Document ID: EPA-R02-OAR-2011-0499-0005
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2011-08-09T04:00Z

Technical Support Document

NOx RACT Source Specific SIP Revision – State of New Jersey

for the Naval Weapons Station Earle (NWSE) 

in Colts Neck, New Jersey

INTRODUCTION

Title I of the Clean Air Act Amendments of 1990 (Act or CAA) contains
many new and revised requirements for areas that have not attained the
national ambient air quality standards for ozone.  Section 182(f) of the
Act requires States to apply the same requirements to major stationary
sources of nitrogen dioxide (NOx) as defined by § 302 and 182(c), (d),
and (e) of the Act, as are applied to major stationary sources of
volatile organic compounds (VOC).  The new NOx requirements are
reasonable available control technology (RACT) and new source review for
major stationary sources in certain ozone nonattainment areas and
throughout any ozone transport region. 

On November 25, 1992, the Environmental Protection Agency (EPA)
published a NOx Supplement to the General Preamble (NOx Supplement) to
provide guidance on implementation of new provisions of the Act
concerning emissions of NOx.  57 Federal Register (Fed. Reg.) 55620
(Nov. 25, 1992).  The reader should refer to “The General Preamble for
Implementation of Title I of the Clean Air Act Amendments,” 57 Fed.
Reg. 13498 (Apr. 16, 1992), and the NOx Supplement for a more detailed
discussion of the other NOx requirements.

This technical support document (TSD) deals primarily with the State of
New Jersey Department of Environmental Protection’s (NJDEP’s) State
Implementation Plan (SIP) revision to the ozone SIP.  This SIP was
submitted to address the NOx RACT requirements specific to the
stationary internal combustion reciprocating engines operated by Naval
Weapons Station Earle, in Colts Neck, New Jersey (NJ).

II.	CLEAN AIR ACT REQUIREMENTS FOR OZONE ATTAINMENT, RACT AND NEW
JERSEY’S RACT REGULATION

A.	Ozone Attainment Requirements 

In 1997, EPA revised the health-based NAAQS for ozone, setting it at
0.08 parts per million (ppm) averaged over an 8-hour time frame.2  EPA
set the 8-hour ozone standard based on scientific evidence demonstrating
that ozone causes adverse health effects at lower ozone concentrations
and over longer periods of time than was understood when the
pre-existing 1-hour ozone standard was set.  

	On April 30, 2004 (69 Fed. Reg. 23951), EPA finalized its
attainment/nonattainment designations for areas across the country with
respect to the 8-hour ozone standard.  These actions became effective on
June 15, 2004.  The entire state of New Jersey is located in two
multi-state 8-hour ozone moderate nonattainment areas, the New
York-Northern New Jersey-Long Island, NY-NJ-CT nonattainment area, and
the Philadelphia-Wilmington-Atlantic City, PA-NJ-MD-DE nonattainment
area.  

	These designations triggered the Act’s requirements under section
182(b) for moderate nonattainment areas, including a requirement to
submit an attainment demonstration.  EPA’s Phase 1 8-hour ozone
implementation rule, published on April 30, 2004 (69 Fed. Reg. 23951)
(Phase 1 Rule) specifies that states must submit attainment
demonstrations for their nonattainment areas to the EPA by no later than
three years from the effective date of designation, that is, by June 15,
2007.  

On November 29, 2005, EPA published Phase 2 of the 8-hour ozone
implementation rule (70 Fed. Reg. 71612) (Phase 2 Rule) in which it
addresses the control obligations that apply to areas designated
nonattainment for the 8-hour ozone NAAQS.  Among other things, the Phase
1 and 2 Rules outline the SIP requirements and deadlines for various in
areas designated as moderate nonattainment.  For such areas, RACT plans
were due by September 2006 (40 CFR 51.912(a)(2)).  

B.	RACT Requirements  

	Sections 172(c)(1), 182(b)(2) and 182(f) of the Act require
nonattainment areas that are designated as moderate or above to adopt
RACT.  All of New Jersey is subject to this requirement since all
counties in the State are located in either of two nonattainment areas
that are classified as moderate ozone nonattainment areas for the 8-hour
ozone standard (40 CFR 81.331).  In accordance with section 182(b), New
Jersey must, at a minimum, adopt RACT level controls for sources covered
by a Control Techniques Guidelines (CTG) document and for any major
non-CTG sources.  

	Section IV.G of EPA’s Phase 2 rule discusses the RACT requirements
for the 1997 8-hour ozone standard.  It states, in part, that where a
RACT SIP is required, SIPs implementing the 8-hour ozone standard
generally must assure that RACT is met, either through a certification
that previously required RACT controls represent RACT for 8-hour ozone
implementation purposes or, where necessary, through a new RACT
determination.  The majority of counties in New Jersey were previously
classified under the 1-hour ozone standard as severe, while the
remaining counties were subject to RACT as part of the Ozone Transport
Region.  New Jersey chose a uniform applicability level for RACT based
on the severe classification which resulted in a statewide requirement
for major sources of NOx and VOC to be defined as those having emissions
of 25 tons per year or more of both VOC and/or NOx.  Under the 8-hour
standard, in areas classified as moderate, the definition for major
sources is 50 tons per year for VOC and 100 tons per year for NOx.
However, New Jersey’s choice to retain the original 1-hour ozone
limits statewide in New Jersey for purposes of the RACT analysis
resulted in a more stringent evaluation of RACT.  New Jersey’s use of
25 tons per year for RACT is consistent with the anti-backsliding
provisions of the Act.  See Clean Air Act Sections 110(l) and 193; and
South Coast Air Quality Management Dist (SCAQMD) v. EPA, 472 F.3d 882
(D.C. Cir. 2006).  

History of New Jersey’s NOx RACT Rule, Subchapter 19.  

NJDEP held public hearings on March 18 and 19, 1993, to hear public
comments on the proposed rule.  Following the public hearings and the
comment period, on November 15, 1993, New Jersey adopted Title 7,
Chapter 27, Subchapter 19, of the New Jersey Administrative Code
(Subchapter 19 or N.J.A.C. 7:27-19), entitled “Control and Prohibition
of Air Pollution from Oxides of Nitrogen.”  NJDEP submitted Subchapter
19 to EPA as a revision to the SIP on November 15, 1993.  EPA reviewed
the SIP revision and found it to be administratively and technically
complete by December 29, 1993.  On October 2, 1995, EPA proposed a full
approval of NJDEP’s Subchapter 19.  60 Fed. Reg. 51379 (Oct. 2, 1995).
 The public comment period ended November 1, 1995.  EPA did not receive
any comments on the proposed full approval.  However, during this public
comment period, discussions developed among regional EPA offices as to
the approvability of rules, such as NJDEP’s Subchapter 19, containing
generic or “process oriented” provisions establishing RACT
requirements for major sources of NOx and/or VOC emissions.  The
approvability issue related to Subchapter 19’s generic provision was
resolved and EPA approved Subchapter 19.  60 Fed. Reg. 51379 (Jan. 27,
1997) Subchapter 19 became effective on February 26, 1997.

On March 24, 1995, NJDEP adopted amendments to Subchapter 19.  NJDEP
submitted the amended Subchapter 19 to EPA as a SIP revision on June 21,
1996.  EPA found the SIP revision to be administratively and technically
complete by September 26, 1996.  On August 31, 1998, EPA proposed a full
approval of NJDEP’s Subchapter 19.  63 Fed. Reg. 46209 (Aug. 31,
1998).  The public comment period ended September 30, 1998.  EPA did not
receive any comments on the proposed full approval.  EPA approved
NJDEP’s amendments to Subchapter 19.  64 Fed. Reg. 14832 (Mar. 29,
1999).  The amendments became effective on April 28, 1999.

On July 1, 1996, NJDEP adopted additional amendments to Subchapter 19. 
NJDEP amended Subchapter 19 to make the regulation consistent with a new
program called the Open Market Emissions Trading (OMET) Program at
Subchapter 30.  On October 27, 1998, NJDEP submitted the amended
Subchapter 19 to EPA as part of the OMET Program SIP revision.  EPA
determined the submittal to be administratively and technically complete
on December 22, 1998.  On January 9, 2001, EPA proposed a conditional
approval of NJDEP’s OMET Program SIP revision, including the
corresponding amendments to Subchapter 19.  66 Fed. Reg. 1796 (Jan. 9,
2001).  The public comment period ended March 12, 2001.  Subsequently,
EPA and NJDEP identified a number of problems with the OMET program.  On
October 18, 2002, EPA announced it would cease processing the OMET
Program SIP revision and withdrew its proposed conditional approval.  67
Fed. Reg. 64347 (Oct. 18, 2002).  On February 25, 2004, NJDEP terminated
the OMET Program and repealed Subchapter 30 through rulemaking.  NJDEP
also amended Subchapter 19 on April 5, 2004 (effective date), to delete
those provisions related to the OMET Program, and to include new
provisions for sources that participated in the OMET Program to comply
with RACT.  In an April 26, 2004 letter, EPA notified NJDEP that new
provisions proposed in Subchapter 19 were not consistent with the ACT
and EPA’s RACT guidance and, therefore, were not approvable as a SIP
revision.  The corresponding OMET amendments to Subchapter 19 that dealt
with sources that availed themselves of the OMET Program were not
repealed.  Therefore, they are still part of the rules in Subchapter 19.
 NJDEP committed to delete the OMET provisions from Subchapter 19, and
related rules, in future rulemaking.  

It should be noted that, since the July 1, 1996 adoption, NJDEP adopted
administrative changes amendments to Subchapter 19 four additional times
without submitting the revised rule to EPA for approval as SIP
revisions.  The additional amendments include the following effective
dates:  May 4, 1998 (29 N.J.R. 3521(a); 30 N.J.R. 1563(b)); 
Administrative change on March 1, 1999 (31 N.J.R. 639); May 15, 2000 (31
N.J.R. 1671(a); 32 N.J.R. 1808(a)); April 5, 2004 (35 N.J.R. 3486(a); 36
N.J.R. 1791(a)); October 17, 2005 (36 N.J.R. 4228(a); 37 N.J.R.
3976(a)); and November 21, 2005 (36 N.J.R. 4607(a); 37 N.J.R. 4415(a)). 
NJDEP adopted additional amendments to Subchapter 19, effective October
17, 2005.  On July 31, 2007, EPA approved these amendments to Subchapter
19 as part of the SIP.

On March 20, 2009, NJDEP adopted additional amendments to Subchapter 19
and submitted it to EPA as a SIP revision on April 21, 2009. On June 4,
2009, EPA determined the submittal to be administratively and
technically complete.  NJDEP provided supplemental information to EPA on
May 7, 2009.  EPA proposed approval of the NJDEP’s amendments to
Subchapter 19 on April 23, 2010 (75 Fed. Reg. 21197). The public comment
period ended on May 24, 2010.  EPA did not receive any comments on the
proposed full approval. EPA approved NJDEP’s amendments to Subchapter
19 in the final rule on August 3, 2010 (75 Fed. Reg. 45483).  The
amendments became effective September 2, 2010.  

D.	Subchapter 19.13

The source-specific SIP revision discussed in this technical support
document was submitted to EPA, pursuant to Subchapter 19.  Subchapter
19.13 establishes a procedure for a case-by-case determination of what
represents RACT for a particular facility, item of equipment or source
operation.  This procedure is applicable in two types of situations: 
(1) where a major NOx facility contains any source operation or item of
equipment not listed in Subchapter 19.2 with the potential to emit more
than 10 tons of NOx per year; or (2) where the owner or operator of a
source operation or item of equipment that is listed in Subchapter 19.2
seeks approval of an alternative maximum allowable emission rate.  

	In the first instance, for any source operation or item of equipment at
a major NOx facility, with the potential to emit 10 TPY or more of NOx,
not specifically regulated under Subchapter 19.2, the owner/operator
must submit a 'NOx Control Plan' to the NJDEP.  This NOx Control Plan is
to include a technical and economic feasibility evaluation of NOx
control technologies as well as a proposed NOx emission limit.

	In the second instance, those specific sources subject to NOx limits
under Subchapter 19 may apply for an alterative emissions limit.  In
this case, NOx RACT control measures may be deemed impractical due to
some physical constraints or the control measures may be incapable of
reducing the emissions to the limits required under Subchapter 19.  In
this situation, the NJDEP may establish an alternative maximum allowable
emission rate for the affected sources.

	For each of these situations, Subchapter 19.13 provides that NJDEP
establish emission limits based upon a RACT determination specific to
the facility in question.  The procedures for requesting that
determination, and the standards for review of the request, are the same
in each situation.

	The owner or operator of a facility for which a NOx control plan is
required must obtain approval of the plan, implement it by May 31, 1995,
and continue to comply with it thereafter.  The Act imposes this
deadline.  Implementing the plan includes obtaining the required permits
and certificates, installing the approved NOx control technology, and
complying with the emission limits approved in the plan.  An owner or
operator seeking approval of an alternative maximum allowable emission
rate must obtain approval before the source operation or item of
equipment in question becomes subject to the rate normally applicable
under Subchapter 19, in order to avoid incurring violations for
exceeding that normally applicable rate.

	Subchapter 19.13(h) provides that "any alternate emissions limit
pursuant to Subchapter 19.3(c) or NOx Control Plan pursuant to
Subchapter 19.3(b) approved by the NJDEP will be submitted to EPA for
approval as a revision to the SIP for ozone."  An alternate emissions
limit or NOx Control Plan would be first proposed and adopted in New
Jersey and then, as required by law, submitted to EPA for approval as a
SIP revision.  

Subchapter 19 provides that any alternative emission limit approved by
NJDEP after May 19, 2009 shall have a limit of 10 years, unless the
source is modified, altered, or reconstructed during the term of the
plan in which case the source may need to apply to NJDEP for a new
alternate emissions limit, pursuant to Subchapter 19.13(b)(6) or
19.3(k).  NJDEP approved the source-specific SIP revision discussed in
this TSD on May 12, 2009.

E.	Enforceability of Subchapter 19

For sources not subject to specific emission limitations or work
practice standards, N.J.A.C. 7:27-19.13 provides a procedure and
schedule that must be followed in order to comply with the Subchapter. 
Noncompliance with this procedure would constitute a violation of
Subchapter 19, which would subject the source owner or operator to civil
and/or criminal penalties, as applicable.  EPA believes this is
sufficient to ensure that sources comply and should EPA have to take
enforcement action, it could use the same provisions to obtain
compliance.

EPA will process all source-specific SIP revisions submitted by NJDEP,
regardless of the status of EPA approval of Subchapter 19, provided that
NJDEP complies with the following:

- provide evidence that NJDEP has the necessary legal authority under
State law to approve and implement the compliance plan with reference to
appropriate State laws and regulations;

provide a description of the enforcement procedure NJDEP will use should
it discover a violation;

provide a description of the compliance strategy NJDEP will use to
ensure compliance; and

include a copy of any relevant permits which are contained in the
compliance plan.  For “grandfathered” sources, the compliance plan
must identify the applicable enforceable requirements or restrictions.

III.	EPA’S ANALYSIS OF STATE SUBMITTAL (Note this Technical Support
Document summarizes the state submission.  The complete RACT analysis,
related correspondence and SIP revision are available for inspection and
review at the EPA Regional Office and NJDEP State Office.)

Naval Weapons Station Earle Alternative NOx Emission Limit

Pursuant to Subchapter 19.3(h) “any alternate emissions limit pursuant
to section 19.3(c) or NOx Control Plan pursuant to section 19.3(b)
approved by the NJDEP will be submitted as an amendment to the SIP for
ozone.”  An alternate emission limit or NOx Control Plan would be
first proposed in New Jersey as an amendment to the SIP and then
submitted to EPA, by law, as a SIP revision.  Similarly, Subchapter
19.21(f) requires NJDEP to submit repowering plans to EPA as a revision
to the SIP.  This technical support document discusses EPA’s analysis
of a single source-specific SIP revision.

In a letter dated May 14, 2009 from Mark N. Mauriello, Acting
Commissioner, NJDEP, to Acting Regional Administrator George Pavlou, EPA
Region 2, New Jersey requested EPA’s approval of a revision to the NJ
SIP for ozone.  The request was for a NJ SIP revision for the Naval
Weapons Station Earle (NWSE) facility located at 201 Highway 34 South in
Colts Neck, NJ in Monmouth County.  NWSE facility contains one existing
and one new generator which are powered by one existing and one new 500
Kilowatt, lean burn, two-stroke, compression ignition, diesel fuel
fired, stationary internal combustion reciprocating engine (both engines
are Detroit Diesel Model 12V-92T).  The source-specific SIP revision for
NWSE was proposed by NJDEP on January 16, 2009 through public notice in
The Star Ledger Newspaper, which is circulated in Colts Neck, New
Jersey.  The public notice allowed 30 days for public comments and the
opportunity for a public hearing, offered upon written request.  NJDEP
did not receive any requests for a public hearing, therefore no hearing
was held.  EPA provided comments on the SIP revision prior to adoption
by NJDEP.  After reviewing and addressing EPA’s comments, NJDEP
adopted the source specific SIP revision on May 12, 2009 and
supplemented this information on May 21, 2009.  As part of the
completeness review, EPA ensured that NJDEP complied with the conditions
discussed earlier in Section II.E. for source specific SIP revisions. 
This technical support document is the next step in EPA’s rulemaking
process.

NJDEP’s SIP revision consists of two attachments with multiple
enclosures.  Attachment 1 includes the following documents:

Enclosure 1: SIP Completeness Checklist

Enclosure 2: A copy of the Alternate Emission Limit approval document

Enclosure 3: Response to comments document

Enclosure 4: Statement of basis

Enclosure 5: A copy of the Public Notice and Opportunity for Public
Hearing

Enclosure 6: A copy of the Affidavit of Publication of Public Notice

Enclosure 7: A copy of the application package from the applicant and
other supporting documentation

Attachment 2 includes a copy of N.J.A.C. 7:27-19.1 et seq., Control and
Prohibition of Air Pollution from Oxides of Nitrogen, most recently
amended by New Jersey on April 20, 2009.  

The NWSE facility contains one existing and one new generator powered by
one existing and one new 500 Kilowatt (kW), lean burn, two-stroke,
compression ignition, diesel fuel fired, reciprocating stationary
internal combustion engine.  According to N.J.A.C.7:27-19.8(e), engines
equal to or exceeding 370 kW (500 bhp) used for generating electricity
are subject to the following provisions under this chapter:  

Beginning March 7, 2007, existing lean burned diesel fuel fired engines
are required to comply with the revised NOx RACT limit of 2.3 g/bhp-hr. 

For units (37 kW or larger rated output) that commence operations after
March 7, 2007, engines are required to comply with the revised NOx RACT
limit of  0.90 g/bhp-hr. 

In accordance with N.J.A.C. 7:27-19.8(f) and 7:27-19.16, owners and
operators of these engines are required to adjust the engine’s
combustion process in accordance with the manufacturer’s recommended
maintenance schedule and meet specific recordkeeping requirements.

This means: 1) NWSE’s existing engine must comply with the revised NOx
RACT limit of 2.3 g/bhp-hr, 2) NWSE’s new engine must comply with the
revised NOx RACT limit of 0.90 g/bhp-hr, and 3) both of NWSE’s engines
must meet engine combustion adjustment, maintenance and recordkeeping
requirements.

However, while combusting diesel fuel, the NWSE’s existing and new
engine will not meet the NOx RACT limits of 2.3 and 0.90 g/bhp-hr,
respectively.  NSWE provided an analysis of available control technology
and economic feasibility options for reducing NOx emissions from the
engines. The analysis was conducted to determine the control technology
and NOx emissions limits that would represent the best achievable level
of control that is both technically and economically feasible.  A total
of 16 NOx emissions control technology options were evaluated to
determine if they were technically and economically feasible for
application to either engine, and, if so, how effective they would be in
reducing NOx emissions from these units and how much they would cost.
The list of options was compiled based on the list of technologies set
forth in the EPA’s Alternative Control Techniques (ACT) Document,
dated July 1993, EPA’s Air Pollution Control Cost Manual, dated June
7. 2003, and EPA’s Stationary Reciprocating Internal Combustion
Engines Update Information on NOx Emissions and Control Techniques,
dated September 1, 2000, and NJDEP’s State of the Art Manual for
Reciprocating Internal Combustion Engines, dated 2003.    Below are the
following evaluated NOx control options:

Fuel Switching

Emissions Averaging

Ignition Timing Retardation

Water Injection

Exhaust Gas Recirculation

Selective Catalytic Reduction

Selective Non-Catalytic Reduction

Catalytic Adsorption

Lean NOx Catalyst

Ozone Injection

Aftercooling

Non-Selective Catalytic Reduction

Catalytic Adsorption

SCONOx Technology

NOx Tech Emissions Control System

Prestratified Charge

The findings of the analysis of technical and economical feasibility
were that NONE of the NOx control technology options mentioned above was
considered to be technically and economically feasible for either of the
engines.  Details of this analysis are included in the Enclosure 7 of
the NJ SIP.  Therefore, an alternative emission limit (AEL), as
described in N.J.A.C. 7:27-19.13, must be implemented. NWSE submitted an
application pursuant to N.J.A.C. 7:27-19.13 for an AEL. NWSE has
proposed the following, to limit the:

NOx emissions rate from each engine to 11.3 g/bhp-hr,  

total NOx emissions rate while combusting 100% distillate oil to 4.67
tons per year for both engines combined,

combined hours of operation for both engines to less than 675 hours per
year,

operation of each engine to 75% load or less, and

annual fuel usage to 20,047.50 gallons per year combined for both
engines

The proposed AEL would allow NWSE to operate both of these engines on
100% distillate oil for up to 675 total hours per year, limit the annual
fuel usage to 20,047.50 gallons per year, and lower the allowable NOx
emissions from 15.98 (The current approved permit limit for one internal
combustion engine.) to 4.67 tons per year combined for both engines.

NJDEP’s May 21, 2009, Conditions of Approval for NWSE specify the NOx
emissions limits, combustion process adjustment mentioned above,
emission testing, monitoring, recordkeeping and reporting requirements. 
These permit conditions are consistent with the NOx RACT requirements
specified in Subchapter 19.  Continued compliance will be determined by
NJDEP’s review of NWSE’s records and other source data.  

EPA’s Evaluation: EPA reviewed NWSE’s application and NJDEP’s
source-specific SIP revision for completeness and approvability.  EPA
agrees with the technical and economic feasibility demonstration and the
proposed alternative maximum allowable NOx emission limit of 11.3
g/bhp-hr for each engine; maximum allowable NOx emissions rate for both
engines combined to 4.67 tons per year; combined hours of operation for
both engines to less than 675 hours per year; operation of each engine
to 75% load or less, and the annual fuel usage to 20,047.50 gallons per
year combined for both engines. Based on the revised emission limit, as
well as the limits on fuel use and hours of operation, EPA proposes to
approve NJDEP’s source specific SIP revision for an AEL for NWSE.

EPA’s APPROVABILITY RECOMMENDATION: Full Approval

	

 	The EPA defines RACT as the lowest emission limitation that a
particular source is capable of meeting by the application of control
technology that is reasonably available considering technological and
economic feasibility.  44 Fed. Reg. 53762 (Sept. 17, 1979).

2	In March 2008, EPA strengthened the Ozone NAAQS to a level of 0.075
ppm.  However, the Administrator is reconsidering this new standard and
is expecting to make a decision in July 2011.

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