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PA Bulletin, Doc. No. 03-2392

PROPOSED RULEMAKING

DEPARTMENT OF ENVIRONMENTAL PROTECTION

[25 PA. CODE CHS. 121, 129 AND 145]

Small Sources of NOx, Cement Kilns and Large Internal Combustion Engines

[33 Pa.B. 6226]

   The Department of Environmental Protection (Department) is soliciting comments on changes it recommends to be made to the small sources of nitrogen oxide (NOx), cement kilns and large internal combustion (IC) engines proposed rulemaking published at 32 Pa.B. 5178 (October 19, 2002).

   The draft final rulemaking establishes in 25 Pa. Code Chapter 129 (relating to standards for sources) additional ozone season NOx requirements for certain boilers, turbines and stationary IC units that are small sources of NOx in Bucks, Chester, Delaware, Montgomery and Philadelphia Counties to achieve an estimated 3-ton per day reduction that the United States Environmental Protection Agency (EPA) determined is necessary to support the ozone attainment demonstration for Philadelphia. The proposed rulemaking also establishes in 25 Pa. Code Chapter 145 (relating to interstate pollution transport reduction) ozone season NOx emission limits for large stationary IC engines and Portland cement kilns in this Commonwealth to satisfy the Federal NOx State Implementation Plan (SIP) call. The NOx SIP call was issued in 1998, requiring 22 states that contribute to ozone nonattainment in the northeast to regulate NOx sources to meet NOx budgets set by the EPA. The large IC engine and cement kiln portion of the proposed rulemaking was initially proposed March 19, 1999, and never finalized. The current proposal was adopted by the Environmental Quality Board on September 17, 2002.

A.  Summary of the Advance Notice of Final Rulemaking Changes

   In response to comments received during the official public comment period on the proposed rulemaking and following the Department's review of other related information, the Department has prepared a draft final rulemaking for public comment. The draft final rulemaking contains significant changes in several areas. These changes include:

   *  The proposed rulemaking provided the opportunity for affected unit operators to meet the emission limits by averaging with other units; however, commentators requested that specific methodologies be provided along with the option to utilize NOx allowances. The draft final rulemaking provides a simplified and specific compliance mechanism that incorporates both averaging and allowance surrender as compliance options.

   *  The new provisions set a baseline of allowable emissions for each type of unit. An operator is accountable for any emissions from the units above these baselines. An operator may average NOx emissions among the owner's affected units, install controls for one or more units or not control at all, in which case the operator may purchase or utilize NOx allowances to cover any excess emissions.

   *  Because the provisions expand the opportunity to average across different types of units and among facilities, the optional emission rate limits have been eliminated. The same overall level of emission reductions is expected.

   *  The emergency unit exemptions have been eliminated. Emissions from the routine maintenance testing of standby units generally do not exceed the threshold amount and will remain unaffected.

   *  Emission limits in 25 Pa. Code Chapter 145 for lean burn and spark ignited engines are increased from 1.5 to 3.0 grams per Bhp/hr to reflect anticipated changes to the Federal SIP call rules that were remanded and are due for publication by the EPA. For similar technical reasons, the limits in 25 Pa. Code Chapter 129 for these types of engines were also revised. The baseline for cement kilns was set at a level that, in conjunction with the current individual facility emission limits contained in the SIP, achieves the level of emission control required by the SIP call.

   *  A new compliance option has been added to 25 Pa. Code Chapter 129 to encourage energy production from zero emission renewable energy sources. Owners and operators of affected units may install and operate renewable energy sources to generate NOx credits or may acquire and use credits generated by other sources. Renewable energy production reduces some NOx emitting power generation. However, under the Department's existing NOx Budget Trading Program (program), renewable energy production will not result in actual, surplus and creditable emission reductions unless NOx allowances are also retired. Therefore, the draft final rulemaking provides for the retirement of a matching quantity of NOx allowances allocated in the new source set aside provision (in 25 Pa. Code § 145.42(d) (relating to NOx allowance allocations)) of the existing program.

   *  Additional emission measurement options were added to 25 Pa. Code Chapters 129 and 145 to provide additional cost-effective alternatives.

   While there is no legal requirement to provide an opportunity to comment upon the Department's recommendations for final rulemaking, the Department believes further discussion would serve the public interest in this instance.

B.  Contact Persons

   For further information or to request a copy of the draft final rulemaking, contact J. Wick Havens, Chief, Division of Air Resource Management, Bureau of Air Quality, 12th Floor, Rachel Carson State Office Building, P. O. Box 8468, Harrisburg, PA 17105-8468, (717) 787-9495, jhavens@state.pa.us; or Kristen M. Campfield, Assistant Counsel, Bureau of Regulatory Counsel, 9th Floor, Rachel Carson State Office Building, P. O. Box 8464, Harrisburg, PA 17105-8464, (717) 787-7060. Persons with a disability may use the AT&T Relay Service, (800) 654-5984 (TDD users) or (800) 654-5988 (voice users). The draft final rulemaking is available on the Department's website (www.dep.state.pa.us).

   Written or electronic comments should be sent to J. Wick Havens at the previous address. If the sender does not receive an acknowledgement of electronic comments within 2 working days, the comment should be resubmitted to assure receipt. Comments must be received by January 19, 2004. A subject heading of the proposal and a return name and address must be included in each letter or transmission. Comments will not be accepted by facsimile or voice mail.

KATHLEEN A. MCGINTY,   
Secretary

[Pa.B. Doc. No. 03-2392. Filed for public inspection December 19, 2003, 9:00 a.m.]



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