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Montana Administrative Register Notice 17-323 No. 10   05/26/2011    
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BEFORE THE BOARD OF ENVIRONMENTAL REVIEW

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 17.8.801, 17.8.804, 17.8.818, 17.8.820, 17.8.822, 17.8.825, 17.8.901, 17.8.904, and 17.8.1007 pertaining to definitions, ambient air increments, major stationary sources, source impact analysis, source information, sources impacting federal class I areas, definitions, when air quality permit required, baseline for determining credit for emissions and air quality offsets

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

(AIR QUALITY)

 

            TO:  All Concerned Persons

 

            1.  On July 7, 2011, at 2:00 p.m., or upon the conclusion of the public hearing for MAR Notice No. 17-322, the Board of Environmental Review will hold a public hearing in Room 111, Metcalf Building, 1520 East Sixth Avenue, Helena, Montana, to consider the proposed amendment of the above-stated rules.

 

            2.  The board will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice.  If you require an accommodation, contact Elois Johnson, Paralegal, no later than 5:00 p.m., June 13, 2011, to advise us of the nature of the accommodation that you need.  Please contact Elois Johnson at Department of Environmental Quality, P.O. Box 200901, Helena, Montana 59620-0901; phone (406) 444-2630; fax (406) 444-4386; or e-mail ejohnson@mt.gov.

 

            3.  The rules proposed to be amended provide as follows, stricken matter interlined, new matter underlined:

 

            17.8.801  DEFINITIONS  (1) through (2)(c) remain the same.

            (3)  "Baseline area" means any intrastate area (and every part thereof) designated as attainment or unclassifiable in 40 CFR 81.327 in which the major source or major modification establishing the minor source baseline date would construct or would have an air quality impact equal to or greater than one µg/m3 (annual average) of the pollutant for which the minor source baseline date is established, except baseline areas for PM-2.5 are designated when a major source or major modification establishing the minor source baseline date would construct or would have an air quality impact equal to or greater than 0.3 µg/m3 as an annual average for PM-2.5.

            (a) through (20)(b)(vii) remain the same.

            (21)  The following apply to the definitions of the terms "major source baseline date" and "minor source baseline date":

            (a)  "major source baseline date" means:

            (i)  in the case of particulate matter PM-10 and sulfur dioxide SO2, January 6, 1975; and

            (ii)  in the case of nitrogen dioxide NO2, February 8, 1988; and

            (iii)  in the case of PM-2.5, October 20, 2010.

            (b)  "Minor source baseline date" means the earliest date after the trigger date on which a major stationary source or a major modification subject to 40 CFR 52.21 or to regulations approved pursuant to 40 CFR 51.166 submits a complete application under the relevant regulation.  The trigger date is:

            (i)  in the case of particulate matter PM-10 and sulfur dioxide SO2, August 7, 1977; and

            (ii)  in the case of nitrogen dioxide NO2, February 8, 1988; and

            (iii)  in the case of PM-2.5, October 20, 2011.

            (c) through (26) remain the same.

            (27)  The following apply to the definition of the term "significant":

            (a)  "significant" means, in reference to a net emissions increase or the potential of a source to emit any of the following pollutants, a rate of emissions that would equal or exceed any of the following rates:

 

                                                  Pollutant and Emissions Rate

Carbon monoxide:  100 tons per year (tpy)

Nitrogen oxides:  40 tpy

Sulfur dioxide:  40 tpy

Particulate matter:     25 tpy of particulate matter emissions

                                    15 tpy of PM-10 emissions

PM-2.5:  10 tpy of direct PM-2.5 emissions, 40 tpy of SO2 emissions, or 40 tpy of NO2 emissions unless demonstrated not to be a PM-2.5 precursor

Ozone:  40 tpy of volatile organic compounds

Lead:  0.6 tpy

Fluorides:  3 tpy

Sulfuric acid mist:  7 tpy

Hydrogen sulfide (H2S):  10 tpy

Total reduced sulfur (including H2S):  10 tpy

Reduced sulfur compounds (including H2S):  10 tpy

Municipal waste combustor organics (measured as total tetra- through octa-chlorinated dibenzo-p-dioxins and dibenzofurans):  3.2 * 10-6 megagrams per year (3.5 * 10-6 tpy)

Municipal waste combustor metals (measured as particulate matter):  14 megagrams per year (15 tpy)

Municipal waste combustor acid gases (measured as sulfur dioxide and hydrogen chloride):  36 megagrams per year (40 tpy)

            (b) through (29) remain the same.

 

            AUTH:  75-2-111, 75-2-203, MCA

            IMP:  75-2-202, 75-2-203, 75-2-204, MCA

 

17.8.804  AMBIENT AIR INCREMENTS  (1)  In areas designated as Class I, II, or III, increases in pollutant concentration over the baseline concentration shall be limited to the following:

 

Pollutant

Maximum allowable increase

(micrograms per cubic meter)

CLASS I

Particulate matter:

            PM-2.5, annual arithmetic mean................................................................................ 1

            PM-2.5, 24-hr maximum............................................................................................. 2

            PM-10, annual arithmetic mean................................................................................. 4

            PM-10, 24-hr maximum.............................................................................................. 8

Sulfur dioxide:

            Annual arithmetic mean.............................................................................................. 2

            24-hr maximum............................................................................................................ 5

            3-hr maximum............................................................................................................ 25

Nitrogen dioxide:

            Annual arithmetic mean........................................................................................... 2.5

 

CLASS II

Particulate matter:

            PM-2.5, annual arithmetic mean................................................................................ 4

            PM-2.5, 24-hr maximum............................................................................................. 9

            PM-10, annual arithmetic mean............................................................................... 17

            PM-10, 24-hr maximum............................................................................................ 30

Sulfur dioxide:

            Annual arithmetic mean............................................................................................ 20

            24-hr maximum.......................................................................................................... 91

            3-hr maximum.......................................................................................................... 512

Nitrogen dioxide:

            Annual arithmetic mean............................................................................................ 25

 

CLASS III

Particulate matter:

            PM-2.5, annual arithmetic mean................................................................................ 8

            PM-2.5, 24-hr maximum........................................................................................... 18

            PM-10, annual arithmetic mean............................................................................... 34

            PM-10, 24-hr maximum............................................................................................ 60

Sulfur dioxide:

            Annual arithmetic mean............................................................................................ 40

            24-hr maximum........................................................................................................ 182

            3-hr maximum.......................................................................................................... 700

Nitrogen dioxide:

            Annual arithmetic mean............................................................................................ 50

 


            (2) remains the same.

 

            AUTH:  75-2-111, 75-2-203, MCA

            IMP:  75-2-202, 75-2-203, 75-2-204, MCA

 

            17.8.818  REVIEW OF MAJOR STATIONARY SOURCES AND MAJOR MODIFICATIONS--SOURCE APPLICABILITY AND EXEMPTIONS  (1) through (6) remain the same.

            (7)  The department may exempt a proposed major stationary source or major modification from the requirements of ARM 17.8.822, with respect to monitoring for a particular pollutant, if:

            (a)  the emissions increase of the pollutant from a new stationary source or the net emissions increase of the pollutant from a modification would cause, in any area, air quality impacts less than the following amounts:

            (i)  carbon monoxide--:  575 µg/m3, eight-hour average;

            (ii)  nitrogen dioxide--:  14 µg/m3, annual average;

            (iii)  PM-2.5:  4 µg/m3, 24-hour average;

            (iii) (iv)  particulate matter--PM-10:  10 µg/m3 PM-10, 24-hour average;

            (iv) (v)  sulfur dioxide--:  13 µg/m3, 24-hour average;

            (v) (vi)  ozone--:  no de minimus air quality level is provided for ozone.  However, any net increase of 100 tons per year or more of volatile organic compounds subject to this subchapter would be required to perform requires an ambient impact analysis, including the gathering of ambient air quality data;

            (vi) (vii)  lead--:  0.1 µg/m3, three-month average;

            (vii) (viii)  fluorides--:  0.25 µg/m3, 24-hour average;

            (viii) (ix)  total reduced sulfur--:  10 µg/m3, one-hour average;

            (ix) (x)  hydrogen sulfide--:  0.2 µg/m3, one-hour average;

            (x) (xi)  reduced sulfur compounds--:  10 µg/m3, one-hour average; or

            (b) and (c) remain the same.

 

            AUTH:  75-2-111, 75-2-203, MCA

            IMP:  75-2-202, 75-2-203, 75-2-204, MCA

 

            17.8.820  SOURCE IMPACT ANALYSIS  (1) remains the same.

            (2)  For purposes of PM-2.5, the demonstration required in (1) is made if the emissions increase from the new stationary source alone or from the modification alone would cause in all areas, air quality impacts less than the following amounts:

 

Pollutant

Averaging time

Class I area

Class II area

Class III area

PM-2.5

Annual

0.06 µg/m3

0.3 µg/m3

0.3 µg/m3

24-hour

0.07 µg/m3

1.2 µg/m3

1.2 µg/m3

 

            AUTH:  75-2-111, 75-2-203, MCA

            IMP:  75-2-202, 75-2-203, 75-2-204, MCA

 

            17.8.822  AIR QUALITY ANALYSIS  (1) through (8) remain the same.

            (9)  Nitrogen oxides are presumed to be precursors to PM-2.5 in an area, unless the applicant demonstrates that emissions of nitrogen oxides from sources in the area are not a significant contributor to that area's ambient PM-2.5 concentrations.

            (10)  Volatile organic compounds and ammonia are presumed not to be precursors to PM-2.5 unless emissions of volatile organic compounds or ammonia from sources in the area are a significant contributor to that area's ambient PM-2.5 concentrations.

            (11)  PM-2.5 emissions and PM-10 emissions include gaseous emissions from a source or activity that condense to form particulate matter at ambient temperatures.

            (12)  Applicability determinations for PM-2.5 made prior to January 1, 2011, without accounting for condensable particulate matter, are not subject to (11).

 

            AUTH:  75-2-111, 75-2-203, MCA

            IMP:  75-2-202, 75-2-203, 75-2-204, MCA

 

            17.8.825  SOURCES IMPACTING FEDERAL CLASS I AREAS--ADDITIONAL REQUIREMENTS  (1) through (3) remain the same.

            (4)  The owner or operator of a proposed source or modification may demonstrate to the federal land manager that the emissions from such source would have no adverse impact on the air quality-related values of such lands (including visibility), notwithstanding that the change in air quality resulting from emissions from such source or modification would cause or contribute to concentrations which would exceed the maximum allowable increases for a Class I area.  If the federal land manager concurs with such demonstration and so certifies to the department, the department may, provided that applicable requirements are otherwise met, issue the permit with such emission limitations as may be necessary to assure that emissions of sulfur dioxide, particulate matter, and nitrogen oxides would not exceed the following maximum allowable increases over the minor source baseline concentration for such pollutants:

 

Pollutant

Maximum allowable increase

(micrograms per cubic meter)

PM-2.5

            annual arithmetic mean............................................................................................... 4

            24-hr maximum............................................................................................................ 9

Particulate matter:

            PM-10, annual arithmetic mean............................................................................... 17

            PM-10, 24-hr maximum............................................................................................ 30

Sulfur dioxide:

            annual arithmetic mean............................................................................................. 20

            24-hr maximum.......................................................................................................... 91

            3-hr maximum.......................................................................................................... 325

Nitrogen dioxide:

            annual arithmetic mean............................................................................................. 25

 


            (5) through (6) remain the same.

 

            AUTH:  75-2-111, 75-2-203, MCA

            IMP:  75-2-202, 75-2-203, 75-2-204, MCA

 

            17.8.901  DEFINITIONS  (1) through (15) remain the same.

            (16)  "Precursor" means:

            (a)  volatile organic compounds and nitrogen oxides in ozone nonattainment areas; and

            (b)  sulfur dioxide in PM-2.5 nonattainment areas.

            (16) and (17) remain the same, but are renumbered (17) and (18).

            (18) (19)  "Significant" means, in reference to a net emissions increase or the potential of a source to emit any of the following pollutants, a rate of emissions that would equal or exceed any of the following rates:

 

                                                   Pollutant and Emission Rate

            Carbon monoxide:                      100 tons per year (tpy)

            Nitrogen oxides:                          40 tpy

            Sulfur dioxide:                              40 tpy

            Particulate matter:                       25 tpy of particulate matter emissions or

            or                                                   15 tpy of PM-10 emissions

            PM-2.5                                         10 tpy of direct PM-2.5 emissions, 40 tpy of sulfur dioxide emissions, or 40 tpy of nitrogen oxide emissions unless demonstrated not to be a PM-2.5 precursor

            Lead:                                            0.6 tpy

 

            (19) and (20) remain the same, but are renumbered (20) and (21).

 

            AUTH:  75-2-111, 75-2-203, MCA

            IMP:  75-2-202, 75-2-203, 75-2-204, MCA

 

            17.8.904  WHEN MONTANA AIR QUALITY PERMIT REQUIRED  (1)  Any new major stationary source or major modification which would locate anywhere in an area designated as nonattainment for a national ambient air quality standard under 40 CFR 81.327 and which is major for the pollutant for which the area is designated nonattainment, shall, prior to construction, obtain from the department a Montana air quality permit in accordance with subchapter 7 and all requirements contained in this subchapter if applicable.  A major stationary source or major modification exempted from the requirements of subchapter 7 under ARM 17.8.744 and 17.8.745 which would locate anywhere in an area designated as nonattainment for a national ambient air quality standard under 40 CFR 81.327 and which is major for the pollutant for which the area is designated nonattainment, shall, prior to construction, still be required to obtain a Montana air quality permit and comply with the requirements of ARM 17.8.748, 17.8.749, 17.8.756, 17.8.759, and 17.8.760 and with all applicable requirements of this subchapter.

            (2) remains the same.

            (3)  Sulfur dioxide is a precursor to PM-2.5 in a PM-2.5 nonattainment area.

            (4)  Nitrogen oxides are presumed to be precursors to PM-2.5 in a PM-2.5 nonattainment area, unless the applicant demonstrates that emissions of nitrogen oxides from sources in the PM-2.5 nonattainment area are not a significant contributor to that area's ambient PM-2.5 concentrations.

            (5)  Volatile organic compounds and ammonia are presumed not to be precursors to PM-2.5 in a PM-2.5 nonattainment area unless emissions of volatile organic compounds or ammonia from sources in the area are a significant contributor to that area's ambient PM-2.5 concentrations.

            (6)  PM-2.5 emissions and PM-10 emissions shall include gaseous emissions from a source or activity that condense to form particulate matter at ambient temperatures.

            (7)  Applicability determinations made prior to January 1, 2011, without accounting for condensable particulate matter, are not subject to (5).

 

            AUTH:  75-2-111, 75-2-203, MCA

            IMP:  75-2-202, 75-2-203, 75-2-204, MCA

 

            17.8.1007  BASELINE FOR DETERMINING CREDIT FOR EMISSIONS AND AIR QUALITY OFFSETS  (1)  For the purposes of this subchapter, the following requirements shall apply:

            (a)  tThe requirements of ARM 17.8.906, except that 17.8.906(7) through (9) are not applicable do not apply to offsets required under this subchapter;

            (b)  eEmission offsets must be reductions in actual emissions for the same pollutant obtained from the same source or other sources which are located in the same general area of the proposed major stationary source or modification, and that contribute to or would contribute to the violation of the national ambient air quality standard;

            (c)  In meeting the emissions offset requirements in this subchapter, emissions offsets for direct PM-2.5 emissions or emissions of precursors of PM-2.5 may be satisfied by offsetting reductions in direct PM-2.5 emissions or emissions of any precursor;

            (c) (d)  iIn the case of emission offsets involving volatile organic compounds and oxides of nitrogen, offsets will generally be acceptable if they are obtained from within the areas specified in (1)(b).  If the proposed offsets would be from sources located at considerable distances from the new source, the department shall increase the ratio of the required offsets and require a showing by the applicant that nearby offsets were investigated and reasonable alternatives were not available;

            (d) (e)  iIn the case of emission offsets involving sulfur dioxide, particulates, and carbon monoxide, areawide mass emission offsets are not acceptable, and the applicant shall perform atmospheric simulation modeling to ensure that emission offsets provide a positive net air quality benefit.  The department may exempt the applicant from the atmospheric simulation modeling requirement if the emission offsets provide a positive net air quality benefit, are obtained from an existing source on the same premises or in the immediate vicinity of the new source, and the pollutants disperse from substantially the same effective stack height; and

            (e) (f)  nNo emissions credit shall be allowed for replacing one hydrocarbon compound with another of lesser reactivity, except for those compounds listed in Table 1 of EPA's "Recommended Policy on Control of Volatile Organic Compounds" (42 FR 35314, July 8, 1977).

 

            AUTH:  75-2-111, 75-2-203, MCA

            IMP: 75-2-202, 75-2-203, 75-2-204, MCA

 

            REASON:  Pursuant to the federal Clean Air Act, areas within a state are designated as nonattainment, attainment, or unclassifiable for compliance with the National Ambient Air Quality Standards (NAAQS).  Major stationary sources and major modifications that would be located in nonattainment areas are subject to nonattainment area major new source review (NSR) requirements, and major sources and major modifications that would be located in attainment or unclassifiable areas are subject to Prevention of Significant Deterioration (PSD) NSR requirements.

            In 1997, the U.S. Environmental Protection Agency (EPA) promulgated NAAQS for fine particulate matter, known as PM-2.5, which includes particles with an aerodynamic diameter less than or equal to 2.5 micrometers.  EPA revised the NAAQs in 2006.

            On May 16, 2008, EPA promulgated nonattainment area and PSD NSR regulations establishing:  PM-2.5 significant emission rates (SERs) that trigger NSR; requirements for consideration of precursors to PM-2.5 in determining the significance of PM-2.5 emissions; and nonattainment area offset ratios for PM-2.5 emissions.  73 Fed. Reg. 28321.  On October 20, 2010, EPA promulgated additional PM-2.5 PSD regulations, including:  maximum allowable increases in ambient concentrations (increments) applicable to PSD Class I, II, and III areas; requirements for determining baseline areas and baseline dates for applicability of PSD increments; PSD significant impact levels (SILs), used to determine whether the ambient impacts of a proposed new source or modification would be significant enough to require modeling of cumulative emissions from the source and existing sources; and PSD significant monitoring concentrations (SMCs), used to determine whether it is necessary for the applicant to conduct pre-application monitoring of background ambient concentrations.  75 Fed. Reg. 64864.  The federal requirements for state nonattainment area NSR provisions related to PM-2.5 are codified at 40 CFR § 51.165(a)(1)(x)(A), (C) and (D) and 40 CFR § 51.165(a)(11), and the federal requirements for state PSD provisions are found at 40 CFR

§ 51.166(b)(14), (15) and (23), (k), and (p).

            The board is proposing in this rulemaking to adopt these federal preconstruction review requirements.  In order for Montana to retain its primacy to regulate construction of major air pollutant emission sources in the state, the state is required to adopt at least the minimum federal standards applicable to preconstruction review applicable to emissions of a NAAQS pollutant.  Also, adding nonattainment area and PSD preconstruction review requirements for PM-2.5 is necessary in order for the department to ensure that PM-2.5 offsets are properly obtained for emissions from major stationary sources and major modifications that would be located in PM-2.5 nonattainment areas and that PM-2.5 emissions from any proposed new major stationary source or major modification would not cause or contribute to air pollution in excess of applicable requirements.

            The board also is proposing minor editorial revisions that are not intended to have any substantive effect.

 

            4.  Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing.  Written data, views, or arguments may also be submitted to Elois Johnson, Paralegal, Department of Environmental Quality, 1520 E. Sixth Avenue, P.O. Box 200901, Helena, Montana 59620-0901; faxed to (406) 444-4386; or e-mailed to ejohnson@mt.gov, no later than 5:00 p.m., July 8, 2011.  To be guaranteed consideration, mailed comments must be postmarked on or before that date.

 

            5.  Katherine Orr, attorney for the board, or another attorney for the Agency Legal Services Bureau, has been designated to preside over and conduct the hearing.

 

            6.  The board maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding:  air quality; hazardous waste/waste oil; asbestos control; water/wastewater treatment plant operator certification; solid waste; junk vehicles; infectious waste; public water supply; public sewage systems regulation; hard rock (metal) mine reclamation; major facility siting; opencut mine reclamation; strip mine reclamation; subdivisions; renewable energy grants/loans; wastewater treatment or safe drinking water revolving grants and loans; water quality; CECRA; underground/above ground storage tanks; MEPA; or general procedural rules other than MEPA.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  Such written request may be mailed or delivered to Elois Johnson, Paralegal, Department of Environmental Quality, 1520 E. Sixth Ave., P.O. Box 200901, Helena, Montana 59620-0901, faxed to the office at (406) 444-4386, e-mailed to Elois Johnson at ejohnson@mt.gov, or may be made by completing a request form at any rules hearing held by the board.

 

            7.  The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

 

 

 

 

Reviewed by:                                     BOARD OF ENVIRONMENTAL REVIEW

 

 

 

/s/ David Rusoff                                   BY:  /s/ Joseph W. Russell                                  

DAVID RUSOFF                                           JOSEPH W. RUSSELL, M.P.H.,

Rule Reviewer                                               Chairman

 

            Certified to the Secretary of State, May 16, 2011.

 

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