[Code of Federal Regulations]
[Title 40, Volume 15]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR69.11]

[Page 192-194]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 69_SPECIAL EXEMPTIONS FROM REQUIREMENTS OF THE CLEAN AIR ACT
--Table of Contents
 
                             Subpart A_Guam
 
Sec. 69.11  New exemptions.




                             Subpart A_Guam

Sec.
69.11 New exemptions.
69.12 Continuing exemptions.
69.13 Title V conditional exemption.

                        Subpart B_American Samoa

69.21 New exemptions. [Reserved]
69.22 Title V conditional exemption.

         Subpart C_Commonwealth of the Northern Mariana Islands

69.31 New exemptions. [Reserved]
69.32 Title V conditional exemption.

                    Subpart D_The U.S. Virgin Islands

69.41 New exemptions.

                            Subpart E_Alaska

69.51 Motor vehicle diesel fuel.
69.52 Non-motor vehicle diesel fuel.

    Authority: 42 U.S.C. 7545(c), (g) and (i), and 7625-1.

    Source: 50 FR 25577, June 20, 1985, unless otherwise noted.



    (a) Pursuant to section 325(a) of the Clean Air Act (``CAA'') and a 
petition submitted by the Governor of Guam (``Petition''), the 
Administrator of the Environmental Protection Agency (``EPA'') 
conditionally exempts electric generating units on Guam from certain CAA 
requirements.
    (1) A waiver of the requirement to obtain a prevention of 
significant deterioration (``PSD'') permit prior to construction is 
granted for the electric generating units identified in the Petition as 
Cabras Diesel No. 1, the Tenjo project, and three 6-megawatt diesel 
generators to be constructed at Orote, with the following conditions:
    (i) Each electric generating unit shall not be operated until a 
final PSD permit is issued for that unit;
    (ii) Each electric generating unit shall not be operated until that 
unit complies with all requirements of its PSD permit, including, if 
necessary, retrofitting with the best available control technology 
(``BACT'');
    (iii) The PSD application for each electric generating unit shall be

[[Page 193]]

deemed complete without the submittal of the required one year of on-
site meteorological data, however, EPA will not issue a PSD permit to 
such a unit prior to submission of such data or data which the EPA finds 
to be an equivalent and acceptable substitute; and
    (iv) If any electric generating unit covered by this paragraph is 
operated either prior to the issuance of a final PSD permit or without 
BACT equipment, that electric generating unit shall be deemed in 
violation of this waiver and the CAA beginning on the date of 
commencement of construction of that unit.
    (2) A waiver of the three nonattainment area requirements (a 
construction ban, the use of lowest achievable emission rate control 
equipment, and emission offset requirements) currently applicable to the 
Cabras-Piti area is granted for electric generating units with the 
following conditions:
    (i) A tower and meteorological station shall be constructed in the 
Cabras-Piti area by May 1, 1993;
    (ii) Meteorological data shall be collected from the Cabras-Piti 
station which is sufficient to run air quality models both to 
demonstrate no current exceedences of the primary national ambient air 
quality standard for sulfur dioxide (``sulfur dioxide NAAQS''), as set 
forth at 40 CFR 50.4, and sufficient to submit a complete request for 
redesignation of the area to attainment;
    (iii) Ambient sulfur dioxide monitors shall be installed and 
operated in accordance with the procedures set forth at 40 CFR part 58, 
the PSD air monitoring requirements, and any additional monitoring 
requested by EPA to verify the efficacy of the intermittent control 
strategy (``ICS'') of fuel switching;
    (iv) Within three years from the effective date of this waiver, the 
Governor of Guam shall submit to the EPA a complete request that the 
Cabras-Piti area be redesignated to attainment for the sulfur dioxide 
NAAQS;
    (v) Electric generating units to be constructed in the Cabras-Piti 
area must submit applications for PSD permits as though the area had 
been redesignated to attainment for the sulfur dioxide NAAQS;
    (vi) The Cabras-Piti area electric generating units shall comply 
with the fuel switching ICS described in paragraph (a)(3)(i) of this 
section;
    (vii) If the collected data and air quality analysis does not 
demonstrate to the EPA's satisfaction that there are no current or 
likely future exceedences of the sulfur dioxide NAAQS, the EPA will so 
notify the Governor of Guam;
    (viii) Within six months of such notification, the Governor of Guam 
shall submit to the EPA an implementation plan which includes a schedule 
of emission reductions and/or control measures that will ensure 
achievement of the sulfur dioxide NAAQS within one year of submission of 
the implementation plan; and
    (ix) If the Governor of Guam fails to submit an implementation plan 
in a timely fashion, or if EPA disapproves that implementation plan, all 
electric generating units subject to the fuel switching ICS described in 
paragraph (a)(3)(i) of this section shall be fueled exclusively with low 
sulfur fuel.
    (3) A waiver of the prohibition on the use of the ICS of fuel 
switching is granted for electric generating units with the following 
conditions:
    (i) The protocol to be followed for the ICS of fuel switching for 
electric generating units shall be the one set forth in a separate EPA 
document entitled Cabras-Piti Area Intermittent Control Strategy; and
    (ii) This protocol may be modified by the EPA to protect against 
exceedences of the sulfur dioxide NAAQS and to accommodate additional 
electric generating units.
    (b) The waiver will be periodically reviewed (at intervals no longer 
than three years) and, as deemed appropriate by the Administrator, can 
be modified or terminated at any time through rulemaking procedures.
    (c) Pursuant to Section 325(a) of the CAA and a petition submitted 
by the Governor of Guam on July 14, 1995 (``1995 Petition''), the 
Administrator of EPA conditionally exempts Guam Power Authority 
(``GPA'') from certain CAA requirements.

[[Page 194]]

    (1) A waiver of the requirement to obtain a PSD permit prior to 
construction is granted for the electric generating unit identified in 
the 1995 Petition as Cabras Unit No. 4, with the following conditions:
    (i) Cabras Unit No. 4 shall not operate until a final PSD permit is 
received by GPA for this unit;
    (ii) Cabras Unit No. 4 shall not operate until it complies with all 
requirements of its PSD permit, including, if necessary, retrofitting 
with BACT;
    (iii) If Cabras Unit No. 4 operates either prior to the issuance of 
a final PSD permit or without BACT equipment, Cabras Unit No. 4 shall be 
deemed in violation of this waiver and the CAA beginning on the date of 
commencement of construction of the unit.
    (2) A waiver of the requirement to obtain a PSD permit prior to the 
operation of the unit identified in the 1995 Petition as Cabras Unit No. 
3 is granted subject to the following conditions:
    (i) The protocol to be followed for the ICS of fuel switching for 
electric generating units shall be modified to require the use of fuel 
oil with a sulfur content of 2.00 percent or less during offshore wind 
conditions. This fuel shall be fired in Cabras Power Plant Units Nos. 1 
through 3 and in Piti Power Plant Units Nos. 4 and 5.
    (ii) Cabras Unit No. 3 shall operate in compliance with all 
applicable requirements in its permits to construct and to operate as 
issued by Guam Environmental Protection Agency.
    (iii) The waiver provisions allowing Cabras Unit No. 3 to operate 
prior to issuance of a PSD permit shall expire on August 15, 1996, or 
upon the receipt by GPA of a PSD permit for Cabras Unit No. 3, whichever 
event occurs first.
    (3) On or before October 15, 1995, GPA shall submit to EPA, Region 
IX, a report concerning the operation of Cabras Unit No. 3 and the 
construction of Cabras Unit No. 4. The report shall contain:
    (i) A summary of GPA's conclusions from its wind tunnel study;
    (ii) A description of the alternatives available to assure 
compliance with all air quality requirements, including PSD 
requirements, during the operation of Cabras Units Nos. 3 and 4;
    (iii) A description of the alternative GPA chooses to assure 
compliance with all air quality requirements, including PSD 
requirements, during the operation of Cabras Units Nos. 3 and 4; and
    (iv) A plan of implementation by GPA.
    (d)(1) Pursuant to Section 325(a) of the CAA and a petition 
submitted by the Governor of Guam on February 11, 1997 (``1997 
Petition''), the Administrator of EPA conditionally exempts Piti Power 
Plant Units No. 8 and No. 9 from certain CAA requirements.
    (2) A waiver of the requirement to obtain a PSD permit prior to 
construction is granted for the electric generating units identified in 
the 1997 Petition as Piti Units No. 8 and No. 9 (two 45 megawatt 
baseload diesel electric generators and associated waste heat recovery 
boilers with a steam generator), with the following conditions:
    (i) Piti Units No. 8 and No. 9 shall not operate until final PSD 
permits are received for these units;
    (ii) Piti Units No. 8 and No. 9 shall not operate until they comply 
with all requirements of their PSD permits, including, if necessary, 
retrofitting with BACT;
    (iii) If either Piti Units No. 8 or No. 9 operate either prior to 
the issuance of a final PSD permit or without BACT equipment, the Piti 
Unit(s) shall be deemed in violation of this waiver and the CAA 
beginning on the date of commencement of construction of the unit(s).

[58 FR 43043, Aug. 12, 1993, as amended at 60 FR 48038, Sept. 18, 1995; 
62 FR 44416, Aug. 21, 1997]