DCB Comments on Latest Draft Changes to OAR 340-224 and OAR 340-225 with DEQ Responses
OAR 340-224
Comment: The new language in 0010(2) which defines the sources that are subject to State New Source Review doesn’t seem to cover modifications to existing sources. Specifically, new subsections (2)(b) and (2)(c) only require an increase in a regulated pollutant PSEL and not that there is an increase resulting from a physical change or change in the method of operation.
Response: Since your original review, OAR 340-224-0010(1) and (2) were changed in an effort to clarify that certain actions on the part of an owner or operator trigger NSR, and the requirements that must be met apply to the owner or operator, as follows:
(1) The owner or operator of a source undertaking one of the following actions must comply with the Major New Source Review requirements of OAR 340-224-0010 through 340-224-0070 for such actions prior to construction or operation:
(a) Construction of a new federal major source;
(b) Major modification at an existing federal major source; or
(c) Major modification at an existing source that will become a federal major source because a regulated pollutant PSEL is increased to the federal major source level or more.
(2) The owner or operator of a source that is undertaking an action that is not subject to Major NSR under section (1) and is one of the actions identified in subsections (a), (b), or (c) must comply with the State New Source Review requirements of OAR 340-224-0010 through 340-224-0038 and 340-224-0245 through 340-224-0270 for such action prior to construction or operation. State NSR actions are categorized as Type A State NSR actions or Type B State NSR actions as defined in OAR 340 division 200 for netting basis purposes.
(a) Construction of a new source that has emissions of a regulated pollutant equal to or greater than the SER and is not a federal major source;
(b) Increasing a regulated pollutant PSEL to an amount that is equal to or greater than the SER at an existing source that is not a federal major source; or
(c) Increasing a regulated pollutant PSEL to an amount that is equal to or greater than the SER at a federal major source where the increase is not the result of a major modification.
OAR 340-224-0010(2)(b) applies to any change at an existing source that would increase the PSEL, either from use of existing capacity or from physical changes or changes in the method of operation. The State NSR rules contain different requirements for sources that increase emissions as a result of a major modification or as the result of the use of existing capacity Increases due to a major modification are addressed within each State NSR section; see rules 340-224-0245 through 0260, section 1 or 2 within each. BACT applies if there is a major modification.
OAR 340-224-0010(2)(c) applies to federal major sources that increase their PSEL based on the use of existing capacity. This is the old OAR 340-222-0041(3)(b).
Comment: The revision to subsection 0010(3) doesn’t work for attainment and unclassifiable areas where PSD applies to non-criteria pollutants for which areas are not designated. PSD does not apply on a pollutant by pollutant basis but rather it applies to all regulated pollutants with the narrow exception of regulated pollutants for which the area is designated nonattainment.
Response: OAR 340-224-0010(3) was changed to the following and the second sentence was moved into section (4) to address the comment:
(3) The owner or operator of a source subject to section (1) or (2) must apply this division based on the type of designated area where the source is located for each regulated pollutant, taking into consideration that every location in the state carries an area designation for each criteria pollutant and the entire state is treated as an unclassified area for regulated pollutants that are not criteria pollutants.
(4) Where this division requires the owner or operator of a source to conduct analysis under or comply with a rule in OAR 340 division 225, the owner or operator must complete such work in compliance with OAR 340-225-0030 and 340-225-0040.
Comment: The changes to the applicability language for sustainment areas (0045) and maintenance areas (0060) won’t work if the areas aren’t also designated as attainment or unclassifiable areas for the sustainment and maintenance pollutants, respectively. However, we understand that these designations are intended to be mutually exclusive so an area would not have two different designations under ODEQ’s rules. Under the Federal Clean Air Act, ODEQ’s designation of a sustainment area or maintenance area can’t change the federal major source program that applies to those areas – the PSD program. The new applicability language that says that Oregon’s PSD program (0070) only applies to the sustainment or maintenance pollutant would limit the PSD program to only that pollutant instead of all regulated NSR pollutants as required. The applicability provisions in these two sections really need to say that the source must meet 0070 and, for the sustainment (maintenance) pollutant, the following additional requirements.
Response: OAR 340-224-0070 has been changed to the following to address the comment on applicability for OAR 340-224-0045 and 340-224-0060:
340-224-0070
Prevention of Significant Deterioration Requirements for Sources in Attainment or Unclassified Areas
Within a designated attainment or unclassified area, and when referred to this rule by other rules in this division, a source that is subject to Major NSR under OAR 340-224-0010 for any regulated pollutant, other than nonattainment pollutants and reattainment pollutants, must meet the requirements listed below for each such pollutant:…
340-224-0045
Requirements for Sources in Sustainment Areas
Within a designated sustainment area, a source subject to Major NSR under OAR 340-224-0010 must meet the requirements listed below for each sustainment pollutant:
(1) OAR 340-224-0070; and
(2) Demonstrate a net air quality benefit under OAR 340-224-0510 and 340-224-0520 for ozone sustainment areas or under OAR 340-224-0510 and 340-224-0530(4) for non-ozone sustainment areas, whichever is applicable, unless the source can demonstrate that the impacts are less than the significant impact levels at all receptors within the sustainment area.
340-224-0060
Requirements for Sources in Maintenance Areas
Within a designated maintenance area, a source subject to Major NSR under OAR 340-224-0010 must meet the requirements listed below for each maintenance pollutant:
(1) OAR 340-224-0070; and…
Comment: The change to the language in 0210(3) completely changes the meaning of this provision which was to address the situation where a project is modified after the permit for it has been issued. This provision should be revised to make it consistent with the same provision in the Federal Major NSR rules (0030(4)).
Response: OAR 340-224-0210 has been eliminated and OAR 340-224-0030 applies to both Major NSR and State NSR.
Comment: In the introductory sentence to 0245 an “a” needs to be added before the word “source.”
Response: The change has been made.
Comment: It is not clear why 0245(2) begins with the phrase “If the owner or operator complied with subsection (1)(b).” Should it not simply say that if the increase is a major modification, then BACT must be applied?
Response: OAR 340-224-0245 has been changed to the following:
340-224-0245
Requirements for Sources in Sustainment Areas
Within a designated sustainment area, a source subject to State NSR under OAR 340-224-0010 must meet the following requirements for each sustainment pollutant:
(1) Air Quality Protection:
(a) Air Quality Analysis: The owner or operator must comply with OAR 340-225-0050(1) and (2) and OAR 340-225-0060 for each regulated pollutant for which emissions will exceed the netting basis by the SER or more due to the proposed source or modification. For increases of direct PM2.5 or PM2.5 precursors equal to or greater than the SER, the owner or operator must provide an analysis of PM2.5 air quality impacts based on all increases of direct PM2.5 and PM2.5 precursors; or
(b) Net Air Quality Benefit: The owner or operator must demonstrate net air quality benefit under OAR 340-224-0510 and 340-224-0520 for ozone areas and OAR 340-224-0510 and 340-224-0530(4) and (5) for non-ozone areas, whichever is applicable.
(2) If the owner or operator complied with subsection (1)(b) and the increase in emissions is the result of a major modification, then the owner or operator must apply BACT under OAR 340-224-0070(2).
Conceptually, a sustainment area is an attainment area that has air quality problems but is not yet designated nonattainment. In sustainment areas for State NSR, DEQ wants to give sources the option of doing the air quality analysis in subsection (1)(a) or show Net Air Quality Benefit in subsection (1)(b). Since BACT is currently not required for non-federal major sources in attainment areas, DEQ did not want to make it mandatory in sustainment areas either. If the source can meet the NAAQS and the increment, then BACT would not be required. If the source cannot meet the NAAQS and increment because the background concentration in the sustainment area is high, then the source must show Net Air Quality Benefit and install BACT.
OAR 340-225
Comment: Paragraph (2)(d) in 0020 Definitions needs to have the word “year” inserted between “calendar” and “2006.”
Response: The change has been made.
Comment: Paragraph (3) in 0020 Definitions needs to have the word “calendar” inserted before the second “year.”
Response: The change has been made.
Comment: The definitions of “Competing PSD increment consuming source impacts” and “Range of influence formula” need to be revised back to having a separate approach for analyses of impacts on Class I areas. The concept of a significant concentration gradient in the vicinity of the proposed source or modification is not relevant when defining the modeling domain for a Class I PSD increment analysis.
Response: The change has been made.
(10) "Range of influence formula or “ROI formula" means the calculation of the distance in kilometers from the source impact area of the new or modified source to other emission sources that could impact that area. If there is no source impact area, the distance is calculated from the new or modified source. Any location that is closer to the source than the ROI may be considered to be “within the range of influence” of the source. The ROI formula is as follows:
(a) For PSD Class II and Class III areas, the Range of Influence formula of a competing source (in kilometers) is defined by:
(A) ROI (km) = Q (tons/year) / K (tons/year km).
(B) Definition of factors used in paragraph (a):
(i) Maximum ROI is 50 km.
(ii) Q is the emission rate of the potential competing source in tons per year.
(iii) K (tons/year km) is a regulated pollutant specific constant as follows:
(I) For PM2.5, PM10, SOx and NOx, K = 5;
(II) For CO, K = 40; and
(III) For lead, K = 0.15.
(b) For PSD Class I areas, the Range of Influence formula of a competing source includes emissions from all sources that occur within the modeling domain of the source being evaluated. The Department determines the modeling domain on a case-by-case basis.
Comment: Regarding the change to the definition of “Source impact area” I need to check with the modelers to see if we are allowing something other than a circular area for purposes of defining the modeling region.
Response: DEQ will wait for EPA’s response on allowing something other than a circular area for purposes of defining the modeling region.
Comment: In 0060, I don’t see a provision that says what is required if subsection (2)(c) is not met. Both subsection (2)(b) and subsection (2)(d) say that they apply if the requirements of subsection (2)(a) are not met. The rule needs to include a provision that says what is required if the single source impact analysis test in (2)(c) is not met.
Response: OAR 340-225-0060(2) was changed to the following:
(2) On or after January 1, 2003, the owner or operator of a source must meet the following requirements:
(a) For each regulated pollutant, a single source impact analysis is sufficient to show compliance with PSD increments if modeled impacts from emission increases equal to or greater than a SER above the netting basis due to the proposed source or modification being evaluated are demonstrated to be less than the Class I significant impact levels specified in OAR 340-200-0020. If this requirement is not satisfied, the owner or operator must complete a competing source analysis to demonstrate that the increased source impacts above baseline concentration plus competing PSD increment consuming source impacts are less than the PSD Class I increments for all averaging times.
(b) For each regulated pollutant, a single source impact analysis is sufficient to show compliance with AAQS if modeled impacts from emission increases equal to or greater than a SER above the netting basis due to the proposed source or modification being evaluated are demonstrated to be less than the Class I significant impact levels specified in OAR 340-200-0020. If this requirement is not satisfied, the owner or operator must complete a competing source analysis to demonstrate compliance with the AAQS by showing that its total modeled impacts plus total modeled competing source impacts plus general background concentrations are less than the AAQS for all averaging times.
The previous subsections (a) and (b) were combined into subsection (a) and a provision that says what is required if the single source impact analysis test is not met has been added in the old (2)(c), that is now (2)(b),
Comment: The reference to the significant impact levels in 0060(2)(c) should be to the Class II SILs since this provisions applies to AAQS and not increments. Of course, ODEQ can be more stringent and require that the impact be less than the Class I SILs.
Response: OAR 340-225-0060 contains the requirements for demonstrating compliance with standards and increments in PSD Class I areas. Since the analysis is for Class I areas, DEQ thinks the existing language for a single source impact analysis that modeled impacts be less than the Class II significant impact levels is incorrect and is therefore changing it to the Class I SIL.
340-225-0060
Requirements for Demonstrating Compliance with Standards and Increments in PSD Class I Areas
For determining compliance with AAQS and PSD increments in PSD Class I areas, the following methods must be used: