State of Wisconsin 

DEPARTMENT OF NATURAL RESOURCES 

101 S. Webster Street 

Box 7921 

Madison WI 53707-7921 

Scott Walker, Governor 

Cathy Stepp, Secretary 

Telephone 608-266-2621 

Toll Free 1-888-936-7463 WISCONSIN 

DEPT. OF NATURAL RESOURCES TTY Access via relay - 711 ^ 

March 25,2013 

Ms. Andrea Morgan 

Air Permit Section 

US EPA, Region V (AR-18J) 

77 W. Jackson Blvd. 

Chicago, IL 60604-3507 

Subject: Request for SIP Approval for an actual based construction permit exemption 

Dear Ms. Morgan: 

The attached analysis is in response to an EPA letter requesting a Clean Air Act 110(1) demonstration for 

WDNR's proposed rule and SIP submittal of a 10 tons per year (TPY) Actual Emissions Permit Exemption, ch. 

NR406.04(lq), Wisconsin Administrative Code. This analysis does not include a 10 TPY Actual Emissions 

Operation Permit Exemption analysis for ch. NR 407.03(1 m), Wisconsin Administrative Code, which will be in 

the WDNR's Title V approval package request. The technical analysis addresses, PSD increments, visibility, and 

anti-backsliding requirements, as applicable that would be protected if the submitted rule change was approved. 

Please review the enclosed information and let me know if there are any questions. Thank you. 

Sincerely, 

^ Bart Sponseller, Director 

Bureau of Air Management 

cc: Andy Stewart - AM/7 

Steve Dunn - AM/7 

Maria Hill - SCR 

dnr.wi.gov 

wisconsin.gov Naturally WISCONSIN .PRINTED 

tON RECYCLED 

PAPER 
CORRESPONDENCE/MEMORANDUM State of Wisconsin 

DATE: March 25, 2013 

TO: Andy Stewart, Chief - Permits and Stationary Source Modeling Section, WDNR 

FROM: Maria Hill, Air Management Engineer, WDNR 

SUBJECT: Response to AR-18J in Support of a 10 TPY Actual Emissions Permit Exemption 

CC: Steve Dunn, Construction Permit Team Leader, WDNR 

Tom Roushar, Supervisor SCR, WDNR 

Introduction 

Section 110(1) of the Clean Air Act (CAA) indicates that EPA cannot approve a State Implementation Plan (SIP) 

revision if the revision would interfere with any applicable requirement concerning attainment, or any other 

applicable requirement of the CAA . Therefore, the EPA will approve a SIP revision that removes or modifies 

control measure(s) in the SIP only after the State has demonstrated that such removal or modification will not 

interfere with attainment of the National Ambient Air Quality Standards (NAAQS), Rate of Progress (ROP), RFP or 

any other applicable requirement of the CAA. 

This analysis is in response to an EPA letter requesting a Clean Air Act 110(1) demonstration for WDNR's proposed 

rule and SIP submittal of a 10 tons per year (TPY) Actual Emissions Permit Exemption, ch. NR406.04(lq), 

Wisconsin Administrative Code. The rule allows for an exemption from the requirement to obtain a construction 

permit for any project whose actual emissions do not exceed 10 TPY for any single criteria pollutant (particulate 

matter, sulfur dioxide, nitrogen oxides, carbon monoxide and volatile organic compounds), 0.5 ton per year of lead, 

or any applicable threshold in ch. NR 445, Wis. Adm. Code, and who is not subject to Federal New Source 

Performance Standards or National Emissions Standards for Hazardous Air Pollutants. Qualifying facilities are 

required to conduct sufficient monitoring and recordkeeping to demonstrate compliance, and continued eligibility 

for exemption. This analysis demonstrates that the NAAQS, Prevention of Significant Deterioration (PSD) 

increments, visibility, and anti-backsliding requirements, as applicable, would be protected if the submitted rule 

changes were approved into WDNR's SIP. Additional information is provided showing the number and types of 

sources requesting coverage under this rule. 

A ll construction pennit exemptions issued under the 10 TPY exemption rule will have an official determination by 

the Department and any source receiving this exemption must have a facility-wide operation permit under ch. NR 

407 or have submitted a timely and complete application. Thus It will not be at the sole discretion of the source to 

characterize their emissions and determine if they meet any applicable emission thresholds as the Department will 

review all emission estimates provided by exemption applicants. The operation permit will continue to require an 

annual certification of compliance with all rules and the operation permit revision will continue to require a public 

comment period. In addition, any source required to submit an air emission inventory report of annual actual 

emissions above thresholds in ch.NR 438, Wis. Adm. Code, will still be required to submit this report. Therefore, 

there will continue to be a public report of claimed emissions. 

Sources exempt from obtaining a construction pennit under this rule continue to be subject to all applicable 

requirements and compliance demonstration methods per air pollution regulations even if the requirements are not 

articulated in a construction permit. All projects that will be exempted under the 10 TPY exemption rule require an 

operation permit revision application, monitoring of any control equipment used to limit actual emissions and 

maintaining of any records necessary to demonstrate compliance with any applicable emission limitation. ^ 

Control technology reviews will be conducted during the operation permit initial issuance, renewal or revision | 

Objective 

Analysis 
process, as appropriate. If the potential to emit (PTE) of a project exceeds the significant net emission increase 

threshold under NR 405 or NR 408 the project is not eligible for the exemption under NR 406.04(1 q)(d). In 

accordance with this, s. NR 406.04, Wis. Adm. Code, states that s. NR 406.04 does not provide an exemption from 

construction permit requirements for a source that is required to obtain a permit under ch. NR 405 or 408". There is 

no relaxation of the regulations, only a proposal to exempt sources which are not at risk to human health or the 

environment from obtaining a permit. The owner or operator is still responsible for conducting monitoring and 

maintaining records sufficient to demonstrate conformance with administrative code requirements. Since an 

exemption from the requirement to obtain a construction permit does not exempt the facility from meeting the air 

quality standards and increments, as required in NR 406.07, the exempt sources are included in any analysis of 

increment consumption at nearby facilities. 

Currently, there are existing specific construction permit exemptions under NR 406.04(1), Wis. Adm. Code and 

general construction permit exemptions under NR 406.04(2), Wis. Adm. Code that have annual monthly limits 

approaching 1666 pounds per month (10 TPY) and have already been approved by USEPA. 

• External combustion furnaces designed to burn up to 5 mmBtu/hr of wood may emit 2.5 lb/hr PMio 

resulting in an annual emission rate of 11.0 TPY and 2.2 lb/hr PM2 .5 resulting in an annual emission rate of 

9.4 TPY. 

• External combustion furnaces designed to burn up to 10 mmBtu/hr of distillate oil may emit 1.9 lb/hr NO x 

resulting in an annual emission rate of 8.1 TPY. 

• External combustion furnaces designed to burn up to 5 mmBtu/hr of residual oil may emit 2.1 lb/hr NOx 

resulting in an annual emission rate of 9.3 TPY. 

• External combustion furnaces designed to burn up to 25 mmBtu/hr of gaseous fossil fuels may emit 2.5 

lb/hr NOx resulting in an annual emission rate of 10.7 TPY and 2.1 lb/hr CO resulting in an annual emission 

rate of 9.0 TPY. 

• Direct sources may emit up to 1666 pounds of volatile organic compounds per month (10 TPY), measured 

prior to any emission control device. 

There is the concern of an actual-based annual limit that may not adequately estimate short-term emission rates; 

however, there is already an approved specific category exemption for emergency generators which has high hourly 

PTE emissions from a "non-steady-state" process. Emergency electric generators powered by diesel internal 

combustion engines rated up to 3000kw may emit 8.3 lb/hr S02, 8.9 lb/hr PM10, 26.9 lb/hr CO, and 125 Ibs/hr 

NOx. 

Lastly, it is pointed out that for particulate matter, the 10 TPY actual-based exemption equals the PM2.snet emission 

increase allowance and is two-thirds of the PMio allowance for Prevention of Significant Deterioration (PSD) in NR 

405.02(27), Wis. Adm. Code. 

To assist in evaluating the number and type of sources possibly requesting a 10 TPY actual emissions construction 

permit exemption, a list was generated of all sources that have requested the exemption since rule adoption in 2008. 

The list was generated using Wisconsin Air Resource Program (WARP) and Air Reporting System (ARS). For 

each source the following information was identified: facility name, identification number, class code, exempt 

project description and control requirements. The resulting attached Table 1 shows 56 construction project 

exemption requests. Of the 56 exempt sources in the analyses conducted to date, none have contributed to modeled 

exceedances of any standard or increment. 

Conclusion 

The 10 TPY Exemption is being proposed to meet statutory requirements of s. 285.60(6)(b), Wis. Stats., which 

requires the WDNR to exempt sources which are not at risk to human health or the environment from air permitting 

requirements. An analysis of the projects requesting exemption to date indicates a minimal number, with minimal 

resulting impact. Oversight by the WDNR, anti-backsliding, and the need for public review have all been 

addressed. 
Table 1 - Exemptions Requested Since 2008 

FID Facility Name Class Permit No Process Category 

Controls Required 

with Exemption or 

with Permit 

113262160 

Dane County Landfill Site #1-

Verona B 09-KLH-055 flare none 

252007030 TWIN DISC INC., PLANT 1 B 10-RSG-103-EXM parts washer none 

252007140 TWIN DISC INC., PLANT 3 B 09-RSG-126-EXM parts washer none 

267103320 SIGNICAST, LLC. B 11-KLF-142-EXM castings-heat treatment none 

113180430 

AMERICAN FAMILY INSURANCE 

GROUPS SM 11-SML-330-EXM 

wood dust collection, 

spray booth 

HVLP spray gun, dust 

collection system 

246004330 ARKEMA SAUKVILLE FACILITY SM 08-JSB-117 resins 

work practices, existing 

oxidizer 

252005380 

NESTLE CHOCOLATE & 

CONFECTIONS SM 09-RSG-133 dust collection dust collection system 

252005380 

NESTLE CHOCOLATE & 

CONFECTIONS S M 11-RSG-013-EXM cocoa bean sterilization none 

268154260 

TEKRA CORP., 

COATING/LAMINATING DIV. SM 10-JSB-043-EXM plastics-sheet coater existing oxidizer 

405120210 OMNOVA Solutions, Inc. SM 09-TEP-033 rubber manufacturing existing oxidizer 

405120210 OMNOVA Solutions, Inc. SM 09-TEP-182 rubber manufacturing existing oxidizer 

436034390 

CARMEUSE LIME AND STONE -

ROCKWELL S M 08-CVC-275 limestone dust collection 

436044950 Bio-Blend Fuels Inc S M 08-SML-142 biodiesel fuel none 

445095420 

IMERYS- PIGMENTS AND 

ADDITIVES SM 07-MHR-312 limestone dust collection 

471036500 MERCURY MARINE-Plant 33 SM 11-JJW-083-EXM testing station none 

603103710 SUN POWER BIODIESEL LLC S M 08-SML-154 biodiesel fuel none 

642062410 Mars Petcare US, Inc. S M 09-JGB-216-EXM P M vacuum system dust collection 

648020230 THOMAS & BETTS CORPORATION SM 10-JGB-057-EXM 

replacement of zinc 

coating lines none 

648045860 Wisconsin Industrial Sand, Inc. SM 10-JGB-059-EXM 

sand mining-screen and 

controls upgrade dust collection 

861009270 

PHILLIPS PLASTICS CORP -

MEDFORD DIV SM 12-KLH-019-EXM 2 coating booths 

HVLP spray gun, dust 

collection system 

111003200 UNIMIN CORPORATION S M 11-KLH-034-EXM mining-sand screening dust collection 

113008500 CHS, Inc. SM80 10-KLH-062-EXM 2 ethanoi storage tanks none 

113012680 SCIENTIFIC PROTEIN LABS SM80 09-SML-194-EXM 

pharmaceutical-storage 

tanks none 

113012680 SCIENTIFIC PROTEIN LABS SM80 10-JGB-126-EXM 

pharmaceuticalemergency generator operational hours limit 

113103540 ROYLE PRINTING, INC. SM80 11-KLH-131-EXM printing press 

existing oxidizer, 

content limits 

123007060 WOODBRIDGE CORPORATION SM80 08-SML-034 pressed lumber content limits 

154062150 

AIR PRODUCTS PERFORMANCE 

MFG INC SM80 10-KLH-232-EXM 

chemical manufacturingtank replacement none 
154062150 

AIR PRODUCTS PERFORMANCE 

MFG INC SM80 11-KLH-039-EXM 

chemical manufacturingtank addition none 

157061520 MILWAUKEE VALVE CO SM80 10-JGB-127-EXM shotblast replacement baghouse 

241005490 IFTTerminal Milwaukee, Inc. SM80 11-KLF-044-EXM 

ethanoi loading to 

vessels none 

268175270 

SHARP PACKAGING SYSTEMS, 

INC. SM80 08-JSB-084 printing press 

existing oxidizer, 

content limits 

471008670 

Menasha Packaging Company -

Neenah SM80 10-JGB-201-EXM printing-plating process 

existing oxidizer, 

content limits 

471027480 OUTLOOK LABEL SYSTEMS, INC. SM80 471027480-X01 printing-press 

existing oxidizer, 

content limits 

113004430 

MADISON GAS & ELECTRIC CO 

BLOUNT A 09-JGB-244-EXM 

10 mmbtu natural gas 

boiler none 

114012030 

DEPTOFADM-WAUPU N 

CORRECTION A 114012030-X power generation existing cyclones 

157006190 RR Donnelley - Baraboo Div A 09-KLH-050 web presses 

existing oxidizer, 

content limits 

230006260 

Wisconsin Electric Power 

Company A 09-SL-175-EXM controls installation none 

241007030 Miller Coors Breweries East A 08-DJH-119 brewery-malt handling none 

241015390 Appleton Electric, LLC A 11-KLF-141-EXM foundry-furnace baghouse 

252004940 

InSinkErator Div. Emerson Electric 

Co.. A 09-KLF-240-EXM boiler none 

268005430 

PurePower TechnologiesMetalcastings A 08-JSB-006 foundry-shotblasting baghouse 

405032210 

PROCTER & GAMBLE PAPER 

PRODUCTS A 09-TEP-090-EXM 

sanitary paperreplacement equipment none 

420042480 Graymont Western Lime - Eden A 

ll-DMM-118 -

EXM 

lime manufacturingrailcar loadout 

replacement none 

420101110 A.C.H. FOAM TECHNOLOGIES A 12-JJW-100-EXM 

polystyrene 

manufacturing-preexpander content limits 

460032870 KOHLER CO-METALS PROCESSING A 08-JSB-027 metal fines reclaim None 

460032870 KOHLER CO-METALS PROCESSING A 09-JSB-038 metal fines reclaim none 

460032870 KOHLER CO-METALS PROCESSING A 11-RSG-323-EXM coating process 

filter system, content 

limits 

460033090 

WPL - EDGEWATER GENERATING 

STATION A 09-SDD-249-EXM controls installation none 

460038700 

KOHLER CO - TOWN OF MOSEL 

PLANT A 09-JSB-245-EXM coating process 

filter system, content 

limits 

460147930 KOHLER CO-ENGINE PLANT A 08-JSB-319 test stations none 

469033840 ThyssenKrupp Waupaca, Inc A 

ll-DMM-082 -

EXM 

foundry-new belt 

cleaning baghouse 

469033840 ThyssenKrupp Waupaca, Inc A 

ll-DMM-089 -

EXM foundry-core machine baghouse 

603046510 MASTERCRAFT INDUSTRIES INC A 12-JBD-080-EXM wood working baghouse 

618076910 HUTCHINSON TECHNOLOGY, INC. A 11-SJZ-104-EXM 

computer 

manufacturing-coating 

station none 
855024830 

WEATHER SHIELD MFG -

LADYSMITH DIV A. 10-SDD-110-EXM Molder existing filter system 

861028410 

HURD WINDOWS AND DOORS 

INC. A 

09-MDW-164-

EXM 

modification to dust 

collection system existing dust collection