21.3
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
August 26, 1981
Mr. Charles Tompkins, P.E.
Manager, Air Quality
Corporate Environmental Protection
Kimberly-Clark Corporation
Noenah, Wisconsin 54956
Dear Mr. Tompkins:
This is in response to your August 6, 1981, letter in which you asked
our opinion on an issue involving EPA's requirements for nonattainment
areas. Kimberly-Clark Corporation is proposing to install a cogeneration
project at its tissue paper products mill in an area which is currently
designated nonattainment for NOx. The project will result in NOx increases
of over 100 tons per year, subjecting it to new source review offset
requirements.
An issue arises because one of the provisions of the South Coast Air
Quality Management District (AQMD) plan exempts cogeneration projects from
the necessity of providing 100 percent of all nonattainment area offsets if
all available onsite offsets are utilized and lowest achievable emission
rate technology is installed. EPA declared this provision deficient, but
did not disapprove it. Instead, EPA conditionally approved the plan, giving
the South Coast AQMD until November 7, 1981, to correct this and other
deficiencies. In the interim period before the cogeneration exemption is
required to be eliminated, you want to take advantage of the exemption, and
wish to know which of the following conditions must be met by November 7,
1981:
(1) File a complete application for the cogeneration project
(2) Receive a construction permit
(3) Commence construction
You believe you can meet the first condition, but not the others. This
issue is not addressed in the South Coast plan.
I have discussed this issue with EPA's Office of General Counsel and
Office of Air Quality Planning and Standards, and both are in agreement that
the NOx Offset exemption can be applied to the cogeneration project if a
complete application is filed
before November 7, 1981. This decision is consistent with the approach
Congress applied towards growth restrictions at Section 110(a)(2)(I) of the
Clean Air Act. Section 110 (a)(2)(I) provides that no major stationary
source shall be constructed or modified in a nonattainment area after June
30, 1979, unless, as of the time of application for a permit for such
construction or modification, the applicable state plan meets Part D
requirements. Although the situation in this case is different, the key
point in both this case and the Section 110(a)(2)(I) provision is that an
approved plan is being carried out at the time of permit application.
I wish to point out that this decision in no way represents approval of
the project. Other nonattainment requirements must be met before such
approval can be granted. If you have any questions concerning this
response, please contact Robert Myers of my staff at (202) 755-2564.
Sincerely yours,
Edward E. Reich, Director
Division of Stationary Source Enforcement
cc: Mike Trutna
Eric Smith
Rick Sugarek