[Federal Register Volume 60, Number 190 (Monday, October 2, 1995)]
[Proposed Rules]
[Pages 51379-51382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24451]



-----------------------------------------------------------------------


ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[Region II Docket No. 145; NJ16-1-6470, FRL-5309-3]


Approval and Promulgation of Implementation Plans; Reasonably 
Available Control Technology for Oxides of Nitrogen for the State of 
New Jersey

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The EPA proposes approval of revisions to the State 
Implementation Plan (SIP) for ozone submitted by the State of New 
Jersey. This portion of the implementation plan was submitted by the 
State to satisfy Clean Air Act (the Act) requirements for adoption of 
rules for the application of reasonably available control technology 
(RACT) for oxides of nitrogen (NOX) in the entire State. The Act 
requires implementation of NOX RACT at major stationary sources of 
NOX emissions in the State of New Jersey by May 31, 1995.

DATES: Comments must be received on or before November 1, 1995.

ADDRESSES: All comments should be addressed to: William S. Baker, 
Chief, Air Programs Branch, Environmental Protection Agency, Region II 
Office, 290 Broadway, Twentieth Floor, New York, New York 10007-1866.
    Copies of the state submittal and other information are available 
at the following addresses for inspection during normal business hours:
    Environmental Protection Agency, Region II Office, Air Programs 
Branch, 290 Broadway, Twentieth floor, New York, New York 10007-1866.
    New Jersey Department of Environmental Protection, Office of Air 
Quality Management, Bureau of Air Quality Planning, 401 East State 
Street, CN418, Trenton, New Jersey 08625.

FOR FURTHER INFORMATION CONTACT: Ted Gardella, Air Programs Branch, 
Environmental Protection Agency, 290 Broadway, Twentieth floor, New 
York, New York 10007-1866, (212) 637-4249.

SUPPLEMENTARY INFORMATION:

I. Background

    The air quality planning requirements for the reduction of NOX 
emissions through RACT are set out in Section 182(f) of the Act. 
Section 182(f) requirements are described by EPA in a notice, ``State 
Implementation Plans; Nitrogen Oxides Supplement to the General 
Preamble; Clean Air Act Amendments of 1990 Implementation of Title I; 
Proposed Rule,'' published November 25, 1992 (57 FR 55620). The 
November 25, 1992 notice should be referred to for detailed information 
on the NOX requirements. Additional guidance memoranda which have 
been released subsequent to the NOX Supplement should also be 
referred to.
    The EPA has defined RACT as the lowest emission limitation that a 
particular source is capable of meeting by the application of control 
technology that is reasonably available considering technological and 
economic feasibility (44 FR 53762; September 17, 1979).
    Section 182(f) of the Act requires states within moderate or above 
ozone nonattainment areas or the ozone transport region to apply the 
same requirements to major stationary sources of NOX (``major'' as 
defined in Section 302 and Section 182(c), (d), and (e)) as are applied 
to major stationary sources of volatile organic compounds (VOCs). For 
more information on what constitutes a major source, see Section 2 of 
the NOX Supplement to the General Preamble.
    Section 182(b)(2) requires submittal of RACT rules for major 
stationary sources of VOC emissions (not covered by a pre-enactment 
control technique guidelines (CTG) document or a post-enactment CTG 
document) by November 15, 1992. There were no NOX CTGs issued 
before enactment and EPA has not issued a CTG document for any NOX 
sources since enactment. States, in their RACT rules, are expected to 
require final installation of the actual NOX controls by May 31, 
1995 from those sources for which installation by that date is 
practicable.
    States within the Northeast ozone transport region established by 
section 184(a) should have revised their SIPs to include the RACT 
measures by November 15, 1992. Because states in a transport region are 
generally subject to at least the moderate area requirements, EPA 
believes that the schedule for implementing these RACT rules in the 
ozone transport region should be consistent with the requirements of 
Section 182(b)(2) and will be expected to require final installation of 
the actual NOX controls by May 31, 1995 on those sources for which 
installation by that date is practicable. Based on Section 182(f), New 
Jersey is required to apply the NOX RACT requirements Statewide.

II. State Submittal

    On November 15, 1993 New Jersey submitted to EPA as a revision to 
the SIP, Subchapter 19, ``Control and Prohibition of Air Pollution From 
Oxides of Nitrogen'' of Chapter 27, Title 7 of the New Jersey 
Administrative Code with an effective date of December 20, 1993. 
Subchapter 19 contains the NOX RACT requirements for the State. 
New Jersey held public hearings on Subchapter 19 in March 1993 and it 
was adopted on November 15, 1993. EPA reviewed the plan to determine 
completeness in accordance with criteria set out at 40 CFR 51. The 
submittal was found to be administratively and technically complete, 
and a letter dated December 29, 1993 was forwarded to the Commissioner 
indicating the completeness of the submittal and the next steps to be 
taken in the review process.
    It is important to note that New Jersey is a member of the 
Northeast States for Coordinated Air Use Management (NESCAUM) and the 
Ozone Transport Commission (OTC), which seek to develop a consistent 
NOX reduction strategy for ozone attainment in the Northeast. New 
Jersey's NOX RACT plan is consistent with the recommendations of 
these groups, which are generally more stringent than EPA requirements.
    For a more detailed discussion of New Jersey's submittal and EPA's 
proposed action on the submittal, the reader should refer to the 
Technical Support Document developed as part of this proposed action 
and found at the previously mentioned addresses.

[[Page 51380]]


III. Analysis of New Jersey's SIP Submission

A. RACT Determination and Implementation

1. Utility Boilers
    Section 19.4 of Subchapter 19 specifies the emission limitations 
for utility boilers and three alternative ways for utility boilers to 
comply: averaging, fuel switching, and repowering. Maximum allowable 
NOX emission rates, expressed as pounds NOX per million BTUs 
(lb. NOX/MM BTU), range from 0.2 to 1.0 depending on the type of 
boiler and the type of fuel. Section 19.4 also requires utility boilers 
to install a continuous emission monitoring system. The emission limits 
specified by New Jersey are consistent with those recommended by the 
EPA in the NOX Supplement. The emission limits are enforceable 
through appropriate averaging times, test methods, compliance schedules 
and reporting and recordkeeping requirements.
    New Jersey's provisions allow utilities to comply with the NOX 
RACT requirements by using an averaging plan throughout the State 
including areas with different nonattainment classifications. This 
alternative is further reviewed in Part III.A.3. of this document.
    New Jersey's fuel switching provision is consistent with EPA 
guidance which basically states that annual emissions of NOX must 
be less than or equal to annual emissions that would result from 
continuous compliance with presumptive NOX RACT.
    New Jersey's repowering provision meets all of the requirements in 
EPA's guidance. Repowering is simply the replacement of the steam 
generator in a steam generating unit. New Jersey's provision requires 
interim RACT to begin by May 1, 1995 and for the repower to be 
completed by May 15, 1999. New Jersey defines interim RACT as annual 
adjustments to the combustion process.
2. Stationary Gas Turbines
    Section 19.5 specifies the maximum allowable NOX emission 
rates (lb. NOX/MM BTU) ranging from 0.15 to 0.4 depending on the 
type of turbine and the type of fuel. Alternatively, compliance can be 
met through an averaging plan or where it can be shown that there is an 
insufficient supply of water to the turbine and that there is no 
commercially available dry low-NOX combustor suitable. In this 
latter case, the owner/operator must obtain approval of this waiver 
from New Jersey in accordance with Section 19.14 and in addition, the 
combustion process of the turbine must be annually adjusted.
    New Jersey's emission limitations are consistent with EPA's general 
guidance. The emission limits are enforceable through appropriate 
averaging times, test methods, compliance schedules and reporting and 
recordkeeping requirements.
3. Emissions Averaging
    Section 19.6 allows sources to comply with the regulation with an 
averaging plan. Any person owning or operating at least two items of 
equipment or source operations may request the Department's approval of 
an averaging plan. The person developing an averaging plan must 
identify the equipment and source operations to be included in the 
plan. The averaging units included in the plan may be located at one or 
more sites throughout the State, but must be owned and operated by the 
same person. The central part of the application for an averaging plan 
is the demonstration that if all averaging units included in the 
designated set are operating at maximum design capacity, their total 
emissions will be no greater than the total emissions which would be 
allowed from all of the averaging units if they were subject to the 
`presumptive' RACT emission limits.
    This averaging provision is not intended to be a generic trading 
rule covering all pollutants but is a limited trading rule for meeting 
NOX RACT requirements. The New Jersey regulation is limited in 
scope, time, and types of sources which can trade and is intended to be 
an interim step in achieving future ozone attainment. New Jersey's 
averaging provision met the general EPA guidance (NOX Preamble) 
when these rules were proposed and adopted by the State. New Jersey, in 
consultation with the OTC states and EPA, is currently developing 
future trading rules which will have broader applicability. New 
Jersey's averaging provision is satisfactory in that it meets EPA's 
policy that was in existence at the time it was adopted by the State, 
however there are some differences from current EPA trading policy. 
These differences include: (1) definition of a violation, (2) improved 
audit procedures, (3) a reconciliation procedure, (4) specification of 
baseline emissions, and (5) the effects on credits of newly adopted 
rules. The State's revisions will address these areas and strengthen 
the NOX RACT regulations.
    New Jersey's averaging plan is consistent with EPA's general 
guidance (NOX Preamble). The averaging plan is enforceable through 
appropriate averaging times, test methods, compliance schedules and 
reporting and recordkeeping requirements.
4. Non-Utility Boilers
    Section 19.7 specifies the requirements for non-utility boilers. 
The control strategy depends on the maximum gross heat input rate of 
the non-utility boiler, the type of boiler and the type of fuel used. 
Smaller boilers are required to annually adjust the combustion process 
to minimize NOX emissions, while the larger size boilers must meet 
emission limits (lb. NOX/MM BTU) ranging from 0.1 to 1.0. Also, 
any non-utility boilers with a maximum gross heat input rate of at 
least 250 million BTUs per hour shall install a continuous emissions 
monitoring system.
    The emission limits specified by New Jersey are consistent with 
those recommended by the EPA in the NOX Supplement. The emission 
limits are enforceable through appropriate averaging times, test 
methods, compliance schedules and reporting and recordkeeping 
requirements.
5. Stationary Internal Combustion Engines
    Section 19.8 establishes NOX emission limits for stationary 
internal combustion engines. The emission limitations, expressed as 
grams NOX per horsepower-hour, range from 1.5 to 8.0 depending on 
the type of engine and the type of fuel used.
    New Jersey's emission limits are consistent with EPA's general 
guidance and with those suggested by NESCAUM. The emission limits are 
enforceable through appropriate averaging times, test methods, 
compliance schedules and reporting and recordkeeping requirements.
6. Asphalt Plants
    Section 19.9 establishes NOX emission limits for asphalt 
plants depending on the type of plant. The emission limit for these 
sources is 200 parts per million (dry, volume basis) at seven percent 
oxygen content. In addition to establishing emission limits, the 
regulation requires the burner of an aggregate dryer to be adjusted 
annually to reduce emissions of all pollutants.
    New Jersey's emission limitations are consistent with EPA's general 
guidance. The emission limits are enforceable through appropriate 
averaging times, test methods, compliance schedules and reporting and 
recordkeeping requirements. 

[[Page 51381]]

7. Glass Manufacturing Furnaces
    Section 19.10 establishes NOX emission limits for glass 
manufacturing furnaces. The limitations depend on the type of glass 
manufactured by the furnace.
    The emission limits, expressed as pounds NOX per ton of glass 
removal from the furnace, for commercial container and specialty 
container glass manufacturing are 5.5 and 11.0 respectively. In the 
case of borosilicate recipe glass manufacturing furnaces, a baseline 
NOX emission rate must be determined by January 1, 1994 and a plan 
must be submitted by July 1, 1994 explaining how those baseline 
emissions will be reduced by 30 percent. The furnace must then 
implement the plan and reduce its emissions accordingly. In addition, 
the owner or operator of a glass manufacturing furnace must annually 
adjust the combustion process of the furnace beginning in May 1994.
    The Department has determined that glass furnaces will become 
subject to the specific emission limitations on May 1, 1997, unless the 
furnace is `rebricked' before that date, in which case the furnace 
becomes subject to the emission limitations upon the date the 
rebricking is completed.
    EPA accepts the technical and economic rationale presented by New 
Jersey in their proposed rule for the emission limits as adopted. EPA's 
policy allows states to extend the repowering guidance to other source 
categories. New Jersey's rebricking provisions meet all of the 
requirements in EPA's guidance. New Jersey's provision requires interim 
RACT to begin on May 1, 1994 and to rebrick and comply with the 
emission limits by May 1, 1997 or the first date after rebricking is 
completed, whichever is earlier. New Jersey defines interim RACT as 
annual adjustments to the combustion process.
    New Jersey's emission limitations are consistent with EPA's general 
guidance and therefore, acceptable to the Agency. The emission limits 
are enforceable through appropriate averaging times, test methods, 
compliance schedules and reporting and recordkeeping requirements.
8. Facility-Specific NOX Emission Limits
    Section 19.13 establishes a procedure for a case-by-case 
determination of what represents RACT for a particular facility, item 
of equipment or source operation. This procedure is applicable in two 
situations: (1) if a major NOX facility contains any source 
operation or item of equipment not listed in 19.2, or (2) if the owner 
or operator of a source operation or item of equipment that is listed 
in 19.2 seeks approval of an alternative maximum allowable emission 
rate.
    New Jersey's procedure entails the owners and/or operators of the 
effected facility to propose a NOX control plan or request for an 
alternative maximum allowable emission rate. The owners/operator are to 
include a technical and economic feasibility analysis of the possible 
alternative control measures. For each case, the regulations provide 
for the Department to establish emission limits based upon a RACT 
determination specific to the facility in question. The resulting 
control plan or alternate maximum allowable emission rate would be 
submitted for approval as a SIP revision.
    Section 19.13(l) identifies the reasons why the State ``may'' 
revoke an approval of a NOX control plan. One reason would be an 
EPA disapproval of the plan after EPA rulemaking action. The State 
indicates that ``may'' does not apply to EPA disapprovals and that in a 
forthcoming amendment to Subchapter 19, New Jersey will clarify this. 
They will revise Sections 19.13(l)(3) and 19.13(h) to say that upon EPA 
disapproval of a specific NOx plan, New Jersey will revoke the 
plan. EPA is proposing to approve this provision because the New Jersey 
explanation is acceptable and, regardless, EPA has adequate authority 
under the Act to require the state to correct any EPA identified 
deficiencies.
    For sources not subject to specific emission limitations or work 
practice standards, Section 19.13 provides a procedure and schedule 
which must be followed in order to comply with Subchapter 19. Should a 
source not comply with this procedure it would constitute a violation 
of Subchapter 19 and would subject the source owner or operator to 
civil and applicable criminal penalties. EPA believes this is 
sufficient to insure that sources comply and should EPA have to take 
enforcement action, it could use the same provisions to obtain 
compliance.
9. Exemptions
    Section 19.2 contains provisions to exempt equipment and source 
operations. The following summarizes these exemptions:

    1. Emergency generators which operate less than 500 hours 
annually and have a potential to emit less than 25 tons of NOX. 
This exemption provision is consistent with the Act since all 
sources with a potential to emit less than 25 tons per year of 
NOX are not subject to NOX emission limitations.
    2. Equipment or source operations where the EPA Administrator 
determines that the net air quality benefits are greater in the 
absence of NOX reductions. This provision conforms to Section 
182(f) of the Act providing for this NOX RACT exemption.
    3. NOX sources with a potential to emit less than 25 tons 
per year and with the potential to emit less than 137 pounds per day 
during the ozone season. This provision is consistent with the Act 
as indicated in the first exemption above.
10. Other Provisions
    The following are administrative and procedural provisions to 
Subchapter 19 which were reviewed by EPA: definitions; general 
provisions; procedures for obtaining approvals and demonstrating 
compliance; requirements for adjusting the combustion process; emission 
testing, monitoring, and recordkeeping; and civil penalties. EPA has 
evaluated these provisions in Subchapter 19 for consistency with EPA 
policy and has determined that they meet the requirements and are 
therefore acceptable to the Agency.

IV. Summary

    The EPA is proposing full approval of Subchapter 19, ``Control and 
Prohibition of Air Pollution From Oxides of Nitrogen'' submitted by the 
State of New Jersey on November 15, 1993 for the marginal, moderate, 
and severe ozone nonattainment areas. New Jersey has applied Subchapter 
19 to the entire State.
    Nothing in this proposed rule should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any SIP. Each request for revision to the SIP shall be 
considered separately in light of specific technical, economic, and 
environmental factors and in relation to relevant statutory and 
regulatory requirements.
    Under the Regulatory Flexibility Act, 5 U.S.C. Sec. 600 et. seq., 
EPA must prepare a regulatory flexibility analysis assessing the impact 
of any proposed or final rule on small entities. 5 U.S.C. Secs. 603 and 
604. Alternatively, EPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises, 
and government entities with jurisdiction over populations of less than 
50,000.
    SIP approvals under Section 110 and Subchapter I, Part D of the Act 
do not create any new requirements, but simply approve requirements 
that the State is already imposing. Therefore, because the federal SIP 
approval does not impose any new requirements, I certify that it does 
not have a significant impact on any small entities affected. 

[[Page 51382]]
Moveover, due to the nature of the federal-state relationship under the 
Clean Air Act, preparation of a regulatory flexibility analysis would 
constitute federal inquiry into the economic reasonableness of state 
action. The Act forbids EPA to base its actions concerning SIPs on such 
grounds. Union Electric Co. v US EPA, 427 US 246, 256-66 (S.Ct. 1976); 
42 U.S.C. Sec. 7410(a)(2).
    Under Sections 202, 203, and 205 of the Unfunded Mandates Reform 
Act of 1995 (``Unfunded Mandates Act''), signed into law on March 22, 
1995, EPA must undertake various actions in association with proposed 
or final rules that include a federal mandate that may result in 
estimated annual costs of $100 million or more to the private sector, 
or to state, local, or tribal governments in the aggregate.
    Through submission of this state implementation plan revision, the 
state and any affected local or tribal governments have elected to 
adopt the program provided for under Section 182(f) of the Clean Air 
Act. These rules may bind state, local and tribal governments to 
perform certain actions and also require the private sector to perform 
certain duties. To the extent that the rules being proposed for 
approval by this action would impose any mandate upon the state, local 
or tribal governments either as the owner or operator of a source or as 
a regulator, or would impose any mandate upon the private sector, EPA's 
action would impose no new requirements; such sources are already 
subject to these regulations under state law. Accordingly, no 
additional costs to state, local, or tribal governments, or to the 
private sector, result from this action. EPA has also determined that 
this proposed action does not include a mandate that may result in 
estimated annual costs of $100 million or more to state, local, or 
tribal governments in the aggregate or to the private sector.
    This action has been classified as a Table 3 action for signature 
by the Regional Administrator under the procedures published in the 
Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a 
July 10, 1995 memorandum from Mary Nichols, Assistant Administrator for 
Air and Radiation. The Office of Management and Budget (OMB) has 
exempted this regulatory action from Executive Order 12866 review.

List of Subjects in 40 CFR Part 52

    Air pollution control, Incorporation by reference, 
Intergovernmental relations, Nitrogen dioxide, Ozone, Reporting and 
recordkeeping requirements.

    Authority: 42 U.S.C 7401-7671q.

    Dated: September 15, 1995.
William J. Muszynski,
Deputy Regional Administrator.
[FR Doc. 95-24451 Filed 9-29-95; 8:45 am]
BILLING CODE 6560-50-P