Department of

Environmental Quality

Alan Matheson

Exeailive Direclor

DIVISION OF AIR QUALITY

Bryce C. Bird

Director

GARYR HERBERT

Coventor

SPENCER J. COX

Lieulenanl Governor

DAQP-059-16

September 30,2016

Monica Morales

Acting Air Program Director

US EPA Region 8

1595 Wynkoop Street

Denver, Colorado 80202-1 129

Dear Ms. Morales:

The U.S. Environmental Protection Agency (EPA) has noted potential deficiencies in certain portions

of Utah's nonattainment new source review OrNSR) permitting rules in its State Implementation

Plan (SIP). By no later than December 8,2017, the Utah Division of Air Quality (UDAQ) commits

to: l) adopt enforceable revisions to our nonattainment permitting rules, located in R307-403 and

identified below, and2) submit these revisions in a SIP revision submittal to EPA, following all

applicable notice and public hearing requirements.

These revisions will incorporate all of the 40 CFR 51.165 NNSR applicability permitting

requirements for new and modified major stationary sources in a nonattainment area, including

revising R307-403 to add requirements to regulate PM2 5, and will clarify and revise Lowest

Achievable Emission Rate (LAER) requirements and applicable offset requirements, including

banking of offset emissions. Specifically, UDAQ's revisions will include the following:

. R307-403-1 (Purpose and Definitions): The definition of "regulated NSR pollutant" in

paragraph (4Xb) states "ammonia is not a precursorto PMzs...." Additionally, R307-403-l

states that all40 CFR references are to the version in effect on July 1,2012, unless otherwise

specified, which does not include the new definitions and new requirements regarding

ammonia in 40 CFR 51.165 that EPA recently finalized in the PM2 s SIP Requirements Rules

and becomes effective on October 24,2016. Consistent with the court's opinion in NRDC v.

EPA,706F.3d428 (D.C. Cir. 2013),the provisions found in Clean AirAct (CAA) section

189(e) also applies to major stationary sources of fine particulate matter (PM2 5). EPA

recently finalized a new provision at 40 CFR 5 I .1 65(a)( I 3) that codifies this requirement, as

it applies to PM2 5, in the federal regulations. R307-403-l states that "ammonia is not a

precursor to PM2 s in the Logan, Salt Lake City, and Provo PMz s nonattainment areas as

defined in the July I , 20 10 version of 40 CFR 8 I .345"; however, UDAQ has not submitted

an analysis demonstrating that sources of ammonia, as a PM2 5 precursor, do not contribute

significantly to PMz s levels that exceed the National Ambient Air Quality Standards

(NAAQS) in nonattainment areas in the State.

195 North 1950 West. Salt Lake City, UT

Maif ing Address: P.O. Box 14/.820'Salt Lake City, UT 841144820

relephone (80 r ) 5364000' 

Y_rr: )::l:ee' r. D D. (80 r ) e03-3 e78

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o UDAQ commits to submit a SIP revision that either regulates major stationary sources of

ammonia pursuant to Utah's NNSR permiuing program, consistent with all applicable

federal regulatory requirements or demonstrates that sources of ammonia, as a PM2 5

precursor, do not contribute significantly to PM2 5 levels that exceed the NAAQS in

nonattainment areas in the State, consistent with new provisions at 40 CFR 5l .1006(a)(3).

o UDAQ commits to revise R307-403-2, consistent with the new definitions in 40 CFR

51.165 that EPA recently finalized in the PM2 5 SIP Requirements Rules.

R307-403-3 (Review of Air Quality Impact): This section will be re-structured to clari!

that, for sources proposing to locate in a nonattainment area, applicable NNSR requirements

are determined solely based on whether such source is a new or modified major source for

the pollutant for which the area is deemed to be in nonattainment (as required by CAA

section 173(a) and (c), and 40 CFR 51.165(a)). Applicability of most or all NNSR

requirements under Utah's current rules could be interpreted to be contingent on

determinations by the director of whether the source would cause a new violation or

contribute to an existing violation of the NAAQS. UDAQ commits to reformat these

requirements into state-specific language in a general provision, R307-403-3, that effectively

imposes requirements on sources in Utah, specifically as follows:

o UDAQ commits to revise R307-403-3, including R307-403-3(3), to remove the reference

to NNSR determinations being made "at the time of the source's proposed start-up date;"

o UDAQ commits to revise R307-403-3, including R307-403-3(2) and R307-403-3(3), to

specify that NNSR permit requirements are applicable to all new major stationary sources

or major modifications located in a nonattainment area that are major for the pollutant for

which the area is designated nonattainment;

o UDAQ commits to revise R307-403-3, in addition to the previously adopted definition of

LAER in R307-403-1, to explicitly state that LAER applies to all major new sources and

major modifications for the relevant pollutants in nonattainment areas.

R307-403-4 (General Offset Requirements): This section will be revised because it is not

currently clear that the General Offset Requirements, R307-403-4, apply to all offset

transactions for all pollutants (as required by CAA Section 173(c) and 40 CFR 5 I .165).

o UDAQ commits to revise R307-403-4 to incorporate the requirements from 40 CFR

51.165 to establish that all general offset permitting requirements apply for all offsets

regardless of the pollutant at issue, and to revise the provision to impose immediate and

direct general offset permitting requirements on all new major stationary sources or major

modifrcations located in a nonattainment area that are major for the pollutant for which

the area is designated nonattainment.

R307-403-4 (Offset Net Air Quality Benefit): This section will be revised to ensure offsets

provide a net air quality benefit, as discussed in 40 CFR 51, Appendix S.

o UDAQ commits to work with the Utah Air Quality Board to revise R307-403-4 to

reference the criteria discussed in section IV.D. of 40 CFR 51, Appendix S'

195 North 1950 West'Salt Lake City, UT

Mailing Address: P O. Box 144820'Salt Lake City, UT 841144820

Telephone (S0l) 536-4000' Fax (801)536-4099' T.D.D. (801) 903-3978

www deq uloh gov

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DAQP-059-16

Page 3

o Pollutant Specific Offset Requirements: UDAQ commits to adding a section to the state

regulations which addresses emission offset requirements for PMz 5 nonattainment areas (as

required in 40 CFR 51.165(a)(l l)).

o UDAQ will update R307-403 to include a new section that imposes requirements that

address emission offsets for PM2 5 nonattainment areas (as required in 40 CFR

51.165(a)(l l)) on NNSR sources in Utah. UDAQ will revise R307-403-3, including

R307-403-3(3Xc), to cross reference this new section, as well as the requirements in

R307-403-4. R307-403-5. and R307-403-6.

o R307-403-7 (Offset Baseline): This section will be revised to clarifu the requirement when

crediting reductions for offset purposes (in accordance with CAA Section 173(c)(l) and 40

cFR 51.16s).

o UDAQ commits to work with the Utah Air Quality Board to revise this section to include

the requirements of CAA Section 173(c)(l) and 40 CFR 51.165 (specifically 40 CFR

51.165(a)(3)) concerning the requirement that creditable reductions be calculated based

on actual emissions for offset purposes.

If you have any questions, please contact Sheila Vance of my staff at (801) 536-4001 or

svance@utah.gov.

Sincerely,

195 North 1950 West. Salt Lake City, UT

Mailing Address: P.O Box 144820. Salt Lake City, UT 841144820

Telephone (801 ) 5364000 . Fax (801)5364099 . T.D.D. (801 ) 903-3978

ww.deq.utoh gov

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