Response to Petition From New Jersey Regarding SO2, 19662-19681 [2011-8166]

Agencies

• ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 76, Number 67 (Thursday, April 7, 2011)]
[Proposed Rules]
[Pages 19662-19681]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8166]



[[Page 19661]]

Vol. 76

Thursday,

No. 67

April 7, 2011

Part III





Environmental Protection Agency





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40 CFR Part 52



Response to Petition From New Jersey Regarding SO2 Emissions 
From the Portland Generating Station; Proposed Rule

Federal Register / Vol. 76 , No. 67 / Thursday, April 7, 2011 / 
Proposed Rules

[[Page 19662]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-HQ-OAR-2011-0081; FRL-9291-2]
RIN 2060-AQ69


Response to Petition From New Jersey Regarding SO2 
Emissions From the Portland Generating Station

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: In this action, EPA proposes to make a finding that the coal-
fired Portland Generating Station (Portland Plant) in Upper Mount 
Bethel Township, Northampton County, Pennsylvania, is emitting air 
pollutants in violation of the interstate transport provisions of the 
Clean Air Act (CAA or Act). Specifically, EPA is proposing to find that 
emissions of sulfur dioxide (SO2) from the Portland Plant 
significantly contribute to nonattainment and interfere with 
maintenance of the 1-hour SO2 national ambient air quality 
standard (NAAQS) in New Jersey. This finding is proposed in response to 
a petition submitted by the State of New Jersey Department of 
Environmental Protection (NJDEP) on September 17, 2010. In this action, 
EPA is also proposing emission limitations and compliance schedules to 
ensure that the Portland Plant will no longer significantly contribute 
to nonattainment, and no longer interfere with maintenance of the 1-
hour SO2 NAAQS, thereby permitting continued operation of 
the Portland Plant beyond the 3-month limit established by the CAA for 
sources subject to such a finding.

DATES: Comments. Comments must be received on or before May 27, 2011.
    Public Hearing: A public hearing will be held on April 27, 2011, in 
the Pequest Trout Hatchery and Natural Resources Education Center 
located in Oxford, Warren County, New Jersey 07863. Please refer to 
SUPPLEMENTARY INFORMATION for additional information on the comment 
period and the public hearing.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2011-0081 by one of the following methods:
     https://www.regulations.gov. Follow the online instructions 
for submitting comments. Attention Docket ID No. EPA-HQ-OAR-2011-0081.
     E-mail: a-and-r-docket@epa.gov. Attention Docket ID No. 
EPA-HQ-OAR-2011-0081.
     Fax: (202) 566-9744. Attention Docket ID No. EPA-HQ-OAR-
2011-0081.
     Mail: EPA Docket Center, EPA West (Air Docket), Attention 
Docket ID No. EPA-HQ-OAR-2011-0081, U.S. Environmental Protection 
Agency, Mailcode: 2822T, 1200 Pennsylvania Avenue, NW., Washington, DC 
20460. Please include a total of 2 copies. Hand Delivery: U.S. 
Environmental Protection Agency, EPA West (Air Docket), 1301 
Constitution Avenue, Northwest, Room 3334, Washington, DC 20004, 
Attention Docket ID No. EPA-HQ-OAR-2011-0081. Such deliveries are only 
accepted during the Docket's normal hours of operation, and special 
arrangements should be made for deliveries of boxed information.
    Instructions. Direct your comments to Docket ID No. EPA-HQ-OAR-
2011-0081. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
https://www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI or otherwise protected through https://www.regulations.gov or e-mail. The https://www.regulations.gov Web site 
is an ``anonymous access'' system, which means EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you send an e-mail comment directly to EPA without 
going through https://www.regulations.gov, your e-mail address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, avoid any form of encryption, and be 
free of any defects or viruses. For additional information about EPA's 
public docket, visit the EPA Docket Center homepage at https://www.epa.gov/epahome/dockets.htm.
    Docket. All documents in the docket are listed in the https://www.regulations. gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in https://www.regulations regulations.gov or in hard copy at the Air and Radiation 
Docket and Information Center, EPA/DC, EPA West Building, Room 3334, 
1301 Constitution Ave., NW., Washington, DC. The Public Reading Room is 
open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding 
legal holidays. The telephone number for the Public Reading Room is 
(202) 566-1744, and the telephone number for the Air Docket is (202) 
566-1742.

FOR FURTHER INFORMATION CONTACT: Mr. Todd Hawes (919-541-5591), 
hawes.todd@epa.gov, or Ms. Gobeail McKinley (919-541-5246), 
mckinley.gobeail@epa.gov, Air Quality Policy Division, Office of Air 
Quality Planning and Standards (C539-04), Environmental Protection 
Agency, Research Triangle Park, NC 27711.

SUPPLEMENTARY INFORMATION:

I. General Information

A. Where can I get a copy of this document and other related 
information?

    In addition to being available in the docket, an electronic copy of 
this proposal will also be available on the World Wide Web. Following 
signature by the EPA Administrator, a copy of this action will be 
posted on EPA's Web site https://www.epa.gov/ttn/oarpg/new.html.

B. What should I consider as I prepare my comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through 
https://www.regulations.gov or e-mail. Clearly mark the part or all of 
the information that you claim to be CBI. For CBI information in a disk 
or CD ROM that you mail to EPA, mark the outside of the disk or CD ROM 
as CBI and then identify electronically within the disk or CD ROM the 
specific information that is claimed as CBI. In addition to one 
complete version of the comment that includes information claimed as 
CBI, a copy of the comment that does not contain the information 
claimed as CBI must be submitted for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2. Send or deliver information 
identified as CBI only to the following address: Roberto Morales, OAQPS 
Document Control Officer (C404-02), U.S. EPA, Research Triangle

[[Page 19663]]

Park, NC 27711, Attention Docket ID No. EPA-HQ-OAR-2011-0081.
    2. Tips for preparing your comments. When submitting comments, 
remember to:
     Identify the rulemaking by docket number and other 
identifying information (subject heading, Federal Register date and 
page number).
     Follow directions--The agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) part or section number.
     Explain why you agree or disagree; suggest alternatives 
and substitute language for your requested changes.
     Describe any assumptions and provide any technical 
information and/or data that you used.
     If you estimate potential costs or burdens, explain how 
you arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
     Provide specific examples to illustrate your concerns, and 
suggest alternatives.
     Explain your views as clearly as possible, avoiding the 
use of profanity or personal threats.
     Make sure to submit your comments by the comment period 
deadline identified.

C. How can I find information about the public hearing?

    The EPA will hold a public hearing on this proposal on April 27, 
2011. The hearing will be held at the following location: Pequest Trout 
Hatchery and Natural Resources Education Center located on 605 Pequest 
Road in Oxford, New Jersey 07863. The public hearing will begin at 12 
noon and continue until 8 p.m., or later if necessary depending on the 
number of speakers. The EPA will make every effort to accommodate all 
speakers that arrive and register before 8 p.m. A dinner break is 
scheduled from 4 p.m. until 5 p.m. during the hearing. Oral testimony 
will be limited to 5 minutes per commenter. The EPA encourages 
commenters to provide written versions of their oral testimonies either 
electronically or in paper copy. Verbatim transcripts and written 
statements will be included in the rulemaking docket. If you would like 
to present oral testimony at the hearing, please notify Ms. Pam S. 
Long, Air Quality Policy Division (C504-03), U.S. EPA, Research 
Triangle Park, NC 27711, telephone number (919) 541-0641, 
long.pam@epa.gov. Persons interested in presenting oral testimony 
should notify Ms. Long at least 2 days in advance of the public 
hearing. Commenters should notify Ms. Long if they will need specific 
equipment, or if there are other special needs related to providing 
comments at the public hearing. The EPA will provide equipment for 
commenters to show overhead slides or make computerized slide 
presentations if we receive special requests in advance. The EPA 
encourages commenters to provide EPA with a copy of their oral 
testimony electronically (via e-mail or CD) or in hard copy form. For 
updates and additional information on the public hearing, please check 
EPA's Web site for this rulemaking, https://www.epa.gov/ttn/oarpg/new.html. The public hearing will provide interested parties the 
opportunity to present data, views, or arguments concerning the 
proposed rule. The EPA may ask clarifying questions during the oral 
presentations, but will not respond to the presentations or comments at 
that time. Written statements and supporting information submitted 
during the comment period will be considered with the same weight as 
any oral comments and supporting information presented at a public 
hearing.

D. How is the preamble organized?

SUPPLEMENTARY INFORMATION: 

I. General Information
    A. Where can I get a copy of this document and other related 
information?
    B. What should I consider as I prepare my comments for EPA?
    C. How can I find information about a public hearing?
    D. How is the preamble organized?
II. EPA's Proposed Decision on NJDEP's September 17, 2010 Section 
126 Petition
III. Background
    A. Section 126 of the Clean Air Act
    B. Summary of Section 126 Petitions Submitted by NJDEP
    1. NJDEP's May 13, 2010 Petition
    2. NJDEP's September 17, 2010 Petition
    C. EPA Extensions for Acting on the Section 126 Petitions
    D. Background on the Portland Plant and Its Surrounding Area
    E. Sulfur Dioxide and Public Health
IV. EPA's Methodology for Making the Proposed Section 126 Finding 
for the Portland Plant
    A. EPA's Approach for Determining Whether To Make a Section 126 
Finding for the Portland Plant
    1. CAA Section 126(b)
    2. EPA's Approach To Evaluating NJDEP's Section 126 Petition
V. Summary and Assessment of the Modeling and Other Data Relevant to 
EPA's Finding
    A. Summary of the Modeling Submitted by NJDEP To Support the 
Petition
    B. EPA's Assessment of the Modeling Submitted by NJDEP
    1. NJDEP's Model Selection
    a. CALPUFF Alternative Model Justification
    2. Emissions and Source Characteristics
    3. Meteorological Data
    4. Receptor/Terrain Data
    5. AERMOD Results
    C. Summary of NJDEP's Trajectory Analysis and the Columbia Lake 
Monitor
VI. EPA's Decision on Whether To Make a Section 126 Finding or Deny 
the Petition
VII. EPA's Proposed Remedy
    A. Quantification of the Emission Reductions Necessary To 
Eliminate the Portland Plant's Significant Contribution
    1. Summary of EPA's Remedy Modeling for 1-Hour SO2 
NAAQS
    2. Model Selection
    3. Meteorological Data
    4. Receptor/Terrain Data
    5. Portland Plant Emissions and Source Characteristics
    6. Identification of Background Concentration To Use in the 
Remedy Analysis
    7. Summary of EPA's Modeling Results
    a. Calculation of Emissions Limits Based on Maximum Modeled 
Impacts From Units 1 and 2 Plus Background
VIII. Proposed Emission Limits and Compliance Schedules
    A. Statutory Requirements for Sources for Which EPA Makes a 
Section 126(b) Finding
    B. Proposed Emission Limits
    C. Proposed Compliance Schedules
    D. Alternative Compliance Schedule
IX. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health and Safety Risks
    H. Executive Order 13211: Actions That Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations

II. EPA's Proposed Decision on NJDEP's September 17, 2010 Section 126 
Petition

    EPA is proposing to grant the request in NJDEP's September 17, 
2010, section 126 petition for a finding that emissions from the 
Portland Plant significantly contribute to nonattainment or interfere 
with maintenance of the 1-hour SO2 NAAQS in New Jersey. 
EPA's proposed finding is based on EPA's review of NJDEP's air quality 
modeling, EPA's independent assessment of the AERMOD \1\ dispersion 
modeling, and

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other technical analysis conducted by EPA.
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    \1\ AERMOD stands for the American Meteorological Society/
Environmental Protection Agency Regulatory Model.
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    In granting this request, EPA is also proposing to allow the 
continued operation of the plant and to establish specific emission 
limitations and compliance schedules (including increments of progress) 
to bring the plant into compliance as expeditiously as practicable with 
the CAA prohibition of emissions that significantly contribute to 
nonattainment or interfere with maintenance. EPA is proposing to 
require that the Portland Plant reduce its SO2 emissions to 
a limit no greater than 1,105 lbs/hour for unit 1 and 1,691 lbs/hour 
for unit 2. EPA proposes that the Portland Plant achieve and maintain 
these emission limitations by no later than 3 years after the effective 
date of the final rulemaking. EPA is taking comment on possible interim 
emission reductions such as proposing that the Portland Plant reduce 
its SO2 emissions to a level no greater than 2,910 lbs/hr 
for unit 1, and 4,450 lbs/hr for unit 2, one year after the effective 
date of the final rulemaking, and other compliance activities to 
demonstrate appropriate increments of progress toward compliance. EPA 
has identified a number of existing, proven control technologies, as 
well as operational changes that can be employed to reduce emissions 
from these units. Nevertheless, EPA is also taking comment on an 
alternative compliance option should the Portland Plant decide to cease 
operation at the units subject to the emission limits, and is 
requesting comment on appropriate timeframes and measures for 
increments of progress to include for that alternative compliance 
option. EPA proposes that the emission limits and other measures 
established along with this finding are sufficient to remedy the 
Portland Plant's significant contribution to nonattainment and 
interference with maintenance in the impacted area in New Jersey.

III. Background

A. Section 126 of the Clean Air Act

    The statutory authority for this action is provided by the CAA, 
including but not necessarily limited to, sections 126 and 
110(a)(2)(D)(i).
    Section 126(b) of the CAA provides, among other things, that any 
State or political subdivision may petition the Administrator of EPA to 
find that any major source or group of stationary sources in upwind 
States emits or would emit any air pollutant in violation of the 
prohibition of section 110(a)(2)(D)(i),\2\ which we describe later in 
detail. 42 U.S.C. 7426(b). Findings by the Administrator, pursuant to 
this section, that a source or group of sources emit air pollutants in 
violation of the section 110(a)(2)(D)(i) prohibition are commonly 
referred to as section 126 findings. Similarly, petitions submitted 
pursuant to this section are commonly referred to as section 126 
petitions.
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    \2\ The text of section 126 codified in the United States Code 
cross references section 110(a)(2)(D)(ii) instead of section 
110(a)(2)(D)(i). The courts have confirmed that this is a 
scrivener's error and the correct cross reference is to section 
110(a)(2)(D)(i), See Appalachian Power Co. v. EPA, 249 F.3d 1032, 
1040-44 (DC Cir. 2001).
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    Section 126(c) explains the impact of a section 126 finding and 
establishes the conditions under which continued operation of a source 
subject to such a finding may be permitted. Specifically, section 
126(c) provides that it would be a violation of section 126 of the Act 
and of the applicable State implementation plan: (1) For any major 
proposed new or modified source subject to a section 126 finding to be 
constructed or operate in violation of the prohibition of section 
110(a)(2)(D)(i); or (2) for any major existing source for which such a 
finding has been made to operate more than three months after the date 
of the finding. 42 U.S.C. 7426(c). The statute, however, also gives the 
Administrator discretion to permit the continued operation of a source 
beyond three months if the source complies with emission limitations 
and compliance schedules provided by EPA to bring about compliance with 
the requirements contained in sections 110(a)(2)(D)(i) and 126 as 
expeditiously as practicable but no later than 3 years from the date of 
the finding. Id.
    Section 110(a)(2)(D) of the CAA, often referred to as the ``good 
neighbor'' or ``interstate transport'' provision of the Act, requires 
States to prohibit certain emissions from in-State sources if such 
emissions impact the air quality in downwind States. Specifically, 
section 110(a)(2)(D) requires all States, within 3 years of 
promulgation of a new or revised NAAQS, to submit State implementation 
plans (SIPs) that: contain adequate provisions prohibiting any source 
or other type of emissions activity within the State from emitting any 
air pollutant in amounts which will contribute significantly to 
nonattainment in, or interfere with maintenance by, any other State 
with respect to any such national primary or secondary ambient air 
quality standard, or interfere with measures required to be included in 
the applicable implementation plan for any other State under part C to 
prevent significant deterioration of air quality or to protect 
visibility. (42 U.S.C. 7410(a)(2)(D)).
    EPA has previously promulgated rules to quantify the specific 
SO2 and nitrogen oxide (NOX) emission reductions 
required in certain eastern States by section 110(a)(2)(D)(i)(I) with 
respect to the NAAQS for ozone and fine particulate matter 
(PM2.5). See 62 FR 57356 (NOX SIP Call); 70 FR 
25162 (CAIR).\3\ EPA has also promulgated Federal rules to directly 
require such reductions. See 71 FR 25318 [finalizing Federal 
Implementation Plans for Clean Air Interstate Rule (CAIR)]; 65 FR 2674 
(making section 126 findings for numerous large EGUs and finalizing a 
remedy for the affected sources). Most recently, EPA proposed the 
Transport Rule to address significant contribution to nonattainment and 
interference with maintenance with respect to the 1997 ozone and the 
1997 and 2006 PM2.5 NAAQS (75 FR 45210). Among other things, 
this proposed rule identifies SO2 and NOX 
reductions that will be needed in certain States to address 
PM2.5 nonattainment and maintenance problems in other 
States. See 75 FR 45129-21 (discussing the air quality problems and the 
specific NAAQS addressed by the proposal). SO2 and 
NOX are identified as the pollutants of concern because of 
their impact on downwind States' ability to attain and maintain the 
PM2.5 and ozone NAAQS. See 75 FR 45237, 45299. 
SO2 and NOX are PM2.5 precursors and 
NOX is also an ozone precursor.
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    \3\ CAIR was subsequently found unlawful and remanded to EPA 
without vacatur, and thus remains in place while EPA responds to the 
remand. See North Carolina v. EPA, 531 F.3d 896, modified on reh'g, 
550 F.3d 1176 (DC Cir. 2006).
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    The problems associated with high levels of SO2 in the 
air, however, are separate and distinct from the problems associated 
with high levels of PM2.5 and are addressed by a separate 
NAAQS, namely the 1-hour SO2 NAAQS. 75 FR 35520 (Primary 
National Ambient Air Quality Standard for Sulfur Dioxide). The 
Transport Rule will not seek to identify or quantify reductions 
necessary to address significant contribution or interference with 
maintenance with respect to the 1-hour SO2 NAAQS. In other 
words, the proposed Transport Rule does not address transport with 
respect to the 1-hour SO2 NAAQS and thus does not address 
the concern raised in NJDEP's section 126 petition. Similarly, State 
110(a)(2)(D)(i) SIP submissions relating to the ozone or 
PM2.5 NAAQS would address only significant contribution to 
nonattainment and interference with maintenance of those NAAQS and thus 
would not address the concerns raised

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regarding significant contribution to nonattainment and interference 
with maintenance of the 1-hour SO2 NAAQS.
    In addition, it is worth noting that the plain language of the 
statute confirms that section 126 remedies can, and in some cases must, 
be promulgated prior to the due date for good neighbor SIPs. Not only 
does section 126 provide a very stringent deadline for EPA to respond 
to section 126 petitions, but section 110(a)(2)(D)(ii) also calls for 
remedies promulgated pursuant to section 126 to be included in the SIP 
submissions that are due 3 years after a NAAQS is promulgated or 
revised. Section 110(a)(2)(D)(ii) requires State SIPs to contain 
adequate provisions ``insuring compliance with the applicable 
requirements of [CAA section 126]''. 42 U.S.C. 7410(a)(2)(D). 
Consistent with the requirement in CAA section 110(a)(1), the 
Commonwealth of Pennsylvania will be required to adopt and submit to 
the Administrator, by June 2013 (3 years after the promulgation of the 
1-hour SO2 NAAQS), a SIP that satisfies the requirements of 
110(a)(2) including the interstate transport requirements of 
110(a)(2)(D)(ii). In other words, the statute requires the State SIP 
submittal to include any emission limits promulgated by EPA pursuant to 
section 126. The fact that Congress required the SIP submittals due 3 
years after promulgation or revision of a NAAQS to include any emission 
limits promulgated pursuant to section 126 is meaningful. If Congress 
had intended to limit EPA's authority to act on section 126 petitions 
until after the deadline for States to submit 110(a)(2)(D)(i) SIPs, it 
could have done so. Instead, it provided a mechanism for section 126 
remedies promulgated prior to the SIP submission deadline to be 
incorporated into the State SIPs. EPA is bound by the language of the 
CAA. Since the statute establishes firm deadlines for action on section 
126 petitions, does not provide an exception for petitions submitted 
prior to the good neighbor SIP submission deadline, and provides a 
mechanism for incorporating reductions required in response to section 
126 petitions into the State SIPs, EPA believes it does not have 
discretion to delay action on a section 126 petition just because the 
State SIP submission deadline has not yet passed. EPA requests comment 
on this interpretation and all interpretations of section 126 in this 
section.
    EPA has received one prior petition, in 1979, asking for a section 
126 finding with respect to a single source. In this petition, the Air 
Pollution Control District of Jefferson County, Kentucky, requested 
that EPA find, pursuant to the version of section 110(a)(2)(E)(I) of 
the CAA in effect at that time, that emissions from the Gallagher Power 
Station in southern Indiana were preventing attainment and maintenance 
with respect to the 1971 3-hour, 24-hour, and annual SO2 
NAAQS.\4\ 47 FR 6624 (1982). The petition also sought a reduction of 
SO2 emissions from the plant. EPA denied that petition 
basing its decision, in part, on a modeling analysis concluding that 
the Gallagher Power Station's modeled allowable emissions were 
substantially below amounts that would prevent attainment or 
maintenance of the NAAQS. In this proposal, EPA is also using modeling 
analyses to decide whether to make a section 126 finding or deny the 
petition. EPA's decision on the 1979 petition was upheld by the U.S. 
Court of Appeals for the Sixth Circuit.\5\
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    \4\ Section 110(a)(2)(E)(i)(I) of the CAA was superseded by 
110(a)(2)(D)(i)(I) in the 1990 CAA amendments, in part to strengthen 
the prohibitions of interstate transport of emissions (64 FR 28262). 
The relevant wording under 110(a)(2)(E)(i)(I) was changed from 
``prevent attainment or maintenance by any other State'' to 
``contribute significantly to nonattainment in, or interfere with 
maintenance by, any other State'' under 110(a)(2)(D)(i)(I).
    \5\ See Air Pollution Control District of Jefferson County, 
Kentucky v. EPA, 739 F.2d 1071, (U.S. Court of Appeals, Sixth 
Circuit).
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B. Summary of Section 126 Petitions Submitted by NJDEP

1. NJDEP's May 13, 2010 Petition
    On May 13, 2010, EPA received from the NJDEP a section 126 petition 
requesting that EPA make a finding that the Portland Plant is emitting 
air pollutants in violation of the interstate transport provisions of 
the CAA. The petition alleges that emissions from the Portland Plant 
significantly contribute to nonattainment and/or interfere with 
maintenance of the 2006 24-hour PM2.5 NAAQS and the 1971 3-
hour and 24-hour SO2 NAAQS in New Jersey. That petition is 
still under consideration and this action does not address the petition 
submitted on May 13, 2010.
2. NJDEP's September 17, 2010 Petition
    On September 17, 2010, EPA received another section 126 petition 
from NJDEP requesting that EPA make a finding under section 126(b) of 
the CAA that the Portland Plant is emitting air pollutants in violation 
of the interstate transport provisions of the CAA with respect to the 
1-hour SO2 NAAQS promulgated on June 2, 2010 (75 FR 35520). 
NJDEP stated that this petition provided additional documentation to 
supplement the section 126 petition from May 13, 2010.
    NJDEP also submitted a modeling and trajectory analysis to support 
the assertions in the September 17, 2010, petition. This analysis, it 
asserts, demonstrates that the Portland Plant causes violations of the 
1-hour SO2 NAAQS in Warren, Sussex, Morris, and Hunterdon 
Counties in New Jersey. NJDEP's petition asks EPA to directly regulate 
the Portland Plant and requests the installation of appropriate air 
pollution controls, such as a scrubber, which it asserts would provide 
the necessary abatement. As an alternative to address the alleged 
violations, NJDEP's petition suggests that the EPA could impose 
emission limits no less stringent than New Jersey's Reasonably 
Available Control Technology (RACT) rules set forth at N.J.A.C. 7:27-
1.1 et seq.

C. EPA Extensions for Acting on the Section 126 Petition

    Any action taken by EPA under section 126 to make a finding or deny 
a petition is subject to the procedural requirements of CAA section 
307(d). See 42 U.S.C. 7607(d)(1)(N). One of these requirements is 
notice-and-comment rulemaking. See 42 U.S.C. 7607(d)(3). In light of 
the time required for notice-and-comment rulemaking, CAA section 
307(d)(10) provides for a time extension, under certain circumstances, 
for rulemaking subject to section 307(d).
    In accordance with section 307(d)(10), EPA determined that the 60-
day period afforded by section 126(b) for responding to the petition 
from the NJDEP was not sufficient to allow the public and EPA adequate 
opportunity to carry out the purposes of section 307(d). Specifically, 
EPA determined that the 60-day period was insufficient for EPA to 
develop an adequate proposal and allow time for notice-and-comment on 
whether the Portland Plant contributes significantly to nonattainment 
and/or maintenance problems in New Jersey. Based on these 
determinations, on November 16, 2010, EPA published a notice extending 
the deadline for action on the September 17, 2010, petition until May 
16, 2011 (75 FR 69889). In this notice, EPA also explained its 
conclusion that the September 17, 2010, petition submitted by NJDEP is 
a new petition and not a supplement to the May 13, 2010, petition.

D. Background on the Portland Plant and Its Surrounding Area

    The Portland Plant is a 427 megawatt (MW) coal-fired plant located 
in Upper Mount Bethel Township in Northampton County, Pennsylvania. It 
is within 500 feet of Knowlton Township in Warren County, New

[[Page 19666]]

Jersey, directly across the Delaware River. There are two main units, 
unit 1 with a capacity of 160 MW and unit 2 with a capacity of 240 MW. 
There is an auxiliary boiler which burns oil and 3 small turbines 
(units 3, 4, and 5) which all burn oil and natural gas, and have very 
small emissions.
    Units 1, 2, and 5 utilize continuous emissions monitoring system 
(CEMS). In 2009, SO2 emissions combined from units 1 and 2 
at the plant were 30,465 tons and emissions from unit 5 were 0.3 tons 
which are reported from CEMS data. Between 2007 and 2010, units 1 and 2 
operated, on average, approximately 7,000 hours per year. Also, between 
2007 and 2010, unit 5 operated for less than 100 hours per year.\6\
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    \6\ Facility unit data is available at the EPA Clean Air Markets 
Division (CAMD) database available at https://camddataandmaps.epa.gov/gdm/index.cfm?fuseaction=emissions.wizard.
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    The auxiliary boiler, unit 3, and unit 4 do not have CEMS, but 
emissions data are available from the 2008 National Emissions Inventory 
(NEI), Version 1. The auxiliary boiler, unit 3, and unit 4 
SO2 annual emissions reported in the 2008 NEI were 0.01, 
0.02, and 0.03 tons, respectively.
    Other sources of SO2 emissions in the area include the 
Martins Creek facility which is located approximately 10 km to the 
south of the Portland Plant. There are two units at Martins Creek, 
units 3 and 4, which averaged about 1,039 and 584 hours of operation 
respectively. Those units each have a capacity of 850 MW and can burn 
either oil or natural gas. The facility reported approximately 1,100 
tons of SO2 emissions in 2009. There are also three cement 
plants (Hercules, Keystone, and ESSROC) and several minor emitting 
units in Pennsylvania located at distances generally greater than 30 km 
away to the south and west of the Portland Plant. In 2009, the 
Pennsylvania Department of Environmental Protection emission inventory 
database (PADEP eFACTS) reported 1,862 tons for Hercules, 685 tons for 
Keystone, and 799 tons for ESSROC of SO2 emissions 
respectively, all of which are relatively low compared to the 
SO2 emissions from the Portland Plant.
    The Delaware River transects the region, with higher terrain on 
either side of the river valley where the Portland Plant is located. 
There is elevated terrain, as high as or greater than Portland's 
highest stacks, which rises 400 to 500 foot (ft) above the valley floor 
near the Portland Plant. The 1500 ft high Kittatinny Ridge is located 
within 7 kilometer (km) to the north and northwest of the Portland 
Plant. Further south, near the Martins Creek Power Plant, major terrain 
features such as Scotts Mountain to the east of the Delaware River rise 
up to 1000 ft above the valley floor.

E. Sulfur Dioxide and Public Health

    Current scientific evidence links health effects with short-term 
exposure to SO2 ranging from 5 minutes to 24 hours. Adverse 
respiratory health effects include narrowing of the airways which can 
cause difficulty breathing (bronchoconstriction) and increased asthma 
symptoms. These effects are particularly important for asthmatics 
during periods of faster or deeper breathing (e.g., while exercising or 
playing). Studies show an association between short-term SO2 
exposure and increased visits to emergency departments and hospital 
admissions for respiratory illnesses particularly in at-risk 
populations including children, the elderly and asthmatics. EPA's NAAQS 
for 1-hour SO2 is designed to protect against exposure to 
the entire group of sulfur oxides (SOX). SO2 is 
the component of greatest concern and is used to represent the larger 
group of gaseous sulfur oxides. Other gaseous sulfur oxides (e.g., 
SO3) are found in the atmosphere at concentrations much 
lower than SO2. Emissions that lead to high concentrations 
of SO2 generally also lead to the formation of other 
SOX. Control measures that reduce SO2 can 
generally be expected to reduce people's exposure to all gaseous 
SOX. Reducing SO2 emissions is expected to have 
the important cobenefit of reducing the formation of fine sulfate 
particles that pose significant public health threats. SOX 
can react with other compounds in the atmosphere to form small 
particles (e.g., PM2.5). These small particles penetrate 
deeply into sensitive parts of the lungs and can cause or worsen 
respiratory disease, such as emphysema and bronchitis, and can 
aggravate existing heart disease, leading to increased hospital 
admissions and premature death.

IV. EPA's Methodology for Making the Proposed Section 126 Finding for 
the Portland Plant

    This section explains the analysis conducted by EPA to determine 
whether it would be appropriate to find, in response to the petition 
submitted by NJDEP, that the Portland Plant emits or would emit any air 
pollutant in violation of the prohibition of section 110(a)(2)(D)(i)(I) 
with respect to the 1-hour SO2 NAAQS.

A. EPA's Approach for Determining Whether To Make a Section 126 Finding 
for the Portland Plant

1. CAA Section 126(b)
    Section 126 of the CAA provides a mechanism for States and other 
political subdivisions to seek abatement of pollution in other States 
that may be affecting their air quality; however, it does not identify 
specific criteria or a specific methodology for the Administrator to 
apply when deciding whether to make a section 126 finding or deny a 
petition. Therefore, EPA has discretion to identify relevant criteria 
and develop a reasonable methodology for determining whether a section 
126 finding should be made. See, e.g., Chevron, U.S.A., Inc. v. NRDC, 
467 U.S. 837, 842-43 (1984); Smiley v. Citibank, 517 U.S. 735, 744-45 
(1996).
    As an initial matter, EPA looks to see whether a petition 
identifies or establishes a technical basis for the requested section 
126 finding. EPA first evaluates the technical analysis in the petition 
to see if that analysis, standing alone, is sufficient to support a 
section 126 finding. EPA focuses on the analysis in the petition 
because the statute does not require EPA to conduct an independent 
technical analysis to evaluate claims made in section 126 petitions. 
The petitioner thus bears the burden of establishing, as an initial 
matter, a technical basis for the specific finding requested. EPA has 
no obligation to prepare an analysis to supplement a petition that 
fails, on its face, to include an initial technical demonstration. Such 
a petition, or a petition that fails to identify the specific finding 
requested, could be found insufficient. Nonetheless, the Agency may 
decide to conduct independent technical analyses when such analyses are 
helpful in evaluating the basis for a potential section 126 finding or 
developing a remedy if a finding is made. As explained later, given our 
view that it is necessary to make some technical adjustments to the 
NJDEP modeling, we determined that it was appropriate to conduct 
independent technical analysis to determine an appropriate remedy. Such 
analysis, however, is not required by the statute and may not be 
necessary or appropriate in other circumstances.
    In this section, EPA explains the methodology used to evaluate the 
technical analysis presented in NJDEP's petition and to determine 
whether it would be appropriate to make the section 126 finding 
requested. This methodology was developed to address the specific 
allegations in the NJDEP petition and does not speak to how EPA

[[Page 19667]]

might evaluate petitions that raise different interstate transport 
issues, such as collective contributions from multiple sources, 
contributions to nonattainment areas in multiple States, or 
contributions to different NAAQS. The methodology used to assess the 
remedy is discussed in section VII.
2. EPA's Approach To Evaluating NJDEP's Section 126 Petition
    Emissions from upwind States can, alone or in combination with 
local emissions, result in air quality levels that exceed the NAAQS and 
jeopardize the health of residents in downwind communities. Each State 
is required by section 110(a)(2)(D)(i)(I) to prohibit emissions from 
activities within that individual State that would significantly 
contribute to downwind nonattainment or interfere with downwind States' 
maintenance of the NAAQS.
    Section 110(a) of the CAA assigns to each State both the primary 
responsibility for attaining and maintaining the NAAQS within such 
State, and prohibiting emissions activities within the State that will 
significantly contribute to nonattainment or interfere with maintenance 
in a downwind area. States fulfill these CAA obligations through the 
SIP process described in section 110(a) of the CAA. States are required 
to submit SIPs to prohibit those emissions that significantly 
contribute to nonattainment or interfere with maintenance in downwind 
States within 3 years of promulgation of a new or revised NAAQS. See 42 
U.S.C. 7410(a), 7410(a)(2)(D). The prohibition on these emissions is 
intended to assist the downwind State as it designs strategies for 
ensuring that the NAAQS are attained and maintained.
    The NJDEP petition asserts and presents modeling that demonstrates 
that emissions from one plant (the Portland Plant) by itself is 
sufficient to cause downwind SO2 NAAQS violations in New 
Jersey. The approach described later was developed by EPA to analyze 
these specific claims in these particular circumstances and may not be 
appropriate for evaluating other claims or those arising in different 
circumstances for other actions.
    In this case, EPA is proposing to define the Portland Plant's 
significant contribution to nonattainment and interference with 
maintenance as those emissions that must be eliminated to bring the 
downwind receptors in New Jersey affected by the Portland Plant into 
modeled attainment in the analysis year. While this approach would not 
be appropriate in every circumstance, EPA believes it is appropriate 
where, as here, the source's emissions are sufficient on their own to 
cause downwind NAAQS violations and background levels of the relevant 
pollutant are relatively low. EPA therefore developed a methodology to 
identify the reductions necessary to bring the downwind receptors into 
attainment.
    EPA's methodology uses dispersion modeling to assess the impact of 
emissions from the Portland Plant on SO2 concentrations at 
downwind receptors. EPA modeled the emissions from the Portland Plant 
and determined that the modeled concentrations from the Portland Plant, 
when combined with the relatively low background concentrations [in the 
manner described in section VII and in greater detail in the Modeling 
Technical Support Document (TSD)], cause violations of the 1-hour 
SO2 NAAQS in New Jersey. We have determined it is 
appropriate to use modeling in this case to determine whether downwind 
air quality will attain the 1-hour SO2 NAAQS in the analysis 
year.\7\
---------------------------------------------------------------------------

    \7\ Historically, EPA has favored dispersion modeling to support 
SO2 NAAQS compliance determinations for areas with 
sources that have the potential to cause an SO2 NAAQS 
violation, and EPA explained that for an area to be designated as 
``attainment,'' dispersion modeling regarding such sources needs to 
show the absence of violations even if monitoring does not show a 
violation. This has been our general position throughout the history 
of implementation of the SO2 NAAQS program. See 75 FR 
35551.
---------------------------------------------------------------------------

    In the modeling analysis, thousands of receptors are placed in New 
Jersey to determine the area of maximum concentration from the Portland 
Plant emissions. A design value concentration is calculated for each 
receptor for comparison to the NAAQS. The design value concentration is 
equal to the 99th percentile (4th-highest) daily maximum 1-hour 
SO2 concentration. All receptors with modeled design value 
concentrations that are greater than the NAAQS (196 [mu]g/m\3\) are 
determined to be nonattainment receptors.
    To quantify the emissions that constitute the Portland Plant's 
significant contribution, we identify the level of emissions that need 
to be reduced to ensure that no modeled concentration within the 
affected area exceeds the level of the NAAQS (i.e., the 99th percentile 
of the daily maximum 1-hour average of 196 [mu]g/m\3\).
    The first step of the ``interfere with maintenance'' analysis is to 
identify whether there are any maintenance receptors in the relevant 
area. In considering maintenance, we are examining the receptors in the 
analysis to determine if higher modeled concentrations may exist due to 
variability in meteorology, emissions, and/or other factors. 
Nonattainment receptors are already modeled to be above the NAAQS and 
receptors with higher \8\ concentrations attributed to variability in 
emissions or meteorology would be exceeding the NAAQS by an even 
greater amount. Therefore, nonattainment receptors are by definition 
also maintenance receptors. In addition to these nonattainment/
maintenance receptors, we also examine receptors that are modeled to be 
attainment but due to variability in meteorology or emissions might be 
at risk for nonattainment. In that case, any identified maintenance 
receptors would not be nonattainment and would therefore be considered 
``maintenance only'' receptors.
---------------------------------------------------------------------------

    \8\ Variability of emissions and meteorology could also lead to 
lower concentrations; however, for purposes of identifying 
interference with maintenance receptors, we would only be concerned 
with concentrations that would be higher than those modeled.
---------------------------------------------------------------------------

    In this particular case, due to the high modeled concentrations 
from the Portland Plant emissions, all of the downwind modeled 
receptors in the modeled receptor grid in New Jersey are modeled to be 
nonattainment. In this application, it was not necessary to expand the 
modeling grid to identify additional nonattainment or ``maintenance 
only'' receptors because the modeling domain was centered on the 
receptors with the maximum impact from the Portland Plant. In a primary 
pollutant dispersion modeling application, emissions reductions from 
the contributing source lead to a linear reduction in downwind 
concentrations. Therefore, we can be certain that an emissions limit on 
the Portland Plant that eliminates modeled violations at the maximum 
concentration receptor will eliminate violations at all potential 
receptors. Because there are no ``maintenance only'' receptors in the 
area of concern, it was not necessary for us to consider the Portland 
Plant's impact on maintenance only receptors.
    We next consider whether the Portland Plant should be required to 
make additional reductions, above and beyond those required to 
eliminate its significant contribution to nonattainment to ensure that 
it does not interfere with maintenance at the nonattainment/maintenance 
receptors. We identified an approach that we believe is appropriate for 
the specific circumstances presented here.
    Among other things, we considered the nature of the modeling used 
to determine the appropriate remedy and the potential for 
SO2 concentrations in New Jersey to be higher than those

[[Page 19668]]

modeled. Here are some of the relevant facts:
    (1) There is only 1 year of site-specific meteorology available for 
this analysis, so we are not able to examine the impact of year-to-year 
variability of meteorology on downwind modeled concentrations.\9\
---------------------------------------------------------------------------

    \9\ Due to constraints on data availability, our analysis is 
appropriate in this instance; however, nothing here is intended to 
suggest that, where sufficient data are available to examine year-
to-year variability, this should not be a relevant factor.
---------------------------------------------------------------------------

    (2) The remedy modeling used allowable emissions from the Portland 
Plant. Since these are the highest emissions that are allowed to be 
emitted by the facility, higher concentrations could not be expected to 
occur in New Jersey due to the emissions from the Portland Plant.
    (3) In the modeling analysis, we used a seasonal and hourly varying 
background concentration that represents the high end of the 
distribution (99th percentile) of hourly observed SO2 
concentrations in the area. As indicated in the trajectory analysis 
submitted by NJDEP, it is likely that direct SO2 impacts 
from the Portland Plant contributed to high monitored concentrations at 
the monitor located in Chester, New Jersey (Chester monitor). 
Therefore, to avoid double counting of contributions from the Portland 
Plant through both monitored and modeled emissions, it would not be 
appropriate to consider higher background concentrations.
    EPA believes that given the specific circumstances described 
previously, there is no indication that concentrations higher than 
those modeled from the Portland Plant would be likely to occur at the 
nonattainment/maintenance receptors or anywhere in New Jersey. It is 
therefore reasonable to conclude, under the circumstances, that any 
remedy that eliminates the significant contribution to nonattainment 
from the Portland Plant will also eliminate its interference with 
maintenance with respect to year-to-year variability in emissions and 
air quality.
    As noted in the proposed Transport Rule, EPA believes that the 
maintenance concept has two components: Year-to-year variability in 
emissions and air quality, and continued maintenance of the air quality 
standard over time. Consistent with the approach in the Transport Rule, 
EPA examined both of these concepts in assessing ``interfere with 
maintenance'' for NJDEP's section 126 petition regarding the Portland 
Plant. Year-to-year variability is discussed above. Year-to-year 
variability is appropriate to consider because data demonstrates that 
year-to-year variations in air quality that stem from differences in 
weather and emissions can determine whether or not the health-based 
standard will be achieved in a particular location in the analyzed 
year.
    EPA separately considered whether further emissions reductions from 
the Portland Plant are necessary to ensure continued lack of 
interference with maintenance of the NAAQS over time, and believes that 
the answer is no. The proposed requirements of this rule will prevent 
the emissions of the Portland Plant from increasing over time relative 
to the modeled scenario. Also, EPA does not have evidence that 
background SO2 emissions from other sources affecting the 
relevant New Jersey receptors will increase in the future, which--in 
combination with residual Portland Plant emissions--in theory might 
have raised the possibility of a future maintenance issue at those 
receptors.
    In conclusion, we are proposing to find that compliance by the 
Portland Plant with the emission limits proposed in this action will 
bring it into compliance with the prohibition on emissions that 
significantly contribute to nonattainment of the 1-hour SO2 
NAAQS as well as with the prohibition on emissions that interfere with 
maintenance in a downwind area.
    EPA requests comment on our approach to address interference with 
maintenance with regard to this specific petition and whether the 
proposed emission limits are sufficient to eliminate the Portland 
Plant's interference with maintenance of the 1-hour SO2 
NAAQS in New Jersey.

V. Summary and Assessment of the Modeling and Other Data Relevant to 
EPA's Finding

A. Summary of the Modeling Submitted by NJDEP To Support the Petition

    NJDEP submitted several technical analyses in support of its 
section 126 petition. Among the submitted materials were a summary of 
the NJDEP dispersion modeling results, a modeling analysis for the 1-
hour SO2 NAAQS using AERMOD, a modeling analysis for the 1-
hour SO2 NAAQS using CALPUFF,\10\ and a trajectory analysis 
of high SO2 episodes at a SO2 monitor in Chester, 
New Jersey. In addition, the petition references a CALPUFF model 
validation study, which was submitted by NJDEP along with the previous 
(May 13, 2010) section 126 petition.
---------------------------------------------------------------------------

    \10\ CALPUFF is a non-steady-state puff dispersion model that 
was originally developed for the California Air Resources Board.
    \11\ NJDEP did not add background concentrations to any of the 
modeled concentrations in the table.
    \12\ Meteorological data used in the AERMOD modeling was based 
on the only site-specific meteorological data available for the 
Portland Plant, from July 1993 through June 1994, which satisfies 
the recommendations in Section 8.3.1 of Appendix W regarding the 
length of record for meteorological data.
---------------------------------------------------------------------------

    NJDEP submitted two different modeling analyses of the 
SO2 impacts from the Portland Plant on New Jersey. The first 
analysis (Exhibit 2 to the NJDEP petition) used the AERMOD dispersion 
model and the second analysis (Exhibit 3 to the NJDEP petition) used 
the CALPUFF dispersion model. Both models were run with both actual and 
allowable emissions rates and CALPUFF was also run with various 
meteorological input data. Each NJDEP model run showed modeled 
violations of the 1-hour SO2 NAAQS (i.e., showed annual 99th 
percentile of daily maximum 1-hour SO2 values at or above 
196 [mu]g/m\3\) in New Jersey.
    Table V.A-1 summarizes the CALPUFF and AERMOD 1-hour SO2 
NAAQS (196 [mu]g/m\3\, 99th percentile) modeling results submitted by 
NJDEP.

                           Table V.A-1--Summary of Modeling Results Submitted by NJDEP
----------------------------------------------------------------------------------------------------------------
                                                                                                       99th
                                                                                                    Percentile
                                                                                      Maximum       (4th high)
               Model                      Emissions             Meteorology           modeled         modeled
                                                                                   concentration   concentration
                                                                                   ([mu]g/m\3\)    ([mu]g/m\3\)
                                                                                                       \11\
----------------------------------------------------------------------------------------------------------------
AERMOD............................  Allowable............  July 1993-June 1994             3,700           1,402
                                                            \12\.
AERMOD............................  Estimated Actual.....  July 1993-June 1994..           1,713           467.3
CALPUFF...........................  Allowable............  2002 12km MM5........          15,273           3,455

[[Page 19669]]

 
CALPUFF...........................  Actual...............  2002 12km MM5........           6,740           2,194
CALPUFF...........................  Allowable............  2003 4km MM5.........          18,643           2,468
----------------------------------------------------------------------------------------------------------------

    As can be seen in the table V.A-1, each of the modeling analyses 
submitted by NJDEP shows modeled violations of the 1-hour 
SO2 NAAQS. The concentrations predicted by the CALPUFF model 
tend to be higher than those predicted by the AERMOD model. In 
addition, the model runs based on allowable emissions logically show 
higher concentrations than those based on actual emissions. The 
allowable emissions included in the NJDEP modeling are shown in Table 
V.A-2.

                               Table V.A-2
------------------------------------------------------------------------
                                                           Maximum 3-hr
                                           Allowable SO2   permit limit
           Portland Plant unit             rate  (lb/hr)    (tons per 3
                                                              hours)
------------------------------------------------------------------------
1.......................................           5,820            8.73
2.......................................           8,900           13.35
------------------------------------------------------------------------

    The petition also contained modeling of actual emissions for the 
2002 MM5 (mesoscale meteorological model) based CALPUFF case and this 
modeling run showed large exceedances of the 1-hour SO2 
NAAQS. Actual emissions were also modeled with AERMOD for the 1993-1994 
site-specific meteorology. As with the modeling based on allowable 
emissions, the AERMOD results with actual emissions were much lower 
than the CALPUFF results, but still showed significant exceedances of 
the 1-hour SO2 NAAQS. The 2002 CALPUFF modeling with actual 
emissions was based on actual SO2 emissions from CEMS data. 
The 1993-1994 actual emissions used with AERMOD were estimated based on 
monthly coal usage reports (CEMS data were not available for that 
period).
    The modeling submitted by NJDEP indicates actual emissions from the 
Portland Plant alone cause air quality in New Jersey to exceed the 1-
hour SO2 NAAQS. The NJDEP modeling also indicates that the 
Portland Plant's allowable emissions (i.e., the emissions the plant 
would emit if it were to emit at the level currently allowed) cause air 
quality in New Jersey to exceed the 1-hour SO2 NAAQS. The 
NJDEP AERMOD predictions of the 4th high daily 1-hour maximum 
concentrations (99th percentile) based on allowable emissions show a 
maximum concentration in New Jersey of 1,402 [mu]g/m\3\ (located on a 
ridge at the Delaware Water Gap (in New Jersey) approximately 7 
kilometers (km) from the Portland Plant stacks). The AERMOD modeling 
submitted by NJDEP also demonstrates that actual emissions from the 
Portland Plant are causing NAAQS exceedances in New Jersey. In 
addition, the CALPUFF predictions of the 4th high daily maximum 1-hour 
concentrations (99th percentile) based on allowable emissions are as 
high as 3,455 [mu]g/m\3\.
    The results of the NJDEP modeling based on both allowable and 
actual emissions indicate that emissions reductions would be needed at 
the Portland Plant in order to eliminate Portland's significant 
contribution to nonattainment in New Jersey.

B. EPA's Assessment of Modeling Submitted by NJDEP

    EPA evaluated several aspects of the NJDEP modeling to determine if 
the analyses followed EPA regulations and guidance for dispersion 
modeling. Among the key specific issues evaluated were the choice of 
model(s), modeling of actual vs. allowable emissions, and the 
application of site-specific meteorological data that were used as 
inputs to the AERMOD model. Additional technical details regarding the 
NJDEP modeling were also examined, as documented in the Modeling TSD.
1. NJDEP's Model Selection
    EPA first evaluated which model is most appropriate for use in 
these particular circumstances. As noted previously, NJDEP submitted 
both AERMOD and CALPUFF model results. Given the significant 
differences in the magnitude of predicted impacts associated with the 
Portland Plant emissions based on the use of the AERMOD model versus 
use of the CALPUFF model, identifying the most appropriate model for 
use in these circumstances was a key aspect of EPA's assessment. 
Section 4.2.2(b) of the ``Guideline on Air Quality Models,'' published 
as Appendix W to 40 CFR Part 51 (commonly referred to as ``Appendix 
W'') States that AERMOD is ``the recommended model'' ``[f]or a wide 
range of regulatory applications in all types of terrain.'' \13\ The 
modeling application under consideration in this section 126 petition 
is covered under this section of Appendix W since the transport 
distances of concern are less than 50 kilometers.
---------------------------------------------------------------------------

    \13\ Section 4.2.2 identifies other models that are recommended 
for specific applications that do not apply for the Portland Plant, 
e.g., the Buoyant Line and Point Source (BLP) dispersion model is 
recommended for cases where buoyant plume rise from line sources is 
important.
---------------------------------------------------------------------------

    The NJDEP petition acknowledges that AERMOD is the preferred model 
for near-field applications such as this, but suggests the use of 
CALPUFF may be appropriate under the alternative model provisions in 
Section 3.2.2b of Appendix W. Section 3.2 of Appendix W lists three 
separate conditions under which an alternative model may be approved 
for use, as follows:
    (1) If a demonstration can be made that the model produces 
concentration estimates equivalent to the estimates obtained using a 
preferred model;

[[Page 19670]]

    (2) If a statistical performance evaluation has been conducted 
using measured air quality data and the results of that evaluation 
indicate the alternative model performs better for the given 
application than a comparable model in Appendix A; or
    (3) If the preferred model is less appropriate for the specific 
application, or there is no preferred model.
    The NJDEP modeling documentation suggests that NJDEP's use of the 
CALPUFF model in support of this petition is based on condition (2) of 
Section 3.2.2b. NJDEP claims that CALPUFF was shown to have ``performed 
better and produced predictions of greater accuracy than AERMOD,'' \14\ 
and therefore satisfies condition (2) under Section 3.2.2b of Appendix 
W. NJDEP also claims that the use of CALPUFF is more appropriate for 
the specific application due to the complex winds addressed in Section 
7.2.8 of Appendix W \15\ and is therefore justified under condition (3) 
of Section 3.2.2b.
---------------------------------------------------------------------------

    \14\ See September 17, 2010 petition, Section IV, page 5.
    \15\ See May 13, 2010, petition, Section V, subsection B.
---------------------------------------------------------------------------

    For the reasons stated later, EPA determines that AERMOD is the 
appropriate modeling platform to use in these specific circumstances. 
This conclusion is based on the particular circumstances presented here 
and does not speak to whether it would be appropriate to use CALPUFF 
modeling in other situations.
a. CALPUFF Alternative Model Justification
    EPA issued a memo on August 13, 2008, providing ``Clarification of 
Regulatory Status of CALPUFF for Near-field Applications,'' \16\ (which 
applies to the application under review here). The key points 
emphasized in that memo are as follows:
---------------------------------------------------------------------------

    \16\ ``Clarification of Regulatory Status of CALPUFF for Near-
field Applications,'' memo from Richard A. Wayland, dated August 13, 
2008, available at https://www.epa.gov/ttn/scram/clarification%20of%20regulatory%20status%20of%20calpuff.pdf.
---------------------------------------------------------------------------

    1. The EPA-preferred model for near-field regulatory applications 
(less than 50 kilometers) for simple and complex terrain is AERMOD. The 
AERMOD model should be used for all near-field regulatory applications, 
unless an adequate determination is made that AERMOD is not appropriate 
for that application or is clearly less appropriate than an alternative 
model.
    2. CALPUFF is not the EPA-preferred model for near-field 
applications, but may be conside