  SEQ CHAPTER \h \r 1 Technical Support Document

NOx RACT SIP Revision - State of New Jersey

March 5, 2007

INTRODUCTION……………………………………………………
…………………...2

CLEAN AIR ACT REQUIREMENTS FOR NOx RACT AND OZONE ATTAINMENT AND NEW
JERSEY’S NOx RACT
REGULATION…………………………………......3

 NOx RACT and Due
Dates………………………………………………………….
....3

 Applicability of NOx
RACT………………………………………………………..…
.3

 History of New Jersey’s NOx RACT Regulation
………………….……………….....4

 Enforceability of Subchapter 19
……………………………………….……………...5

 Ozone Attainment
Requirements………………………………………….………..
.…5

EPA’S ANALYSIS OF STATE
SUBMITTAL………………………………….……….7

Procedural
Background……………………………………………………
……..……7

The Open Market Emissions Trading (OMET) Program
Provisions………………….8

Subchapter 19: “Control and Prohibition of Air Pollution from Oxides
of Nitrogen”...9

1.  N.J.A.C. 7:27-19.1:
Definitions……………………………………………….…..1
1

2.  N.J.A.C. 7:27-19.2: Purpose, scope and
applicability………………………….….11

3.  N.J.A.C. 7:27-19.3: General
Provisions…………………………………………...15

4.  N.J.A.C. 7:27-19.4: Boilers serving electric generating
units……………………..16

5.  N.J.A.C. 7:27-19.5: Stationary combustion
turbines……………………………...16

6.  N.J.A.C. 7:27-19.6: Emissions
averaging…………………………………………19

7.  N.J.A.C. 7:27-19.7: Industrial/commercial/institutional boilers and
other indirect heat
exchangers……………………………………………………
………………….19

8.  N.J.A.C. 7:27-19.8: Stationary reciprocating
engines………………………….….21

9.  N.J.A.C. 7:27-19.9: Asphalt
plants…………………………………………….….24

10.  N.J.A.C. 7:27-19.10: Glass manufacturing
plants…………………………….….24

11.  N.J.A.C. 7:27-19.11: Emergency generators –
recordkeeping………………..….25

12.  N.J.A.C. 7:27-1912:
(Reserved)………………………………………………….25

13.  N.J.A.C. 7:27-19.13: Facility-specific NOx emission
limits……………………..25

14.  N.J.A.C. 7:27-19.14: Procedures for obtaining approval under this
subchapter…26

15.  N.J.A.C. 7:27-19.15: Procedures and deadlines for demonstrating
compliance....26

16.  N.J.A.C. 7:27-19.16: Adjusting combustion
processes………………………….27

17.  N.J.A.C. 7:27-19.17: Source emission
testing…………………………………...28

18.  N.J.A.C. 7:27-19.18: Continuous emission
monitoring……..……………….…..28

19.  N.J.A.C. 7:27-19.19: Recordkeeping and
recording………………………….….29

20.  N.J.A.C. 7:27-19.20: Fuel
switching………………………………………….….29

21.  N.J.A.C. 7:27-19.21: Phased compliance –
repowering…………………………29

22.  N.J.A.C. 7:27-19.22: Phased compliance – impracticality of full
compliance by

May 31,
1995…………………………………………………………
………………30

23.  N.J.A.C. 7:27-19.23: Phased compliance – use of innovative
control technology30

24.  N.J.A.C. 7:27-19.24: MEG
alerts………………………………………………..31

25.  N.J.A.C. 7:27-19.25: Exemption for emergency use of fuel
oil……………..….32

26.  N.J.A.C. 7:27-19.26:
Penalties…………………………………………….……32

27.  N.J.A.C. 7:27-19.27: Use of NOx budget allowances by a former DER
credit
user…………………………………………………………
………………….…….32

Subchapter  8: “Permits and Certificates for Minor Facilities (and
Major Facilities Without an Operating
Permit)”………………………………………………….32

Subchapter 16: “Control and Prohibition of Air Pollution by Volatile
Organic
Compounds”……………………………………………………
…………….….32

1.  N.J.A.C. 7:27-16.1:
Definitions…………………………………………….…….33

	      2.  N.J.A.C. 7:27-16.1A: Purpose, scope, applicability, and
severability……………34

3.  N.J.A.C. 7:27-16.8:
Boilers……………………………………………….………3
4

4.  N.J.A.C. 7:27-16.9: Stationary combustion
turbines…………………….…….…34

5.  N.J.A.C. 7:27-16.10 Stationary reciprocating
engines…………………….……...35

6.  Emergency
generators…………………………………………………….
………35

7.  Discrete emission reduction
credits………………………………………………35

Subchapter 22: Operating
Permits…………………………………………………...35

IV.
CONCLUSION……………………………………………………
……………………..35

I.	INTRODUCTION  TC \l1 "I.	INTRODUCTION

	Title I of the Clean Air Act Amendments of 1990 (the Act or CAA)
contains many new and revised requirements for areas that have not
attained the national ambient air quality standard for ozone.  Section
182(f) of the Act requires States to apply the same requirements to
major stationary sources of nitrogen oxides (NOx), as defined by §§
302 and 182(c), (d), and (e) of the Act, as are applied to major
stationary sources of volatile organic compounds (VOC).  The new NOx
requirements are reasonably available control technology (RACT)  and new
source review for major stationary sources in certain ozone
nonattainment areas and throughout any ozone transport region.

	On November 25, 1992, the Environmental Protection Agency (EPA)
published a NOx Supplement to the General Preamble (NOx Supplement) to
provide guidance on implementation

of new provisions of the Act concerning emissions of NOx.  57 Fed. Reg.
55620 (Nov. 25, 1992).  The reader should refer to “The General
Preamble for Implementation of Title I of the Clean Air Act
Amendments,” 57 Fed. Reg. 13498 (Apr. 16, 1992), and the NOx
Supplement for a more detailed discussion of the other NOx requirements.

This technical support document (TSD) deals primarily with the State of
New Jersey Department of Environmental Protection's (NJDEP's) State
Implementation Plan (SIP) revision to

the ozone SIP, submitted to address the additional NOx emissions
reduction needed to meet the shortfall emissions reduction identified by
EPA in NJDEP’s 1-hour ozone attainment SIP.

II.	CLEAN AIR ACT REQUIREMENTS FOR NOx RACT AND OZONE ATTAINMENT; AND
NEW JERSEY’S NOx RACT REGULATION  TC \l1 "II.	DESCRIPTION OF NOx RACT
REQUIREMENTS AND NEW JERSEY'S NOx RACT REGULATION

A.	NOx RACT and Due Dates   TC \l2 "A.	NOx RACT and Due Dates

	Section 182(f) of the Act provides that SIP provisions required for
major stationary sources of VOC also apply to major stationary sources
of NOx.  Section 182(b)(2) of the Act requires States in which
nonattainment areas are classified as “moderate,” or a higher
classification, to submit RACT rules for major stationary sources of VOC
emissions by November 15, 1992.  Therefore, States must submit RACT
rules for major stationary sources of NOx emissions in moderate
nonattainment areas and nonattainment areas with a higher classification
by November 15, 1992, and must provide for the implementation of the
required measures as expeditiously as practicable, but no later than May
31, 1995.

B.	Applicability of NOx RACT  TC \l2 "B.	Applicability of NOx RACT

	Major sources of NOx are subject to the same requirements as major
sources of VOC compounds.  Thus, the NOx RACT provisions apply to major
sources of NOx in ozone nonattainment areas moderate or higher and
throughout an ozone transport region.

	Section 184(b)(2) of the Act requires any source of VOC which emits or
has a potential to emit (PTE) of 50 tons per year (TPY) in ozone
transport regions to be subject to the same requirements that apply to
major sources in ozone areas classified as moderate, unless a portion of
the State has been excluded from the ozone transport region under CAA §
176(a)(2).  Thus, where a State is designated in its entirety as a
transport region, the State must adopt rules to apply provisions for
ozone to any source which emits or has a PTE of 50 TPY of VOC compounds
statewide.  The Northeastern portion of the United States has been
designated an ozone transport region.  Thus, CAA § 184(b)(2) requires
that all areas in northeastern states designated as
attainment/unclassified, as well as all ozone nonattainment areas, must
meet the RACT requirements for NOx.

	Section 182(f) of the Act specifically provides that major stationary
sources of NOx are to be defined by § 302 of the Act.  Section 302(j)
provides that a major stationary source is one with a PTE of 100 TPY.
Because the CAA § 182(f) definition refers specifically to the CAA §
302 definition, the specific 50 TPY requirement for VOC major stationary
sources in an ozone transport region is limited to VOC sources.
Therefore in ozone transport regions, attainment/unclassified areas as
well as marginal and moderate ozone nonattainment areas, a major
stationary source for NOx is considered to be one which emits or has the
PTE of 100 TPY or more of NOx, and is subject to the requirements of a
moderate nonattainment area.  See NOx Supplement, 57 Fed. Reg. 55620
(Nov. 25, 1992).  NJDEP has defined a major stationary source for NOx as
a source which has the PTE of 25 TPY, the level set for severe 1-hour
ozone nonattainment areas.

C.	History of New Jersey's NOx RACT Regulation  TC \l2 "C.	New Jersey's
NOx RACT Regulation

	NJDEP developed the NOx RACT regulation, Subchapter 19.  NJDEP held
public hearings on March 18 and 19, 1993, to hear public comments on the
proposed rule.  Following the public hearings and the comment period,
New Jersey adopted Title 7, Chapter 27, Subchapter 19, of the New Jersey
Administrative Code (Subchapter 19 or N.J.A.C. 7:27-19), entitled
“Control and Prohibition of Air Pollution from Oxides of Nitrogen,”
on November 15, 1993.  NJDEP submitted Subchapter 19 to EPA as a
revision to the SIP on November 15, 1993.  EPA reviewed the SIP revision
and found it to be administratively and technically complete by December
29, 1993.  On October 2, 1995, EPA proposed a full approval of NJDEP's
Subchapter 19.  60 Fed. Reg. 51379 (Oct. 2, 1995).  The public comment
period ended November 1, 1995.  EPA did not receive any comments on the
proposed full approval.  However, during this public comment period,
discussions developed among regional EPA offices as to the approvability
of regulations, such as NJDEP’s Subchapter 19, containing generic or
“process oriented” provisions establishing RACT requirements for
major sources of NOx and/or VOC emissions.  The approvability issue
related to Subchapter 19's generic provision was resolved and EPA
approved Subchapter 19.  60 Fed. Reg. 51379 (Jan. 27, 1997).  Subchapter
19 became effective on February 26, 1997.

	On March 24, 1995, NJDEP adopted amendments to Subchapter 19.  NJDEP
submitted the amended Subchapter 19 to EPA as a SIP revision on June 21,
1996.  EPA found the SIP revision to be administratively and technically
complete by September 26, 1996.  On August 31, 1998, EPA proposed a full
approval of NJDEP's Subchapter 19.  63 Fed. Reg. 46209 (Aug. 31, 1998).
The public comment period ended September 30, 1998.  EPA did not receive
any comments on the proposed full approval.  EPA approved NJDEP's
amendments to Subchapter 19.  64 Fed. Reg. 14832 (Mar. 29, 1999).  The
amendments became effective on April 28, 1999.

	On July 1, 1996, NJDEP adopted additional amendments to Subchapter 19.
NJDEP amended Subchapter 19 to make the regulation consistent with a new
program called the Open Market Emissions Trading (OMET) Program at
Subchapter 30 (for further discussion of the OMET program, see III.B of
this TSD).  On October 27, 1998, NJDEP submitted the amended Subchapter
19 to EPA as part of the OMET Program SIP revision.  EPA determined the
submittal to be administratively and technically complete on December
22, 1998.  On January 9, 2001, EPA proposed a conditional approval of
NJDEP’s OMET Program SIP revision, including the corresponding
amendments to Subchapter 19.  66 Fed. Reg. 1796 (Jan. 9, 2001).  The
public comment period ended March 12, 2001.  Subsequently, EPA and NJDEP
identified a number of problems with the OMET Program.  On October 18,
2002, EPA announced it would cease processing the OMET Program SIP
revision and withdrew its proposed conditional approval.  67 Fed. Reg.
64347 (Oct. 18, 2002).  On February 25, 2004, NJDEP terminated the OMET
Program and repealed Subchapter 30 through rulemaking.  NJDEP also
amended Subchapter 19 on April 5, 2004 (effective date), to delete those
provisions related to the OMET Program, and to include new provisions
for sources that participated in the OMET Program to comply with RACT.
In an April 26, 2004 letter, EPA notified NJDEP that the new provisions
proposed in Subchapter 19 were not consistent with the Act and EPA’s
RACT guidance and, therefore, were not approvable as a SIP

revision.  The corresponding OMET amendments to Subchapter 19 that dealt
with sources that availed themselves of the OMET Program were not
repealed.  Therefore, they are still part of the rules in the NJDEP SIP
submittal dated December 16, 2005.  NJDEP committed to delete the OMET
provisions from Subchapter 19, and related rules, in future rulemaking.

	It should be noted that, since the July 1, 1996 adoption, NJDEP adopted
administrative

changes and amendments to Subchapter 19 four additional times without
submitting the revised regulations to EPA for approval as SIP revisions.
 The four additional amendments include the following effective dates:
May 4, 1998 (29 N.J.R. 3521(a); 30 N.J.R. 1563(b)); Administrative
change on March 1, 1999 (31 N.J.R. 639); May 15, 2000 (31 N.J.R.
1671(a); 32 N.J.R. 1808(a)); and April 5, 2004 (35 N.J.R. 3486(a); 36
N.J.R. 1791(a)).   This TSD addresses these four additional amendments
because they are included in the codified version of this SIP revision.

D.	Enforceability of Subchapter 19  TC \l2 "E.	Enforceability of
Subchapter 19

	For sources not subject to specific emission limitations or work
practice standards, N.J.A.C. 7:27-19.13 provides a procedure and
schedule that must be followed in order to comply with the Subchapter.
Noncompliance with this procedure would constitute a violation of
Subchapter 19, which would subject the source owner or operator to civil
and/or criminal penalties, as applicable.  EPA believes this is
sufficient to ensure that sources comply and should EPA have to take
enforcement action, it could use the same provisions to obtain
compliance.

	EPA will process all source-specific SIP revisions submitted by NJDEP,
regardless of the

status of EPA approval of Subchapter 19, provided that NJDEP complies
with the following:

	-  provide evidence that NJDEP has the necessary legal authority under
State law to 	approve and implement the compliance plan with reference
to appropriate State laws and 	regulations;

	-  provide a description of the enforcement procedure NJDEP will use
should it discover a 	violation;

	-  provide a description of the compliance strategy NJDEP will use to
ensure compliance; 	and

	-  include a copy of any relevant permits which are contained in the
compliance plan.  For 	"grandfathered" sources, the compliance plan must
identify the applicable enforceable

	requirements or restrictions.

Ozone Attainment Requirements

  SEQ CHAPTER \h \r 1 	Section 182 of the Act specifies the required SIP
submissions and requirements for areas classified as nonattainment for
ozone and when these submissions and requirements are to be

submitted to EPA.  The specific requirements vary depending upon the
severity of the ozone problem.  The New York-Northern New Jersey-Long
Island area and the Philadelphia, Wilmington, Trenton area are
classified as severe ozone nonattainment areas.  Under section 182,
severe ozone nonattainment areas were required to submit demonstrations
of how they would attain the 1-hour ozone standard.  On December 16,
1999, EPA proposed approval of New Jersey’s 1-hour ozone attainment
demonstration SIP, submitted to EPA on August 31, 1998, for the New
York-Northern New Jersey-Long Island area and the Philadelphia,
Wilmington, Trenton area.  64 Fed. Reg. 70380 (Dec. 16, 1999).  In that
rulemaking, EPA identified an emission reduction shortfall (shortfall)
for VOC and NOx emissions, associated with New Jersey’s 1-hour ozone
attainment demonstration SIP.  EPA required New Jersey to address the
shortfall.  On April 26, 2000, NJDEP submitted a revision to the 1-hour
ozone attainment demonstration SIP, which addressed the shortfall
identified by EPA’s December 1999 proposal.  In a related matter, the
Ozone Transport Commission (OTC) developed six model rules, including
one rule for NOx emissions from major stationary sources, which provided
control measures for a number of source categories and estimated
emission reduction benefits from implementing these model rules. 2
These model rules were designed for use by states in developing their
own regulations to achieve additional emission reductions to close
shortfalls.

	On February 4, 2002, EPA approved New Jersey’s 1-hour ozone
attainment demonstration SIP.  67 Fed. Reg. 5152 (Feb. 4, 2002).  The
deadline for attainment of the 1-hour ozone standard in the New
York-Northern New Jersey-Long Island area and the Philadelphia,
Wilmington, Trenton area is November 15, 2007 and November 15, 2005,
respectively.  This approval included an enforceable commitment
submitted by New Jersey to adopt additional control measures to close
the shortfall.  To date, EPA has approved all of New Jersey’s SIPs for
ozone concerning the control of VOC emissions needed to meet the
shortfall.  EPA previously approved the NJDEP ozone SIP submittals that
incorporated OTC model rule control measures as SIP revisions.  The
EPA-approved ozone SIPs relate to VOC control measures as follows: (1)
amendments to Subchapter 16, “Control and Prohibition of Air Pollution
by Volatile Organic Compounds,” which controls VOCs from mobile
equipment repair and refinishing operations, solvent cleaning
operations, and refueling of motor vehicles at gasoline service
stations, 69 Fed. Reg. 40321 (July 2, 2004); (2) amendments to
Subchapter 23, “Prevention of Air Pollution From Architectural
Coatings,” 70 Fed. Reg. 71774 (Nov. 30, 2005); and (3) Subchapter 24,
“Prevention of Air Pollution From Consumer Products,” which includes
control measures for consumer products and portable fuel containers, 71
Fed. Reg. 4045 (Jan. 25, 2006).

	On December 16, 2005, NJDEP submitted Subchapter 19 and related rules,
this sixth and

final ozone SIP, to EPA.  NJDEP adopted Subchapter 19 in September 2005.
 This submittal, once approved as a SIP revision, addresses the
State’s commitment for additional NOx

control measures to meet the shortfall.  Therefore, EPA will not proceed
with a proposed Finding of Failure to Implement, 69 Fed. Reg. 30249 (May
27, 2004).

	This TSD provides EPA’s analysis and approvability determination of
amendments to New Jersey’s SIP for ozone, Subchapter 19, “Control
and Prohibition of Air Pollution from Oxides of Nitrogen.”

EPA’S ANALYSIS OF STATE SUBMITTAL

Procedural Background

On September 20, 2004, NJDEP proposed a new rule and amendments to
Subchapter 19, and other related amendments to Subchapter 8 (“Permits
and Certificates for Minor Facilities and Major Facilities Without an
Operating Permit”), Subchapter 16 (“Control and Prohibition of Air
Pollution by Volatile Organic Compounds”), Subchapter 22 (“Operating
Permits (for Major Facilities)”), and N.J.A.C. 7-27A-3 (“Civil
Administrative Penalties and Requests for Adjudicatory Hearings”).  36
N.J.R. 4228 (Sept. 20, 2004).  NJDEP held a public hearing on the
proposed amendments on Thursday, October 28, 2004, and accepted written
comments until November 19, 2004.  In a November 19, 2004 letter to
NJDEP, EPA submitted comments on the proposed amendments to Subchapter
19 and related amendments to Subchapters 8 and 16.  EPA did not provide
comments on the amendments to Subchapter 22.

On September 8, 2005, NJDEP adopted the new rule and amendments to
Subchapter 19 and related amendments to Subchapters 8, 16, and 22.  The
new rule and amendments became operative on November 7, 2005.  On
December 16, 2005, NJDEP submitted the new rule and amendments as a SIP
revision for EPA approval.  EPA reviewed the SIP revision and on January
25, 2006, determined it to be administratively and technically complete
in accordance with the completeness criteria set out at 40 C.F.R. Part
51, Appendix V.  This TSD is the next step in EPA’s rulemaking.

Except for certain OMET Program provisions in Subchapters 8, 16, and 19,
and compliance dates beyond November 15, 2007 for repowering and
innovative control technology, as discussed later in this TSD, EPA
proposes to fully approve the SIP revision submitted to EPA on December
16, 2005.  NJDEP’s SIP revision consists of the following documents:

Letter of transmittal dated December 16, 2005 from Bradley M. Campbell,
NJDEP Commissioner to Alan J. Steinberg, EPA Region 2 Administrator.

Attachment 1 - Documentation of Compliance with Public Notice
Requirements.

Attachment 2 - Copies of legal advertisement and affidavits of its
publication.

Attachment 3 - Copy of the New Jersey Register Notice of the Proposal.

Attachment 4 - Copy of the Adoption, as published in the New Jersey
Register on October 17, 2005.  37 N.J.R. 3976 (Oct. 17, 2005).  The
document includes NJDEP’s responses to public comments.

Attachment 5 – Summary of key provisions to NOx and Permit rules.

Recommended Action: Proposed Approval of Subchapters 19 and 16.

	EPA will take action on Subchapter 8 in a separate Federal Register
Notice.  Subchapter 22 addresses the title V program and is not included
as part of the SIP.  EPA will provide its official analysis of the
revisions to Subchapter 22 to in a letter to NJDEP.

B.	The OMET Program Provisions

	According to an agreement between EPA and NJDEP, New Jersey’s
submittal of Subchapter 19 for EPA approval does not include provisions
or language pertaining to the OMET program.  Accordingly, any
recommended approvals set forth in this TSD should not be construed as
EPA approval of any part of the OMET Program or any compliance date that
allows for compliance beyond May 31, 1995 or May 31, 1999 for sources
availing themselves of the repowering option pursuant to the OMET
Program.  EPA expects that NJDEP will remove all provisions and language
pertaining to the OMET Program in future revisions to Subchapter 19.

	After repealing the OMET Program, NJDEP amended N.J.A.C. 7:27-19.3(g)
and (h) to include compliance requirements, including new compliance
dates which did not comport with compliance dates required by the CAA,
for sources that previously complied with Subchapter 19 with the use of
discrete emission reductions credits (DERs) pursuant to the OMET
program.  NJDEP also added the term ‘former DER credit user’ to
N.J.A.C. 7:27-19.1 to refer to sources that used DERs.  During the
public comment period for the proposed Subchapter 19, EPA commented that
NJDEP should delete the April 25, 2004 amendments which included OMET
provisions at N.J.A.C. 7:27-19.3(g) and (h) (as well as other OMET
related provisions at 8.3(o), 8.20(b)(3), 16.2A(g), 16.1A(h), 19.27 and
19.27 Appendix), “…which are not in the Federally approved SIP, to
assure that the codified Subchapters 16 and 19 can be fully approved as
revisions to the SIP.”  Comment 130, 37 N.J.R. 3991 (Oct. 17, 2005).
NJDEP responded that most of the OMET sources now comply with Subchapter
19.  In addition, in the SIP submittal letter dated December 16, 2005,
former NJDEP Commissioner Bradley M. Campbell, committed that the OMET
“provisions and related provisions in other rules will be deleted in
the future.”

	EPA agrees with NJDEP that most of the OMET-related sources are either
in compliance or will be in compliance in the near future with
Subchapter 19’s NOx emission requirements.  EPA and NJDEP are working
towards bringing the remaining sources into compliance.

EPA proposes to approve N.J.A.C. 7:27-19.1 and N.J.A.C. 7:27-19.3, but
takes no action on provisions contained in those sections that relate to
the repealed OMET Program.  Since EPA never approved Subchapter 30 OMET
Program as part of the SIP, these provisions in Subchapter 19 and in
other rules have no impact on the federal RACT requirements.

	N.J.A.C. 7:27-19.27 and 19.27 Appendix provides for “Use of NOx
budget allowances by a former DER credit user.”  The State adopted the
provision and its appendix subsequent to the most recent EPA-approved
Subchapter 19 SIP, submitted on March 24, 1995.  N.J.A.C. 7:27-19.27 and
19.27 Appendix include compliance requirements for sources that
previously complied with Subchapter 19 by using DERs.  EPA takes no
action on this provision and understands that (1) no sources have used
this compliance option; (2) the date for sources to apply for this
option has expired; and (3) NJDEP will remove this provision from
Subchapter 19 in the future.

	Finally, N.J.A.C. 7:27-16.1A(g)-(h) contains references to the use of
DERs to come into compliance with the requirements of Subchapter 16.
The options were available in the past,

but with the repeal of the OMET program, they are no longer an option.
The State has agreed to remove N.J.A.C. 7:27-16.1A(g)-(h) from
Subchapter 16 as soon as possible.

C.	Subchapter 19: “Control and Prohibition of Air Pollution from
Oxides of Nitrogen”

As previously stated, the purpose of submitting the new rule and
amendments to EPA for approval as a revision to NJDEP’s SIP for ozone,
is to meet the State’s April 2000 SIP commitment to control additional
NOx emissions and to address the NOx emission reduction shortfall
identified by EPA in December 1999 for attainment of the 1-hour ozone
standard.  Due to ongoing litigation in S. Coast Air Quality Management
Dist. v. EPA, 2006 U.S. App. LEXIS 31451, it is unclear whether the
1-hour ozone standard has since been revoked.  In any event, additional
NOx reductions are needed to help the State attain the new 8-hour ozone
standard and to meet the State’s commitment to EPA for the 1-hour
ozone standard SIP revision.  NJDEP has stated that these rule changes
are based on model rules and MOU’s developed by the OTC.  A brief
summary of the new rule and primary amendments to Subchapter 19 are as
follows:

1. NOx limits have been made more stringent for gas combustion in large
industrial/commercial/institutional (ICI) boilers and for oil combustion
in large turbines.  In addition, the applicability threshold for
combustion turbines is lowered from a maximum gross heat input rate of
30 million BTU per hour (MM BTU/hr) to 25 MM BTU/hr.  The compliance
date for meeting the new NOx limits is March 7, 2007.

2. NOx limits for existing stationary reciprocating engines used for
generating electricity  have been made more stringent and the
applicability threshold has been lowered from 500 brake

horsepower (bhp) (370 kW) to as low as 50 bhp (37 kW).  In addition, NOx
limits are established for new or modified reciprocating engines used
for generating electricity.  The compliance date is March 7, 2007.

3. The existing requirements for annual tune up of the combustion
process have been

≥ 20 MM BTU/hr to 2010 for smaller boilers (≥ 5.0 MM BTU/hr < 10 MM
BTU/hr).

In addition, an annual tune-up is required for stationary reciprocating
engines (REs), used for generating electricity, with maximum rated power
output of ≥ 50 bhp.  N.J.A.C. 7:27-19.8(f).  An annual tune-up is
already required of REs subject to VOC emission limits with a maximum
rated horsepower of ≥ 500 bhp.  N.J.A.C. 7:27-16.10(e).  Procedures
for adjustment of the combustion process for REs remains unchanged.
N.J.A.C. 7:27-19.16 (g) and (h))

4. Emergency generators may only be used for emergencies and testing
purposes, and not for peaking power.  In addition, the definition of
emergency has been expanded to voltage reductions (brownouts), in
addition to power disruptions (blackouts).  Finally, the limitation of
500 hours of emergency use per year has been deleted as New Jersey
believes it is an unnecessary and inappropriate restriction on emergency
use.  A new provision to the rule, N.J.A.C. 7:27-19.11 (Emergency
generators – recordkeeping), requires recordkeeping by sources to
ensure emergency generators are used only for testing and emergencies.
NJDEP refers to N.J.A.C. 7:27-19.11 as the new rule.

5. Owners or operators of newly affected sources of stationary
combustion turbines, ICI boilers and indirect heat exchangers, and REs,
defined at N.J.A.C. 7:27-19.5 (d), N.J.A.C. 7:27- 19.7 (h), and N.J.A.C.
7:27- 19.8(e), respectively, are required to submit a proposed NOx
control plan by February 7, 2006 to NJDEP.  N.J.A.C. 7:27-19.13(b).
Compliance requirements may also include emissions averaging, N.J.A.C.
7:27-19.6, alternative maximum allowable emission rate, N.J.A.C.
7:27-19.13, phased compliance through repowering with a completion date
no later than November 7, 2009, N.J.A.C. 7:27-19.21, and phased
compliance through the use of innovative control technology to be
implemented by November 7, 2009, N.J.A.C. 7:27-19.23.  Seasonal fuel
switching is not a compliance option.  N.J.A.C. 7:27-19.20.  EPA is not
approving the phased compliance plans because they allow source NOx
reductions to be achieved beyond the November 15, 2007 1-hour ozone
attainment deadline for the New York-Northern New Jersey-Long Island
area.  EPA expects New Jersey to delete these sections in future
rulemakings.  It should be noted that New Jersey received no
applications for phased compliance plans before the plan application
deadline of February 7, 2006.

	The following is a description of the new rule and amendments to
Subchapter 19, on a section by section basis.  The last EPA-approved
Subchapter 19 SIP had an effective date of

April 17, 1995.  Each description includes EPA’s analysis of each
section and a recommendation for either approval or disapproval.

  N.J.A.C. 7:27-19.1: Definitions

	NJDEP added the following twenty-seven new terms or definitions to
N.J.A.C. 7:27-19.1:  ‘boiler serving an electric generating unit,’
‘brake horsepower or bhp,’ ‘brake horsepower-hour or bhp-hr,’
‘budget source,’ ‘Clean Air Act,’ ‘combustion turbine,’
‘construction engine,’ ‘dual-fuel engine,’ ‘electric
distribution system,’ ‘emergency,’ ‘facility-wide permit,’
‘fuel-bound nitrogen,’ ‘gas or gaseous fuel,’
‘industrial/commercial/institutional boiler,’ ‘internal combustion
engine,’ ‘KW or kW,’ ‘modify or modification,’ ‘MW,’
‘natural gas,’ ‘NESHAP,’ ‘net energy output,’ ‘output,’
‘power outage,’ ‘preconstruction permit or permit,’ ‘rated
power output,’ ‘reciprocating engine,’ and ‘voltage
reduction.’  NJDEP added these new terms and definitions to address
amended provisions or to further clarify existing provisions.

	NJDEP deleted the following four definitions from N.J.A.C. 7:27-19.1:
‘gas turbine,’ ‘horsepower hour,’ ‘non-utility boiler’ and
‘utility boiler.’  The deleted terms have been replaced with the
following respective new terms: ‘combustion turbine,’ ‘brake
horsepower-hour,’ ‘industrial/commercial/institutional or ICI
boiler’ and ‘boiler serving an electric generating unit.’

	NJDEP revised the following nineteen terms or definitions to N.J.A.C.
7:27-19.1: ‘alteration,’ ‘continuous monitoring system or CMS,’
‘dry bottom boiler serving the electric generating unit,’ ‘duct
burner,’ ‘electric distribution company,’ ‘emergency
generator,’ ‘Lb/MMBTU,’ ‘lean-burn engine,’ ‘maximum
allowable emission rate,’ ‘NESHAP,’ ‘operating certificate or
certificate,’ ‘PJM,’ ‘regenerative cycle combustion turbine,’
‘rich-burn engine,’ ‘simple cycle combustion turbine,’ ‘state
implementation plan,’ ‘stationary combustion turbine,’
‘stationary reciprocating engine,’ ‘VOC list of compounds.’  The
revisions are primarily word changes to the terms or clarifications to
the definitions.

	NJDEP’s amendments to the definitions in N.J.A.C. 7:27-19.1 clarify
the terms in Subchapter 19 and, therefore, EPA proposes to approve the
amendments to N.J.A.C. 7:27-19.1.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.1 with
exception noted in section III.B of this TSD.

N.J.A.C. 7:27-19.2: Purpose, scope and applicability

	The amendments to N.J.A.C. 7:27-19.2 include the new and amended terms
as defined in N.J.A.C. 7:27-19.1.  The amendments to N.J.A.C. 7:27-19.2
(a) expand the applicability of N.J.A.C. 7:27-19.2(b) and N.J.A.C.
7:27-19.2(c) expands Subchapter 19 applicability for some types of
equipment located at major and non-major facilities for NOx emissions.

	Specifically, N.J.A.C. 7:27-19.2(b) and (c) are amended such that on or
after March 7, 2007, the applicability of Subchapter 19 is expanded to
include the following:  (1) the applicability threshold has been lowered
for any ICI boiler or indirect heat exchanger (IHI) to a maximum gross
heat input of at least 5 MMBTU/hr, whether or not it’s located at a
major NOx facility, from 20 MMBTU/hr; (2) the applicability threshold
has been lowered for any stationary

combustion turbine to a maximum gross heat input rate of at least 25 MM
BTU/hr, located at a major NOx facility, from 30 MM BTU/hr; (3) the
applicability threshold has been lowered for any stationary
reciprocating engine (RE) used for generating electricity, whether or
not it’s located at a major NOx facility, to a maximum rated power
output of: (i) ≥ 148 kW (about 200 bhp), or (ii) ≥ 37 kW (about 50
bhp), for new or modified engines, on or after March 7, 2007, from 500
bhp; and (4) any group of two or more REs used for generating
electricity, each having a maximum rated power out put of  ≥ 37 kW but
< 148 kW, and whose total combined power output is 148 kW or greater,
whether or not located at a major NOx facility.

	Additionally, NJDEP amended N.J.A.C. 7:27-19.2(b) to provide that
Subchapter 19 applies to any rotary dryer located at an asphalt plant,
not just those with a PTE of 25 TPY NOx.

	NJDEP did not revise Subchapter 19 applicability for the following
source categories:

(1) boilers serving electric generating units; (2) glass manufacturing
furnaces that produce specialty container glass, borosilicate recipe
glass, or commercial container glass each

having a threshold applicability limit; and (3) any other equipment or
source operation not specifically listed at N.J.A.C. 7:27-19.2(b) 1 - 8
or N.J.A.C. 7:27-19.2(c) that has a PTE of 10 TPY NOx.

	NJDEP amended N.J.A.C. 7:27-19.2(d) to make emergency generators
subject to recordkeeping requirements, N.J.A.C. 7:27-19.11, and by
deleting the following two conditions which had previously exempted
these generators from Subchapter 19:  (1) 500 hour operating restriction
over any consecutive 12 month period; and (2) a PTE of less than 25 TPY
NOx during an annual period of operation.  Emergency generators continue
to be exempt from all other provisions of Subchapter 19.  New
recordkeeping requirements apply to an emergency generator, which is
operated only as follows:  (1) during normal testing and maintenance
procedures as recommended in writing by the manufacturer and/or as
required in writing by a Federal or State law or regulation; (2) when
there is a power outage or the primary source of mechanical or thermal
energy fails because of an emergency, as defined in N.J.A.C. 7:27-19.1;
or (3) when there is a voltage reduction issued by PJM and posted on
their website under the “emergency procedures” menu.  In addition,
NJDEP amended N.J.A.C. 7:27-19.2(d) to provide for the following
circumstances in which emergency generators shall not be used:  (1) in
circumstances other than an emergency, except as specified in paragraph
3 of the definition of ‘emergency generator’ (as summarized in the
three situations described in the previous sentence); (2) for normal
testing and maintenance on days when NJDEP forecasts “unhealthy” or
worse air quality as defined in EPA’s Air Quality Index website; and
(3) as a source of energy or power after the primary energy or power
source has become operable again.

	During the public comment period, a commenter noted that NJDEP’s
removal of the 500 hour emergency operation time limit made PTE analysis
and netting analysis of the unit ambiguous.  Comment 54, 37 N.J.R. 3982
(Oct. 17, 2005).  NJDEP responded that “hours of operation” is not
an appropriate criteria for defining an emergency generator and that
these units are limited to emergency use and testing use.  NJDEP further
responded that non-emergency

testing and maintenance should be included in the computation of PTE,
but emergency use should not be included.

	In a November 2005 e-mail (after adoption of Subchapter 19) to EPA
Region 2’s Permitting Section Chief, a representative of an
environmental management and a consulting firm expressed concern about
the emergency generator amendments to Subchapter 19 and the
determination of PTE.  The consultant requested EPA’s official stance
on NJDEP’s proposed rule and claimed that the PTE determination for
emergency generators would affect the title V status of several
facilities throughout New Jersey.

	In a December 2005 e-mail to EPA Region 2, NJDEP’s Air Director, Mr.
William O’Sullivan, explained that the emergency generator amendment
to Subchapter 19 is consistent with a recent proposed federal New Source
Performance Standard (NSPS) regulation.  The

proposed NSPS regulation does not provide a time limit for emergency
use.  NJDEP noted that testing in the proposed NSPS regulation, which is
limited to 30 hours, was only to be considered in the evaluation of
“best demonstrated technology.”  NJDEP further commented that only a
few sources would drop out of the title V program as a result of the
emergency generator amendments.

	In a letter dated February 14, 2006 from Mr. Steven C. Riva, Chief of
EPA Region 2’s Air Permitting Section, to Mr. O’Sullivan, EPA
responded that the calculation in the proposed NSPS regulation to which
NJDEP referred in its e-mail, “is for the purpose of determining the
actual cost of a control technology for NSPS purposes.”  EPA
concluded, “that for purposes of the NSR and the title V programs, New
Jersey should continue as they have and permit emergency units at some
amount of operation sufficiently large to cover emergencies (i.e., 500
hours a year).  Malfunctions that may require the operation of the
emergency units and that may exceed the 500 hours/year limit could be
handled through enforcement discretion on a case-by-case basis, as
appropriate.”

	A September 6, 1995 EPA guidance memo entitled, “Calculating
Potential to Emit (PTE) for Emergency Generators,” from Mr. John S.
Seitz, Director of Office of Air Quality Planning and Standards, to the
Regional Office Air Directors, supports EPA’s February 2006 letter to
NJDEP in that it indicates that the PTE determination should take into
account “(1) the number of hours power would be expected to be
unavailable and (2) the number of hours of maintenance activities.”
The September 1995 guidance memo also states, “500 hours is an
appropriate default assumption for estimating the number of hours that
an emergency generator could be expected to operate under worst-case
conditions.  Alternative estimates can be made on a case-by-case basis
where justified by the source owner or permitting authority (for
example, if historical data or local power outages indicate that a
larger or smaller number would be appropriate).”

	As indicated in EPA’s 1995 policy, EPA assumes that an emergency
generator will not be operated more than 500 hours, even under
worst-case conditions.  In the event that an emergency generator
operates over 500 emergency hours, the source is on notice that EPA
would consider

the emergency hours in calculating PTE for permitting purposes.  EPA
expects that NJDEP will include an hourly emergency operation
limitation, not to exceed 500 hours, in the revisions to

Subchapter 19, that will address RACT requirements under the 8-hour
ozone standard, and NJDEP permitting rules, Subchapters 8 and 22.

	PTE requirements for emergency generators should be included in
NJDEP’s permitting rules, Subchapters 8 and 22.  Those Subchapters
should include the provisions that NJDEP deleted from the current SIP
approved Subchapter 19:  (1) the 500 hour annual operational
restriction, or some other appropriate operating period that comports
with EPA’s September 1995 guidance and (2) the exemption for sources
with a PTE < 25 TPY NOx.

	EPA would also consider allowing NJDEP to include new language within
Subchapter 19 that would allow owners and operators to operate emergency
generators without restriction to operating hours in special situations,
such as when the governor of the State declared an emergency because of
an unprecedented and unexpectedly long duration blackout due to some
force majeure such as a severe hurricane.  For consistency, EPA expects
that NJDEP will revise Subchapter 19 when it amends its permitting rules
to also include these emergency generator restrictions.

	It should be noted that although NJDEP deleted the 500 hour emergency
operation restriction from Subchapter 19, NJDEP included additional
restrictions on owners and operators by including new recordkeeping
requirements, N.J.A.C. 7:27-19.11.  Additionally, NJDEP specifically
defined the situations under which an emergency generator can and cannot
operate.  The New Jersey decision not to require NOx RACT controls on
this category of generators for purposes of ozone control is not
affected by the emergency generators definition, and therefore, does not
affect the decision whether New Jersey has adopted NOx RACT controls.

	This discussion regarding restricting the operating hours of emergency
generators also applies to N.J.A.C. 7:27-16.9 and N.J.A.C. 7:27-16.10.

	Since the PTE requirements for emergency generators need to be
corrected in NJDEP’s permitting rules (Subchapters 8 and 22) and these
rules will be the subject of separate EPA actions from this SIP
revision, EPA is proposing to approve N.J.A.C. 7:27-19.2 at this time.
EPA expects that NJDEP will include an hourly emergency operation
limitation, not to exceed 500 hours, in the future amendments to
Subchapter 19, that will address RACT requirements under the 8-hour
ozone standard.  EPA will work with NJDEP on these revisions to ensure
that NJDEP clarifies PTE for emergency generators in Subchapter 19.

	There are no revisions to N.J.A.C. 7:27-19.2(e).

	NJDEP amended N.J.A.C. 7:27-19.2(f), which sets forth how an
owner/operator may apply for an exemption from Subchapter 19, to provide
the following administrative changes:

(1) wording is revised in the amended N.J.A.C. 7:27-19.2(b); (2) the
date, September 15, is

revised to September 30 in N.J.A.C. 7:27-19.2(f)(2)(ii) to conform with
the NOx RACT ozone season closing date provided in Subchapter 31,
NJDEP’s EPA-approved NOx Budget Program, 66 Fed. Reg. 28063 (May 22,
2001); and (3) in N.J.A.C. 7:27-19.2(f)(3), certain previously exempt

equipment that no longer qualifies for exemption, must have complied
with Subchapter 19 by October 6, 2001.  These administrative changes are
acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.2 with
exception noted above.

  N.J.A.C. 7:27-19.3: General provisions

	There are no new amendments to N.J.A.C. 7:27-19.3(a).  The NJDEP
amendments to N.J.A.C. 7:27-19.3(b), (c), (e), (i), and (j) consist of
grammatical changes, an updated cross

reference to other rules, notification of regional office address
changes for various counties, and incorporation of new and amended terms
defined at N.J.A.C. 7:27-19.1.  These administrative changes are
acceptable to EPA.

	NJDEP amended N.J.A.C. 7:27-19.3(d) to require owners or operators of
facilities subject to the new NOx emission limits (i.e., stationary
combustion turbines (CT) at N.J.A.C. 7:27-19.5(d), ICI or IHE at
N.J.A.C. 7:27-19.7(h), and REs at N.J.A.C. 7:27-19.8(e)) to apply for
permits and, if applicable, to submit a facility-specific NOx control
plan pursuant to N.J.A.C. 7:27-19.13, by February 7, 2006.  The new
application date for affected new sources is reasonable and acceptable
to EPA.

	NJDEP amended N.J.A.C. 7:27-19.3(f) to allow for alternative compliance
options for owners or operators of facilities listed in N.J.A.C.
7:27-19.2(c) [i.e., CTs, ICIs or IHEs and REs] which now have more
stringent NOx emission limits.  The alternative compliance options
include the following:  (1) an averaging plan pursuant to N.J.A.C.
7:27-19.6 and 19.14; (2) an alternative maximum allowable emission rate
pursuant to N.J.A.C. 7:27-19.13; and (3) a phased compliance plan for
either repowering or innovative control technology pursuant to N.J.A.C.
7:27-19.21 and 19.23, respectively.  NJDEP did not allow fuel switching
as a compliance option for these sources.  Except for disallowing the
fuel switching option, these are the same compliance alternatives
allowed sources that were to be in compliance by May 31, 1995, which EPA
previously approved.  EPA is not approving the phased compliance plans
because they allow sources to achieve the NOx reductions beyond November
15, 2007, the 1-hour ozone attainment deadline for the New York-Northern
New Jersey-Long Island area.  EPA expects New Jersey to delete these
sections in future rulemakings.  In addition, EPA is not approving dates
that allow for NOx RACT compliance beyond May 31 1995, in general, and
beyond May 1, 1999 for completion of repowering.  It should be noted
that New Jersey received no applications for phased compliance plans
before the plan application deadline of February 7, 2006.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.3 with
exceptions noted above and in section III.B of this TSD.

	4.  N.J.A.C. 7:27-19.4: Boilers serving electric generating units

  	The amendments to N.J.A.C. 7:27-19.4 incorporate the new and amended
definitions in the amended N.J.A.C. 7:27-19.1.

	NJDEP amended N.J.A.C. 7:27-19.4(a) by deleting the list of compliance
alternatives and referring to the amended N.J.A.C. 7:27-19.3(f).

	There are no new amendments to N.J.A.C. 7:27-19.4(b).

	N.J.A.C. 7:27-19.4(c) is a new amendment that requires annual
combustion adjustment requirements by May 1 of each year in accordance
with procedures outlined at N.J.A.C. 7:27-19.16.  These are not new
requirements for this source category as owners/operators of boilers
serving electric generating units were already required to adjust the
combustion process by May 1 of each year pursuant to N.J.A.C.
7:27-16.8(b) of Subchapter 16.

	The amendments to N.J.A.C. 7:27-19.4 are administrative and acceptable
to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.4.

	5.  N.J.A.C. 7:27-19.5: Stationary combustion turbines

	The amendments to N.J.A.C. 7:27-19.5 incorporate the new and amended
definitions in the amended N.J.A.C. 7:27-19.1.

	The amendments to N.J.A.C. 7:27-19.5(a), for any simple cycle turbine
with a maximum gross heat input rate of at least 30 MM BTU/hr, clarify
that the NOx emission limits in Table 2 are applicable, unless the
source is complying with the N.J.A.C. 7:27-19.3(f) compliance
alternatives, until the new compliance date of March 7, 2007.  On and
after that date, Table 2 is applicable only to a NOx Budget source,
i.e., sources regulated under Subchapter 31.

	The amendments to N.J.A.C. 7:27-19.5(b), for any combined cycle turbine
or regenerative cycle turbine with a maximum gross heat input rate of at
least 30 MM BTU/hr, clarify that the NOx emission limits in Table 3 are
applicable, unless the source is complying with the N.J.A.C.
7:27-19.3(f) compliance alternatives, until the new compliance date of
March 7, 2007.  On and after that date, Table 3 is applicable only to a
NOx Budget source.

	NJDEP amended N.J.A.C. 7:27-19.5(a) and (b) by deleting the list of
compliance alternatives and referring to the amended N.J.A.C.
7:27-19.3(f).

	It should be noted that the references above at N.J.A.C. 7:27-19.5(a),
19.5(b) and 19.5(c) to the compliance alternatives at N.J.A.C.
7:27-19.3(f) requires additional explanation as detailed in section
III.C.8 of this TSD, stationary reciprocating engines.  Specifically,
EPA is not approving

the phased compliance plans for repowering and innovative control
technology because they allow source NOx reductions to be achieved
beyond November 15, 2007, the 1-hour ozone attainment deadline for the
New York-Northern New Jersey-Long Island area.  In addition, as noted
above, EPA is not approving dates that allow for NOx RACT compliance
beyond May 31 1995, in general, and beyond May 1, 1999 for completion of
repowering.

	NJDEP amended N.J.A.C. 7:27-19.5(c) to improve grammar and to
incorporate new and amended definitions in the amended N.J.A.C.
7:27-19.1.

	N.J.A.C. 7:27-19.5(d) requires gas or oil fired stationary combustion
turbines to comply with the NOx emission limits in the new Table 4,
beginning on March 7, 2007, unless the owner/operator is complying with
the N.J.A.C. 7:27-19.3(f) compliance alternatives or N.J.A.C.
7:27-19.5(c)(1)-(5); except that NOx Budget sources must continue to
comply with the NOx emission limits in Tables 2 or 3.  It should be
noted that EPA believes that the reference in section 19.5(d) to “(c)1
through 5 below” is a typographical error.  EPA believes that the
reference should read “(c)1 through 5 above,” and that New Jersey
should correct the error accordingly.  In addition, the applicability
threshold has been lowered to sources having a maximum gross heat input
rate of 25 MM BTU/hr instead of 30 MM BTU/hr.

	NJDEP revised the NOx emission limits from an input-based (pounds per
million BTUs (Lb/MM BTU) heat input) limit to an output-based (pounds
per megawatt-hour (Lb/MWh)) limit.  During the public comment period for
the proposed Subchapter 19, EPA commented that although output based
limits encourage efficiency and pollution prevention, NJDEP needs to
provide a demonstration that the new output based emission limits are at
least as stringent as the former input based emission limits.  Comment
63, 37 N.J.R. 3983 (Oct. 17, 2005).  NJDEP responded to EPA’s comment
by providing a table that compares the former limits to the new limits
with the new output based limits converted/calculated to the former
input based limits.  NJDEP’s summary indicates that for combined or
regenerative cycle turbines, the input based and output based emission
limits are the same (0.15 Lb/MM BTU) for gas fired units, whereas for
oil fired units, the new output based limits are more stringent (0.26
Lb/MM BTU) compared to the former input based limit (0.35 Lb/MM BTU).
For simple cycle turbines, NJDEP’s summary table indicates that the
input based and output based emission limits are the same (0.20 Lb/MM
BTU) for gas fired units, whereas for oil fired units, the new output
based limits are more stringent (0.29

Lb/MM BTU) compared to the former input based limit (0.40 Lb/MM BTU).
NJDEP converted/calculated the former input based limits to the new
output based limits by multiplying the input based emission limit (Lb/MM
BTU) by the typical source’s heat rate, expressed as BTU per kilowatt
hour (BTU/kWh), and then converting kWh to MWh.  Specific heat rates
used in the calculation are listed in NJDEP’s response to EPA comment
63, with the heat rate range being 7,700 to 11,000 BTU/kWh.  NJDEP’s
calculation procedure and heat rate range concur with EPA guidance and
are acceptable to EPA.  A unit with a high heat rate (BTU/kWh) has a
relatively

low power plant efficiency (need to burn more fuel (i.e., BTU input) to
produce the same quantity of  electricity (i.e., kWh)) and, therefore,
may have difficulty meeting the output based emission limit expressed in
Lb/MWh.  To meet this limit, the unit could either install new pollution
control measures or improve the overall power plant efficiency which
would result in burning less fuel and therefore resulting in lower
pollution emissions.  Output based limits encourage sources to improve
plant operating efficiency and pollution prevention, such as clean
energy supply,

resulting in reduced fuel consumption and, thus, reduced emission of
pollutants, including NOx.  As such, input based limits do not encourage
pollution reductions through energy efficiency.  It should also be noted
that NJDEP’s new output based NOx emission limits for oil and gas
fired stationary combustion turbines pursuant to N.J.A.C. 7:27-19.5(d)
are identical to those recommended by the OTC’s model rule.

	The amendments to N.J.A.C. 7:27-19.5(d) are acceptable to EPA because
additional reductions in NOx emissions from stationary combustion
turbines will be achieved by the more stringent NOx emission limits for
oil fired combustion turbines and by lowering the applicability
threshold to sources having a maximum gross heat input rate of 25 MM
BTU/hr instead of 30 MM BTU/hr.

	N.J.A.C. 7:27-19.5(e) is a new provision requiring newly regulated
stationary combustion turbines, i.e., sources having a maximum gross
heat input rate of at least 25 MM BTU/hr but less than 30 MM BTU/hr, to
adjust the turbine’s combustion process, in accordance with the

procedures pursuant to N.J.A.C. 7:27-19.16, according to
manufacturer’s recommended maintenance schedules beginning in 2007.
Annual adjustment of the turbine’s combustion process for sources
having a maximum gross heat input rate of at least 30 MM BTU/hr was

previously required in Subchapter 16 by May 1 of each year.  It is now
required under N.J.A.C. 7:27-19.5(d)(2), except adjustments, in
accordance with the procedures pursuant to N.J.A.C. 7:27-19.16, are now
to be made according to manufacturer’s recommended maintenance
schedules, starting after November 7, 2005 (operative date of Subchapter
19).  This new provision requires new regulated sources to adjust the
combustion process resulting in reduced NOx emissions and, therefore, is
acceptable to EPA.

	N.J.A.C. 7:27-19.5(f) is a new provision that (1) clarifies that the
Lb/MWh NOx emission

limit in Table 4 and N.J.A.C. 7:27-19.5(d) is based on net energy output
and (2) provides a definition of how to calculate the output based
emission for cogeneration units.  N.J.A.C. 7:27-19.5(f) was added in
response to an EPA comment and another public comment from industry made
during the public comment period for the proposed Subchapter 19.
Comments 60 and 64, 37 N.J.R. 3983 and 3984 (Oct. 17, 2005).   This new
provision clarifies the definition and procedure for calculating output
based NOx emissions for cogeneration units and is consistent with EPA
guidance for output based regulations.  Therefore, it is acceptable to
EPA.

	The amendments to N.J.A.C. 7:27-19.5 will result in additional
reductions in NOx emissions and, therefore, are acceptable to EPA.  The
amendments to N.J.A.C. 7:27-19.5 are

consistent with NJDEP’s April 2000 commitment to EPA to further reduce
NOx emissions (see section E on pp 5-7 for further details).

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.5 with
exception noted above.

	6.  N.J.A.C. 7:27-19.6: Emissions averaging

	NJDEP amended N.J.A.C. 7:27-19.6 as follows: (1) reference is made to
the new and amended terms as defined in N.J.A.C. 7:27-19.1; (2)
September 30 is revised from September 15 to conform with the closing
date of the ozone season in Subchapter 31, NJDEP’s NOx Budget Program,
which is in the New Jersey SIP, 66 Fed. Reg. 28063 (May 22, 2001); (3)
references are made to different regulations; and (4) N.J.A.C.
7:27-19.6(k) is added to include the addresses where owners/operators
should submit quarterly reports to NJDEP.  These administrative changes
are acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.6.

7.  N.J.A.C. 7:27-19.7: Industrial/commercial/institutional boilers and
other indirect 		heat exchangers

	The primary amendments to N.J.A.C. 7:27-19.7 are summarized as follows:
(1) references are made to the new and amended terms as defined in
N.J.A.C. 7:27-19.1; (2) effective March 7, 2007, the applicability
threshold for industrial/commercial/institutional (ICI) boilers or
indirect heat exchangers (IHE) for the requirement to annually adjust
the combustion process, is lowered for ICI boilers or IHE with a maximum
gross heat input rate of at least 20 MM BTU/hr to those having a heat
input rate of 5 MM BTU/hr; and (3) effective March 7, 2007, the NOx
emission limit is lowered for natural gas fired ICI boilers or IHE with
a maximum gross heat input rate of at least 100 MM BTU/hr, to (a) 0.10
Lb/MM BTU from 0.20 Lb/MM BTU for tangential or face fired units and (b)
0.10 Lb/MM BTU from 0.43 Lb/MM BTU for cyclone fired units.

	In addition to administrative changes, N.J.A.C. 7:27-19.7(a), (b), (c),
and (e) are amended to establish that the present SIP approved NOx
emission limits, 64 Fed. Reg. 14832 (Mar. 29, 1999), annual adjustments
to the combustion process, and compliance alternatives are in effect

until March 7, 2007.  In addition, N.J.A.C. 7:27-19.7(d) requires
owners/operators of ICI boilers and IHE with a maximum gross heat input
rate of at least 250 MM BTU /hr to install a continuous emissions
monitoring system (CEMS) in accordance with N.J.A.C. 7:27-19.18.  A
previous requirement of N.J.A.C. 7:27-19.7(d) for sources with a heat
input ≥ 50 < 250 MM BTU/hr is now included in N.J.A.C. 7:27-19.7(e).
The compliance date is now March 7, 2007.

N.J.A.C. 7:27-19.7 (f) allows owners/operators to meet compliance
alternatives referred to in N.J.A.C. 7:27-19.3(f) instead of meeting the
applicable required NOx emission limits.  N.J.A.C. 7:27-19.7(f)
previously listed all the compliance alternatives but now simply refers
to them at N.J.A.C. 7:27-19.3(f).  The amendments to N.J.A.C.
7:27-19.7(a)-(f) clarify the compliance deadlines and other
administrative changes and, therefore, are acceptable to EPA.

	It should be noted that the reference above at N.J.A.C. 7:27-19.7(f) to
the compliance alternatives at N.J.A.C. 7:27-19.3(f) requires additional
explanation as detailed in section III.C.8 of this TSD, stationary
reciprocating engines.  Specifically, EPA is not approving the phased
compliance plans for repowering and innovative control technology
because they allow source NOx reductions to be achieved beyond November
15, 2007, the 1-hour ozone attainment deadline

for the New York-Northern New Jersey-Long Island area.  In addition, as
noted above, EPA is not approving dates that allow for NOx RACT
compliance beyond May 31 1995, in general, and beyond May 1, 1999 for
completion of repowering.

	N.J.A.C. 7:27-19.7(g) is a new provision that requires owners/operators
of ICI boilers and IHE with a maximum gross heat input rate of at least
5 MM BTUU/hr, whether or not it is located at a major NOx facility, to
annually adjust the combustion process in accordance with procedures
pursuant to N.J.A.C. 7:27-19.16.  The previous applicability threshold
was 20 MM BTU/hr.  Sources with at least 5 MM BTU/hr but less than 10 MM
BTU/hr, in the same quarter each calendar year, must begin adjustments
in 2010.  Sources with at least 10 MM BTU/hr but less than 20 MM BTU/hr,
in the same quarter each calendar year, must begin adjustments in 2008.
Sources with at least 20 MM BTU/hr or greater, in the same quarter each
calendar year, must begin adjustments in 2007.

	During the public comment period for the proposed Subchapter 19, EPA
commented that, because of an expected significant reductions in NOx
emissions from annual combustion adjustments (tune-ups), allowing small
sources (5-10 MM BTU/hr) up to 52 months from the

operative date of the rule was an excessive amount of time and could be
significantly shortened.  Comment 66, 37 N.J.R. 3984 (Oct. 17, 2005).
NJDEP responded that it agrees that significant reductions in NOx
emissions are possible but that “significantly shortening” the
timeframe for compliance for the large number (over 2000) of small
sources is not recommended for the following reasons:  (1) the time
period is reasonable and is prior to 2010, which is consistent with the
8-hr ozone attainment deadline; (2) it would adversely impact the effort
to increase rule effectiveness for smaller sources; and (3) industry
requires reasonable time for program development and implementation with
the assistance from New Jersey’s Small Business

Assistance Program.  EPA recognizes that there are a large number of
affected small sources that are now required to implement a new program
and that NOx reductions are timely with reference to New Jersey’s 2010
attainment date for the new 8-hour ozone standard.  Therefore, the new
requirements at N.J.A.C. 7:27-19.7(g) are acceptable to EPA.

	N.J.A.C. 7:27-19.7(h) is a new provision that requires owners/operators
of ICI boilers and IHE with a maximum gross heat input rate of at least
50 MM BTU/hr, located at a major NOx facility, to meet the NOx emission
limits in the new Table 7, by March 7, 2007.  As stated earlier, the NOx
emission limit is lowered for natural gas fired ICI boilers or IHE with
a maximum gross heat input rate of at least 100 MM BTU/hr, as follows:
(1) 0.10 Lb/MM BTU from 0.20 Lb/MM BTU for tangential or face fired
units; and (2) 0.10 Lb/MM BTU from 0.43 Lb/MM BTU for cyclone fired
units.  NJDEP did not revise any NOx emission limits for other size or
fuel and boiler types.  It should be noted that the new more stringent
NOx emission limit for gas fired ICI boilers and IHE is identical to the
OTC’s model rule for additional NOx control measures.

	The amendments to N.J.A.C. 7:27-19.7 are acceptable to EPA for the
reasons stated above.  Additional reductions in NOx emissions from ICI
boilers and IHE will be achieved by more stringent NOx emission limits
for natural gas fired sources with a maximum gross heat input rate of at
least 100 MM BTU/hr and by requiring smaller sources to start
implementing annual

combustion adjustments.  Furthermore, the new NOx emission limits are
more stringent than the limits EPA approved into the current SIP, 64
Fed. Reg. 14832 (Mar. 29, 1999), and are identical

to the OTC’s model rule for additional NOx control measures.  In
addition, the amendments to N.J.A.C. 7:27-19.7 are consistent with
NJDEP’s April 2000 commitment to EPA to further reduce NOx emissions.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.7 with
exception noted above.

	8.  N.J.A.C. 7:27-19.8: Stationary reciprocating engines

         The primary amendments to N.J.A.C. 7:27-19.8 are summarized as
follows:  (1) references are made to the new and amended terms as
defined in N.J.A.C. 7:27-19.1; (2) NOx limits for existing stationary
reciprocating engines (REs), used for generating electricity whether or
not located at a major NOx facility, have been made more stringent and
the applicability threshold has been lowered from greater than 500 bhp
(370 kW) to as low as 50 bhp (37 kW), with a March 7, 2007 compliance
date; (3) lower NOx emission limits for any RE used for generating
electricity, whether or not it’s located at a major NOx facility, that
has a maximum rated power output of: (i) ≥ 148 kW (about 200 hp), or
(ii) any group of two or more REs used for generating electricity, each
having a maximum rated power output of  ≥ 37 kW but < 148 kW, and
whose total combined power output is 148 kW or greater; (4) NOx emission
limits for new or modified engines ≥ 37 kW (about 50 hp) and used for
generating electricity whether or not located at a major NOx facility;
(5) an annual tune-up required for REs with maximum rated power output
of ≥ 50 bhp (37 kW), if used for generating electricity, whether or
not located at a

major NOx facility.  An annual tune-up is already required of REs
subject to VOC emission limits with a maximum rated horsepower of ≥
500 bhp (370 kW) (section 16.10(e)).

	In addition to administrative changes, N.J.A.C. 7:27-19.8(a)-(c) are
amended to establish that (1) the present SIP approved NOx emission
limits, 64 Fed. Reg. 14832 (Mar. 29, 1999)  are applicable to existing
stationary REs; and (2) on and after March 7, 2007, REs, if used to
generate electricity, become subject to the new NOx emission limits in
N.J.A.C. 7:27-19.8(e).

N.J.A.C. 7:27-19.8(d) is amended by deleting the list of compliance
alternatives but refers to N.J.A.C. 7:27-19.3(f) where the same
compliance alternatives are identified. The amendments to N.J.A.C.
7:27-19.8(a)-(d) clarify the compliance deadlines for newly applicable
sources and other administrative changes and, therefore, are acceptable
to EPA.

	N.J.A.C. 7:27-19.8(e) is a new provision that requires owners/operators
of stationary REs, used for generating electricity, whether or not they
are located at a major NOx facility, to meet new and more stringent NOx
emission limits, unless the owner/operator is complying with a
compliance alternative pursuant to N.J.A.C. 7:27-19.3(f).  New emission
limits are established in Table 8 and are applicable only to sources
defined in N.J.A.C. 7:27-19.8(e)(1) and (4), as follows:

(1) for an RE that has a rated power output of 148 kW (about 200 bhp) or
greater; and (2) a group of two or more REs, each of which has a rated
power output of  37 kW (about 50 bhp) or greater, but less than 148 kW,
and whose total combined power output is 148 kW or greater.  The new NOx
emission limits are based upon the type of engine and fuel it burns.
The new NOx emission

limits, expressed as grams NOx per bhp-hour (grams/bhp-hr), established
in Table 8, as applicable to N.J.A.C. 7:27-19.8(e)(1) and (4), are as
follows:

for rich-burn engines fueled by gaseous or liquid fuel:

1.5 grams/bhp-hr (from 1.5 grams/bhp-hr for gaseous fuel; no previous
limit for liquid fuel)

for lean-burn engines fueled by gaseous fuel:

    1.5 grams/bhp-hr or an emission limit equivalent to 80% reduction
from

uncontrolled NOx emission level (from 2.5 grams/bhp-hr; i.e., 40%
reduction from 2.5 grams/bhp-hr limit)

for lean-burn engines fueled by liquid fuel:

      2.3 grams/bhp-hr (from 8.0 grams/bhp-hr; i.e., 71.2% reduction)

for lean-burn engines fueled by dual fuels (gas and liquid):

      2.3 grams/bhp-hr (no previous limit)

	REs with a maximum rated power output of 37 kW (about 50 hp) or greater
that are new or modified on or after March 7, 2007 are required to meet
a NOx emission limit of no more than 0.90 grams/bhp-hr pursuant to
N.J.A.C. 7:27-19.8(e) 2 and 3, respectively.  Modified REs are

subject to either a NOx emission limit of 0.90 grams/bhp-hr or a NOx
emission limit which is

equivalent to a 90% reduction from the uncontrolled NOx emission level.
In addition, NJDEP

stated in the preamble section to the proposed rule that “if an engine
is additionally subject to State of the Art (SOTA) requirement for a new
and modified sources, lower limits could be required at the time of
permitting.”  36 N.J.R. 4233 (Sept. 20, 2004).

		Pursuant to section 19.3(f) of Subchapter 19, owners or operators of
the category of engines mentioned above may comply by meeting the new
presumptive NOx emission limits or by one of the following existing
options: (1) an emissions averaging plan pursuant to sections 19.6 and
19.14; (2) an alternative maximum allowable emission limit pursuant to
section 19.13; (3) a plan for phased compliance through the use of
repowering pursuant to section 19.21; or (4) a plan for phased
compliance through the use of innovative control technology pursuant to
section 19.23. In accordance with the phased compliance plan option,
owners or operators planning to

comply with a phased compliance plan must fully implement the plan by
November 7, 2009 and have begun to comply with interim control measures
and other requirements by March 7, 2007.  Pursuant to section 19.20 of
Subchapter 19, New Jersey must approve of any phased compliance

plan.  Applications to implement the phased compliance plans were due to
New Jersey by February 7, 2006.

		Each of the compliance options listed above are addressed below.
First, any emissions averaging plan must be approved by New Jersey,
however EPA approval is not required since the emissions averaging
procedures of Subchapter 19.6 have already been approved by EPA into the
New Jersey SIP.  Second, any alternative maximum allowable emission
limit must be approved by New Jersey and submitted for EPA approval as a
SIP revision as provided in section 19.13.  Finally, the phased
compliance plan options in sections 19.21 and 19.23 would allow sources
to comply with the NOx RACT requirements in 2009 which is beyond the
November 15, 2007 attainment deadline for the New York-Northern New
Jersey-Long Island NAA.  Sources

that implement these phased compliance plan options in 2009 would not
help the New York-Northern New Jersey-Long Island NAA achieve the NOx
reductions needed for attainment of the 1-hour ozone standard by the
November 15, 2007 attainment date.  In addition, as noted above, EPA is
not approving dates that allow for NOx RACT compliance beyond May 31
1995, in general, and beyond May 1, 1999 for completion of repowering.
For this reason, the new

amended 2009 compliance date for phased compliance plan options is not
acceptable to EPA.  If the amendments to the phased compliance plan
options had a compliance date prior to the start of the 2007 ozone
season this would be acceptable to EPA.

	It should be noted that New Jersey received no applications for phased
compliance plan options before New Jersey’s application deadline of
February 7, 2006.  Therefore, the new amendments to the phased
compliance plan options at sections 19.21 and 19.23 have no practical
effect.  Accordingly, EPA is not proposing to approve or disapprove
these sections into the SIP.  For the reasons stated above, EPA further
recommends that New Jersey delete the new amendments to sections 19.21
and 19.23 from Subchapter 19.  These comments also apply to new
amendments to Subchapter 19 that established phased compliance plan
options for owners or operators of stationary combustion turbines and
owners or operators of industrial/commercial/institutional boilers and
other indirect heat exchangers.

	N.J.A.C. 7:27-19.8(e)5 is a new provision that clarifies how sources
determine their “uncontrolled NOx emission level,” indicated in
Table 8 and N.J.A.C. 7:27-19.8(e)3.  To comply with this new provision,
NJDEP requires that stack tests be conducted pursuant to N.J.A.C.
7:27-19.15(a)2.  In addition, prior to the stack test, the RE’s
combustion process must be adjusted using procedures pursuant to
N.J.A.C. 7:27-19.16.  N.J.A.C. 7:27-19.8(e)5 was added to Subchapter 19
in response to EPA’s comment during the public comment period.
Comment 82, 37 N.J.R. 3986 (Oct, 17, 2005).  N.J.A.C. 7:27-19.8(e)5 is
acceptable to EPA because it clarifies the required procedures for
determining the “uncontrolled NOx emission level.”

	N.J.A.C. 7:27-19.8(f) is a new provision that requires owners/operators
of a RE that has a maximum rated power output (MRPO) of at least 37 kW
or greater, used for generating

electricity, whether or not it is located at a major NOx facility, to
adjust the engine’s combustion process in accordance with the
procedures in N.J.A.C. 7:27-19.16.  The following schedule is required:
(1) REs with a MRPO of 37 kW but less than 370 kW, according to the
manufacturer’s

recommended maintenance schedules, must begin adjustments in 2007; or
(2) REs with a MRPO of at least 370 kW or greater, or required prior to
November 7, 2005 (latest operative date for Subchapter 19) to adjust the
combustion process, according to manufacturer’s recommended
maintenance schedules.  In addition, NJDEP stated in the preamble
section to the proposed rule that “combustion adjustment is already
required for the owners of stationary reciprocating engines

subject to VOC emission limits with a maximum rated power output of 500
brake horsepower or greater pursuant to N.J.A.C 7:27-16.10(e).”  36
N.J.R. 4233 (Sept. 20, 2004).  500 bhp is equivalent to about 370 kW.

	The amendments to N.J.A.C. 7:27-19.8 are acceptable to EPA for the
reasons stated above and because additional reductions in NOx emissions
from stationary REs, used for generating electricity whether or not it
is located at a major NOx facility, will be achieved by requiring more
stringent NOx emission limits and by requiring smaller sources to start
implementing annual combustion adjustments.  Furthermore, the new NOx
emission limits are more stringent than the limits EPA approved into the
current SIP, 64 Fed. Reg. 14832 (Mar. 29, 1999), and are identical to
the OTC’s model rule for additional NOx control measures.  In
addition, the amendments to N.J.A.C. 7:27-19.8 are consistent with
NJDEP’s April 2000 commitment to EPA to further reduce NOx emissions.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.8 with
exception noted above.

  N.J.A.C. 7:27-19.9: Asphalt plants

	NJDEP amended N.J.A.C. 7:27-19.9(a) to delete the applicability
threshold that an asphalt plant “which has the potential to emit at
least 25 tons per year of NOx” is required to meet the required NOx
emission limit.  This same threshold limit was deleted in N.J.A.C.
7:27-19.2(b) entitled “Purpose, scope and applicability.”  The
amendment to N.J.A.C. 7:27-19.9(a) is now more stringent because any
asphalt plant that emits NOx at any level is now required to meet the
required NOx emission limit. There are no other amendments to any other
provisions at N.J.A.C. 7:27-19.9.

	The amendments to N.J.A.C. 7:27-19.9 are more stringent than the NOx
emission limits EPA has approved into the current SIP, 64 Fed. Reg.
14832 (Mar. 29, 1999).  Therefore, they are acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.9.

 N.J.A.C. 7:27-19.10: glass manufacturing furnaces

	There are no new amendments to N.J.A.C. 7:27-19.10.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.10.

 N.J.A.C. 7:27-19.11: Emergency generators – recordkeeping

	N.J.A.C. 7:27-19.11 is a new provision that establishes the
recordkeeping requirements for owners/operators of emergency generators.

	N.J.A.C. 7:27-19.11(a) requires owners/operators of an emergency
generator with a maximum rated output of 37 kW (about 50 bhp) to
maintain on site records with the following information:  (1) once per
month, the total operating time from the generator’s hour meter; (2)
details (reason for operation; date and time of operation; total
operating time; and name of operator) for each time the emergency
generator is operated for testing or maintenance; and (3) a copy of the
voltage reduction notification from PJM or other documentation of a
voltage reduction that justified the emergency generator’s operation.

	N.J.A.C. 7:27-19.11(b) requires the owners/operators of an emergency
generator to

maintain the records required under N.J.A.C. 7:27-19.11(a) for a period
of 5 years and to make the records readily available to NJDEP or EPA
upon request.

	This recordkeeping requirement provides clarity for owners/operators of
emergency

generators and is consistent with EPA’s enforceability guidance
document for clarity.  Therefore, it is acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.11.

	12.  N.J.A.C. 7:27-19.12: (Reserved)

	This section remains reserved for any future codification of RACT
requirements.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.12.

 N.J.A.C. 7:27-19.13: Facility-specific NOx emission limits

	NJDEP amended N.J.A.C. 7:27-19.13 as follows:  (1) references are made
to the new and amended terms as defined in N.J.A.C. 7:27-19.1; (2) newly
affected sources listed in N.J.A.C. 7:27-19.2(c) [stationary combustion
engines, ICI and IHE, and REs] as eligible to submit a NOx control plan
or an alternative maximum allowable limit [see N.J.A.C. 7:27-19.13(a)(1)
and (2); and N.J.A.C. 7:27-19.13(b)(1)] are included; (3)
owners/operators of newly affected sources listed in N.J.A.C.
7:27-19.5(d) [stationary combustion engines], N.J.A.C. 7:27-19.7(h) [ICI
and IHE], and N.J.A.C. 7:27-19.8(e) [REs] are required to submit in
writing a proposed NOx Control Plan by February 7, 2006 [see N.J.A.C.
7:27-19.13(b)] to NJDEP; (4) in addition to Subchapter 8,

references are made to Subchapter 22 and N.J.A.C. 7:1K-5 for sources
that apply for new permits or certificates [see N.J.A.C.
7:27-19.13(j)(2) and N.J.A.C. 7:27-19.13(k)(2)(ii)]; (5)
owners/operators of the newly affected sources listed in N.J.A.C.
7:27-19.5(d) [stationary combustion engines], N.J.A.C. 7:27-19.7(h) [ICI
and IHE], and N.J.A.C. 7:27-19.8(e) [REs] are required to implement the
NOx Control Plan approved by NJDEP [see N.J.A.C. 7:27-19.13(n)] by March
7, 2007; and (6) the address to which owners/operators are to submit
their proposed NOx Control Plan or requests for an alternative maximum
allowable emission limit [see N.J.A.C. 7:27-19.13(o)] is corrected.
There are no other amendments to N.J.A.C. 7:27-19.13.

	The amendments to N.J.A.C. 7:27-19.13 provide clarity for
owners/operators of newly affected sources to submit and comply with NOx
Control Plans or requests for an alternative maximum allowable emission
limit and are consistent with EPA’s enforceability guidance document
for clarity.  Therefore, they are acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.13.

 N.J.A.C. 7:27-19.14: Procedures for obtaining approvals under this
subchapter

	NJDEP amended N.J.A.C. 7:27-19.14 as follows:  (1) references are made
to the new and

amended terms as defined in N.J.A.C. 7:27-19.1; (2) in addition to the
existing Subchapter 8, references are made to Subchapter 22 and N.J.A.C.
7:1K-5 for sources that apply for permits or certificates [see N.J.A.C.
7:27-19.14(g)(2)]; (3) administrative references to N.J.A.C. 7:27-1.39
[see paragraph 19.14(c)6] and to N.J.A.C. 7:27-1.32 [see N.J.A.C.
7:27-19.14(i)] are revised; and (4) the address to which
owners/operators are to submit their applications for an approval listed
in N.J.A.C. 7:27-19.14(a) [exemptions, alternative compliance options
and monitoring plans, etc] [see N.J.A.C. 7:27-19.14(b)] is corrected.
There are no other amendments to

N.J.A.C. 7:27-19.14.

	EPA considers the amendments to N.J.A.C. 7:27-19.14 to be
administrative in nature and, therefore, acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.14.

 N.J.A.C. 7:27-19.15: Procedures and deadlines for demonstrating
compliance

	NJDEP amended N.J.A.C. 7:27-19.15 as follows:  (1) in N.J.A.C.
7:27-19.15(a)(1)(i), September 30 is revised from September 15 to
conform with the closing date of the ozone season in Subchapter 31,
NJDEP’s NOx Budget Program, 66 FR 28063 (May 22, 2001); (2) in
N.J.A.C. 7:27-19.15(a)(1)(ii), September 16 is revised to October 1 to
conform with the start of the non-ozone season.  Additional amendments
are explained below.

	NJDEP amended N.J.A.C. 7:27-19.15(a)2 to require that NOx testing,
pursuant to N.J.A.C. 7:27-19.17, be conducted concurrently with carbon
monoxide (CO) testing.  The applicable NOx

emission limits are not considered to be met unless the concurrent CO
testing demonstrates compliance with the CO limit in N.J.A.C. 7:27-16.8,
16.9, 16.10, 16.11, or the permit limit for CO, whichever is more
stringent.

	NJDEP amended N.J.A.C. 7:27-19.15(b) to require owners/operators of the
newly affected sources listed in N.J.A.C. 7:27-19.5(d) [stationary
combustion engines], 19.7(h) [ICI and IHE], and 19.8(e) [REs] in
operation before November 7, 2005 (operative date of the newly amended
Subchapter 19), to demonstrate compliance with N.J.A.C. 7:27-19.15(a)1
[CEMS] or (a)2 [stack tests], by March 7, 2008.  Test results that
demonstrate compliance with the new requirements within the 5 years
preceding November 7, 2005 shall be accepted by NJDEP as satisfying this
test requirement provided the test results and test report were reviewed
by NJDEP and found satisfactory.

	There are no other amendments to N.J.A.C. 7:27-19.15.

	The amendments to N.J.A.C. 7:27-19.15 provide clarity for
owners/operators of newly

affected sources to meet the procedures and deadlines for meeting
compliance, are consistent with EPA’s enforceability guidance document
for clarity, and, therefore, are acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.15.

 N.J.A.C. 7:27-19.16: Adjusting combustion process

	N.J.A.C. 7:27-19.16(a)-(d) sets forth the combustion process adjustment
requirements that apply to owners/operators of applicable equipment or
source operation, other than stationary

combustion turbines (CTs) and reciprocating engines (REs).  The new
N.J.A.C. 7:27-19.16(g) and (h) are applicable to CTs and REs.

	N.J.A.C. 7:27-19.16(a) outlines the steps required to adjust the
combustion process for the applicable sources and excludes these
requirements for CTs and REs.  In addition to the existing requirements
at N.J.A.C. 7:27-19.16(a)(1) - (3), NJDEP amended N.J.A.C. 7:27-19.16(a)
to include the following:  (1) minimization of total emissions of NOx
and CO consistent with the manufacturer’s specifications [N.J.A.C.
7:27-19.16(a)(4)]; (2) measurement of the concentrations of NOx, CO and
O2 in ppmvd before and after the adjustment is made [N.J.A.C.
7:27-19.16(a)(5)]; and (3) conversion of the gas concentration
measurements to Lb/MM BTU [N.J.A.C. 7:27-19.16(a)(6)].

	NJDEP amended N.J.A.C. 7:27-19.16(b) to allow recordkeeping of the
combustion adjustment by a computer data system (instead of a log book)
and to require that records be maintained for a minimum of 5 years.  In
addition, NJDEP amended N.J.A.C. 7:27-19.16(b) to require the following
additional information to be recorded:  (1) a description of any
corrective action [N.J.A.C. 7:27-19.16(b)(5)]; (2) the results of any
tests performed after taking any corrective action [N.J.A.C.
7:27-19.16(b)(6)]; and (3) the type and amount of fuel used over the

12 months prior to the annual adjustment [N.J.A.C. 7:27-19.16(b)(7)].

	N.J.A.C. 7:27-19.16(c) and (d) are new provisions requiring that
owners/operators report

the results of the annual combustion adjustment to NJDEP within 45 days
after the adjustment is completed.  N.J.A.C. 7:27-19.16(d) provides a
schedule of when owners/operators of ICI and IHE must begin the annual
adjustment of the combustion process.

	N.J.A.C. 7:27-19.16(e) is a new provision requiring that
owners/operators ensure that the operating parameter settings are
established and recorded after adjustment to the combustion process and
that the adjusted source operates consistently with the annual
adjustment.

	N.J.A.C. 7:27-19.16(f) was the previous N.J.A.C. 7:27-19.16(b), except
that reference is now made to Subchapter 22 in addition to the previous
reference to Subchapter 8.

	N.J.A.C. 7:27-19.16(g) is a new provision requiring that
owners/operators of CTs or REs ensure that the adjustment of the
combustion process is carried out according to manufacturers’

recommended procedures and maintenance schedules.

	N.J.A.C. 7:27-19.16(h) is a new provision requiring owners/operators of
CTs and REs that have made adjustments pursuant to N.J.A.C.
7:27-19.16(g) ensure that each adjustment is

recorded in either a log book or a computer data system and retained for
a minimum of 5 years.  N.J.A.C. 7:27-19.16(h) lists 5 specific items of
information that must be recorded.

	There are no further amendments to N.J.A.C. 7:27-19.16.

	The amendments to N.J.A.C. 7:27-19.16 provide clarity for
owners/operators of affected sources to meet the required procedures and
deadlines for making annual adjustments to the combustion process and
are consistent with EPA’s enforceability guidance document for
clarity.  Therefore, they are acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.16.

N.J.A.C. 7:27-19.17: Source emission testing

	There are no new amendments to N.J.A.C. 7:27-19.17.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.17.

		18.  N.J.A.C. 7:27-19.18: Continuous emission monitoring

	NJDEP amended N.J.A.C. 7:27-19.18 as follows:  (1) references are made
to the new and amended terms as defined in N.J.A.C. 7:27-19.1; (2) in
addition to existing Subpart 8, references are made to Subpart 22 and
N.J.A.C. 7:1K-5 for sources that apply for permits or certificates [see

N.J.A.C. 7:27-19.18(g)(2)]; (3) revised administrative references are
made to N.J.A.C. 7:27-1.32 [see N.J.A.C. 7:27-19.18(k)]; and (4)
numbering sequence of paragraphs are corrected.  There are no other
amendments to N.J.A.C. 7:27-19.14.

	EPA considers the amendments to N.J.A.C. 7:27-19.18 as administrative
in nature and, therefore, acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.18.

N.J.A.C. 7:27-19.19: Recordkeeping and recording

	NJDEP amended N.J.A.C. 7:27-19.19 as follows: (1) references are made
to the new and amended terms as defined in N.J.A.C. 7:27-19.1; (2) two
references in N.J.A.C. 7:27-19.18(d) to September 30 are revised from
September 15 to conform with the closing date of the ozone season in
Subchapter 31, NJDEP’s NOx Budget Program, 66 Fed. Reg. 28063 (May 22,
2001);

(3) two references in N.J.A.C. 7:27-19.18(d) to October 1 are revised
from September 16 to conform with the start of the non-ozone season.
There are no other amendments to

N.J.A.C. 7:27-19.19.

	EPA considers the amendments to N.J.A.C. 7:27-19.19 administrative in
nature and, therefore, acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.19.

N.J.A.C. 7:27-19.20: Fuel switching

	NJDEP amended N.J.A.C. 7:27-19.20 as follows:  (1) reference is made to
the new and amended terms as defined in N.J.A.C. 7:27-19.1; (2) three
references at N.J.A.C. 7:27-19.20(d), (g) and (i) to September 30 are
revised from September 15 to conform with the closing date of the ozone
season in Subchapter 31, NJDEP’s NOx Budget Program, 66 Fed. Reg.
28063 (May 22, 2001); (3) three references at N.J.A.C. 7:27-19.20(d),
(g) and (i) to October 1 are revised from September 16 to conform with
the start of the non-ozone season.  There are no other amendments to
N.J.A.C. 7:27-19.20.

	EPA considers the amendments to N.J.A.C. 7:27-19.20 as administrative
in nature and, therefore, acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.20.

21. N.J.A.C. 7:27-19.21: Phased compliance – repowering

	NJDEP amended N.J.A.C. 7:27-19.21 as follows:  (1) reference is made to
the new and amended terms as defined in N.J.A.C. 7:27-19.1; (2) in
N.J.A.C. 7:27-19.21(b), the due date for submittal to NJDEP of an
application for approval of a repowering plan is revised to February 7,

2006 for owners/operators of sources subject to a NOx emission limit in
N.J.A.C. 7:27-19.5(d) [stationary combustion engines], 19.7(h) [ICI and
IHE] and 19.8(e) [REs]; (3) in N.J.A.C. 7:27-19.21(d)(4), the completion
date for repowering is revised to November 7, 2009 for owners/operators
of sources subject to a NOx emission limit in N.J.A.C. 7:27-19.5(d),
19.7(h) and

19.8(e); (4) in N.J.A.C. 7:27-19.21(e)(1), sources with an approved
repowering plan must begin to comply by the revised date of March 7,
2007; (5) in N.J.A.C. 7:27-19.21(e)(4), sources with an approved
repowering plan must determine the actual NOx emission from each
combustion source in the repowering plan, pursuant to N.J.A.C.
7:27-19.15(a) [CEMS or stack test],  by the revised date of March 7,
2007; (6) in N.J.A.C. 7:27-19.21(e)(6), sources with an approved
repowering plan must comply with the recordkeeping and reporting
requirements, pursuant to N.J.A.C. 7:27-19.19, by the revised date of
March 7, 2007; (7) in N.J.A.C. 7:27-19.21(e)(10), sources with an
approved repowering plan must cease operation by the revised date of
November 7, 2009, if repowering has not been completed by that date; and
(8) the reference at N.J.A.C. 7:27-19.21(g)(2) to September 30 is
revised from September 15 to conform with the closing date of the ozone
season in Subchapter 31, NJDEP’s NOx Budget Program, 66 Fed. Reg.
28063 (May 22, 2001).

	There are no other amendments to N.J.A.C. 7:27-19.21.

	EPA is not approving the phased compliance plans for repowering and
innovative control technology because they allow source NOx reductions
to be achieved beyond the November 15, 2007 1-hour ozone attainment
deadline for the New York-Northern New Jersey-Long Island area.  In
addition, as noted above, EPA is not approving dates that allow for NOx
RACT compliance beyond May 31 1995, in general, and beyond May 1, 1999
for completion of repowering.  For a further detailed explanation, the
reader is referred to section III.C.8 of this TSD, stationary
reciprocating engines.

Recommended Action:  none.

22.  N.J.A.C. 7:27-19.22: Phased compliance – impracticability of full
compliance by

	May 31, 1995

NJDEP amended N.J.A.C. 7:27-19.22 to reference the new and amended terms
as defined in N.J.A.C. 7:27-19.1.  There are no other amendments to
N.J.A.C. 7:27-19.22.

	This provision is no longer of practical use since the June 1995
deadline for sources to submit an application for phased compliance has
passed.

Recommended Action:  none.

 N.J.A.C. 7:27-19.23: Phased compliance – use of innovative control
technology

 	NJDEP amended N.J.A.C. 7:27-19.23 as follows:  (1) references are made
to the new and amended terms as defined in N.J.A.C. 7:27-19.1; (2) in
N.J.A.C. 7:27-19.23(b), the due date for

submittal to NJDEP of an application for approval of an innovative
control technology plan is revised to February 7, 2006 for
owners/operators of sources subject to a NOx emission limit in N.J.A.C.
7:27-19.5(d) [stationary combustion engines], 19.7(h) [ICI and IHE] and
19.8(e) [REs];

(3) in N.J.A.C. 7:27-19.23(c)(4) and 19.23(d)(2)(iii), the
implementation date for innovative

control technology that is technically sound and sufficiently developed
is revised to

November 7, 2009 for owners/operators of sources subject to a NOx
emission limit in N.J.A.C. 7:27-19.5(d), 19.7(h) and 19.8(e); (4) in
N.J.A.C. 7:27-19.23(d)(2)(iv), one of the elements the State must
consider for approving an innovative control technology plan is that the
innovative control technology for each combustion source cannot be
implemented by the revised date of March 7, 2007; (5) in N.J.A.C.
7:27-19.23(e)(1), sources with an approved plan must operate all
combustion sources included in the approved plan in compliance with the
approved plan by the revised date of March 7, 2007; (6) in N.J.A.C.
7:27-19.23(e)(4), sources with an approved innovative control technology
plan must determine the actual NOx emission from each combustion source
in the plan, pursuant to N.J.A.C. 7:27-19.15(a) [CEMS or stack test], by
the revised date of March 7, 2007; (7) in N.J.A.C. 7:27-19.23(e)(6),
sources with an approved innovative control technology plan must comply
with the recordkeeping and reporting requirements, pursuant to N.J.A.C.
7:27-19.19, by the revised date of March 7, 2007; and (8) in N.J.A.C.
7:27-19.23(e)(9), sources with an approved innovative control technology

plan that does not implement the innovative control technology by
November 7, 2009 must comply with the applicable NOx emission limit set
forth in Subchapter 19 by November 7, 2009.

	There are no other amendments to N.J.A.C. 7:27-19.23.

	EPA is not approving the phased compliance plans for repowering and
innovative control

technology because they allow source NOx reductions to be achieved
beyond the November 15, 2007 1-hour ozone attainment deadline for the
New York-Northern New Jersey-Long Island area and because the
SIP-approved NOx RACT requires sources availing themselves of the
repowering option to complete repowering by May 1, 1999.  For a further
detailed explanation, the reader is referred to section III.C.8 of this
TSD, stationary reciprocating engines.  EPA expects New Jersey to delete
these sections in future rulemakings.  It should be noted that New
Jersey received no applications for phased compliance plans before the
plan application deadline of February 7, 2006.

Recommended Action:  none.

N.J.A.C. 7:27-19.24: MEG alerts

	Although significant amendments have been made to N.J.A.C. 7:27-19.24
since EPA last approved Subchapter 19 as a SIP revision in March 1999,
this provision is no longer of practical use since the November 15, 2005
deadline for source applicability established in N.J.A.C. 7:27-19.24(a)
has now past.

 Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.24.

N.J.A.C. 7:27-19.25: Exemption for emergency use of fuel oil

	NJDEP amended N.J.A.C. 7:27-19.25 as follows:  (1) reference is made to
the new and amended terms as defined in N.J.A.C. 7:27-19.1; and (2) a
reference at N.J.A.C. 7:27-19.25(b) to

September 30 is revised from September 15 to conform with the closing
date of the ozone season in Subchapter 31, NJDEP’s NOx Budget Program,
66 Fed. Reg. 28063 (May 22, 2001).  There are no other amendments to
N.J.A.C. 7:27-19.25.

	EPA considers the amendments to N.J.A.C. 7:27-19.25 as administrative
in nature and, therefore, acceptable to EPA.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.25.

N.J.A.C. 7:27-19.26: Penalties

	There are no amendments to N.J.A.C. 7:27-19.26.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-19.26.

N.J.A.C. 7:27-19.26: Use of NOx budget allowances by a former DER credit
user

	See section III. B.

D.	Subchapter  8: “Permits and Certificates for Minor Facilities (and
Major Facilities Without 	an Operating Permit)”

	EPA is currently reviewing other amendments to Subchapter 8 adopted on
September 8, 2005.  Therefore, EPA will address all Subchapter 8
amendments at the same time in a future rulemaking.

E.	Subchapter 16: “Control and Prohibition of Air Pollution by
Volatile Organic Compounds”

As previously stated, the purpose of the new rule and amendments to
NJDEP’s ozone SIP

is to meet the State’s April 2000 SIP commitment to control additional
NOx emissions that address the NOx emission reduction shortfall
identified by EPA in December 1999 for attainment of the 1-hour ozone
standard.  For these additional NOx sources, New Jersey also evaluated
the potential to limit VOC emissions at the same time.  Subchapter 16
regulates these additional sources for VOC control.  Although the 1-hour
ozone standard may have been revoked, pending the results of litigation
over the rule, 70 Fed. Reg. 44470 (Aug. 3, 2005), NJDEP’s additional
NOx and VOC reductions are needed to help the State attain the new
8-hour ozone standard and to meet the State’s commitment to EPA for
this SIP revision.  NJDEP stated that these rule changes are based on a
model rule and MOUs developed by the Ozone Transport Commission.  A
brief

summary of the new rule and primary amendments to Subchapter 16 are as
follows:

	1.  The applicability threshold for boilers to have annual combustion
adjustments is lowered from 50 MM BTU/hr to 5 MM BTU/hr for a boiler or
indirect heat exchanger not used to generate electricity.  The tune-up
requirement is phased in with larger units coming into compliance
sooner.

2.  The applicability threshold for stationary combustion turbines is
lowered from a maximum gross heat input rate of 30 MM BTU/hr to 25 MM
BTU/hr.  These turbines must meet VOC and CO limits and have the
combustion process adjusted.

3. The applicability threshold for stationary reciprocating engines is
lowered from 500 bhp (370 kW) to 50 bhp (37 kW), if used to generate
electricity.  These engines must meet a new CO limit and have the
combustion process adjusted according to manufacturers’ recommended
schedules.

4.  Changes have been made to Subchapter 16 that are administrative in
nature and ensure consistency with Subchapter 19.  These involve using
new terms to replace old ones and do not change the meaning or
stringency of the provisions.

	5.  N.J.A.C. 7:27-16.9 and 16.10 contain a new exemption for emergency
generators and N.J.A.C. 7:27-16.1 contains the definition for emergency.
  Emergency generators may only be used for emergencies and testing
purposes, and not for peaking power.  In addition, the definition of
emergency has been expanded to voltage reductions (brownouts), in
addition to power disruptions (blackouts).  Finally, a former limitation
of 500 hours of emergency use per year

contained in Subchapter 19 has been deleted from Subchapter 19 and not
included in Subchapter 16 as New Jersey believes it is an unnecessary
and inappropriate restriction on emergency use.  A new provision to
Subchapter 19, N.J.A.C. 7:27-19.11 (Emergency generators –
recordkeeping),

requires recordkeeping by sources to ensure emergency generators are
used only for testing and emergencies.  NJDEP refers to N.J.A.C.
7:27-19.11 as the new rule.

The following is an assessment of the amendments to Subchapter 16,
related to NJDEP’s NOx RACT (Subchapter 19) submitted on December 16,
2005, on a section by section basis.  EPA last approved Subchapter 16
with an effective date of June 29, 2003.  Each description

includes EPA’s analysis of each section and a recommendation for
either approval or disapproval.

1.  N.J.A.C. 7:27-16.1: Definitions

Terms have been added, modified or deleted in order to make Subchapter
16 consistent with Subchapter 19.  The terms generally have the same
definitions as those in Subchapter 19.  The revisions are primarily
slight word changes to the terms, and clarify the definitions in

Subchapter 19.

NJDEP’s amendments to the definitions in N.J.A.C. 7:27-16.1 clarify
the terms in

Subchapter 16 and, therefore, EPA proposes to approve the amendments to
N.J.A.C. 7:27-16.1.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-16.1.

	2. N.J.A.C. 7:27-16.1A: Purpose, scope, applicability, and severability

		See section III.B of this TSD.

	3. N.J.A.C. 7:27-16.8: Boilers

	The applicability threshold for boilers to have annual combustion
adjustments is lowered from 50 MM BTU/hr to 5 MM BTU/hr for a boiler or
indirect heat exchanger not used to generate electricity.  For units at
5-10 MM BTU/hr, annual combustion adjustments must be performed annually
starting in 2010.  For units at 10-20 MM BTU/hr, annual combustion
adjustments must be performed annually starting in 2008.  For units at
20-50 MM BTU/hr, annual combustion adjustments must be performed
annually beginning on November 7, 2005, if located at a major NOx
facility, or beginning in 2007 if located at a non-major NOx facility.
For units at 50 MM BTU/hr or greater, and not serving as an electric
generating unit, annual combustion adjustments must be performed
annually beginning November 7, 2005, if located at a major NOx

facility, or beginning in 2007 if located at a non-major NOx facility.
For units in electric generating service, there have been no changes to
previous requirements and compliance dates.

The procedures that should be used for the combustion adjustment were
originally contained in N.J.A.C. 7:27-16.24.  Those requirements are now
located in N.J.A.C. 7:27-19.16.

	The amendments to N.J.A.C. 7:27-16.8 regulate moderate size boilers to
improve their fuel efficiency and reduce emissions.  Therefore, EPA is
proposing approval of the amendments to N.J.A.C. 7:27-16.8.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-16.8.

	4. N.J.A.C. 7:27-16.9: Stationary combustion turbines

The applicability threshold for stationary combustion turbines is
lowered from a maximum gross heat input rate of 30 MM BTU/hr to 25 MM
BTU/hr.  The compliance date for meeting the new VOC and CO limits is
March 7, 2007.  Sources must demonstrate compliance by March 7, 2008.
In addition, stationary combustion turbines must have the combustion
process adjusted in accordance to the procedure in N.J.A.C 7:27-19.16,
at manufacturers’ recommended schedules, beginning in 2005 for units
30 MM BTU/hr or greater, and in 2007 for units between 25 and 30 MM
BTU/hr.

The amendments to N.J.A.C. 7:27-16.9 regulate stationary combustion
turbines down to 25 MM BTU/hr in order to improve their fuel efficiency
and reduce emissions.  Therefore, EPA is proposing approval of the
amendments to N.J.A.C. 7:27-16.9.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-16.9.

5. N.J.A.C. 7:27-16.10: Stationary reciprocating engines

The applicability threshold for stationary reciprocating engines is
lowered from 500 bhp (370 kW) to 50 bhp (37 kW), if used to generate
electricity.  The compliance date for meeting the new CO limit is March
7, 2007.  Sources must demonstrate compliance by March 7, 2008.  In
addition, stationary reciprocating engines must have the combustion
process adjusted in accordance with the procedure in N.J.A.C 7:27-19.16,
at manufacturers’ recommended schedules,

beginning in 2005 for units 370 kW or greater and in 2007 for units
between 37kW and 370 kW.

           The amendments to N.J.A.C. 7:27-16.10 regulate stationary
reciprocating engines down to 50 bhp in order to improve their fuel
efficiency and reduce emissions.  Therefore, EPA is proposing approval
of the amendments to N.J.A.C. 7:27-16.10.

Recommended Action:  Proposed Approval of N.J.A.C. 7:27-16.10.

6.  Emergency generators

           Both N.J.A.C. 7:27-16.9 and 16.10 contain exceptions for
emergency generators.  Their exclusion from certain requirements does
not conflict with the reasonably available control techniques (RACT)
determination.  However, the reader is referred to section III.C.2 of
this TSD for a full discussion of the acceptability of this exception.

7.  Discrete emission reduction credits

		See section III.B of this TSD.

F.		Subchapter 22: Operating Permits

		Though Subchapter 22 was included with this SIP revision, Subchapter
22 does not

become part of the SIP.  It should be noted that Subchapter 22 is
NJDEP’s operating permit rule that was separately approved under title
V of the Clean Air Act.  Therefore, the proper procedure for approving
this rule is via an operating permit program revision.  EPA Region 2
will initiate this process.  EPA will therefore exclude Subchapter 22
from the SIP revision process.  Instead, the information on Subchapter
22 as provided in the NJ SIP revision package will be processed as a
title V program revision under separate cover.

IV. 		CONCLUSION

		EPA evaluated New Jersey’s submittal for consistency with the Act,
EPA regulations and EPA policy.  The proposed new control measures will
strengthen the SIP by providing additional NOx emission reductions.
Accordingly, EPA is proposing to approve the revisions to Subchapter 19,
and related revisions to Subchapter 16, as adopted on September 8, 2005,
except that EPA is

not acting, at this time, on OMET Program provisions in Subchapters 16
and 19 or the new amendments to phased compliance plans by repowering
and innovative control technology in

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# RACT compliance beyond May 31, 1995, in general, and beyond May 1,
1999 for completion of repowering for sources that should have complied
by the date required in the March 29, 1999 EPA-approved SIP.  In
addition, at a later date, EPA will act on Subchapter 8, as adopted by
New Jersey on September 8, 2005.

		With the adoption of Subchapter 19, New Jersey has fulfilled its
obligation to adopt all six control measures that New Jersey identified
as necessary to attain the 1-hour ozone standard.  Therefore, EPA will
not proceed with the May 27, 2004 (69 FR 30249) proposed Finding of
Failure to Implement.

 	The EPA defines 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 Fed. Reg. 53762 (Sept. 17, 1979).

     2 OTC Model Rule: “Additional Nitrogen Oxides (NOx) Control
Measures,” March 6, 2001.

 	Standards of Performance for Stationary Compression Ignition Internal
Combustion Engines.  70 Fed. Reg. 39869-74 (July 11, 2005).

 	Draft Final Report entitled, “Output-Based Regulations: A Handbook
for Air Regulators,” prepared by EPA’s Office of Atmospheric
Programs, Climate Protection Partnerships Division, August 2004.   See
HYPERLINK "http://www.epa.gov/chp/state_resources/output_based_reg.htm"
http://www.epa.gov/chp/state_resources/output_based_reg.htm

 	OTC Model Rule: “Additional Nitrogen Oxides (NOx) Control
Measures,” March 6, 2001.

 	“Review of State Implementation Plans and Revisions for
Enforceability and Legal Sufficiency,” September 23, 1987; memorandum
from J. Craig Potter, Thomas L. Adams Jr., and Francis S. Blake
addressed to EPA Regional Administrators, Regional Councils and Regional
Air Division Directors.

 	Ppmvd means parts per million measured on a dry volume basis.

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