Document ID: EPA-R01-OAR-2018-0212-0003
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2018-06-18T04:00Z

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                   REGION 1
                        5 POST OFFICE SQUARE, SUITE 100
                            BOSTON, MA  02109-3912

Technical Support Document

Date: 	    May 15, 2018
	
Subject:  EPA's Review of Connecticut's SIP Submittal Removing Step 2 GHG Sources from  
              	  the Requirement to Obtain a PSD permit.

From:	    Donald Dahl, Environmental Engineer

Thru:	    Eric Wortman, Acting Manager
	    Air Permits, Toxics, and Indoor Programs Unit

TO: Files

The following table provides the EPA Region 1's analysis of Connecticut's state implementation plan (SIP) revision to clarify that the State's PSD rules do not require a source to obtain a permit solely because the source emits or has the potential to emit (PTE) Greenhouse Gases (GHGs) above the applicable thresholds. Based on this analysis, the EPA has found the State's revisions are consistent with the EPA's PSD regulations. Therefore, in the federal register notice associated with this TSD, the EPA is proposing to approve these revisions. The table below is organized by the State's individual SIP revision request submitted by Connecticut on February 28, 2018. The EPA proposes to amend the SIP by adding the language that is underlined and removing the text that is struck out in the table's first column.

State's Requested Change to the SIP
Relevant EPA Regulation
Action

Removal of Sections 22a-174-3a(a)(1)(H)-(J): 

"(a) Applicability and Exemptions 

 (1) Applicability. Prior to beginning actual construction of any stationary source or modification not otherwise exempted in accordance with subdivision (2) (A) to (C) of this subsection, the owner or operator shall apply for and obtain a permit to construct and operate under this section for any: 

 * * *

 (H) New stationary source that emits, or has the potential to emit, equal to or greater than 100,000 tons per year of CO2e and one hundred (100) tons per year of greenhouse gases;
  
 (I) Major stationary source when such major stationary source undertakes a physical change or change in the method of operation that will result in a net emissions increase that is equal to or greater than 75,000 tons per year CO2e; or
  
 (J) Stationary source that emits, or has the 
 potential to emit, equal to or greater than 100,000 tons per year of CO2e and one hundred (100) tons per year of greenhouse gases, when such stationary source undertakes a physical change or change in the method of operation that will result in a net emissions increase that is equal to or greater than 75,000 tons per year CO2e."

40 CFR 51.166(b)(48)(iv)(b) states: 

  "The stationary source is an existing major stationary source for a regulated NSR pollutant that is not GHGs, and also will have an emissions increase of a regulated NSR pollutant, and an emissions increase of 75,000 tpy CO2e or more;"

On August 19, 2015 (see 80 FR 50199), EPA removed section 40 CFR 51.166(b)(48)(v) from its regulations. Prior to removal this section stated:

  "(v) Beginning July 1, 2011, in addition to the provisions in paragraph (b)(48)(iv) of this section, the pollutant GHGs shall also be subject to regulation:

     (a) At a new stationary source that will emit or have the potential to emit 100,000 tpy CO2e; or
     
     (b) At an existing stationary source that emits or has the potential to emit 100,000 tpy CO2e, when such stationary source undertakes a physical change or change in the method of operation that will result in an emissions increase of 75,000 tpy CO2e or more."
Approve based on the following: 

1) The removal of Section 22a-174-3a(a)(1)(H) from the SIP is consistent with 40 CFR 51.166(b)(48)(v)(a) being  removed from EPA's regulation in 2015.

2) The removal of Section 22a-174-3a(a)(1)(I) from the SIP is approvable because this provision does not require the change at the source to also have an emission increase of a regulated air pollutant as required by 40 CFR 51.166(b)(48)(iv)(b) and is consistent with 40 CFR 51.166(b)(48)(v)(b) being removed from EPA's regulation in 2015.

3) The removal of Section 22a-174-3a(a)(1)(J) from the SIP is consistent with 40 CFR 51.166(b)(48)(v)(b) being removed from EPA's regulation in 2015.
Revising Section 22a-174-3a(j)(1)(E) as follows:

 "(j) Best Available Control Technology (BACT)

   (1) An owner or operator shall incorporate BACT for: 
   
   * * *

   (E) Potential emissions of 75,000 tons or more per year of CO2e from each new major stationary source if the new major stationary source also has potential emissions of an air pollutant above the significant emission rate threshold in Table 3a(k)-1of subsection (k) of this section: or
   
40 CFR 51.166(b)(48)(iv)(a) states: 

  "The stationary source is a new major stationary source for a regulated NSR pollutant that is not GHGs, and also will emit or will have the potential to emit 75,000 tpy CO2e or more;"
  
40 CFR 51.166(j)(2):

  "A new major stationary source shall apply best available control technology for each  regulated NSR pollutant that it would have the potential to emit in significant amounts."
  
40 CFR 51.166(b)(23)(ii):

  "Significant means, in reference to a net emissions increase or the potential of a source to emit a regulated NSR pollutant that paragraph (b)(23)(i) of this section, does not list, any emissions rate."
Approve: Connecticut's language requires a BACT analysis to be performed for greenhouse gases when a new major source has significant emissions that are not GHGs and the new source will have a PTE of 75,000 tons per year or more of CO2e. 
Revising Sections 22a-174-3a(j)(1)(F)  -  (I) by deleting (F), (H), and (I) and revising and renumbering Section 22a-174-3a(j)(1)(G) as follows: 

"Best Available Control Technology (BACT) 
 (1) An owner or operator shall incorporate BACT for: 

   * * *
   
   (F) Potential emissions of 100,000 tons or more per year of CO2e and potential emissions of one hundred (100) tons or more per year of greenhouse gases from each new stationary source and, from such a source, potential emissions of each air pollutant above the significant emission rate threshold in Table 3a(k)-1 of subsection (k) of this section; 
   
   (G) (F)Potential emissions of 75,000 tons or more per year of CO2e from each physical change or change in the method of operation of a major stationary source; if the physical change or change in the method of operation is a major modification that has potential emissions of an air pollutant above the applicable significant emission rate threshold in Table 3a(k)-1 of subsection (k) of this section.
   
   (H) Potential emissions of 75,000 tons or more per year of CO2e from each physical change or change in the method of operation of a stationary source, where such stationary source:
   
   (i) Emits or has the potential to emit equal to or greater than 100,000 tons per year CO2e, and
   
   (ii) Emits or has the potential to emit equal to or greater than one hundred (100) tons or more per year of greenhouse gases; or
   
   (I) Potential emissions of 75,000 tons or more per year of CO2e and potential emissions of each air pollutant above the significant emission rate thresholds in Table 3a(k)-1 of subsection (k) of this section from each physical change or change in the method of operation of a stationary source, where such stationary source:
   
   (i) Emits or has the potential to emit equal to or greater than 100,000 tons per year CO2e, and
   
   (ii) Emits or has the potential to emit equal to or greater than one hundred (100) tons or more per year of greenhouse gases."
40 CFR 51.166(b)(2)(i): "Major modification means any physical change in or change in the method of operation of a major stationary source that would result in: a significant emissions increase (as defined in paragraph (b)(39) of this section) of a regulated NSR pollutant (as defined in paragraph (b)(49) of this section); and a significant net emissions increase of that pollutant from the major stationary source."

40 CFR 51.166(b)(48)(iv)(b): See above for relevant text.

40 CFR 51.166(j)(2):

  "A new major stationary source shall apply best available control technology for each a [sic] regulated NSR pollutant that it would have the potential to emit in significant amounts."
  
40 CFR 51.166(b)(23)(ii): See relevant text above.

  40 CFR 51.166(j)(3): "A major modification shall apply best available control technology for each a [sic] regulated NSR pollutant for which it would be a significant net emissions increase at the source. This requirement applies to each proposed emissions unit at which a net emissions increase in the pollutant would occur as a result of a physical change or change in the method of operation in the unit."
Approve: The removal of Sections 22a-174-3a(j)(1)(F), (H), and (I) from the SIP is consistent with 40 CFR 51.166(b)(48)(v)(a) being removed from the EPA's regulation in 2015.

The revised Section 22a-174-3a(j)(1)(G), which is now codified as subsection (F), requires a BACT analysis to be performed for greenhouse gases when a source is undertaking a major modification and the modification results in an increase of 75,000 tons or more per year of CO2e. This is consistent with the EPA's regulations.

Amending Section 22a-174-3a(k)(1) [applicability to the PSD permit program within the State's regulations] by revising subsections A and B and by revising subsection C in its entirety as follows:

   (1)	The provisions of this subsection shall apply to the owner or operator of any new major stationary source:
      (A) Major stationary source fFor each air pollutant emitted at a level equal to or greater than the threshold designated in Table 3a(k)-1 of this subsection from such new major stationary source located in an attainment area or unclassified area for such pollutant; and
      
      (B) Stationary source for greenhouse gases, if the source emits, or has the potential to emit, equal to or greater than 100,000 tons per year of CO2e and one hundred (100) tons per year of greenhouse gases; or]
      
      (B) For greenhouse gases, provided that:

       (i) The new major stationary source emits or has the potential to emit equal to or greater than 75,000 tons per year of CO2e, and
       
       (ii) The new major stationary source emits or has the potential to emit an air pollutant at a level equal to or greater than the threshold designated in Table 3a(k)-1 of this subsection from such new major stationary source located in an attainment area or unclassified area for such pollutant.
       
    (C) Major stationary source:
    
       (i) For each air pollutant emitted at a level equal to or greater than the threshold designated in Table 3a(k)-1 of this subsection from such new major stationary source located in an attainment area or unclassified area for such pollutant, and
       
       (ii) For greenhouse gases, if the source emits, or has the potential to emit, equal to or greater than 75,000 tons per year of CO2e.
       
    (C) For the purposes of this subsection, a major stationary source of NOx or VOC located in an
    ozone attainment or unclassifiable area and not located in the Ozone Transport Region, as such Region is identified in Section 7511c(a) of the Act, shall be treated as a major stationary source of ozone.
40 CFR 51.166(a)(7): "Applicability. Each plan shall contain procedures that incorporate the requirements in paragraphs (a)(7)(i) through (vi) of this section.

  (i) The requirements of this section apply to the construction of any new major stationary source (as defined in paragraph (b)(1) of this section) or any project at an existing major stationary source in an area designated as attainment or unclassifiable under sections 107(d)(1)(A)(ii) or (iii) of the Act." 

40 CFR 51.166(b)(1) 

  "Major stationary source means:

  (i)(a) Any of the following stationary sources of air pollutants which emits, or has the potential to emit, 100 tons per year or more of any regulated NSR pollutant . . ..
  
  * * *
  
  (ii) A major source that is major for volatile organic compounds or NOx shall be considered major for ozone"
  
Regulated NSR pollutant is defined in 40 CFR 51.166(b)(48)(iv)(a): 

  "The stationary source is a new major stationary source for a regulated NSR pollutant that is not GHGs, and also will emit or will have the potential to emit 75,000 tpy CO2e or more;"
  

Approve for two reasons:

1) Table 3a(k)-1 in Connecticut's SIP contains the pollutant and emission rates that are significant, which are also equivalent to the EPA's definition of significant in 40 CFR 51.166(b)(23)(i). Therefore, under Connecticut's regulation, the new major source must have significant emissions of a regulated NSR pollutant other than GHGs in order for GHGs to be regulated within the PSD permit program.

2) The new language in Section 22a-174-3a(k)(1)(C) is equivalent to 40 CFR 51.166(b)(1)(ii)
(2) The provisions of this subsection shall apply to the owner or operator of any major modification:

   (A) Major modification  f For each air pollutant from such major modification located in an attainment area or unclassified area for such pollutant, that has:

      (i) Actual emissions that are equal to or greater than the significant emission rate thresholds in Table 3a(k)-1 of this subsection, and
      
      (ii) A net emissions increase that is equal to or greater than the significant emission rate thresholds in Table 3a(k)-1 of this subsection; and
      
 (B) Major stationary source when such major stationary source undertakes a physical change or change in the method of operation that will result in a net emissions increase that is equal to or greater than 75,000 tons per year CO2e; or
 
 (C) Stationary source that emits, or has the potential to emit, equal to or greater than 100,000 tons per year of CO2e and one hundred (100) tons per year of greenhouse gases, when such stationary source undertakes a physical change or change in the method of operation that will result in a net emissions increase that is equal to or greater than 75,000 tons per year CO2e.
 
 (B) For greenhouse gases, if:

   (i) An air pollutant from such major modification has emissions that exceed the emissions thresholds of subparagraph (A)(i) and (ii) of this subdivision,
   
   (ii) The net greenhouse gas emissions increase due to the modification equals or exceeds a value of 75,000 tons per year CO2e, and
   
   (iii) The net greenhouse gas emissions increase on a mass basis due to the modification exceeds a value of 0 tons per year.
40 CFR 51.166(b)(2)(i): "Major modification means any physical change in or change in the method of operation of a major stationary source that would result in: a significant emissions increase (as defined in paragraph (b)(39) of this section) of a regulated NSR pollutant (as defined in paragraph (b)(49) of this section); and a significant net emissions increase of that pollutant from the major stationary source."

40 CFR 51.166(b)(39): "Significant emissions increase means, for a regulated NSR pollutant, an increase in emissions that is significant (as defined in paragraph (b)(23) of this section) for that pollutant."

40 CFR 51.166(b)(23)(ii): "Significant means, in reference to a net emissions increase or the potential of a source to emit a regulated NSR pollutant that paragraph (b)(23)(i) of this section, does not list, any emissions rate."

40 CFR 51.166(b)(49)(iv): "Any pollutant that otherwise is subject to regulation under the Act as defined in paragraph (b)(48) of this section."

40 CFR 51.166(b)(48)(iv)(b): See above for relevant text.
Approve: Connecticut's regulations are consistent with the EPA's regulations.