On October 23, 1997, citing significant technical difficulties with respect to PM2.5

15 monitoring, emissions estimation, and modeling, the EPA established a policy, known as the

16 PM10 Surrogate Policy (U.S. EPA 1997). This policy allowed permit applicants to use

17 compliance with the applicable PM10 requirements as a surrogate approach for meeting PM2.5

18 New Source Review (NSR) requirements until the technical difficulties were resolved. On May

19 16, 2008, the EPA promulgated final rules governing the implementation of the NSR program

20 for PM2.5, which included several changes to the way in which the PM10 Surrogate Policy would

21 be applied to the permitting process for permits involving PM2.5. (73 FR 28321). With regard to

22 nonattainment NSR permits, the rule provided that as of July 15, 2008 (the rule’s effective date),

23 states would no longer be able to use the PM10 Surrogate Policy to satisfy the requirements for

PM2.5. With regard to PSD permits, the rule provided that PSD permits 1 issued under the federal

2 PSD program at 40 CFR 52.21 would no longer be allowed to rely on the PM10 Surrogate Policy

3 as of the effective date of the rule. The exception to this outcome was that the rule also provided

4 a “grandfathering provision” allowing applicants for federal PSD permits covered by 40 CFR

5 52.21, with complete permit applications submitted as of July 15, 2008, to continue relying on

6 the PM10 Surrogate Policy. The 2008 rule also provided that states with approved PSD programs

7 for PM2.5 could continue to use the PM10 Surrogate Policy until May 2011 (when State

8 Implementation Plan (SIP) revisions containing the new requirements in the 2008 rule were due),

9 or until the EPA approved the revised SIP for PM2.5, whichever occurred first.

10 On June 1, 2009, in response to a petition challenging the continued use of the PM10

11 Surrogate Policy for issuing PSD permits, the EPA issued a 3-month administrative stay of the

12 grandfathering provision for PM2.5 affecting federal PSD permits to give the EPA time to


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