ILLINOIS POLLUTION CONTROL BOARD

June 16,

1983

IN THE MATTER OF:

MAJOR STATIONARY SOURCES

)

R81-l6

CONSTRUCTION AND MODIFICATION

)

Docket

B

PART 203 OF CHAPTER

2:

AIR POLLUTION

PROPOSED ORDER.

SECOND NOTICE

ORDER OF THE BOARD

(by J.

D.

Dumeile):

It is the Order of the Pollution Control Board that Chapter

2:

Air Pollution Regulations be amended by the addition of

Part 203:

Major Stationary Source Construction and Modification,

as follows:

TITLE

35:

ENVIRONMENTAL PROTECTION

SUBTITLE B:

AIR POLLUTION

CHAPTER

I:

POLLUTION CONTROL BOARD

SUBCHAPTER

a:

PERMITS AND GENERAL PROVISIONS

PART

203

MAJOR STATIONARY SOURCES CONSTRUCTION AND MODIFICATION

SUBPART

A:

GENERAL PROVISIONS

Section 203.101

Definitions

Unless

.a

different meaning of the term

is clear from its

context1

the definitions of terms used

for this Part shall

be the same as

those used

in

the Pollution Control Board Rules and Regulations,

Chapter

2:

Air Pollution.

Section 203.102

Actual Emissions

The

actual rate of annual emissions

of a pollutant from an

operational emission source for a particular date equal to

the mean rate at

which the emission source actually emitted

the pollutant during the two-year period which immediately

precedes the

particular date and which is determined by the

Illinois Environmental Protection Agency (Agency)

to be

representative of

normal emission source operation;

however:

52-387

---

2

a)

The Agency shall allow the use of a different time

period upon a determination that it is more repre-

sentative of normal emission source operation.

The

burden shall be on the applicant to demonstrate that

another time period

is more representative.

Actual

emissions shall be calculated using the emission

source’s actual operating hours, production rates,

and types of materials processed, stored,

or

corn—

busted during the selected time period.

b)

If the Agency determines that there

is inadequate

information to determine actual emissions as indi-

cated in the preceding paragraphs,

the Agency shall

use the potential to emit of the emission source.

Section 203.103

Allowable Emissions

a)

The emission rate of an emission source is calculated

using the maximum rated capacity of the emission

source

(unless the emission source is subject to permit

conditions or other enforceable limits which restrict

the operating rate,

or hours

of operation, or both)

and the more stringent of the following:

1)

the applicable emission standard or limitation

contained

in this Chapter,

including those with

a future compliance date;

or

2)

the emissions rate specified as a permit condition

including those with

a future compliance date.

b)

The allowable emissions may be expressed as a permit

condition limiting annual

emissions or material or

fuel throughput.

c)

Allowable emissions shall include

a reasonable esti-

mate of emissions in excess of applicable standards

during start-up, malfunction, or breakdown,

as appro-

priate, only if the provisions of Rule 105 of this

Chapter have been complied with.

d)

If an emission source is not subject to an emission

standard under provision

(a)

and is not conditioned

pursuant to provision

(h),

the allowable emissions

shall

be the source’s potential to emit.

Section 203.104 Available Growth Margin

The difference between total

allowable emissions consistent

with reasonable further progress and projected actual

emissions

in a nonattainment area.

---

3

Section 203.105 Commence

As applied to construction of

a major stationary source

or major modification means that the owner or operator has:

a)

Begun, Q~caused to begin,

a continuous program of

actual on-site construction of the source, to be com-

pleted within a reasonable time; or

b)

Entered into binding agreements or contractual obliga-

tions, which cannot be cancelled or modified without

substantial

loss to the owner or operator,

to undertake

a program of actual construction of the source to be

completed within a reasonable time.

Section 203.106 Construction

Any physical change or change

in the method of operation,

including but not limited to fabrication, erection, installation,

demolition,

or modification of an emissions source,

which would

result in a change in actual emissions.

Section 203.107 Emission Baseline

The starting point or reference level

from which increases and

decreases

in emissions are measured.

The rules governing

determination of emission offsets, calculations of

net emission

increases,

and evaluation of alternative control strategies

specify the particular emission baseline that applies for that

purpose.

Section 203.108 Emission Offset

A creditable emission reduction

used

to compensate

for the increase

in emissions resulting from

a new najor source or a major

modification.

Section 203.109 LAER

Abbreviation for lowest achievable emission rate.

Section 203.110 Potential

to

Emit

The maximum capacity of a stationary source to emit a pollutant

under its physical and operational design. Any physical or

operational

limitation on the capacity of the source to emit

a pollutant,

including air pollution control equipment and

restrictions on hours of operation or on the type or amount of

material combusted,

stored,

or processed,

shall be treated as

part of its design only if the limitation or the

effect it

would have on emissions is enforceable.

Secondary emissions

do not count in determining the potential to emit of a

stationary source.

oor~

---

4

Section 203.111 Reasonable

Further Progress

Annual incremental reductions

in the emissions of the applicable

air pollutant sufficient to provide for attainment of the

National Ambient Air Quality Standards

as expeditiously as

practicable,

in accordance with Part D of the Clean Air Act

42 U.S.C.

7501 et ~g.

and 40 CFR 51.15 adopted thereunder.

Section 203.112 Secondary Emissions

Emissions which occur as a result of the construction or

operation of a major stationary source or major modification,

hut do not come

from the major stationary source or major

modification itself.

For the purpose of this Part,

secondary

emissions must be specific, well defined, quantifiable, and impact

the same general area as the stationary source or modification

which causes the secondary emissions.

Secondary emissions may

include, but are not limited

to emissions from any reasonably

foreseeable offsite support facility which would not otherwise

be constructed or increase its emissions as a result of the

construction or operation of the major stationary source or

major modification.

Section 203.113

Public Participation

At the initiation of a permit application pursuant

to Subpart

B,

the Agency shall provide at a minimum, notice of the same

and a comment period pursuant

to the Agency public partici-

pation procedures.

Section 203.114

Severability

Notwithstanding Rule 113 of this Chapter,

if any provision

of Part 203 is stayed or declared invalid by a final order,

no longer subject to appeal, of any court of competent juris-

diction, then the entirety of Part 203 shall be deemed stayed

or invalidated until

the stay is lifted or the Pollution

Control Board acts to revalidate

the Part.

SUBPART

B:

MAJOR STATIONARY EMISSIONS SOURCES IN NONATTAINt4ENT

AREAS

Section 203.201

Prohibition

No person shall cause or allow the construction of a new

major

stationary source or major modification in

an area designated

as rionattainment as defined at Section 171(2) of the Clean

Air Act

(42 U.S.C.

7501.2) with respect to that pollutant,

except as in compliance with this Part

for that pollutant.

---

5

Section 203.202

Preconstruction “ermit Requirement and Application

a)

A preconstruction permit designating the proposed

construction as a new major source or major modifica-

tion is required prior to:

1)

entering into binding agreements or contractual

obligations, which cannot be cancelled or

modified without substantial loss to the owner

or operator, to undertake a program of actual

construction of a source to be completed within

a reasonable time;

2)

initiating physical on—site construction activities

which are permanent in nature including but

not limited to installation of building supports

and foundations,

laying underground pipework

and construction of permanent storage structures;

or

3)

initiating a change in operations which may be

subject to this Subpart and Subpart C.

b)

Applications for preconstruction permits shall contain

sufficient information to demonstrate that the source

constitutes or does not constitute a new major source

or major modification pursuant to this Subpart.

Section 203.203 Construction Permit Requirement and Application

a)

A construction permit is required prior to having

begun or having caused to begin

a continuous program

of actual on—site construction or change

in opera—

tioris of thc ~ourcc, Such permit shall contain enforce-

able conditions satisfying the requirements Subparts

B

and C.

b)

Applications

for construction permits required

under this Section shall contain sufficient information

to demonstrate compliance with Rule 103, and the

requirements of this Subchapter including,

but not

limited to, Subpart

C.

Section 203.204

Duration of Construction Permit

A permit to construct shall become invalid if the permittee has

not commenced construction within

18 months after receipt of

such permit, construction is discontinued for a period of

18

consecutive months or more, or construction is not completed

within a reasonable time.

However, this provision does not

apply to the time period between construction of the approved

phases of

a phased construction project; each phase must begin

actual construction within

18 months of the dates contained in

the permit application.

52-391

---

6

Section 203.205

Effect of Preconstruction and Construction Permits

Neither a preconstruction nor a construction permit shall

relieve

any person of the responsibility to comply fully with applicable

provisions of state,

local or federal

law.

Section 203.206

Major Stationary Emission Source

A major stationary emission source that is major for organic

material

shall

be considered major

for ozone.

The following

constitutes

a major stationary emission source:

a)

Any stationary emission source of air pollutants which

emits, or has the potential to emit,

100 tons per year

or more of any pollutant.

b)

Any physical change that would occur at a stationary

emission source not qualifying under paragraph

(a)

as a major stationary emission source,

if the change

would constitute a major stationary emission source

by itself.

c)

The reconstruction of a stationary emission source

will

be treated as the construction of a new major

stationary source if the fixed capital cost of new

components exceeds approximately half of the fixed

capital

cost of an entirely new stationary source.

Determining whether reconstruction will occur is

based on the following:

1)

fixed capital cost shall mean the capital needed

to provide all the depreciable components;

2)

the fixed capital cost for the replacements

in

comparison to the fixed capital cost that would

be required to construct a comparable entirely

new source;

3)

the estimated life of the source after the replace-

ments 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.

Section 203.207

Major Modification of a Source

Any

physical change, or change in the method of operation of

a stationary emission source that would result in

a significant

net emissions increase of any pollutant,

except that a physical

change or change

in the method of operation shall

not include

any activity listed below.

Any net emissions increase that

is

~2~~Q2

---

7

significant for organic material

shall be considered significant

for ozone.

a)

Routine maintenance,

repair,

and replacement of com-

ponents which do not constitute reconstruction pursuant

to Section 203.206(c),

b)

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.

c)

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.

d)

Use of an alternative

fuel

at a steam generating unit

to the extent that the fuel

is generated from munici-

pal solid waste.

e)

Use of an alternative

fuel

or raw material by a sta-

tionary source which:

1)

it was capable of accommodating

before December 21,

1976 unless such change would be prohibited under

any enforceable permit condition which was

established after that date pursuant to 40 CFR

52.2l~or

2)

is approved for use under any permit issued

pursuant to 40 CFR 52.21 or this Chapter.

f)

An increase in the hours of operation or in the pro-

duction rate,

unless such change would be prohibited

under any enforceable permit condition

which was

established after December 21,

1976 pursuant to

40 CFR 52.21 or this Chapter.

g)

Any increase

in emissions of organic material due to

the temporary shutdown of

a control device during

seasonal periods as allowed by this Chapter.

h)

Any change

in ownership at a stationary source.

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

52-393

---

8

change in method of operation at an emission source, and any

other increases and decreases in actual

emissions at the emis-

sion 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)

An increase or decrease in actual emissions is contem-

poraneous 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.

In the case of

an increase,

it must also occur after either April

24,

1979 or the date the area

is designated by United

States Environmental Protection Agency as

a

nonattainment area for the pollutant, whichever

is

more recent;

b)

An increase or decrease

in actual emissions is credit-

able:

1)

only if no other permit has been issued, and is

still

in effect when the particular change occurs,

which relied on the same increase or decrease

in

actual emissions;

2)

in the case of a shutdown of an emission source,

only to the extent that

it is being replaced

by a similar source;

and

3)

only to the extent the new and old levels differ.

c)

~ decrease in actual emissions is creditable to

the extent that:

1)

it is enforceable at and after the time that

actual construction on the particular change

begins;

2)

it has approximately the same qualitative sig-

nificance for public health and welfare as that

attributed

to the increase from the particular

change;

3)

that 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 for demonstrating

~

~Qd

---

Q

attainment on reasonable further progress in

the nonattainment area which the physical

change

will impact.

Section 203.209

significant Emissions Determination

A net emission increase

in the pollutant emitted

is significant

if the rate of emission is equal

to or in excess of the following:

a)

Carbon monoxide:

100 tons per year

(tpy)

b)

Nitrogen oxides:

40 tpy

c)

Sulfur dioxide:

40 tpy

d)

Particulate matter:

25 tpy

e)

Ozone:

40 tpy of organic material

f)

Lead:

0,6 tpy

g)

Asbestos:

0.007 tpy

h)

Beryllium:

0.0004 tpy

1)

Mercury:

0.1 tpy

j)

Vinyl chloride:

I tpy

k)

Fluorides:

3 tpy

1)

Sulfuric acid mist:

7 tpy

m)

Hydroyen sulfide

(H2s):

10 tpy

n)

Total reduced sulfur (including

H2S):

10 tpy

o)

Reduced sulfur compounds (including

H2S):

10 tpy

Section 203.210

Relaxation of a Source—Specific Limitation

Except those modifications exempted pursuant to Section 203.207,

at such time that a particular source or modification becomes a

major stationary source or major modification by virtue of a

relaxation in any enforceable limitation which establishes a

specific standard for that source to emit a pollutant, this

Subpart shall apply to the source or modification as though

construction had not yet commenced.

52-395

---

10

SUBPART

C:

REQUIREMENTS

POR

~tAJOR

STATIONARY

SOURCES

Ii’~

NONATTAINMENT ARE~AS

Section 203.301

Lowest Achievable Emission Rate

a)

For any source,

lowest achievable emission rate

(LAER)

will he the most

stringent

rate

of emissions based on

the

following:

1)

The lowest 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;

2)

The

lowest

emission

limitation which

is achieved

in practice or

is

achievable by such

a class

or category

of stationary source;

or

3)

The applicable

new

source performance standard

contained

in

Part

IX of this Chapter.

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 modifica-

tion will produce LAER at each emissions

source

at which

a significant

incr~.~c~

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 I~AER,

52-~96

---

11

Section 203.302

Maintenance

of

Reasonable

Further

Progress

and

Emission

Offsets

a)

For particulate

matter,

sulfur dioxide, nitrogen

oxides, or carbon monoxide emissions,

the owner

or operator of a new major source or major

modification shall demonstrate that the source

or modification will not interfere with reasonable

further progress by meeting one of the following

requirements:

1)

Providing

equal

or

greater

emission offsets

for

the allowable emissions from the source or the

net increase

in emissions

from the

modification,

and

demonstrating

that

actual

average

air

quality

will be improved in the nonattainment area and

that at no location will

the impact

exceed

the

significant air quality impact levels contained

in Section 203.304(d);

2)

Demonstrating that air

quality in the

nonattainment area will be improved at

every location affected by the new major

source or modification, barring the use of

dispersion enhancement techniques; or

3)

Providing in the immediate vicinity of the source

or modification actual emission offsets at a

ratio

of 1.25:1 or greater

(i.e.,

for each ton of new

allowable emissions,

there shall be at

least 1.25

tons of actual emission offsets) provided

that

stack or emission parameters do not indicate a

significant adverse effect on air quality in

accordance with Section 203.304(d),

due to

the

operation

of

the

source

or

modification.

b)

For organic material emissions,

the owner or operator

of a new major source or major modification shall

demonstrate that it does not interfere

with reasonable

further progress by providing actual emission

offsets

in excess of the allowable emissions from the new

source

or

the net increase

in

emissions from the

modification.

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 can be obtained

from stationary or fugitive sources.

b)

The emission offsets provided must be:

52-397

---

12

1)

of

a type with approximately the same quali-

tative significance for public health and wel-

fare as that attributed

to the increase

in

a

particular change;

2)

in the case of a shutdown,

it

must have occurred

since

April

24,

1979

or

the

date

the

area

is

designated by the United States Environmental

Protection Agency as

a nonattainment area for

the pollutant,

whichever

is more recent, and

the shutdown source is being replaced by

a similar new source;

and

3)

enforceable

by

permit.

c)

The baselines for deterrning emission offsets are as

follows:

1)

For particulate matter

(TSP),

sulfur dioxide

(SO

),

nitrogen oxide

(NO

) and carbon monoxide

(CO~,the applicable emishon limit contained

in

this

Chapter.

If

this

rate

is

greater

than

the uncontrolled emission rate, the baseline

shall be the uncontrolled rate.

2)

Except for organic material,

if

no emission rate

is contained

in this Chapter,

the baseline shall

be the actual emission rate.

3)

The baseline for organic material shall be the

lesser of the actual

or allowable emission rate.

d)

The location of emission sources providing the emis-

sion offsets must he

1)

for TSP, SO2,

NO

,

or

CO, these sources must be

significant cont~ihutorsto or located in the

nonattainment area affected by the new or

modified

source;

or

2)

for organic material,

these sources must be

located

within

100 miles of the new or modified

source.

If

the

applicant

can

demonstrate

using

generally accepted air quality models,

that the

effect

of

the

proposed

offsets

on

air

quality is

at least as great

as

if the source of the offsets

was within the

100 mile radius,

these offsets

shall

be acceptable.

Section 203.304

Exemptions from Emissions Offset Requirement

a)

The Agency shall allow the use of

all or some portion

52-398

---

13

of the available growth margin to satisfy Section

203.

303 if:

1)

the owner or operator can show that possible

none were reasonably available at that time, and

2)

the owner or operator agrees to accept permit

conditions on all future permits for the source

or modification designed to provide the required

emission offset at the earliest future time such

offsets become reasonably available.

b)

Section 203.302 shall

not apply to a major stationary

source or major modification if the emissions from

the source,

or the net emissions increase from the

modification would be temporary, that is, existing

for a period of time less

than two years.

c)

Section 203.302(a)

shall not apply to a major sta-

tionary source or major modification if an air quality

analysis shows

it is located in a portion of a given

nonattainment area where the air quality standards

are not being violated and it will not cause an impact

in the area in which air quality standards are

being

violated greater than the significant air quality im-

pact levels in subparagraph

(d).

Such an analysis

shall be based upon dispersion modeling and air quality

monitoring performed by the Agency or in accordance

with Agency procedures.

The date when the emission

offset requirements may be restricted to a limited

part of the nonattainment area is the date that such

analysis

is completed by the Agency or the date such

analysis is approved by the Agency, and redesignation

of the area where the major source or major modifica’.

tion is to be located is under federal review.

d)

If the emissions from a major stationary source or major

modification are demonstrated to be greater than the

following levels, exemption pursuant to subparagraph

(c)

is not available for the major stationary source or

_Averaging

Pollutant

Annual

24-Hour

8—Hour

3—Hour

SO2

1.0 ug/m3

5 ug/m3

TSP

1.0 ug/m3

5 ug/m~

NO

Co

0.5 mg/rn

2

mg/rn

---

.t4

e)

Section 203.302(a)

shall not apply to a major sta-

tionary source or major modification for particulate

matter if it will

be located in an area which meets

the following criteria:

1)

the area is an attainment area for the primary

total suspended particulate air quality standard;

2)

the area is lacking reasonably available emission

offsets;

3)

the air ‘quality of the area is dominated by agri-

cultural and related fugitive pollutant sources;

4)

the area lacks major industrial development;

and

5)

the area

is

of

a low urban population density.

Section 203.305

Compliance by Existing Sources

The owner or operator shall demonstrate that all major stationary

sources which he or she owns or operates

(or which are owned or

operated by any entity controlling or controlled by,

or under

common control with the owner ~r operator)

in Illinois are in

compliance, or on a schedule

for compliance, with all applicable

state and federal air pollution control requirements.

Section 203.306

Analysis

of Alternatives

For emission of organic material

or carbon monoxide, the owner or

operator shall demonstrate that benefits of the new major source

or major modification significantly outweigh the environmental

and soöial dosts imposed as

a result

of its location, con-

struction, or modification, based upon

an

analysis of alter-

native sites,

sizes, production processe, and environmental

control techniques for such proposed source.

SUBPART

D:

RESERVED

SUBPART E:

RESERVED

SUBPART

F:

OPERATION OF

A MAJOR STATIONARY SOURCE

OR MAJOR MODIFICATION

Section 203.601

Lowest Achievable Emission Rate Compliance

Requirement

No person shall cause or allow the operation of a new major

stationary source or major modification subject to the con-

struction requirements of Subpart

C,

except as

in compliance

with applicable LAER provisions established pursuant to

Section 203.301 for such

source or modification.

~fl

Ar.r.

---

15

Section

203.602

Emission

Offset

Maintenance

Requirement

No

person

shall

cause

or

allow

the

operation

of

a

new

major

stationary source or major modification which is required to

demonstrate

that

it

would

not

interfere

with

reasonable

further

progress, or which must include emission offsets in a demon

stration pursuant to Sections 203.302 and 203.303 without

maintaining those emission offsets or other equivalent offsets.

Section 203.603

Ambient

Monitoring Requirement

The

owner or operator of a new stationary source or major

modification shall conduct such ambient monitoring as the Agency

determines

is reasonably necessary to establish the effect of the

emissions from the source or modification on ambient air quality

in the area.

This

Order

conforms

to

the

Opinion

adopted

this

same

day.

These regulations are directed to Second Notice.

IT IS SO ORDERED.

I,

Christan

L.

Moffett,

Clerk

of

the

Illinois

Pollution

Control

Board,

hereby

certçLfy

that

the

above

Order

was

adopted

on

the

j(~*~-

day of

_____

_____

,

1983 by

a vote

of

~

I

A

Christan L. Moff~X~hClerk

Illinois Pollution Control Board

52-401