1. 0 ~ -~3~b
ILLINOIS POLLUTION CONTROL BOARD
April 22,
1993
IN THE MATTER OF:
)
AMENDMENTS TO THE NEW
)
R92-21
SOURCE REVIEW RULES
)
(Rulemaking)
35
ILL.
ADM. CODE 203
Adopted Rule.
Final Order.
OPINION AND ORDER OF THE BOARD
(by G.
P.
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 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
The Board wishes to acknowledge the special contribution
made by Marie
E. Tipsord, who has served as Hearing Officer
throughout these proceedings.
U
i~
-0321
2
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)(1)(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 tJSEPA’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)
comports with the legislative goal of expedited rulemaking
under the Clean Air Act.
The Board affirms the hearing
officer order.
(R92—21, January 21,
1993,
at 5.)
On January 27,
1993, the Board received a document entitled
“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
01
1~
I -0322
3
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.
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.
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
permit7- including a PSD permit, prior to the
date of an area as nonattainment,
or th~
dates given above, whichever occurs láté~,
the calculation shall not include emissthri
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
l2_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
~
-0~23
4
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
“.
5
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.
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 at second
notice.
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
0
~
-~3~b
6
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
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 i.)~ 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 VOM
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
3The January 29,
1993,
motion will be cited as “1/29/93 at
~
!:~~
7
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 VOM
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 including 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.
(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
UIL~
U~)
8
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. Marder 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
definition.4
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.
4The Board notes that the USEPA final approval appeared
after the initial filing of the proposal.
0!
i~
I
-0328
0
(Tr.
at
160; PC 10 at
3-4.)
In addition, c~cand Stepan
expresSea
support for this change,
(Exh.
11 at
4;
Exh.
9 at
12.)
The Board agrees that the adoption of
a plant—wide
source
definitlon
is advisable at this time.
Without discussing the
merits
of the two alternatives
to adopting the plant-wide
definition
the Board will accept the IERC 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. Pon Burke,
testifying
cn 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
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,
rat
are classified
as serious,
severe,
or extreme nonattainment~±he
fugitive_~i~ç
g~_~
~
shall i~e
included
in determining whether
it is
a malor
stationary source._— Th areas that are not classified
as
serious, severe or extreme nonattainment,
the fuqitive
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
-
Sect1pp~
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 onwhi.ch 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 test~f~edon behalr o~
the Agency that the Agency did not IntenQ to apply the amended
10
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 PM1O
or by May
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 nct 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. 3O3(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:
,.i.
11
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,
i-s---th~—eaec 0-f
:~-ew~, have occurred
~
l9~—e~—t4+e---4atetho area is
P~e~e~-q
~E----44~--a—n~att
a
inmcn~—arca
f&r—the—pe-~t~nt,
~-?-~e±~—-is
mere recent,
and
~
be--
-aee4--b.~a~44~
n—s-aw~e-e; ar,-4—~t--7- 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;
cc
~
Inc~--pret4ea~i-~
~
e~—---a-ftcr t~e—4ae---a—-p~~-~
e~p-icctien—ic
fiI-cd-~for
a
ric-~or
~icdtfied~sourcc,.
~a-~e--~e~—~a
de—~i.-~~
-~ahe—f4e—-~--4e~e~-~-
41:Y3)
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
moic recent, anc~_ur~titrio U~PA has approved
the
attainnent
demonstration
and stata:tr.adii~c~.or
i~rk~ir~g~ules
for the relevant ~11utänt~
the
proposed new or modified source must be a
replacement for the shutdown or curtailment;
~
4) Must be federally
enforceable by permit;
4
~)
Must not have been previously relied on,
as
demonstrated by the Agency,
in issuing any permit
pursuant to 35
Iii.
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
12
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.
Sect
1on
203.207
Pennzoil Company raises
a concern regarding the major
modification
de minimis criteria of
25 tons per year
or more
of
VOC5 and NON.
(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 NSP. 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 informatior
for the Board to amend Section 203.207(d).
other Comments
Pennzoil suggested that the definition
in Section 203.112(
should be revised to include “installation”
in order to be
completely ‘consistent with USEPA’s definition.
(PC 2 at 2.)
3
addition, Pennzoil suggested that the listing
of sources
in
Section 203.206(a)
should be reorganized
so that the listings
13
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
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
ii
41-0333
14
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:
PEPNITS
AND
GENERAL
PROVISIONS
PART 203
MAJOR STATIONARY SOURCES CONSTRUCTION AND MODIFICATION
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. 122-.~
203.12~-~
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)
SUBPART
B:
MAJOR
STATIONARY
EMISSIONS
SOURCES
IN
NONATTAINMENT
AREAS
Section
203.201
203.202
203.203
203.204
203.205
203.206
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
014I-0334
15
203.207
Major Modification of
a Source
203.208
Net Emission Determination
203.209
Significant Emissions Determination
203.210
Relaxation of a Source-Specific Limitation
203.211
Permit Exemption Based on Fugitive Emissions
SUBPART
C:
REQUIREMENTS FOR MAJOR STATIONARY SOURCES IN
NONATTAINNENT AREAS
Lowest Achievable Emission Rate
Maintenance of Reasonable Further Progress and Emission
Offsets
203.303
Baseline and Emission Offsets Determination
203.304
Exemptions
from Emissions Offset Requirement
(Repealed)
203.305
Compliance by Existing Sources
203.306
Analysis of Alternatives
SUBPART F:
OPERATION OF A MAJOR STATIONARY
SOURCE
OR
MAJOR
MODIFICATION
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
Section
203.301
203.302
Section
203.601
203.602
203.603
~.
I -0335
16
Unless
a- different meaning of the term is clear from its context
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
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 ill and 112 of the Clean Air
Act
(42 U.S.C.
7401,
et seq.)
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.
2)
The applicable emission standards or limitations
contained in this Chapter and approved by #~e
United States Environmental Protection Agency
-(-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 a~a federally
enforceable permit condition including those
emissions rates with a future compliance date.
b)
The allowable emissions may be based on ai~a 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.
I
41-0336
17
(Source:
Amended at 17 Ill. Reg.
______,
effective
_________)
Section 203.110
Available Growth Margin
“Available
Ggrowth
MIllargin”
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
(USEPA) under Section l72(~ç)(54)
of the Clean Air Act
(42 U.S.C.
7502
(~)
(5~)) 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.
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. Adm. 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 cngincs, 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
0
~.
1-0337
18
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
203.122-i
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
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 203.1232
Emissions Unit
“Emissions ~11nit” 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 USEPA 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
41-0338
19
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
CompoundMaterial
“Volatile Organic Compound” means “volatile ora~nicmaterial”,
as
th-at
term
is
defined
at
35
Ill.
Adm.
Code
211.122.
“Volatile
organic
material”
(VOM)
means
any
compound
of
carbon,
excluding carbon monoxide, carbon dioxide, carbonic acid,
metallic
carbides
or
carbonates,
and
ammonium
carbonate,
which
participates
in atmospheric photochemical reactions.
~
This includes any such organic compound other than the
following, which have been determined to have
negligible photochemical reactivity:
methane; ethane;
methylene
chloride
(dichloroxnethane),
l,l,l-trichlorethane
(methyl chloroform);
1,1,l—trichloro—2,2,2—trifluoroethane
(CFC—113);
trichiorofluoromethane
(CFC—11);
dichlorodifluoromethane
(CFC-l2); chlorodifluoromethane
(CFC-22); trifluoromethane
(FC—23);
1, 2—dichloro
1,1,2,2—tetrafluoroethane
(CFC—114);
cloropentafluoroethane
(CFC—ll5);
1,1, 1—trifluoro
2, 2-dichloroethane
(HCFC-123);
1,1,12-tetrafluoroethane
(HFC-l34a)
1,1-dichloro 1-fluoroethane
(HCFC—l4lb);
1-chloro 1,l-difluoroethane
(HCFC-142b);
2—chloro-1,l,1,2—tetrafluoroethane
(HCFC—l24);
pentafluoroethane
(HFC-l25); 1,1,2, 2—tetrafluoroethane
(HFC-l34); 1,1,1—trifluoroethane
(HFC-143a);
1, 1-difluroetharie (HFC-152a); and perfluorocarbon
compounds which fall into these classes:
~j
Cyclic,
branched,
or linear,
completely
fluorinated alkanes
21
Cyclic, branched,
or linear,
completely
fluorinated ethers with no unsaturations
~
Cyclic,
branched,
or linear,
completely
fluorinated tertiary amines with no unsaturations
and
g~
Sulfur containing perfluorocarbons with no
unsaturations and with sulfur bonds only to carbon
01
-0339
20
and
fluorine.
~j
For purposes of determining VON emissions and
compliance with emissions limits, VON 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 V of the Clean Air Act or under 40 CFR Part 51,
Subpart
I or Appendix
S1
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 are approved
by the Agency.
~j
As a precondition to excluding these
negligibly—reactive compounds as VOM or at any time
thereafter, the Agency may reguire 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 Agency shall
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
(2)
(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~an4 a comment period,
and
opportunity for public hearing pursuant to the Agency public
participation procedures
found at set forth at
35 Ill.
Adm. Code
3-66 252.
(Source:
Amended at 17 Ill.
Reg.
_____,
effective
____________)
SUBPART B:
MAJOR STATIONARY EMISSIONS SOURCES
IN
NONATTAINMENT AREAS
0
i
41
-334Q
21
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
major
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
major
stationary
source
or
major
modification
for
which
a
permit
application
was
submitted
by
June
30,
1992,
for
PM—b,
Nay
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.
Peg.
_____,
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.
Peg.
_____,
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.
01
41
-034
I
22
a~)
The following constitute a major stationary source:
1)
Any stationary source of air pollutQnts which
emits,
or has the potential to emit,
100 tons
year or more of any pollutant for which pollutant
the area is a nonattainmcnt area.For an area
designated as nonattainment for ozone,
a major
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
marginal
or
moderate nonattain~ent 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
p1
10 tons per year
in an area classified as
extreme nonattainment for ozone.
2)
fl
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 equal 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 ~er 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
0~4t-0342
Any physical change that would occur at a
stationary
source
not
qualifying
under
paragraph
I
as a major stationary source,
if the change would
constitute a major stationary source by itself.
For an area designated as nonattainment for
nitrogen dioxide1
a major stationary source
is a
stationary source which emits or has the potential
to emit 100 tons per year or more of nitrogen
dioxide.
23
3~c)
P1
10
tons
per
year
in
an
area
classified
as
extreme
nonattainment
for
ozone.
41
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—lU
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,
a major stationary source is a
stationary
source
which
emits
or
has
the
potential
to
emit:
~
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” nonattainnient 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
major
stationary
source
is
a
stationary
source
which
emits
or
has
the
potential
to
emit
100
tons per year or more of
the
pollutant.
A
major
stationary
source
that
is
a
major
for
volatile
nrrc~mni
r~
‘-~h--~1
1
hs~.
r~r~r~’~’i
~1c~rr’d
ma’irr
fr~r
~~nnr~
-
Any physical change that occurs ata
stationary source
which does not qualify under subsection
(a)
of this
Section as a major stationary source will be considered
a major stationary source,
if the change 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
of the fixed capital cost of
an entirely new stationary source.
Determining whether
reconstruction will occur
is based on the following:
0!
4
-0343
24
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
4)
The extent to which the components being replaced
cause
or
contribute
to
the
emissions
from
the
source.
4e)
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
major
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;
014I
-0344
25
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;
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 was
regulated as of August 7,
1980 by USEPA 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
~
Any
other
stationary
source
category
designated
by
the
USEPA
by
rule.
(Source:
Amended at
17 Ill. Beg.
_____,
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 for which the
area is designated
a nonattainment area,
shall
constitute
a major modification
of a source.
Ok!
-0345
26
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).
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.
0
I
4
I
-0345
27
7)
Any change in ownership at
a stationary source.
ç~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 major modification
unless:
~j.
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 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 change in or change in the method
of operation
of a major 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
major modification.
(Source:
Amended at
17 Ill.
Beg.
______,
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
0!
41
-0347
28
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.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 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.
Adin.
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.
O!41-0348
29
(Source:
Amended
at
17
Ill.
Beg.
_____,
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)
~j.
Nitrogen oxides:
40 tpy for a nonattainment area
for nitrogen dioxide and
40 tpy for an ozone
nonattainment
area,
except as provided in
subsection
(b)
of
this
Section
~e1
Sulfur dioxide:
40
tpy
4~1
Particulate
matter
measured
as
PM-lU:
25
tpy
Se)
Ozone:
40 tpy of volatile organic compounds
material,
except as provided in subsection
(b)
of
this Section
~#)
Lead:
0.6 tpy
~j
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
pollutant from
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.
Beg.
______,
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,
0
41
-0349
30
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 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
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 major pursuant
t~othe applicability provisions of Section 203.207(d)
for volatile organic material and nitrogen oxide
emissions, LAER shall apply except as provided as
follows:
O!4
1-0350
31
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 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
USEPA.
21
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
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.).
j
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
p1
1.3 to
1 in areas classified
as severe; and
j~j
1.5 to
1 in areas classified
as extreme.
01 41-035!
32
21
The
offset
requirement
provided
in
subsection
(1)
above shall not be applicable
in extreme areas to
a modification of an existing source:
~
if such modification consists of installation
of equipment required to comply 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
discrete operations, units1
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-n4 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 development
should be targeted.
(Source:
Amended at 17
Ill.
Beg.
______,
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
designated by tho USEPA
03
a nonattainment area
for the pollutant,
whichever is more recent,
and
~nutaown
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
U
41-0352
33
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;
—~
4~.)
permanent curtailment of production or operating
hours
occurring
on
or
after
the
date
a
permit
pp 1
—
—
~
—~.
-~
-.~
-~
— -~
I
I
Dfl
,
I
I
U~ii
I
fir
.~i
nrl.J
UTF~
mclu
I
r
U~(
~flhJ
~
-
nave been made known to the affected work force;
~)
Must be federally enforceable by permit;
65)
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)
~
f-olbows:
1~~_
—
—
-~
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
1i
141~-Q353
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
is
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;
34
standards
approved
by
UCEPA
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
standards adopted by UCEPA pursuant to Section Ill
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
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
of fscts:reductions
to
fulfill
the
offset
requirements
of
this
Section:
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
sources providing the offset arc 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,
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 o#
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 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
nonattaininent area where such other area has
an egual
or higher nonattainment
classification than the area in which the
source is located, and
~j.
The emission reductions from such other area
01
4
-Q351~
35
contribute
to
a
violation
of
the
national
ambient
air
quality
standard
in
the
nonattainment
area
in
which
the
new
or
modified
source
is
located.
of
the
new or modified
e)
Replacement
of
one
volatile organic compoundmaterial
with
another
of
lesser
reactivity
does
not
constitute
an
emission
reduction.
~Q..
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
01 41-0355
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
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
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,
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
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
be
ntrihltinrl
tr~ thr~
ozone
rn-nblc’m
~t
th~
site
36
reductions
meet
the
requirements
of
this
Subpart.
(Source:
Amended
at
17
Ill.
Beg.
______,
effective
__________
Section 203.306
Analysis of Alternatives
For craission of volatile organic compounds
or carbon
nionsx4d-e-~-
~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.
Beg.
______,
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
expanding
the
testing
of
rocket
engines
or
motors
at
an
existing
source
that
is permitted to test such engines
on
November
15,
1990
~
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
gj
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.
01 41-0356
37
(Source:
Added at
17 Ill.
Beg.
______,
effective
IT
IS
SO
ORDERED.
I,
Dorothy
M. Gunn,
Clerk of the Illinois Pollution Control
Board,
hereby
certify
that
the
above
opinion
and
order
was
adopted
on
the
~
day
of
______________,
1993,
by
a
vote
of
_____
/\_~~
2
~
/~
Dorothy
M.
Guthi,
Clerk
Illinois
PoU,A~ition Control
Board
0H~~.1-0357

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