ILLINOIS POLLUTION CONTROL BOARD

March 11,

1993

IN THE MATTER OF:

)

AMENDMENTS TO THE NEW

)

 R92-21

SOURCE REVIEW RULES

)

 (Rulemaking)

35 ILL. ADM. CODE 203

)

Proposed Rule. Second Notice.

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.

Preliminary Matters

Before proceeding to the substance of this matter, the Board

will first address outstanding motions in the proceeding.

The

first is a motion to incorporate information from previous

proceedings into this docket filed on February 23,

 1993,

 by the

Illinois Steel Group.

 The Board did not receive responses to

this motion.

 The Board denies the motion to incorporate the

material.

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.

 The Board denies the

motion to file instanter.

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

01 ~O-0

139

2

motion.

 The Board will discuss this motion in more detail below

as the interpretation of Section 203.209(b)

 was a substantive

issue in the proceeding.

The Board also notes that the Agency at hearing and in its

final comment renewed its objection to answering questions at the

second hearing.

 (Tr.

 at 133; PC 10 at 12_13.)1

 The Board notes

the objection.

DISCUSSION

The Agency presented testimony in support of the proposal at

the January

 6 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;

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

‘The

 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 be cited as “PC

at

01 ~4O-O

I ~O

3

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.

 1 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.

Interpretation of Section 203.209(b).

The Board notes that the interpretation of Section

203.209(b) was an issue discussed at the January

6,

 1993 hearing.

The Agency had indicated that it would interpret the language in

Section 203.209(b)

 as allowing the Agency to look prospectively

as well as retroactively at emissions from a source.

Mr.

Romaine, testifying for the Agency stated:

 “It

 is our intent

that these rules are written so that one could look back prior to

 the time an area is designated nonattainment,

 a severe or serious

ozone nonattainment area.”

 (Tr.

 1 at 43.)

The testimony of the Chicago Lung Association and the Sierra

Club stated the “Agency should be able to use a period of five

consecutive years for determining significant emissions increases

which goes back prior to designation of an area as nonattainment

or reclassification of a nonattainment.”

 (Exh.

 7 at 1.)

The January 29,

 1993,

 joint motion asked that the Board

adopt an interpretation of Section 203.209(b) that was

significantly different than the interpretation first espoused by

the Agency.

 Specifically, the motion provides that “for purposes

01 40QIt~I

4

of determining whether a net emissions increase of a particular

pollutant is significant, the calculation commences with the date

of designation of an area as nonattainment for ozone”.

 (1/29/93

at

 1.)2

 The motion also requests that the Board’s opinion

reflect that it is the Board’s intent that Section 203.209(b)

be

interpreted consistently with federal guidelines and if USEPA

should issue guidelines or promulgate a rule which is contrary to

the interpretation proposed the federal interpretation

immediately takes precedence over the Board’s opinion.

 (1/29/93

at 1.)

At the February 5,

 1993, hearing, Mr. Sid Marder of IERG

testified in support of the motion.

 (Tr.

 at 138—155.)

Mr.

Marder pointed out that USEPA has not issued any guidance on the

interpretation of Section 203.209(b); therefore “the review

period pursuant to Section 203.209(b)

 should extend only to the

date of such designation for equity reasons.”

 (Exh.

 3 at 2.)

Mr. Marder also sets forth the specific dates for the review to

commence under Section 203.209(b).

 Those dates are:

a.

 For sources located in the newly

designated nonattainment areas in the

Chicago area,

 for example, Will and

McHenry Counties, and the designated

townships in Kendall and Grundy

Counties, the calculation for VON

emissions commences no earlier than

January

6,

 1992.

b.

 For sources located in all ozone

nonattainment areas of the state,

for

example,

 Chicago and the Metro—East area,

the

calculation for NO~emissions commences no

earlier than November 15,

 1992.

c.

 For sources with potential to emit at least

25 tons per year but less than 100 tons per

year and which are located in the Chicago

nonattainment area, the calculation for VON

emissions commences at either the time that

the source became major or November 15,

 1990,

whichever time is later.

d.

 In the case where a source has filed a

 complete application for a construction

permit,

 a PSD permit, prior to the date of an

area as nonattainment,

 or dates given above,

whichever occurs late, the calculation shall

2The January 29, 1993, motion will be cited as “1/29/93 at

“

I 1~0-O

5

not include emission increases allowed by

that permit.

(Tr.

 at 140—141.)

Mr. Marder further notes that “these dates and times are critical

and we ask that they be explicitly noted in the Board’s opinion”.

(Tr.

 at 141.)

Mr. Romaine responded to questions at the February 5,

 1993,

hearing regarding the joint motion.

 Mr. Romaine was asked if the

dates and circumstances espoused in Mr. Marder’s testimony

accurately reflected the Agency’s position.

 Mr. Romaine agreed

that the dates and circumstances stated by Mr. Marder did reflect

the Agency’s position.

 (Tr. at 156-158.)

 Mr. Romaine also

agreed that the Board’s opinion should state the interpretation

set forth in the motion as well as the dates and circumstances of

applicability.

 (Tr. at 158.)

The city of Chicago submitted comments in support of the

joint motion

 (PC 5 at 1)

 and Mr. Daniel Muno on behalf of Stepan

Company and Ms. Maria Heiberger on behalf of CPC International,

Inc., also testified in support of the interpretation put forward

 in the January 29,

 1993, motion.

 (Tr. at 208 and 212; Exh.

 9 and

11.)

 The testimony provided by Mr. Muno included extensive

statutory construction arguments in support of a non—retroactive

application of Section 203.209(b).

 (Exh.

 9 at 4—7.)

The Board finds the arguments put forward regarding the

interpretation of Section 203.209(b)

 persuasive.

 Therefore, the

Board will grant in part the joint motion put forward by the

Agency and IERG.

 Thus, the Board adopts an interpretation of

Section 203.209(b)

 that provides “for purposes of determining

whether a net emissions increase of a particular pollutant is

significant,

 the calculation commences with the date of

designation of an area as nonattainment for ozone.”

 (1/29/93 at

1.)

 The specific dates of designation are those stated above in

Mr. Marder’s testimony.

 The Board however hesitates to provide

for an automatic change

 in interpretation of Section 203.209.

Therefore, 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.

Section 203.206.

Mr. Narder 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

01 ~O-O I

t~3

6

new source review rules

 (Exh.

 4) discussed the dual source

definition.3

 The TJSEPA 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 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.

01 ~0-O

7

include fugitive emissions in calculation of whether a source is

a major source in a nonattainment area and provides:

d)

 For purposes of this Part,

in

area.s

ttiat

are

classified

 ser~.

~

 or ex~rem~

~

~he

~giti~e

 e~ti~ionsøt

stationary

søurce

shall

at~tionary søurce

areas

that

a~enot

~lassi~ied

~r~.aus.

 ~v~e

ti~e~

~on~

a~me.n~.

the

fugitive

~I1ss1ons

~fäit~fläi~±~”sóurce

shall

not

included

determining

whether

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.)

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’

Association

(INA)

expressed

concern with the applicability of the proposal to sources with

pending permit applications or which have permits but 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 USEPA 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 PN1O or by May

0k0-OI~5

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)

 !~t,

1~1.~::

 I:~Pfa:~cthUtd

~.tno~

 April ~4, l97!~~r the date the ~

ia

dccignatcd by the UCEFI&Unitcd Ct~itc3Environmental

rratcotion

 Agcnay (U?EPAI a~

 nonattain~ncntarea

for the pollutant, whichcvcr ~

~noro

 rcoont, and

thc~i~hutdø~nsourcc~isbcingre

~~W~iiIth~

01 ~Q-O

I ~6

~

 and ~inn~t~in the case of a fuel

combustion

sou±ce be

based

the

type

fuel

being burned at the time the permit application is

filed,

 and,

 if offset is to be produced by a

future

switch

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

emission

reduction

return

the dirtier fuel is proposed;

pcn~in*~nt

 ~urthi1im~ntof

prothi~otionor oporating

h~tW~

~

~n ~

~pp1in~tio~i

i~

fI1~4for ~ n~vor inodificd~~ouroe,

1~A~

~

~

~

 r~p~rJ~j

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.~~x~t~4

s~*y~d~

tI~

tatn~ent

4emonetrattoi~and

state

 trading or

~

 ~u~es

~*rt~~levant

the

new

mOd

fled

 source

 be a

replacement for the shutdown or curtailment;

4~

 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

01 ~0-Q1~47

VOCs and NO~.

(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

Pennzoll 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

01 ~0-O

I.e8

11

further

change

was

necessary.

(PC

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.

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

this

proceeding

all

indicated

general

agreement and support of the proposal.

 The Board finds that the

record supports proceeding to second notice with the proposal as

amended in this opinion.

 The Board hereby adopts this proposal

for second 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

AIR

POLLUTION

CHAPTER

I:

 POLLUTION CONTROL BOARD

SUBCHAPTER a:

 PERMITS AND

GENERAL PROVISIONS

PART 203

MAJOR STATIONARY SOURCES CONSTRUCTION

AND

MODIFICATION

SUBPART A:

 GENERAL PROVISIONS

Section

203.101

 Definitions

203.103

 Actual Construction

203.104

 Actual Emissions

203.107

 Allowable Emissions

203.110

 Available Growth Margin

~0-U

L~9

203.112

203.113

203

116

203.117

203.119

203.12~j,

203. 123.~.

203.123

203.124

203.125

203.126

203.127

203.128

203.131

203.134

203.

136

203.145

203.150

203.155

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)

SUBPART B:

 MAJOR STATIONARY EMISSIONS SOURCES IN

NONATTAINMENT

AREAS

Section

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

NONATTAINNENT AREAS

Section

203.301

203.302

203.303

203.304

203.305

203.306

Lowest Achievable Emission Rate

Maintenance of Reasonable Further Progress and Emission

Offsets

Baseline and Emission Offsets Determination

Exemptions from Emissions Offset Requirement (Repealed)

Compliance by Existing Sources

Analysis of Alternatives

SUBPART

OPERATION

 A MAJOR STATIONARY SOURCE OR MAJOR

MODIFICATION

Ut ~0-U

150

Section

203.601

Lowest

Achievable

Emission

Rate

Compliance

Requirement

203.602

 Emission Offset Maintenance Requirement

203.603

 Ambient Monitoring Requirement

 (Repealed)

SUBPART

GENERAL

MAINTENANCE

EMISSION

OFFSETS

Section

203.701

 General Maintenance of Emission Offsets

SUBPART

OFFSETS

FOR

EMISSION

INCREASES

FROM

ROCKET

ENGINES

AND

MOTOR

FIRING

Section

203.801

 Offsetinci 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

1010

and

1027)

(41~

ILCS 5/9

1,

..................

..............

.......

SOURCE:

Adopted

and

codified

Iii.

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

GENERAL

PROVISIONS

Section 203.101

 Definitions

Unless

 a different meaning of the term i~clear from it~contcxt

otherwise specified within this Part, the definitions of the

terms

used

 this Part shall be the same as those used in the

Pollution

 C~ii’~r

51

Board (Board) Rules and Regulations

 35 Ill.

Adm.

Code

201

and

211.

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

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 Aciencv

 (USEPA)

~O-O 151

14

pursuant

Sections

111

and

112

the

Clean

Air

Act

(42

U.S.C.

7401,

seq.)

and

made

 applicable

Illinois

pursuant

Section

9.1

the

Environmental

Protection

Act

(Act)

(Ill.

 Rev.

Stat

9851991,

ch.

111

1/2,

pars.

1001

seq.)

t415

 XLçS

5/iL

2)

 The applicable emission standards or limitations

contained

this

 Chapter and approved by ~e

United Ctate3 Environmental Protection Agcncy

USEPA

pursuant

Section

110(a)

(2)

110

(a)

(3)

of the Clean Air Act, including those standards or

limitations

with

future

 compliance date and any

other

emission

standard

limitation

enforceable

under

 the Environmental Protection

Act

the

USEPA

under

Section

113

the

Clean

Air

Act;

3)

The

emissions

rate

specified

 an, a federally

enforceable permit condition including those

emissions

rates

with

future

compliance

date.

b)

 The allowable emissions may be based on e~

federally

enforceable permit condition limiting material or fuel

throughput.

 a source is not subject to an emission standard

described in subsection

 (a) above and is not subject to

permit

 condition described in subsection

(b)

 above,

the allowable emissions shall be the source’s potential

to emit.

(Source:

Amended

Ill.

Reg.

______,

 effective

_________)

Section 203.110

 Available Growth Margin

“Available

Ggrowth

 14~argin”means the portion which remains of

any

emission

allowance

 for new or modified major stationary

sources expressly identified in the attainment demonstration

approved

 the United StatesU.S. Environmental Protection Agency

(USEPA)

under

 Section 172(~c)

(~)

(4)

the

Clean

 Air Act

(42

U.S.C.

7502(~ç)(~)(4))

 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)).

(Source:

 Amended at 17 Ill. Req.

______,

 effective

_________)

Section 203.112

 Building, Structure and Facility

a)

 The terms “building”, “structure”, and “facility”

include all of the pollutant—emitting activities which

i~0-O

152

15

belong to the same industrial grouping,

are

located

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

 35 Ill. Adm. Code 720.111.

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 propulr3ion cnginc~,the operation of engines to

provide heat, refrigeration or lighting, operating

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 purpose

 or from a non

road engine or non road vehicle ~

Section

~16

the

Clean

.~ir ~ct

(42

7401

(Source:

Amended

Ill.

Reg.

______,

 effective

__________

Section 203.1221

 Emission Offset

“Emission offset” means a creditable emission reduction used to

compensate for the increase in emissions

resulting

from

new

major source or a major modification in accordance with Sections

203.302 and 203.303 of this Part.

(Source:

amended

..“‘

Section 203.1232

 Emissions Unit

i~O-Ot53

“Emissions

~~nit”

means

any

part

stationary

source

which

emits or has the potential to emit any ~

 pollutant subject to

regulation

under

the

Act

this

Chapter

the

United

States

Environmental

Protection

Agency

UCEPA

under

the

Clean

Air

Act

(42

U.S.C.

 7401, the Act or et seq.).

(Source

 Section 2~3~fl2

ren~beredfr~*mSection

2O~123

and

Addcd

a~ended

Ill

Reg

_____,

 effective

_____________

Section 203.123

 Federally Enforceable

“Federally enforceable” means enforceable by the United States

Environmental Protection Aciency.

(Source

 Former 8ectiox~2U3~12~renuirthered to

Section

21~2,

~ew~Seot~ou

added

Iii

Reg

_____,

effective

_____________

..,.....................,......

Section

203.126

LAERLowest

Achievable

Emission

Rate

“LAER”

 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

hours

operation

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

 a stationary source.

(Source:

Amended

Ill.

 Reg.

______,

 effective

___________)

Section 203.145

 Volatile Organic CompoundNaterial

“Volatile Organic Compouna~means ~voia~iie organic material”, a~

that

term

ic defined at 35 Iii.

 Adin.

Code 211.122.

“Volatile organic material”

 (VON) means any compound of carbon,

excluding carbon monoxide, carbon dioxide, carbonic acid.

metallic carbides or carbonates, and ammonium ~arbonate, which

participates in atmospheric photochemicpl reactions.

~j

 This includes any such organic compound other than the

following, which have been determined to have

17

negligible photochemical reactivity:

 Methane; ethane;

methylene chloride (dichlormethane).

1,1,1-trichlorethane

(methyl

chloroform);

1, 1,1—trichloro-2

.2, 2—trifluoroethane

(CFC-113);

trichlorofluoromethane (CFC—ll);

dichiorodifluoromethane (CFC-12); chlorodifluoromethane

(CFC—22);

 trifluoromethane

 (FC—23); 1,2—dichloro

1.1,2,2—tetrafluoroethane (CFC—114)

cloropentafluoroethane (CFC—l15);

 1.1, 1—trifluoro

2,2-dichloroethane

 (HCFC-123);

 1,1.12—tetrafluoroethane

(HFC—134a);

1.l—dichloro

1-f luoroethane

(HCFC—l4lb)

1-chloro_l,1—difluoroethane (HCFC—142b);

2-chloro--1,

1,1,

 2-tetrafluoroethane

 (HCFC-124);

pentafluoroethane

(HFC-125);

1,1,2.

2-tetrafluoroethane

(HFC—134);

1,1,

1—trifluoroethane

(HFC—143a);

1, 1-difluroethane

 (HFC-152a); and perfluorocarbon

compounds

which

fall

into

these

classes:

Cyclic,

branched,

 or linear, completely

fluorinated alkanes

Cyclic,

branched,

 or linear, completely

fluorinated

ethers

with

 no unsaturations

 Cyclic,

 branched, or linear, completely

fluorinated tertiary amines with no unsaturations

and

4J

 Sulfur containing perfluorocarbons with no

unsaturations and with sulfur bonds only to carbon

and fluprine.

~j

 For purposes of determining VOM emissions and

compliance with emissions limit~,s~

 VOM will be measured

by the test methods in the approved implementation plan

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

 of the Clean Air Act or under 40 CFR Part 51,

Subpart

 I or Appendix

 S. 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

measures compounds with negligible photochemical

reactivity, these negligibly—reactive compounds may be

excluded as VON if the amount of such compounds is

accurately quantified. and such exclusions is approved

by the Agency.

~j

As

 a precondition to excluding these

01 ~O-O

155

18

negligibly—reactive

compounds

VON

any

time

thereafter,

the

Agency

may

reciuire

owner

operator

to_provide monitoring or testing methods and results

demonstratinci,

the

satisfaction

the

Agency,

the

amount of negligibly—reactive compounds in the source’s

emissions.

~j..

The

shall

not

 be’

b’Si3”ñd”b~”a

i~i”y

State

dé’té±~m

i’ná’tion

appropriate methods for testing or monitoring

negligibly-reactive

compounds

such

determination

not

reflected

any

 of the provisions of paragraph

(2)

(Source:

Amended

Ill.

Reg.

________,

 effective

_________)

Section 203.150

 Public Participation

Prior to the initial issuance or revision of a permit pursuant to

Subpart

the

Agency

shall

provide

minimum,

notice

the

proposed issuance of a permit~ai~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& 252.

(Source:

 Amended at 17 Ill. Reg.

_____,

 effective

___________)

SUBPART

MAJOR

STATIONARY

EflICCIONS

SOURCES

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

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 major stationary

sources or ma-br modifications of sources that emit volatile

organic materials or nitrocien oxides

~

 ~4S ~

which

~iere

adopt~

j~tplemeritthe c~ea~

~ct

~eri~mertts

Z~ ~ba~

~

 ~pt~1içt~~

~

 ~i~r

 maio~

~odi~t4p~

~i~4o1~

~r~dt

 ~pp~cat~,

 wasPsu~t~te~b~

 June

~

~

~

~

I~~~PMX~IF

~~SI

“~“~‘

.....................

‘..~.

............

(Source:

 Amended at 17 Ill. Reg.

_____,

 effective

____

Section 203.203

 Construction Permit Requirement and

0 kU-U

156

Application

construction

permit

required

prior

actual

construction

major

new

 source or major

modification.

b)

 Applications for construction permits required under

this Section shall contain sufficient information to

demonstrate

compliance

with

Ill.

Adm.

Code

201

and

the

requirements

this

Subchapter

Part

 including,

but

not

limited

to,

 Subpart C.

c)

 The permit shall include conditions specifying the

manner

which

the

requirements

Subparts

and

this

Part

are

satisfied.

permittee

shall

violate

any

condition

 contained in a

construction

permit

issued

for

new

major

stationary

source

major

modification

which

subject

this

Part.

(Source:

Amended

Ill.

Reg.

_____,

effective

___________

Section

203.206

Major

Stationary

Source

S~~Y

‘~c~’

I~I~~1

~xç

siy~~

~ea~

~build~1

 s1~r~çtur~

an~

~aci1ity~!t

as those

~

~ec~on

~

~i~:~)The following constitute a major stationary source:

1)

 Any 3tationary couroc

air

pollutant3

which

emith,

 or ha3 the potential to emit,

 100 ton3 per

year or more of

 nr~11ut~nt

for which nollutant

the area i3 a nonatta~..~...arca.For an area

designated as nonattainment for ozone,

 a malor

stationary source is a stationary source which

emits

 has the potential to emit volatile

organic material in an amount egual to or greater

than the following:

~j.

 100 tons per year in an area classified as

marginal or moderate nonattainment for ozone

~

 50 tons per year in an area classified as

serious nonattainment for ozone

~

 25 tons per year in an area classified as

severe nonattainment for ozone;

and

L~Q-U

157

20

Qj

 10 tons per year in an area classified as

extreme

nonattainment

for

ozone

2)

 Any phy

~ionary

 ~ourcc not qualifying under paragraph

1

a~a major stationary 3ouroe,

 if the change would

conGtitute a major Qtationary source by itocif.

For an area designated as nonattainment for

nitrogen dioxide,

 a malor stationary source is a

stationary source which emits or has the potential

emit

100

tons

per

year

nitrogen

dioxide.

~j.

For

area

designated

nonattainment

for

ozone,

a major stationary source is a stationary source

which

emits

has

the

potential

emit

nitrogen

oxides in an amount egual to or greater than the

following, unless U

Pro~tection~ge~cv

 has made a finding under

SectIOn

 I’I”äM”182

(f)

the

Clean

Air

Act

that

controlling of emissions of nitrogen oxides from

such sources shall not be reguired:

~

 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,

~j

 25 tons per year in an area classified as

severe nonattainment for ozone, and

~

 10 tons per year in an area classified as

extreme nonattainment for ozo~~

j)

 For an area designated nonattainment for PM—b

a

malor 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

classified as serious nonattainment.

~j

 For an area designated nonattainment for carbon

monoxide, 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

3ii~O-0t58

nonattainment

area,

except

provided

in

(B)

below,

tons

Per

year

area

classified as “serious” nonattainment for

carbon monoxide where stationary sources

significantly

contribute

ambient

carbon

monoxide

levels,

determined

under

rules

issued

USEPA

DUr~T~ tç~1th~ ~le~r~i

~jr

 For an area designated nonattainment for a

pollutant

other

than

 ozone, nitrogen dioxide

PM—b

 or carbon monoxide,

 a xaaior stationary

source

stationary

source

which

emits

has

the potential to emit 100

tons

per

year

the pollutant.

 A major stationary source that

major

for

volatile

organic

compounds

shall

 be considered major for ozone.

AnY

physical

chancie

that

occurs

stationary

source

which

does

not

qualify

under

p~r~tqr~!Iph

 subsection

(a)

of this Section as a malor

stà’t’ionãry

 söürce

will

considered a major stationary source,

 if the chancie

would

constitute

 a major 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

the

fixed

 capital cost of

an entirely new stationary source.

 Determining whether

reconstruction will occur is based on the following:

b)

 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

The

extent

which

the

components

being

 replaced

cause

contribute

the

emissions

from

the

source.

For

purposes

this

Part,

 in areas that are

eias~i~ie~

~çt~e~

~qr~

22

inclUded in determining whether it

 is p malor

statiónary.•.•:.’sàurce”.

 ,,~:‘.,In.a~~s,.:that::are.

 nOt’ :~1assifi’ed’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

one

the

following

categories of stationary sources:

1)

 Coal cleaning plants

 (with thermal dryers);

Kraft

pulp

mills;

Portland

cement

plants;

4)

 Primary zinc smelters;

Iron

and

steel

mills;

Primary

aluminum

ore

reduction

plants;

7)

 Primary copper smelters;

8)

 Municipal incinerators capable of charging more

than

250

tons

 refuse per day;

Hydrofluoric,

sulfuric,

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;

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;

o1~3_~60

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

categoryj~

which

wa~

regulated ø~’p~August

7,

1980

UCEPA

standard pi”omt”Igated under Section 111 or 112 of

the Clean Air Act

 (42 U.S.C.

 7411,

 7412),

 but only

with

respect

those

air

pollutants

that

have

been

 regulated for that category

~fl

 Any other stationary source category designated

by,

the

United

States

Environmental

Protection

Agency

rule.

(Source:

Amended

Ill.

Reg.

_____,

 effective

___________

Section

 203.207

 Major Modification of a Source

a)

 Except as provided in subsection

(c)

 below,

 a physical

change,

change

the

method

operation

major

stationary

source

that

would

result

significant

net

emissions

increase

any

pollutant

for

which

the

area

designated

nonattainment

area,

shall

constitute a major modification of a source.

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).

2)

 Use of an alternative fuel or

raw

material

reason

any

order

under

Sections

2 (a)

and

(b)

the Energy Supply and Environmental Coordination

Act

1974

(15

U.S.C.

791),

the

Power

Plant

and

Industrial

Fuel

Use

Act

1978

(42

U.S.C.

8301)

(or any superseding legislation) or by reason of a

natural

gas

curtailment

plan

pursuant

the

ORG-3161

24

Federal

Power

Act

(16

U.S.C.

791,

seq.).

3)

 Use of an alternative fuel by reason of an order

rule

under

Section

125

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:

Was

capable

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

CFR

52.21,

this

Part,

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

change or change in the method of operation of a major

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

operation,

 unit,

 or other pollutant emitting activity

at the source shall be considered a malor 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,

üti~U-O162

25

and

21

 The owner or operator of the source elects to

offset the increase by

 a greater reduction in

emissions of such Pollutant 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 chancie

 in or chancie 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 ~GG vo~a~iLe

OrcffiTUO

materi~aX

and N-Q~nitrogen oxides emissions in

re ozone ~“b~’~’~E”

‘~“~?

 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.S.United States Environmental Protection Agency

(USEPA)

 as a nonattainment area for the pollutant,

whichever is more recent;

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

the

same

increase

decrease

011~Q-U

163

actual

emissions;

and

Only

the

extent

the

new

and

old

levels

differ.

c)

 A decrease in actual emissions is creditable to the

extent that:

federally

enforceable

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 Ill. 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:

~

 Carbon monoxide:

 100 tons per year

 (tpy)

2~1 Nitrogen oxides:

 40 tpy for a nonattainment area

for nitrogen dioxide and 40 thy for an ozone

nonattainment area,

 except as provided in

subsection

(b)

 of this Section

~.ej

Sulfur

dioxide:

tpy

4.8j

 Particulate matter measured as PM-b

 3~25tpy

01 ~O-0

I 6~

27

~e)

 Ozone:

 40 tpy of volatile organic compounds

 material, except as provided in subsection

(b)

of

this

Section

6~) 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

pp~1utantfrom

 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

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

allowable under an applicable new source

performance standard adopted by USEPA 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

DI ~Q-O

I 65

shall demonstrate that the control equipment and

process measures applied to the source will produce

LAER.

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 nonattainment

for_ozone,

 for modifications which are malor pursuant

to the applicability provisions of Section 203.207(d)

£or volatile organic material and nitrogen oxide

emissions, LAER shall apply except as provided as

follows:

fl

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 Technology

 (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 UCEPAIJnited

States

~nvironmentai

Proteotton

~j

 In the case of a stationary source which emits or

 has the potential to emit 100 tons per 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

~tL~00166

29

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.).

~

 For new maior sources or maior 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

 b in areas classified as marginal

~j

 1.15 to

 1 in areas classified as moderate

~j

 1.2 to

 1 in areas classified as serious

Qj

 1.3 to

 1 in areas classified as severe; and

~j

 1.5 to

 1 in areas classified as extreme.

~j

 The offset reauirement provided in subsection

(2)

“

 above shall not be applicable

 in extreme areas to

a modification of an existing source:

~j

 if such modification consists of installation

of eguipment reguired to comply with the

implementation plan or the Clean Air Act; or

 the owner or operator of the source elects

to offset the increase by a greater reduction

in emissions of such ~o1butant from other

discrete operations, units, or activities

within the source at an internal offset ratio

of at least b.3 to

1.

b)

 The Agency shall allow the use of all or some portion

of the available growth margin to satisfy subsection

30

(a)

 above if the owner or operator can present evidence

that the possible sources of emission offsets were

investigated~~4

 none were available at that time and

the new or modified major stationary source is located

in

 a zone (within the nonattainment area)

 identified bY

USEPA in consultation with the Secretary of Housing and

Urban Development,

 as a zone to which economic

development 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)

ust1~.i’~””i”~”c’E”,”b’e

 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;

permanent ourtailment of produetion or operating

~tttci~

thc

d~tc ~

application is filed for a nc~t

modified soU~ro~,

been ~n~idc

~noim

to the

 ~eot~4

 ~tork1~ozroe~

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,

i~-Q

168

31

1979,

 or the date the area is designated a

nonattainment area for the pollutant, whichever is

more recent,

 and. ~int~.i~

 tI~U~P~~

~~roy~

t~

att~ininent

demonstration

and

state

trading

or

r~p~ct

rules

for,

~he

 p~ll~t~it.~

the

~Ose~”

 new or

 dif’ièd”säürcé”I~üC?”b~”á”

replacement for the shutdown or curtailment;

4

 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.

c)

 The baselines for determining emission offsets are as

follows:

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) ~415

ILC~

5~ 1~)

progress and attainment of ambient air quality

standards approved by USEPA pursuant to Section

110(a) (2)

 or 110(a) (3)

 of the Clean Air Act is

based on the applicable emission limitations of

this Chapter or the

Act

 or any applicable

stanUarW~

~u~p~eu

uc~z~i~

pursuant

.‘t..iuii

111

and 112 of the Clean Air Act and made applicable

i-n Illinois pursuant to Section 9.1 of the

an

 Environmental Protection Act for sources within

area,

 and the source from which the offset is to

be obtained is subject to such limitations, the

baseline for offsets shall be the lesser of such

 limitation or the potential to emit of the source.

d)

 The location of sources providing the emission

pffscto:reductjons to fulfill the offset reguirements

of this Section:

Must,

 for particulate matter, sulfur dioxide and

carbon monoxide, be such that

 relative to the

i~.O-01

32

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

sources providing the offset arc on the same

or in the immediate vicinity ~

£~

or modified source and the pollutants disperse

from

substantially

the

height.

determining

same

effective

stack

effective

stack

height,

creait shall not be givz.r~for d

enhancement techniques.

The

owner

 or operator

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 arc

included),

 the creditable stack height shall be

used.

 Must be achieved in the same nonattainment

area as the increase being offset, except as

provided as follows:

~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

 The emission reductions from such other area

contrilDute.,to

 a violation of the national

ambient air quality standard in the

nonattainment area in which the new or

modified source

 is located.

21

Must,

for

nitrogen

oxides,

 be in the general

vicinity of the proposed new or modified

source.Must,

 for particulate matter,

 sulfur

dioxide and carbon monoxide, be such that,

relative

the

site

the

proposed

new

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 sources providing the offset are on the

same premises or in the immediate vicinity of the

new or modified source and the pollutants disperse

from substantially the same effective stack

height.

 In determining effective stack height,

01 i~ü-0

170

~vrcm

33

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.

Must,

 for volatile organic compounds,

 be in the

broad vicinity of the proposed

.~_—

._.c.c._,._4—__-

~odificd

 t4~at

~

 must be

~

 from

within the Air Quality Control Region of the new

or modified source,

 or from other areas which may

-~econtributir~to the ozone problem

-~-~-

i-hr’

~tif-s-

of the new or modified source.

LJL.L..~~A

e)

 Replacement of one volatile organic compoundmaterial

with another of lesser reactivity does not constitute

an emission reduction.

,fJ

 Emission reductions otherwise reguired bY the Clean Air

Act

 (42 U.S.C.

 7401 et sea.)

 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 thj~~abp,a~,,t~.

(Source:

 Amended at 17 Ill. Reg.

______,

 effective

Section 203.306

 Analysis of Alternatives

_,c

___~

_~s_1

~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

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

01 L~0-0

171

34

Section 203.801

 Offset~~~for Emi

Rocket Engines and Motor Firing ~

A source may offset, by alternative or innovative means emission

increases from rocket enaine and motor firing,

 and cleaning

related to such firing,

 at an existing or modified malor source

that tests rocket engines or motors under the followin2

conditions:

~j

 Any modification Proposed

 is solely for the purpose of

expanding

the

testing

rocket

engines

motors

existina source that is permitted to test such engines

November

15,

1990

~

 The source demonstrates to the satisfaction of the

Agency

that

has

used

all

reasonable

means

obtain

and

utilize

offsets,

 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

~j

 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

bevels

not

directly

offset by the source.

(Source:

 Added at 17 Ill. Reg.

______,

 effective

____________

IT IS SO ORDERED.

I, Dorothy N. Gunn,

 Clerk of the Illinois Pollution Control

Board, hereby certify that the abQve opinion and order was

adopted on the

~‘-

 day of

77i

~&—e~.I-.-’

1992,

vote

of

~-O.

~7~i

Dorothy M.

 9’uy~n, Clerk

Illinois Po~,XutionControl Board

L~.0-D

172