The elimination of the Startup, Malfunction, and Breakdown (SMB) exemption by the Illinois Environmental Protection Agency (IEPA) represents a significant change to air permit compliance in Illinois for permitted sites that have relied on this provision in the past. Historically, the SMB exemption allowed facilities temporary relief from certain state emissions standards during periods of startup, shutdown, or malfunction.
Following directives from the US EPA, IEPA proposed the elimination of all exemptions for SMB events. This proposal was finalized on July 25, 2023 and it sought to repeal the entirety of
35 IAC 201 Subpart I: Malfunctions, Breakdowns, or Startups. SMB exemptions are included in facilities’ air permits to provide safeguard against penalties for short-term excess emission events. These events typically occur due to unforeseen circumstances such as power outages and severe weather, which compel a facility to shut down and restart equipment.
While adopting these changes, the Illinois Pollution Control Board (IPCB) established a sub docket to address potential amendments that would consider alternative compliance options rather than a complete elimination of the SMB exemption. On August 7, 2023, the Illinois Environmental Regulatory Group (IERG) and a coalition of other companies submitted rulemaking proposals under the sub docket to amend 35 IAC 212, 215, and 216. Their aim is to establish alternate emission limitations during periods of startup, shutdown, breakdown, and malfunction. These proposals were approved by the IPCB for a hearing scheduled for Wednesday, September 27, 2023.
Changes to Exemptions
At present, SMB exemptions are no longer in effect in 35 IAC 201. However, it remains uncertain how the IEPA will proceed with the removal of these exemptions from existing permits. Presumably, the IEPA will send a letter to any facility whose air permit contains these provisions, as waiting until permit renewal will likely not be fast enough from IEPA’s perspective. Despite this uncertainty, Trinity provides the following recommendations to facilities with SMB exemptions in their permits:
Evaluate your facility’s compliance history regarding SMB events. Determine whether your site actively relies on the existing SMB exemption. If so, develop a plan for handling future SMB events to ensure compliance. It is important to avoid recurrent excess emission events. The IEPA is likely to be more inclined to issue a violation notice to a facility with repeated excess emission events.
Monitor and actively engage in the sub docket proceedings if interested and/or affected.