5 Colo. Code Regs. § 1001-5-D-V

Current through Register Vol. 48, No. 1, January 10, 2025

Section 5 CCR 1001-5-D-V - Requirements Applicable to Nonattainment Areas

V.A. Major Stationary Sources.

For any new major stationary source or major modification, the Division shall grant a permit if it determines that the following conditions in Sections V.A.1. through V.A.6., as well as those in Section III.D.1. of Part B of this regulation, will be met:

V.A.1. The proposed source will achieve the lowest achievable emission rate for the specific source category.

V.A.2. The applicant has certified that all other existing major stationary sources owned, operated, or controlled by the applicant (or any entity controlling, controlled by, or under the common control with the applicant) in Colorado are in compliance with the requirements of the State implementation plan and the federally approved state implementation plan, or are subject to and in compliance with an enforceable compliance schedule, or a federally enforceable compliance schedule.

V.A.3. Prior to the date of commencement of operations, the ratio of total actual emission reductions compared to the emissions increase (offsets) shall be at least one for one (1:1), unless an alternative ratio is provided for the applicable nonattainment area as identified in Section V.A.3.a.

V.A.3.a. Offset Ratios

V.A.3.a(i) For ozone nonattainment areas that are subject to subpart 2, part D, title I of the Federal Act, the offset ratio of total actual emission reductions of VOC to the emissions increase of VOC shall be as follows:

V.A.3.a(i)(a) In any marginal nonattainment area for ozone - at least 1.1:1;

V.A.3.a(i)(b) In any moderate nonattainment area for ozone - at least 1.15:1;

V.A.3.a(i)(c) In any serious nonattainment area for ozone - at least 1.2:1;

V.A.3.a(i)(d) In any severe nonattainment area for ozone - at least 1.3:1; or

V.A.3.a(i)(e) In any extreme nonattainment area for ozone - at least 1.5:1.

V.A.3.a.(ii) For all areas within an ozone transport region that is subject to subpart 2, part D, title 1 of the Federal Act, and that are not designated as serious, severe or extreme and are subject to subpart 1, part D, title 1 of the Federal Act - at least 1.15:1.

V.A.3.a.(iii) For ozone nonattainment areas that are subject to subpart 1, part D, title I of the Federal Act, including 8-hour ozone nonattainment areas subject to 40 CFR, Part 51, Section 51.902(b), the ratio of total actual emissions reductions of VOC to the emissions increase of VOC shall be at least 1:1.

V.A.3.b. Offsets must be obtained from existing sources (whether or not under the same ownership) within the nonattainment area for each pollutant, or its precursors, for which the area is nonattainment. Offsets must represent reasonable further progress towards attainment of the National Ambient Air Quality Standards when considered in connection with other new and existing sources of emissions. In addition, offsets for PM10, PM2.5, sulfur oxides, and carbon monoxide must show, through atmospheric modeling, a positive net air quality benefit in the area affected by the emissions. Provided, however, that offsets meeting the requirements of this Section V.A.3. may also be obtained from existing sources outside the nonattainment area if the applicant demonstrates:

V.A.3.b.(i) A greater air quality benefit may thus be achieved, or sufficient offsets are not available from sources within the nonattainment area; and

V.A.3.b.(ii) The other area has an equal or higher nonattainment classification than the area in which the source is located; and

V.A.3.b.(iii) Emissions from such other area contribute to a violation of the National Ambient Air Quality Standard in the nonattainment area in which the source is located.

V.A.3.b.(iv) With respect to offsets obtained from outside the nonattainment area, the Division may increase the ratio of the required offsets to new emissions the greater the distance such offsets are from the new or modified source.

V.A.3.c. Offsets must be for the same regulated NSR pollutant, except that offset requirements for direct PM2.5 emissions or PM2.5 precursors may be satisfied by offsetting reductions in direct PM2.5 emissions or emissions of any PM2.5 precursor identified under Section II.A.40. of Part D.

V.A.4. The permit application shall include an analysis of alternative sites, sizes, production processes and environmental control techniques for such proposed source that demonstrates that benefits of the proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or modification.

V.A.5. Offsets for which emission reduction credit is taken must be enforceable through permit conditions or source specific state implementation plan revisions.

V.A.6. The applicant will demonstrate that emissions from the proposed source will not adversely impact visibility in a Class I area. This demonstration shall be reviewed by the Federal Land Manager and any determination made by the Federal Land Manager shall be considered in the Division's decision to grant the permit. If an adverse impact, as described in Section XIV.E., is predicted by the Division, the permit application will be denied. Federal Land Manager involvement shall follow the same procedures as stated in Section XIII.A. of this Part D. The demonstration will be performed using either techniques described in the latest version of the U.S. EPA document entitled "Workbook for Estimating Visibility Impairment" or other techniques approved by the Division.

V.A.7. Applicability of Certain Nonattainment Area Requirements

V.A.7.a. Any major stationary source in a nonattainment area is subject to the requirements of Section V.A. of this Part D.

V.A.7.b. The requirements of Section V.A. shall apply at such time that any stationary source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in any enforceable limitation that was established after August 7, 1980 on the capacity of the source or modification to otherwise emit a pollutant, such as a restriction on hours of operation.

V.A.7.c. The following provisions apply to projects at existing emissions units at a major stationary source (other than projects at a source with a PAL) in circumstances where there is a project that is not a part of a major modification and the owner or operator elects to use the method specified in Sections II.A.38.b.(i) through II.A.38.b.(iii) of this Part D for calculating projected actual emissions.

V.A.7.c.(i) Before beginning actual construction of the project, the owner or operator shall document and maintain a record of the following information:

V.A.7.c.(i)(A) A description of the project;

V.A.7.c.(i)(B) Identification of the emissions unit(s) whose emissions of a regulated NSR pollutant could be affected by the project; and

V.A.7.c.(i)(C) A description of the applicability test used to determine that the project is not a major modification for any regulated NSR pollutant, including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded under Section II.A.38.b.(iii) of this part and an explanation for why such amount was excluded, and any netting calculations, if applicable.

V.A.7.c.(ii) If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the owner or operator shall provide a copy of the information set out in Section V.A.7.c.(i) to the Division. Nothing in this Section V.A.7.c.(ii) shall be construed to require the owner or operator of such a unit to obtain any determination from the Division before beginning actual construction.

V.A.7.c.(iii) The owner or operator shall monitor the emissions of any regulated NSR pollutant that could increase as a result of the project and that is emitted by any emissions units identified in Section V.A.7.c.(i)(B); and calculate and maintain a record of the annual emissions, in tons per year on a calendar year basis, for a period of five years following resumption of regular operations after the change, or for a period of ten years following resumption of regular operations after the change if the project increases the design capacity or potential to emit of that regulated NSR pollutant at such emissions unit.

V.A.7.c.(iv) If the unit is an existing electric utility steam generating unit, the owner or operator shall submit a report to the Division within sixty days after the end of each year during which records must be generated under Section V.A.7.c.(iii) setting out the unit's annual emissions during the calendar year that preceded submission of the report.

V.A.7.c.(v) If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the Division if the annual emissions, in tons per year, from the project identified in Section V.A.7.c.(i), exceed the baseline actual emissions (as documented and maintained pursuant to Section V.A.7.c.(i)(C)) by a significant amount (as defined in Section II.A.44. of this part) for that regulated NSR pollutant, and if such emissions differ from the preconstruction projection as documented and maintained pursuant to Section V.A.7.c.(i)(C). Such report shall be submitted to the Division within sixty days after the end of such year. The report shall contain the following:

V.A.7.c.(v)(A) The name, address and telephone number of owner or operator of the major stationary source;

V.A.7.c.(v)(B) The annual emissions as calculated pursuant to Section V.A.7.c.(iii); and

V.A.7.c.(v)(C) Any other information that the owner or operator wishes to include in the report (e.g., an explanation as to why the emissions differ from the preconstruction projection).

V.A.7.d. The owner or operator of the source shall make the information required to be documented and maintained pursuant to Section V.A.7.c. available for review upon request for inspection by the Division or the general public.

V.A.8. Exemptions from certain nonattainment area requirements:

V.A.8.a. The following are exempt from the major stationary source criteria of Section V.A.3. of this part.

V.A.8.a.(i)(A) Portable sources that will relocate outside a nonattainment area in less than one year.

V.A.8.a.(i)(B) Each pilot plant that operates an aggregate of less than six months.

V.A.8.a.(i)(C) Construction phases of a new or modified building, facility, structure, or installation. These may, at the discretion of the Division, exceed a period of one year.

V.A.8.a.(i)(D) Other temporary processes or activities of less than one year in duration.

V.A.8.a.(i)(E) Sources undergoing fuel switches as required by federal order if the Division determines that:

V.A.8.a.i(E)(1) The applicant has used best efforts in seeking the required emission offsets but was unsuccessful;

V.A.8.a.i(E)(2) All available emission offsets were obtained; and,

V.A.8.a.i(E)(3) The applicant will continue to seek emission offsets as they become available.

5 CCR 1001-5-D-V

37 CR 18, September 25, 2014, effective 10/15/2014

37 CR 24, December 25, 2014, effective 1/14/2015

39 CR 04, February 25, 2016, effective 3/16/2016

39 CR 21, November 10, 2016, effective 11/30/2016

41 CR 21, November 10, 2018, effective 11/30/2018

43 CR 02, January 25, 2020, effective 2/14/2020

44 CR 02, January 25, 2021, effective 2/14/2021

46 CR 02, January 25, 2022, effective 2/14/2023

46 CR 12, June 25, 2023, effective 7/15/2023

47 CR 06, March 25, 2024, effective 4/15/2024

47 CR 12, June 25, 2024, effective 7/15/2024