1 1 MARYLAND DEPARTMENT OF THE ENVIRONMENT 2 AIRAND RADIATION MANAGEMENT ADMINISTRATION 3 4 5 PUBLIC HEARING 6 7 CONCERNING AMENDMENTS TO IMPLEMENT 8 EPA'S PSD AND TITLE V GREENHOUSE GAS TAILORING RULE 9 10 11 12 13 The hearing in the above matter commenced on 14 Tuesday, February 15, 2011, at the MDE Headquarters, 15 Montgomery Park, 1800 Washington Boulevard, Baltimore, 16 Maryland. 17 18 BEFORE: KATHLEEN PERRY, Hearing Officer 19 20 Reported by: Linda Metcalf 21 

### ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-55552 1 A P PEA RAN C E S 2 3 ON BEHALF OF THE MARYLAND DEPARTMENT OF THE ENVIRONMENT: 4 5 KATHLEEN PERRY 6 Legislative Coordinator 7 Regulation Development Division 8 Air and Radiation Management 9 Maryland Department of the Environment 10 1800 Washington Boulevard 11 Baltimore, Maryland 21230 12 13 DEBORAH RABIN 14 Regulation Development Coordinator 15 Regulation Development Division

- ARMA 16 Maryland Department of the Environment 17 1800 Washington Boulevard, Suite 730 18 Baltimore, Maryland 21230 19 20 21 

### ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-55553 1 I N D E X 2 3 Speaker: Page: 4 Kathleen Perry, MDE 4 5 Debbie Rabin, MDE 6 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-55554 1 

### PROC E EDINGS 2 3 MS. PERRY: Good morning. On behalf of the 4 Department of the Environment and the Air and Radiation 5 Management Administration, I would like to welcome you to 6 this public hearing. 7 My name is Kathleen Perry and I am the 8 Legislative Coordinator for the Air and Radiation 9 Management Administration. I will serve as hearing 10 officer for today's hearing. 11 I would like to ask all of you in attendance 12 today to please sign in, if you haven't already done so. 13 This will help us to keep an accurate record of the 14 people who participate in the hearing. Also, copies of 15 our regulation proposal, support documents, and the 16 Department's statement are available on the table for 17 your information. 18 This hearing concerns regulations found in the 19 Code of Maryland Regulations, Title 26, Subtitle 11, Air 20 Quality. The Secretary of the Department proposes to 21 amend:

ForTheRecord,Inc. (301)870-8025-www.ftrinc.net

-(800)921-55555 1 (1) 

### Regulation .01 under COMAR 26.11.01, 2 

### General Administrative Provisions; 3 (2) 

### Regulations .01 and .12 under COMAR 4 

### 26.11.02, Permits, Approvals, and Registration; and 5 (3) 

### Regulation .14 under COMAR 26.11.06, 6 

### General Emission Standards, Prohibitions, and 7 

### Restrictions. 8 

### The purpose of this hearing is to give you the 9 

### opportunity to comment on this action. 10 The Opportunity for Public Comment for this 11 

### proposed action appeared in the Maryland Register, Volume 12 38, Issue 2, Page 103 on January 14, 2011. 13 The hearing will proceed in the following 14 order. First, Deborah Rabin will make a statement on 15 behalf of the Air and RadiationManagement 16 Administration. After Ms. Rabin is finished, I will call 17 on any elected official or government official who wants 18 tomake a statement. Then, I will call upon anyone else 19 who indicated on the sign-in sheet that he or she would 20 like tomake a statement. 21 When giving your statement, please identify

ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-55556 1 yourself and your affiliation, and give your statement 2 loudly and clearly. Are there any questions? 3 (No response.) 4 MS. PERRY: I will now call on Ms. Rabin. 5 MS. RABIN: My name is Deborah Rabin. I am the 6 Regulations Coordinator for the Air and Radiation 7 Management Administration, Department of the Environment. 8 I would like to entermy hearing statement into the 9 record. 10 11 Statementof theAir and 12 RadiationManagementAdministration 13 Departmentof the Environment 14 for the Public Hearing 15 Relating toAmendments Necessary to Implement the 

### 16 Requirements of the federal PSD andTitleV 17 Greenhouse Gas TailoringRule 18 heldon February 15, 2011 19 Baltimore, MD 

### 20 My name is Deborah Rabin. I am the Regulations 21 Coordinator for the Air and Radiation Management 

### ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-55557 1 Administration, Department of the Environment. 2 This public hearing is being held pursuant to 3 the requirements of 40 CFR Section 51.102, 40 CFR Section 4 70.4, and Sections 2-301 et. seq. of the Environment 5 Article, Annotated Code ofMaryland. It is also being 6 held in conformance with the State Administrative 7 Procedures Act under the State Government Article, 8 beginning at Section 10-101. 9 Notice of this hearing appeared in the: 10 Maryland Register on January 14, 2011; MOE's website from 11 January 11, 2011 through February 16, 2011; Baltimore Sun 12 on January 14, 2011; Washington Post on January 13, 2011; 13 and the St. Mary's Enterprise on January 14, 2011. 14 Copies of these notices were submitted for the record. 15 Copies of this proposed action and supporting 16 documents were made available for review by the State 17 Clearinghouse and are also submitted at this time into 18 the hearing record. Copies were alsomade available for 19 public inspection at the Air and RadiationManagement 20 Administration offices in Baltimore, Cumberland, and 21 Salisbury, and at all local health departments or local 

### ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-55558 1 air quality control offices. 2 The purpose of today's hearing is to give the 3 public an opportunity to comment on proposed amendments 4 to implement the requirements of EPA's Prevention of 5 Significant Deterioration and Title VGreenhouse Gas 6 Tailoring Rule. 7 Summary 8 The purpose of this action is to implement the 9 requirements of the EPA's PSD and Title VGreenhouse Gas 10 Tailoring Rule published in the Federal Register on June 11 3, 2010. 12 The Tailoring Rule limits the applicability of 13 the existing PSD and Title Voperatingpermit 14 requirements of the Clean Air Act as of January 

### 2, 2011 15 so that it does not apply to all stationary sources that 16 emit or have the potential to emit greenhouse gases at 17 the 100 or 250 tons per year levels provided under the 18 Act. 19 Excluding applicability of the PSD and Title V 20 operating permit requirements to the 100 and 250 tpy 21 thresholds will exclude very small sources, such as 

### ForTheRecord,

### Inc. (301)870-8025-www.ftrinc.net-(800)921-55559 1 apartment buildings, office buildings, and restaurants. 2 The Tailoring Rule phases in the applicability thresholds 3 for both the PSD and Title V operating permit programs 4 for sources of GHG emissions, by establishing the first 5 two steps of the phase-in for the largest emitters of 6 GHGs. This is the first phase of regulating greenhouse 7 gas emissions and supports Maryland law requiring a 8 reduction in greenhouse gas emissions. 9 Submission to EPA for Approval 10 The appropriate parts of this action will be 11 submitted to EPA for approval as part ofMaryland's State 12 Implementation Plan and Title V Program. The Department 13 will request approval of the regulations in their 14 entirety. 15 Requirements of EPA's Tailoring Rule 16 EPA will phase in the CAA permitting 17 requirements for GHGs in two initial steps which are 18 described in the Notice of ProposedAction published in 19 the MD Register on January 14, 2011. 20 Explanation of SpecificAmendments 21 The following regulations under COMAR 26.11

ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-5555

### 10 1 

### have been amended to implement the Tailoring Rule 2 

### requirements: 3 1. 

### COMAR 26.11.01.01B

- definitions were 4 

### added for: 5 

### "C02 equivalent emissions (C02e)" which 6 

### includes the calculationprocedure 7 

### "Greenhouse gases (GHG)", meaning the 8 

### aggregate group of 6 greenhouse gases. 9 2 . 

### COMAR 26.11.01.01B (37) and COMAR 10 26.11.06.14

- The PSD programrequirements have been 11 

### updated to include EPA's Tailoring Rule requirements. 12 3. 

### COMAR 26.11.02.01B(44)

- expanded the 13 definition of "Regulated airpollutant" by adding 14 greenhouse gas as defined under COMAR 26.11.01.01B(18-1) 15 and subject to regulation under EPA's final PSD and Title 16 VTailoring Rule. 17 

### 4 . COMAR 26.11.02.01C(1)

- the definition of 18 "Major source" has been amended to include sources of GHG 19 subject to regulation under 40 CFR 70.2, as amended by 20 the Tailoring Rule. 21 5. 

### COMAR 26.11.02.12

- provides that the

ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-555511 1 procedures for obtaining a permit to construct apply to 2 GHG sources to which 40 CFR 52.21(b)(49(iv) or (v) apply. 3 Sources Affected 4 Most of the affected sources in Maryland are 5 already subject to Title

### Vor PSD requirements. 6 Economic Impact 7 Step 1 of the Tailoring Rule will have a 8 limited economic impact on affected sources. If an 9 existing source is currently addressing another pollutant 10 for PSD or in a Title Vpermit, then GHG requirements 11 will also apply. 12 Step 2 of the Tailoring Rule, which begins on 13 July 1, 2011, imposes Title

### Vand PSD permitting 14 requirements on larger sources of GHG emissions even if 15 they would not applybased on emissions of any other 16 pollutants. 17 The Department will handle Step 1 of the rule 18 with existing staff. Staff requirements will be 19 reevaluated for Step 2 and future steps as they are 20 finalized by EPA. 21 Consideration of Comments

ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-555512 1 The Department will consider all comments 2 before making a decision to adopt these amendments. 3 4 MS. PERRY: Would anyone like to comment on 5 this proposed action? 6 (No response.) 7 MS. PERRY: Please let the record reflect that 8 no one has come to comment on this proposed action. This 9 will conclude the public hearing regarding amendments 10 needed to implement EPA's PSD and Title V greenhouse gas 11 "Tailoring Rule". 12 Let the record reflect that it is now 11:24 13 a.m. and this hearing is officially concluded. 14 (Whereupon, the hearing was concluded.) 15 16 17 18 19 20 21

ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-555513 1 CERTIFICATE OF COURT REPORTER 2 3 I, Linda Metcalf, do hereby certify that the 4 foregoing transcription was reduced to typewriting via 5 audiotapes recorded byme; that I am neither counsel for, 6 nor related to, nor employedby any of the parties to the 7 case in which these proceedings were transcribed; that I 8 am not a relative or employee of any attorney or counsel 9 employed by the parties hereto, nor financially or 10 otherwise interested in the outcome of the action. 11 12 13 14 15 

### 16 LINDA METCALF 17 Court Reporter 18 19 

### 20 21

ForTheRecord,Inc. (301)870-8025-www.ftrinc.net-(800)921-5555