1. (1) Purpose. The purposes of 310 CMR 7.76 are to prevent and control pollution to the atmosphere, as required by M.G.L. c. 111, §§ 142A and 142B, to support Massachusetts in achieving greenhouse gas emissions reductions goals established pursuant to M.G.L. c. 21N and to reduce hydrofluorocarbon emissions by adopting specific prohibitions for certain substances in refrigeration equipment, chillers, aerosol propellants, and foam end-uses.
2. (2) Definitions. The definitions in 310 CMR 7.76(2) apply to 310 CMR 7.76. Where a term defined in 310 CMR 7.70 also appears in 310 CMR 7.76, the definition in 310 CMR 7.76 is applicable for the purpose of 310 CMR 7.76.

Aerosol Propellant. A compressed gas or vapor in a container which, upon release of pressure and expansion through a valve, carries another substance from the container as a mist or spray.

Air Conditioning Equipment. Chillers, both centrifugal chillers and positive displacement chillers, intended for comfort cooling of occupied spaces.

Capital Cost. An expense incurred in the production of goods or in rendering services including, but not limited to, the cost of engineering, purchase, and installation of components or systems, and instrumentation, and contractor and construction fees.

Centrifugal Chiller. Air conditioning equipment that utilizes a centrifugal compressor in a vapor-compression refrigeration cycle. Under Centrifugal Chiller, a centrifugal chiller is a chiller intended for comfort cooling and does not include chillers used for industrial process cooling and refrigeration.

Cold Storage Warehouse. A cooled facility designed to store meat, produce, dairy products, and other products that are delivered to other locations for sale to consumers.

Component. A part of a refrigeration system, including but not limited to, a condensing unit, compressor, condenser, evaporator, and receiver; and all of its connections and subassemblies, without which the refrigeration system will not properly function or will be subject to failures.

Cumulative Replacement. All additions or changes in multiple components within a three-year period.

Effective Date of Prohibition. The date on which the prohibitions in 310 CMR 7.76(6) take effect.

End-use. Processes or classes of specific applications within industry sectors including, but not limited to, those listed in 310 CMR 7.76(6).

Flexible Polyurethane. A non-rigid polyurethane foam including, but not limited to, that used in furniture, bedding, and chair cushions.

Foam. A product with a cellular structure formed via a foaming process in a variety of materials that undergo hardening via a chemical reaction or phase transition.

Foam Blowing Agent. A substance that functions as a source of gas to generate bubbles or cells in the mixture during the formation of foam.

Household Refrigerators and Freezers. Refrigerators, refrigerator-freezers, freezers, and miscellaneous household refrigeration appliances intended for residential use. For the purposes of 310 CMR 7.76, Household Refrigerators and Freezers does not include Household Refrigerators and Freezers – Compact, or Household Refrigerators and Freezers – Built-in.

Household Refrigerators and Freezers – Compact. Any refrigerator, refrigerator-freezer or freezer intended for residential use with a total refrigerated volume of less than 7.75 cubic feet (220 liters).

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Household Refrigerators and Freezers – Built-in. Any refrigerator, refrigerator-freezer or freezer intended for residential use with 7.75 cubic feet or greater total volume and 24 inches or less depth not including doors, handles, and custom front panels; with sides which are not finished and not designed to be visible after installation; and that is designed, intended, and marketed exclusively to be: installed totally encased by cabinetry or panels that are attached during installation; securely fastened to adjacent cabinetry, walls or floor; and equipped with an integral factory-finished face or to accept a custom front panel.

Hydrofluorocarbon or HFC. A class of greenhouse gases that are saturated organic compounds containing hydrogen, fluorine, and carbon.

Integral Skin Polyurethane. A self-skinning polyurethane foam including, but not limited to, that used in car steering wheels and dashboards.

Metered Dose Inhaler, or Medical Dose Inhaler, or MDI. A device that delivers a measured amount of medication as a mist that a patient can inhale, typically used for bronchodilation to treat symptoms of asthma, chronic obstructive pulmonary disease (COPD), chronic bronchitis, emphysema, and other respiratory illnesses. An MDI consists of a pressurized canister of medication in a case with a mouthpiece.

New means:

1. (a) products or equipment that are manufactured on or after the effective date of prohibition in 310 CMR 7.76(6): Table 1;
2. (b) products or equipment first assembled and installed for an intended purpose with new or used components on or after the effective date of prohibition in 310 CMR 7.76(6): Table 1;
3. (c) products or equipment to which components have been added to increase system capacity on or after the effective date of prohibition in 310 CMR 7.76(6): Table 1; or
4. (d) products or equipment replaced or cumulatively replaced such that the cumulative capital cost on or after the effective date of prohibition in 310 CMR 7.76(6): Table 1 of replacement exceeds 50% of the capital cost of replacing the whole system.

Person. Any individual, firm, association, organization, manufacturer, distributor, partnership, trust, corporation, limited liability company, company, state, or local governmental agency or public district.

Phenolic Insulation Board and Bunstock. Phenolic insulation including but not limited to that used for roofing and walls. Bunstock is a large solid box-like structure formed during the production of polystyrene insulation.

Polyolefin. Foam sheets and tubes made of polyolefin, a macromolecule formed by the polymerization of olefin monomer units.

Polystyrene Extruded Boardstock and Billet (XPS). A foam formed from polymers of styrene and produced on extruding machines in the form of continuous foam slabs which can be cut and shaped into panels used for roofing, walls, flooring, and pipes.

Polystyrene Extruded Sheet. Polystyrene foam including, but not limited to, that used for packaging and buoyancy or floatation. It is also made into food-service items including, but not limited to, hinged polystyrene containers (for "take-out" from restaurants); food trays (meat and poultry), plates, bowls, and retail egg containers.

Polyurethane. A polymer formed principally by the reaction of an isocyanate and a polyol.

Positive Displacement Chiller. Vapor compression cycle chillers that use positive displacement compressors, typically used for commercial comfort air conditioning. For the purpose of 310 CMR 7.76, Positive Displacement Chiller is a chiller intended for comfort cooling and does not include cooling for industrial process cooling and refrigeration.

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Refrigerant. Any substance, including blends and mixtures, which is used for heat transfer purposes.

Refrigerated Food Processing and Dispensing Equipment. Retail food refrigeration equipment that is designed to process food and beverages that are intended for immediate or near-immediate consumption including, but not limited to, chilled and frozen beverages, ice cream, and whipped cream. For the purpose of 310 CMR 7.76, Refrigerated Food Processing and Dispensing Equipment does not include water coolers, or units designed solely to cool and dispense water.

Refrigeration Equipment. Any stationary device that is designed to contain and use refrigerant to establish or maintain colder than ambient temperatures in a confined space including, but not limited to, retail or commercial refrigeration equipment, household refrigerators and freezers, and cold storage warehouses.

Remote Condensing Units. Retail refrigeration equipment or units that have a central condensing portion and may consist of compressors, condensers, and receivers assembled into a single unit, which may be located external to the sales area. The condensing portion (and often other parts of the system) is located outside the space or area cooled by the evaporator. For example, Remote Condensing Units are commonly installed in convenience stores, specialty shops (e.g., bakeries, butcher shops), supermarkets, restaurants, and other locations where food or other products are stored, served, or sold.

Residential Use. Use by a private individual of a substance, or a product containing the substance, in or around a permanent or temporary household, including use in both single and multi-unit dwellings, during recreation, or for any personal use or enjoyment. Use within a household for commercial or medical applications is not included in this definition, nor is use in automobiles, watercraft, or aircraft.

Retail Food Refrigeration or Commercial Refrigeration. Equipment designed to store and display chilled or frozen goods for commercial sale including, but not limited to, stand-alone units, refrigerated goods processing and dispensing equipment, remote condensing units, supermarket systems, and vending machines.

Retrofit. To convert an appliance from one refrigerant to another refrigerant. Retrofitting includes the conversion of the appliance to achieve system compatibility with the new refrigerant and may include, but is not limited to, changes in lubricants, gaskets, filters, driers, valves, o-rings or appliance components.

Rigid Polyurethane and Polyisocyanurate Laminated Boardstock. Laminated board insulation made with polyurethane or polyisocyanurate foam including, but not limited to, that used for roofing and walls.

Rigid Polyurethane Appliance Foam. Polyurethane insulation foam in domestic (e.g. residential) appliances.

Rigid Polyurethane Commercial Refrigeration and Sandwich Panels. Polyurethane foam, used to provide insulation in walls and doors including, but not limited to, that used for commercial refrigeration equipment and garage doors.

Rigid Polyurethane High-pressure Two-component Spray Foam. A liquid polyurethane foam system sold as two parts (i.e., A-side and B-side) in non-pressurized containers; and is field or factory applied in situ using high-pressure proportioning pumps at 800-1600 pounds per square inch (psi) and an application gun to mix and dispense the chemical components.

Rigid Polyurethane Low-pressure Two-component Spray Foam. A liquid polyurethane foam system sold as two parts (i.e., A-side and B-side) in containers that are pressurized to less than 250 psi during manufacture of the system for application without pumps; and are typically applied in situ relying upon a liquid blowing agent and/or gaseous foam blowing agent that also serves as a propellant.

5/12/23 (Effective 11/11/22) - corrected 310 CMR - 250.102.76.48

Rigid Polyurethane Marine Flotation Foam. Buoyancy or flotation polyurethane foam used in boat and ship manufacturing for both structural and flotation purposes.

Rigid Polyurethane One-component Foam Sealants. A polyurethane foam generally packaged in aerosol cans that is applied in situ using a gaseous foam blowing agent that is also the propellant for the aerosol formulation.

Rigid Polyurethane Slabstock and Other. A rigid closed-cell polyurethane foam formed into slabstock insulation for panels and fabricated shapes for pipes and vessels.

Stand-Alone Unit. Retail refrigerators, freezers, and reach-in coolers (either open or with doors) where all refrigeration components are integrated and the refrigeration circuit is entirely brazed or welded. These systems are fully charged with refrigerant at the factory and typically require only an electricity supply to begin operation.

Stand-alone Low-temperature Unit. A stand-alone unit that maintains goods at temperatures at or below 32(cid:69)F (0(cid:69)C).

Stand-alone Medium-temperature Unit. A stand-alone unit that maintains goods at temperatures above 32°F (0 °C).

State (when capitalized). The Commonwealth of Massachusetts for disclosure requirements in 310 CMR 7.76(5).

Substance. Any chemical intended for use in the end-uses listed in 310 CMR 7.76(6).

Supermarket Systems. Multiplex or centralized retail food refrigeration equipment systems designed to cool or refrigerate, which operate with racks of compressors installed in a machinery room and which includes both direct and indirect systems.

Use. Any utilization of any substance including, but not limited to, utilization in a manufacturing process or product in Massachusetts, consumption by the end-user in Massachusetts, or in intermediate applications in Massachusetts, such as formulation or packaging for other subsequent applications. For the purposes of 310 CMR 7.76, Use excludes residential use, but it does not exclude manufacturing for the purpose of residential use.

Vending Machines. A self-contained unit that dispenses goods that must be kept cold or frozen.

1. (3) Applicability. 310 CMR 7.76 applies to any person who sells, leases, rents, offers for sale, installs, uses, or manufactures, in Massachusetts, any product or equipment that uses or will use a prohibited substance in the end-uses listed in 310 CMR 7.76(6). 310 CMR 7.76 does not apply to any person in Massachusetts who uses for residential use any combination of a Household Refrigerator or Freezer, a Household Refrigerator or Freezer – Compact, or a Household Refrigerator or Freezer – Built-in.

2. (4) Prohibitions.

   1. (a) No person may sell, lease, rent, offer for sale, install, use or manufacture, in Massachusetts, any product or equipment that uses or will use a prohibited substance in the end-uses listed in 310 CMR 7.76(6), unless an exemption is provided for the end-use in 310 CMR 7.76(7).
   2. (b) Except where existing equipment is retrofitted, nothing in 310 CMR 7.76 requires a person that acquired a product or equipment containing a prohibited substance prior to an effective date of prohibition in 310 CMR 7.76(6): Table 1 to cease use of that product or equipment.
   3. (c) Products or equipment manufactured prior to the applicable effective date of the prohibitions in 310 CMR 7.76(6): Table 1, including foam systems not yet applied on site or new refrigeration equipment for which a facility has received a building permit prior to the effective date of prohibition, may be sold, leased, rented, imported, exported, distributed, installed, and used on or after the effective date of prohibition.

5/12/23 (Effective 11/11/22) - corrected 310 CMR - 250.102.76.49

1. (5) Disclosure Statement. Except for the exemptions listed in 310 CMR 7.76(7): Table 1, as of the effective date of prohibition in 310 CMR 7.76(6): Table 1, any person who manufactures for sale in Massachusetts products or equipment in the air conditioning, refrigeration, foam, or aerosol propellant end-uses listed in 310 CMR 7.76(6), must provide a written disclosure or label to the buyer as follows.

   1. (a) For motor-bearing refrigeration and air conditioning equipment that is neither factory-charged nor pre-charged with refrigerant, the required disclosure or label must state "This equipment is prohibited from using any substance on the "List of Prohibited Substances" for that specific end-use, in accordance with State regulations for hydrofluorocarbons."

   2. (b) Except for products and equipment with existing labeling required by State building codes and safety standards which contain the information required in 310 CMR 7.76(5)(b)1. and 2., the disclosure or label for motor-bearing refrigeration and air conditioning equipment that are factory-charged or pre-charged with a hydrofluorocarbon or hydrofluorocarbon blend shall include:

      1. 1. The date of manufacture or a date code representing the date. If the manufacturer uses a date code for any product, the manufacturer shall file an explanation of each code with the Department; and
      2. 2. The refrigerant and foam blowing agent the product or equipment contains.

   3. (c) Except for foam products with existing labeling required by State building codes and safety standards which contain the information required in 310 CMR 7.76(5)(c)1. and 2., the disclosure or label for foam products shall include one of the two alternatives in 310 CMR 7.76(5)(c)1. and 2.:

      1. 1. Alternative 1.

         1. a. The date of manufacture or a date code representing the date. If the manufacturer uses a date code for any product, the manufacturer shall file an explanation of each code with the Department; and
         2. b. The foam blowing agent the product contains, or a reference to a Safety Data Sheet (complying with 29 CFR 1910.1200 requirements), if the latter identifies the foam blowing agent the product contains.
      2. 2. Alternative 2. "Where sold, compliant with State HFC regulations."

   4. (d) For aerosol propellants, the disclosure or label shall include one of the two alternatives in 310 CMR 7.76(5)(d)1. and 2.:

      1. 1. Alternative 1.

         1. a. The date of manufacture or a date code representing the date, which is indicated on the label, lid, or bottom of the container. If the manufacturer uses a date code for any product, the manufacturer shall file an explanation of each code with the Department; and
         2. b. The aerosol propellant the product contains, or availability of a Safety Data Sheet (complying with 29 CFR 1910.1200 requirements), if the latter identifies the propellant the product contains.
      2. 2. Alternative 2. "Where sold, compliant with State HFC regulations."
2. (6) List of Prohibited Substances by End-use. 310 CMR 7.76(6): Table 1 lists prohibited substances in specific end-uses and the effective date of prohibition, unless an exemption is provided for the end-use in 310 CMR 7.76(7). The prohibitions do not apply to products and equipment in specific end-uses manufactured prior to an applicable effective date of prohibition.

5/12/23 (Effective 11/11/22) - corrected 310 CMR - 250.102.76.50

Table 1: End-use and Prohibited Substances

End-use Prohibited Substances Effective Date of Prohibition

End-use Category: Aerosol Propellants

Aerosol Propellants HFC-125, HFC-134a, HFC-227ea January 1, 2021

and blends of HFC-227ea and HFC 134a

End-Use Category: Air Conditioning

Centrifugal chillers (new) FOR12A, FOR12B, HFC-134a, January 1, 2024

H F C - 2 2 7 e a , H F C - 2 3 6 f a , HFC245fa, R-125/ 134a/ 600a (28.1/70/1.9), R-125/ 290/ 134a/ 600a (55.0/1.0/42.5/1.5), R-404A, R-407C, R-410A, R-410B, R-417A, R-421A, R-422B, R-422C, R-422D, R-423A, R-424A, R-434A, R438A, R - 5 0 7 A , R S - 4 4 ( 2 0 0 3 composition), THR-03

Positive displacement chillers FOR12A, FOR12B, HFC-134a, January 1, 2024 (new) HFC-227ea, KDD6, R125/ 134a/

600a (28.1/70/1.9), R-125/ 290/ 134a/ 600a (55.0/1.0/42.5/1.5), R-404A, R-407C, R-410A, R-410B, R-417A, R-421A, R-422B, R-422C, R-422D, R-424A, R-434A, R-437A, R438A, R-507A, RS-44 (2003 composition), SP34E, THR-03

End-use Category: Refrigeration

Cold storage warehouses (new) HFC-227ea, January 1, 2023

R-125/290/134a/600a (55.0/1.0/42.5/1.5), R404A, R-407A, R-407B, R-410A, R-410B, R-417A, R-421A, R421B, R-422A, R-422B, R-422C, R-422D, R-423A, R-424A, R428A, R-434A, R-438A, R-507A, RS-44 (2003 composition)

Household refrigerators and FOR12A, FOR12B, HFC-134a, January 1, 2022 freezers (new) KDD6, R-125/290/134a/600a

(55.0/1.0/42.5/1.5), R- 404A, R-407C, R407F, R-410A, R-410B, R-417A, R-421A, R-421B, R-422A, R-422B, R-422C, R-422D, R-424A, R-426A, R-428A, R-434A, R-437A, R-438A, R-507A, RS24 (2002 formulation), RS 44 (2003 formulation), SP34E, THR-03

5/12/23 (Effective 11/11/22) - corrected 310 CMR - 250.102.76.51

Table 1: End-use and Prohibited Substances (continued)

End-use Prohibited Substances Effective Date of Prohibition

Household refrigerators and FOR12A, FOR12B, HFC 134a, January 1, 2021 freezers-compact (new) KDD6, R-125/290/134a/600a

(55.0/1.0/42.5/1.5), R-404A, R-407C, R- 407F, R-410A, R-410B, R- 417A, R-421A, R- 421B, R-422A, R-422B, R-422C, R-422D, R424A, R-426A, R-428A, R-434A, R-437A, R-438A, R- 507A, RS24 (2002 formulation), RS 44 (2003 formulation), SP34E, THR-03

Household refrigerators and FOR12A, FOR12B, HFC 134a, January 1, 2023 freezers-built in appliances KDD6, R- 125/290/134a/600a (new) (55.0/1.0/42.5/1.5), R- 404A,

R-407C, R-407F, R-410A, R-410B, R-417A, R-421A, R-421B, R-422A, R-422B, R-422C, R-422D, R424A, R-426A, R-428A, R-434A, R-437A, R-438A, R-507A, RS24 (2002 formulation), RS-44 (2003 formulation), SP34E, THR-03

Supermarket Systems (Retrofit) R-404A, R- 407B, R- 421B, January 1, 2021

R - 4 2 2 A , R - 4 2 2 C , R - 4 2 2 D , R428A, R-434A, R-507A

Supermarket Systems (New) HFC-227ea, R-404A, R-407B, January 1, 2021

R-421B, R-422A, R-422C, R-422D, R-428A, R-434A, R-507A

Remote Condensing Units R-404A, R-407B, R-421B, January 1, 2021 (Retrofit) R-422A, R-422C, R-422D,

R-428A, R-434A, R-507A

Remote Condensing Units HFC-227ea, R-404A, R-407B, R January 1, 2021 (New) 421B, R-422A, R-422C,

R-422D, R-428A, R-434A, R-507A

Stand-alone Units (Retrofit) R-404A, R-507A January 1, 2021

Stand-alone FOR12A, FOR12B, HFC-134a, January 1, 2021 Medium-temperature Units HFC-227ea, KDD6, (New) R-125/290/134a/600a

(55.0/1.0/42.5/1.5), R-404A, R407A, R-407B, R-407C, R407F, R-410A, R-410B, R417A, R-421A, R-421B, R-422A, R-422B, R-422C, R422D, R-424A, R-426A, R-428A, R-434A, R-437A, R438A, R-507A, RS-24 (2002 formulation), RS-44 (2003 formulation), SP34E, THR-03

5/12/23 (Effective 11/11/22) - corrected 310 CMR - 250.102.76.52

Table 1: End-use and Prohibited Substances (continued)

End-use Prohibited Substances Effective Date of Prohibition

Stand-alone Low-temperature HFC-227ea, KDD6, January 1, 2021 Units (New) R-125/290/134a/600a

(55.0/1.0/42.5/1.5), R-404A, R-407A, R-407B, R-407C, R-407F, R-410A, R-410B, R-417A, R-421A, R-421B, R422A, R-422B, R-422C, R-422D, R-424A, R-428A, R434A, R-437A, R-438A, R-507A, RS-44 (2003 formulation)

Refrigerated food processing HFC-227ea, KDD6, R-125/ 290/ January 1, 2021 and dispensing equipment 134a/ 600a (55.0/1.0/42.5/1.5), (New) R-404A, R-407A, R-407B,

R-407C, R-407F, R-410A, R-410B, R417A, R-421A, R-421B, R-422A, R-422B, R-422C, R-422D, R424A, R-428A, R-434A, R-437A, R-438A, R-507A, RS-44 (2003 formulation)

Vending Machines (Retrofit) R-404A, R-507A January 1, 2021

Vending Machines (New) FOR12A, FOR12B, HFC-134a, January 1, 2022

KDD6, R125/290/134a/600a (55.0/1.0/42.5/1.5), R-404A, R407C, R-410A, R-410B, R-417A, R-421A, R-422B, R422C, R-422D, R-426A, R-437A, R-438A, R-507A, RS-24 (2002 formulation), SP34E

End-use Category: Foams

Rigid Polyurethane and HFC-134a, HFC 245fa, January 1, 2021 Polyisocyanurate Laminated HFC-365mfc, and blends thereof Boardstock

Flexible Polyurethane HFC-134a, HFC-245fa, January 1, 2021

HFC-365mfc, and blends thereof

Integral Skin Polyurethane HFC-134a, HFC-245fa, January 1, 2021

HFC-365mfc, and blends thereof; Formacel TI, Formacel Z-6

Polystyrene Extruded Sheet HFC-134a, HFC-245fa, January 1, 2021

HFC-365mfc, and blends thereof; Formacel TI, Formacel Z-6

Phenolic Insulation Board and HFC-143a, HFC-134a, January 1, 2021 Bunstock HFC-245fa, HFC-365mfc, and

blends thereof

5/12/23 (Effective 11/11/22) - corrected 310 CMR - 250.102.76.53

Table 1: End-use and Prohibited Substances (continued)

End-use Prohibited Substances Effective Date of Prohibition

Rigid Polyurethane Slabstock HFC-134a, HFC-245fa, January 1, 2021 and Other HFC-365mfc and blends

thereof; Formacel TI, Formacel Z-6

Rigid Polyurethane Appliance HFC-134a, HFC-245fa, January 1, 2021 Foam HFC-365mfc and blends thereof;

Formacel TI, Formacel Z-6

Rigid Polyurethane Commercial HFC-134a, HFC-245fa, January 1, 2021 Refrigeration and Sandwich HFC-365mfc and blends thereof; Panels Formacel TI, Formacel Z-6

Polyolefin HFC-134a, HFC-245fa, January 1, 2021

HFC-365mfc and blends thereof; Formacel TI, Formacel Z-6

Rigid Polyurethane Marine HFC-134a, HFC-245fa, January 1, 2021 Flotation Foam HFC-365mfc and blends thereof;

Formacel TI, Formacel Z-6

Polystyrene Extruded HFC-134a, HFC-245fa, July 1, 2021 Boardstock and Billet (XPS) HFC-365mfc and blends thereof;

Formacel TI, Formacel B, Formacel Z-6

Rigid polyurethane (PU) HFC-134a, HFC-245fa, and January 1, 2021 high-pressure two-component blends thereof; blends of spray foam HFC365mfc with at least 4%

HFC-245fa, and commercial blends of HFC-365mfc with 7% to 13% HFC-227ea and the r e m a i n d e r H F C - 3 6 5 m f c ; Formacel TI

Rigid PU low-pressure HFC-134a, HFC-245fa, and January 1, 2021 two-component spray foam blends thereof; blends of

HFC365mfc with at least 4% HFC-245fa, and commercial blends of HFC-365mfc with 7% to 13% HFC-227ea and the r e m a i n d e r H F C - 3 6 5 m f c ; Formacel TI

Rigid PU one-component foam HFC-134a, HFC-245fa, and January 1, 2021 sealants blends thereof; blends of

HFC365mfc with at least 4% percent HFC -245fa, and c o m m e r c i a l b l e n d s o f HFC-365mfc with 7% to 13% HFC-227ea and the remainder HFC-365mfc; Formacel TI

5/12/23 (Effective 11/11/22) - corrected 310 CMR - 250.102.76.54

1. (7) Exemptions. 310 CMR 7.76(7): Table 1 lists exemptions to the prohibited substances and end-uses in 310 CMR 7.76(6).

   Table 1: Exemptions

End-use Category Prohibited Substances Acceptable Uses

Aerosol Propellants HFC-134a Cleaning products for removal of grease, flux and

other soils from electrical equipment; refrigerant flushes; products for sensitivity testing of smoke detectors; lubricants and freeze sprays for electrical equipment or electronics; sprays for aircraft maintenance; sprays containing corrosion preventive compounds used in the maintenance of aircraft, electrical equipment or electronics, or military equipment; sprays for aerospace manufacturing and rework operations; pesticides for use near electrical wires, in aircraft, in total release insecticide foggers, or in certified organic use pesticides for which EPA has specifically disallowed all other lower-GWP propellants; mold release agents and mold cleaners; lubricants and cleaners for spinnerettes for synthetic fabrics; duster sprays specifically for removal of dust from photographic negatives, semiconductor chips, specimens under electron microscopes, and energized electrical equipment; adhesives and sealants in large canisters; document preservation sprays; FDA-approved MDIs for medical purposes; wound care sprays; topical coolant sprays for pain relief; and products for removing bandage adhesives from skin.

Aerosol Propellants HFC-227ea and blends FDA-approved MDIs for medical purposes.

of HFC-227ea and HFC 134a

Air Conditioning HFC-134a Military marine vessels where reasonable efforts have

been made to ascertain that other alternatives are not technically feasible due to performance or safety requirements.

Air Conditioning HFC-134a and R-404A Human-rated spacecraft and related support

equipment where reasonable efforts have been made to ascertain that other alternatives are not technically feasible due to performance or safety requirements.

Foams - Except Rigid All substances Military applications where reasonable efforts have polyurethane (PU) been made to ascertain that other alternatives are not spray foam technically feasible due to performance or safety

requirements until January 1, 2022.

Foams - Except Rigid All substances Space- and aeronautics-related applications where polyurethane (PU) reasonable efforts have been made to ascertain that spray foam other alternatives are not technically feasible due to

performance or safety requirements until January 1, 2025.

5/12/23 (Effective 11/11/22) - corrected 310 CMR - 250.102.76.55

Table 1: Exemptions

End-use Category Prohibited Substances Acceptable Uses

Rigid polyurethane All substances Military or space- and aeronautics-related (PU) two-component applications where reasonable efforts have been made spray foam to ascertain that other alternatives are not technically

feasible due to performance or safety requirements until January 1, 2025.

1. (8) Recordkeeping. As of the effective date of prohibition for each end-use listed in 310 CMR 7.76(6): Table 1, any person who manufactures any product or equipment in the end-uses listed in 310 CMR 7.76(6), for sale or entry into commerce in Massachusetts must maintain for five years, and make available upon request by the Department, records sufficient to demonstrate that the product or equipment does not contain any substances listed in 310 CMR 7.76(6): Table 1 as prohibited for that end-use or that the product is exempt in accordance with 310 CMR 7.76(7).

REGULATORY AUTHORITY

310 CMR 7.00: M.G.L. c. 111, § 142A through J.

5/12/23 (Effective 11/11/22) - corrected 310 CMR - 250.102.76.56

310 CMR 7.00: APPENDIX A: EMISSION OFFSETS AND NONATTAINMENT REVIEW

1. (1) Introduction. 310 CMR 7.00: Appendix A sets forth the Massachusetts preconstruction review program for stationary sources of air pollution (not including indirect sources) pursuant to sections 172(c)(5) and 173 of the Clean Air Act. A new major source or major modification either that is located in an area designated as nonattainment pursuant to section 107(d) of the Act, published at 40 CFR 81, for any National Ambient Air Quality Standards (NAAQS) for which the source or modification would be major or that is major for volatile organic compounds or oxides of nitrogen must meet the stringent conditions set forth in this appendix prior to receiving approval to construct. These conditions are designed to insure that the increased emissions will be controlled to the greatest degree possible; that more than equivalent offsetting emission reductions (emission offsets) will be obtained from existing sources; and that there will be reasonable further progress toward achievement of the National Ambient Air Quality Standards (NAAQS).
2. (2) Definitions. The definitions found in 310 CMR 7.00 apply to 310 CMR 7.00: Appendix A. The following words and phrases shall have the following meanings as they appear in 310 CMR 7.00: Appendix A. Where a term is defined in 310 CMR 7.00 and the definition also appears in 310 CMR 7.00: Appendix A(2) the definition in 310 CMR 7.00: Appendix A controls.

Actual Emissions means:

1. (a) As of a particular date, actual emissions shall equal the average rate, in tons per year, at which the unit actually emitted the pollutant during a two-year period which precedes the particular date and which is representative of normal source operation. The Department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. For the purposes of calculating a net emissions increase where actual emissions exceed allowable emissions, the actual emissions for the unit will be presumed to be equivalent to the source-specific allowable emissions of the unit.
2. (b) For either an electric utility steam generating unit (other than a new unit or the replacement of an existing unit) or an emissions unit(s) complying with 310 CMR 7.08(2), 7.18, 7.19, 7.24, or 7.34, actual emissions of the unit following the physical or operational change shall equal the representative actual annual emissions of the unit, provided the source owner or operator maintains and submits to the Department, on an annual basis for a period of five years from the date the unit resumes regular operation, information demonstrating that the physical or operational change did not result in an emissions increase. A longer period, not to exceed ten years, may be required by the Department if it determines such period to be more representative of normal source post-change operations.
3. (c) For any emissions unit (except as provided for in 310 CMR 7.00: Appendix A Actual Emissions(b)) which has not begun normal operations on the particular date, actual emissions shall equal the federal potential emissions of the unit on that date.

Allowable Emissions means the emissions rate, in tons per year, of a stationary source calculated by multiplying the maximum rated capacity of the source (unless the source is subject to federally enforceable limits which restrict the operating rate, or hours of operation, or both) times the most stringent of:

1. (a) Any applicable standards set forth in 40 CFR part 60 (NSPS) or 61 (NESHAPS);
2. (b) Any applicable Massachusetts SIP emissions limitation including a limitation with a future compliance date; or
3. (c) Any emissions rate specified as a federally enforceable permit condition, including a limitation with a future compliance date.

Begin Actual Construction means physical on-site construction activities on an emissions unit which is of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying of underground pipework, and construction of permanent storage structures. With respect to a change in method of operation, this term refers to those on-site activities other than preparatory activities which mark the initiation of the change.

Appendix A: continued

Building, Structure, Facility, or Installation means all of the pollutant-emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control). Any marine vessel is a part of a facility while docked at the facility. Any marine vessel is a part of an Outer Continental Shelf (OCS) source while docked at and within 25 miles en route to and from the OCS source. Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same Major Group (i.e., which have the same two-digit code) as described in the Standard Industrial Classification Manual, 1987.

Clean Coal Technology (CCT) means any technology at a new or existing emissions unit(s), including technologies applied at the precombustion, combustion, or post combustion stage, which will achieve significant reductions in air emissions of sulfur dioxide or oxides of nitrogen associated with the utilization of coal in the generation of electricity, or process steam which was not in widespread use as of November 15, 1990.

Clean Coal Technology Demonstration Project means a project using funds appropriated under the heading 'Department of Energy-Clean Coal Technology,' up to a total amount of $2,500,000,000 for commercial demonstration of clean coal technology, or similar projects funded through appropriations for the United States Environmental Protection Agency (EPA). The Federal contribution for a qualifying project shall be at least 20% of the total cost of the demonstration project.

Coastal Waters means tidal waters over permanently or periodically submerged lands lying between the mean high tide line and a line seaward from the coastline to the boundary line of each State. The boundary shall extend no more than three geographical miles into the Atlantic Ocean.

Commence means as applied to construction of a major stationary source or major modification that the owner or operator has all necessary preconstruction approvals or permits and either has:

1. (a) Begun, or caused to begin, a continuous program of actual on-site construction of the source, to be completed within a reasonable time; or,
2. (b) Entered into binding agreements or contractual obligations, which cannot be canceled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time.

Complete means, in reference to an application for a plan approval, that the application contains all of the information necessary for processing the application, as determined by the Department. Designating an application administratively complete for purposes of permit processing does not preclude the Department from requesting or accepting any additional information.

Construction means any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) which would result in an increase in actual emissions.

Corresponding Onshore Area means, for stationary sources located in, or on, navigable rivers and lakes, coastal waters, or the Outer Continental Shelf (OCS), the onshore attainment or nonattainment area which is closest to the source. However, the Department or EPA may determine that another area with more stringent requirements with respect to the control and abatement of air pollution may reasonably be expected to be affected by such emissions. Such determination shall be based on the potential for air pollutants from the offshore source to reach the other onshore area and the potential of such air pollutants to affect the efforts of the other onshore area to attain or maintain any Federal or State ambient air quality standard or to comply with the provisions of 310 CMR 7.00: Appendix A.

Appendix A: continued

Electric Utility Steam Generating Unit means any steam electric generating unit that is constructed for the purpose of supplying more than a of its potential electric output capacity and more than 25 MW electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam to a steam-electric generator that would produce electrical energy for sale is also considered in determining the electrical energy output capacity of the affected facility.

Emissions Unit means any part of a stationary source, which emits or would have federal potential emissions of any pollutant (including fugitive emissions), subject to regulation under the Act.

Energy Input means the total gross calorific value (where gross calorific value is measured by ASTM Method D2015-66, D240-64, or D1826-64) of all fuels burned. Energy input is calculated in British thermal units (Btu) per hour using the higher heating value of the fuel.

Fossil Fuel-Fired Boiler means a unit (or combination of such units) which combusts fossil fuel (or receives energy from other fossil fuel-fired units) to produce steam by indirect heat transfer and includes such units that produce steam for electric generation. The energy input for such units includes any energy provided to such units from the combustion of fossil fuels in other units. The total energy input from fossil fuel-firing for a combination of such units is the sum of the energy inputs from fossil fuel-firing for each unit.

Fossil Fuel-Fired Electric Plant means one or more units (a plant) that combust fossil fuel to produce electricity. The total energy input for such a plant from fossil fuel-firing is the sum of the energy inputs from fossil fuel-firing for each combustion unit that is part of such plant.

Fugitive Emissions means those emissions which could not reasonably pass through a stack, chimney, vent or other functionally equivalent opening.

Indian Governing Body means the governing body of any tribe, band, or group of Indians subject to the jurisdiction of the United States and recognized by the United States as possessing power of self-government.

Indian Tribe means any Indian tribe, band, nation, or other organized group or community which is Federally recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

Lowest Achievable Emission Rate (LAER) means, for any source, the more stringent rate of emissions based on the following:

1. (a) The most stringent emissions limitation which is contained in any state SIP for such class or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable; or
2. (b) The most stringent emissions limitation which is achieved in practice by such class or category of stationary source. This limitation, when applied to a modification, means the lowest achievable emissions rate for the new or modified emissions units within a stationary source. In no event shall LAER allow a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable pursuant to applicable new source standards of performance.

Major Modification means any physical change in or change in the method of operation of a major stationary source that would result in a significant net emissions increase of any pollutant, for which the existing source is major, subject to regulation under the Act.

1. (a) Any net emissions increase that is considered significant for VOCs shall be considered significant for ozone; and
2. (b) For the purpose of applying the requirements of 310 CMR 7.00: Appendix A to major stationary sources of NO any significant net emissions increase of NO is considered x x significant for ozone, in addition to any separate requirements for NO under part C or D of x Title I of the Act; and

Appendix A: continued

1. (c) A physical change or change in the method of operation shall not include:

   1. 1. Routine maintenance, repair and replacement; or
   2. 2. Use of an alternative fuel or raw material by reason of an order under sections 2 (a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the Federal Power Act; or
   3. 3. Use of an alternative fuel by reason of an order or rule under sec. 125 [Measures to Prevent Economic Disruption or Unemployment] of the Act; or
   4. 4. Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste; or

   5. 5. Use of an alternative fuel or raw material by a stationary source where:

      1. a. The source is approved to use such fuel or raw material under any plan approval issued under 310 CMR 7.00: Appendix A; or
      2. b. The source was capable of accommodating such fuel or raw material before December 21, 1976, unless such change would be prohibited under any federally- enforceable permit condition which was established after December 21, 1976 pursuant to 40 CFR part 52.21 (Prevention of significant deterioration of air quality), plan approval requirements under 310 CMR 7.02(1), 7.00: Appendix A, Appendix B(3), operating permits issued either under 310 CMR 7.00: Appendix C or pursuant to 40 CFR part 71 or prohibited under any other federally-enforceable regulatory requirements; or
   6. 6. An increase in the hours of operation or in the production rate, unless such change is prohibited under any federally-enforceable permit condition which was established after December 21, 1976 pursuant to 40 CFR 52.21 (Prevention of significant deterioration of air quality), plan approval requirements under 310 CMR 7.02(2), 310 CMR 7.00: Appendix A, 310 CMR 7.00: Appendix B(3), operating permits issued either under 310 CMR 7.00: Appendix C or pursuant to 40 CFR part 71 or prohibited under any other federally-enforceable regulatory requirements; or
   7. 7. Any change in ownership at a stationary source; or

   8. 8. The addition, replacement or use of a pollution control project at either an existing electric utility steam generating unit or an emissions unit(s) in order to comply with 310 CMR 7.08(2), 7.18, 7.19, 7.24, or 7.34, unless the Department determines that such addition, replacement, or use renders the unit less environmentally beneficial; or unless

      1. a. The Department has reason to believe that the pollution control project would result in a significant net increase in representative actual annual emissions of any criteria pollutant over levels used for that source in the most recent air quality impact analysis in the area conducted for the purpose of Title I of the Act, if any; and
      2. b. The Department determines that the increase will cause or contribute to a violation of any national ambient air quality standard or PSD increment, or visibility limitation; or

   9. 9. The installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the project complies with:

      1. a. the Massachusetts SIP, and
      2. b. other requirements necessary to attain and maintain the national ambient air quality standard during the project and after it is terminated.

Major Stationary Source means any stationary source of air pollutants which emits, or has the federal potential emissions greater than or equal to, 100 tpy or more of any pollutant subject to regulation under the Act, except that lower emissions thresholds shall apply as follows: 50 TPY of volatile organic compounds (VOC), or 50 TPY of oxides of nitrogen (NO ). x In addition, any physical change that would occur at a stationary source not previously qualifying as a major stationary source will be considered a major stationary source, if the physical change would result in the following increases either in actual emissions or in the federal potential to emit, greater than or equal to:

Appendix A: continued

50 TPY of volatile organic compounds (VOC), or 50 TPY of oxides of nitrogen (NO ), or x 100 TPY or more of any other pollutant subject to regulation under the Act. (a) A stationary source that is major for VOC shall be considered major for ozone. VOC emissions, as precursors to the pollutant ozone, are subject to the requirements of 310 CMR 7.00: Appendix A; and (b) For the purpose of applying the requirements of 310 CMR 7.00: Appendix A to major stationary sources of NO a stationary source that is major for NO is considered major for x x ozone, in addition to any separate requirements for NO under part C or D of Title I of the x Act; and (c) The fugitive emissions of a stationary source shall not be included in determining, for any of the purposes of 310 CMR 7.00: Appendix A, whether the stationary source is a major stationary source, unless the stationary source belongs to one of the following categories of stationary sources: Carbon black plants (furnace process); or Coal cleaning plants (with thermal dryers); or Coke oven batteries; or Charcoal production plants; or Chemical process plants; or Fuel conversion plants; or Fossil fuel-fired boilers (or combination thereof) totaling more than 250 million British thermal units per hour heat input; or Fossil fuel-fired electric plants of more than 250 million British thermal units per hour heat input; or Glass fiber manufacturing plants; or Hydrofluoric acid plants; or Iron and steel mills; or Kraft pulp mills; or Lime plants; or Municipal incinerators (or combinations thereof) capable of charging more than 50 tons of refuse per day; or Nitric acid plants; or Outer continental shelf sources; or Petroleum refineries; or Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; or Phosphate rock processing plants; or Portland cement plants; or Primary aluminum ore reduction plants; or Primary copper smelters; or Primary lead smelters; or Primary zinc smelters; or Secondary metal production plants; or Sintering plants; or Sulfuric acid plants; or Sulfur recovery plants; or Taconite ore processing plants; or Any other stationary source category regulated under sec. 111 (NSPS) or 112 (NESHAPS) of the Act before November 15, 1990.

Navigable Rivers and Lakes means non-tidal bodies of water which were navigable at the time the States in which they are located became members of the United States. This term does not include waters over lands now or heretofore constituting a part of the public lands of the United States, if such lands were not meandered in connection with the public survey of such lands under the laws of the United States and title to such lands was lawfully conveyed from the United States or any State to any person.

Necessary Preconstruction Approvals or Permits means those permits or plan approvals required under Federal air quality control laws and regulations, and those air quality control laws and regulations which are part of the Massachusetts State Implementation Plan.

Appendix A: continued

Net Emissions Increase means

1. (a) The amount by which the sum of the following exceeds zero:

   1. 1. Any increase in actual emissions from a particular physical change or change in the method of operation at a stationary source; and
   2. 2. Any other increases and decreases in actual emissions at the source shall be included for netting purposes, that are contemporaneous with the particular change and are otherwise creditable as described in 310 CMR 7.00: Appendix A Net Emissions Increase(b), (c), (d), (e) and (f).
2. (b) An increase or decrease is contemporaneous with the particular change only if it occurs over any period of five consecutive calendar years which includes the calendar year the increase will occur, but not earlier than January 1, 1990.
3. (c) An increase or decrease in actual emissions must have occurred prior to the increase from the particular change in order for the increase or decrease to be considered contemporaneous for purposes of calculating a net emissions increase.
4. (d) An increase or decrease in actual emissions is creditable only if the increase or decrease in actual emissions has not been credited in a previous plan approval issued under 310 CMR 7.00: Appendix A, unless that approval has been rescinded.
5. (e) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level.

6. (f) A decrease in actual emissions is creditable only to the extent that:

   1. 1. The old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions; and
   2. 2. It is federally-enforceable at and after the time that actual construction on the particular change begins; and
   3. 3. The reduction was not required as a condition of the Massachusetts SIP, in demonstrating attainment or reasonable further progress, in issuing any permit or plan approval under 310 CMR 7.00: Appendix A, 310 CMR 7.02(3)(j)6. (BACT requirement), 40 CFR 52.21 (PSD), operating permits issued either under 310 CMR 7.00: Appendix C or 40 CFR part 71 or otherwise required under the Act ; and
   4. 4. For VOC emissions, the decreased emissions have approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change; and
   5. 5. The unit was actually operated one or more years and emitted the nonattainment pollutant for which the decrease is being sought. Reductions of permitted emissions for units that were never operated cannot be considered creditable emissions decreases.
7. (g) An emissions increase that results from a physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days.
8. (h) Emission reduction credits (ERCs) withdrawn from the Department's Emission Reduction Banking System are creditable if the ERCs meet the criteria in 310 CMR 7.00: Appendix A Net Emissions Increase(a) through (g).

Nonattainment Pollutant means an air pollutant (or precursor of the pollutant, as applicable) for which an area is designated nonattainment (as of the date on which a complete application is filed) pursuant to § 107(d) [Nonattainment Designations] of the Act or oxides of nitrogen (NOx) or volatile organic compounds (VOC).

Outer Continental Shelf (OCS) shall have the meaning provided, as of the date of promulgation of 310 CMR 7.00, by section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq).

Outer Continental Shelf Source means any equipment, activity, or facility which:

1. (a) Emits or has federal potential emissions of any air pollutant; and
2. (b) Is regulated or authorized under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq); and
3. (c) Is located on the OCS or in or on the waters above the OCS.

Appendix A: continued

Pollution Control Project means any activity or project at either an existing electric utility steam generating unit or at an emissions unit(s) to comply with 310 CMR 7.08(2), 7.18, 7.19, 7.24, or 7.34 for purposes of reducing emissions from such unit. Such activities or projects are limited to:

1. (a) The installation of conventional or innovative pollution control technology, including but not limited to advanced flue gas desulfurization, sorbent injection for sulfur dioxide and nitrogen oxides controls and electrostatic precipitators; or
2. (b) an activity or project to accommodate switching to a fuel which is less polluting than the fuel used prior to the activity or project, including, but not limited to natural gas or coal re-burning, or the co-firing of natural gas and other fuels for the purpose of controlling emissions; or
3. (c) a permanent clean coal technology demonstration project conducted under title II, sec. 101(d) of the Further Continuing Appropriations Act of 1985 (sec. 5903(d) of title 42 of the United States Code), or subsequent appropriations, up to a total amount of $2,500,000,000 for commercial demonstration of clean coal technology, or similar projects funded through appropriations for the EPA; or
4. (d) a permanent clean coal technology demonstration project that constitutes a repowering project ; or
5. (e) an activity or project to reduce emissions of VOC or NO to comply with 310 CMR x 7.08(2), 7.18, 7.19, 7.24, or 7.34.

Reasonable Further Progress means such annual incremental reductions in emissions of the relevant air pollutant as are required by part D (Plan Requirements for Nonattainment Areas) of the Act or may reasonably be required by the Department or EPA for the purpose of ensuring attainment of the applicable national ambient air quality standards in an area by the applicable statutory deadline or resulting from shutdowns that are credited towards attainment.

Repowering means:

1. (a) replacement of an existing coal-fired boiler with one of the following clean coal technologies: atmospheric or pressurized fluidized bed combustion, integrated gasification combined cycle, magnetohydrodynamics, direct and indirect coal-fired turbines, integrated gasification fuel cells, or as determined by the EPA, in consultation with the Secretary of Energy, a derivative of one or more of these technologies, and any other technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance of technology in widespread commercial use as of November 15, 1990 ; or
2. (b) any oil and/or gas-fired unit which has been awarded clean coal technology demonstration funding as of January 1, 1991, by the Department of Energy.

Representative Actual Annual Emissions means the average rate, in tons per year, at which the source is projected to emit a pollutant for the two-year period after a physical change or change in the method of operation of a unit, (or a different consecutive two-year period within ten years after that change, where the Department determines that such period is more representative of normal source operations), considering the effect any such change will have on increasing or decreasing the hourly emissions rate and on projected capacity utilization. In projecting future emissions the Department:

1. (a) shall consider all relevant information, including but not limited to historical operational data, the company's own representations, filings with Massachusetts Department of Public Utilities or Federal regulatory authorities, filings with the Department pursuant to 310 CMR 7.12, Department regulations and approvals issued pursuant to those regulations and compliance plans under title IV of the Clean Air Act; and
2. (b) shall exclude, in calculating any increase in emissions that results from the particular physical change or change in the method of operation at an electric utility steam generating unit, that portion of the unit's emissions following the change that could have been accommodated during the representative baseline period and is attributable to an increase in projected capacity utilization at the unit that is unrelated to the particular change, including any increased utilization due to the rate of electricity demand growth for the utility system as a whole.

Appendix A: continued

Secondary Emissions means emissions which would occur as a result of the construction or operation of a major stationary source or major modification, which do not come from the major stationary source or major modification itself. For the purpose of 310 CMR 7.00: Appendix A, secondary emissions must be specific, well defined, quantifiable, and impact the same general area as the stationary source or modification which causes the secondary emissions. Secondary emissions include emissions from any offsite support facility which would not otherwise be constructed or undergo an increase in emissions except as a result of the construction or operation of the major stationary source or major modification. Secondary emissions do not include tailpipe emissions from any source regulated under title II of the Act or any emissions from in-transit, non-OCS marine vessels.

Significant means

1. (a) In reference to a net emissions increase or the potential of a source to emit any of the following pollutants, a rate of emissions that would equal or exceed any of the following rates:

   POLLUTANT EMISSION RATE

   Carbon monoxide: 100 tpy Ozone: 25 tpy of nitrogen oxides (NO ) where an x

   administratively complete application was received on or after November 15, 1992 for the physical change or change in the method of operation.

   Ozone: 40 tpy of VOC

   25 tpy of VOC where an administratively complete application was received on or after November 15, 1992 for the physical change or change in the method of operation.

   Sulfur dioxide: 40 tpy Particulate matter: 15 tpy as PM10 Lead: 0.6 tpy

2. (b) A net increase in emissions of VOCs or NO that would result from either any physical x change in or change in the method of operation, of a stationary source is significant if such increase exceeds applicable thresholds when aggregated with all, creditable and contemporaneous, increases and decreases, in emissions of the same pollutant.

Stationary Source means any building, structure, facility, or installation which emits or which may emit any air pollutant subject to regulation under the Act.

1. (a) A stationary source may consist of one or more emissions units and:

   1. 1. may be a land-based point or area source; or
   2. 2. may be located in, or on, the OCS or other submerged lands beneath navigable waters (lakes, rivers, and coastal waters adjacent to Outer Continental Shelf lands) ; or
   3. 3. may be any internal combustion engine, or engine combination, greater than 175 horsepower (hp) used for any stationary application; or
   4. 4. may be any internal combustion engine regulated under Sec. 111 (NSPS) of the Act, regardless of size; or
   5. 5. may be any internal combustion engine of less than 175 horsepower (hp) not actually controlled to meet a regulation under Sec. 213 (Nonroad Engines and Vehicles) of the Act.

2. (b) A stationary source does not include:

   1. 1. emissions resulting directly from an internal combustion engine for transportation purposes; or
   2. 2. tailpipe emissions from any source regulated under title II of the Act or any emissions from in-transit, non-OCS marine vessels.

Appendix A: continued

Temporary Clean Coal Technology Demonstration project means a CCT demonstration project that is operated for a period of five years or less, and which complies with the Massachusetts SIP and other requirements necessary to attain and maintain the national ambient air quality standard during the project and after it is terminated.

1. (3) Applicability and exemptions. (see also 310 CMR 7.00: Appendix A(10) Source Obligation.)

   1. (a) Any major stationary source or major modification to which the requirements of 310 CMR 7.00: Appendix A apply shall not receive a plan approval to begin actual construction unless the Department is satisfied that the stationary source or modification will meet the requirements of 310 CMR 7.00: Appendix A.

   2. (b) The requirements of 310 CMR 7.00: Appendix A shall apply only to any new major stationary source or major modification that is major for either:

      1. 1. the pollutant (or precursor of the pollutant, as applicable) for which an area is designated nonattainment (as of the date on which a complete application is filed) pursuant to § 107(d) [Nonattainment Designations] of the Act if the stationary source or modification would be constructed in the designated nonattainment area; or
      2. 2. oxides of nitrogen (NOx) or volatile organic compounds (VOC).
   3. (c) The requirements of 310 CMR 7.00: Appendix A shall apply in any Outer Continental Shelf area for which the corresponding onshore area is designated as nonattainment as of the date on which a complete application is filed in accordance with 310 CMR 7.00: Appendix A.
   4. (d) If a stationary source is in one of the categories listed in the definition of 310 CMR 7.00: Appendix A Major Stationary Source(c), fugitive emissions, to the extent quantifiable, are included when calculating federal potential emissions to determine if the stationary source or modification is subject to the provisions of 310 CMR 7.00: Appendix A.
   5. (e) In the case of any major stationary source of volatile organic compounds located in the area (other than a source which emits or has federal potential emissions of 100 tons or more of volatile organic compounds per year), whenever any physical change or change in the method of operation at that source results in any increase (other than a de minimis increase) in emissions of volatile organic compounds from any discrete operation, unit or other pollutant emitting activity at the source, such increase shall be considered a modification for purposes of 310 CMR 7.00: Appendix A, except that such increase shall not be considered a modification for such purposes if the owner or operator of the source elects to offset the increase by greater reduction in emissions of volatile organic compounds concerned from other operations, units, or activities within the source at an internal offset ratio of at least 1.3 to 1. If the owner or operator does not make such election, such change shall be considered a modification for such purposes, but in applying 310 CMR 7.00: Appendix A(4)(c) in the case of any such modification, the best available control technology (BACT), as defined in 310 CMR 7.00: DEFINITIONS, shall be substituted for the lowest achievable emission rate (LAER).
   6. (f) In the case of any major stationary source of volatile organic compounds located in the area which emits or has federal potential emissions 100 tons or more of volatile organic compounds per year, whenever any physical change or change in the method of operation at that source results in any increase (other than a de minimis increase) in emissions of volatile organic compounds from any discrete operation, unit or other pollutant emitting activity at the source, such increase shall be considered a modification for purposes of 310 CMR 7.00: Appendix A, except that if the owner or operator of the source elects to offset the increase by a greater reduction in emissions of volatile organic compounds from other operations, units or activities within the source at an internal offset ratio of at least 1.3 to 1, the requirements of 310 CMR 7.00: Appendix A(4)(c) (concerning the lowest achievable emission rate (LAER) shall not apply.
   7. (g) 310 CMR 7.00: Appendix A(3)(e) and (f) apply to modifications at major stationary sources of NO in the same way that they apply to sources of volatile organic compounds. x

2. (4) Control technology review.

   1. (a) A new major stationary source or major modification at an existing major stationary source shall meet each applicable emissions limitation under the Massachusetts SIP and each applicable emissions standard of performance under 40 CFR parts 60 (NSPS) and 61 (NESHAPS).

Appendix A: continued

1. (b) A new major stationary source shall meet the lowest achievable emission rate (LAER) for each pollutant subject to the provisions of 310 CMR 7.00: Appendix A that would have federal potential emissions in major amounts. This provision applies to each new emissions unit at which emissions would occur. Major amounts are as follows:

   1. 1. VOC - 50 tons or more per year.
   2. 2. NO - 50 tons or more per year. x
   3. 3. 100 tons per year or more of any other pollutant subject to regulation under the Act.
2. (c) A major modification shall meet the lowest achievable emission rate (LAER) for each pollutant subject to the requirements of 310 CMR 7.00: Appendix A which would result in a significant net emissions increase at the source. This requirement applies to each proposed emissions unit at which a net emissions increase in the pollutant would occur as a result of the physical change or change in the method of operation in the unit being proposed. LAER will not be required for previous modifications included in the determination of net emissions increase considered in determining major modification status, but which are not to be modified as part of the proposed project.
3. (d) For phased construction projects, the determination of the lowest achievable emission rate (LAER) shall be reviewed and modified as appropriate at the latest reasonable time, but no later than 18 months prior to commencement of construction of each independent phase of the project. At such time, the owner or operator of the stationary source may be required to demonstrate the adequacy of any previous determination of the lowest achievable emission rate to the next phase of construction.

4. (5) Reasonable Further Progress.

   1. (a) Sufficient offsetting emissions shall be in effect such that the total emissions from existing sources in the area, from new or modified sources which are not major stationary sources, and from the proposed source will be sufficiently less than the total emissions from existing sources prior to the application for such plan approval to construct or modify so as to represent (when considered together with the SIP provisions required under sec. 172 of the Act) reasonable further progress by the time the proposed source or modification is to commence operation; and
   2. (b) for the purposes of satisfying the requirements of 310 CMR 7.00: Appendix A(5)(a), the determination of total emissions at both the time prior to the application for a plan approval subject to the requirements of 310 CMR 7.00: Appendix A and the time such permitted source or modification would commence operation, shall be made in a manner consistent with the Massachusetts SIP approved by the EPA concerning baseline emissions for the demonstration of reasonable further progress and attainment of the national ambient air quality standards for the particular pollutant subject to review pursuant to 310 CMR 7.00: Appendix A.

5. (6) Emissions Offsets.

   1. (a) Prior to the issuance of a plan approval for any emissions unit(s), for which offsets are required pursuant to 310 CMR 7.00: Appendix A, emission offsets must be made federally enforceable; and

   2. (b) For a new major stationary source of NOx or major modification of a major stationary source of NOx located in a area that is not a nonattainment area, prior to commencing operation of any emission unit(s), for which offsets are required under 310 CMR 7.00: Appendix A, NOx emission offsets must actually occur and be obtained from the same source or other sources within the Ozone Transport Region. For a new major stationary source of VOC or major modification of a VOC source located in an area that is not a non- attainment area, prior to commencing operation of any emission unit(s), for which offsets are required under 310 CMR 7.00: Appendix A, VOC emission offsets must actually occur and be obtained from the same source or other sources within the Ozone Transport Region that contributes to a violation of the NAAQS in a non-attainment area that the new source or modification will impact. For a new major stationary source or major modification located in a nonattainment area, prior to commencing operation of any emission unit(s) for which offsets are required under 310 CMR 7.00: Appendix A, emission offsets must actually occur and be obtained from the same source or other sources in the same nonattainment area, except that such emissions reductions may be obtained from a source in another nonattainment area if:

      1. 1. The other area has an equal or higher nonattainment classification than the area in which the source is located; and

Appendix A: continued

1. 2. Where the proposed new source or modified source is located in a nonattainment area, emissions from such other area contribute to a violation of a national ambient air quality standard in the nonattainment area in which the proposed new or modified source would construct.
2. (c) Emission offsets for a land-based stationary source may not be obtained from Outer Continental Shelf (OCS) sources. However, emission offsets for an OCS source may be obtained from land-based stationary sources.
3. (d) The increase in emissions of any applicable nonattainment air pollutant allowed from either the proposed new major stationary source or from the proposed changes at the major stationary source that are part of the major modification, shall be offset by an equal or greater reduction, as applicable, in the actual emissions of such air pollutant from the same or other sources.

4. (e) In meeting the requirements of 310 CMR 7.00: Appendix A(6)(d), the ratio of total actual emission reductions to the increase in actual emissions shall be as follows:

   1. 1. 1.2:1 of VOC or NO ; or x
   2. 2. 1:1 of any other pollutant subject to regulation under 310 CMR 7.00: Appendix A.

5. (f) Shutdowns.

   1. 1. Emissions reductions achieved by shutting down an existing source or curtailing production or operating hours below baseline levels may be generally credited if such reductions are real, surplus, permanent, quantifiable and federally enforceable. In addition, the shutdown or curtailment is creditable only if it occurred after December 31, 1990, and the following conditions have been met:

      1. a. the Department has submitted a completed emissions inventory as required by The Clean Air Act, § 182(a)(1)ct; and
      2. b. the Department has submitted complete revisions to 310 CMR 7.00: Appendix A as required by The Clean Air Act, § 182(a)(2)(C); and
      3. c. the Department submits the 15% VOC reduction plan required by the Clean Air Act, § 182(b)(1)(A); and
      4. d. the Department submits the attainment demonstration required by The Clean Air Act 182(c)(2); or
   2. 2. If any of the submissions in 310 CMR 7.00: Appendix A(6)(f)1.a. through d. are delinquent, incomplete or disapproved, emissions reductions from shutdowns or curtailments can not be used, unless the shutdown or curtailment occurred either on or after the date the new source plan approval application is filed or unless the applicant can establish that the proposed new source is a replacement for the shutdown or curtailed source, and the cutoff date provisions of Appendix A(6)(f)1. are observed.
6. (g) With respect to a proposed increase in VOC emissions, no emissions credit shall be allowed for reductions in any organic compound specifically excluded from the definition of "VOCs" in 310 CMR 7.00.
7. (h) Credit for an emissions reduction may not be claimed to the extent that the Department has relied on the reduction as a condition of the Massachusetts SIP, in demonstrating attainment or reasonable further progress, in issuing any permit or plan approval under 310 CMR 7.02(3)(j)6. (BACT requirement), 310 CMR 7.00: Appendix A, 40 CFR 52.21 (PSD), operating permits issued either under 310 CMR 7.00: Appendix C or pursuant to 40 CFR part 71 or otherwise required under the Act. Incidental emissions reductions which are not otherwise required under the Act may be creditable as emissions reductions for such purposes if such emissions reductions meet the applicable requirements of 310 CMR 7.00: Appendix A(6).
8. (i) Emission reduction credits (ERCs) withdrawn from the Massachusetts Emission Reduction Credit Bank (310 CMR 7.00: Appendix B(3)) may be used as offsets, providing the ERCs are federally enforceable and meet all of the requirements under 310 CMR 7.00: Appendix A(6).

9. (j) Emission reductions generated by the seasonal control of ozone precursors (VOC or xNO ), during the period May 1 through September 30, may be used at any time during the calendar year. Emission reductions generated by the seasonal control of VOC or NO , during x the period October 1 through April 30, may only be used during the period October 1 through

   th

April 30 . Emission reductions generated by the seasonal control of carbon monoxide,

st th

during the period November 1 through February 28 , may be used at any time during the calendar year. Emission reductions generated by the seasonal control of carbon monoxide, during the period March 1 through October 31, may only be used during the period March 1st through October 31 .st

Appendix A: continued

1. (7) Source Impact Analysis. The applicant shall demonstrate to the satisfaction of the Department that;

   1. (a) the emissions offsets required under 310 CMR 7.00: Appendix A(6), when considered in conjunction with the proposed emissions increase will have a net air quality benefit in the affected area;
   2. (b) the emissions from the proposed new major stationary source or major modification will not contribute to nonattainment in, or interfere with maintenance by any other state of any national primary or secondary ambient air quality standard; and
   3. (c) the emissions from the proposed new major stationary source or major modification will not interfere with measures required to be included in the applicable implementation plan for any other State under a program for the prevention of significant deterioration or for the protection of visibility.

2. (8) Additional Conditions for Approval. In order for the Department to issue an approval under 310 CMR 7.00: Appendix A, the following conditions shall be met:

   1. (a) All major stationary sources in Massachusetts owned or operated by the owner or operator of the proposed source (or by any entity controlling, controlled by, or under common control with such owner or operator) which are subject to federally enforceable emission limitations must be in compliance, or on a federally enforceable schedule for compliance, with all applicable emissions limitations and standards under the Act.
   2. (b) By means of an analysis of alternative sites, sizes, production processes, and environmental control techniques for such proposed new or modified stationary source, the owner or operator of the proposed stationary source or modification shall demonstrate to the satisfaction of the Department that the benefits of the proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or modification.
   3. (c) The Administrator has not determined that the Massachusetts SIP is not being adequately implemented for the nonattainment area (as applicable) in which the proposed stationary source or modification is to be constructed in accordance with the requirements of part D of the Act.

3. (9) Public Participation.

   1. (a) The Department shall notify all applicants as to any administrative or technical deficiencies in the plan approval application or information submitted.

   2. (b) After receipt of a technically complete application the Department shall:

      1. 1. Make a proposed decision as to whether the plan approval application shall be approved, approved with conditions, or disapproved.
      2. 2. Provide a 30-day public comment period for submittal of public comment;

      3. 3. Post on a public website identified by the Department (which may be the Department's own website), for the duration of the public comment period, the following:

         1. a. A notice of availability of the Department's proposed decision to approve or deny the plan approval and information on how to submit public comment;
         2. b. The Department's proposed decision to approve or deny the plan approval; and
         3. c. Information on how to access the administrative record for the Department's proposed decision on whether to approve or deny the plan approval application.
      4. 4. Send a copy of the notice required under 310 CMR 7.00: Appendix A(9)(b)3.a. to the applicant, the EPA, and officials and agencies having jurisdiction over the location where the proposed construction would occur as follows: any other State or local air pollution control agencies, the chief executives of the city where the source would be located; any comprehensive regional land use planning agency, and any Federal Land Manager, or Indian Governing body whose lands may be affected by emissions from the source or modification.
      5. 5. Consider all public comments (written and oral) submitted at any public hearing(s) in making a final decision on the approvability of the application. The Department shall make all comments available for public inspection in the same locations where the Department made available preconstruction information relating to the proposed source or modification.
      6. 6. Make a final decision as to whether the plan approval application should be approved, approved with conditions, or disapproved.

Appendix A: continued

1. 7. Notify the applicant in writing of the final decision and make such notification available for public inspection at the same location where the Department made available preconstruction information and public comments relating to the source.

2. (10) Source Obligation.

   1. (a) Except as provided for in 310 CMR 7.00: Appendix A(10)(b),

      1. 1. any owner or operator who constructs or operates either a stationary source or modification not in accordance with the terms of the approval to construct issued under 310 CMR 7.00: Appendix A; or
      2. 2. any owner or operator of a stationary source or modification subject to 310 CMR 7.00: Appendix A, who commences construction after November 15, 1992 without applying for and receiving approval under 310 CMR 7.00: Appendix A,

   shall be considered in noncompliance with 310 CMR 7.00: Appendix A, unless a complete application to construct or substantially reconstruct or alter under 310 CMR 7.02(1) was filed by November 15, 1992 and the change was approved by the Department. (b) If an owner or operator of a stationary source began construction of a new source or a modification before the applicable date specified in 310 CMR 7.00: Appendix A (10)(b)(1. through 4.), then the owner or operator need not comply with 310 CMR 310 CMR 7.00: Appendix A.

   1. 1. If the source or modification resulted in an increase in actual emissions of VOCs, then the applicable date is January 10, 1980.
   2. 2. If the source or modification resulted in an increase in actual emissions of CO, then the applicable date is January 10, 1980, or the date on which the location in which the construction or modification occurred was declared in the Federal Register to be in nonattainment.
   3. 3. If the source or modification resulted in an increase in actual emissions of NOx, then the applicable date is November 15, 1990.
   4. 4. If the source or modification resulted in an increase in any other nonattainment pollutant, then the applicable date is the date on which the location in which the construction or modification occurred was declared in the Federal Register to be in nonattainment for that pollutant.
   1. (c) Approval to construct shall become invalid if construction is not commenced within 18 months after receipt of such approval, if construction is discontinued for a period of 18 months or more, or if construction is not completed within a reasonable time. The Department may extend the 18-month period upon a satisfactory showing that an extension is justified. This provision does not apply to the time period between construction of the approved phases of a phased construction project; each phase must commence construction within 18 months of the projected and approved commencement date.
   2. (d) Approval to construct shall not relieve any owner or operator of the responsibility to comply fully with applicable provisions of the Massachusetts SIP and any other requirements under local, State or Federal law.
   3. (e) At such time that a particular source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in any enforceable limitation on the capacity of the source or modification to emit a pollutant, where such enforceable limitation was established after August 7, 1980, then the requirements of 310 CMR 7.00: Appendix A shall apply to the source or modification as though no previous approval had been issued on the source or modification.

NON-TEXT PAGE

APPENDIX B: U EMISSION BANKING, TRADING, AND AVERAGING

1. (1) Introduction. 310 CMR 7.00: Appendix B(1) through (6) establishes principles and procedures which can be utilized by facilities to comply with the requirements of 310 CMR 7.18, 310 CMR 7.19 and 310 CMR 7.00: Appendix A. 310 CMR 7.00: Appendix B contains provisions to allow emission averaging or "bubbles" and provisions to allow for the creation and use of emission reduction credits to be "banked", used or traded among facilities.
2. (2) Definitions. The definitions found in 310 CMR 7.00 apply to 310 CMR 7.00: Appendix
3. B. The following words and phrases shall have the following meanings as they appear in 310 CMR 7.00: Appendix B. Where a term is defined in the 310 CMR 7.00 definitions section and the definition also appears in 310 CMR 7.00: Appendix B, the definition in 310 CMR 7.00: Appendix B controls.

Actual Emissions means, the average rate, in tons per year, at which a unit actually emitted the pollutant during the two-year period which precedes the date of application and which is representative of normal production rates or activity levels. The Department shall allow the use of a different two year consecutive time period, within five years immediately prior to the date of application, upon a determination that the alternative two year period is more representative of normal source operation. Actual emissions shall be calculated using the eligible source's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period.

Allowable Emissions means the emissions rate of a source calculated using either the production or activity rates associated with the maximum rated capacity of the source , and the hours of operation or the permitted hours of operation or capacity provided that such permit is federally enforceable and so as not to exceed the following:

1. (a) Any applicable standards set forth in 40 CFR part 60 (NSPS) or 61 (NESHAPS);
2. (b) Any applicable Massachusetts SIP emissions limitation including a limitation with a future compliance date; or
3. (c) Any emissions rate specified as a federally enforceable permit condition, including a limitation with a future compliance date.

Area Source means stationary and non-road sources of emissions who are too small and/or too numerous to be individually included in a stationary source emission inventory examples being home heating furnaces, aircraft, commercial vessels, gas stations and lawn mowers.

Baseline means the emission level set for an eligible source and calculated in accordance with methods described in 310 CMR 7.00: Appendix B(3)(c), which reflects the lower of actual emissions, or allowable emissions and which serves as the level below which emission reductions are considered surplus and can be eligible for approval by the Department as Emission Reduction Credits (ERC). As future allowable emission rates or emission standards become effective, the lowest of future allowable emissions, allowable emissions or actual emissions will be the baseline below which reductions must be made to be considered surplus.

Bubble means an alternative emission control strategy where two or more existing emission points are regarded as being placed under a hypothetical bubble, which is then regarded as a single emission source.

Curtailment means a permanent reduction in hours of operation or process rate, said reduction approved in a permit issued by the Department.

Direct Determination means a calculation or measurement based on source specific information rather than from estimates of emission and control efficiencies.

Eligible Source means any stationary, area or mobile source of VOC, NOx or CO emissions which is eligible to participate in emissions banking and trading at any point in time.

Appendix B: continued

Emission Estimation means calculation of emissions using estimated emission factors and assumptions of control efficiency not based in whole or in part on actual measurement or detailed records for an emission unit.

Emission Limiting means a program or strategies that directly specify limits on total mass emission, emission related parameters (e.g., emission rates per unit of product) or levels of emission reductions that are required to be met by eligible sources.

Emission Reduction Credit (ERC) means the actual air pollutant reductions from an emitting source that have been certified by the Department as enforceable, permanent, quantifiable, real, and surplus in accordance with the requirements of 310 CMR 7.00: Appendix B.

Enforceable means those limitations and conditions which are enforceable by the Department of Environmental Protection and the EPA. Examples of such enforceable mechanisms include, but are not limited to the following:

1. (a) Conditions in pre-construction permits issued pursuant to 40 CFR 52.21 (federal delegated PSD programs); or
2. (b) Limitations developed pursuant to 40 CFR Parts 60 (NSPS) and 61 (NESHAPS); or
3. (c) Requirements contained in the EPA-approved Massachusetts State Implementation Plan (SIP), or source-specific SIP revisions that are approved by EPA; or
4. (d) Conditions in pre-construction "plan approvals" issued by the Commonwealth of Massachusetts, provided that those pre-construction "plan approval" regulations have been approved by the EPA in the Federal Register as meeting the requirements of 40 CFR 51.160.
5. (e) Permits issued pursuant to generic bubble regulations that have been approved by EPA as adhering to the December 4, 1986, Emissions Trading Policy Statement.
6. (f) Information contained in a Department-issued Emission Reduction Credit approval for retrospectively approved ERCs, as to by what means the ERCs were created.

Future Allowable means the maximum emission rate, process rate or activity level assumed in the most recent Department adopted State Implementation Plan for Ozone or State Implementation Plan for Carbon Monoxide. An example might be the future allowable (1994) emission rate for Leather Coating operations at 27.4 pounds of VOC per gallon of solid applied [310 CMR 7.18(22)] which when applied to the two year average capacity utilization factor and two year average hours of operation for an eligible source, would result in the estimate of baseline starting on the rule effective date in 1994. Prior to this effective date, credit is calculated using a baseline that includes the lower of actual or allowable emissions at the time of application.

Irreversible Process Change means a process modification or equipment substitution that completely and irreversibly eliminates key emitting properties of the emission unit. For example, elimination of solvent use in a process line.

Mass ERC Bank means the Massachusetts registry for ERCs quantified by mass (e.g. tons). ERCs from this bank may be used either for compliance pursuant to 310 CMR 7.00: Appendix B(3) or for "discrete" offsets pursuant to 310 CMR 7.00: Appendix B(3) and 310 CMR 7.00: Appendix A.

NEPOOL Marginal Emission Rate or Successor Organization Rate means the corresponding calendar year NO emission rate determined by NEPOOL or a successor organization through x accepted modeling or data gathering techniques reviewed and approved by the Department.

Netting means the mechanism used to secure an exemption of modifications at existing stationary sources from preconstruction permit requirements under 310 CMR 7.00 Appendix A (Emission Offsets and Nonattainment Review) and/or 40 CFR 52.21 (Prevention of Significant Deterioration) regulations which apply when there is a significant net emissions increase.

Appendix B: continued

Non-inventoried Emission Source Category means air pollutants emitted into the ambient air from any source category which has not been included in the Department's 1990 emission inventories.

Offset means the use of an Emission Reduction Credit to compensate for emission increases of a nonattainment pollutant from a new major stationary or modified major stationary source subject to the requirements of 310 CMR 7.00: Appendix A.

Permanent means that emission reductions implemented for the purpose of generating Emission Reduction Credit must be assured for the life of the corresponding Emission Reduction Credit through a federally enforceable mechanism.

Program Baseline means the level of emissions, or emission related parameters for each eligible source or group of sources from which the program results (e.g. quantifiable emission reductions) shall be determined. For purposes of 310 CMR 7.00: Appendix B, the program baseline shall be the 1990 Base Year Emission Inventory of Volatile Organic Compound, Oxides of Nitrogen and Carbon Monoxide.

Quantifiable means that the amount, rate, and characteristics of an emission reduction can be measured through a replicable method acceptable to the Department of Environmental Protection and the EPA.

Rate ERC Bank means the Massachusetts registry of ERC that have been certified at a continuous rate (i.e. tons per year). ERCs from the Rate ERC Bank may be used for the purposes of offsets pursuant to 310 CMR 7.00: Appendix B(3) and 310 CMR 7.00: Appendix A.

Real means the reduction in actual emissions released into the air.

Remaining Useful Life means the length of time for which the equipment that is being shut down would have continued to operate had the owner/operator chosen not to shut down the equipment and apply for certification of credits at that time. Remaining useful life shall be ten years except in those cases where the Department determines a shorter period is appropriate, or the applicant demonstrates to the Department's satisfaction that a period of longer than ten years is warranted. The Department will use the following criteria for making the determination including, but not limited to: the age of the equipment; the type of equipment; maintenance history; operating history; and industry norms. In any case, remaining useful life shall not exceed 20 years.

Replicable means methods which are sufficiently clear and unambiguous such that the same or equivalent results would be obtained by the application of the methods by different users.

Shutdown means the earlier of (1) the date that the Department verifies that the source is shutdown or 2) the date that operations and emissions from an emitting unit ceased and the associated emission units have been removed or rendered inoperable.

State Implementation Plan (SIP) means the most recently prepared plan or revision thereof required by the Clean Air Act, 42 USC Section 7410, which has been either adopted by the Department and submitted to the United States Environmental Protection Agency (EPA) for approval or approved by the United States Environmental Protection Agency (EPA), whichever is more stringent.

Surplus means, emission reductions beyond an established source baseline which, as such, are not required by the Department adopted SIP, relied upon in any applicable attainment demonstration, or credited in any RFP or milestone demonstration.

Transfer means the conveyance of ownership of an Emission Reduction Credit from one entity to another.

Appendix B: continued

Use for the purposes of 310 CMR 7.00: Appendix B, the term "use" shall mean to employ for emission averaging or emission trading an ERC such that the person who owns or controls the ERC has received a plan approval from the Department which factors the ERC into the emissions from the facility for purposes of compliance with emission limitations or emission offset requirements.

1. (3) Emission Reduction Credit Banking and Trading.

   1. (a) Introduction and statement of purpose. The goal of the program, defined by 310 CMR 7.00: Appendix B(3), is to encourage the creation and trading of surplus emission reductions as Emission Reduction Credits (ERC) to be used for purposes of offsets, netting and cost effective compliance without interfering with any applicable requirements concerning attainment, reasonable further progress or any other applicable air pollution control requirement.

   2. (b) Applicability.

      1. 1. Entry into this program is voluntary.
      2. 2. 310 CMR 7.00: Appendix B(3) applies to the owner/operator of eligible sources including stationary sources, area sources and mobile sources applying for certification of surplus emission reductions as emission reduction credits (ERC).
      3. 3. Nothing in 310 CMR 7.00: Appendix B shall require that ERCs be listed in either the Rate ERC Bank or the Mass ERC Bank if the ERCs are being transferred to other facilities operated or owned, in whole or part, by the creator of the ERCs, provided that the requirements of 310 CMR 7.00: Appendix B(3)(e) are met prior to use of the ERCs.
      4. 4. Nothing in 310 CMR 7.00: Appendix B shall require that emission reductions, created for the purpose of offsets, be submitted for approval through the emission banking program if the emission reductions are used by the facility or within facilities owned by the same economic entity which created the emission reductions and provided that the requirements of 310 CMR 7.00: Appendix A are met.

   3. (c) Generation of Emission Reduction Credit.

      1. 1. General Principles which apply to generation of Emission Reduction Credits (ERC).

         1. a. Emission reductions within Massachusetts shall be recognized as ERCs only after the approval of the Department has been obtained in accordance with 310 CMR 7.00: Appendix B(3).

         2. b. Emission reductions generated for the purpose of creating ERCs must meet, at minimum, all of the following principles, to receive approval as emission reduction credits.

            1. i. The reductions must have occurred after December 31, 1990.
            2. ii. The reductions must be real reductions of emissions of: Volatile Organic Compounds (VOC), Oxides of Nitrogen (NOx), or Carbon Monoxide (CO);
            3. iii. The reductions must be surplus in that they are reductions in emissions below the baseline established for the eligible source.
            4. iv. The reductions must be permanent and the amount and duration of the reduction must be documented; and,
            5. v. The reductions must be quantifiable, with a replicable basis for calculating the amount of reduction as well as reliable methods for assessing compliance with the emission rates after the reduction has been made, and the reductions must be enforceable.
         3. c. Emission reductions cannot be recognized as ERCs if said reductions are required by Federal or Department permits, plan approvals, agreements, administrative or judicial orders, or other enforcement actions or regulations.
         4. d. Emission reductions can only be eligible for certification pursuant to 310 CMR 7.00: Appendix B(3) if said reductions occur from emissions sources within the geographical boundaries of Massachusetts. ERCs generated by sources outside of the Commonwealth may be used by facilities within the Commonwealth pursuant to 310 CMR 7.00: Appendix B(3)(f).
         5. e. Emission reductions eligible for credit are those emissions reductions below baseline for the eligible source.
         6. f. Emission reductions considered eligible for consideration as ERCs include:

Appendix B: continued

1. i. Shutdown or curtailment provided that the applicant can demonstrate to the satisfaction of the Department that demand for the services or product will not or cannot shift to other similar sources in the State resulting in no net decrease in emissions from the source category. Where emission reductions from shutdowns of electric generating facilities will be used exclusively as offsets for new facilities pursuant to 310 CMR 7.00: Appendix A, the ERC will not be adjusted for shifting demand. If such reductions are to be deposited in the Mass ERC Bank, credit will be available only to the extent that the emission rate from the unit being shut down or curtailed is greater than the applicable NEPOOL marginal emission rate or successor organization rate.
2. ii. Control of an emission unit beyond that required by Massachusetts Air Pollution Regulations or federal law and regulations.
3. iii. Seasonal Controls with the recognition that VOC and NOx emission reductions created by the application of seasonal controls will be subject to use restrictions as defined in 310 CMR 7.00: Appendix B(3)(e)8.
4. iv. Early implementation of future emission controls provided that the reductions commence before promulgation of the regulations establishing the new emission controls. These reductions are surplus only up to the effective date for compliance with the program or emission controls. Credit will cease to accrue upon the effective date of the new emission controls.
5. v. Emission reductions which result from application of mobile and area source controls provided that the reductions meet all other requirements of 310 CMR 7.00: Appendix B including provisions for establishment of baseline and replicable quantification as well as compliance monitoring methods.
6. g. Emission reductions are not eligible for consideration as an ERCs if said reductions are generated by an un-inventoried area source category (e.g., small bakeries) or if said reductions are generated by biogenic sources (e.g., trees).

7. 2. Calculation of Credit.

   1. a. Credit shall be calculated by first calculating baseline emissions, second calculating the post reduction emissions, and third multiplying the difference between the baseline emissions and post reduction emissions by the applicable compliance assurance factor. The ERC amount is the result of complete application of these three steps.
   2. b. Baseline emissions will be expressed in tons of pollutant emitted per day or per year, whichever is more appropriate and shall be further defined as ozone or non- ozone (October 1 - April 30) season.

Step 1:

1. c. Baseline emissions will be established for each stationary source according to the following formula:

baseline = ER x (CU x H)

Where:

ER equals the lower of the actual or allowable emission rate

ER shall be expressed as mass of emission per unit of production or thruput (e.g., pounds of VOC per gallon of solids applied or pounds of NOx per million Btu)

CU equals the actual average hourly capacity utilization (e.g., expressed in terms of millions of Btu per hour or numbers of gallons of solids applied in an hour).

H equals the actual number of hours of operation per day.

ERC, CU and H are based on average historical values for the factors for two representative years within the five years immediately prior to the date of application.

Appendix B: continued

1. d. Baseline emissions will be established for each area source measure according to the following formula:

baseline = ER x ACT

Where:

ER equals the emission rate as determined by the Department and EPA in the most recent emission inventory using EPA approved methods and emission factors including AP-42 and Volume IV for Area Source, or the EPA Off-road Study for off-road sources. Assumptions shall be consistent with the most recent adopted periodic emission inventory prepared by the Department.

ER must be the lower of actual, or allowable emission rate and shall be expressed as mass of emission per unit of production or thruput (e.g., pounds per 1000 gallons burned or pounds per capita, as is appropriate)

ACT equals the actual average activity factor expressed in a manner so as to be consistent with the units required by the emission rate such as number of gallons burned, or number of persons affected.

1. e. Baseline emissions will be established for each Mobile Source by methods approved or published by EPA or the Department, including but not limited to:

   1. i. Interim guidelines on the Generation of Mobile Source ERC, 58 FR 11134.
   2. ii. Guidance for Implementation of Accelerated Retirement of Vehicle programs, U.S. EPA, February 1993.
   3. iii. Program for Generation of Emission Credits by Urban Buses, U.S. EPA, January 1993.
2. 3. Calculation of post-reduction emissions.

Step 2:

1. a. Creditable, workable and replicable methods must be used to quantify post- reduction emissions reflecting the real emission reduction below baseline emissions. The post-reduction emissions shall be calculated using methods as or more accurate than those used to calculate baseline emissions.
2. b. Post-reduction emissions for DSM shall be determined after implementation of these DSM measure(s) and based on review of historical records covering a period of no less than one year collected since implementation, and shall be calculated in conformance with guidance provided and approved by the Massachusetts DPU.

3. 4. Calculation of the Emission Reduction Credit.

   1. a. Step 3: The emission reduction is calculated by first subtracting post- reduction emissions from baseline emissions.
   2. b. The emission reduction will be certified by the Department as an emission reduction credit after application of a compliance assurance multiplier to the resulting difference between baseline emissions and post-reduction emissions. The applicable compliance assurance multiplier will be determined by the Department within the ranges provided in the table below. Actual ERC adjustment will be set for individual circumstances and conditions within these ranges.

Method of Compliance Assurance Compliance Assurance

Multiplier

Irreversible process change 1.0 Compliance Assessment by Direct Determination: Continuous Emission Monitoring System (CEMS) installed pursuant to 40 CFR part 75 1.0 Mass Balance Reconciliation 0.85 - 0.99 CEMS other than 40 CFR part 75 0.80 - 0.95

Appendix B: continued

Compliance Assessment by Testing: Periodic Stack Test / Emission Test 0.80 - 0.90 Testing of Capture Efficiency and control

Emission Determinations using estimates of capture and control and/or emission factors 0.50 - 0.80

1. i. The resulting amount of credit will be rounded to the nearest ton.
2. ii. Once the three step calculation has been completed, and the result rounded to the nearest ton, the resulting ERCs shall not be subject to adjustment of value.
3. c. ERCs certified from discrete, retrospective reductions shall be expressed in total tons and will be placed in the Mass ERC Bank. ERCs from the Mass ERC Bank may be used as offsets pursuant to 310 CMR 7.00: Appendix A with approval of the Department.
4. d. ERCs certified from either shutdowns or enforceable prospective over-control of emissions shall be expressed in tons per year, and will be placed in the Rate ERC Bank. In the event the owner of ERCs from a shutdown wishes to transfer the ERCs to the Mass ERC Bank, the Department will assign the ERCs from the shutdown a "remaining useful life" in years, which will be used to transfer the ERCs from the Rate ERC Bank to the Mass ERC Bank. If the ERC transferred are from shutdown of an electric generating facility, the Department will also subtract the NEPOOL marginal emission rate or successor organization rate replacement power in effect at the time of original certification of the ERCs.

1. (d) Procedure For Certification of Emission Reductions as ERC.

   1. 1. An application for certification of ERCs may be submitted in advance of the time when the reduction is actually made (prospective certification) or after the reduction has been made (retrospective certification).

   2. 2. Unapprovable sources of generation and quantities.

      1. a. ERCs may not be generated from non-inventoried sources. In other words, only sources accounted for in SIP and RFP planning (inventoried sources) may be used to generate credits.
      2. b. ERCs can be approved only where the emission reduction, as calculated under 310 CMR 7.00 Appendix B(3)(c)4.a., is greater than 5 tons per year for deposit in the Rate ERC Bank, or greater than 5 tons for the Mass ERC Bank.
   3. 3. For emission reductions implemented prior to January 1, 1994, an Emission Reduction Credit Application must be submitted to the Department by September 30, 1994.

   4. 4. For emission reductions implemented after January 1, 1994, an Emission Reduction Credit Application must be submitted to the Department within six months of:

      1. a. the end date of the period being evaluated for a retrospective discrete emission reductions.
      2. b. the approval date of a federally enforceable mechanism for prospective emission reductions other than 310 CMR 7.00 Appendix B(3).

   5. 5. Application Procedures.

      1. a. Any person who owns or operates an emission unit at which an eligible emission reduction has occurred or will occur may submit an Emission Reduction Credit
      2. (ERC) application in accordance with the requirements of 310 CMR 7.00: Appendix B.
      3. b. The ERC application shall be submitted on a standard form supplied by the Department with documentation provided by the applicant as to the calculation method for baseline and the post-reduction emissions as required by 310 CMR 7.00: Appendix B(3) as well as a proposed method for determining and assuring compliance.
      4. c. ERC applications shall express emission reductions in tons, or in tons per year if for offsets, and indicate what portions of the reductions were made during the period May 1 - September 30 (ozone season).
      5. d. ERC applications shall contain sufficient information to allow the Department to evaluate each emission reduction consistent with the requirements of 310 CMR 7.00: Appendix B(3).

Appendix B: continued

1. e. The ERC application shall be signed by a responsible official.
2. f. The ERC application shall comply with provisions of 310 CMR 4.00 et seq. for fees and permit procedures.

3. 6. ERC approvals will be emission-limiting, either prospectively or retrospectively, as applicable. An ERC approval will be issued pursuant to 310 CMR 7.00: Appendix B(3). To be made federally enforceable, it must contain the specific quantifiable emission limits reflecting the change in emission rate, operating conditions and other measures taken to generate the ERCs. All emissions limitations, controls, and other requirements imposed by such approvals must be at least as stringent as all other applicable limitations and requirements contained in the SIP, enforceable under the SIP, or otherwise federally enforceable. All limitations, controls, and other requirements imposed by such approvals must be permanent, quantifiable, and enforceable as a practical matter.

   1. a. In order to confirm emission reductions claimed in conjunction with an application for a prospective Emission Reduction Credit, the Department will require sources to implement compliance assurance methods such as monitoring, recordkeeping and reporting as part of the ERC certification approval.
   2. b. The Department may also require the applicant to conduct source testing utilizing Department or EPA approved test methods, including but not limited to those methods referenced in 40 CFR Part 60 Appendix A, or 310 CMR 7.18(2), or 310 CMR 7.19(13), as appropriate for the source.
   3. c. In addition, the Department may require regular submittal of information which the Department determines is necessary to maintain the integrity of the ERC.
4. 7. A person having ownership of ERCs has the exclusive right to possess and dispose of the ERCs subject to the applicable restrictions contained in the certification approval and 310 CMR 7.00: Appendix B(3).
5. 8. ERCs in the Rate ERC Bank shall revert to the state to be retired for the benefit of the environment if they have not been used by midnight of the date ten years from the date of Department approval. ERCs in the Mass ERC Bank shall not expire or cease to exist after a set period of time, even if not traded or used.

6. (e) Withdrawal, Transfer, and Use of Emission Reduction Credits.

   1. 1. The Department must issue a federally enforceable approval to a person seeking to use ERCs prior to the use of any ERCs. This includes approvals to construct or operate issued to stationary sources and a practical equivalent to be issued to persons who have applied to use ERCs in area and mobile source situations.
   2. 2. Persons seeking to use ERCs must obtain an amount of credit equal to five percent more than the amount needed for the offset or compliance calculation. This five percent increment shall be held by the applicant and not used or sold until such time that the Department determines whether or not the excess credit can be released for use. Such a determination shall be made by the Department on or about January 1, 1999. If the Department determines it cannot release said ERCs for use, the ERCs will by operation of law be retired for the benefit of the environment.
   3. 3. ERCs may not be used to meet the requirements of, or result in violation of federal New Source Performance Standards (NSPS), National Emission Standards for Hazardous Air Pollutants (NESHAPS), the requirements for Lowest Achievable Emission Rate (LAER), the requirements for Best Available Control Technology (BACT), Maximum Achievable Control Technology (MACT), Title IV, section 183(e) and 183(f) of the Clean Air Act, cause a violation of a National Ambient Air Quality Standard for criteria pollutants, cause a violation of a PSD increment or create a nuisance condition. ERCs may not be used to stay below an applicability threshold of the Clean Air Act or 310 CMR 7.00 et seq.
   4. 4. ERCs may not be used to comply with performance standards established by regulation, such as, operating procedure requirements (e.g. covers on degreasers, operating within a specific temperature range) or to comply with requirements for record keeping, reporting or facility testing as may be required by the Department.
   5. 5. Where ERCs are used for netting under 310 CMR 7.00: Appendix A, the ERCs must meet the criteria in 310 CMR 7.00: Appendix A Net Emissions Increase(a) through (g), as applicable.

Appendix B: continued

1. 6. Certified ERCs can be traded between emission sectors (e.g., from mobile sources to stationary sources) provided that credit generated by stationary source reductions may under no circumstances be used to comply with any mobile source requirement.
2. 7. ERCs generated through emission reductions of one pollutant can not be used for trading or averaging with another pollutant.

3. 8. ERCs generated by the control of ozone precursors (VOC and NO ) during the period x

   st th

May 1 through September 30 , can be used at any time during the calendar year. ERCs

st th

generated by control of ozone precursors during the period October 1 through April 30 ,

st th

can only be used in the same season as generated (October 1 through April 30 ). 9. ERCs generated by the use of seasonal control of carbon monoxide during the period

st th

November 1 through February 28 , can be used at any time during the calendar year. ERCs generated through use of seasonal control of carbon monoxide during the period

st st

March 1 through October 31 can only be used in the in the same season as generated

st st

(March 1 through October 31 ). 10. ERCs approved from shutdown or curtailment of an emission unit where the emitting operations are based on manufacturing activity and the operations, and jobs associated with the emitting activity are shifted outside of Massachusetts, are eligible for use only in Massachusetts. 310 CMR 7.00: Appendix B(3)(e)11. does not apply to electric generating facilities. 11. ERCs generated by shutdowns are presumptively available only for offsets pursuant to 310 CMR 7.00: Appendix A. If at any time prior to use ofERCs as offsets an owner of said ERCs wishes to use them for compliance purposes, the Department will assign a "remaining useful life" to said ERCs which will be used to transfer the ERCs from the Rate ERC Bank to the Mass ERC Bank. If the ERCs were generated by an electric generating facility shutdown, the Department will also subtract the NEPOOL marginal emission rate or successor organization rate in effect at the time of original ERC certification. Offset credits generated outside of the Commonwealth of Massachusetts are not eligible for conversion to mass-based credits. 12. ERCs from the Rate ERC Bank used as offsets pursuant to a 310 CMR 7.00: Appendix A approval, must be retired at the approved annual offset rate regardless of the facility's annual actual emissions. In addition, ERCs from the Mass ERC Bank used as offsets pursuant to a 310 CMR 7.00: Appendix A approval, must be obtained for the current year of operation plus four subsequent years of operation; and five years of ERCs, available for use in each of those five years, must be held at all times for the

st

approval to remain valid. These ERCs will be retired on December 31 of each year, beginning with the first calendar year or any portion thereof, in which the facility operates. 13. ERCs utilized as offsets are considered "used" commencing with startup of a facility; ERCs with an expiration date prior to actual startup of a source needing offsets will not be acceptable as offsets for the facility. 14. Conversions to Allowances. (Reserved)

1. (f) Interstate Trading of ERCs.

   1. 1. Federally enforceable emission reductions generated by facilities outside the Commonwealth may be used in the Commonwealth, and ERC generated in the Commonwealth may be used in other states or jurisdictions, provided that the State within which the other facility is located has executed a Memorandum of Understanding concerning emission trading with the Commonwealth.

   2. 2. Said Memoranda of Understanding will include at a minimum:

      1. a. the requirement that creditable emission reductions be real, surplus, permanent, quantifiable and federally enforceable;
      2. b. discounts as appropriate to make ERCs generated outside of the Commonwealth equivalent with ERCs generated in the Commonwealth;
      3. c. restrictions on allowable directionality oftrades if necessary;
      4. d. state-specific notification or other requirements, as necessary;
      5. e. ERC lifetimes and expiration dates, if applicable;
      6. f. ozone season definition and restrictions;

Appendix B: continued

1. g. the requirement that any ERC generated outside of the Commonwealth can be used in the Commonwealth only in compliance with 310 CMR 7.00: Appendix B(3)(e), except where specifically stated otherwise; and
2. h. averments of cooperation on enforcement and reporting.
3. 3. Interstate emission reduction credit trades must comply with the specific requirements of the applicable Memorandum of Understanding.

4. (g) Emission Reduction Credit Registry.

   1. 1. Upon satisfaction of all applicable requirements of 310 CMR 7.00: Appendix B, approved emission reduction credits shall be registered in an Emission Reduction Credit Registry operated or overseen by the Department. Such registry shall include:

      1. a. Name of generator and contact person;
      2. b. Pollutant associated with the ERCs;
      3. c. Amount of ERC expressed in tons, or in tons per year if banked in Rate ERC Bank;
      4. d. Any seasonal use restrictions on the ERCs;
      5. e. Whether the ERCs may be used or are reserved as part of a 5% set aside pursuant to 310 CMR 7.00: Appendix B(3)(e)2.
   2. 2. ERCs shall be tracked within the Emission Reduction Credit Registry by assigning a serial number to each ton of ERC, or ton per year if banked for use as offsets. The serial number will provide information about the type of pollutant, type of ERC (rate/mass), seasonality and first year available for use.
   3. 3. Information related to emission reduction credits maintained in the Emission Reduction Credit Registry shall be available for public review.

5. (h) Program review.

   1. 1. The Department shall maintain records of ERCs and shall account for unused ERCs as "emitted" within the context of RFP and periodic emission inventory reports.
   2. 2. The Department shall conduct a review of the emission trading program beginning in 1995 and every three years thereafter. This review shall evaluate the handling of applications for ERC approval and use, and the legitimacy of approved ERCs, and may include review of ERCs creation and use protocols, and compliance assessment of sources using ERCs.
   3. 3. The program review shall also include assessment of the impact of the program on Reasonable Further Progress, attainment or maintenance of the National Ambient Air Quality Standards, and ascertain if there is any significant effect from interstate trades pursuant to 310 CMR 7.00: Appendix B(3)(f).
   4. 4. Should a review reveal the need to make program revisions, the Department shall, within six months of the review findings, propose the appropriate program revisions.
   5. 5. The results of Department reviews and the findings shall be reported in the context of required RFP and periodic inventory reports (every three years).
   6. 6. Program Baseline for this program is the most recent revision of the 1990 Base Year Emission Inventory of Volatile Organic Compound, Oxides of Nitrogen and Carbon Monoxide and the State Implementation Strategy Plan submittal of November 15, 1993 which describes programs and strategies to be used by the Commonwealth to attain and maintain NAAQS for ozone and carbon monoxide. Source baseline as described in previous sections is defined within the context of the program baseline (the lower of actual, allowable or future allowable emissions) so as to avoid interference with attainment and maintenance of NAAQS.

6. (4) Emission Averaging (Bubble).

   1. (a) Introduction.

      1. 1. The purpose of 310 CMR 7.00 Appendix B(4) is to specify requirements by which one or more facilities operated or controlled by the same economic entity can comply with either 310 CMR 7.18 or 7.19, respectively, using emissions averaging, herein referred to as a bubble, under either 310 CMR 7.18(2)(b) or 7.19(14).
      2. 2. In an emissions bubble, a person who operates or controls one or more facilities with more than one emission unit subject to regulation by 310 CMR 7.00, may apply to the Department to meet the requirements of either 310 CMR 7.18 or 7.19 through a mix of control techniques. The emissions of the various emission units are averaged over a 24 hour period, except as provided for in 310 CMR 7.00 Appendix B(4)(e)5.

Appendix B: continued

1. (b) Applicability.

   1. 1. 310 CMR Appendix B(4) applies to any person who operates or controls a facility(ies) subject to either 310 CMR 7.18(3) through (6), (10) through (12), (14) through (16), (21) through (26), (30)(c)7., (31) or 310 CMR 7.19(4), (5), (7), (8), (12), that set an emission limitation in either pounds of VOC per gallon of solids applied or pounds of NO per x million Btu of heat input, respectively, and who chooses to comply by emission averaging.
   2. 2. For bubbles to comply with 310 CMR 7.18, emission units subject to emissions standards other than pounds of VOC per gallon of solids applied (e.g. such as pounds of VOC per pound of solids applied, pounds of VOC per 1000 square feet covered, metric units, etc.) may be averaged with other emission units subject to an emission limitation in the same units of measure.
   3. 3. For bubbles under 310 CMR 7.19, 310 CMR 7.19(14)(a), through (c) describe which emissions units can be averaged together to comply with 310 CMR 7.19 and under what replicable and equivalent methods.
   4. 4. A bubble can not be used to comply with work practice requirements of either 310 CMR 7.18 or 7.19.
   5. 5. For purposes of 310 CMR 7.00 Appendix B(4), emission bubbles are only allowed for the purpose of compliance at a single facility or multiple facilities which are operated by or under the control of the same economic entity.
   6. 6. Nothing in 310 CMR 7.00 Appendix B(4) relieves a facility from having to comply with other requirements of 310 CMR 7.00 as may be applicable.

NON-TEXT PAGE

Appendix B: continued

1. 7. For facilities that have bubbles that were approved by the Department under 310 CMR 7.18(2)(b) and for which the application was received prior to May 25, 1988, the approved bubble conditions, recordkeeping and reporting requirements shall remain in force and no revision of said bubble approvals is required by 310 CMR 7.00: Appendix B(4), unless and until the facility seeks to have the existing bubble approval modified. At that time, the request to modify the bubble shall be subject to 310 CMR 7.00: Appendix B(4). However, with respect to those bubbles that were approved by the Department under 310 CMR 7.18(2)(b) and for which the application was received prior to May 25, 1988, modification of said bubbles solely to incorporate a more stringent Reasonably Available Control Technology adopted pursuant to 310 CMR 7.18 shall not make the facility subject to 310 CMR 7.00: Appendix B(4).

2. (c) General Bubble Requirements.

   1. 1. Compliance with emission requirements, through use of a bubble, will be approved by the Department providing that:

      1. a. The bubble has been approved by the Department in accordance with 310 CMR 7.00 Appendix B(4).
      2. b. At no time may the use of a bubble result in a violation of a National Ambient Air Quality Standard for nitrogen dioxide (NO ), particulate matter or carbon monoxide 2
      3. (CO) as determined by modelling.
      4. c. At no time may the use of a bubble result in total VOC or NO emissions at a x facility exceeding the applicable emission limitations in 310 CMR 7.18 or 7.19 averaged over a 24 hour period (except as provided for in 310 CMR 7.00 Appendix B(4)(e)5.) for emission units in the bubble.
      5. d. At no time may use of a bubble result in total VOC emissions exceeding a monthly facility emission baseline as calculated under 310 CMR 7.00: Appendix B(4)(e)2. At no time may use of a bubble with an averaging time longer than 24 hours result in NO emissions exceeding the daily cap as calculated in 310 CMR 7.00 x Appendix B(4)(e)5.
      6. e. Organic compounds, that are specifically excluded from the definition of VOC in 310 CMR 7.00, shall not be used to emission average.
      7. f. At no time may use of a bubble under 310 CMR 7.00 Appendix B(4) be used to meet the requirements of, or result in an increase in emissions for any emission unit above a New Source Performance Standard (NSPS), National Emission Standard for Hazardous Air Pollutants (NESHAP), the requirement for Best Available Control Technology (BACT), the requirement for Lowest Achievable Emission Rate (LAER) or Maximum Achievable Control Technology (MACT).
      8. g. Emission reductions used in a bubble must be real in that the emission reductions must be from an emission unit which actually operated within the two year time period immediately preceding the application for the bubble.
      9. h. Emission reductions used in a bubble must be permanent and the amount and duration of the reduction must be documented.
      10. i. Emission reductions used in the bubble must be quantifiable with a replicable method for calculating the amount of reduction, as well as, a replicable method for assessing compliance with the emission rates after the reduction has been made.
      11. j. Emission limitations must be federally enforceable and will be documented in the facility's emission control plan approval issued by the Department.

3. (d) Application for a Bubble.

   1. 1. Application for approval of an emission bubble shall be made as part of the submittal to the Department of an emission control plan pursuant to either 310 CMR 7.18(20) or 310 CMR 7.19(3) and shall include:

      1. a. Identification of all emission units to be included in the bubble, and
      2. b. Demonstration of how compliance will be met and maintained, and
      3. c. Demonstration that all emission units included in the bubble are operated by or under the control of the same economic entity, and

      4. d. Demonstration that the bubble will not increase emissions of an emission unit included in the bubble above the following standards as applicable:

         1. i. A Best Available Control Technology (BACT) determination pursuant to 310 CMR 7.02(3), or 40 CFR 52.21, or
         2. ii. A Lowest Achievable Emission Rate (LAER) determination pursuant to 310 CMR 7.00 Appendix A, or
         3. iii. A Federal New Source Performance Standard (NSPS [40 CFR Part 60]), or

Appendix B: continued

1. iv. A National Emission Standard for Hazardous Air Pollutants (NESHAP [40 CFR Part 61]), or
2. v. A Maximum Achievable Control Technology (MACT) determination pursuant to 40 CFR Part 63.
3. e. For bubbles to comply with 310 CMR 7.19, evidence that the bubble will not cause an exceedance of the National Ambient Air Quality Standard for nitrogen dioxide (NO ) or carbon monoxide (CO). 2
4. f. For facilities wishing to bubble either VOC or NO emissions, documentation that x the bubble will result in total VOC or NO emissions, respectively, in compliance x with the applicable emission limitation on a 24-hour basis as calculated under 310 CMR 7.00: Appendix B(4)(e)1. Exceptions to this averaging period may be granted by the Department as provided for in 310 CMR 7.00 Appendix B(4)(e)5. For VOC bubbles, the person must document that the bubble will result in total VOC emissions below the emissions baseline on a monthly basis.
5. g. Documentation that emission reductions used in the bubble are real, quantifiable, permanent and federally enforceable.
6. 2. After approval of 310 CMR 7.00 Appendix B(4) by EPA into the Massachusetts SIP, certain applications to bubble will still require EPA approval. Persons wishing to include mobile and area sources in a bubble are required to have the approval of the EPA prior to inclusion of those sources in the bubble.
7. 3. Sources subject to enforcement action require the approval of EPA prior to use of a bubble to comply with 310 CMR 7.18 or 7.19. If EPA does not object to the use of a bubble by any facility subject to enforcement action during the public comment period, then this will be taken as EPA approval to bubble.

8. (e) Bubble Calculation.

   1. 1. In order to comply with a bubble for VOC or NO , the combined actual emissions x
   2. (AcE) over a daily (or other period as allowed by 310 CMR 7.00 Appendix B(4)(e)5.) from all emission units in the bubble must be less than or equal to the allowable emission total (AlE) as determined by the following equations:

   AcE = (Ac x B ) + (Ac x B ) + (...) + (Ac x B ) 1 1 2 2 n n

   AlE = (A x B ) + (A x B ) + (...) + (A x B ) + ERC 1 1 2 2 n n

Where: AcE = the combined actual emissions from the facility in pounds per day.

AlE = the allowable emissions from the facility in pounds per day.

Ac , Ac ,...Ac = the actual emission rate of each emission unit (e.g. for VOC; pounds of 1 2 n VOC per gallon of solids applied; for NO , pounds of NO per million Btu heat input) x x included in the bubble. Where a single CEMS is used to determine the emission rate of more than one emission unit, this will be a combined emission rate.

A , A ,...A = the most stringent applicable emission limitation for each unit of production 1 2 n (e.g. for VOC; pounds of VOC per gallon of solids applied; and for NO , pounds of NO per x x million Btu heat input).

B ,B ,...B = the actual number of production units processed each day (e.g. for VOC: gallons 1 2 n of solids applied; for NO ; million Btu heat input per day). x

ERC = the daily quantity of federally enforceable emission reduction credits (ERCs) from sources of either VOC or NO emissions, certified by the Department under 310 CMR 7.00 x Appendix B(3).

1. 2. In addition to 310 CMR 7.00 Appendix B(4)(e)1., in order to comply with a bubble for VOC the total combined actual emissions, over a calendar month, from all emission units in the bubble must be less than the baseline emissions determined by the following equation:

Appendix B: continued

BE = (ER x CU x H) + (ERC x D)

Where:

BE = the baseline emissions from the facility in pounds per month. Baseline emissions for a bubble is the sum of the baseline emissions for all emission units in the bubble.

ER = Emission rate specified in terms of mass emission per unit of production or throughput (e.g. pounds of VOC per gallon of solids applied) representative of the 1990 emission rate, the future allowable emission rate as determined by the SIP, 310 CMR 7.18 or other federally enforceable emission rate, whichever is lowest.

CU = Average hourly capacity utilization (e.g. gallons of solids applied per hour).

H = average number of hours of operation per month.

D = Number of days per month that the ERC generating facility operates.

ERC = the daily quantity of federally enforceable ERCs from emission units emitting VOC certified by the Department under 310 CMR 7.00 Appendix B(3).

1. 3. In order to determine the average hourly Capacity Utilization (CU) and average number of hours of operation per month (H) in 310 CMR 7.00 Appendix B(4)(e)2., the facility shall average the CU rate and monthly H over the two calendar year period immediately preceding the date of the application for a bubble. Documentation in sufficient detail to enable Department staff to replicate the determination of CU and H must be submitted with the application.
2. 4. Should it be determined that the two year historical production information required to determine CU and H is not representative of normal historical production for the facility, the applicant may submit suitable and sufficient documentation to demonstrate to the Department that two alternative consecutive years within the five year period preceding the application should be used to determine CU and H for the facility. The Department shall have final approval of the use of alternative historical production information.

3. 5. Should it be determined for a NO bubble that a 24 hour averaging period is x insufficient to respond to the production demands at a specific facility, a facility operator or controller may submit suitable and sufficient documentation to demonstrate to the Department that an averaging period of up to and including 30 days for the bubble is more feasible given the production process and product requirements of the specific facility. Applications for a bubble with an averaging period of greater than 24 hours shall include a commitment from the facility to maintain a daily "cap" on maximum total emissions. The cap shall be determined according to the following equation:

   Cap = (A x EI x H) + (A X EI X H) + (....) 1 2 2 2

+ (A x EI x H) + ERC N n

Where: Cap = The emission cap for the facility in pounds per day. The emission cap for a bubble is the sum of the emission caps for all emission units in the bubble.

A , A ,...A = The emission rate for each emission unit specified in terms of mass 1 2 n emission per unit of production (e.g. pounds of NO per million Btu) representative x of the 1990 emission rate, the future allowable emission rate as determined by the SIP, 310 CMR 7.19 or other federally enforceable emission rate, whichever is lowest.

Appendix B: continued

EI , EI ,...EI = The maximum energy input capacity for each emission unit in million 1 2 n Btu per hour.

H = 24 hours per day.

ERC = the daily quantity of federally enforceable ERCs from emission units emitting xNO certified by the Department under 310 CMR 7.00 Appendix B(3).

1. (f) Department Review of a Request to Bubble. The following conditions apply to bubble applications;

   1. 1. The Department shall review each application for a bubble in a complete submittal of an emission control plan pursuant to 310 CMR 7.18(20) and 7.19(3).
   2. 2. An approved emissions bubble shall be in effect for a period of no more than five years from the date of Department final approval. However, for facilities subject to 310 CMR 7.00 Appendix C, with five year terms or less, the expiration date of the bubble shall be identical with the expiration date of the operating permit. At least nine months prior to the expiration of the bubble, the facility must reapply for permission to bubble. The Department shall review the bubble for compliance and may either renew the bubble or allow the bubble to expire. Should the bubble expire, the facility that held the bubble shall return to complying with applicable regulations based on continuous compliance for each regulated emission unit which was formerly in the bubble. Bubbles that do not already contain an emissions cap will not be required to take one as part of the renewal. For facilities with existing caps, new caps will not be recalculated.
   3. 3. The emission limitations in a bubble approval may be specific for each emission unit or may be expressed as a multi-emission unit average.

2. (g) Compliance Determination.

   1. 1. The Department shall determine compliance with the terms and conditions of the bubble through any means the Department judges to be adequate based upon the criteria listed below:

      1. a. The provisions and emission limitations of any approved bubble shall be incorporated in the approval of the emission control plan submitted under 310 CMR 7.18(20) or 7.19(3).
      2. b. Said emission control plan approval shall include, but not be limited to source specific emission limitation (e.g. pounds of VOC per gallon of solids applied; pounds of NO per million Btu heat input) and emission cap (e.g. pounds of VOC per month; x pounds of NO per day) limits where applicable, record keeping requirements and test x methods used to determine compliance.
      3. c. Compliance with this approval shall be determined utilizing Department and EPA approved test methods and/or continuous emissions monitoring system, including but not limited to those methods referenced in 310 CMR 7.13, 7.14, 7.18(2), 7.19(13) as appropriate for the facility and emissions units.

      4. d. In order for a facility to demonstrate compliance with the emission limitations of a bubble it is required that records shall be maintained. Records shall be kept on a daily basis for each emissions unit in the bubble and shall be specific enough to demonstrate compliance with the emission limits of the bubble for the facility as a whole. Record keeping shall include, but not be limited to:

         1. i. Process information and identification of equipment;
         2. ii. For surface coating operations, coating formulation information including the name of the coating, the color of the coating, the identification number for the coating as it relates to coating consumption information, the density of the coating, the total VOC contained in the coating by weight percent, the solids content of the coating as a volume percent, the percent by weight of exempt solvents as identified in the definition of VOC at 310 CMR 7.00 and the formulation of the diluents used or mixed in the coating (pounds VOC per gallon of diluent);
         3. iii. For surface coating, daily coating/diluent consumption rate for each emissions unit in the bubble. Daily total of solvents used in clean-up.

Appendix B: continued

1. iv. For bubbles to comply with 310 CMR 7.19, comply with the recordkeeping requirements contained in 310 CMR 7.19(13)(d).
2. v. Daily emissions or emission rates calculated in a manner to be consistent with the compliance averaging period approved for the facility.
3. vi. Any other information determined to be necessary by the Department to demonstrate compliance.
4. 2. Records shall be kept at the facility and maintained for a five-year period. The records must be accessible for review by the Department or EPA.
5. 3. Persons holding an approved bubble plan must submit to the appropriate regional office of the Department quarterly (January - March, April - June, July - September, October - December) summary calculations based on daily emission calculations of 1) actual emissions, 2) allowable emissions, 3) whether actual emission exceeded allowable emissions over the reporting period, and 4) whether the facility was in compliance with the emission baseline cap for each day/month. Said submittal must be made 30 days after the end of the quarter for which the report is being prepared.

6. 4. Any exceedance of the bubble emissions limitations must be recorded and reported to include the date of exceedance and quantity of excess emissions and reported to the

   th

Department by the 30 of the month following the close of the calendar quarter in which the exceedance occurred.

1. (5) Enforcement.

   1. (a) The Department shall enforce the provisions of 310 CMR 7.00: Appendix B under applicable law and regulations.
   2. (b) For purposes of 310 CMR 7.00: Appendix B(3), a violation of the emission limitation provisions of any permit issued or modified to reflect the creation of an emission reduction credit shall be enforced at the point of ERC creation.

2. (6) Public Participation. The following conditions apply to applications under 310 CMR 7.00: Appendix B:

   1. (a) For persons applying under 310 CMR 7.00: Appendix B(4) to comply with either 310 CMR 7.18 or 7.19, the ECP approved by the Department must be approved by EPA as a SIP revision if EPA has not approved 310 CMR 7.00 Appendix B(4) as a part of the Massachusetts SIP.
   2. (b) For persons applying for Emission Reduction Credit under 310 CMR 7.00: Appendix B(3), the approval issued by the Department must be approved by EPA as a SIP revision if EPA has not approved 310 CMR 7.00: Appendix B(3) as a part of the Massachusetts SIP.
   3. (c) The Department shall notify all applicants as to any administrative or technical deficiencies in the application or information submitted.

   4. (d) For each Emission Reduction Credit (ERC) application submitted pursuant to 310 CMR 7.00: Appendix B(3) or (4), the Department shall:

      1. 1. Make a proposed decision as to whether the application should be approved, approved with conditions, or a decision that the application should be disapproved.
      2. 2. Provide a 30-day comment period for submittal of public comment.

      3. 3. Post on a public website identified by the Department (which may be the Department's own website), for the duration of the public comment period, the following:

         1. a. A notice of availability of the Department's proposed decision to approve or deny the ERC application and information on how to submit public comment;
         2. b. The Department's proposed decision to approve or deny the ERC application; and
         3. c. Information on how to access the administrative record for the Department's proposed decision on whether to approve or deny the ERC application.
      4. 4. Send a copy of the notice required under 310 CMR 7.00: Appendix B(6)(d)3.a. to EPA.

Appendix B: continued

1. 5. Consider all public comments in making a final decision whether or not to approve the application. The Department shall make all comments available for public inspection in the same location(s) where the Department made available information relating to the proposed approval under 310 CMR 7.00: Appendix B(3) or (4).
2. 6. Make a final decision as to whether the plan approval application should be approved, approved with conditions, or disapproved.
3. 7. Notify the applicant and the EPA in writing of the final decision and make such notification available for public inspection at the same location where the Department made available information and public comments relating to the source.

4. (7) Greenhouse Gas Credit Banking and Trading.

   1. (a) Introduction and Statement of Purpose. The goal of the program set forth in 310 CMR 7.00: Appendix B(7) is to reduce, avoid or sequester emissions of greenhouse gas
   2. (GHG) in order for affected facilities as defined in 310 CMR 7.29 (“affected facilities”) to use GHG Credits for compliance with the applicable provisions of 310 CMR 7.29(5)(a)5.
   3. (b) Definitions. The definitions in 310 CMR 7.00 apply to 310 CMR 7.00: Appendix B(7). However, the following terms have the following meanings when they appear in 310 CMR 7.00: Appendix B(7). Where a term defined in 310 CMR 7.00 definitions also appears in 310 CMR 7.00: Appendix B(7)(b), the definition in 310 CMR 7.00: Appendix B(7)(b) controls.

Additional means GHG emission reductions, avoided emissions, or sequestered emissions that are not required by local, state or federal law or regulation, or as part of a local, state or federal permit, plan, or plan approval, agreement, administrative or judicial order, or as part of an enforcement action (including such laws, regulations, permits, plans, plan approvals, agreements, orders or actions taken to reduce other pollutants) at the time of submittal of a certification application. A requirement to obtain a permit or plan approval under local, state, or federal law solely for the purpose of constructing, installing, or operating a voluntary emission reduction, avoided emission, or sequestered emission project shall not be considered when determining whether or not such project is additional.

Afforestation means the conversion of land that has been in a non-forested state for at least the ten years prior to the filing of an initial application for GHG Credit certification to a forested state.

Avoided Emissions means emissions of a GHG that do not occur and which would have otherwise occurred if not for specific projects undertaken.

Cancel, Cancelled, or Cancellation means transferring an allowance or credit to a cancellation account, or otherwise terminating such allowance or credit in a manner consistent with its program of origin, to prevent subsequent use in a regulatory or voluntary program, or use for any purpose other than compliance with the CO emissions standards of 310 CMR 7.29. 2

Cancellation Account means the account established in a Kyoto Protocol signatory country for purposes of canceling allowances. Such account will not be established by the Department.

Carbon Dioxide Equivalent or CO means the weight of a quantity of a GHG multiplied by its 2e Global Warming Potential.

Certification means the process of reviewing and conditionally approving a quantity of emission reductions, avoided emissions or sequestered emissions as GHG Credits.

Clean Development Mechanism, or CDM, means a mechanism, created under the Kyoto Protocol, that allows for the creation and use of CDM CERs to demonstrate compliance with emissions targets established by the Kyoto Protocol.

Clean Development Mechanism Certified Emissions Reduction, or CDM CER, means a greenhouse gas emissions offset currency created for projects that reduce, avoid, or sequester emissions of greenhouse gases in developing countries. CDM CERs are issued by the Executive Board of the Clean Development Mechanism, and are usable for meeting country-specific greenhouse gas emissions targets established by the Kyoto Protocol.

Appendix B: continued

Coastal Waters means the waters within the 12-mile limit pursuant to the Tariff Act of 1930 19 USC § 1401.

Energy Conservation Measure means an action that reduces demand for electricity. An Energy Conservation Measure means the installation or implementation of one or more of the following measures:

1. (a) the design, acquisition, and installation of projects which result in energy savings, or
2. (b) the modification of maintenance and operating procedures in a building or facility which result in energy savings, or
3. (c) the installation, replacement, or modification of equipment, fixtures, or materials in a building or facility which reduce energy consumption, and include, but are not limited to, modifications to windows and doors; caulking and weather-stripping, insulation; automatic energy control systems; hot water systems; equipment required to operate steam, hydraulic, and ventilation systems; plant and distribution system modifications including replacement of burners, furnaces or boilers; devices for modifying fuel openings; electrical or mechanical furnace ignition stems; utility plant system conversions; replacement or modification of lighting fixtures; and energy recovery systems.

Energy Conservation Measures do not include reductions in labor, load shifting, or measures that do not reduce energy use directly.

Enforceable means enforceable by the Department.

European Union Emissions Trading Scheme or EU ETS means a multi-country, multi-sector greenhouse gas emission trading scheme implemented in 2005 by the European Commission to control emissions of greenhouse gases.

European Union Emissions Trading Scheme Phase II Allowance or EU ETS Phase II Allowance means an allowance that can be used during the second trading period of the EU ETS, which lasts from 2008-2012, and can be used to demonstrate compliance with emission reduction targets established by the European Commission.

GHG Credit means a credit based on an amount of emission reductions, avoided emissions or sequestered emissions of a GHG. One GHG Credit has an assigned value of one ton of carbon dioxide equivalent. GHG Credits shall be expressed in whole tons. When certifying or verifying GHG Credits, the number of GHG Credits is rounded down for decimals less than 0.5 and rounded up for decimals of 0.5 or greater.

GHG Expendable Trust means the trust established pursuant to 801 CMR 50.00 for the purpose of providing a separate segregated interest-bearing account for the receipt of payments made pursuant to 310 CMR 7.00: Appendix B(7)(d)5.

GHG Registry means the database of Massachusetts GHG Credits that have been certified, verified, voided or used.

Global Warming Potential or GWP means the ratio of the global heat trapping effect, direct and indirect, of one mass unit of a gas to that of the same mass unit of carbon dioxide over 100 years. In implementing 310 CMR 7.00: Appendix B(7), the Department shall utilize the GHG GWPs, as published by the Intergovernmental Panel on Climate Change (IPCC), at the time of submittal of a certification application.

Greenhouse Gas or GHG means any of the gases for which a GWP is listed by the Intergovernmental Panel on Climate Change.

Kyoto Protocol means an international commitment, adopted in Kyoto on December 11 1997, to stabilize greenhouse gas emissions.

Appendix B: continued

Leakage means displacement of reduced, avoided, or sequestered GHG emissions to an area or location outside of the boundary of a project which reduced, avoided or sequestered the GHG emissions.

Permanent means that GHG emission reductions, avoided emissions, or sequestered emissions implemented for the purpose of generating GHG Credits must be assured for the life of the corresponding GHG Credits.

Phase II of the EU ETS means the second trading period of the EU ETS, which lasts from 2008- 2012.

Real means actual.

Renewable Energy Generation Measure means an energy supply-side measure using sources that are essentially inexhaustible or regenerative. Renewable sources of energy include, but are not limited to, wood, geothermal, wind, photovoltaic and solar thermal energy.

Sequestered Emissions means carbon that has successfully been captured and securely stored that would have otherwise been emitted to or remained in the atmosphere.

Verifiable means that emission reductions, avoided emissions or sequestered emissions can be determined through replicable (as defined in 310 CMR 7.00: Appendix B(2)) methods which are acceptable to the Department.

Verification means the process of determining the extent to which certified GHG emission reductions, avoided emissions or sequestered emissions actually occurred.

1. (c) Applicability.

   1. 1. Entry into this GHG Banking and Trading Program is voluntary.
   2. 2. 310 CMR 7.00: Appendix B(7) applies to affected facilities and any other person applying for certification or verification of GHG Credits.
   3. 3. GHG Credits certified or verified under 310 CMR 7.00: Appendix B(7) may only be used to satisfy the requirements of 310 CMR 7.29(5)(a)5., except as provided in 310 CMR 7:00: Appendix B(7)(h).
   4. 4. Applications for certification or verification of GHG Credits pursuant to 310 CMR 7.00: Appendix B(7)(e) may be submitted by any person.
   5. 5. Applications to verify and use EU ETS Phase II Allowances and CDM CERs pursuant to 310 CMR 7.00: Appendix B(7)(i) may be submitted only by affected facilities.

2. (d) Creation of GHG Credits.

   1. 1. GHG Credits may be created by projects which reduce emissions, avoid emissions, or sequester emissions. Examples include, but are not limited to: landfill gas combustion; sulfur hexafluoride (SF ) capture; afforestation; natural gas, oil and propane 6 end-use efficiency; methane capture from farming operations; stationary, area and mobile source projects; renewable energy projects; and energy conservation measures.
   2. 2. The following are not eligible for certification as GHG Credits: nuclear power generation, under-water and under-ground sequestration, and over-compliance with the cap and rate limitations in 310 CMR 7.29 by affected facilities.

   3. 3. Except as allowed pursuant to 310 CMR 7.00: Appendix B(7)(d)4, emission reduction, avoided emission or sequestered emission projects shall be located within the geographic limits of:

      1. a. Connecticut, Delaware, Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Rhode Island, Vermont, or the coastal waters thereof; or,
      2. b. The United States, or the coastal waters thereof, not including those regions specified in 310 CMR 7.00: Appendix B(7)(d)3.a.

Appendix B: continued

1. 4. Offset Trigger Price.

   1. a. The Department shall establish an offset trigger price for 2006, 2007, and 2008. The offset trigger price for calendar year 2006 shall be $6.50 per ton of CO . For 2e each calendar year after 2006, until such time as the offset trigger price is exceeded,

      st

   the Department shall publish the new offset trigger price by January 31 , which shall be equal to the previous year’s offset trigger price adjusted up or down according to the previous year’s Consumer Price Index. b. By February 15, 2007, the Department shall determine whether the offset trigger price for the previous calendar year was exceeded, or whether there are insufficient GHG Credits available for purchase at or below the offset trigger price for the previous calendar year in the geographic region specified in 310 CMR 7.00: Appendix B(7)(d)3. In determining whether the offset trigger price for the previous calendar year was exceeded, the Department may consider the average calendar year price of GHG Credits or of applied-for GHG Credits for the previous year, or any other relevant information. c. Notwithstanding 310 CMR 7.00: Appendix B(7)(d)3., if the Department determines by February 15, 2007 that the offset trigger price for the previous calendar year was exceeded, or that there are insufficient GHG Credits available for purchase at or below the offset trigger price for the previous calendar year in the geographic region specified in 310 CMR 7.00: Appendix B(7)(d)3., then, for all subsequent years, applicants may apply for certification and verification of projects that occur anywhere on Earth, and certification and verification of greenhouse gas allowances and credits from any allowance or credit system. d. By June 1, 2008, the Department shall determine whether there are insufficient GHG Credits available for purchase at or below the offset trigger price in the geographic regions specified in 310 CMR 7.00: Appendix B(7)(d)3. In determining whether there are insufficient GHG Credits available for purchase at or below the offset trigger price, the Department may consider the average price of GHG Credits or applied-for GHG Credits, or any other relevant information. Notwithstanding 310 CMR 7.00: Appendix B(7)(d)3., if the Department determines by June 1, 2008 that there are insufficient GHG Credits available for purchase at or below the offset trigger price in the geographic regions specified in 310 CMR 7.00: Appendix B(7)(d)3., then, pursuant to 310 CMR 7.00: Appendix B(7)(i), affected facilities may apply to verify and use EU ETS Phase II Allowances and CDM CERs that are eligible for use under Phase II of the EU ETS.

2. 5. Trust Trigger Price.

   1. a. The Department shall establish a trust trigger price for 2006, 2007, and 2008. The trust trigger price for calendar year 2006 shall be $10.00 per ton of CO . For 2e each calendar year after 2006, the Department shall publish the new trust trigger price

      st

   by January 31 , which shall be equal to the previous year’s trust trigger price adjusted up or down according to the previous year’s Consumer Price Index plus 2%. b. By February 15, 2007, the Department shall determine whether the trust trigger price for the previous calendar year was exceeded. In making this determination, the Department may consider the average calendar year price of GHG Credits, of applied-for GHG Credits, or of projects funded or credits or allowances purchased by the GHG Expendable Trust for the previous year, or any other relevant information. c. Notwithstanding 310 CMR 7.00: Appendix B(7)(d)3. and 4., if the Department determines by February 15, 2007 that the trust trigger price for the previous calendar year was exceeded, then, to demonstrate compliance with 310 CMR 7.29(5)(a)5., affected facilities may pay into the GHG Expendable Trust at the price established pursuant to 310 CMR 7.00: Appendix B(7)(d)5.a. to offset all or a portion of emissions above the historical actual emissions or excess emissions pursuant to 310 CMR 7.29(5)(a)5.c. and d., so that a combination of GHG Credits and payments into the GHG Expendable Trust equals emissions above historical actual emissions plus excess emissions.

Appendix B: continued

1. 6. Notwithstanding 310 CMR 7.00: Appendix B(7)(d)3., 4., and 5., if, at any time prior to September 1, 2009, the Commissioner determines that the price of GHG Credits or of applied-for GHG Credits substantially exceeds either of the price thresholds established in 310 CMR 7.00: Appendix B(7)(d)4. or 5., or if insufficient GHG Credits are available, then the Commissioner may, after public notice in the Environmental Monitor, and an opportunity for public comment: expand the geographic scope; allow payments into the GHG Expendable Trust at the rate set forth in 310 CMR 7.00: Appendix B(7)(d)5; or reduce the annual average CO tonnage requirements for certification of projects under 2e 310 CMR 7.00: Appendix B(7)(e)3. If the geographic scope is expanded pursuant to 310 CMR 7.00: Appendix B(7)(d)6., then applicants for projects that occur outside of the geographic limits of the United States or the coastal waters thereof shall follow the procedures in 310 CMR 7.00: Appendix B(7)(i). This provision shall have no effect on and after September 1, 2009.
2. 7. In order to be certified or verified as GHG Credits pursuant to 310 CMR 7.00: Appendix B(7), emission reductions, avoided emissions, or sequestered emissions shall be real, additional, verifiable, permanent, and enforceable and occur on or after January 1, 2006.
3. 8. In the case of sequestered emissions, in order for a GHG Credit to be permanent, the owner shall, at a minimum, place the land within the sequestration project boundary under a legally binding instrument, acceptable to the Department, such that the sequestered emissions remain captured and securely stored in perpetuity.
4. 9. In order to be certified or verified as GHG Credits pursuant to 310 CMR 7.00: Appendix B(7), emission reductions, avoided emissions, or sequestered emissions shall be generated only by projects built and generating energy (in the case of certain avoided emissions), or built and in use, or installed and operational (in the case of emission reductions or sequestered emissions) on or after January 1, 2006.
5. 10. Except as provided in 310 CMR 7.00: Appendix B(7)(h), GHG Credits may be created for emissions reduced, avoided, or sequestered up to and including December 31, 2008, provided administratively complete applications for certification and verification are submitted to the Department no later than March 31, 2009. The Department shall have sole discretion to determine whether applications for certification and verification of GHG Credits are administratively complete.

6. (e) Procedure For Certification and Verification of Emission Reductions, Avoided Emissions, or Sequestered Emissions that Occur Within the Geographic Limits of the United States and the Coastal Waters Thereof as GHG Credits.

   1. 1. An application for certification of GHG Credits may be submitted to the Department in advance of the time when the emission reduction, avoided emission, or sequestered emission actually occurs (prospective certification) or after the emission reduction, avoided emission, or sequestered emission has actually occurred (retrospective certification).
   2. 2. In order for GHG Credits to be eligible for verification, an application for verification of GHG Credits shall be submitted to the Department within two calendar years after the end of the calendar year in which the emission reduction, avoided emission, or sequestered emission actually occurred. Applicants may apply for verification a maximum of two times per calendar year per approved certification.
   3. 3. For project-based emission reductions, avoided emissions, or sequestered emissions located within the geographic scope set forth in 310 CMR 7.00: Appendix B(7)(d)3.a., only those projects which generate an annual average over the period applied for of 5,000 or more tons CO , as calculated under 310 CMR 7.00: Appendix B(7)(d), are eligible 2e to be certified as GHG Credits. For project-based emission reductions, avoided emissions, or sequestered emissions located within the geographic scope set forth in 310 CMR 7.00: Appendix B(7)(d)3.b., only those projects which generate an annual average over the period applied for of 20,000 or more tons CO , as calculated under 2e 310 CMR 7.00: Appendix B(7)(d), are eligible to be certified as GHG Credits.

   4. 4. Application Procedures for projects.

      1. a. Applications are required for certification and verification of GHG Credits from emissions reduction, avoided emission and sequestration projects.

Appendix B: continued

1. b. The GHG Credit application shall be submitted on a form supplied by the Department and shall include but not be limited to: a complete description of the project; a quantification protocol that details the calculation method for the quantification of pre- and post-project emissions for emission reductions, quantity of avoided emissions, or quantity of sequestered emissions; and a proposed method for determining, monitoring and assuring compliance.
2. c. GHG Credit applications shall express emission reductions, avoided emissions, and or sequestered emissions in whole tons of CO . When certifying or verifying 2e GHG Credits, the number of GHG Credits is rounded down for decimals less than 0.5 and rounded up for decimals of 0.5 or greater.
3. d. GHG Credit applications shall contain sufficient information to allow the Department to evaluate each emission reduction, avoided emission or sequestered emission consistent with the requirements of 310 CMR 7.00: Appendix B(7). Where applicable, the applicant shall specify the best management practice used to determine an emissions baseline.
4. e. GHG Credit applications shall be submitted by and bear the signature of a responsible official having the legal authority to bind the applicant.
5. f. GHG Credit applications shall comply with provisions of 310 CMR 4.00 et seq. for fees and permit procedures as applicable.

6. g. Concurrent participation in other registries and certification programs.

   1. i. If an applicant has submitted information relative to the emission reductions, avoided emissions, or sequestered emissions for which the applicant is seeking certification under 310 CMR 7.00: Appendix B(7) to any other certification system, registry or inventory, then the applicant shall submit a copy of such information with its application for certification of GHG Credit in Massachusetts. The applicant shall state the status of its submittal to such other certification system, registry or inventory.
   2. ii. If an applicant for GHG Credit fails to comply with 310 CMR 7.00: Appendix B(7)(e)4.g.i., then the Department may deny any GHG Credit applied for and void any GHG Credits that may have been approved. GHG Credits shall be voided in cases where the GHG Credit is found to have been used for a purpose other than those specified in 310 CMR 7.00: Appendix B(7).
7. h. GHG Credit certification and verification applications shall contain a description of potential project leakage, and describe how such leakage was or will be monitored and avoided. The Department shall void GHG Credits to the extent of any leakage that has been identified.
8. i. GHG Credit applications shall document the negotiated or anticipated price per ton of GHG Credit applied for.

9. 6. Conditions of GHG Credit Certification and Verification Approvals.

   1. a. The Department may approve, approve with conditions, or deny GHG Credit applications.
   2. b. The Department may require applicants to implement compliance assurance methods such as testing, monitoring, recordkeeping and reporting as part of the GHG Credit certification and verification approval.
   3. c. The Department may consider scientific uncertainty and the extent to which a project may be harmful to the environment or public health when certifying or verifying GHG Credits.

10. (f) Public participation procedures for certification and verification applications pursuant to 310 CMR 7:00: Appendix B(7).

    1. 1. The Department shall publish, at the applicant’s expense, a notice of public comment on a proposed approval, conditional approval, or disapproval. The Department will allow a 30-day public comment period following publication of the notice, and may hold a public hearing. After the close of the public comment period, the Department will issue a final decision.
    2. 2. 310 CMR 7.00: Appendix B(7)(f) shall apply to applications for certification and verification pursuant to 310 CMR 7.00: Appendix B(7), instead of the procedures under 310 CMR 7.00: Appendix B(6).
    3. 3. The public participation procedures of 310 CMR 7.00: Appendix B(7)(f) and 310 CMR 7.00: Appendix B(6) shall not apply to applications for use pursuant to 310 CMR 7.00: Appendix B(7)(I)5.

Appendix B: continued

1. (g) Use and Purchase of GHG Credits.

   1. 1. To the extent that affected facilities use GHG Credits to comply with 310 CMR 7.29(5)(a)5., only GHG Credits verified under 310 CMR 7.00: Appendix B(7) may be used.
   2. 2. GHG Credits that have been used to satisfy any GHG liability or requirement other than 310 CMR 7.29, with the exception of requirements to disclose environmental and other attributes of electricity generation, shall not be eligible for use to comply with the requirements of 310 CMR 7.29.
   3. 3. Any person who purchases a GHG Credit from any source shall report the price paid per GHG Credit to the Department within 30 days of purchase.
   4. 5. Nothing in 310 CMR 7.00: Appendix B(7) or 310 CMR 7.29(5)(a)5. shall be construed to limit the authority of the Department to terminate, void, or limit GHG Credits that have been certified or verified.
   5. 6. If the Department determines that any emission reductions, avoided emissions, or sequestered emissions used to generate GHG Credits are not real, additional, verifiable, permanent, or enforceable as defined in 310 CMR 7.00: Appendix B(7)(b), such GHG Credits shall become void.
   6. 7. Any affected facility using voided GHG Credits shall replace the voided GHG Credits with an equivalent amount of valid GHG Credits and shall demonstrate compliance with this provision within one year of the date that the Department determines that such GHG Credits are void.
   7. 8. Violations of the requirements, for purposes of 310 CMR 7.00: Appendix B(7), may be enforced against the affected facility, any person who applied for certification or verification of GHG Credits, or any combination thereof. Nothing in 310 CMR 7.00: Appendix B(7) shall limit the ability of the Department to take enforcement action for violations of 310 CMR 7.29 or 310 CMR 7.00: Appendix B(7).

2. (h) Exchange of GHG Credits for CO Budget Trading Program CO Allowances. 2 2

   1. 1. Eligibility. GHG Credits shall be eligible for exchange with CO Budget Trading 2 Program CO Allowances provided: 2

      1. a. The project from which the GHG Credits were derived is not an offset project type listed under 310 CMR 7.70(10)(c)1.a.
      2. b. The GHG Credits were not created from allowances or credits from another carbon constraining program.
      3. c. An administratively complete application for certification of GHG Credits was submitted to the Department no later than January 25, 2008. The Department shall have sole discretion to determine whether an application for certification of GHG Credits is administratively complete.

   2. 2. Verification Deadline. GHG Credits may be created for emissions reduced, avoided, or sequestered up to and including December 31, 2012, provided:

      1. a. The GHG Credits meet the requirements of 310 CMR 7.00: Appendix B(7)(h)1.; and
      2. b. An administratively complete application for verification is submitted to the Department no later than March 31, 2013. The Department shall have sole discretion to determine whether an application for verification of GHG Credits is administratively complete.

   3. 3. Exchange.

      1. a. At any time after January 1, 2009 and prior to December 1, 2013, any person may apply to the Department for CO Budget Trading Program CO Allowances in 2 2 exchange for GHG Credits that meet the requirements of 310 CMR 7.00: Appendix B(7)(h)1. and 2. and which have been verified by the Department pursuant to 310 CMR 7.00: Appendix B(7)(e) and (f).
      2. b. The Department shall exchange one CO Budget Trading Program CO allowance 2 2 set aside pursuant to 310 CMR 7.70(5)(c)1.a. for every two GHG Credits provided to the Department pursuant to 310 CMR 7.00: Appendix B(7)(h)3.a.
      3. c. The Department shall retire all GHG Credits exchanged for CO Budget Trading 2 Program CO Allowances. 2

3. (i) Procedures for Verification and Use of EU ETS Phase II Allowances and CDM CERs that are Eligible for Use Under Phase II of the EU ETS.

   1. 1. Eligibility. Provided the geographic scope is expanded beyond the United States and its coastal waters pursuant to 310 CMR 7.00: Appendix B(7)(d)4. or 6., the following are eligible to be used to demonstrate compliance with the CO emissions standards of 2 310 CMR 7.29(5)(a)5. provided they have been verified.

Appendix B: continued

1. a. EU ETS Phase II allowances; and,

2. b. CDM CERs provided that:

   1. i. The CDM CERs are acceptable and valid for use in Phase II of the European Union Emissions Trading Scheme at the time of application for verification;
   2. ii. The CDM CERs were not created for a project type listed under 310 CMR 7.00: Appendix B(7)(d)2.; and
   3. iii. The CDM CERs are permanent.
3. 2. For purposes of 310 CMR 7.00: Appendix B(7), EU ETS Phase II Allowances and CDM CERs that are eligible for use under Phase II of the EU ETS are presumed to be certified GHG emission reductions, avoided emissions, or sequestered emissions.

4. 3. Applications for verification shall be submitted in a form determined by the Department and shall include but not be limited to:

   1. a. Name of the allowances and credits;
   2. b. Name of the regulatory scheme and issuing body of the allowances or credits;
   3. c. Where applicable, the type of project for which the CDM CERs were created;
   4. d. Serial numbers of the allowances and credits;
   5. e. Total tons of CO represented by the allowances and credits; 2e
   6. f. Demonstration that the CDM CERs are acceptable and valid for use with Phase II of the EU ETS at the time of application for verification;
   7. g. Identification of the owner of the allowances and credits;
   8. h. Certification by the relevant regulatory body that the allowances and credits have been issued;
   9. i. The price paid, or to be paid, for such allowances or credits.
5. 4. Applications for verification shall be for not less than 20,000 tons CO , or 18,144 2e metric tons CO . 2e

6. 5. Applications to use verified EU ETS Phase II Allowances and verified eligible CDM CERs for compliance with the CO emission standards in 310 CMR 7.29(5)(a)5., shall 2 be submitted in a form determined by the Department and shall include but not be limited to a demonstration and certification that the allowances or credits were cancelled to prevent their use for any other regulatory or voluntary purposes other than for compliance with 310 CMR 7.29(5)(a)5.

   1. a. This demonstration shall include but not be limited to:

      1. i. Evidence that the allowance or credit was actually purchased;
      2. ii. A legal document or other written statement issued by the relevant regulatory body that the allowances and credits have been cancelled; and,
      3. iii. Evidence that the allowance or credit has not and cannot be used for any other regulatory or voluntary program.
   2. b. The certification statement shall be signed under the pains and penalties of perjury by a Responsible Official of the affected facility and the entity that cancelled the allowance or credit (if not the affected facility).

7. 6. Application Deadlines.

   1. a. Administratively complete applications submitted pursuant to 310 CMR 7.00: Appendix B(7)(i)3. shall be submitted to the Department no later than March 31, 2009.
   2. b. Administratively complete applications submitted pursuant to 310 CMR 7.00: Appendix B(7)(i)5. shall be submitted to the Department no later than June 30, 2009.
   3. c. The Department shall have sole discretion to determine whether applications submitted pursuant to 310 CMR 7.00: Appendix B(7)(i)3. or 5. are administratively complete.
8. 7. The Department will make a finding regarding the administrative completeness for applications submitted pursuant to 310 CMR 7.00: Appendix B(7)(i) within 15 business days of submittal, and will make a consistency determination within 30 days of its finding that an application is administratively complete.
9. 8. The Department may approve, approve with conditions, or deny applications submitted pursuant to 310 CMR 7.00: Appendix B(7)(i)3. or 5.
10. 9. Verified cancelled allowances or credits are not GHG Credits under 310 CMR 7.00: Appendix B(7) and cannot be transferred, exchanged pursuant to 310 CMR 7.00: Appendix B(7)(h), or used for any purpose other than compliance with the CO emissions 2 standards of 310 CMR 7.29, or by any entity other than the affected facility that submitted an application pursuant to 310 CMR 7.00: Appendix B(7)(i)3. and 5.

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APPENDIX C: OPERATING PERMIT AND COMPLIANCE PROGRAM

1. (1) Definitions: Terms used in 310 CMR 7.00: Appendix C are defined at 310 CMR 7.00: Definitions or in 310 CMR 7.00: Appendix C. Where a term is defined in both 310 CMR 7.00: Definitions and in 310 CMR 7.00: Appendix C, the definition in 310 CMR 7.00: Appendix C is applicable.

Affected Source means a source that includes one or more affected units.

Affected State means any state:

1. (a) Whose air quality may be affected and is contiguous to Massachusetts; or
2. (b) Which is located within 50 miles of a facility subject to the operating permit and compliance program in Massachusetts.

Affected Unit means a fossil fuel fired combustion device subject to the emission reduction requirements or limitations under Title IV (Acid Rain) of 42 U.S.C. 7401.

Allowance means an authorization by the Administrator of the United States Environmental Protection Agency (EPA) under the Acid Rain Program, to emit up to one ton of sulfur dioxide during or after a specified calendar year.

Applicable Requirement means all of the following as they apply to emissions units or control equipment in a facility subject to the requirements of 310 CMR 7.00: Appendix C. This includes requirements that have been promulgated or approved by EPA through rule making at the time of issuance but have future-effective compliance dates:

1. (a) Any standard or other requirement provided for in the applicable implementation plan, contained at 310 CMR 7.00 approved or promulgated by EPA through rulemaking under 42 U.S.C. 7401, Title I that implements the relevant requirements of 42 U.S.C. 7401, including any revisions to that plan promulgated in 40 CFR Part 52;
2. (b) Any term or condition of any approval issued by the Department pursuant to any regulation under 310 CMR 7.00 which has been approved or promulgated through rulemaking under 42 U.S.C. 7401, Title I, including parts C or D (310 CMR 7.00: Appendix A or 40 CFR 52.21 PSD approvals), of 42 U.S.C. 7401;
3. (c) Any standard or other requirement under 42 U.S.C. 7401, The Clean Air Act, § 111, including § 111(d) (New Source Performance Standards (NSPS));
4. (d) Any standard or other requirement under 42 U.S.C. 7401, The Clean Air Act, § 112, including any requirement concerning accident prevention under 42 U.S.C. 7401, The Clean Air Act, § 112(r)(7) (National Emission Standard for Hazardous Air Pollutants (NESHAPS));
5. (e) Any standard or other requirement of the acid rain program under Title IV of 42 U.S.C. 7401 or the regulations promulgated thereunder;
6. (f) Any requirement(s) established pursuant to 42 U.S.C. 7401, § 504(b) (monitoring and analysis) or § 114(a)(3) (enhanced monitoring 40 CFR Part 64 regulations);
7. (g) Any standard or other requirement governing solid waste incineration, under 42 U.S.C. 7401, The Clean Air Act, § 129;
8. (h) Any standard or other requirement for consumer and commercial products, under 42 U.S.C. 7401, The Clean Air Act § 183(e);
9. (i) Any standard or other requirement for tank vessels under 42 U.S.C. 7401, The Clean Air Act, § 183(f);
10. (j) Any standard or other requirement of the program to control air pollution from outer continental shelf sources, under 42 U.S.C. 7401, § 328;
11. (k) Any standard or other requirement of the regulations promulgated to protect stratospheric ozone under 42 U.S.C. 7401, Title VI, unless the EPA has determined that such requirements need not be contained in an operating permit;
12. (l) Any national ambient air quality standard or increment or visibility requirement under 42 U.S.C. 7401, Title I, part C but only as it would apply to temporary sources permitted pursuant to 42 U.S.C. 7401, § 504(e); and
13. (m) Any other standard or requirement contained in 310 CMR 7.00 that has not been approved or promulgated by EPA through rulemaking under 42 U.S.C. 7401, Title I. These applicable requirements would be listed as a "state only" enforceable provision of an operating permit.

Appendix C: continued

Carbon Dioxide Equivalent, or CO e, means the amount of GHG emitted by a facility, computed 2 by multiplying the mass amount of emissions in tons per year for each of the six greenhouse gases in the pollutant GHG, by each gas's associated global warming potential set forth in 40 CFR part 98 subpart A Table A-1 - Global Warming Potentials, and summing the resultant value for each to compute tons per year CO e. 2

Complete Application means an application, filed on form(s) specified by the Department, that is completed consistent with the criteria set forth in the instructions for the application form(s). To be deemed complete, an application must provide all information required pursuant to 310 CMR 7.00: Appendix C(5)b., except that applications for permit modifications or amendments need supply such information only if it is related to the proposed change. Information submitted must be sufficient to evaluate the subject source(s) and its application; and to determine all applicable requirements, and shall be submitted over the signature of a responsible official who certifies the submitted information is in accordance with 310 CMR 7.00: Appendix C(5)(b)9. and (5)(c). The source(s)' ability to operate without a permit, as set forth in 310 CMR 7.00: Appendix C(11) (application shield), shall be in effect from the date the application is determined or deemed to be complete until the final permit is issued, provided that the applicant submits any requested additional information by the deadline specified by the Department.

Designated Representative shall have the meaning given to it in 42 U.S.C. 7401, § 402(26) and the regulations promulgated thereunder.

Draft Permit means the version of an operating permit which is released for an opportunity for comment by the public, EPA or an affected state in compliance with 310 CMR 7.00: Appendix C(6)(a) prior to the Department's final decision on an operating permit application.

Emergency means any situation arising from sudden and reasonably unforeseeable events beyond the control of the source, including acts of God, which situation would require immediate corrective action to restore normal operation, and that causes the source to exceed a technology- based emission limitation under the permit, due to unavoidable increases in emissions attributable to the emergency. An emergency shall not include noncompliance to the extent caused by improperly designed equipment, lack of preventative maintenance, careless or improper operation, operator error or decision to keep operating despite knowledge of any of these things.

Emissions Unit(s) means any part or activity of a facility that emits or has the potential to emit any regulated air pollutant or any pollutant listed under 42 U.S.C. 7401, the Clean Air Act, § 112(b). This term is not meant to alter or affect the definition of the term "unit" for purposes of 42 U.S.C. 7401, Title IV (the acid rain provisions). Further clarification of the scope of "emission unit(s)" is provided by the Department by policy.

Emissions Allowable Under the Permit means a federally enforceable permit term or condition determined at issuance to be required by an applicable requirement that establishes an emissions limit (including a work practice standard), or a federally enforceable emissions cap.

Facility means any installation or establishment and associated equipment, located on the same, adjacent or contiguous property, capable of emissions and are under control of the same person.

Final Operating Permit means the version of an operating permit issued by the Department that has completed all review procedures required by 310 CMR 7.00: Appendix C including EPA review.

Fugitive Emissions are those emissions which could not reasonably pass through a stack, chimney, vent, or other functionally-equivalent opening.

General Operating Permit means a standardized operating permit that the Department may make applicable to numerous similar operation(s) or facilities under 310 CMR 7.00: Appendix C(15).

Appendix C: continued

GHG Mass Basis means the sum of the mass amount of emissions in tons per year of the six greenhouse gases in the pollutant GHG prior to multiplying by each gas's associated global warming potential set forth in 40 CFR part 98 subpart A Table A-1 - Global Warming Potentials.

Greenhouse Gas (GHG) means the air pollutant that is the aggregate of the group of six gases: Carbon dioxide (CO ), Methane (CH ), Nitrous oxide (N O), Hydrofluorocarbons (HFCs), 2 4 2 Perfluorocarbons (PFCs), and Sulfur hexafluoride (SF ). 6

Hazardous Air Pollutant (HAP) means an air contaminant listed by EPA as a HAP, pursuant to 42 U.S.C. 7401, § 112. That list is incorporated by reference in 310 CMR 7.00: Appendix C, together with all amendments and supplements thereto. A copy of the list is available from the Department.

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Appendix C: continued

Laboratory Hoods means a boxlike non-production structure intended for placement on a table or bench; the bench and the hood may be one integral structure. The opening(s) is provided with a sash or sashes that move vertically or horizontally to close the opening(s). Provisions are made for exhausting air from the top or back of the hood, and adjustable internal baffles are provided to obtain air flow distribution across the open face(s). Laboratory hoods may include those used for special purposes such as, but not limited to, capturing gases from equipment such as atomic absorption, gas chromatograph, liquid pouring or mixing stations and heat sources. It may additionally include floor mounted hoods with sash and/or doors for closing the open face.

Major Source means any stationary source (or any group of stationary sources that are located on one or more contiguous or adjacent properties, and are under common control of the same person (or persons under common control)) belonging to a single major industrial grouping and that are described in 310 CMR 7.00: Appendix C Major Source. For the purpose of defining "major source," a stationary source or group of stationary sources shall be considered part of a single industrial grouping if all of the pollutant emitting activities at such source or group of sources on contiguous or adjacent properties belong to the same Major Group (i.e., all have the same two-digit code) as described in the Standard Industrial Classification Manual, 1987. Notwithstanding the previous statement, for the purpose of determining major source under 42 U.S.C. 7412, The Clean Air Act, §112, all hazardous air pollutants as defined under 42 U.S.C. 7412, The Clean Air Act, § 112 shall be summed regardless of the SIC code classification of the process emitting said pollutant(s).

1. (a) A major source under 42 U.S.C. 7401, The Clean Air Act § 112 which is defined as:

   1. 1. For pollutants other than radionuclides, any stationary source or group of stationary sources located within a contiguous area and under common control that emits or has the potential to emit, in the aggregate, ten tons per year (tpy) or more of any hazardous air pollutant which has been listed pursuant to 42 U.S.C. 7401, The Clean Air Act, § 112(b), 25 tpy or more of any combination of such hazardous air pollutants, or such lesser quantity as the Administrator may establish by rule. Notwithstanding the preceding sentence, emissions from any oil or gas exploration or production well (with its associated equipment) and emissions from any pipeline compressor or pump station shall not be aggregated with emissions from other similar units, whether or not such units are in a contiguous area or under common control, to determine whether such units or stations are major sources; or
   2. 2. For radionuclides, "major source" shall have the meaning specified by the Administrator by rule.

2. (b) A major stationary source of air pollutants, as defined in 42 U.S.C. 7602, The Clean Air Act, § 302, that directly emits or has the potential to emit, 100 tpy or more of any air pollutant (including any major source of fugitive emissions of any such pollutant, as determined by rule by the Administrator). The fugitive emissions of a stationary source shall not be considered in determining whether it is a major stationary source for the purposes of 42 U.S.C. 7602, The Clean Air Act, § 302(j), unless the source belongs to one of the following categories of stationary source:

   1. 1. Coal cleaning plants (with thermal dryers);
   2. 2. Kraft pulp mills;
   3. 3. Portland cement plants;
   4. 4. Primary zinc smelters;
   5. 5. Iron and steel mills;
   6. 6. Primary aluminum ore reduction plants;
   7. 7. Primary copper smelters;
   8. 8. Municipal incinerators capable of charging more than 250 tons of refuse per day;
   9. 9. Hydrofluoric, sulfuric, or nitric acid plants;
   10. 10. Petroleum refineries;
   11. 11. Lime plants;
   12. 12. Phosphate rock processing plants;
   13. 13. Coke oven batteries;
   14. 14. Sulfur recovery plants;
   15. 15. Carbon black plants (furnace process);
   16. 16. Primary lead smelters;
   17. 17. Fuel conversion plant;
   18. 18. Sintering plants;
   19. 19. Secondary metal production plants;

Appendix C: continued

1. 20. Chemical process plants;
2. 21. Fossil-fuel boilers (or combination thereof) totaling more than 250 million British thermal units per hour heat input;
3. 22. Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels;
4. 23. Taconite ore processing plants;
5. 24. Glass fiber processing plants;
6. 25. Charcoal production plants;
7. 26. Fossil-fuel-fired steam electric plants of more than 250 million British thermal units per hour heat input; or
8. 27. All other stationary source categories regulated by a standard promulgated under 42 U.S.C. 7411 and 7412, The Clean Air Act, §§ 111 and 112.

9. (c) A major stationary source as defined in 42 U.S.C. 7401, Title I, part D, including:

   1. 1. For ozone non attainment areas, sources with the potential to emit 100 tpy or more of volatile organic compounds or oxides of nitrogen in areas classified as "marginal" or "moderate," 50 tpy or more in areas classified as "serious," 25 tpy or more in areas classified as "severe," and ten tpy or more in areas classified as "extreme"; except that the references in this paragraph to 100, 50, 25, and ten tpy of nitrogen oxides shall not apply with respect to any source for which the Administrator has made a finding, under 42 U.S.C. 7401, The Clean Air Act, § 182(f)(1) or (2), that requirements under 42 U.S.C. 7401, The Clean Air Act, § 182(f) do not apply;
   2. 2. For ozone transport regions established pursuant to 42 U.S.C. 7401, The Clean Air Act, § 184 sources with the potential to emit 50 tpy or more of volatile organic compounds;

   3. 3. For carbon monoxide non attainment areas:

      1. a. that are classified as "serious," and
      2. b. in which stationary sources contribute significantly to carbon monoxide levels as determined under rules issued by the Administrator, sources with the potential to emit 50 tpy or more of carbon monoxide; and
   4. 4. For particulate matter (PM-10) non attainment areas classified as "serious," sources with the potential to emit 70 tpy or more of PM-10.

Operating Permit means any permit or group of permits covering emission unit(s) at a facility subject to the permitting requirement of 310 CMR 7.00: Appendix C that is issued, renewed, amended or revised pursuant to 310 CMR 7.00: Appendix C.

Permit Modification means a revision to any operating permit issued under 310 CMR 7.00: Appendix C that does not meet the requirements for an administrative amendment.

Proposed Permit means the version of a permit that the Department proposes to issue and forwards to the EPA for review in compliance with 310 CMR 7.00: Appendix C(6) and 40 CFR 70.8.

Regulated Air Pollutant means the following:

1. (a) Nitrogen oxides or any volatile organic compound;
2. (b) Any pollutant for which a national ambient air quality standard has been promulgated;
3. (c) Any pollutant that is subject to any standard promulgated under 42 U.S.C. 7401, The Clean Air Act, § 111, New Source Performance Standard 40 CFR Part 60;
4. (d) Any Class I or II substance subject to a standard promulgated under or established by 42 U.S.C. 7401, Title VI; or

5. (e) Any pollutant subject to a standard promulgated under 42 U.S.C. 7401, The Clean Air Act, § 112, National Emissions Standards for Hazardous Air Pollutants, 40 CFR Part 61, or other requirements established under 42 U.S.C. 7401, The Clean Air Act, § 112, including §§ 112(g), (j), and (r), including the following:

   1. 1. Any pollutant subject to requirements under 42 U.S.C. 7401, § 112(j). If the EPA fails to promulgate a standard by the date established pursuant to 42 U.S.C. 7401, The Clean Air Act, § 112(e), any pollutant for which a subject source would be major shall be considered to be regulated on the date 18 months after the applicable date established pursuant to 42 U.S.C. 7401, The Clean Air Act, § 112(e); and

Appendix C: continued

1. 2. Any pollutant for which the requirements of 42 U.S.C. 7401, § 112(g)(2) have been met, but only with respect to the individual source subject to 42 U.S.C. 7401, § 112(g)(2) requirement.

Renewal means the process by which a permit can be reissued at the end of its term or earlier should the Department determine a modification meets the requirements of renewal.

Responsible Official means one of the following:

1. (a) For a corporation: a president, secretary, treasurer, or vice-president of the corporation in charge of a principal business function, or any other person who performs similar policy or decision-making functions for the corporation, or a duly authorized representative of such person if the representative is responsible for the overall operation of one or more manufacturing, production, or operating facilities applying for or subject to a permit and either:

   1. 1. the facilities employ more than 250 persons or have gross annual sales or expenditures exceeding $25 million (in second quarter 1980 dollars); or
   2. 2. the delegation of authority to such representative is approved in advance in writing by the Department;
2. (b) For a partnership or sole proprietorship: a general partner or the proprietor, respectively;
3. (c) For a municipality, State, Federal, or other public agency: either a principal executive officer or ranking elected official. For the purposes of this part, a principal executive officer of a Federal agency includes the chief executive officer having responsibility for the overall operations of a principal geographic unit of the agency (e.g., a Regional Administrator of EPA); or

4. (d) For affected sources:

   1. 1. The designated representative insofar as actions, standards, requirements, or prohibitions under 42 U.S.C. 7401, Title IV or the regulations promulgated thereunder are concerned; and
   2. 2. The designated representative for any other purposes under 310 CMR 7.00: Appendix C(4).

Section 502(b)(10) Changes are changes that contravene an expressed operating permit term but would not violate any applicable requirement(s) or contravene federally enforceable permit term(s) and condition(s) that are monitoring (including test methods), record keeping, reporting, or compliance certification requirements.

Stationary Source means any building, structure, facility, or installation that emits or may emit any regulated air pollutant or any pollutant listed under 42 U.S.C. 7401, § 112(b). "Building, structure, facility, or installation" means all of the pollutant-emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person.

Timely means, with respect to an application for an operating permit or permit revision, in accordance with a time frame as set forth in 310 CMR 4.00: Timely Action Schedule and Fee Provisions and 7.00: Appendix C.

1. (2) Applicability.

   1. (a) 310 CMR 7.00: Appendix C applies to any facility which:

      1. 1. emits or has federal potential emissions, in the aggregate, including from exempt and insignificant activities, of any regulated air pollutant in an amount which equals or exceeds any one of the following: 50 tons per year of VOC; 50 tons per year of NO ; ten x tons per year of any hazardous air pollutant (HAP) subject to 42 U.S.C. 7401 § 112, 25 tons per year of any combination of HAPs; or 100 tons per year of any other regulated air pollutant, excluding GHGs; or
      2. 2. is subject to a standard or other requirements under 42 U.S.C. 7401, § 112 (NESHAPS), except that a facility is not required to obtain a permit solely because it is subject to the regulation or requirements under 42 U.S.C. 7401, § 112(r) (accidental release); or
      3. 3. is subject to a New Source Performance Standard (NSPS), including an area source requirement, or other requirements under 42 U.S.C. 7401, § 111; or

Appendix C: continued

1. 4. is an affected source as defined in 42 U.S.C. 7401, Title IV (acid rain provisions); or
2. 5. is in any other source category designated by the EPA pursuant to 40 CFR, § 70.3(a)(5) or pursuant to a rulemaking under 42 U.S.C. 7401, §§ 111 or 112 where EPA promulgates a standard for a source category and EPA determines not to exempt any or all non-major sources subject to that standard from the requirement to obtain an operating permit.
3. (b) Any non-major source for which an operating permit is required under 310 CMR 7.00: Appendix C(2)(a)2. through 3., which is not an affected source under 42 U.S.C. 7401, Title IV or a solid waste incineration unit required to obtain a permit pursuant to 42 U.S.C. 7401, § 129(e), is deferred from the obligation to obtain an operating permit until such time as the Department and EPA complete a rulemaking, including a rule making by EPA under 42 U.S.C. 7401, §§ 111 or 112, to determine how the operating permit program should be structured for non-major sources, and the appropriateness of any permanent exemptions. Notwithstanding the previous sentence, any non-major source which becomes subject to a rulemaking promulgated by EPA pursuant to 42 U.S.C. 7401 §§ 111 or 112 ("NSPS, NESHAPs or MACT") on or after July 21, 1992, where the rulemaking explicitly requires the source to obtain an operating permit, shall submit an operating permit application in accordance with the schedule established in that rulemaking. Where the rulemaking defers to the regulating authority, the application is due on the date that is one year after the date on which the source becomes subject to the rulemaking.
4. (c) Any source listed in 310 CMR 7.00: Appendix C(2)(b) deferred from the requirement to obtain a permit may elect to apply for an operating permit pursuant to 310 CMR 7.00: Appendix C.

5. (d) Notwithstanding 310 CMR 7.00: Appendix C(2)(a), a facility is not subject to this Appendix if the only applicable requirement which applies to the facility is:

   1. 1. A requirement pursuant to 40 CFR Part 60, Subpart AAA - Standards of Performance for New Residential Wood Heaters; or
   2. 2. A requirement pursuant to 40 CFR Part 61, Subpart M - National Emission Standard for Hazardous Air Pollutants for Asbestos, section 61.145, Standard for Demolition and Renovation.
6. (e) For the purpose of determining applicability under 310 CMR 7.00: Appendix C(2)(a), an owner or operator may elect to treat any part(s) of a facility used solely for research and development (R&D) operations, co-located with a major source, as a separate facility providing; 1) the SIC code for the R&D part of the facility differs from the rest of the facility; and 2) the relationship between the functions of the R&D part of the facility and the remainder of the facility does not involve support of the latter by the former.

7. (f) An owner or operator of a facility subject to 310 CMR 7.00: Appendix C may elect to be relieved from the requirement to obtain an operating permit under 310 CMR 7.00: Appendix C. To be eligible, one of the following must be complied with:

   1. 1. A source specific SIP revision which has been approved by EPA;
   2. 2. Restricted emission status issued pursuant to 310 CMR 7.02(9); or
   3. 3. A construction, substantial reconstruction or modification plan approval issued pursuant to 310 CMR 7.02(1) which limits the potential emissions of the total facility below the applicability thresholds stated at 310 CMR 7.00: Appendix C(2)(a); or
   4. 4. Operating in accordance with the requirements of 310 CMR 7.02(11).

8. (3) General Provisions.

   1. (a) 1. On or before June 30, 1996, person(s) owning or operating a facility subject to the requirements of 310 CMR 7.00: Appendix C based upon their operations in calendar years 1990, 1991, 1992 or 1993, and not electing to comply with a federally approved option listed at 310 CMR 7.00: Appendix C(2)(f) shall enroll with the Department.

Appendix C: continued

1. 2. On or after July 1, 1996, any owner or operator of a facility shall automatically be enrolled when subject to 310 CMR 7.00: Appendix C.
2. (b) Any owner or operator of a facility subject to the requirements of 310 CMR 7.00: Appendix C shall submit a complete application for a permit according to time frames specified in 310 CMR 7.00: Appendix C(4)(a) and 310 CMR 4.00, and shall operate in compliance with the terms and conditions of a permit issued pursuant to 310 CMR 7.00: Appendix C.
3. (c) Permits shall be for a fixed term of five years in the case of affected sources, and for a term not to exceed five years in the case of all other facilities. Notwithstanding this requirement, permits for solid waste incineration units combusting municipal waste subject to standards under 42 U.S.C. 7401, § 129(e) shall be issued for a period not to exceed 12 years and reviewed by the Department at least every five years.

4. (d) No person shall cause, suffer, allow or permit the operation of any facility subject to 310 CMR 7.00: Appendix C:

   1. 1. Unless a timely and complete application for an operating permit or renewal has been submitted to the Department;
   2. 2. If the facility's operating permit has expired unless a timely and complete application pursuant to 310 CMR 7.00: Appendix C(4) has been submitted to the Department;
   3. 3. If the facility's operating permit has been revoked;
   4. 4. Unless all fees required pursuant to 310 CMR 4.00 have been remitted to the Department or waived by the Department in accordance with 310 CMR 4.00; and
   5. 5. If modified, unless the procedures in 310 CMR 7.00: Appendix C(7) and/or (8) as applicable, have been complied with.

5. (e) An initial operating permit, permit modification, or renewal may be issued only if all of the following conditions have been met:

   1. 1. A complete application for a permit, general permit, permit modification, or permit renewal has been received and reviewed by the Department;
   2. 2. Except for modifications qualifying for minor permit modification procedures under 310 CMR 7.00: Appendix C(8), the requirements for public participation contained in 310 CMR 7.00: Appendix C(6) have been complied with;
   3. 3. The requirements for notifying and responding to affected States under 310 CMR 7.00: Appendix C(6) has been complied with;
   4. 4. The conditions of the permit provide for compliance with all applicable requirements and the requirements of 310 CMR 7.00: Appendix C; and
   5. 5. The EPA has received a copy of the proposed permit and any notices required under 310 CMR 7.00: Appendix C(6), and has not objected to issuance of the permit within the time period specified therein.
6. (f) Any facility subject to 310 CMR 7.00: Appendix C and operating without an operating permit, or failing to comply with any of the terms of its operating permit; or any provision of 310 CMR 7.00: Appendix C; or any order issued by the Department pursuant to 310 CMR 7.00: Appendix C, shall be subject to enforcement pursuant to the Massachusetts General Laws and regulations promulgated thereunder.

7. (g) Each operating permit issued by the Department shall include provisions in accordance with the following:

   1. 1. Each operating permit shall include all applicable requirements, including any emissions limitations and standards and any operational requirements, and shall cite to the legal authority for each requirement. Each operating permit shall also identify any difference in form between the permit condition and the applicable requirement upon which the permit condition is based.

Appendix C: continued

1. 2. The operating permit shall specify the expiration date of the permit in accordance with 310 CMR 7.00: Appendix C(3)(c).
2. 3. The operating permit shall require emissions monitoring and analysis procedures or test methods in accordance with 310 CMR 7.00: Appendix C(9).
3. 4. The operating permit shall require recordkeeping and reporting in accordance with 310 CMR 7.00: Appendix C(10). The operating permit shall specify the format and time frequency for reporting to the Department all monitoring data and related supporting information in accordance with 310 CMR 7.00: Appendix C(10).
4. 5. For a permittee subject to EPA's acid rain deposition control program pursuant to Title IV, 42 U.S.C. § 7651 et seq., the operating permit shall include and be consistent with the regulations in Title IV.
5. 6. The operating permit shall include a severability clause to ensure the continued validity of the various operating permit requirements in the event of a challenge to any portions of the operating permit.

6. 7. The operating permit shall include the following statements:

   1. a. The permittee shall comply with all conditions of the operating permit including the approved compliance plan. Any noncompliance with a permit condition constitutes a violation of 310 CMR 7.00: Appendix C or 42 U.S.C. 7661 et seq., and is grounds for enforcement action; for permit termination, revocation and reissuance, or revision; or for denial of an operating permit renewal application.
   2. b. A permittee in an enforcement action cannot use as a defense that it would have been necessary to halt or reduce the permitted activity in order to maintain compliance with the conditions of the operating permit.
   3. c. The operating permit may be modified, revoked, reopened, and reissued, or terminated for cause. The filing of a request by the permittee for an operating permit revision, revocation and reissuance, or termination, or of a notification of planned changes or anticipated noncompliance does not stay any operating permit condition.
   4. d. The operating permit does not convey any property rights of any sort, or any exclusive privilege.
   5. e. All terms and conditions in an operating permit, including any provisions designed to limit a facility's potential to emit, are enforceable by the EPA and citizens under 42 U.S.C. 7661 et seq. Notwithstanding the preceding sentence, the Department shall specifically designate in the operating permit any terms and conditions that are not federally enforceable because the terms and conditions are not required under 42 U.S.C. 7661 et seq. or under any of its applicable requirements.
7. 8. The operating permit shall require the permittee to pay fees to the Department consistent with the fee schedule pursuant to 310 CMR 4.00.
8. 9. The operating permit shall contain terms and conditions for reasonably anticipated alternative operating scenarios as approved by the Department.
9. 10. The operating permit shall include a provision stating that no operating permit revision shall be required, under any approved economic incentives program, marketable permits program, emissions trading program and other similar programs or processes, for changes that are provided for in the operating permit.
10. 11. If the permittee has authorization for intra-facility emissions trading, the operating permit shall state the terms and conditions for the trading of emissions increases and decreases within the permitted facility in accordance with the requirements of 310 CMR 7.00: Appendix C(7)(b) or 310 CMR 7.00: Appendix B.

11. 12. The operating permit shall include a statement that upon presentation of credentials and other documents as may be required by law, the permittee shall allow the Department or an authorized representative to perform the following:

    1. a. Enter upon the permittee's premises where an operating permit facility is located or emissions-related activity is conducted, or where records must be kept under the conditions of the operating permit;
    2. b. Have access to and copy, at reasonable times, any records that must be kept under the conditions of the operating permit;
    3. c. Inspect at reasonable times any facilities, equipment (including monitoring and air pollution control equipment), practices, or operations regulated or required under the operating permit; and

Appendix C: continued

1. d. As authorized by 42 U.S.C.7661 et seq., sample or monitor at reasonable times substances or parameters for the purpose of assuring compliance with the operating permit or applicable requirements.
2. 13. The operating permit shall include requirements for Compliance Certification consistent with 310 CMR 7.00: Appendix C(5)(b)(9).
3. 14. The operating permit shall include a schedule of compliance and a schedule for the submittal of progress reports, both approved by the Department, consistent with 310 CMR 7.00: Appendix C(5)(b)(8).
4. 15. The operating permit shall state whether a permit shield is applicable pursuant to 310 CMR 7.00: Appendix (C)(12).
5. 16. The operating permit shall contain provisions for emergency conditions in accordance with in 310 CMR 7.00: Appendix C(16).
6. 17. The operating permit may include other provisions as required by the Department.
7. (h) An operating permit does not convey any property right of any sort, or any exclusive privilege.
8. (i) An operating permit does not relieve any person from the obligation to comply with any other provision of 310 CMR 7.00 or to obtain any other necessary authorizations from other governmental agencies, or to comply with all other applicable Federal, State, or local rules and regulations, not addressed in their operating permit.
9. (j) All information submitted to the Department pursuant to the requirements of 310 CMR 7.00: Appendix C shall be public information except for that which the Department has designated confidential pursuant to the provisions of M.G.L. c. 111, § 142B and 40 CFR 70.4(b)(3) published in the Federal Register July 21, 1992, incorporated herein by reference. No permit shall in any case be designated confidential.

10. (k) The Department may issue a single permit authorizing emissions from similar operations by the same owner or operator at multiple temporary locations provided:

    1. 1. The operation is temporary;
    2. 2. The operation involves at least one change of location during the term of the permit;
    3. 3. The temporary source is not an affected source; and

    4. 4. The conditions of approval for operation of the temporary source assure compliance with:

       1. a. All applicable requirements at all authorized locations;
       2. b. All other provisions of 310 CMR 7.00: Appendix C; and
       3. c. The requirement that the Department be notified at least ten days in advance of each change in location in writing.
11. (l) If an additional applicable requirement becomes applicable to the facility, or an applicable requirement which was previously applicable to the facility changes, the facility shall act to have the new applicable requirement or the change incorporated into the operating permit, in accordance with the procedures set forth in 310 CMR 7.00: Appendix C(14)(a).
12. (m) The Department may terminate an operating permit upon request of the responsible official of said facility.
13. (n) The Department hereby adopts and incorporates by reference the provisions of the acid rain program 40 CFR part 72, as in effect on January 11, 1993 and as amended March 23, 1993, October 24, 1997, and 40 CFR Part 76 as in effect on September 1, 1998, for purposes of implementing an acid rain program that meets the requirements of 42 U.S.C. 7401, Title
14. IV. The term permitting authority shall mean the Department and the term Administrator shall mean the Administrator of the United States Environmental Protection Agency.
15. (o) If the provisions or requirements of 40 CFR part 72 conflict with or are not included in 310 CMR 7.00: Appendix C, the part 72 provisions and requirements shall apply and take precedence.

16. (4) Application Submittal Time Lines for Operating Permits.

    1. (a) Schedule to submit an application for an operating permit.

       1. 1. On and after April 1, 1994 a complete operating permit application shall be submitted to the Department in accordance with the following schedule:

Appendix C: continued

1. a. For Restricted Emission Status (RES) pursuant to 310 CMR 7.02(12) and 310 CMR 7.00: Appendix C(2)(f): a Restricted Emission Status application must be submitted, reviewed, and approved no later than the published timeline for submittal of the original operating permit application, or a renewal application unless otherwise agreed to by the Department in writing.
2. b. For a Group A Source, any facility subject to 310 CMR 7.00: Appendix C and not submitting an application under 310 CMR 7.00: Appendix C(4)(a)1.a., with operations classified under the Standard Industrial Classification Codes (major group) 49 or 51: no later than November 15, 1994 nor before October 1, 1994;
3. c. For a Group B Source, any facility subject to 310 CMR 7.00: Appendix C and not submitting an application under 310 CMR 7.00: Appendix C(4)(a)1.a., with operations classified under the Standard Industrial Classification Codes (major group) 22, 23, 25, 26, 27, 28, 30, 31, 36, 38, 97 or 99: no later than September 1, 1995 nor before July 1, 1995;
4. d. For a Group C Source, any facility subject to 310 CMR 7.00: Appendix C and not submitting an application under 310 CMR 7.00: Appendix C(4)(a)1.a., with operations classified under the Standard Industrial Classification Codes (major group) 01, 14, 20, 24, 29, 32, 33, 34, 35, 37, 39, 45, 50, 56, 63, 65, 70, 72, 80, 82, 86, 95 or other stationary sources not classified in Groups A or B: no later than November 15, 1995 nor before September 15, 1995.
5. 2. For a facility subject to the requirements of 310 CMR 7.00: Appendix C and in operation prior to the effective date of 310 CMR 7.00: Appendix C, an application for an operating permit pursuant to 310 CMR 7.00: Appendix C shall be submitted in accordance with the schedule detailed in 310 CMR 7.00: Appendix C(4)(a)1., or other schedule established in writing by the Department and the facility, but in no case later than one year after approval by EPA of 310 CMR 7.00: Appendix C, the operating permit program.
6. 3. For operating permit applications submitted in accordance with 310 CMR 7.00: Appendix C(4)(a)1. or 2., the Department shall take final action on all applications no later than three years after approval by EPA of 310 CMR 7.00: Appendix C, the operating permit program.
7. 4. Applications for initial phase II acid rain permits shall be submitted by January 1, 1996 for sulfur dioxide, and by January 1, 1998 for nitrogen oxides. Operating permit applications for these sources must be submitted in accordance with the schedule detailed in 310 CMR 7.00: Appendix C(4)(a)1..
8. 5. For new construction subject to the requirements of 310 CMR 7.00: Appendix C, an application for an operating permit shall be submitted no later than one year after commencement of operation. Where an operating permit issued pursuant to 310 CMR 7.00: Appendix C would be modified or amended as a result of this construction, the owner or operator must follow the procedures of 310 CMR 7.00: Appendix C(8) and the time lines contained in 310 CMR 7.00: Appendix C(4)(b). (NB: New facilities are encouraged to submit applications pursuant to 310 CMR 7.00: Appendix C concurrent with 310 CMR 7.02 applications.)
9. 6. For construction, substantial reconstruction or alteration of any facility, which results in the facility being subject to the requirements of 310 CMR 7.00: Appendix C, the application for an operating permit shall be submitted to the Department no later than one year after the commencement of operation of the portion of the facility which made the facility subject to the program. (NB: Owners and operators are encouraged to submit applications concurrent with 310 CMR 7.02 application)
10. 7. For a facility operating under 310 CMR 7.02(9) or 310 CMR 7.02(11) status, an operating permit application shall be submitted within six months of becoming subject to 310 CMR 7.00: Appendix C.

11. (b) Schedule for submittal of applications to amend, modify or renew an operating permit:

    1. 1. For a significant modification to an operating permit, a timely application is one that is submitted at least nine months prior to the planned modification. For significant modifications which have been reviewed and approved under 310 CMR 7.00, the construction or modification that has been reviewed and approved may commence, but may not operate, prior to final approval of the modification to the operating permit if the existing operating permit would prohibit such construction or change in operation. If the existing operating permit would not prohibit such construction or change in operation, then operations may commence prior to final approval of the modification to the operating permit.

Appendix C: continued

1. 2. For a minor modification to an operating permit, a timely application is one that is submitted concurrent with the planned modification.
2. 3. For an administrative amendment to an operating permit, a timely application is one that is submitted concurrent with initiation of the proposed change.
3. 4. For a renewal of an operating permit, a timely application shall be submitted at least six months prior to the expiration of the operating permit.

4. (c) Except for as provided in 310 CMR 7.00: Appendix C(4)(a)3., final action by the Department shall be taken on each operating permit application within:

   1. 1. 18 months of receipt of a complete application for an operating permit for new construction submitted after November 15, 1995
   2. 2. nine months of receipt of a complete application for a significant modification to an operating permit.
   3. 3. 90 days of receipt of a minor modification application to an operating permit or 15 days after the end of the EPA's 45 day review period under 310 CMR 7.00: Appendix C(6), whichever is later.
   4. 4. 15 days of receipt of an administrative amendment to an operating permit.
   5. 5. nine months of receipt of a complete application for renewal of an operating permit.
   6. 6. 120 days for group processing of minor modifications or 15 days after the end of EPA's 45-day review period under 310 CMR 7.00: Appendix C(6), whichever is later.
   7. 7. nine months of receipt of a complete application for an early reduction demonstration (40 CFR Part 63) under 42 U.S.C. 7401, § 112(i)(5).

5. (d) Completeness Determination.

   1. 1. The Department shall notify the applicant within 60 days of its receipt of the application for an initial operating permit, a significant modification or renewal as to whether the application is complete.
   2. 2. To be deemed complete, an application shall include all the information required by 310 CMR 7.00: Appendix C(5) and payment of the applicable fee pursuant to 310 CMR 4.10: Appendix: Schedules for Timely Action and Application Fees. A completeness determination shall not be required for a minor permit modification or an administrative amendment.
   3. 3. If the Department fails to notify the applicant within 60 days of the Department's receipt of an application that more information is needed, then the application shall be deemed complete and the applicant shall be afforded the application shield described at 310 CMR 7.00: Appendix C(11).
   4. 4. If, after a completeness determination, the Department requires additional information, it shall request such information in writing and set a deadline for its submittal. Departmental requests for additional information made after the application is deemed complete shall not, by themselves, indicate that the application is not complete. If however, the applicant fails to submit the requested information by a reasonable deadline specified or as otherwise agreed in writing by the Department, the application shall be considered incomplete and the applicant shall not have the application shield provided for under 310 CMR 7.00: Appendix C(11).

6. (5) General Application Requirements.

   1. (a) Applications for an operating permit or renewal of an operating permit pursuant to 310 CMR 7.00: Appendix C, and any additional information required by the Department shall be submitted to the Department and EPA in a format prescribed by the Department. An applicant may not omit information needed to determine whether the facility is subject to any applicable requirement.

      1. 1. For any subject facility whose emissions exceed the thresholds of 310 CMR 7.00: Appendix C(2)(a)1., the application shall include all applicable requirements for all emissions units.
      2. 2. For any facility that contains an emission unit that causes the facility to be subject to 310 CMR 7.00: Appendix C(2)(b), the application shall include all applicable requirements for the emissions units that cause the facility to be subject to 310 CMR 7.00: Appendix C.
   2. (b) Except as provided for in 310 CMR 7.00: Appendix C(5)(a)2. and (i), the following information must be submitted for each emission unit associated with the facility. Fugitive emissions shall be included in the permit application in the same manner as stack emissions, regardless of whether the source category in question is included in the list of sources contained in the definition of major source. Applications shall contain at a minimum:

Appendix C: continued

1. 1. Identifying information, including company name and address (or plant name and address if different from the company name); owner's name and telephone number; and name(s) and telephone number(s) of facility site manager/contact.
2. 2. A description of the facility’s processes and products (by Standard Industrial Classification Code) associated with each alternate scenario proposed in the application.

3. 3. Except for insignificant activities listed in 310 CMR 7.00: Appendix C(5) the following emissions-related information:

   1. a. All emissions of regulated air pollutants for which the emissions unit has an applicable requirement.
   2. b. Identification and description of all points of emissions described in 310 CMR 7.00: Appendix C(5)(b)3.a. in sufficient detail to establish said applicable requirements.
   3. c. Emissions rates in tons per year and in such terms as are necessary to establish compliance consistent with the applicable EPA standard reference emissions test method.
   4. d. The following information to the extent it is needed to determine or regulate emissions: fuels, fuel use, raw materials, production rates, and operating schedules.
   5. e. Identification and description of air pollution control equipment and compliance monitoring devices or activities
   6. f. Limitations on source operation affecting emissions or any work practice standards, where applicable, for all regulated pollutants at the source.
   7. g. Other information required by any applicable requirement (including information related to stack height limitations developed pursuant to 42 U.S.C. 7401, The Clean Air Act, § 123).
   8. h. Calculations on which the information in 310 CMR 7.00: Appendix C(5)(b)3.a. through g. is based.
4. 4. For activities proposed to be exempt pursuant to 310 CMR 7.00: Appendix C(5)(h), a list describing each activity and its emissions.

5. 5. The following air pollution control requirements:

   1. a. Citation and description of all applicable requirements, and
   2. b. Description of or reference to any applicable test method for determining compliance with each applicable requirement.

6. 6. Other specific information that may be necessary to implement and enforce 310 CMR 7.00: Appendix C(5)(b)2, (7) or other applicable requirements of 42 U.S.C. 7401 or to determine the applicability of such requirements including but not limited to terms and conditions for reasonably anticipated operating scenarios including:

   1. a. Establishing and maintaining, contemporaneously with making a change from one operating scenario to another, a record in a log at the facility as to which scenario it is operating under; and
   2. b. Documenting that the terms and conditions of each such alternative scenario meet all applicable requirements and the requirements of 310 CMR 7.00: Appendix C. The permit shield described in 310 CMR 7.00: Appendix C(12) shall apply to all

terms and conditions under each such operating scenario. 7. An explanation of any proposed exemptions from otherwise applicable requirements. 8. A Compliance Plan that contains all the following:

1. a. A description of the compliance status of the facility with respect to all applicable requirements.

2. b. A description as follows:

   1. (i) For applicable requirements with which the facility is in compliance, a statement that the source will continue to comply with such requirements.
   2. (ii) For applicable requirements that will become effective during the permit term, a statement that the facility will meet such requirements on a timely basis.
   3. (iii) For requirements for which the source is not in compliance at the time of permit issuance, a narrative description of how the source will achieve compliance with such requirements.

3. c. A compliance schedule as follows:

   1. (i) For applicable requirements with which the source is in compliance, a statement that the source will continue to comply with such requirements.

Appendix C: continued

1. (ii) For applicable requirements that will become effective during the permit term, a statement that the source will meet such requirements on a timely basis. A statement that the source will meet in a timely manner applicable requirements that become effective during the permit term shall satisfy this provision, unless a more detailed schedule is expressly required by the applicable requirement.
2. (iii) A schedule of compliance for emissions units that are not in compliance with all applicable requirements at the time of permit issuance. Such a schedule shall include a schedule of remedial measures, including an enforceable sequence of actions with milestones, leading to compliance with any applicable requirements for which the facility will be in noncompliance at the time of permit issuance. This compliance schedule shall resemble and be at least as stringent as that contained in any judicial consent decree or administrative order to which the facility is subject. Any such schedule of compliance shall be supplemental to, and shall not sanction noncompliance with, the applicable requirements on which it is based.
3. d. A schedule for submission of certified progress reports no less frequently than every six months for sources required to have a schedule of compliance to remedy a violation.
4. e. The compliance plan content requirements specified in 310 CMR 7.00: Appendix C(5)(b)8.e. shall apply and be included in the acid rain portion of a compliance plan for an affected source, except as specifically superseded by regulations promulgated under 42 U.S.C. 7401, Title IV with regard to the schedule and method(s) the source will use to achieve compliance with the acid rain emissions limitations.

5. 9. Requirements for Compliance Certification, including the following:

   1. a. A certification of compliance with all applicable requirements by a responsible official consistent with 310 CMR 7.00: Appendix C(5)(b)9.c. and 42 U.S.C. 7401, § 114(a)(3);
   2. b. A statement of methods used for determining compliance, including a description of monitoring, record keeping, and reporting requirements and test methods;
   3. c. A schedule for submission of compliance certifications during the permit term, to be submitted no less frequently than annually, or more frequently if specified by the underlying applicable requirement or by the Department;
   4. d. A statement indicating the facility's compliance status with any applicable enhanced monitoring and compliance certification requirements of 42 U.S.C. 7401; and
   5. e. A statement accepting the Department's authority to enter the premises of the permitted facility and perform reasonable inspections and sampling, as described in 310 CMR 7.00: Appendix C(3)(g).
6. 10. The use of nationally-standardized forms for acid rain portions of permit application(s) and compliance plan(s), as required by regulations promulgated under 42 U.S.C. 7401, Title IV.
7. (c) Any application form, report, or compliance certification submitted pursuant to 310 CMR 7.00: Appendix C shall contain certification by a responsible official of truth, accuracy, and completeness in accordance with 310 CMR 7.01(2).

8. (d) Any application for an initial, or renewal of an operating permit submitted to the Department pursuant to 310 CMR 7.00: Appendix C shall include the following:

   1. 1. For initial operating permits, copies of any preconstruction, substantial reconstruction or alteration approvals issued by the Department under 310 CMR 7.02;
   2. 2. For renewals of operating permits, the last complete operating permit application supplemented with all new information pertinent to the provisions of 310 CMR 7.00: Appendix C(5), (6) and (7), including any operational changes made pursuant to operational flexibility section, and any other proposed operational scenarios.
9. (e) Any person who fails to submit any relevant facts or who has submitted incorrect information in a permit application shall, upon becoming aware of such failure or incorrect submittal, promptly submit such supplementary facts or corrected information. In addition, an applicant shall provide additional information as necessary to address any requirements that become applicable to the source after the date it filed a complete application but prior to release of a draft permit.

Appendix C: continued

1. (f) If any person fails to submit information requested by the Department within the deadlines provided, the Department may deny the application, and an application shield pursuant to 310 CMR 7.00: Appendix C(11) shall automatically terminate pursuant to 310 CMR 7.00: Appendix C(11)(f). Prior to denying the application, the Department shall provide 30 days written notice to the applicant, including a list of the required information. A person may reapply at any time after the application is denied. The re-application shall meet all requirements of a complete initial permit application, including any application fee.
2. (g) In the event that a discrepancy exists between the information in an application for an operating permit and the requirements of the permit, the conditions of the permit shall prevail.
3. (h) Exempt Activities. Except as provided in 310 CMR 7.00: Appendix C(5)(i), any facility subject to the requirements of 310 CMR 7.00: Appendix C may propose to exempt certain activities from the requirements of 310 CMR 7.00: Appendix C(5)(b). A list of proposed exemptions must be submitted as part of the application. The Department will exempt the emission unit(s) if it is of a size eligible to comply with 310 CMR 7.02(8)(i) or to be exempt from preconstruction review and approval pursuant to 310 CMR 7.02(2)(b)7., 15., or 29. and not otherwise subject to an applicable requirement.

4. (i) Insignificant Activities. Notwithstanding 310 CMR 7.00: Appendix C(5)(h) any emission unit that is part of the following activities is exempt from the requirements of 310 CMR 7.00: Appendix C, except that emissions from these activities shall be included in determining federal potential to emit under 310 CMR 7.00: Appendix C(2):

   1. 1. Open burning conducted in accordance with the requirements of 310 CMR 7.07(2), (3)(a) and (3)(e);
   2. 2. Office activities and the equipment and implements used therein, such as typewriters, printers, and pens;
   3. 3. Interior maintenance activities and the equipment and supplies used therein, such as janitorial cleaning products and air fresheners; this does not include any cleaning of production equipment or activities regulated by 310 CMR 7.18;
   4. 4. Bathroom and locker room ventilation and maintenance;
   5. 5. Copying and duplication activities for internal use and for support of office activities at the facility;
   6. 6. The activities not regulated by 310 CMR 7.18 in maintenance shops, such as welding, gluing, soldering;
   7. 7. First aid or emergency medical care provided at the facility, including related activities such as sterilization and medicine preparation;
   8. 8. Laundry operations that service uniforms or other clothing used at the facility that are not regulated by 310 CMR 7.18;
   9. 9. Architectural maintenance activities conducted to take care of the buildings and structures at the facility, including repainting, reroofing, and sandblasting;
   10. 10. Exterior maintenance activities conducted to take care of the grounds of the facility, including parking lots and lawn maintenance;
   11. 11. Food preparation to service facility cafeterias and dining rooms;
   12. 12. The use of portable space heaters which reasonably can be carried and relocated by an employee;
   13. 13. Liquid petroleum gas (LPG) or petroleum fuels used to power the facility's mobile equipment and not otherwise regulated by the Department;
   14. 14. Emergency vents not subject to the accidental release regulations.
   15. 15. Non-process related surface coating and painting which exclusively use non- refillable aerosol cans;
   16. 16. Vacuum cleaning systems used exclusively for commercial or residential house- keeping;
   17. 17. Ventilating systems used exclusively for heating and cooling buildings, for the comfort of people living or working within the building serviced by said system, which EPA has determined need not be contained in an operating permit;

   18. 18. Ventilating and exhaust systems for laboratories, including hoods, used:

       1. a. by academic institutions for academic purposes.
       2. b. by hospitals and medical care facilities used for medical care purposes and medical research only.

Appendix C: continued

1. c. by laboratories which perform laboratory scale activities as defined by OSHA, excluding commercial laboratories that provide laboratory services for third parties.
2. d. by facilities for quality assurance and quality control testing and sampling activities.
3. 19. surface coating and printing processes used exclusively for educational purposes in educational institution excluding those emission units regulated by 310 CMR 7.18; and
4. 20. kilns or ventilating hoods for art or ceramic curricula at colleges, primary or secondary schools.

5. (6) Permit Review by the Public, EPA and Affected States.

   1. (a) A draft of an operating permit (draft permit) and a statement that sets forth the legal and factual basis for the draft permit conditions (including references to the applicable regulatory provisions), shall be released to the public, EPA, the applicant and affected states by the Department for applications for an operating permit, a significant modification or renewal of an operating permit; and to EPA and affected states for minor permit modifications.

   2. (b) For each draft initial operating permit, significant modification or renewal of an operating permit pursuant to 310 CMR 7.00: Appendix C(2), the Department shall:

      1. 1. Post on a public website identified by the Department (which may be the Department's own website), for the duration of the public comment period, the following:

         1. a. A notice of availability of the Department's draft initial operating permit, significant modification or renewal of an operating permit and information on how to submit public comment;
         2. b. The Department's draft initial operating permit, significant modification or renewal of an operating permit; and
         3. c. Information on how to access the administrative record for the Department's draft initial operating permit, significant modification or renewal of an operating permit.
      2. 2. Give notice to persons on a mailing list developed by the Department using generally accepted methods (e.g., hyperlink sign-up function or radio button on a Department website, sign-up sheet at a public hearing, etc.) that enable interested parties to subscribe to a mailing list. The Department may update the mailing list from time-to-time by requesting written indication of continued interest from those listed. The Department may delete from the list the name of any person who fails to respond to such a request within a reasonable timeframe.

   3. (c) The notice shall identify:

      1. 1. The name and address of the facility;
      2. 2. The name and address of the permittee;
      3. 3. The name and address of the Department's regional office processing the permit;
      4. 4. The activity or activities included in the permit action;
      5. 5. The emissions change associated with any permit modification;
      6. 6. The name, address, and telephone number of a person (or an email or website address) from whom interested persons may obtain additional information, including copies of the draft permit, the application, all relevant supporting materials, and all other materials available that are relevant to the permit decision; and
      7. 7. A brief description of the comment procedures required by 310 CMR 7.00: Appendix C(6); and the time and place of any hearing that may be held, including a statement of procedures to request a hearing (unless a hearing has already been scheduled).
   4. (d) The Department, on or before the publication of the public notice of a draft permit, shall also give notice of its intent to issue a draft permit to the head of the environmental program of any affected state.
   5. (e) The Department shall provide a comment period of no less than 30 calendar days and no more than 60 calendar days on draft permits for an initial permit, significant modifications and renewals of operating permits.
   6. (f) The Department based upon material issues or at its own initiative may hold a public hearing on a draft permit. For an initial operating permit issuance, renewal or significant modification to an operating permit, any person may request before the expiration of the public comment period specified pursuant to 310 CMR 7.00: Appendix C(6)(a), that the Department hold a public hearing (if the Department has not already scheduled a public hearing) on a draft permit, by submitting a written request stating the nature of the issues to be raised at a public hearing. Notice of any public hearing shall be given at least 30 days in

Appendix C: continued

advance of the hearing and may be included in the notice issued pursuant to 310 CMR 7.00: Appendix C(6)(a) and by the procedures of 310 CMR 7.00: Appendix C(6)(b) and (c). (g) Whenever the Department determines to hold a public hearing, the duration of the public comment period shall automatically extend to the close of the public hearing. The hearing officer may further extend the comment period by announcing the extension and its duration at the public hearing. (h) At a public hearing, the Department may:

1. 1. Establish reasonable limits upon the time allowed for oral statements; and
2. 2. Require the submission of statements in writing.

1. (i) The Department shall keep records of the comments and also of the issues raised during the public participation process so that EPA may fulfill its obligation under 42 U.S.C. 7401, § 505(b)(2) to determine whether a citizen petition should be granted, and such records shall be available to the public.
2. (j) After the close of the public comment period, the Department will forward to the EPA a proposed operating permit (proposed permit), together with other required supporting information pertaining to the proposed permit. NOTE: The Department as part of the submittal of the proposed permit to the EPA shall notify the EPA and any affected state in writing of any refusal by the Department to accept any recommendations on the draft permit that the affected state submitted during the draft permit review period. The notice shall include the Department's reason for not accepting any such recommendation; the Department is not required to accept recommendations that are not based on an applicable requirement or the requirements of 310 CMR 7.00: Appendix C.
3. (k) If EPA submits an objection to the proposed permit in writing, during the 45 day period following EPA's receipt of the proposed permit, the Department shall revise, and resubmit a proposed operating permit to the EPA. EPA shall send a copy of its objection to the applicant. The Department will not issue a final permit prior to the expiration of the 45-day period for EPA objection unless EPA notifies DEP of its intention not to object.
4. (l) If the Department fails, within 90 days after the receipt of an objection under 310 CMR 7.00: Appendix C(6)(k), to revise and submit a proposed permit in response to the objection, the EPA may issue or deny the permit in accordance with the requirements of the Federal Program promulgated under 42 U.S.C. 7401, Title V.

5. (m) If EPA does not object to the proposed permit, any person may petition the EPA during the 60 days after the expiration of the EPA's 45 day review period, and may request that EPA object.

   1. 1. The petition shall be based only on objections that were raised with reasonable specificity during the public comment period, unless the petitioner demonstrates that it was impracticable to raise such objections within such period, or unless the grounds for such objection arose after such period.
   2. 2. If the EPA is convinced that such objection meets the criteria established in 310 CMR 7.00: Appendix C(6)(m)1., and objects, the Department shall not issue the operating permit until the EPA's objection is resolved.
   3. 3. If the Department has issued an operating permit prior to receipt of an EPA objection, the EPA may modify, terminate, or revoke the permit. The Department may thereafter issue only a revised permit that satisfies EPA's objection. In any case, the stationary source will not be in violation of the requirement to have submitted a timely and complete application.
6. (n) The Department shall transmit final operating permits to EPA.

7. (7) Operational Flexibility.

   1. (a) Section 502(b)(10) changes

      1. 1. Any facility issued an operating permit may make Section 502(b)(10) changes through the procedures set forth in 310 CMR 7.00: Appendix C(7).
      2. 2. The Department shall attach the notice of the change to the operating permit, but shall not revise the operating permit until the next application for renewal.
      3. 3. If the requirements of 310 CMR 7.00: Appendix C(7) are met, the change may be made 15 days after receipt of the notice of the change by the Department or EPA whichever is later.

      4. 4. No change may be made pursuant to 310 CMR 7.00: Appendix C(7) if the change would:

         1. a. violate an applicable requirement(s);

Appendix C: continued

1. b. contravene a federally enforceable permit term(s) and condition(s) that is monitoring (including test methods), recordkeeping, reporting, or compliance certification;
2. c. is a modification under 42 U.S.C. 7401, Title I; or
3. d. is in excess of the emissions allowed under the operating permit (whether expressed therein as a rate of emissions or in terms of total emissions).

4. 5. A responsible official must provide the Department and EPA with written notification at least 15 days in advance of the proposed changes. For each such change, the written notification required above shall include:

   1. a. A brief description of the change within the permitted facility;
   2. b. The date on which the change will occur;
   3. c. Any change in emissions; and
   4. d. Any permit term or condition that is no longer applicable as a result of the change.
5. 6. The permit shield provided for under 310 CMR 7.00: Appendix C(12) shall not apply to changes made under 310 CMR 7.00: Appendix C(7).

6. (b) Intra-facility Emissions Trading.

   1. 1. Pursuant to a request from a responsible official in an operating permit application, the Department shall issue an operating permit that contains terms and conditions that allow for the trading of emissions increases and decreases within the permitted facility. The Department shall not include in these trading provisions any emissions units for which emissions are not quantifiable or for which there are no replicable procedures to enforce the emissions trades.
   2. 2. Any requests made under 310 CMR 7.00: Appendix C(7) are solely for the purposes of complying with the federally-enforceable emissions cap that is established in the permit independent of otherwise applicable requirement(s).

   3. 3. Emission trades may be implemented provided the Department and EPA are notified at least 15 business days in advance of the proposed changes. For each change, the following must be provided:

      1. a. A description of the change within the permitted facility;
      2. b. The date on which the change will occur;
      3. c. Any change in emissions; and
      4. d. How these increases and decreases in emissions will comply with the terms and conditions of the permit.
   4. 4. The 15 day notice shall commence upon the receipt by the Department or EPA whichever is later.
   5. 5. The permit shield provided for under 310 CMR 7.00: Appendix C(12) shall apply to the permit terms and conditions that allow such increases and decreases in emissions.
   6. 6. Any intra-facility change that does not qualify pursuant to 310 CMR 7.00: Appendix C(7)(b)2. is required to be submitted to the Department pursuant to 310 CMR 7.00: Appendix B.

7. (8) Administrative Amendments, Minor Modifications and Significant Modifications.

   1. (a) The following changes shall require a revision to an operating permit:

      1. 1. An Administrative Amendment, if the proposed change is:

         1. a. A change in business name, division name, or facility name; mailing address; company stack designation; telephone number; or name of facility contact; or
         2. b. A transfer of ownership of the facility for which an operating permit is in effect, where the Department determines that no other change in the permit is necessary, provided that a written agreement containing a specific date for transfer of permit responsibility, coverage, and liability between the current and new permittee has been submitted to the Department; or
         3. c. A change to monitoring, reporting, recordkeeping, or testing requirements that is more frequent than previously specified in the operating permit; or
         4. d. The Department, EPA or permittee determines that the operating permit contains typographical errors.

      2. 2. A Minor Modification, if the proposed change:

         1. a. Does not violate any applicable requirements;
         2. b. Does not involve a significant change to existing monitoring, reporting, or recordkeeping requirements in the permit;

Appendix C: continued

1. c. Does not require or change a case-by-case determination of an emission limitation or other standard, or a source-specific determination for temporary sources of ambient impacts, or a visibility or increment analysis;
2. d. Does not seek to establish or change a permit term or condition for which there is no corresponding underlying applicable requirement and that the facility has assumed to avoid an applicable requirement to which the facility would otherwise be subject; and
3. e. Is not a modification under any provision of 42 U.S.C. 7401, Title I.
4. 3. A Significant Modification is a permit modification that does not qualify as a minor permit modification or as an administrative amendment, or is a significant change to any monitoring, reporting or recordkeeping requirements as required by any operating permit.

5. (b) Processing an Administrative Amendment. For an administrative amendment to an operating permit a timely and complete application is one filed on forms specified by the Department and in accordance with the timelines established at 310 CMR 7.00: Appendix C(4).

   1. 1. The Department shall take final action within 15 days of receipt of said application and may incorporate such changes without providing notice to the public or affected states. The Department shall submit a copy of the revised permit to EPA.
   2. 2. The source may make the change upon receipt by the Department of the proposed administrative amendment.
   3. 3. An administrative amendment for purposes of the acid rain portion of the operating permit shall be governed by 40 CFR part 72.
   4. 4. The permit shield provisions of 310 CMR 7.00: Appendix C(12) shall not apply to changes made under 310 CMR 7.00: Appendix C(8).

6. (c) Processing a Significant Modification. For a significant modification to an operating permit an application must be filed on forms specified by the Department and in accordance with the timelines established at 310 CMR 7.00: Appendix C(4), and shall:

   1. 1. Be subject to all of the same requirements as a new operating permit application including review by EPA, affected states and the public under 310 CMR 7.00: Appendix C;
   2. 2. Focus on the proposed significant modifications to the issued operating permit only;
   3. 3. A significant modification for purposes of the acid rain portion of the operating permit shall be governed by 40 CFR part 72; and
   4. 4. For significant modifications which have been reviewed and approved under 310 CMR 7.02(4) or (5), the construction, substantial reconstruction, or alteration may commence, but may not be operated if the existing operating permit would prohibit such construction or change in operation, during the period after receipt of the required significant modification application by the Department, but before the Department revises the operating permit. If the existing operating permit would not prohibit such construction or change in operation, then operations may commence prior to final approval of the modification to the operating permit. The permit shield provided under 310 CMR 7.00: Appendix C(12) applies to any changes resulting from such significant modification.

7. (d) Processing a Minor Modification. For a minor modification to an operating permit an application must be filed on forms specified by the Department and in accordance with the timelines established at 310 CMR 7.00: Appendix C(4).

   1. 1. An application requesting the use of minor permit modifications procedures shall include the following:

      1. a. A description of the change, the emissions resulting from the change, and any new applicable requirements that will apply if the change occurs;
      2. b. The facility's suggested draft permit;
      3. c. Certification by a responsible official that the proposed modification meets the criteria for use of minor permit modification procedures and a request that such procedures be used; and
      4. d. Completed forms for the Department to use to notify the EPA and affected states. Said notification shall be made within five business days of receipt by the Department of a complete permit modification application.
   2. 2. A minor modification for purposes of the acid rain portion of the operating permit shall be governed by 40 CFR part 72.
   3. 3. The source may make the change upon receipt by the Department of the proposed modification.

Appendix C: continued

1. 4. The permit shield provisions of 310 CMR 7.00: Appendix C(12) shall not apply to changes made under 310 CMR 7.00: Appendix C(8).
2. (e) Revisions to Operating Permit Not Required. A revision to an operating permit is not required for increases in emissions that are authorized by allowances acquired pursuant to the Acid Rain program under Title IV, provided that such increases do not require an operating permit revision under any other applicable requirement.

3. (9) Testing and Monitoring Requirements.

   1. (a) Any facility, for which an operating permit specifies testing and monitoring requirements shall do so in a manner and time as specified in the operating permit.

   2. (b) Each operating permit shall contain the following monitoring requirements:

      1. 1. The permittee shall comply with all emissions monitoring and analysis procedures or test methods required under the applicable requirements, including those promulgated pursuant to 42 U.S.C. 7401, The Clean Air Act, §§ 504(a) and 504(b) or 114(a)(3);
      2. 2. If the applicable requirement does not require periodic testing or instrumental or noninstrumental monitoring (which may consist of recordkeeping designed to serve as monitoring), then the permittee shall perform periodic monitoring sufficient to yield reliable data from the relevant time period that is representative of the source's compliance with the permit. Such monitoring requirements shall assure use of terms, test methods, units, averaging periods, and other statistical conventions consistent with the applicable requirement. Recordkeeping provisions may be sufficient to meet the requirements; and
      3. 3. The permittee shall comply with requirements concerning the use, maintenance and installation of monitoring equipment or methods as the Department deems appropriate.
   3. (c) Any facility required to install a continuous emissions monitor (CEM) shall install, calibrate, operate, certify and maintain the CEM to continuously measure and continuously record the required emissions and other data as specified in the operating permit.
   4. (d) Any person required to perform monitoring shall maintain records of and report to the Department in accordance with the requirements established in the facility operating permit and 310 CMR 7.00: Appendix C(10).

4. (10) Recordkeeping and Reporting Requirements.

   1. (a) Upon the Department's request, any record relevant to the operating permit or to the emissions of any air contaminant from the facility shall be submitted to the Department within 30 days of the request by the Department or within a longer time period, if approved in writing by the Department, and shall be transmitted on paper, on computer disk, or electronically at the discretion of the Department.

   2. (b) The permittee shall maintain records of all monitoring data and supporting information on-site for a period of at least five years from the date of the monitoring sample, measurement, report or initial operating permit application. Supporting information includes, at a minimum, all calibration and maintenance records and all original strip-chart recordings for continuous monitoring instrumentation, and copies of all reports required by the operating permit, and any other information required to interpret the monitoring data. Records required to be maintained shall include, where applicable:

      1. 1. The date, place as defined in the permit, and time of sampling or measurements;
      2. 2. The date(s) analyses were performed;
      3. 3. The company or entity that performed the analyses;
      4. 4. The analytical techniques or methods used;
      5. 5. The results of such analyses; and
      6. 6. The operating conditions as existing at the time of sampling or measurement.
   3. (c) The permittee shall report a summary of all monitoring data and related supporting information to the Department at least every six months in a format and time frequency specified by the Department.

Appendix C: continued

1. (d) Upon request, an owner or operator shall also furnish to the Department copies of records required to be kept by the operating permit or, for information claimed to be confidential, said person may furnish such records directly to the Department and EPA, along with a claim of confidentiality.

2. (e) The following shall be made readily available for inspection by the Department:

   1. 1. The operating permit together with any amendments thereto;
   2. 2. A diagram of the facility indicating the location of all equipment and control apparatus, any stack designation assigned by the Department, and any stack designation assigned by the facility;
   3. 3. Records documenting any and all use of any equipment, control apparatus, or other source operation including, but not limited to, the kind and amount of air contaminant emitted, rate of production and hours of operation, raw material throughput; and
   4. 4. Records documenting any construction, substantial reconstruction or alteration, including the dates thereof, of any equipment or control apparatus.
3. (f) The permittee shall promptly report to the Department all instances of deviations from permit requirements. This report shall include the deviation itself, including those attributable to upset conditions as defined in the permit, the probable cause of the deviation, and any corrective actions or preventive measures taken.
4. (g) For facilities permitted to operate under alternative operating scenarios, the permittee shall establish and maintain a log at the facility which indicates the scenario under which the facility is operating. The permittee shall record changes from one scenario to another contemporaneously with the change.
5. (h) All required reports must be certified by a responsible official consistent with 310 CMR 7.00: Appendix C(5)(c).

6. (11) Application Shield.

   1. (a) An application shield provides that an owner or operator of a facility subject to 310 CMR 7.00: Appendix C shall not be subject to penalties for operating without an operating permit during the time the application shield is in effect.

   2. (b) An application shield is in effect for an owner or operator of a facility subject to 310 CMR 7.00: Appendix C if:

      1. 1. A timely and complete application for an initial application or renewal of an operating permit has been submitted pursuant to 310 CMR 7.00: Appendix C(3)(a) (facility may continue to operate until the Department takes final action on the application); and
      2. 2. The applicant submits any information requested in writing by the Department within the timelines established.
   3. (c) This application shield does not relieve an owner or operator of a facility subject to 310 CMR 7.00: Appendix C from complying with the terms and conditions of any operating permit or applicable requirement. For initial permit issuance, the application shield does not relieve an owner or operator of said facility from complying with any applicable state and federal laws and regulations.
   4. (d) The submittal of a complete application shall not affect the requirement that any source have a preconstruction approval under 310 CMR 7.02 if applicable.
   5. (e) In the event that the Department has not taken final action on an operating permit renewal application prior to an existing operating permit's expiration date, the permit shall remain in effect until the Department takes final action on the renewal application, provided that a timely and complete renewal application has been submitted in accordance with 310 CMR 7.00: Appendix C(13).

   6. (f) An application shield terminates automatically upon either of the following:

      1. 1. The Department's final action on the application for the initial operating permit or for the renewal; or
      2. 2. Failure of the applicant to submit additional information requested by the Department in writing within the deadline established by the Department pursuant to 310 CMR 7.00: Appendix C(5)(f).
   7. (g) An application shield terminated pursuant to 310 CMR 7.00: Appendix C(5)(f) will be reinstated upon receipt of a submittal meeting all the requirements of a complete initial permit application, including any application fee.

Appendix C: continued

1. (12) Permit Shield.

   1. (a) An owner or operator of a facility subject to 310 CMR 7.00: Appendix C will not be subject to enforcement action for operating not in compliance with all applicable requirements provided said facility is in compliance with its permit terms and the Department expressly included in the facility's operating permit a provision stating that compliance with the conditions of the permit shall be deemed compliance with any applicable requirements as of the date of permit issuance, provided that:

      1. 1. Such applicable requirements are included and are specifically identified in the permit; or
      2. 2. The Department, in acting on the permit application or revision, determines in writing that other requirements specifically identified are not applicable and the permit includes the determination or a concise summary thereof.

   2. (b) Nothing in 310 CMR 7.00: Appendix C(12)(a) or in any operating permit shall alter or affect the following:

      1. 1. The provisions of 42 U.S.C. 7401, § 303 (Emergency Orders), including the authority of the EPA under 42 U.S.C. 7401, § 303;
      2. 2. The liability of an owner or operator of a facility subject to 310 CMR 7.00: Appendix C for any violation of applicable requirements prior to or at the time of permit issuance;
      3. 3. The applicable requirements of the acid rain program, consistent with 42 U.S.C. 7401, § 408(a); or
      4. 4. The ability of EPA to obtain information from a source pursuant to 42 U.S.C. 7401, § 114.
   3. (c) In the event that the Department has not taken final action on an operating permit renewal application prior to an existing operating permit's expiration date, the permit shall remain in effect until the Department takes final action on the renewal application, provided that a timely and complete renewal application has been submitted in accordance with 310 CMR 7.00: Appendix C(13).

2. (13) Renewals.

   1. (a) The expiration of an operating permit terminates the right of the owners or operators of a facility subject to 310 CMR 7.00: Appendix C to operate any emission unit, control equipment or associated equipment covered by the permit unless a timely and complete renewal application is submitted pursuant to 310 CMR 7.00: Appendix C(4)(b)4.
   2. (b) Applications for renewal of operating permits are subject to the same requirements for public participation and EPA and affected state(s) oversight that apply to initial permit applications (310 CMR 7.00: Appendix C(6)).
   3. (c) An application for renewal of an operating permit shall include the results of such testing as is necessary, at the discretion of the Department, to verify that emissions from the equipment or control apparatus meet the compliance emission limitations established in an approval issued pursuant to 310 CMR 7.00 or an operating permit issued under 310 CMR 7.00: Appendix C. If such testing is required, the applicant shall comply with the procedures outlined in 310 CMR 7.00: Appendix C(9) testing and monitoring.
   4. (d) Any owner or operator of a facility subject to 310 CMR 7.00: Appendix C filing a timely and complete application for renewal of an operating permit shall be provided with an Application shield as prescribed in 310 CMR 7.00: Appendix C(11).

3. (14) Reopenings for Cause.

   1. (a) The Department shall reopen and amend a permit when:

      1. 1. Additional federal requirements (including, but not limited to, standards or requirements pursuant to 42 U.S.C. 7401, §§ 112(d), 112(g), 112(h) and 112(j)) become applicable to a facility with a remaining permit term of three or more years. Such a reopening and amendment shall be completed not later than 18 months after promulgation of the applicable federal requirement. No such reopening is required if the effective date of the requirement is later than the date on which the permit is due to expire unless the original permit or any of its terms and conditions has been extended pursuant to 310 CMR 7.00: Appendix C(11)(e).
      2. 2. Additional requirements (including excess emission requirements) become applicable to an affected source under the acid rain program. Upon approval by the EPA, excess emissions offset plans shall be deemed to be incorporated into the permit.

Appendix C: continued

1. 3. The Department or EPA determines that the permit contains a material mistake or that inaccurate statements were made in establishing the emissions standards, limitations, or other terms or conditions of the permit.
2. 4. The Department or EPA determines that the permit must be revised to assure compliance with the applicable requirements.
3. (b) Proceedings to reopen and issue a permit shall follow the same procedures as apply to initial permit issuance and shall affect only those parts of the operating permit for which cause to reopen exists. Such reopenings shall be made as expeditiously as practicable.
4. (c) Reopening under 310 CMR 7.00: Appendix C(14)(a) shall not be initiated before a notice of such intent is provided to the facility by the Department at least 30 days in advance of the date that the permit is to be reopened, except that the Department may provide a shorter time period in the case of an emergency.

5. (15) General Operating Permits.

   1. (a) The Department may, after notice and opportunity for public comment provided at 310 CMR 7.00: Appendix C(6), issue a general operating permit applicable to numerous similar operations or facilities. Each general operating permit shall specify criteria by which facilities may qualify for the general operating permits. General operating permits shall contain as applicable, the requirements of 310 CMR 7.00: Appendix C(3)(g).
   2. (b) Facilities subject to the requirements of 310 CMR 7.00: Appendix C(2) (Applicability) may seek a general operating permit previously issued by the Department, where appropriate, by applying to the Department under the requirements of 310 CMR 7.00: Appendix C(5). An application shield shall apply (310 CMR 7.00: Appendix C(11)).
   3. (c) Affected units subject to the acid rain requirements of 42 U.S.C. 7401, Title IV are not eligible for general operating permits unless otherwise provided for under regulations promulgated by EPA under 42 U.S.C. 7401, Title IV.
   4. (d) The approval of a facility's request for authorization to operate under a general operating permit shall not be a final permit action for the purpose of judicial review.
   5. (e) Any permittee in possession of a general operating permit who proposes a modification to the equipment or control device which deviates from any term or condition of the general operating permit, shall apply for an individual operating permit consistent with the rules and procedures under 310 CMR 7.00: Appendix C.
   6. (f) Notwithstanding the shield provisions of 310 CMR 7.00: Appendix C(12) the owner or operator of the facility shall be subject to enforcement action for operation without an operating permit if the facility is later determined not to qualify for the conditions and terms of the general permit.
   7. (g) If a facility can no longer be covered under the general permit terms and conditions, the owner or operator of said facility must apply for an individual operating permit.

Appendix C: continued

1. (16) Emergency Conditions.

   1. (a) The owner or operator of a facility subject to 310 CMR 7.00: Appendix C shall be shielded from enforcement action brought for non-compliance with technology-based emission limits specified in the operating permit as a result of an emergency. An emergency constitutes an affirmative defense to an action brought for noncompliance with such technology-based emission limitations if the conditions of 310 CMR 7.00: Appendix C(16) are met. The affirmative defense of emergency shall be demonstrated through properly signed, contemporaneous operating logs, or other relevant evidence that:

      1. 1. An emergency occurred and that the cause(s) of the emergency can be identified;
      2. 2. The facility was at the time being properly operated;
      3. 3. During the period of the emergency all reasonable steps were taken as expeditiously as possible to minimize levels of emissions that exceeded the emission standards, or other requirements in the operating permit; and
      4. 4. Notice of the emergency was submitted to the Department within two business days of the time when emission limitations were exceeded due to the emergency. This notice fulfills the requirement of 310 CMR 7.00: Appendix C(10). This notice must contain a description of the emergency, any steps taken to mitigate emissions, and corrective actions taken.
   2. (b) In any enforcement proceeding, the permittee seeking to establish the occurrence of an emergency has the burden of proof.
   3. (c) This provision is in addition to any emergency or upset provision contained in any applicable requirement.