ILLINOIS POLLUTION CONTROL BOARD
    February 16,
    1995
    IN THE MATTER OF:
    )
    AMENDMENTS TO THE NEW
    )
    R92-21
    SOURCE REVIEW RULES
    )
    (Rulemaking-Air)
    35 ILL. ADM. CODE 203
    )
    ORDER OF THE BOARD
    (by G.
    T. Girard)~:
    On February
    3,
    1995,
    the Board received a joint motion filed
    by the Illinois Environmental Protection Agency (Agency) and the
    Illinois Environmental Regulatory Group
    (IERG)
    asking the Board
    to reconsider its April 22,
    1993 adopted rule final opinion and
    order
    in this proceeding.
    The Agency and IERG are asking the
    Board to reconsider the inclusion of~an interpretation for
    Section 203.209(b)
    in the Board’s opinion.
    The Board notes that
    such a request
    is outside of the requirements of the Board’s
    procedural
    rules; however, the Board stated in the April 22,
    1993
    opinion:
    The Board will allow any party, upon notice of a
    different interpretation by USEPA, to move for
    reconsideration on this issue at anytime.
    Such a
    filing may be filed under Section
    101.300 or 101.301
    and the Board hereby waives,
    for purposes of this
    issue,
    the time deadlines set forth in those procedural
    rules.
    In support of the motion, the Agency and IERG point out that
    the United States Environmental Protection Agency
    (USEPA) has
    indicated “that it will disapprove Illinois’ NSR new
    source
    review
    Rules SIP submittal unless the Board withdraws its formal
    interpretation of Section 203.209(b)”.
    (Mot.
    at
    2, citing 59
    Fed.
    Reg.
    48839.)
    The Board had included the interpretation of
    Section 203.209(b) at the request of the Agency and IERG.
    The
    Board understood that such an interpretation might not be
    acceptable to the USEPA and therefore included an opportunity to
    request reconsideration.
    The Board will therefore grant
    reconsideration of its April
    22,
    1993 opinion and order and upon
    reconsideration the Board will strike the interpretation of
    Section 203.209(b).
    The Board is persuaded that the interpretation of Section
    203.209(b)
    need not be included in the final Board opinion in
    R92-21.
    Deleting the interpretation will not change the merits
    of the rulemaking and the Board will take no further action on
    the proceeding.
    The Board will repeat the opinion and order from
    April
    22,
    1993,
    and stike the subsection entitled “Interpretation
    of Section 203.209(b)” which began on page
    6 and concluded on the
    top of page
    9 of the April
    22,
    1993 opinion and order.
    2
    ILLINOIS POLLUTION CONTROL BOARD
    February 16,
    1994
    IN THE MATTER OF:
    )
    AMENDMENTS TO THE NEW
    )
    R92-21
    SOURCE REVIEW RULES
    )
    (Rulemaking)
    35 ILL. ADM. CODE 203
    )
    Adopted Rule.
    Final Order Upon Reconsideration.
    OPINION
    AND
    ORDER OF THE BOARD
    (by G.
    T. Girard):’
    On November 13,
    1992, the Illinois Environmental Protection
    Agency
    (Agency)
    filed this proposal for rulemaking.
    The proposal
    is intended to address permitting for the construction and
    operation of new or modified major stationary sources
    in
    nonattainment areas.
    The proposal represents one part of
    Illinois’
    submittal of a complete state implementation plan
    (SIP).
    Pursuant to Section 182(a)
    of the Clean Air Act,
    as
    amended in 1990,
    Illinois
    is to adopt and submit its plan by
    November 15,
    1992.
    On November 19,
    1992,
    the Board adopted the
    First Notice Opinion and Order
    in this proceeding without comment
    on the substance of the rule.
    This proposal was filed pursuant to Section 28.5 of the Act
    and was accepted for hearing.
    (P.A.
    87-1213, effective September
    26,
    1992.)
    Pursuant to the provisions of that section the Board
    is required to proceed within set time-frames toward the adoption
    of this regulation.
    The Board has no discretion to adjust these
    time—frames under any circumstances.
    The Board held two hearings
    as prescribed by Section 28.5 on January
    6,
    1993, and February 5,
    1993.
    The record in this proceeding was closed on February 23,
    1993, fourteen days after the availability
    of
    transcripts from
    the February
    5 hearing.
    On March
    11,
    1993, the Board timely adopted the second
    notice opinion and order.
    The second notice was submitted to the
    Joint Committee on Administrative Rules
    (JCAR)
    on that same day.
    On April
    22,
    1993,
    the Board received a certification of no
    objection from JCAR.
    Today,
    the Board acts to send this
    rulemaking to final notice.
    PROCEDURAL HISTORY
    The Board wishes to acknowledge the special contribution
    made by Marie
    E.
    Tipsord, who has served as Hearing Officer
    throughout these proceedings.
    3
    The Agency filed a motion with the proposal on November 13,
    asking that the Board waive several requirements which govern the
    filing of
    a regulatory proposal.
    Specifically, the Agency asked
    that it be allowed to submit the original and five complete
    copies of the proposal and four partial copies of the proposal,
    rather than the original and nine complete copies to the Board.
    Further, the Agency asked that it not be required to supply the
    Attorney General or the Department of Energy and Natural
    Resources with a complete copy of the proposal.
    Lastly,
    the
    Agency asked that it not be required to submit documents which
    are readily available to the Board on which the Agency will rely
    at hearing.
    The Board granted the Agency’s motion on November
    19,
    1992.
    At the January 6,
    1993,
    hearing in this matter, the Board’s
    hearing officer entered an order based on arguments made at the
    hearing.
    The order would allow anyone who argues that they may
    be prejudiced by the notice in the Mt. Vernon newspaper to
    question Mr. Romaine of the Agency on his testimony given at the
    January
    6,
    1993, hearing.
    In addition, the hearing officer
    stated that:
    “my reading of 28.5
    is that the Agency should be
    available, and therefore shall be available to answer additional
    questions at the second hearing
    .
    .
    .“.
    (Tr.
    at 124.)
    The
    hearing officer limited the scope of questioning to unresolved
    issues pursuant to Section 28.5(g)(l)(B).
    (Tr.
    at 127.)
    On January 13,
    1993, the Board received a filing from the
    Illinois Environmental Protection Agency
    (Agency)
    entitled
    “Agency’s Objection to Hearing Officer’s Ruling, Language Added
    to Section 203.112 Pursuant to Hearing Officer Order,
    and USEPA’S
    September 3,
    1992, transition memo”
    (objection).
    On January 15,
    1993,
    the Board received a second filing from the Agency entitled
    “Motion for Expedited Decision on Agency’s Objection to Hearing
    Officer’s Ruling”
    (motiOn).
    On January 20,
    1993,
    the Board
    received responses to the objection filed by the Illinois
    Environmental Regulatory Group
    (IERG), Illinois Steel Group
    (Steel)
    and Stepan Company
    (Stepan).
    On January 21,
    1993, the Board upheld the hearing officer’s
    order.
    The Board states:
    Upon reviewing the transcript and the arguments put forward
    by participants,
    the Board
    is persuaded that hearing officer
    has correctly read Section 28.5 of the Act.
    Allowing
    questions of the Agency at a second hearing will ensure the
    development of complete rulemaking record as well as
    expediting the process.
    Such a reading of Section 28.5(g)
    coinports with the legislative goal of expedited rulemaking
    under the Clean Air Act.
    The Board affirms the hearing
    officer order.
    (R92-2l, January 21,
    1993,
    at 5.)
    On January 27,
    1993,
    the Board received a document entitled
    4
    “Comments of Chicago Lung Association and the Illinois Chapter of
    the Sierra Club”.
    The document was filed by Mr. Ron Burke on
    behalf of Chicago Lung Association and the Illinois Chapter of
    the Sierra Club.
    The filing states:
    “If a waiver from the Board
    is necessary, Chicago Lung Association and the Illinois Chapter
    of the Sierra Club request one.”
    The Board will considered this
    filing a motion to waive for good cause the written submission of
    testimony 10 days before hearing pursuant to Section 28.5(g)
    of
    the Act.
    On February 4,
    1993,
    the Board denied the motion.
    On January 29,
    1993,
    the Agency and the Illinois
    Environmental Regulatory Group filed a joint motion requesting
    that the Board interpret Section 203.209(b)
    as set forth
    in the
    motion.
    On February 23,
    1993,
    a motion to incorporate
    information from previous proceedings into this docket filed by
    the Illinois Steel Group.
    The Board did not receive responses to
    this motion and on February 24,
    1993,
    the American Automobile
    Manufacturers filed motion to file its public comment instanter.
    The Board did not receive responses to this motion.
    On March 11,
    1993, the Board denied both motions.
    On April
    14,
    1993,
    IERG filed a motion to clarify the
    February 5,
    1993, testimony of Mr.
    Sid Marder.
    The motion asks
    for clarification of subsection d on page 141 of the transcript.
    The motion further states that the Agency does not object to this
    clarification.
    The clarification would amend the testimony to
    read:
    d.
    In the case where a source has filed a
    complete application for a construction
    permltT inciwUng a PSD permit,
    prior to the
    date of an area as nonattainment,
    or the
    dates given above, whichever occurs later,
    the calculation shall not include emission
    increases allowed by that permit.
    On April 19,
    1993, the Board received a response to the
    April
    14 motion from the Agency indicating support for the motion
    and joining with IERG in moving that the Board adopt the
    clarification.
    The Board grants the motion and will clarify,
    in
    this opinion, Mr. Marder’s testimony.
    The Board also notes that the Agency at the hearing on
    February 5 and in its final comment renewed its objection to
    answering questions at the second hearing.
    (Tr.
    at 133; PC
    10 at
    12_13.)2
    The Board notes the objection.
    2The transcripts from the 1/6/93 and 2/5/93 hearings were
    consecutively numbered and will be cited as “Tr.
    at
    _“;
    testimony was entered as
    if read and given an exhibit number,
    exhibits will be cited as “Exh.
    —
    at
    _“;
    public comments will
    5
    DISCUSSION
    The Board stated at first notice that it was necessary to
    format the proposal submitted by the Agency to comport with
    filing and other requirements of the Administrative Code Unit of
    the Secretary of State’s Office prior to submission for first
    notice.
    The specific changes necessary were:
    1.
    The table of contents contained italicized
    material;
    2.
    The authority note did not include Section 10 of
    the Act;
    3.
    Section 203.145 included a Source note incorrectly
    numbered;
    4.
    Section 203.206 contained incorrect strike—through
    and underlines and required renumbering;
    5.
    The indent levels in Section 203.302 (a) (3) (A) and
    (B) were incorrect;
    6.
    Section 203.303 contained incorrect strike-through
    and underlines and an error in a citation;
    7.
    Subpart H in the text had incorrect spacing.
    The Board also notes that the text of the proposal contained
    several typographical and grammatical errors which the Board
    could not correct prior to hearing under the provisions of
    Section 28.5(m)
    of the Act.
    Those corrections were made at
    second notice.
    The Agency presented testimony in support of the proposal at
    the January
    6,
    1993, hearing.
    Mr. Christopher Romaine testified
    for the Agency.
    Mr. Romaine indicated that the New Source Rules
    (NSR)
    apply only in nonattainment areas for the contaminants for
    which the area is designated nonattainment.
    (Exh.
    1 at
    5.)
    The
    rules establish a construction permit program with four essential
    requirements imposed on owners or operators of major projects.
    (Exh.
    1 at 2.)
    The four requirements are:
    1.
    The imposition of the lowest achievable
    emission rate (LAER);
    2.
    A major project must be accompanied by
    compensating emission offsets from other
    sources in the area;
    3.
    Present compliance by other sources in the
    state which are under common ownership or
    control with the person proposing the
    project;
    be cited as “PC
    at
    6
    4.
    The final requirement applies only to
    nonattainment areas for ozone and carbon
    monoxide.
    In these areas an analysis of
    alternatives to a particular major project
    must be made which demonstrates that the
    benefits of the project outweigh the
    environmental and social costs.
    (Exh.
    1 at 3—4.)
    A source
    is considered to be “major”
    if there is a new
    source,
    if there
    is a physical change at a source which
    is not
    major where the physical change itself constitutes
    a major
    source,
    if there is reconstruction of
    a major source,
    or if there
    is a significant modification to a major source.
    (Exh.
    1
    at 4.)
    Significant modifications are an emissions increase of 100 and 25
    tons per year
    (tpy)
    for carbon monoxide and particulate matter,
    respectively.
    A significant modification for volatile organic
    compounds,
    nitrogen oxides and sulfur dioxide
    is 40 tpy.
    (Exh.
    1
    at 5.)
    The adoption of these rules
    is important to Illinois in
    order to meet our obligations to adopt appropriate new source
    review rules and avoid federal sanctions if we do not have rules
    in place.
    The adoption of these rules will also codify in
    Illinois several provisions which USEPA considers requirements
    for permit issuance.
    (Exh.
    I
    at
    19.)
    Further,
    in Attachment A
    to the Statement of Reasons filed with the proposal, the USEPA
    indicated that the proposal is federally approvable.
    The Agency
    also indicated that the changes discussed below would not alter
    the approvability of the proposal.
    (PC 10 at 11-12.)
    The economic impact of these regulations on sources range
    from incidental to a maximum of $6500 per ton for offsets and
    control.
    The participants in this proceeding were in general
    agreement with the proposal.
    For the most part in areas where
    there was disagreement an agreement was worked out before
    submission of final comments.
    The discussion following is a
    section by section analysis of changes made pursuant to comments,
    as well as a discussion of the areas of contention at second
    notice.
    Section 203.206
    Mr. Harder also testified concerning the “dual source
    definition” currently contained in Section 203.206.
    Mr. Marder
    points out that the USEPA in its December 17,
    1992, Federal
    Register notice of USEPA’s final approval of the state’s existing
    new source review rules
    (Exh.
    4)
    discussed the dual source
    7
    definition.3
    The USEPA indicated in that notice that a plant-
    wide definition of source would be acceptable under the Clean Air
    Act.
    (Tr. at 143; Exh.
    4 at 59933.)
    Thus, Mr. Marder suggested
    that Section 203.206(a)
    be amended to reflect a plant—wide
    definition of source.
    (Tr.
    at 144.)
    The specific language
    suggested by Mr. Marder in Section 203.206
    is:
    a)
    For purposes of this Part, the term “major
    stationary source” shall exclusively mean
    “building,
    structure and facility”,
    as those
    terms are defined in Section 203.113 of this
    Part.
    (Renumbering the remainder of the Section).
    The Steel Group points out in its comments
    (PC
    6)
    that the
    current definition of source found
    in the Board’s rules allows
    for an individual piece of equipment to be considered a major
    source
    if the emission rate is high enough.
    (PC
    6 at
    3.)
    As a
    result changes in such equipment would have to be offset by
    changes within that “source”.
    (PC
    6 at
    3.)
    The Steel Group
    maintains that such
    a definition acts as a disincentive to the
    replacement of control equipment.
    (PC at 4.)
    The Steel Group
    agrees that the change
    in Section 203.206(a) proposed by IERG
    would have the desired effect.
    (PC
    6 at 4.)
    However, the Steel
    Group believes such a change would create a confusing definition
    section.
    (PC
    6 at
    4.)
    The Steel Group advocates deleting the
    definition of “installation” at Section 203.125 to adopt the
    plant—wide definition of source.
    (PC
    6 at 5.)
    The Agency at the February 5,
    1993, hearing and in its final
    comments expressed support for the language proposed by IERG.
    (Tr. at 160; PC 10 at 3-4.)
    In addition, CPC and Stepan
    expressed support for this change.
    (Exh.
    11 at 4; Exh.
    9 at 12.)
    The Board agrees that the adoption of a plant-wide source
    definition is advisable at this time.
    Without discussing the
    merits of the two alternatives to adopting the plant—wide
    definition the Board will accept the IERG proposal.
    The Board
    notes that Section 203.125 was not proposed for amendment at
    first notice and therefore the Board will not open that section
    at this time.
    Mr. Ron Burke, testifying on behalf of the Chicago Lung
    Association and the Sierra Club, offered an amendment to Section
    203.206(d).
    Mr.
    Burke offered a change regarding fugitive
    emissions.
    (Tr. at 193.)
    Specifically, the amendment would
    3The Board notes that the USEPA final approval appeared
    after the initial filing of the proposal.
    8
    include fugitive emissions in calculation of whether a source is
    a major source in a nonattaininent area and provides:
    d)
    For purposes of this Part,
    in
    areas that are classified
    as serious,
    severe, or extreme.. nonattaininent,~ the
    fTh~itiveemissions of a stationary source shall be
    jr~c1uded.in.determinin~.whet~ier.
    it is
    a major.
    stationary source.
    In areas that are not c~lassifiedas
    serIous, severe or.extreme nonattainment.. the fugitive
    emissions of a stationary source shall not be included
    in determining whether
    it
    is
    a major stationary source,
    unless the source belongs to one of the following
    categories of stationary sources.
    The Agency supports this change as
    it incorporates guidance
    received by the Agency from USEPA.
    (Exh.
    6.)
    In addition the
    city of Chicago stated in support for the amendment.
    (PC 5 at
    2.)
    The Board will accept the amendment put forward by Mr.
    Burke.
    Section 203.201
    The Illinois Manufacturer’s Association
    (IMA)
    expressed
    concern with the applicability of the proposal to sources with
    pending permit applications or which have permits that have not
    been constructed.
    (PC
    4 at 1.)
    IMA
    asks the Board to exempt
    from these regulations any source which had filed its application
    on or before the date on which the Clean Air Act required the
    states to adopt those rules.
    IMA
    points out that the provisions
    of these regulations include requirements that the control
    equipment and process measures produce LAER (Section 203.301)
    and
    that the source provide offsets
    (Section 203.302).
    (PC
    4 at 2.)
    The
    IMA
    points that both of these procedures are intended to be
    met prior to permit application.
    (PC
    4 at
    2.)
    The
    IMA
    also points that Mr. Romaine testified on behalf of
    the Agency that the Agency did not intend to apply the amended
    provisions to include sources which had applied for their permits
    before November
    15,
    1992.
    (PC 4 at 2.)
    The
    IMA
    also cites to
    the USEPA transitional guidance document entered in this
    proceeding as Exhibit
    2 which indicates that sources which
    submitted complete applications by the submittal deadline may
    receive final permits under the existing rules.
    (PC
    4 at
    3.)
    Therefore, the
    IMA
    asks that the Board amend Section 203.201
    to reflect the policy expressed in the IJSEPA guidance documents
    as well as that expressed by the Agency.
    That policy
    is one
    whereby a permit application filed by November 15,
    1992, for
    nitrogen oxides and volatile organic material emission for
    sources located in ozone nonattainment areas are not subject to
    these amendments.
    Further,
    these amendments do not apply to
    permit applications filed by June 30,
    1992,
    for PM1O or by May
    9
    15,
    1992,
    for SO2.
    (PC 4 at 4.)
    The specific change requested
    would add to the end of Section 203.201, the following:
    Revisions to this Part which were adopted to
    implement the Clean Air Act Amendments of
    1990 shall not apply to any new major
    stationary source or major modification for
    which a permit application was submitted by
    June 30,
    1992, for PM1O, May 15,
    1992,
    for
    SO2,
    or by November 15,
    1992,
    for nitrogen
    oxides and volatile organic material
    emissions for sources located in all ozone
    nonattainment areas.
    CPC International,
    Inc.,
    also expressed concern regarding
    the status of construction permits issued where the facility is
    not complete.
    (Exh.
    11 at 4; PC
    7
    at 5.)
    The Agency states that it has “no objection” to the revision
    to Section 203.201 being proposed by the IMA.
    The Board is
    persuaded that the IMA’s offered amendment will accurately
    reflect the transition policy of the USEPA and the Agency.
    The
    Board will amend Section 203.201 as requested by the IMA.
    Section 203.303(b)
    The Illinois Steel Group recommends that Section 203.303(b)
    be amended to clear up an inconsistency within that section.
    The
    Steel Group points out that Section 203.303(b) (2) directly
    conflicts with subsection
    (b)(3)
    and
    (b)(4).
    (PC
    6 at 16.)
    Subsection
    (b) (2) could be construed for any source shutdown
    whether past or present.
    Subsection
    (b)(3)
    is directed towards
    future shutdowns and
    (b) (4) toward past shutdowns.
    (PC
    6 at 17.)
    Therefore,
    the Steel Group recommends that Section 203.303(b)
    be
    amended to clear up the inconsistency as follows:
    b)
    The emission offsets provided:
    1)
    Must be of the same pollutant and further be of a
    type with approximately the same qualitative
    significance for public health and welfare as that
    attributed to the increase from a particular
    change;
    2)
    Must,
    in thc caoc of a ~thutdown,havc ooourrcd
    ~-inccApril
    24, 197~~r .thc d~tcthe are~i~
    dc~iignatcdby thc UCEPAUnitcd Statc3 .~nvironmcnt~
    Protcoti~n
    AQenoy
    (UCEPM
    c~ a
    n~nattairnuerit
    area
    for the pollutant, whichcvcr Ia marc repent,. and
    the. rthutdown Gouroc.i~bcthg.repl~eedby ~~imi1ar
    10
    ~o~roourc~and fa~t, in the case of a fuel
    cóinbüst~on
    sóürce
    be based on the type of
    fuel
    being burned at the time the permit application is
    filed,
    and,
    if offset is to be produced by
    a
    future switch to a cleaner fuel,
    be accompanied by
    evidence that long—term supplies of the clean fuel
    are available and a commitment to a specified
    alternative control measure which would achieve
    the same degree of emission reduction if return of
    the dirtier fuel is proposed;
    3-)
    Must,
    in the caac of ~ c~hutdowr~of a
    ~ow~cc or
    permanent curtailment of production or operating
    houro ooourr~ngon or ~ftcr the date a permit
    application ia filed for
    a new or modified aource,
    have been made known to the affected work forcc~
    4
    ~.)
    Must,
    in the case of a past shutdown of a source
    or permanent curtailment of production or
    operating hours,
    have occurred since April
    24,
    1979, or the date the area is designated
    a
    nonattainment area for the pollutant,
    whichever is
    more recent,
    and, until the USEPA has approved the
    attainment demonstration and state trading or
    marketing rules for the relevant pollutant,
    the
    proposed new or modified source must be
    a
    replacement for the shutdown or curtailment;
    ~-
    ~)
    Must be federally enforceable by permit,
    ~
    ~)
    Must not have been previously relied on,
    as
    demonstrated by the Agency,
    in issuing any permit
    pursuant to 35 Ill. Adm. Code 201.142 or 201.143
    or this Part,
    or for demonstrating attainment
    or
    reasonable further progress.
    The Agency states that it has no objection to the amendment
    proposed by the Steel Group.
    (PC 10 at 10.)
    The city of Chicago
    also indicated that it “supports any modifications to the
    language in the current proposal that may be necessary in order
    to comport with the original intent and to avoid any
    inconsistencies that may exist with other subparts of this
    section”.
    (PC
    5 at 2.)
    The Board agrees that the language
    proposed by the Steel Group will help to make the intent of the
    rule clear.
    Therefore the Board will adopt the amendment.
    Section 203.207
    Pennzoil Company raises a concern regarding the major
    modification de minimis criteria of 25 tons per year or more of
    11
    VOCs and NOR.
    (PC 2 at 5.)
    Pennzoil maintains that the phrase
    “an increase
    in emissions of 25 tons per year”
    in Section
    203.207(d)
    should include the word “net” before emissions.
    Pennzoil believes that such a change is consistent with the Clean
    Air Act and reflects the intent of the proposal.
    (PC
    2 at 5.)
    The Steel Group echoes the concern initially brought by
    Pennzoil and argues that an amendment to Section 203.207(d)
    would
    more accurately reflect the intent of the Clean Air Act.
    (PC
    6
    at 13-14.)
    The Steel Group states:
    The effect of the rule as IEPA has proposed
    it,
    is that a source which could net out of
    the NSR rules under the de minimis exemption
    could be brought back into the rules by
    proposed Section 203.207(d)
    if
    it had a
    greater than 25 tpy increase at any emission
    unit.
    (PC
    6 at 13.)
    The Agency opposes an amendment to Section 203.207(d).
    (PC
    10 at 6-7.)
    The Agency argues that the intent of the Clean Air
    Act under these provisions refer to an increase from a single
    change.
    (PC
    10 at 6.)
    The Agency states that it
    is
    inappropriate and inconsistent to introduce the “net increase”
    concept of Section 182(c) (6)
    of the Clean Air Act into this
    section.
    (PC 10 at 6.)
    The Board finds that the record lacks sufficient information
    for the Board to amend Section 203.207(d).
    Other Comments
    Pennzoil suggested that the definition in Section 203.112(a)
    should be revised to include “installation” in order to be
    completely consistent with USEPA’s definition.
    (PC
    2 at 2.)
    In
    addition, Pennzoil suggested that the listing of sources
    in
    Section 203.206(a)
    should be reorganized so that the listings are
    in a more logical order.
    (PC 2 at 4.)
    The Agency indicated that it did not concur with the changes
    suggested by.Pennzoil.
    Specifically, the Agency indicated that a
    change was not necessary to Section 203.112(a)
    given the agreed
    upon change Section 203.206(a).
    (PC
    10 at
    5.)
    The Agency also
    stated that the order of Section 203.206(a)
    did not create an
    ambiguity.
    (PC 10 at 5.)
    The Society of Plastics Industry
    (SPI) suggested that “non-
    volatile compounds also be exempted from the VOC definition”.
    (PC
    3 at 2.)
    The Agency indicated that it had specifically
    included the definition promulgated by USEPA in 1992 and that no
    12
    further change was necessary.
    (PC 10 at 7.)
    Stepan and CPC also expressed a concern regarding statements
    made at hearing by Mr. Romaine on the issue of “negligible”
    increases
    in emissions.
    (PC 8 at 6;
    Exh.
    9 at
    12;
    Exh.
    11 at 4.)
    Stepan and CPC are requesting written guidance from the Agency on
    how it will interpret “negligible” increases.
    The Agency
    indicated in testimony that such written guidance would be
    forthcoming.
    The Chicago Lung Association and Sierra Club also suggested
    that the Agency and the Board amend the rules to include
    pollution prevention.
    Mr. Burke testified that this was not
    federally required at this time.
    (Tr. at 203.)
    The Board does
    not believe that a proceeding brought under Section 28.5 of the
    Act is the proper place to address this
    issue.
    JCAR
    & SOS
    The Board made several nonsubstantive changes
    in response to
    comments from JCAR and the Administrative Code Unit of the
    Secretary of State’s office.
    These changes are reflected in the
    Board’s final order.
    CONCLUSION
    This proposal is necessary to insure USEPA approval of a
    state implementation plan under the Clean Air Act Amendments of
    1990.
    The Agency’s proposal includes economic information,
    technical review and indications that the proposal is approvable.
    The participants in this proceeding all indicated general
    agreement and support of the proposal.
    The Board finds that the
    record supports proceeding to final notice with the proposal as
    amended
    in this opinion.
    The Board hereby adopts this proposal
    for final notice.
    ORDER
    The Board directs the Clerk to cause the filing of the
    following proposal for second notice with the Joint Committee on
    Administrative Rules:
    TITLE 35:
    ENVIRONMENTAL PROTECTION
    SUBTITLE
    B:
    AIR POLLUTION
    CHAPTER
    I:
    POLLUTION CONTROL BOARD
    SUBCHAPTER a:
    PERMITS AND GENERAL PROVISIONS
    PART 203
    MAJOR STATIONARY SOURCES CONSTRUCTION AND MODIFICATION
    13
    SUBPART A:
    GENERAL PROVISIONS
    Section
    203.101
    203.103
    203. 104
    203.107
    203. 110
    203. 112
    203. 113
    203. 116
    203.117
    203. 119
    203.
    12~W~
    203.
    123-a
    203.123
    203
    .
    124
    203
    .
    125
    203. 126
    203.127
    203.128
    203. 131
    203. 134
    203. 136
    203. 145
    203. 150
    203.155
    Definitions
    Actual Construction
    Actual Emissions
    Allowable Emissions
    Available Growth Margin
    Building, Structure and Facility
    Commence
    Construction
    Dispersion Enhancement Techniques
    Emission Baseline
    Emission Offset
    Emissions Unit
    Federally Enforceable
    Fugitive Emissions
    Installation
    LAERLowest Achievable Emission Rate
    Nonattainment Area
    Potential to Emit
    Reasonable Further Progress
    Secondary Emissions
    Stationary Source
    Volatile Organic CompoundMaterial
    Public Participation
    Severability (Repealed)
    Section
    SUBPART
    B:
    MAJOR STATIONARY EMISSIONS SOURCES IN
    NONATTAINMENT AREAS
    203.201
    203.202
    203.203
    203.204
    203.205
    203.206
    203.207
    203.208
    203.209
    203.210
    203.211
    Prohibition
    Coordination with Permit Requirement and Application
    Pursuant to 35 Ill.
    Adm. Code 201
    Construction Permit Requirement and Application
    Duration of Construction Permit
    (Repealed)
    Effect of Permits
    Major Stationary Source
    Major Modification of a Source
    Net Emission Determination
    Significant Emissions Determination
    Relaxation of a Source-Specific Limitation
    Permit Exemption Based on Fugitive Emissions
    SUBPART
    C:
    REQUIREMENTS FOR MAJOR STATIONARY SOURCES IN
    NONATTAINMENT AREAS
    Section
    203.301
    203.302
    Lowest Achievable Emission Rate
    Maintenance of Reasonable Further Progress and Emission
    Offsets
    14
    203.303
    203.304
    203.305
    203.306
    Baseline and Emission Offsets Determination
    Exemptions from Emissions Offset Requirement
    (Repealed)
    Compliance by Existing Sources
    Analysis of Alternatives
    SUBPART
    F:
    OPERATION OF A MAJOR STATIONARY SOURCE OR MAJOR
    MODIFICATION
    Section
    203.601
    203.602
    203.603
    Lowest Achievable Emission Rate Compliance Requirement
    Emission Offset Maintenance Requirement
    Ambient Monitoring Requirement
    (Repealed)
    SUBPART G:
    GENERAL MAINTENANCE OF EMISSION OFFSETS
    Section
    203.701
    General Maintenance of Emission Offsets
    SUBPART H:
    OFFSETS FOR EMISSION INCREASES FROM ROCKET
    ENGINES AND MOTOR FIRING
    Section
    203.801
    Offsetting by Alternative or Innovative Means
    AUTHORITY:
    Implementing Section 9.1 and
    10 and authorized by
    Section 27 of the Environmental Protection Act
    (Ill. Rev.
    Stat.
    1991,
    ch.
    111 1/2,
    pars.
    1009.1,
    1010 and 1027)
    415
    ILCS 5/9.1,
    10 and 27.
    SOURCE:
    Adopted and codified at
    7
    Ill.
    Reg.
    9344,
    effective July
    22, 1983;
    codified at
    7 Ill.
    Reg.
    13588; amended
    in R85—20 at
    12
    Ill. Reg.
    6118,
    effective March 22, 1988; amended
    in R91—24 at 16
    Ill.
    Reg.
    13551, effective August 24,
    1992;
    amended
    in
    _______
    at
    —
    Ill. Reg.
    ,
    effective
    ___________________
    SUBPART A:
    GENERAL PROVISIONS
    Section 203.101
    Definitions
    Unless
    -~
    otherwise specified within
    this
    Part,
    the definitions of the
    terms used j~#e~this Part shall be the same as those used
    in the
    Pollution Control Board
    (Board)
    Rules and Regulations
    35 Ill.
    Adm. Code 201 and 211.
    (Source:
    Amended at
    17 Ill.
    Reg.
    _______,
    effective
    ________
    Section 203.107
    Allowable Emissions
    a)
    “Allowable emissions” means the emission rate of a
    stationary source calculated using the maximum rated
    capacity of the source
    (unless the source is subject to
    15
    federally enforceable permit conditions or other such
    federally enforceable limits which restrict the
    operating rate,
    or hours of operation,
    or both)
    and the
    most stringent of the following:
    1)
    Any applicable standards adopted by the United
    States Environmental Protection Agency
    (USEPA)
    pursuant to Sections 111 and 112 of the Clean Air
    Act
    (42 U.S.C.
    7401,
    et s.eq.)
    and made applicable
    in Illinois pursuant to Section 9.1 of the
    Environmental Protection Act
    (Act)
    (Ill. Rev.
    Stat.
    19851991,
    ch.
    111 1/2, pars.
    1001 et seq.)
    415
    ILCS 5/1 et seq.1
    2)
    The applicable emission standards or limitations
    contained in this Chapter and approved by ~4~e
    United Statc3 Environmental Protection Agency
    -f-USEPA* pursuant to Section 110(a) (2)
    or 110
    (a) (3)
    of the Clean Air Act, including those
    standards or limitations with a future compliance
    date and any other emission standard or limitation
    enforceable under the Environmental Protection Act
    or by the USEPA under Section 113 of the Clean Air
    Act; or
    3)
    The emissions rate specified as
    e-i~
    a federally
    enforceable permit condition including those
    emissions rates with a future compliance date.
    b)
    The allowable emissions may be based on e~
    ~,
    federally
    enforceable permit condition limiting material or fuel
    throughput.
    c)
    If a source is not subject to an emission standard
    described in subsection
    (a)
    above and is not subject to
    a permit condition described in subsection
    (b)
    above,
    the allowable emissions shall be the source’s potential
    to emit.
    (Source:
    Amended at 17
    Ill.
    Reg.
    ______,
    effective
    _________)
    Section 203.110
    Available Growth Margin
    “Available ~growth Mnjargin” means the portion which remains of
    any emission allowance for new or modified major stationary
    sources expressly identified in the attainment demonstration
    approved by the United StatesU.S.
    Environmental Protection Agency
    (UCEPA~under Section
    172(~c)(~4)
    of the Clean Air Act
    (42 U.S.C.
    7502(~)(~))for a particular pollutant and area in a zone
    (within a nonattainment area) to which economic development
    should be targeted,
    in accordance with Section 173(a) (1) (B)
    of
    the Clean Air Act
    (42 U.S.C.
    7503(a) (1) (B)).
    16
    (Source:
    Amended at 17 Ill.
    Reg.
    ______,
    effective
    _________)
    Section 203.112
    Building,
    Structure and Facility
    a)
    The terms “building”,
    “structure”, and “facility”
    include all of the pollutant-emitting activities which
    belong to the same industrial grouping, are located on
    one or more contiguous or adjacent properties, and are
    under the control of the same person
    (or persons under
    common control).
    Pollutant-emitting activities shall
    be considered as part of the same “Major Group”
    (i.e.,
    which have the same two-digit code) as described in the
    Standard Industrial Classification Manual,
    1972,
    as
    amended by the 1977 Supplement
    (U.S. Government
    Printing Office stock numbers 4101-0066 and
    003—005—00176—0,
    respectively)
    incorporated by
    reference in 35
    Ill.
    Admn.
    Code
    720.111.
    b)
    The terms “building”,
    “structure”, and “facility” shall
    also include:
    1)
    the transfer of materials, including but not
    limited to grain, gasoline,
    petroleum liquids,
    coal,
    fertilizer,
    crushed stone and ore, from
    vessels, motor vehicles or other conveyances,
    irrespective of ownership or industrial grouping,
    to or from a building,
    structure,
    or facility as
    defined in subsection
    (a)
    above,
    and
    2)
    activities at or adjacent to such building,
    structure or facility which are associated with
    such transfer,
    including but not limited to idling
    of propulsion engines, the operation of engines to
    provide heat, refrigeration or lighting, operating
    of auxiliary engines for pumps or cranes, and
    transfer of materials from hold to hold or tank to
    tank during onloading or offloading operations
    except those activities causing emissions
    resulting directly from internal combustion
    engines from transportation purposes or from a non
    road engine or non road vehicle as defined in
    Section 216 of the Clean Air Act
    (42 U.S.C.
    7401
    et seq.).
    (Source:
    Amended at 17
    Ill.
    Reg.
    ______,
    effective
    __________
    Section 203.12~
    Emission Offset
    “Emission offset” means a creditable emission reduction used to
    compensate for the increase in emissions resulting from a new
    major source or a major modification in accordance with Sections
    17
    203.302 and 203.303 of this Part.
    (Source:
    Section 203.121 renumbered from Section 203.122 and
    amended at
    17
    Ill. Reg.
    ______,
    effective
    ___________)
    Section 203.123-2.
    Emissions Unit
    “Emissions ~nit”
    means any part of a stationary source which
    emits or has the potential to emit any ~
    pollutant subject to
    regulation under the Act or this Chapter or by the United States
    Environmental Protection Agency UCEPA under the Clean Air Act
    (42
    U.S.C.
    7401,
    the Act or et seq.).
    (Source:
    Former Section 203.122 renumbered to Section 203.121,
    Section 203.122 renumbered from Section 203.123, and Section
    amended at
    17
    Ill. Reg.
    _____,
    effective
    ______________)
    Section 203.123
    Federally Enforceable
    “Federally enforceable” means enforceable by the United States
    Environmental Protection Agency.
    (Source:
    Former Section 203.123 renumbered to Section 203.122,
    new Section 203.123 added at 17
    Ill.
    Reg.
    _____,
    effective
    ______
    _________________
    )
    Section 203.126
    LAERLowest Achievable Emission Rate
    “LAER” is an abbrcviationacronym for lowest achievable emission
    rate.
    (Source:
    Amended at 17 Ill. Reg.
    ______,
    effective
    ___________
    Section 203.128
    Potential to Emit
    “Potential to ~mit”
    means the maximum capacity of
    a stationary
    source to emit a pollutant under its physical and operational
    design.
    Any physical or operational limitation on the capacity
    of the source to emit a pollutant,
    including air pollution
    control equipment and restrictions on hours of operation or on
    the type or amount of material combusted,
    stored, or processed,
    shall be treated as part of its design only if the limitation or
    the effect
    it would have on emissions is federally enforceable.
    Secondary emissions do not count in determining the potential to
    emit of a stationary source.
    (Source:
    Amended at 17 Ill. Reg.
    ______,
    effective
    ___________
    Section 203.145
    Volatile Organic CoinpoundMaterial
    •.ypj~jpe
    uLu~’n’~
    Lumpound” means “volatile organic material”,
    as
    3.
    ~— —
    3.
    4—
    ~
    __4
    ~
    4-
    ,
    -r
    1
    1
    18
    “Volatile organic material”
    (VOM) means any com~oundof carbon,
    excluding carbon monoxide, carbon dioxide. carbonic acid,
    metallic carbides or carbonates, and ammonium carbonate,
    which
    participates in atmospheric photocheinical reactions.
    ~j
    This includes any such organic compound other than the
    following, which have been determined to have
    negligible photochemical reactivity:
    methane; ethane;
    methvlene chloride
    (dichloromethane),
    1,1,1-trichiorethane
    (methyl chloroform);
    1. 1,1-trichloro-2,2,2—trifluoroethane (CFC-113)
    trichlorofluoromethane
    (CFC-1l);
    dichlorodifluoromethane
    (CFC-12); chlorodifluoromethane
    (CFC-22); trifluoromethane
    (FC-23): 1,2—dichloro
    1,1,2,2-tetrafluoroethane
    (CFC-l14);
    cloropentafluoroethane
    (CFC-115);
    1,1, 1—trifluoro
    2, 2-dichloroethane
    (HCFC-123);
    1,1, 12-tetrafluoroethane
    (HFC-l34a); 1,1-dichloro 1-fluoroethane
    (HCFC—l4lb);
    1-chloro l,l-difluoroethane (HCFC-l42b);
    2—chloro—l, 1,1,2—tetrafluoroethane (HCFC-124);
    pentafluoroethane
    (HFC-l25);
    1,1,2,2—tetrafluoroethane
    (1-IFC—134); 1,1,1—trifluoroethane (HFC—143a);
    1, 1-difluroethane
    (HFC-152a); and perfluorocarbon
    compounds which fall into these classes:
    fl
    Cyclic,
    branched,
    or linear, completely
    fluorinated alkanes
    21.
    Cyclic,
    branched,
    or linear, completely
    fluorinated ethers with no unsaturations
    ~j
    Cyclic,
    branched, or linear, completely
    fluorinated tertiary amines with no unsaturations
    and
    j)
    Sulfur containing perfluorocarbons with no
    uiisaturations and with sulfur bonds onlY to carbon
    and fluorine.
    ~j
    For Purposes of determining VOM emissions and
    compliance with emissions limits, VOM will be measured
    by the test methods
    in the approved implementation elan
    or 40 CFR Part 60, Appendix A, incorporated by
    reference at Sections 215.105,
    218.112, and 219.112,
    as
    applicable or by source—specific test methods which
    have been established pursuant to a permit issued
    pursuant to a program approved or promulgated under
    Title V of the Clean Air Act or under 40 CFR Part 51,
    Subpart
    I or Appendix 5,
    incorporated by reference at
    Sections 218.112 and 219.112 or under 40 CFR Part
    52.21, incorporated by reference at Sections 218.112
    and 219.112.
    as applicable.
    Where such a method also
    19
    measures compounds with negligible photochemical
    reactivity, these negligibly-reactive compounds may be
    excluded as VOM if the amount of such compounds is
    accurately quantified,
    and such exclusions are a~~roved
    by
    the Agency.
    gj
    As
    a precondition to excluding these
    negligibly-reactive compounds
    as VOM or at any time
    thereafter, the Agency may require an owner or oPerator
    to provide monitoring or testing methods and results
    demonstrating, to the satisfaction of the Agency, the
    amount of negligibly—reactive compounds in the source’s
    emissions.
    ~j
    The United States Environmental Protection A~encvshall
    not be bound bY any State determination as to
    appropriate methods for testing or monitoring
    negligibly-reactive compounds if such determination is
    not reflected in any of the provisions of paragraph
    f2).
    (Source:
    Amended at
    17
    Ill.
    Reg.
    ________,
    effective
    _________)
    Section 203.150
    Public Participation
    Prior to the initial issuance or revision of a permit pursuant to
    Subpart
    B, the Agency shall provide~at a minimum, notice of the
    proposed issuance of a permit~ei~4a comment period,
    and
    opportunity for public hearing pursuant to the Agency public
    participation procedures found at set forth at
    35 Ill.
    Adm. Code
    4-66 252.
    (Source:
    Amended at
    17
    Ill.
    Reg.
    _____
    ,
    effective
    ___________)
    SUBPART B:
    MAJOR STATIONARY EMICCIONS SOURCES
    IN
    NONATTAINMENT AREAS
    Section 203.201
    Prohibition
    In any nonattainment area,
    no person shall cause or allow the
    construction of a new major stationary source or major
    modification that is major for the pollutant for which the area
    is designated a nonattainment area,
    except as in compliance with
    this Part for that pollutant.
    In areas designated nonattainment
    for ozone, this prohibition shall apply to new maior stationary
    sources or major modifications of sources that emit volatile
    organic materials or nitrogen oxides. Revisions to this Part
    which were adopted to implement the Clean Air Act Amendments of
    1990 shall not apply to any new malor stationary source or malor
    modification for which a permit application was submitted by June
    20
    30,
    1992,
    for PM-b, May 15,
    1992,
    for
    SO2,
    or by November 15,
    1992,
    for nitrogen oxides and volatile organic material emissions
    for sources located in all ozone nonattainment areas.
    (Source:
    Amended at 17
    Ill. Reg.
    _____,
    effective
    ____________)
    Section 203.203
    Construction Permit Requirement and
    Application
    a)
    A construction permit is required prior to actual
    construction of a major new source or major
    modification.
    b)
    Applications for construction permits required under
    this Section shall contain sufficient information to
    demonstrate compliance with 35 Ill.
    Adm.
    Code 201 and
    the requirements of this Subchapter Part including,
    but
    not limited to,
    Subpart C.
    c)
    The permit shall include conditions specifying the
    manner in which the requirements of Subparts B and C of
    this Part are satisfied.
    d)
    No permittee shall violate any condition contained in a
    construction permit issued for a new major stationary
    source or major modification which is subject to this
    Part.
    (Source:
    Amended at 17
    Ill. Reg.
    _____,
    effective
    ____________
    Section 203.206
    Major Stationary Source
    ~j
    For purposes of this Part, the term “major
    stationary source” shall exclusively mean
    “building, structure and facility,” as those
    terms are defined in Section 203.113 of this
    Part.
    a~) The following constitute a major stationary source:
    1)
    Any stationary sOurce of air pollutants which
    emits, or has the potential to emit,
    100 tons per
    year or more of
    ~nv
    nollutant for which pollutant
    the area is a nonaiL~inmentarca.For an area
    designated as nonattainment for ozone,
    a malor
    stationary source is a stationary source which
    emits or has the potential to emit volatile
    organic material
    in an amount equal to or greater
    than the following:
    ~j
    100 tons per year in an area classified as
    21
    marginal or moderate nonattainment for ozone
    ~j
    50 tons per year in an area classified as
    serious nonattainment for ozone
    ~j
    25 tons per year in an area classified as
    severe nonattainment for ozone; and
    Qj
    10 tons per year in an area classified as
    extreme nonattainment for ozone.
    2)
    Any physical change that would occur at a
    L3t.uLiOnury
    ~ouruc
    not qualifying under paragraph
    1
    ~ri
    ri
    m-iig-~r
    t1-n-~rkr1J
    iirc~r~
    ~f
    thc~
    change
    wnnld
    constitute
    a major 3tationary source by itself.
    For an area designated as nonattainment for
    nitrogen dioxide,
    a major stationary source is
    a
    stationary source which emits or has the øotential
    to emit 100 tons per year or more of nitrogen
    dioxide.
    ~j
    For an area designated as nonattainment for ozone.
    a major stationary source is a stationary source
    which emits or has the potential to emit nitrogen
    oxides in an amount eaual to or greater than the
    following, unless United States Environmental
    Protection Agency
    (USEPA)
    has made a finding under
    Sections 110 and 182(f)
    of the Clean Air Act that
    controlling of emissions of nitrogen oxides from
    such sources shall not be required:
    ~j
    100 tons per year in an area classified as
    marginal or moderate nonattainment
    for ozone,
    ~j
    50 tons per year in an area classified as
    serious nonattainment for ozone,
    Qj.
    25 tons per year in an area classified as
    severe nonattainment for ozone,
    and
    pj
    10 tons per year in an area classified as
    extreme nonattainment for ozone.
    j)
    For an area designated nonattainment for PM—b,
    a
    major stationary source
    is a stationary source
    which emits or has the potential to emit:
    ~.j. 100 tons per year or more of PM—b
    in an area
    classified as moderate nonattainment area,
    or
    ~J.
    70 tons per year or more of PM—b
    in an area
    22
    classified
    as serious nonattainment.
    ~j
    For an area designated nonattainment
    for carbon
    monoxide,
    a malor stationary source
    is a
    stationary source which emits or has the potential
    to emit:
    ~j
    100 tons Per year or more of carbon monoxide
    in
    a nonattainment area, excePt as provided
    in
    (B) below,
    ~j
    50 tons per year or more in an area
    classified as “serious” nonattainment for
    carbon monoxide where stationary sources
    significantly contribute to ambient carbon
    monoxide levels, as determined under rules
    issued by USEPA,
    pursuant to the Clean Air
    Act.
    ~j
    For an area designated nonattainment for a
    pollutant other than ozone, nitrogen dioxide,
    PM—b
    or carbon monoxide,
    a malor stationary
    source
    is a stationary source which emits or has
    the potential to emit bOO tons ~er year or more of
    the pollutant.
    ~c)
    A major stationary source that is a major for volatile
    organic compounds shall be considered major for ozone.
    AnY physical change that occurs at a stationary source
    which does not qualify under subsection
    (a)
    of this
    Section as a maior stationary source will be considered
    a malor stationary source,
    if the change would
    constitute
    a malor stationary source by itself.
    e~) The reconstruction of
    a major stationary source will be
    treated as the construction of
    a new major stationary
    source if the fixed capital cost of new components
    exceeds approximately half of the fixed capital cost of
    an entirely new stationary source.
    Determining whether
    reconstruction will occur
    is based on the following:
    1)
    Fixed capital cost shall mean the capital needed
    to provide all the depreciable components;
    2)
    The fixed capital cost for the replacements in
    comparison to the fixed capital cost that would be
    required to construct a comparable entirely new
    source;
    3)
    The estimated life of the source after the
    replacements compared to the life of a comparable
    entirely new source; and
    23
    4)
    The extent to which the components being replaced
    cause or contribute to the emissions from the
    source.
    8~)
    For purposes of this Part,
    in areas that are classified
    as serious,
    severe,
    or extreme nonattainment, the
    fugitive emissions of a stationary source shall be
    included in determining whether
    it is a malor
    stationary source.
    In areas that are not classified as
    serious, severe or extreme nonattainment, the fugitive
    emissions of a stationary source shall not be included
    in determining whether it is a major stationary source,
    unless the source belongs to one of the following
    categories of stationary sources:
    1)
    Coal cleaning plants
    (with thermal dryers);
    2)
    Kraft pulp mills;
    3)
    Portland cement plants;
    4)
    Primary zinc smelters;
    5)
    Iron and steel mills;
    6)
    Primary aluminum ore reduction plants;
    7)
    Primary copper smelters;
    8)
    Municipal incinerators capable of charging more
    than 250 tons of refuse per day;
    9)
    Hydrofluoric,
    sulfuric,
    or nitric acid plants;
    10)
    Petroleum refineries;
    11)
    Lime plants;
    12)
    Phosphate rock processing plants;
    13)
    Coke oven batteries;
    14)
    Sulfur recovery plants;
    15)
    Carbon black plants
    (furnace process);
    16)
    Primary lead smelters;
    17)
    Fuel conversion plants;
    18)
    Sintering plants;
    24
    19)
    Secondary metal production plants;
    20)
    Chemical process plants;
    21)
    Fossil-fuel boilers
    (or combination thereof)
    totaling more than 250 million Btu per hour heat
    input;
    22)
    Petroleum storage and transfer units with a total
    storage capacity exceeding 300,000 barrels;
    23)
    Taconite ore processing plants;
    24)
    Glass fiber processing plants;
    25)
    Charcoal production plants;
    26)
    Fossil fuel-fired steam electric plants of more
    than 250 million Btu per hour heat input;
    27)
    Any other stationary source categor
    which was
    regulated as of August
    7,
    1980 by UCEPA by a
    standard promulgated under Section 111 or 112
    of
    the Clean Air Act
    (42 U.S.C.
    7411,
    7412), but only
    with respect to those air pollutants that have
    been regulated for that category
    ~j
    Any other stationary source cateaorv designated by
    the USEPA by rule.
    (Source:
    Amended at
    17 Ill. Reg.
    _____,
    effective
    ____________)
    Section 203.207
    Major Modification of a Source
    a)
    Except as provided in &~ubsection (c)
    below,
    a physical
    change,
    or change in the method of operation of
    a major
    stationary source that would result in a significant
    net emissions increase of any pollutant £or which the
    area is designated a nonattainment area,
    shall
    constitute a major modification of a source.
    b)
    Any net emissions increase that is significant for
    volatile organic compounds material or nitrogen oxides
    shall be considered significant for ozone.
    c)
    A physical change or change in the method of operation
    shall not include:
    1)
    Routine maintenance,
    repair,
    and replacement which
    does not constitute reconstruction pursuant to
    Section 203.206(c).
    25
    2)
    Use of an alternative fuel or raw material by
    reason of any order under Sections 2(a)
    and
    (b)
    of
    the Energy Supply and Environmental Coordination
    Act of 1974
    (15 U.S.C.
    791),
    the Power Plant and
    Industrial Fuel Use Act of 1978
    (42 U.S.C.
    8301)
    (or any superseding legislation)
    or by reason of a
    natural gas curtailment plan pursuant to the
    Federal Power Act
    (16 U.S.C.
    791,
    et seq.).
    3)
    Use of an alternative fuel by reason of an order
    or rule under Section 125 of the Clean Air Act
    (42
    U.S.C.
    7425).
    4)
    Use of an alternative fuel at a steam generating
    unit to the extent that the fuel
    is generated from
    municipal solid waste.
    5)
    Use of an alternative fuel or
    raw material by a
    stationary source which:
    A)
    Was capable of accommodating such alternative
    fuel or raw material before December 21,
    1976,
    and which has continuously remained
    capable of accommodating such fuels or
    materials unless such change would be
    prohibited under any enforceable permit
    condition established after December 21,
    1976, pursuant to 40 CFR
    52.21,
    this Part,
    or
    35 Ill. Adm. Code 201.142 or 201.143,
    or
    B)
    Is approved for use under any permit issued
    pursuant to this Part or
    35 Ill. Adm. Code
    201.142 or 201.143.
    6)
    An increase in the hours of operation or in the
    production rate,
    unless such change is prohibited
    under any enforceable permit condition which was
    established after December 21,
    1976 pursuant to 40
    CFR 52.21,
    this Part,
    or
    35 Ill. Adm.
    Code 201.142
    or 201.143.
    7)
    Any change in ownership at a stationary source.
    ~j
    In areas classified as serious or severe nonattainment
    for ozone, beginning November 15,
    1992,
    or such later
    date that an area is classified by the United States
    Environmental Protection Agency
    (USEPA)
    as
    a serious or
    severe nonattainment area for ozone,
    any physical
    chan~eor chance in the method of operation of a malor
    stationary source which results in an increase in
    emissions of 25 tons per year or more of volatile
    organic material or nitrogen oxides from any discrete
    26
    operation,
    unit,
    or other pollutant emitting activity
    at the source shall be considered a major modification
    unless:
    fl
    The emissions and potential to emit emissions of
    such pollutant,
    i.e., volatile organic material or
    nitrogen oxides,
    are less than 100 tons per year,
    and
    21
    The owner or operator of the source elects to
    offset the increase by a greater reduction in
    emissions of such pollutants
    i.e., volatile
    organic material or nitrogen oxides,
    from other
    operations,
    units,
    or activities within the source
    at an internal offset ratio of at least
    1.3 to
    1.
    ~j
    In areas classified as extreme nonattainment for ozone,
    beginning on the date that an area
    is classified by
    USEPA as an extreme nonattainment area for ozone,
    any
    physical change in or change in the method of operation
    of a malor stationary source which results
    in any
    increase
    in emissions of volatile organic material or
    nitrogen oxides from a discrete operation,
    unit,
    or
    other pollutant emitting activity shall be considered a
    malor modification.
    (Source:
    Amended at
    17
    Ill.
    Reg.
    ______,
    effective
    ___________)
    Section 203.208
    Net Emission Determination
    A net emissions increase is the amount by which the sum of any
    increase in actual emissions from a particular physical change or
    change in method of operation at a source, and any other
    increases and decreases in actual emissions at the source that
    are contemporaneous with the particular change and are otherwise
    creditable,
    exceeds zero.
    The following steps determine whether
    the increase or decrease in emissions is available.
    a)
    Except for increases or decreases in volatile organic
    material and nitrogen oxides emissions in serious and
    severe ozone nonattainment areas which are addressed in
    Section 203.209(b), an increase or decrease in actual
    emissions is contemporaneous only if it occurs between
    the date that an increase from a particular change
    occurs and the date five years before a timely and
    complete application
    is submitted for the particular
    change.
    It must also occur after either April
    24,
    1979, or the date the area is designated by the
    U.C.United States Environmental Protection Agency
    -fUCEPA)
    as a nonattainment area for the pollutant,
    whichever is more recent~.
    27
    b)
    An increase or decrease in actual emissions is
    creditable:
    1)
    Only if there is not
    in effect for the source at
    the time the particular change occurs,
    a permit
    which relied on the same increase or decrease in
    actual emissions; and
    2)
    Only to the extent the new and old levels differ.
    C)
    A decrease in actual emissions
    is creditable to the
    extent that:
    1)
    It
    is federally enforceable at and after the time
    that actual construction on the particular change
    begins;
    2)
    It has approximately the same qualitative
    significance for public health and welfare as that
    attributed to the increase from the particular
    change;
    3)
    The old level of actual emissions or the old level
    of allowable emissions, whichever is
    lower,
    exceeds the new level of actual emissions; and
    4)
    It
    is demonstrated by the Agency not to have been
    previously relied on in issuing any permit
    pursuant to this part or
    35 Ill. Adm.
    Code 201.142
    or 201.143 or for demonstrating attainment or
    reasonable further progress in the nonattainment
    area which the particular change will impact.
    d)
    An increase that results from a physical change at a
    source occurs when the emissions unit on which
    construction occurred becomes operational and begins to
    emit
    a particular pollutant.
    Any replacement unit that
    requires shakedown becomes operational only after a
    shakedown period not to exceed 180 days.
    (Source:
    Amended at
    17 111.
    Reg.
    _____,
    effective
    ____________
    Section 203.209
    Significant Emissions Determination
    ,~j
    A net emission increase
    in the pollutant emitted is
    significant if the rate of emission is equal to or in
    excess of the following:
    lal
    Carbon monoxide:
    100 tons per year
    (tpy)
    2~1
    Nitrogen oxides:
    40 tpy for a nonattainment area
    for nitrogen dioxide and 40 tpy for an ozone
    28
    nonattainment area, except as provided in
    subsection
    (b)
    of this Section
    ~ej
    Sulfur dioxide:
    40 tpy
    48j
    Particulate matter measured as PM-bO:
    25 tpy
    5e)
    Ozone:
    40 tpy of volatile organic compounds
    material,
    except as provided jn subsection
    (b)
    of
    this Section
    ~)
    Lead:
    0.6 tpy
    ~
    For areas classified as serious or severe nonattainment
    for ozone, an increase in emissions of volatile organic
    material or nitrogen oxides shall be considered
    significant if the net emissions increase of such air
    p~llutantfrom
    a stationary source located within such
    area exceeds
    25 tons when aggregated with all other net
    increases in emissions from the source over any period
    of
    5 consecutive calendar years which includes the
    calendar year in which such increase occurred.
    This
    provision shall become effective beginning November
    15,
    1992,
    or such later date that an area is classified as
    a serious or severe nonattainment area for ozone.
    (Source:
    Amended at
    17
    Ill.
    Reg.
    ______,
    effective
    ___________)
    SUBPART
    C:
    REQUIREMENTS FOR
    MAJOR
    STATIONARY
    SOURCES
    IN
    NONATTAINMENT AREAS
    Section 203.301
    Lowest Achievable Emission Rate
    a)
    For any source,
    lowest achievable emission rate
    (LAER)
    will be the more stringent rate of emissions based on
    the following:
    1)
    The most stringent emission limitation which
    is
    contained in the implementation plan of any state
    for such class or category of stationary source,
    unless it
    is demonstrated that such limitation is
    not achievable; or
    2)
    The most stringent emission limitation which
    is
    achieved in practice by such a class or category
    of stationary source.
    This limitation, when
    applied to a modification, means the lowest
    achievable emissions rate for the new or modified
    emissions units within the stationary source.
    In
    no event shall the application of this term permit
    a proposed new or modified stationary source to
    emit any pollutant in excess of the amount
    29
    allowable under an applicable new source
    performance standard adopted by United States
    Environmental Protection Agency
    (USEPAI pursuant
    to Section 111 of the Clean Air Act and made
    applicable in Illinois pursuant to Section 9.1 of
    the Act.
    b)
    The owner or operator of a new major stationary source
    shall demonstrate that the control equipment and
    process measures applied to the source will produce
    LLAER.
    C)
    The owner or operator of a major modification shall
    demonstrate that the control equipment and process
    measures applied to the major modification will produce
    LAER.
    This requirement applies to each emissions unit
    at which a net increase in emissions of the pollutant
    has occurred or would occur as a result of a physical
    change or change in the method of operation.
    d)
    The owner or operator shall provide
    a detailed showing
    that the proposed emission limitations constitute LAER.
    Such demonstration shall include:
    1)
    A description of the manner in which the proposed
    emission limitation was selected, including a
    detailed listing of information resources,
    2)
    Alternative emission limitations, and
    3)
    Such other reasonable information as the Agency
    may request as necessary to determine whether the
    proposed emission limitation is LAER.
    ~j
    In areas classified as serious or severe nonattairiment
    for ozone,
    for modifications which are major pursuant
    to the applicability provisions of Section 203.207(d)
    for volatile organic material and nitrogen oxide
    emissions, LAER shall apply except as provided as
    follows:
    fl
    In the case of a stationary source which does not
    emit or have the potential to emit 100 tons per
    Year or more of volatile organic material or
    nitrogen oxides,
    a requirement for Best Available
    Control Technobo~v (BACT)
    as defined in Section
    169 of the Clean Air Act
    (42 U.S.C.
    7401 et seq.)
    substitutes for LAER.
    BACT shall
    be determined in
    accordance with policies and procedures published
    by the USEPA.
    .21
    In the case of a stationary source which emits or
    30
    has the ~otentia1 to emit 100 tons ~er year or
    more of volatile organic material or nitrogen
    oxides, the requirements for LAER shall not apply
    if the owner or operator of the source elects to
    offset the increase by a greater reduction in
    emissions of such pollutant from other operations,
    units or activities within the source at an
    internal offset ratio of at least
    1.3 to
    1.
    (Source:
    Amended at
    17 Ill.
    Reg.
    ______,
    effective
    ___________)
    Section 203.302
    Maintenance of Reasonable Further Progress
    and Emission Offsets
    a)
    The owner or operator of a new major source or major
    modification shall provide emission offsets equal to or
    greater than the allowable emissions from the source or
    the net increase
    in emissions from the modification
    sufficient to allow the Agency to determine that the
    source or modification will not interfere with
    reasonable further progress as set forth in Section 173
    of the Clean Air Act
    (42 U.S.C.
    7401 et seq.).
    fl
    For new major sources or major modifications
    in
    ozone nonattainment areas the ratio
    of total
    emission reductions provided by emission offsets
    for volatile organic material or nitrogen oxides
    to total increased emissions of such contaminants
    shall be at least as follows:
    ~j
    1.1 to
    1 in areas classified as marginal
    ~j
    1.15 to
    1
    in areas classified as moderate
    ~çj
    1.2 to
    1 in areas classified as serious
    Qj
    1.3 to
    1 in areas classified as severe; and
    ~
    1.5 to
    1
    in areas classified as extreme.
    21
    The offset requirement provided in subsection
    (1)
    above shall not be applicable in extreme areas to
    a modification of an existing source:
    ~j.
    if such modification consists of installation
    of equipment required to comely with the
    implementation plan or the Clean Air Act; or
    ~j
    if the owner or operator of the source elects
    to offset the increase by a greater reduction
    in emissions of such pollutant from other
    31
    discrete operations,
    units,
    or activities
    within the source at an internal offset ratio
    of at least 1.3 to
    1.
    b)
    The Agency shall allow the use of all or some portion
    of the available growth margin to satisfy subsection
    (a)
    above if the owner or operator can present evidence
    that the possible sources of emission offsets were
    investigated~a~ none were available at that time ~
    the new or modified major stationary source is located
    in
    a zone
    (within the nonattainment area)
    identified by
    United States Environmental Protection Agency,
    in
    consultation with the Secretary of Housing and Urban
    Development,
    as a zone to which economic devebo~ment
    should be targeted.
    (Source:
    Amended at 17
    Ill.
    Reg.
    ______,
    effective
    ___________
    Section 203.303
    Baseline and Emission Offsets Determination
    a)
    An emission offset must be obtained from a source in
    operation prior to the permit application for the new
    or modified source.
    Emission offsets must be effective
    prior to start—up of the new or modified source.
    b)
    The emission offsets provided:
    1)
    Must be of the same pollutant and further be of a
    type with approximately the same qualitative
    significance for public health and welfare as that
    attributed to the increase from a particular
    change;
    2)
    Must,
    in the case of a shutdown,
    have occurred
    since April
    24,
    1979 or the date the area
    is
    dccignatcd by the UCEPA as a nonattainmcnt area
    ~ii~
    poJ.kuLanL, wnicncvcr
    .i~
    inorc
    rcucnt,
    and
    the shutdown source is being replaced by a similar
    new source; and must,
    in the case of a fuel
    combustion source,
    be based on the type of fuel
    being burned at the time the permit application is
    filed,
    and,
    if offset is to be produced by a
    future switch to a cleaner fuel,
    be accompanied by
    evidence that long—term supplies of the clean fuel
    are available and a commitment to a specified
    alternative control measure which would achieve
    the same degree of emission reduction if return of
    the dirtier fuel is proposed;
    3)
    Must,
    in the case of
    a shutdown of a source or
    r~t~rin-~nrn~—
    r~iii-$—r~
    ii
    mrnt
    f
    nrndui~t
    i
    nn
    n~—
    ina
    32
    application is
    have been made
    filed
    known
    for
    to
    a
    the
    now or modified
    affected work
    source,
    force;
    43)
    Must,
    in the case of a past shutdown of a source
    or permanent curtailment of production or
    operating hours, have occurred since April
    24,
    1979, or the date the area is designated a
    nonattainment area for the pollutant, whichever
    more recent, and, until the United States
    Environmental Protection Agency has approved the
    attainment demonstration and state trading or
    marketing rules for the relevant pollutant, the
    proposed new or modified source must be a
    replacement for the shutdown or curtailment;
    5~) Must be federally enforceable by permit;
    is
    65)
    Must not have been previously relied on,
    as
    demonstrated by the Agency,
    in issuing any permit
    pursuant to 35
    Ill.
    Admn.
    Code 201.142 or 201.143
    or this Part, or for demonstrating attainment or
    reasonable further progress.
    c)
    The baselines for determining
    follows:
    4
    -~
    Except as provided in subsection
    (2), tlhe
    baseline for determining the extent to which
    emission reductions are creditable as offsets
    shall be the actual emissions of the source from
    which the offset
    is to be obtained, to the extent
    they are within any applicable emissions
    limitations of this Chapter or the Act or any
    applicable standards adopted by USEPA pursuant to
    Section 111 and 112 of the Clean Air Act, and made
    applicable in Illinois pursuant to Section 9.1 of
    the Environmental Protection Act
    (Ill.
    Rev.
    Stat.
    1991 ch.
    111 1/2, par.
    1009.1)
    1415 ILCS 5/9.1).
    If the demonstration of reasonable further
    progress and attainment of ambient air quality
    ‘~tandards
    ‘~——~-~‘—-‘
    .
    ~1~1~nt
    tr~
    ~r-r~t
    I
    by uSEP:.
    110(a) (2)
    or 110(a) (3)
    of
    based on the applicable emission limitations of
    this Chapter or the Act or any applicable
    and
    112
    of the Clean Air
    Act and made
    applicable
    in Illinois pursuant to Section 9.1 of the
    Environmental Protection Act for sources within an
    arca,
    and the sourcc from which the offset is to
    be obtained is subject to such limitations, the
    baseline for offsets shall be the looser of such
    ...
    ~.
    ~Iv
    Arf
    4
    2+
    33
    limitation or the p
    izil to emit of the
    d)
    The location of sources providing the emission
    offscts:reductions to fulfill the offset requirements
    of this Section:
    t.
    #snflt
    S__
    I
    \“
    ~j
    An owner or operator may obtain the necessary
    emission reductions from another
    nonattainment area where such other area has
    an equal or higher nonattainment
    classification than the area in which the
    source
    is
    located, and
    ~j
    The emission reductions from such other area
    contribute to a violation of the national
    ambient air quality standard in the
    nonattainment area in which the new or
    Must,
    tor nicrr~rfcn
    uxiue~, i~cin
    ~iiC
    vicinity of the proposed new or moairi~
    sourcc.Must,
    for particulate matter,
    sulfur
    dioxide and carbon monoxide, be such that,
    relative to the site of the proposed new or
    modified source, the location of the offset,
    1)
    Must,
    for particulate matter, sulfur dioxide and
    carbon monoxide,
    be such that, relative to the
    site of the proposed new or modified source, the
    location of the offset, together with its
    effective stack height, ensures
    a positive net air
    quality benefit.
    This shall be demonstrated by
    atmospheric simulation modeling, unless the
    irr~r~-i
    r~rn’uI
    ~-i
    I
    r~rr ths-~
    nff~r~t
    vrr~ t~r~
    thr
    ~nmr~
    ~••L
    —
    .J~
    ~
    ~4_
    .A
    St
    ~SS’~
    L1ttSIfl~.~.t .l~~t
    ~-
    —‘~-te vicinity ef the ~ev
    e~modified
    c.nd the polluten-te -~i~
    from substantially the same effective stack
    height.
    In determining effective stack height,
    credit shall not be given for dispersion
    enhancement techniques.
    The owner or operator of
    a proposed new or modified source shall perform
    the analysis to demonstrate the acceptability of
    the location of an offset,
    if the Agency declines
    to make such analysis.
    Effective stack height
    means actual stack height plus plume rise.
    Where
    —~
    stack
    exceeds good engineering
    ursuant to 40 CFR 51.100
    J.noi.Uacu),
    cnc
    creditable stack height shall bc
    used.
    Must be achieved in the same nonattainment
    area as the increase being offset, except as
    provided as follows:
    21
    modified source is
    located.
    —
    —
    —
    I
    —
    —
    i_
    —
    I
    —
    —
    34
    together with its effective stack height, ensures
    a mositive net air quality benefit.
    This shall be
    demonstrated by atmospheric simulation modeling,
    unless the sources providing the offset are on the
    same premises or in the
    irrurnediate vicinity of the
    new or modified source and the pollutants disperse
    from substantially the same effective stack
    height.
    In determining effective stack height,
    credit_shall not be given for dispersion
    enhancement techniques.
    The owner
    or oPerator of
    a proposed new or modified source shall Perform
    the analysis to demonstrate the acceptability of
    the location of an offset,
    if the Agency declines
    to make such analysis.
    Effective stack height
    means actual stack height Plus plume
    rise.
    Where
    actual stack height exceeds good engineering
    practices,
    as determined Pursuant to 40 CFR 51.100
    (1987)
    (no future amendments or editions are
    included), the creditable stack height shall be
    used.
    s-)-
    Must,
    for volatile organic compounds,
    be in the
    broad vicinity of the proposed new or modified
    source; that is, offsets must be obtained from
    within the Air Quality Control Region of the new
    or modified source,
    or from other areas which may
    ~e contribu-t-Inrr to the ozone r~roblcmat the site
    of the new or modified source.
    e)
    Replacement of one volatile organic compoundmaterial
    with another of lesser reactivity does not constitute
    an emission reduction.
    Z1
    Emission reductions otherwise required by the Clean Air
    Act
    (42 U.S.C.
    7401 et seq.)
    shall not be creditable
    for purposes of any such offset requirement.
    Incidental emission reductions which are not otherwise
    required by the Clean Air Act shall be creditable as
    emission reductions for such purposes if such emissions
    reductions meet the requirements of this Subpart.
    (Source:
    Amended at
    17
    Ill.
    Reg.
    ______,
    effective
    __________
    Section 203.306
    Analysis of Alternatives
    For emission of volatile organic compounds or ~~on
    monox~~,
    ~The owner or operator shall demonstrate that benefits of the new
    major source or major modification significantly outweigh the
    environmental and social costs imposed as a result of its
    location, construction,
    or modification, based upon an analysis
    35
    of alternative sites,
    sizes, production processes and
    environmental control techniques for such proposed source.
    (Source:
    Amended at 17 Ill.
    Reg.
    ______,
    effective
    ________
    SUBPART H:
    OFFSETS FOR EMISSION INCREASES FROM ROCKET
    ENGINES AND MOTOR FIRING
    Section 203.801
    Offsetting by Alternative or Innovative Means
    A source may offset, by alternative or innovative means. emission
    increases from rocket engine and motor firing, and cleaning
    related to such firing,
    at an existing or modified major source
    that tests rocket engines or motors under the following
    conditions:
    ~j
    Any modification proposed
    is solely for the purpose of
    ~panding
    the testing of rocket engines or motors at an
    existing source that is permitted to test such engines
    on November 15, 1990
    ~j
    The source demonstrates to the satisfaction of the
    Agency that it has used all reasonable means to obtain
    and utilize offsets, as determined on an annual basis,
    for the emissions increases beyond allowable levels,
    that all available offsets are being used.
    and that
    sufficient offsets are not available to the source
    ~
    The source has obtained a written finding from the
    DePartment of Defense, Department of Transportation,
    National Aeronautics and Space Administration or other
    appropriate Federal agency, that the testing of rocket
    motors or engines at the facility is required for a
    program essential to the national security; and
    ~j
    The source will comply with an alternative measure,
    imposed bY the Agency or Board, designed to offset any
    emission increases beyond permitted levels not directly
    offset bY the source.
    (Source:
    Added at
    17 Ill.
    Reg.
    ______,
    effective
    36
    IT IS SO ORDERED.
    Board member Joseph Yi abstains.
    I, Dorothy H. Gunn,
    Clerk of the Illinois Pollution Control
    Board, hereby cer~i.~y
    that the abg~veopinion and order was
    adopted
    n the
    /(öW~ day of
    cA-C
    ,
    1995,
    by a vote
    of
    ~
    Dorothy/~*.Gunn,
    Clerk
    IllinoiW Pollution Control Board

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