Source: https://www.federalregister.gov/articles/2010/07/27/2010-18365/approval-and-promulgation-of-implementation-plans-new-york-prevention-of-significant-deterioration
Timestamp: 2015-11-28 11:18:13
Document Index: 664533067

Matched Legal Cases: ['art 231', 'art 200', 'art 201', '§ 231', 'arts 51', 'art 51', 'art 51', 'art 231', 'art 231', 'art 231', 'art 231', 'art 231', 'art 51', 'art 231', 'art 201', 'art 231', 'art 231']

Federal Register | Approval and Promulgation of Implementation Plans; New York Prevention of Significant Deterioration of Air Quality and Nonattainment New Source Review
Dates: Comments must be received on or before August 26, 2010.
-43897 (6 pages)
Document Number: 2010-18365
Shorter URL: https://federalregister.gov/a/2010-18365 Related Topics
Instructions: Direct your comments to Docket ID No. EPA-R02-OAR-2010-0321. EPA's policy is that all comments received will be included in the public docket without change and may be made available online at http://www.regulations.gov, including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov Web site is an “anonymous access” system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an e-mail comment directly to EPA without going through http://www.regulations.gov your e-mail address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. For additional information about EPA's public docket visit the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.
On March 3, 2009, the State of New York, through the New York State Department of Environmental Conservation (NYSDEC), submitted to EPA Region 2 revisions to the New York State Implementation Plan (SIP). The submittal consists of revisions to three regulations that are already part of the New York SIP. The affected regulations are: 6 New York Code of Rules and Regulations (NYCRR) Part 231, New Source Review for New and Modified Facilities; 6 NYCRR Part 200, General Provisions; and 6 NYCRR Part 201, Permits and Certificates. The revisions were made to create a new New York State PSD regulation program and to update the existing New York State nonattainment regulations consistent with changes to the Federal NSR regulations published on December 31, 2002 (67 FR 80186). In today's action, EPA is proposing to approve those revisions with the caveat that EPA is not proposing action at this time on (1) the PSD permitting threshold provisions to the extent that those provisions require permits for sources of greenhouse gas (GHG) emissions that equal or exceed the 100/250 tons per year (tpy) GHG levels but are less than the thresholds identified in EPA's final Tailoring Rule at 75 FR 31514, 31606 (June 3, 2010); and (2) the PSD significance level provisions of New York's rule to the extent that those provisions treat as significant GHG emissions increases that are less than the thresholds identified in the final Tailoring Rule. Id. In accordance with the final Tailoring Rule, New York is expected to submit a letter to EPA addressing these issues shortly. Id. After receiving New York's letter, EPA will take action with respect to these additional items. Today's proposed approval with respect to GHG emissions above the Tailoring Rule thresholds is premised on our understanding that the New York State PSD regulations provide authority to regulate GHG emissions within EPA's meaning of the term “subject to regulation.”See 75 FR 31582. This understanding is based upon EPA's review of New York's definition of “Regulated NSR Contaminant,” which includes any contaminant that is “subject to regulation” under the Clean Air Act. 6 NYCRR § 231-4.1(43). New York is also expected to address its authority to regulate GHG emissions in its letter. In the event that New York articulates the view that it does not have authority to regulate greenhouse gases, EPA will revisit this issue before taking final action.
On December 31, 2002, EPA published final rule changes to 40 Code of Federal Regulations (CFR) parts 51 and 52, regarding the Clean Air Act's PSD and Nonattainment New Source Review (NNSR) programs. 67 FR 80186. Available at http://www.epa.gov/nsr/fr/20021231_80186.pdf. On November 7, 2003, EPA published a final action on the reconsideration of the December 31, 2002 final rule changes. 68 FR 63021. In that November 7th final action, EPA added the definition of “replacement unit,” and clarified an issue regarding plantwide applicability limitations (PALs). On June 13, 2007, EPA revised the rules to remove provisions for pollution control projects and clean units. 72 FR 32526. EPA further revised the rules on December 21, 2007, to clarify when facilities must keep records and report emissions when a “reasonable possibility” test shows that projected emissions increases could equal or exceed 50% of the Clean Air Act's NSR significant levels for a regulated NSR pollutant. 72 FR 72607. Collectively, these four final actions are referred to as the “2002 NSR Reform Rules.” The 2002 NSR Reform Rules are part of EPA's implementation of parts C and D of title I of the Clean Air Act (CAA), 42 U.S.C. 7470-7515. Part C of title I of the CAA, 42 U.S.C. 7470-7492, is the PSD program, which applies in areas that meet the National Ambient Air Quality Standards (NAAQS)—“attainment” areas—as well as in areas for which there is insufficient information to determine whether the area meets the NAAQS—“unclassifiable” areas. Part D of title I of the CAA, 42 U.S.C. 7501-7515, is the NNSR program, which applies in areas that are not in attainment of the National Ambient Air Quality Standards (NAAQS)—“nonattainment areas.” Collectively, the PSD and NNSR programs are referred to as the “New Source Review” or “NSR programs”. EPA regulations implementing these programs are contained in 40 CFR 51.165, 51.166, 52.21, 52.24, and part 51, Appendix S. The CAA's NSR programs are preconstruction permitting programs applicable to new and modified stationary sources of air pollutants regulated under the CAA.
The 2002 NSR Reform Rules made changes to four areas of the NSR programs. In summary, the 2002 Rules: (1) Provide a new method for determining baseline actual emissions; (2) adopt an actual-to-projected-actual methodology for determining whether a major modification has occurred; (3) allow major stationary sources to comply with plant-wide applicability limits (PALs) to avoid having a significant emissions increase that triggers the requirements of the major NSR program; and (4) require new recordkeeping and reporting. On November 7, 2003, EPA published a final action on its reconsideration of the 2002 NSR Reform Rules (68 FR 63021), which added a definition for “replacement unit” and clarified an issue regarding PALs. After the 2002 NSR Reform Rules were finalized and effective (March 3, 2003), various petitioners challenged numerous aspects of the 2002 NSR Reform Rules, along with portions of EPA's 1980 NSR Rules (45 FR 5276, August 7, 1980). On June 24, 2005, the DC Circuit Court issued a decision on the challenges to the 2002 NSR Reform Rules. New York v. United States, 413 F.3d 3 (DC Cir. 2005). In summary, the DC Circuit Court vacated portions of the Rules pertaining to clean units and pollution control projects, remanded a portion of the Rules regarding recordkeeping, e.g., 40 CFR 52.21(r)(6) and 40 CFR 51.166(r)(6), and either upheld or did not comment on the other provisions included as part of the 2002 NSR Reform Rules.On June 13, 2007, EPA revised the Rules to remove provisions for pollution control projects and clean units. On December 21, 2007, EPA took final action regarding the remanded portion on recordkeeping by promulgating the reasonable possibility in recordkeeping rule. Today's action is consistent with the decision of the DC Circuit Court because New York's submittal does not include any portions of the 2002 NSR Reform Rules that were vacated as part of the DC Circuit Court's June 2005 decision.
The 2002 NSR Reform Rules require that State agencies adopt and submit revisions to their SIP permitting programs implementing the minimum program elements of the 2002 NSR Reform Rules no later than January 2, 2006. (Consistent with changes to 40 CFR 51.166(a)(6)(i), State agencies are now required to adopt and submit SIP revisions within three years after new amendments are published in the Federal Register.) State agencies may meet the requirements of 40 CFR part 51, and the 2002 NSR Reform Rules, with different but equivalent regulations. However, if a State decides not to implement any of the new applicability provisions, that State is required to demonstrate that its existing program is at least as stringent as the Federal program. On March 3, 2009, the State of New York submitted a SIP revision for the purpose of revising the State's NSR permitting provisions. These changes were made primarily to adopt EPA's 2002 NSR Reform Rules with a few modifications. As discussed in further detail below, EPA believes the revisions contained in the New York submittal are approvable for inclusion into the New York SIP, with the caveat that we are taking no action on the specific items identified in Section I of this proposal related to the Tailoring Rule thresholds.
III. What is EPA's analysis of New York's NSR rule revisions? Back to Top
Under the Federal NSR rule, EUSGUs must select a baseline period using any 24-consecutive month period within the 5-year period immediately preceding the actual construction or another 24-consecutive month period that is demonstrated to be more representative. For non-EUSGUs, they must take the average of annual emissions of any 24-consecutive months within the 10-year period that precedes the proposed change. By allowing a longer period for selecting the 24-month average, sources are more likely to find a period of time with high emissions that will result in an increase below significance levels. Though EPA believes that the Federal rule allowing a 10-year look-back for defining the baseline period for non-EUSGUs retains the environmental benefits of the NSR program,
the revised Part 231 definition of Baseline Period is more restrictive than the Federal definition for non-EUSGUs because the Federal definition allows only a 5-year look-back period.
New York's revised Part 231 does not require that the facility be an existing major source for the applicable nonattainment pollutant before looking at the specific nonattainment significant threshold for applicability purposes. In other words, a facility only needs to be a major source for one nonattainment pollutant, for example, ozone, for all other nonattainment significant thresholds to apply for applicability purposes. The revised Part 231 for nonattainment areas follows the same applicability procedures as the PSD rules, i.e., the facility only needs to be an existing major stationary source for an attainment pollutant and then all the significant thresholds will apply for applicability purposes. This is more stringent than the Federal requirements in nonattainment areas which indicate that the existing facility must be a major stationary source for that specific nonattainment pollutant before the applicable significant nonattainment pollutant threshold is applied. E. Reasonable Possibility in Recordkeeping
We note that New York State is required to submit a SIP revision to EPA as a result of the Implementation of the New Source Review (NSR) Program for Particulate Matter Less than 2.5 Micrometers (PM 2.5) which was published in the Federal Register on May 16, 2008. 73 FR 28321. This rule requires the States to adopt and submit plan revisions to their attainment and nonattainment NSR SIP that incorporate a number of requirements pertaining to PM 2.5 within 3 years from the date EPA publishes the changes in the Federal Register. Consequently, New York State has until May 16, 2011 to submit the required PM 2.5 changes to EPA.
(31) NSR major modification. Any modification of a major facility that would equal or exceed the applicable significant project threshold of a regulated NSR contaminant in Table 3, Table 4, or Table 6 of Subpart 231-13 of this Part; and would result in a significant net emissions increase of that contaminant from the major facility.
(i) Any modification with a project emission potential for VOC or NO X that equals or exceeds the applicable significant project threshold or any net emissions increase at a major facility that is significant for VOC or NO X shall be considered significant for ozone.
With respect to the creation of Emission Reduction Credits (ERCs), the revised 6 NYCRR Part 231 states that for NO X, PM 10 or VOC emissions, ERCs must have physically occurred on or after November 15, 1990 but need not be contemporaneous. This November 15, 1990 date is much earlier than the emission inventory base year that New York State uses for planning purposes which is the year 2002. EPA regulations require a State to include ERCs created in the years prior to the emission inventory base year in the future year attainment inventories. ERCs created between November 15, 1990 and 2002 have been properly accounted for in the future year (projection) attainment inventories that are used to account for the reasonable further progress requirements. Therefore, EPA deems that the ERC meets the specific requirements from shutdowns and curtailments contained in 40 CFR part 51, Appendix S, section IV.C.3.
With respect to the creation of ERCs for PM 2.5, 6 NYCRR Part 231 states that the ERCs must have physically occurred on or after April 5, 2005 but need not be contemporaneous. The year for the last New York State PM 2.5 emission inventory is 2002. The April 5, 2005 date is more stringent than the Federal requirement of using the emission inventory base year of 2002. Therefore, EPA is proposing to approve the provision with the April 5, 2005 date.
New York's amendments to Part 201 revise the definition for “major stationary source or major source or major facility” at 6 NYCRR 201-2.1(b)(21). The definition will now encompass the term “major facility” and incorporate major facility and significant project thresholds for facilities emitting particulate matter or particles with an aerodynamic diameter less than or equal to a nominal 2.5 micro-meters (PM 2.5). EPA designated the New York City metropolitan area as nonattainment for the PM 2.5 standard (70 FR 944). NNSR review is now required for new major facilities and major modifications to existing facilities that emit PM 2.5 in significant amounts in the PM 2.5 nonattainment area.
EPA likewise determines that approval of New York's proposed NNSR SIP also would not interfere with attainment, reasonable further progress or any other applicable requirement of the CAA. New York's NNSR SIP approval dates back to July 1, 1980, well before the 1990 Clean Air Act Amendments. Since then, there have been many improvements in part D of the CAA, and these have been incorporated into New York's revised Part 231. Thus, approval of New York's new NNSR regulation into the SIP will add provisions that will support attainment or reasonable further progress. For example, the current NNSR SIP does not contain up-to-date offset ratios for VOCs and NO X inasmuch as it predates the ozone transport region, and contains a threshold of 50 tons/year throughout the State for VOCs and NO X. New York's revised Part 231 addresses these weaknesses. Furthermore, New York's reasonable further progress (RFP) demonstration does not rely on this NSR rule but on other regulations, such as Reasonably Available Control Technology (RACT).
As discussed in the preceding section, New York's PSD and NNSR SIP provisions are more stringent than the applicable Federal regulations and the existing NSR SIP approved on July 1, 1980. Because the proposed SIP revision will result in equivalent or greater emission reductions, the proposed SIP revision is consistent with the requirements of section 193 of the CAA.
1. EPA's environmental impact analysis of the 10-year look-back provision was provided at the time of the 2002 NSR Reform rule in EPA's “Supplemental Analysis of the Environmental Impact of the 2002 Final NSR Improvement Rules” and is available at http://www.epa.gov/nsr/actions.html#2002.