DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTAL CONTROL

Division of Air and Waste Management

ORDER 20050A-0008

GENERAL NOTICE

Under the authority vested in the Secretary of the Department of Natural Resources and Environmental Control (“the Department”) under 29 Del.C. §§8001 et seq., the following findings and conclusions are entered as an Order of the Secretary:

1. Based on the record developed, as reviewed in the Hearing Officer’s Report (“Report”), dated January 14, 2005, and appended hereto and incorporated herein, I find and conclude that the record supports approval of the issuance, in final form, of the 2002 Demonstration Compliance document prepared pursuant to the federal Clean Air Act, as amended;

2. The 2002 Demonstration Compliance document indicates that Delaware’s New Castle and Kent Counties have experienced a 9% reduction in air emissions of Volatile Organic Compounds and Nitrogen Oxide over the three year reporting period. These air contaminants produce ozone, and high levels of ground level ozone will harm the respiratory system and cause breathing problems, throat irritation, coughing, chest pain, and increase the susceptibility to respiratory infection, particularly among children, the elderly and anyone with respiratory diseases. High levels of ozone also damages agriculture and forests. The progress in achieving the 9% reduction in ozone producing emissions is based upon the success of the Department’s State Implementation Plan, which has directed the regulatory steps to reduce ozone producing emissions in Delaware;

3. I find and conclude that the record supports approval of the issuance of the 2002 Demonstration Compliance as the Department’s final document, and its submission to the EPA as Delaware’s compliance with the federal law, as well as evidence of the success of Delaware’s efforts to reduce ozone producing air emissions;

4. The Department provided adequate public notice of the public hearing in a manner required by the applicable law and regulations;

5. The final 2002 Demonstration Compliance document shall be published as a notice in the Delaware Register of Regulations;

6. The Department considered all timely public comments and questions on the 2002 Demonstration Compliance document; as presented to the Department in writing and orally at the public hearing; and

7. The Department has an adequate record for its decision, and no further public hearing is appropriate or necessary.

John A. Hughes, Secretary

Final Submittal

DELAWARE 2002 MILESTONE COMPLIANCE DEMONSTRATION FOR KENT AND NEW CASTLE COUNTIES

Demonstrating Adequate Progress toward Attainment of the 1-Hour National Ambient Air Quality Standard for Ground-Level Ozone

Submitted to US Environmental Protection Agency

By Delaware Department of Natural Resources and Environmental Control

March 2005

Acronym List

AQM Air Quality Management Section of DNREC

CAAA Clean Air Act Amendments of 1990

CMSA Consolidated Metropolitan Statistical Area

CO Carbon Monoxide

DAWM Division of Air and Waste Management of

DNREC

DNREC Delaware Department of Natural Resources

and Environmental Control

EID Emission Inventory Development

EPA United States Environmental Protection

Agency

FMVCP Federal Motor Vehicle Control Program

I/M Inspection and Maintenance

LEV Low Emission Vehicle

MCD Milestone Compliance Demonstration

NAA Nonattainment Area

NAAQS National Ambient Air Quality Standard

NLEV National Low Emission Vehicle

NOx Oxides of Nitrogen

OAQPS - Office of Air Quality Planning and Standards

of EPA

OTAG Ozone Transport Assessment Group

OTC Ozone Transport Commission

OTR Ozone Transport Region

PCP Planning and Community Protection Branch of

DNREC

PEI Periodic Emission Inventory

RACT Reasonably Available Control Technology

RPP Rate-of-Progress Plan

RVP Reid Vapor Pressure

SCC Source Classification Code

SIC Standard Industrial Classification

SIP State Implementation Plan

TPD Tons per day

TPY Tons per year

VOC Volatile Organic Compound

Summary

Under the Clean Air Act Amendments of 1990 (CAAA), Kent and New Castle Counties in Delaware are classified as severe nonattainment areas with respect to the 1-hour ozone National Ambient Air Quality Standard (NAAQS). This document addresses Delaware’s 2002 milestone year compliance demonstration regarding progress toward attainment of the 1-hour ozone NAAQS.

Under Sections 182(b)(1) and 182(d) of CAAA, Delaware is required (1) by 1996 to achieve a 15% reduction in emissions of volatile organic compounds (VOCs) from its 1990 level in the two nonattainment counties, (2) by 1999 to achieve an additional 9% reduction in emissions of either VOCs or oxides of nitrogen (NOx) from the 1990 levels, and (3) by 2002 to achieve a second additional 9% reduction in emissions of either VOCs or NOx from the 1990 levels. Under these requirements, the 2002 target levels of VOC and NOx emissions for the two nonattainment counties in Delaware have been determined to be 101.54 tons per day (TPD) and 143.12 TPD, respectively. To achieve these emissions targets, Delaware implemented numerous control measures over a large variety of VOC and NOx emission sources from 1990 to 2002. Delaware’s 2002 emission inventory, which has been recently compiled, shows that the 2002 inventoried VOC and NOx emissions in Kent and New Castle Counties are 78.12 TPD and 144.49 TPD, respectively. These inventoried VOC and NOx emissions, when combined together and expressed as an equivalent VOC emission, are significantly lower than the required 2002 targets levels. Thus, Delaware demonstrates herein that its 2002 milestone for complying with the CAAA’s VOC and NOx emission reduction requirements has been successfully met.

1.0 Introduction

1.1 Background

The Clean Air Act Amendments of 1990 (CAAA) set forth National Ambient Air Quality Standards (NAAQS) for the ground-level ozone. High levels of ground level ozone will harm the respiratory system and cause breathing problems, throat irritation, coughing, chest pains, and greater susceptibility to respiratory infection. Children, the elderly and individuals with respiratory diseases are especially vulnerable to the threat of ozone. Even healthy individuals can be harmed if they attempt strenuous activity on days with high ozone levels. High levels of ozone also cause serious damage to forests and agricultural crops, resulting in economic losses to logging and farming operations. Currently, there are two national standards for the ground-level ozone, i.e., the 1-hour standard (0.12 ppm) and the 8-hour standard (0.08 ppm). This document addresses issues relevant to the 1-hour standard only.

The CAAA classifies five nonattainment areas (NAA) that exceed the 1-hour ozone NAAQS based on the severity of the pollution problem. In the order of increasing severity, they are marginal, moderate, serious, severe, and extreme. According to Section 181 of CAAA, attainment dates for individual areas depend on their nonattainment designations. The Philadelphia Consolidated Metropolitan Statistical Area (CMSA) is classified as a severe nonattainment area (Figure 1), which has an attainment date of 2005. As shown in Figure 1, Kent and New Castle Counties in Delaware fall within the Philadelphia CMSA. Thus, these two counties are subject to all requirements set forth for the severe ozone nonattainment class. All discussions and data presented in this document apply only to Kent and New Castle Counties.

Generally, the ground level ozone is not directly emitted to the atmosphere, but is formed in the lower atmosphere by photochemical reactions mainly between volatile organic compounds (VOC) and nitrogen oxides (NOx) in the presence of sunlight. Thus, VOC and NOx are defined as ozone precursors. In order to reduce ozone concentration in the ambient air, the CAAA requires all ozone nonattainment areas to achieve specific reductions in anthropogenic VOC emissions and/or NOx emissions over several specified periods of years until the ozone standard is attained. This requirement for periodic emission reductions is termed as “rate of progress” toward the attainment of the 1-hour ozone standard (Reference 1).

Under Section 182(d) of CAAA, Delaware is required to develop and submit a State Implementation Plans (SIP) revision to the United States Environmental Protection Agency (EPA) for each of the milestone years of 1996, 1999, 2002 and 2005. In these plans, Delaware has to show that, by adopting and implementing adequate control measures, it can achieve adequate rate-of-progress reductions in VOC and/or NOx emissions for its severe ozone nonattainment area, i.e., Kent and New Castle Counties. Since these state implementation plans construct the path of Delaware’s rate of progress toward the attainment of the ozone standard, they are termed as Delaware’s Rate-of-Progress Plans (RPPs).

Under Section 182(a) of the CAAA, Delaware is required to develop comprehensive emission inventories of ozone precursors for 1993, 1996, 1999, 2002 and 2005 to monitor actual VOC and NOx emissions from its nonattainment areas along the path of rate of progress. These emission inventories are termed as Delaware’s periodic emission inventories (PEIs). Under Sections 182(a) and 182(g) of the CAAA, Delaware is required to use these periodic emission inventories (except the 1993 PEI) to demonstrate whether Delaware meets the required emission reductions as specified in its rate-of-progress plans in individual milestone years. This demonstrating process is termed as milestone compliance demonstration (Reference 1).

This document demonstrates Delaware 2002 milestone year compliance with adequate progress in emission reductions toward attainment of the 1-hour ozone NAAQS as required by the CAAA. The document is hereafter referred to as “Delaware 2002 Milestone Compliance Demonstration.”

Figure 1. Philadelphia Consolidated Metropolitan Statistical Area (CMSA) Nonattainment Area.¹

1.2 Responsibilities

The agency with direct responsibility for preparing and submitting this document is Delaware Department of Natural Resources and Environmental Control (DNREC), Division of Air and Waste Management (DAWM), Air Quality Management Section (AQM), under the direction of Ali Mirzakhalili, Program Administrator. The working responsibility for Delaware’s air quality management planning falls within the Planning and Community Protection (PCP) Branch of AQM Section, under the management of Raymond H. Malenfant, Program Manager and Ronald A. Amirikian, Planning Supervisor. Frank F. Gao, Environmental Engineer of Airshed Evaluation and Planning Program in the PCP Branch, is the project leader and principal author of this document. Questions or comments regarding this document should be addressed to F. Gao, (302)323-4542, AQM, 715 Grantham Lane, New Castle, DE 19720, or be e-mailed to Frank.Gao@state.de.us.

2.0 Delaware State Implementation Plans

2.1 Delaware 1990 Base Year Emission Inventory

Section 182(a)(1) of CAAA requires each state with ozone nonattainment areas to develop a comprehensive 1990 emission inventory for ozone precursors for its nonattainment areas. The emission inventory must be submitted as a state implementation plan (SIP) revision to EPA for approval. This 1990 base year emission inventory is used as the basis for a state to develop its rate-of-progress plans and control strategies toward attainment of the 1-hour ozone standard. Delaware’s 1990 base year emission inventory was submitted to the EPA in May 1994, and approved by EPA in March 1996 (Reference 2).

The 1990 Base Year Inventory is categorized by five source sectors, i.e., point, stationary area, off-road mobile, on-road mobile and biogenic source sectors. Since volatile organic compounds (VOC), nitrogen oxides (NOx) and carbon monoxide (CO) are precursors for ground level ozone formation, their emissions from these source sectors in 1990 are inventoried and reported in the 1990 Base Year Inventory. Because the contribution of CO to ozone formation is insignificant, the CO component of the 1990 Base Year Inventory is not included in Delaware's rate-of-progress planning for attainment of ozone standard. A summary of VOC and NOx emissions by county in the 1990 Base Year Inventory is presented in Table 1. The unit of emissions reported in Table 1 is tons per day (TPD) in the peak ozone season. The peak ozone season in Delaware is defined as from June 1 through August 31.

Table 1. Summary of VOC and NOx Emissions (in TPD) in 1990 Base Year Inventory*

* Data obtained from Delaware 1990 Base Year Emission Inventory (Reference 2).

2.2 Delaware Rate-of-Progress Plans and Milestone Year Emission Targets

Under Sections 182(b)(1) and 182(d), Delaware is required to develop a rate-of-progress plan (as a SIP revision) for the period from 1990 to 1996. This plan must describe how Delaware could achieve an actual VOC emission reduction of at least 15% of its 1990 VOC emission level, and thus is termed as Delaware 1996 Rate-of-Progress Plan (RPP) or 15% RPP (Reference 3). The year of 1996 is defined as the first milestone year toward attainment of the 1-hour ozone standard.

In addition to the 15% VOC emission reduction, Section 182(d) of CAAA requires Delaware to submit three post-1996 rate-of-progress plans that will lead to VOC and/or NOx emission reductions of at least 3% per year between 1996 and 2005. These three post-1996 plans are: the 1999 RPP covering a 3-year period from 1997 to 1999, the 2002 RPP covering the period from 2000 to 2002, and the 2005 RPP covering the period from 2003 and 2005. Based on the 3% per year emission reduction requirements, these three RPPs set forth Delaware’s VOC and NOx emission targets in their corresponding milestone years of 1999, 2002 and 2005. The required rate-of-progress reductions in VOC and/or NOx emissions in each rate-of-progress plan are estimated from the 1990 baseline level. For this purpose, the 1990 base year emissions in Table 1 must be adjusted to (1) include only anthropogenic and photochemically reactive emissions, and (2) exclude emission reductions from control measures promulgated prior to the 1990 CAA Amendments (Reference 1). After these adjustments, the required VOC and/or NOx emission reductions can be estimated, and then the VOC and/or NOx emission targets of each milestone year can be calculated. A summary of VOC and /or NOx emission targets for individual milestone years are presented in Table 2. Details of how to conduct base-year inventory adjustments and how to estimate emission reductions and emission targets can be found in References 1, 2, 3, 4, 5, 6 and 7.

Table 2. Delaware VOC and/or NOx Emission Targets for Individual Milestone Years

2.3 Control Measures and Expected VOC/NOx Emissions in 2002 RPP

To meet the 2002 VOC and NOx emission targets, Delaware proposed numerous control measures in its 2002 RPP. These control measures include federal mandatory rules and Delaware state regulations to be promulgated prior to the peak ozone season of 2002. These rules and regulations cover a large variety of VOC and NOx emission sources in all anthropogenic source sectors. A list of the control measures, along with their implementation dates, is given in Table 3. Detailed descriptions of individual rules and regulations can be found in Delaware 2002 RPP, as amended in December 2000 (Reference 5), and Delaware Regulations Governing Control of Air Pollution (Reference 8).

Table 3. Control Measures Proposed in Delaware’s 2002 RPP

In the 2002 RPP, Delaware projected 2002 VOC and NOx emissions in the peak ozone season assuming all control measures listed in Table 3 were implemented as expected. The projections are termed as "control strategy projections" and conducted following the methods and procedures specified in relevant EPA guidance documents (References 9, 10 and 11). In the projection calculations, factors such as growth, control efficiency, rule effectiveness, and rule penetration, are considered and incorporated whenever appropriate for point sources, stationary area sources and non-road mobile sources. Emission projections for on-road mobile sources were conducted using EPA's MOBILE5a software. Details of the control strategy projections are presented in the 2002 RPP, as amended in December 2000 (Reference 5). A summary of the 2002 VOC and NOx control strategy emission projections is given in Table 4.

Table 4. Delaware 2002 Control Strategy Projections for VOC and NOx Emissions (TPD)

As shown in Table 4, the total VOC and NOx emissions projected for 2002 in Delaware’s nonattainment area (i.e., Kent and New Castle Counties) are 101.54 TPD and 142.08 TPD, respectively. The VOC projection is equal to the emission target, while the NOx projection is lower than the target (143.12 TPD). Therefore, the 2002 RPP concludes that its proposed control measures are adequate and enough for Delaware to meet CAAA’s rate-of-progress requirements on VOC and NOx emission reductions in the milestone year of 2002.

2.4 Delaware 1993, 1996, 1999 and 2002 Periodic Emission Inventories

Under Section 182(a) of the CAAA, Delaware is required to compile comprehensive periodic emission inventories of ozone precursors for 1993, 1996, 1999, 2002 and 2005. The emission data in these periodic inventories are either reported directly by individual sources (e.g., point sources such as industrial facilities), or calculated from the subject year activity data obtained from relevant sources or other agencies (e.g., area sources). These periodic emission inventories cover all sources included in the Delaware 1990 Base Year Emission Inventory. Delaware submitted to EPA its 1993 periodic emission inventory (PEI) in January 1998, its 1996 EPI in November 1999, its 1999 PEI in June 2002, and its 2002 PEI in June 2004. Emissions in these periodic emission inventories are reported in tons per year (TPY) and in tons per day (TPD) in the peak ozone season. Details of how Delaware compiled these periodical emission inventories are described in References 12 through 15. For the purpose of demonstrating milestone year compliance, a summary of VOC and NOx emissions (in the unit of TPD) in the 1996 PEI, 1999 PEI and 2002 PEI is presented in Table 5.

Table 5. Summary of Delaware's 1996, 1999 and 2002 Periodic Emission Inventories (TPD)

2.4 Delaware 1996 and 1999 Milestone Compliance Demonstration

As mentioned earlier, under Sections 182(d) of CAAA, Delaware was required (1) to achieve in 1996 an actual VOC emission reduction of at least 15% from its 1990 VOC emission level, (2) to achieve in 1999 an additional 9% VOC and/or NOx emission reductions from the 1990 base year VOC or NOx emission levels. To demonstrate achieving these emission reduction goals, Delaware developed its 1996 milestone compliance demonstration (MCD) document in February 2000, and its 1999 MCD document in June 2003. A summary of the 1996 MCD is presented in Table 6, and a summary of the 1999 MCD is presented in Table 7.

Table 6. Delaware 1996 Milestone Compliance Demonstration Results*

*Data obtained from Reference 16. ** % = (1996 PEI – 1996 Target)/1996 Target.

Table 7. Delaware 1999 Milestone Compliance Demonstration Results*

*Data obtained from Reference 17. ** % = (1999 PEI – 1999 Target)/1999 Target.

As indicated in Table 6, the 1996 PEI VOC emission was 12.0% lower than the 1996 VOC emission target required by CAAA. As indicated in Table 7, the 1999 PEI VOC and NOx emissions were 19.5% and 21.0% lower than the required 1999 VOC and NOx emission targets, respectively. Therefore, for these two milestone years (i.e., 1996 and 1999), Delaware demonstrated that its VOC and/or NOx emissions were fully in compliance with the emission reduction requirements set forth by CAAA.

3.0 Delaware 2002 Milestone Compliance Demonstration

In the 2002 RPP, Delaware determined that the 2002 targets of VOC and NOx emissions for its nonattainment area (i.e., Kent and New Castle Counties) were 101.54 TPD and 143.12 TPD, respectively, in the peak ozone season (Table 2). In the recently compiled 2002 PEI, Delaware has shown that the actual total VOC and NOx emissions in 2002 are 78.12 TPD and 144.49 TPD, respectively, in the peak ozone season (Table 5). A comparison of the 2002 emission targets and the 2002 PEI emissions is presented in Table 8. As indicated in Table 8, the VOC emission in the 2002 PEI is 23.42 TPD lower than the target level, while the NOx emission in the 2002 PEI is 1.37 TPD higher than the 2002 target

Table 8. Comparison of 2002 Emission Targets and 2002 Inventoried Emissions.

The 1990 baseline emission levels for VOC and NOx, as adjusted to 2002, are 133.15 TPD and 158.40 TPD, respectively (Reference 5). Thus, the VOC-to-NOx substitution ratio is 133.15:158.40 = 1:1.19. Using this ratio, the equivalent VOC emission for the over-target 1.37 TPD NOx emission can be calculated to be 1.37/1.19 = 1.15 TPD. Subtracting this number from the 23.42 TPD under-target VOC emission gives 23.42 – 1.15 = 22.27 TPD. In other words, the 2002 overall or net emission, expressed as an equivalent VOC emission, is 22.27 TPD lower than the 2002 emission target. Therefore, Delaware has demonstrated herein that its 2002 emissions are in compliance with the emission reduction requirements set forth by CAAA.

4.0 References

1. Guidance on the Relationship between the 15 Percent Rate-of-Progress Plans and Other Provisions of the Clean Air Act, EPA-452/R-93-007, Office of Air Quality Planning and Standards, U.S. Environmental Protection Agency, Research Triangle Park, North Carolina, May 1993.

2. The 1990 Base Year Ozone SIP Emissions Inventory for VOC, CO, and NOx. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, revised as of May 3, 1994.

3. The Delaware 15% Rate-of-Progress Plan. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, February 1995.

4. The Delaware 1999 Rate-of-Progress Plan for Kent and New Castle Counties. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, December 1997, as amended in June 1999.

5. The Delaware 2002 Rate-of-Progress Plan for Kent and New Castle Counties. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, February 2000, as amended in December 2000.

6. The Delaware 2005 Rate-of-Progress Plan for Kent and New Castle Counties. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, December 2000.

7. Guidance on the Post-1996 Rate-of-Progress Plan and the Attainment Demonstration, Ozone/Carbon Monoxide Branch, U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards, Research Triangle Park, North Carolina, 27711, February 18, 1994.

8. Regulations Governing the Control of Air Pollution. Air Quality Management Section, Division of Air and Waste Management, Delaware Department of Natural Resources and Environmental Control, Dover, Delaware.

9. Procedures for Preparing Emissions Projections. EPA-450/4-91-019, Office of Air Quality Planning and Standards, U.S. Environmental Protection Agency, Research Triangle Park, North Carolina, July 1991.

10. Guidance for Growth Factors, Projections, and Control Strategies for the 15 Percent Rate-of-Progress Plans. EPA-452/R-93-002, Office of Air Quality Planning and Standards, U.S. Environmental Protection Agency, Research Triangle Park, North Carolina, March 1993.

11. Guidance on Preparing Enforceable Regulations and Compliance Programs for the 15 Percent Rate-of-Progress Plans. EPA-452/R-93-005, Office of Air Quality Planning and Standards, U.S. Environmental Protection Agency, Research Triangle Park, North Carolina, March 1993.

12. The 1993 Periodic Ozone State Implementation Plan Emission Inventory for VOC, NOx, and CO. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, January 1998.

13. The 1996 Periodic Ozone State Implementation Plan Emission Inventory for VOC, NOx, and CO. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, November 1999.

14. The 1999 Periodic Ozone State Implementation Plan Emission Inventory for VOC, NOx, and CO. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, June 2002.

15. The 2002 Periodic Ozone State Implementation Plan Emission Inventory for VOC, NOx, and CO. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, June 2004.

16. Delaware 1996 Milestone Demonstration for Kent and New Castle Counties. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, February 2000.

17. Delaware 1999 Milestone Compliance Demonstration for Kent and New Castle Counties. Air Quality Management Section, Department of Natural Resources and Environmental Control, Dover, Delaware, June 2003.