Florida Department of Environmental Protection

Nonattainment Area New Source Review Updates

Rule Development Workshop

Chapters 62-210 and 62-212

October 20, 2010

2October 20, 2010

Introduction and Outline

• Background and Purpose• Preconstruction review• Fine particulate matter (PM2.5)

• Summary of proposed amendments• Additional plans (impacts to forms)• Rulemaking timeline

Florida Department of Environmental Protection

Background and Purpose

4October 20, 2010

"New Source Review"

• Also know as…• Construction permitting• Preconstruction permitting• Stationary sources—preconstruction review

• Three types of construction permits…• Prevention of Significant Deterioration (PSD)• Nonattainment New Source Review (NSR)• Minor source permits

5October 20, 2010

PSD vs. Nonattainment NSR• Prevention of

Significant Deterioration (PSD)• Attainment (or

unclassifiable) areas• 100 or 250 ton per

year major source threshold

• BACT

• Increments• Additional impact

analyses

• Nonattainment Area New Source Review• Nonattainment areas,

as designated by EPA• 100 or lower ton per

year major source threshold

• LAER

• Statewide compliance• Emissions offsets• Net air quality

improvement

6October 20, 2010

PSD and Nonattainment NSR

• Both programs…• Focus on largest sources of emissions• "Grandfather" existing sources

• Preconstruction review applies individually, by pollutant• An area will typically be in nonattainment for

only one or two pollutants• Nonattainment NSR applies for that

"affected pollutant" and its precursors• PSD applies for all other "PSD pollutants"

7October 20, 2010

NSR Reform

• Collective name for changes in federal rules• December 31, 2002• Projected actual emissions• Plantwide applicability limits• Other elements that have since been

vacated

• Changes clarify and add flexibility regarding applicability to existing major sources

• DEP previously adopted Reform for PSD• Now DEP is adding it to Nonattainment

NSR

8October 20, 2010

PM2.5

• Federal updates for fine particulate (PM2.5)• Rules allowing DEP to postpone regulating

PM2.5 under NSR are soon to expire

• Will no longer be able to use PM10 as a surrogate

• Impacts same sections of the rule, so doing as part of same rulemaking

• Must begin accounting for condensables

• DEP is adopting minimum requirements• State program must have these EPA-required

elements (NSR Reform and PM2.5 provisions)

Florida Department of Environmental Protection

Summary of Proposed Amendments

10October 20, 2010

Condensable Particulate Matter

• Adding definition of PM2.5

• Significant emissions rate (direct and precursor)

• Updating definition of PM10

• Requiring inclusion of condensable emissions• Gases condensing to form PM10 or PM2.5 at

ambient temperatures• Purposes of PSD and Nonattainment NSR

applicability, emissions limits, compliance• Not retroactive for previously issued permits• Federal requirement

11October 20, 2010

Example: 62-210.200 ("PM10")(b) For purposes of Rules 62-212.400 and 62-212.500, F.A.C., PM10 emissions shall include condensable PM10 (gaseous emissions from a source or activity which condense to form PM10 at ambient temperatures). Compliance with PM10 emissions limitations originating in a permit issued pursuant to Rules 62-212.400 or 62-212.500, F.A.C., and issued prior to January 1, 2011, shall not be based on condensable particulate matter unless required by the terms and conditions of the permit.

12October 20, 2010

"Affected Pollutant"

• Using consistent terminology• PSD – "PSD pollutant"• Nonattainment NSR – "affected pollutant"

• Clarifying language• Preconstruction review applies individually,

e.g.• Nonattainment for one or more affected pollutants• Attainment (or unclassifiable) for several PSD

pollutants

• Listing precursors in definitions• VOC and NOX are ozone precursors

• SO2 and NOX are PM2.5 precursors

13October 20, 2010

Example: 62-210.200 ("baseline actual")For a PSD pollutant or affected pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions...

14October 20, 2010

Major and Minor Facilities

• Eliminating this outdated language• Previously used to indicate facilities subject

to Nonattainment NSR

• Replacing with NSR Reform concepts• Major stationary sources• Major modifications• Already in place in rules for PSD

15October 20, 2010

Example: 62-212.500(4)(a)(a) LAER Requirement. The owner or operator of the proposed new major stationary source or major modification shall or modified facility may limit the emissions of the affected air pollutant from the new major stationary source or major facility or modification through the application and employment of LAER....

16October 20, 2010

Nonattainment NSR Emission Thresholds• Incorporating major stationary sources

thresholds for Nonattainment NSR• Similar but different from PSD thresholds• Nonattainment NSR thresholds can vary by

degree• Marginal• Moderate• Serious• Severe• Extreme

• Unknown degree of nonattainment, so adopting all

17October 20, 2010

Example: 62-210.200 ("major s. source")3. For purposes of Rule 62-212.500, F.A.C., any stationary source that emits, or has the potential to emit, 100 tons per year or more of an affected pollutant, except that the following emissions thresholds shall apply in [nonattainment areas]: a. 50 tons per year or more of volatile organic compounds in any serious ozone nonattainment area.

b. 25 tons per year or more of volatile organic compounds in any severe ozone nonattainment area.

c. 10 tons per year or more of volatile organic compounds in any extreme ozone nonattainment area.

d. 70 tons per year or more of PM10 in any serious PM10 nonattainment area....

18October 20, 2010

Applicability Procedures

• Incorporating NSR Reform elements• Already in state rules for PSD• Amendments add these concepts for

Nonattainment NSR• New versus existing emissions units• Projected actual emissions• Baseline actual emissions• Three-pronged test for applicability

• New emissions units• Existing emissions units• Hybrid test for mix of new and existing units

19October 20, 2010

Example: 62-212.300(1)(c)(c)(e) If the Department issues any construction permit that which avoids the requirements of subsections 62-212.400(4) through (12), F.A.C., or subsections 62-212.500(4) through (9), F.A.C., based in whole or in part on projected actual emissions calculations, the permit shall contain the following monitoring, reporting and recordkeeping provisions...

20October 20, 2010

Emissions Offsets

• Aligning state rules with federal requirements• Sufficient offsets

• Amount that must be secured• Ratio of the amount of increase• Varies by severity of nonattainment, from 1:1 to

1.5:1• Creditable offsets

• Must be same affected pollutant (or a PM2.5 precursor)

• Geographic location of offset, other procedures• Largely unchanged

• Using construction permits to implement

21October 20, 2010

Example: 62-212.500(5)(5) Emission Offsets.

(a) Emission Offsets Required....

(b) Sufficient Emission Offsets....

(c) (b) Creditable Emission Offsets.

1. Emissions of an affected air pollutant shall only be offset by emissions of the same affected air pollutant, except that direct PM2.5 emissions or emissions of precursors of PM2.5 may be offset by reductions in direct PM2.5 emissions or emissions of any PM2.5 precursor.

22October 20, 2010

Source Obligation

• Consolidating existing language• Clarifying PSD and Nonattainment NSR

text• Facilities becoming subject to either PSD or

Nonattainment NSR through relaxation of federally enforceable limit• Limit on capacity, or• Limit on emission levels

• After-the-fact review, as though construction had not yet commenced

23October 20, 2010

Example: 62-212.400(12)(b) At such time that a particular source or modification becomes a major stationary source or major modification (as these terms were defined at the time the source obtained the enforceable limitation) solely by virtue of a relaxation in any enforceable limitation which was established after August 7, 1980, on the amount of emissions or on the capacity of the source or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then the requirements of subsections 62-212.400(4) through (12), F.A.C., shall apply to the source or modification as though construction had not yet commenced on the source or modification.

24October 20, 2010

Plantwide Applicability Limits (PAL)• Expanding PAL to Nonattainment NSR

• Currently in rules for PSD• Part of NSR Reform• Addition of some necessary cross-references

• Clarifying the PAL language itself• Breaking large subsection into several

smaller, topical paragraphs

25October 20, 2010

Example: 62-212.500(2)(b)(b) Any owner or operator of any existing major stationary source seeking to establish or change a plantwide applicability limitation (PAL) for an affected pollutant shall comply with the requirements under Rule 62-212.720, F.A.C.

26October 20, 2010

Miscellaneous Edits and Corrections• Definitions, reference to 62-204• Reliance on incorporated federal

regulations• Baseline area• Baseline concentration• Major source baseline date• Minor source baseline date• Maximum allowable increase (new

definition)• Nonattainment area

• Reconstruction, unused definition

27October 20, 2010

Miscellaneous Edits and Corrections• Extraneous introductory text

• Recent federal PM2.5 requirements• Significant monitoring concentrations• Significant impact levels• PSD increments

• Simplification and consolidation• Nonattainment NSR exemptions• Structure is now parallel with PSD program• Simpler permitting procedure (construction

permits, no operating permits)

28October 20, 2010

Miscellaneous Edits and Corrections• Eliminate redundant or outdated

language• Emission changes• Open burning• Stack height policy

• Non-substantive updates• Fixing typographical errors• Consolidating on PM10 instead of PM10 or

PM-10

Florida Department of Environmental Protection

Additional Plans

30October 20, 2010

62-210.370 (AOR Required)

• Currently, must submit AOR if:• Title V or synthetic minor facility• Emit 10 tons per year (TPY) VOC or 25 TPY

NOX in an ozone nonattainment area• Otherwise required by rule or permit

• Striking the 10 TYP VOC, 25 TPY NOX

• Clean Air Act emissions statement• Creating simplified emissions statement

(later)• Streamlined alternative to a full AOR

31October 20, 2010

Forms

• Forms will likely need to be updated• Considering consolidation of forms

• One, modular form• Re-design for web/electronic considerations

(as opposed to current typewriter-friendly style)

32October 20, 2010

Recent PM2.5 Rules

• Soon to be published federal regulations• Significant monitoring concentration• Significant impact levels• PSD increments

• Department review of final regulations• May need to update proposed language

• Update the placeholders for dates, for example

Florida Department of Environmental Protection

Rulemaking Timeline

34October 20, 2010

Next Steps

• Comments• Appreciated throughout process• Most helpful if returned by November 10

• Unsure of need for additional workshops• Drivers in the coming year

• PM2.5 surrogate provision expires• (May 2011)

• EPA designation of nonattainment areas in Florida• (Ozone in August 2011)• (SO2 in July 2012)

35October 20, 2010

Comments by November 10, 2010• Mail to: Department of Environmental Protection

Division of Air Resource Management, MS-55002600 Blair Stone Rd.Tallahassee, FL 32399-2400

Attn: Lynn Scearce, Rules Coordinator

• Or e-mail to: gregory.deangelo@dep.state.fl.us and

lynn.scearce@dep.state.fl.us

• All comments are public records and will be posted on the department’s website at:

http://www.dep.state.fl.us/air/rules/regulatory/pm2p5_non_nsr.htm

• To receive updates on this rule development project by e-mail, provide name, affiliation, and e-mail address to Lynn Scearce at:

lynn.scearce@dep.state.fl.us