual PAL for a major facility”

which conforms with the federal definition o f “actuals
PAL” yes

121.1 Modified

text Added definition of “air contamination source.” This

term is included in Section 3 of Pennsylvania’s Air
Pollution Control Act (APCA) (35 P.S. §4003 ) no

121.1 Modified

text Added definition of “allowable emissions.” Conforms

with federal definition and also adds a fourth requirement that conforms with 40 CFR 51.165(f)(4)(A) to assure that PAL limits are enforceable as a practical

matter no

121.1 Modified

text Added definition of “Baseline actual emissions” (BAE).

Language in definition mirrors that in the federal
definition yes

121.1 Modified

text Added definition of “Begin actual construction” which

conforms with federal definition no8

Section Status Description NSR
Reform?

121.1 Modified

text Added definition of “Continuous emissions monitoring

system (CEMS)” which mirrors the federal definition yes

121.1 Modified

text Added definition of “Continuous emissions rate

monitoring system ” (CERMS) which mirrors the federal
definition yes

121.1 Modified

text Added definition of “Continuous parameter monitoring

system ” (CPMS) which mirrors the federal definition yes

121.1 Modified

text Added definition of “Commence” which pertains to

extensions under §127.13 and conforms to federal
definition no

121.1 Modified

text Modified definition of “Creation” pertaining to emission

reduction credits (ERCs) for emission offset purposes no

121.1 Modified

text Added definition of “creditabl e emissions decrease” in

§121.1

121.1

127.215 Modified

text Added definition of “deactivation.” This term is

included to clarify reactivation requi rements under §127.11a and 127. 215 as well as ERC application procedures under §127.207(2)(i) no

121 .1 Modified

text Modified definition of “de minimis emissions incre ase”

to clarify that a change by itself that is less than significant would be a de minimis emissions increase no

121 .1 Modified

text Added definition of “Electric utility steam generating

unit” which mirrors the federal definition no

121

. 1 Modified

text Added definition of “Emissions unit” which conforms

with the federal definition. As part of definition of “emissions unit,” added definition of “new emissions unit” and “existing emissions unit” both which conform

to federal definition yes

121 .1 Modified

text Added definition of “Federally enforceable” which

mirrors the federal definition no

121.1 Modified

text Added definition of “fugitive emissions” which mirrors

the federal definition no

121.1 Modified

text Modified definition of “generation” to specify that the

term pertains to an owner or operator of an air contamination source, emissions unit or facility with respect to emission reduction credits (ERCs) no9

Section Status Description NSR
Reform?

121.1 Modified

text Added definition of “major emissions unit” which is

used in §127.18(k)(5)(l) for calculating a PAL and
conforms to federal term yes

121.1 Modified

text Added definition of “major facility” which is used in

lieu of and consistent with the federal definition of “major stationary source” in most respects. Two
differences make PA’s definition more inclusive: (1) As
an anti

- backsliding measure, PA includes fu gitive emissions when determining the status of a facility rather than considering fugitive emissions for just the 28 source categories listed in the Federal definition (2)
PA’s lower emissions threshold for CO in nonattainment
areas does not include the f ederal caveat, “where stationary sources contribute significantly to CO levels in the area (as determined in rules issued by the Administrator)

. ” no

121.1 Modified

text Added definition of “major modification

. ” Note the

following differences: (1) Definit ion incl udes in Subpart (ii) a de minimi s increase that would result in exceedence of the significance threshold (2) Temporary clean coal technology demonstration projects are not exempted from the definition.
Definitio n does not include any increases i n VOC
emissions in extreme ozone nonattainment areas as set forth in 40 CFR 51.165(a)(v)(F), but no extreme ozone nonattainment areas are designated in PA. yes

121.1 Modified

text Modified definition of “Major NOx emitting facility” to

ensure that reasonably available control technology (RACT) remains applicable to major stationary sources of NOx and VOCs in Bucks, Chester, Delaware, Montgomery or Philadelphia counties. Facilities in
these counties which emit or h ave the potential to emit
at least 25 tons per year (tpy) of NOx will be considered major facilities and be subject to the requirements applicable to major facilities located in a “severe” nonattainment area of ozone. This provision prevents backsliding r elat ed to revocation of the former one

- hour
ozone standard. Retained former emissions thresholds
for facilities located in extreme and serious nonattainment areas as well as in ozone transport regions. no

121.1 Modified Modified definition of “Major VOC emitting facility” to no10

Section Status Description NSR
Reform?

text ensure that RACT remains applicable to major

stationary sources located in Bucks, Chester, Delaware, Montgomery or Philadelphia counties. These facilities that emit or have the potential to emit at least 25 TPY of
VOCs will be c onsidered major facilities and be subject to the requirements applicable to major facilities located
in a “severe” nonattainment area of ozone. This provision prevents backsliding related to revocation of
the former 1

- hour ozone standard. Retained former
emissions thresholds for facilities located in extreme and serious nonattainment areas as well as in ozone transport regions.

121.1 Modified

text Added definition of “Necessary preconstruction

approvals” which conforms with federal definition
under 40 CFR 51.165(a)((1)((xvii). no

121.1 Modified

text Added definition of “net emissions increase” which

refers to 127.203a(a)(4) and generally conforms with the federal definition at 40 CFR 51.165(a)(1)((vi). The
difference in l ookback period (see Baseline Actual
Emissions Lookback

, above ) is noted

. yes

121.1 Modified

text Added definition of “pla ntwide applicability limitation”

(PAL) yes

121.1 Modified

text Added definition of “PAL effective date” yes

121.1 Modified

text Added definition of “PAL effective period” yes

121.1 Modified

text Added definition of “PAL major modification” yes

121.1 Modified

text Added definition of “PAL permit” yes

121.1 Modified

text Added definition of “PAL pollutant” yes

121.1 Modified

text Added definition of “Predictive emissions monitoring

system (PEMS)” which conforms with the federal
definition yes

121.1 Modified

text Added definition of “project” which is similar to the

federal definition at §51.165(a)( 1)(xxxix) but is more inclusive as it applies to a facility and thereby includes minor as well as major sources. “ P roject” applies to yes11

Section Status Description NSR
Reform?
major NSR and PA’s De Minim i s Program , which is already part of the PA SIP.

121.1 &
127.203 a(a)(5) Modified

text Added definition of “projected actual emissions” which

is at least as stringent as federal requirements yes

121.1 Modified

text Added definition of “regulated NSR pollutant” which

conforms with the federal definition. no

121.1 Modified

text Added definition of “replacement unit” which includes

all 4 criteria that are inc luded in the federal definition yes

121.1 Modified

text Modified definition of “secondary emissions” w hich

mirrors federal definition no

121.1 Modified

text Added definition of “significant” with values for

significant emissions rates for CO, NOx, SOx, Ozone,
Lead and PM

- 10 that mirror the significant emissions rates set forth in the federal regulations. no

121.1 Modified

text Added definition of “significant emissions increase” that

conforms with the federal definition. no

121.1 Modified

text Added definition of “significant emissions unit ” that

conforms with the federal definition in §51.165(f)(2)(xi) for the purpose of using PALs. yes

121.1 Modified

text Added definition of “significant net emissions increase

. ”

No definition of “significant net emissions increase” is set forth in the federal regulations. Nonetheless, PA’s definition comports with the meaning of the term which
is used in the federal rules. no

121.1 Modified

text Added definition of “small emissions unit ” that

conforms with the federal definition in §51.165(f)(2)(iii)
where PALs are used. yes

25 PA Code Chapter 127. Construction, Modification, Reactiva tion and Operation of Sources, S ubchapter B. Plan Approval Requirements :

Section Status Description NSR
Reform?12

Section Status Description NSR
Reform?

127.13 (b) Modified PADEP may extend the 18

- month period to

construct, modify or install an air contamination source under a valid plan approval upon a satisfactory showing that an extension is justified. no

25 PA Code Chapter 127. Construction, Modification, Reactivation and Operation of Sources, Subchapter E. New Source Review : *NOTE: Sections 127.201 (d) through (f), 127.201a, 127.203a and 127.218 are new. See Descriptions below.
Section Status Description NSR
Reform?

127.201(c) Modified Corrected language regarding application of
NSR to include attainment areas for ozone and within an ozone transport region that emits or has PTE at least 50 tpy of VOC or 100 tpy of
NOx. Added language to include a facility
within a basic nonattainment are a and located within an ozone transport region as also to be considered a major facility and subject to requirements applicable to a major facility
located in a moderate nonattainment area. Deleted term “stationary” related to major facility as §127.14 sp ecifically exempts mobile sources from plan approval requirements. no

127.201(d) Added Language on general applicability of provisions of Subchapter E some parts

127.201(e) Added More stringent rule applies in event of inconsistency between rules. no

127.201(f) Added Facilities located in Bucks, Chester, Delaware, Montgomery or Philadelphia Counties that emit or have potential to emit at least 25 tpy VOC or
NOx are subject to requirements applicable to a major facility located in a severe nonattainment
area for ozone. no

127.201a Added Measurements, abbreviations and acronyms some parts
127.202 Modified Changed effective date and clarified that special permit requirements apply to facility owner or
operator no

127.20 3(a) Modified Replaced §127.203(a) (relating to facilities subject to No. Ozone13

Section Status Description NSR
Reform? special permit requirements) with an amended proposal which applies to the construction of a new major facility or modification at an existing facility
located in a nonattainment area or located in

at tainment or unclassified area, which impacts a nonattainment area in excess of certain significance levels. Lower threshold for applicability to include facilities with emissions below 100 tpy where these facilities are major. anti

backsliding

127.20 3(b) Modified Replaced §127.203(b) (also relating to facilities subject to special permit requirements) with an amended proposal which includes provisions that would apply to an owner or operator of a facility in Bucks, Chester, Delaware, Montgomer y or Philadelphia Counties or an area classified as a
serious or severe ozone nonattainment area. No. Ozone
anti

backsliding

127.20 3(c) through (f) Modified Replaced §127.203(b) (also relating to facilities subject to special permit requirements) with an amended proposal which identified when the NSR requirements apply and do not apply to owners and operators of facilities. Cites applicability procedures
unde r §203a and offset requirements under §205(3) No. Ozone
anti

backsliding

127.20 3a Added Applicability determination. Includes provisions to determine net emission increases, baseline actual emissions, and projected actual emissions. No. Ozone
anti

backsliding

127.204 Modified Clarification some parts
127.205 Modified Special permit requirements. Adds provisions as to when LAER applies to a proposed modification within the contemporaneous period of a proposed
emissions increase and when emission offsets are required for the entire net emission increase that occurred over the contemporaneous period. yes

127.206 Modified Clarification no. 127.207 Modified Creditable emissions decrease or ERC generation and creation. Amended to prohibit emission reductions necessary to meet state

- only minor NSR
and allowance

- based programs required by the CAA or APCA to be used to generate emission reduction
credits. no.

127.208 Modified ERC use and transfer requirements. Minor clarifications. Provides that an owner or operator of a facility that is subject to allowance

- based programs may generate, create, transfer and use ERCs in accordance with Chapters 127 and 145 (relating to no14

Section Status Description NSR
Reform? interstate pollution transport reduction). Provides limited allowance for obtaining ERCs from another nonattainment area, consistent with federal requirements for offsetting emissions at 40 CFR 51.165(a)(3)(iii)(F).

127.209 Modified ERC r egistry system. Clarification. no 127.210 Modified Offset ratios. Clarification. no 127.211 Modified Deleted and remaining applicable provisions were moved to new §203a. no

127.212 Modified Portable facilities. References to PM

- 10 precursors

were deleted. no

127.213 Modified Construction and demolition. Clarification. no 127.214 Rescinded Rescinded former Exemption section. no 127.215 Modified Reactivation. Clarification. Also provides that a facility which is deactivated in accordance with subsection(a) may create ERCs only if an ERC registry application is filed within two years of
deactivation. no

127.217 Modified Clarification no 127.218 Added New PALs provisions yes

I V. CONCLUSION

Pennsylvania’s August 9, 2007 proposed SIP revision amend ing Pennsylvania ’s NSR
construction

, modification, reactivation and operation permit programs at 25 Pa. Code Section
121.1 and 25 Pa. Code Chapter 127

, significantly strengthen s the existing SIP and is consistent
with the federal program requirements for NSR set forth at 40 CFR 51.165

.

V. RECOMMENDED AGENCY ACTION

I recommend approval of the 2007 SIP revision a mend ing the state’s rules at 25 Pa. Code , Part I, Subpart C, Article III, “Air Resources,” Chapter 121, “General Provisions,” Sections 121.1 “Definitions” and 127 “Construction, Modification, Reactivation and Operation of Sources ”.