### STA1E OF ARKANSAS 

## MIKE BEEBE



### GoVERNOR January 7, 2014



### Ron Curry, Region VI, Regional Administrator United States EPA Region VI 1445 

### Ross Avenue, Suite 1200 

### Dallas, TX 75202-2733



### Re: Arkansas State Implementation Plan ("SIP") Revision

Dear Mr. Curry: 

### RECEIVED- GPDL 

### AIR Plt.NNir:G SEC. 

### 14 ftPR 25 PH 6: 03

The Arkansas Department of Environmental Quality ("ADEQ") hereby respectfully submits to the United States Environmental Protection Agency ("EPA") revisions to the Arkansas SIP, including the Arkansas Pollution Control and Ecology Commission's ("Commission") Regulation No. 19, 

### Regulations of the Arkansas Plan of Implementation for Air Pollution Control, for approvaL The Commission adopted changes to Regulation No. 19 

### on June 28, 2013, 

### in response to EPA's Final Rule "Prevention of Significant Deterioration ["PSD"] and Title V Greenhouse Gas ["GHG"] Tailoring Rule Step 3 and GHG Plantwide Applicability Limits ["PALs"]" (74 

### Fed. Reg. 41051, 

### July 12, 2012), 

### which finalized an approach to assist state and local permitting authorities in streamlining the administration of PSD permits for GHGs.

Once approved into the SIP for Arkansas, this action will allow a source to make changes to a facility without triggering PSD permitting requirements, as long as emissions do not increase above the limit established by the PAL Utilizing the PALs approach will allow industry to respond rapidly to changing market conditions while protecting the environment Arkansas requests that EPA review and approve this SIP revision as expeditiously as possible.

The SIP package accompanying this letter consists of one hard copy and one electronic copy (on disk), summarized as follows:

TAB A: State Implementation Plan Submittal Letter

TAB B: Introduction-Greenhouse Gas Tailoring Rule Step 3, Plantwide Applicability Limits in Arkansas Pollution Control and Ecology Commission Regulation No. 19

SWE CAmOL SUITE 250 • LimE ROCl<. AR 72201

1REPHONEI501)682-2345 • FAX(501)682-1382

lNIERNErWEBS!IE •**"''""~-~**TAB C: Evidence of State's Adoption of the Revised Plan into Regulations -Signed Minute Order -Arkansas Register Transmittal Sheet

TAB D: State's Legal Authority to Adopt and Implement the Plan

TAB E: Regulations with Changes Indicated ("Proposed")

TAB F: Regulations with Changes Incorporated ("Final")

TAB G: Procedural Requirements -Regulation Tracking Sheet -Arkansas Register Transmittal Sheet -Arkansas State Library Agency Certification Form

TAB H: Public Participation Regulation Revisions -Public Notice Information and Public Hearing Documentation -Public Comments and Responsive Summary

SIP Revisions -Public Notice Information and Public Hearing Documentation -Affidavit and Transcript of Public Hearing (No Comments

Received)

TAB I: State Requirements for State Implementation Plan Development

I certify that all documents submitted to the Regional Office in electronic form
are exact duplicates of the hard copy documents. Should questions arise, please feel free to contact Mike Bates at (501) 682-0750 or bates@adeq.state.ar.us. Thank you for your consideration of Arkansas's submission. 

# p;rt!l

Mike Beebe MB:jb
Enclosures
2

# December 2013

Revisions to the Arkansas State Implementation Plan

GHG Tailoring Rule, Step 3: Plantwide Applicability Limits (PALs)

# Revisions to the Arkansas State Implementation Plan

Table of Contents
TAB A: State Implementation Plan Submittal Letter

TAB B: Introduction

— Greenhouse Gas Tailoring Rule Step 3,

Plantwide Applicability Limits, and Arkansas Pollution Control and Ecology Commission Regulation No. 19

TAB C: Evidence of Adoption of the Revised Plan into Regulation No. 19 -Signed Minute Order -Arkansas Register Transmittal Sheet


### TAB D: Legal Authority to Adopt and Implement the Plan

TAB E: Regulation No. 19 with Changes Indicated (“Proposed”)

TAB F: Regulation No. 19 with Changes Incorporated (“Final”)

TAB G: Procedural Requirements -Regulation Tracking Sheet -Arkansas Register Transmittal Sheet -Arkansas State Library Agency Certification Form


### TAB H: Public Participation Regulation Revisions: -Public Notice Information and Public Hearing Documentation -Public Comments and Responsive Summary

SIP Revisions:

-Public Notice Information and Public Hearing Documentation -Affidavit and Transcript of Public Hearing (No Comments Received)



### TAB I : State Requirements for State Implementation Plan Development

# Tab A:

State Implementation Plan Submittal LetterSTAlE OF ARKANSAS MIKE Bf..I<::BE C'JOVERNOR January 7, 2014

Ron Curry, Region VI, Regional Administrator United States EPA Region VI 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733

Re: Arkansas State Implementation Plan ("SIP") Revision

Dear Mr. Curry:

The Arkansas Department of Environmental Quality ("ADEQ") hereby respectfully submits to the United States Environmental Protection Agency ("EPA") revisions to the Arkansas SIP, including the Arkansas Pollution Control and Ecology Commission's ("Commission") Regulation No. 19, 

### Regulations of the Arkansas Plan of Implementation for Air Pollution Control, for approval. The Commission adopted changes to Regulation No. 19 on June 28, 2013, in response to EPA's Final Rule "Prevention of Significant Deterioration ["PSD"] and Title V Greenhouse Gas ["GHG"] Tailoring Rule Step 3 and GHG Plantwide Applicability Limits ["PALs"]" (74 Fed. Reg. 41051, July 12, 2012), which finalized an approach to assist state and local permitting authorities in streamlining the administration ofPSD permits for GHGs.

Once approved into the SIP for Arkansas, this action will allow a source to make changes to a facility without triggering PSD permitting requirements, as long as emissions do not increase above the limit established by the PAL. Utilizing the PALs approach will allow industry to respond rapidly to changing market conditions while protecting the environment. Arkansas requests that EPA review and approve this SIP revision as expeditiously as possible.

The SIP package accompanying this letter consists of one hard copy and one electronic copy (on disk), summarized as follows:

TAB A: State Implementation Plan Submittal Letter

TAB B: Introduction-Greenhouse Gas Tailoring Rule Step 3, Plantwide Applicability Limits in Arkansas Pollution Control and Ecology Commission Regulation No. 19

S't;'ll. CAPITOl,**Sum'~'iO** • Lrnu: ROCK AR**72~)I**

T1JH'1I0NE(501)6l-l2-2345·**FAX(~JI** ) (\('\2-UlQ INHcRNEI WEll srrL •**wwwg'M~lW~~""l;lI"'''4:~OV**TAB C: Evidence of State's Adoption of the Revised Plan into Regulations -Signed Minute Order -Arkansas Register Transmittal Sheet

TAB D: State's Legal Authority to Adopt and Implement the Plan

TAB E: Regulations with Changes Indicated ("Proposed")

TAB F: Regulations with Changes Incorporated ("Final")

TAB G: Procedural Requirements -Regulation Tracking Sheet -Arkansas Register Transmittal Sheet -Arkansas State Library Agency Certification Form

TAB H: Public Participation Regulation Revisions -Public Notice Information and Public Hearing Documentation -Public Comments and Responsive Summary

SIP Revisions -Public Notice Information and Public Hearing Documentation -Affidavit and Transcript of Public Hearing (No Comments

Received)

TAB I: State Requirements for State Implementation Plan Development

I certify that all documents submitted to the Regional Office in electronic form
are exact duplicates of the hard copy documents. Should questions arise, please feel free to contact Mike Bates at (501) 682-0750 or bates@adeq.state.ar.us. Thank you for your consideration of Arkansas's submission. 

# fhr(j[1

Mike Beebe MB:jb
Enclosures
2

# Tab B:

Introduction

— Greenhouse Gas Tailoring Rule Step 3, Plantwide Applicability Limits, and Arkansas Pollution Control and Ecology Commission Regulation No. 19Page 1 of 2 

### Arkansas State Implementation Plan (“SIP”) Revision

In troduction
On July 12, 2012, the Environmental Protection Agency (“EPA”) published a final rule in the F ederal Register promulgating the third step of the Greenhouse Gas (“ GHG ”) Tailorin g Rule, which was instated to improve the administration of the GHG Prevention of Significant Deterioration (“ PSD ”) permitting programs. (77 Fed. Reg. 41051, July 12, 2012.) This rule reduced the administrative burde n and streamlined the air permitting process for large facilities subject to GHG permitting by makin g it possible for state permitting agencies to issue Plantwide Applicability Limitations (“PA Ls”) to major and potentially major GHG stationary sources.
In order to implement PALs for GHG emissions in Arkansas, Regulation No. 19 of the Arkansas Pollution Control & Ecology Commission (“Commission” or “APC&EC”) required

re vision. APC&EC Regulation No. 19 is applicable to any stationary source with the potential to emit any federally reg ulated air pollutant equal to or in excess of the threshold for a major source, to minor sources, and is federally e nforceable.

Approved Arkansas SIP components affected by this Revision
APC&EC Regulation No. 19 Chapter 9 Prevention of Significant Deterioration; Reg. 19.904 “Adoption of Regulations” a) 19.904(A)(1) b) 19.904(G)(1)
The Arkansas Department of Environmental Quality (“ADEQ”) filed APC&EC Regulation No. 19 with the Commission to initiate rulemaking on February 22, 2013. The public hearing for APC&EC Regulation N o. 19 was held on April 2, 2013, and the public comment period ended April 1 6 , 2013. Industry was aware of the revision and supported the decision to include GHG PALs into APC&EC Regulation No. 19. ADEQ received onl y one comment from EPA on this rulemaking during the public comment period. A responsive summary which address ed the comment received was finalized, although no revisions t o the final rule were made due to the comment, and ADEQ presented the regulation to the Legisl ative Administrative Rules and Regulations Committee, the Legislative Joint Public Health and Welfare Committee, and the Legislative Council. After these committees reviewed the proposed revisi ons to the regulation, the revised and final regulations were presented to the Commission on June 28, 2013, for final approval. Revisions to APC&EC Regulation No. 19 were adopted by the Commi ssion on June 28, 2013. Following the Commission’s approval, the regulation wa s filed with the Arkansas Secretary of State and revisions outlined herein are fully e ffective, as of July 27, 2013.Arkansas State Implementation Plan Revision

Introduction

2 of 2



### Regulation No. 19: Regulations of the Arkansas Plan of Implementation

for Air Pollution Control

The chan ges to APC&EC Regulation No. 19 were made in response to EPA’s final rule

“ Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule Step 3 and GHG Plantwide Applicability Limits ” to implement PALs for GHG emissions in Arkansas. The regulatory amendments related to the SIP involve the following:
a) Revision of APC&EC Reg. 19.904(A)(1) to incorporate 40 C.F.R. § 52.21(aa), the section within the Code of Federal Re gulations (“C.F.R.”) where the GHG PALs federal lang uage is located, and the pre-existing paragraph (A)(1) was renumbered as (A)(2);
b) Added largely verbatim lang uage from GHG PALs federal language found at 40 C.F.R. § 52.21(b)(49)(i) to APC&EC Reg. 19.904(G)(1), subparagraphs (a), (b), and (c); and
c) Correction of typog raphical errors and non-substantive revisions were made for clarification, consistency, or to update lan guage throughout APC&EC Regulation No. 19 included: i. 19.904(A)— added a reference to paragraph 19.904(G); ii. 19.904( E)(3)—corrected a reference to air quality models; and iii. 19.904(G)(1)— added the word “and. ”
Making these changes will maintain consistency between federal air pollution control programs and the Commission’s regulations gove rning air pollution in Arkansas.

The changes to APC&EC Regulation No.19 are consistent with and allowable under federal programs. The proposed chan ges a re protective of air quality in the state and will not affect attainment goals.
Sources affected by this progr am revision are found throughout the state.
These revisions do not affect ADEQ’s ability to protect the National Ambient Air Quality Standards, Prevention of Significant Deterioration increments, Reasonable Further Progress demonstrations, or visibility goals.
No substantive revisions have been made to the emission limitations, work practice standards or recordkeeping/reporting requirements portions of this program.
Furthermore, the ADEQ’s existing compliance and enforcement strategies will remain in place.

# Tab C: Evidence of Adoption of the Revised Plan into Regulation No. 19

-Signed Minute Order -Arkansas Register Transmittal Sheet

### ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION

MINUTE ORDER NO. 13 - \ 

# g SUBJECT Adoption of Revisions to Re2ulation 19, Re2ulations of the Arkansas Plan of Implementation for Air Pollution Control

DOCKET NO. 13-004-R

PAGE 1 OF 1



### Pursuant to public notice and hearing, and in consideration of comments received, the Arkansas Pollution Control and Ecology Commission hereby adopts changes to Regulation No. 19, Regulations of the Arkansas Plan ofImplementation for Air Pollution Control.

PROMULGATED THIS 28 th 

### DAY OF JUNE, 2013, BY ORDER OF THE ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION.

BY:

ATTEST:

# d~;UAL Teresa Marks, Director

COMMISSIONERS

# ~ 1. Bates

# .:...~........-. ___ L. Bengal

### ~ 

# c.... 1. Chamberlin

### ....jSF;.~ 1. Fox 

## ()k D. Hendrix

--'7'''9=:::=00<-:::- 

### L. Hitchcock

## ~ S. Jorgensen (Chair)

# ~ D. Samples 

# V L. Sickel (Vice Chair)**J.Simpson** 

### W. Thompson B. 

### White

______ R. Young

SUBMITTED BY: Mike Bates PASSED: 06/28/2013

EXHIBIT E

# ARKANSAS REGISTER Transmittal Sheet * Use only for FINAL and EMERGENCY RULES

For Office Use Only: Secretary of State Mark Martin State Capitol, Suite 026 Little Rock, Arkansas 72201-1094 (501) 682-3527 

### www.sos.arkansas.gov

Effective Date

___________ Code Number

______________ _

Name of Agency Arkansas Pollution Control 

### & Ecology Commission
Department Arkansas Department of Environmental Quality Bates@adeq.state.ar.us Contact Mike Bates E-mail

___________ Phone (501) 682-0750 A.C.A. §§8-4-201, 8-4-304, and 8-4-311 Statutory Authority for Promulgating Rules

______________________ _ Regulation No. 19, Regulations of the Arkansas Plan of Implementation for Air 

### RuleTitle:

______________________________ _ Pollution Control; Docket No. 13-004-R; Minute Order No. 13-19 Intended Effective Date Date (Cheek One) 

### D Emergency (ACA 25-15-204) 

### D 30 Days After Filing (ACA 25-15-204) 

## D Other

________ --,----,-_ (Must be more than 30 days .fter nllng d.te.)

Electronic Copy of Rule submitted under ACA 25-15-218 by:

Contact Person E-mail Address Legal Notice Published

Final Date for Public Comment

Reviewed by Legislatice Council Adopted by State Agency



### GERTIFICATION OF AUTHORIZED OFFICER 02/27-28/13
04/16/13
06/11/13
06/28/13

Date



### >::;- 1 I Hereby Certify That The Attached Rules Were Adopted C) In**tQinplian~~;Wit~** Act 434 of 1967 the Arkansas Administrative Procedures ct. (ACA 25-15-201 et. seq.) 

### Cl 

## c.-:**:.~', ~'!**  : 

### W /-. 1.'_.

. r--



## - '. C')**~:J** i-' 'J) r.n

,; ... 

### - [0 (501) 682-7890 moulton@adeq.state.ar.us Phone Number E-mail Address Administrative Law Judge
Title July 17, 2013
Date
Revised 8/2011 to reneet new legislation passed In 2011.

# Tab D:

Legal Authority to Adopt and Implement the Plan

### State’s Legal Authority to Adopt and Implement the Plan

The State’s legal authority to adopt and implement this State Implementation Plan revision can be found in Arkansas Code Annotated (Ark. Code Ann.) § 8-1-203(b)(1) and § 8-4-311(a)(1).

### Ark. Code Ann. § 8-1-203. Powers and responsibilities of the Arkansas Pollution Control

and Ecology Commission.
(a) The Arkansas Pollution Control and Ecology Commission shall meet regularly in publicly noticed open meetings to discuss and rule upon matters of environmental concern.
(b) The commission's powers and duties shall be as follows:
(1) (A) Promulgation of rules and regulations implementing the substantive statutes charged to the Arkansas Department of Environmental Quality for administration.
(B) In promulgation of such rules and regulations, prior to the submittal to public comment and review of any rule, regulation, or change to any rule or regulation that is more stringent than the federal requirements, the commission shall duly consider the economic impact and the environmental benefit of such rule or regulation on the people of the State of Arkansas, including those entities that will be subject to the regulation.
(C) The commission shall promptly initiate rulemaking proceedings to further implement the analysis required under subdivision (b)(1)(B) of this section.
(D) The extent of the analysis required under subdivision (b)(1)(B) of this section shall be defined in the commission's rulemaking required under subdivision (b)(1)(C) of this section. It will include a written report which shall be available for public review along with the proposed rule in the public comment period.
(E) Upon completion of the public comment period, the commission shall compile a rulemaking record or response to comments demonstrating a re asoned evaluation of the relative impact and benefits of the more stringent regulation;
(2) Promulgation of rules, regulations, and procedures not otherwise governed by applicable law that the commission deems necessary to secure public participation in environmental decision-making processes;
(3) Promulgation of rules and regulations governing administrative procedures for challenging or contesting department actions;
(4) In the case of permitting or grants decisions, providing the right to appeal a permitting or grants decision rendered by the Director of the Arkansas Department of Environmental Quality or his or her delegatee;

### (5) In the case of an administrative enforcement or emergency action, providing the right to

contest any such action initiated by the director;
(6) Instruct the director to prepare such reports or perform such studies as will advance the cause of environmental protection in the state;
(7) Make recommendations to the director regarding overall policy and administration of the department. However, the director shall always remain within the plenary authority of the Governor; and
(8) Upon a majority vote, initiate review of any director's decision.
(c) (1) In providing for adjudicatory review as contemplated by subdivisions (b)(4) and (5) of this section, the commission may appoint one (1) or more administrative hearing officers. The administrative hearing officers shall at all times serve as agents of the commission.
(2) In hearings upon appeals of permitting or grants decisions by the director or contested administrative enforcement or emergency actions initiated by the director, the administrative hearing officer shall administer the hearing in accordance with procedures adopted by the commission and, after due deliberation, submit his or her re commended decision to the commission.
(3) (A) (i) Commission review of any appealed or contested matter shall be upon the record compiled by the administrative hearing officer and his or her recommended decision.
(ii) Commission review shall be de novo. However, no additional evidence need be received unless the commission so decides in accordance with established administrative procedures.
(B) The commission may afford the opportunity for oral argument to all parties of the adjudicatory hearing.
(C) (i) By the majority vote of a quorum, the commission may affirm, reverse and dismiss, or reverse and remand to the director.
(ii) If the commission votes to affirm or reverse, such decision shall constitute final agency action for purposes of appeal.
(4) Any party aggrieved by the commission decision may appeal as provided by applicable law.

### (d) The chair of the Arkansas Pollution Control and Ecology Commission may appoint one (1)

or more committees composed of commission members to act in an advisory capacity to the full commission.

HISTORY: Acts 1991, No. 1230, § 1; 1993, No. 163, § 7; 1993, No. 165, § 7; 1993, No. 1264, § 2; 1995, No. 117, § 1.

### Ark. Code Ann. § 8-4-311. Powers generally.

(a) The Arkansas Department of Environmental Quality or its successor shall have the power to:
(1) Develop and effectuate a comprehensive program for the prevention and control of all sources of pollution of the air of this state;
(2) Advise, consult, and cooperate with other agencies of the state, political subdivisions, industries, other states, the federal government, and with affected groups in the furtherance of the purposes of this chapter;
(3) Encourage and conduct studies, investigations, and research relating to air pollution and its causes, prevention, control, and abatement as it may deem advisable and necessary;
(4) Collect and disseminate information relative to air pollution and its prevention and control;
(5) Consider complaints and make investigations;
(6) Encourage voluntary cooperation by the people, municipalities, counties, industries, and others in preserving and restoring the purity of the air within the state;
(7) Administer and enforce all laws and regulations relating to pollution of the air;
(8) Represent the state in all matters pertaining to plans, procedures, or negotiations for interstate compacts in relation to air pollution control;
(9) (A) Cooperate with and receive moneys from the federal government or any other source for the study and control of air pollution.
(B) The department is designated as the official state air pollution control agency for such purposes;
(10) Make, issue, modify, revoke, and enforce orders prohibiting, controlling, or abating air pollution and requiring the adoption of remedial measures to prevent, control, or abate air pollution;
(11) Institute court proceedings to compel compliance with the provisions of this chapter and rules, regulations, and orders issued pursuant to this chapter; and

### (12) Exercise all of the powers in the control of air pollution granted to the department for the

control of water pollution under §§ 8-4-101

-- 8-4-106 and 8-4-201

-- 8-4-229.
(13) Develop and implement state implementation plans provided that the commission shall retain all powers and duties regarding promulgation of rules and regulations under this chapter.
(b) The Arkansas Pollution Control and Ecology Commission shall have the power to:
(1) (A) Promulgate rules and regulations for implementing the substantive statutes charged to the department for administration.
(B) In promulgation of such rules and regulations, prior to the submittal to public comment and review of any rule, regulation, or change to any rule or regulation that is more stringent than federal requirements, the commission shall duly consider the economic impact and the environmental benefit of such rule or regulation on the people of the State of Arkansas, including those entities that will be subject to the regulation.
(C) The commission shall promptly initiate rulemaking to further implement the analysis required under subdivision (b)(1)(B) of this section.
(D) The extent of the analysis required under subdivision (b)(1)(B) of this section shall be defined in the commission's rulemaking required under subdivision (b)(1)(C) of this section. It will include a written report that shall be available for public review along with the proposed rule in the public comment period.
(E) Upon completion of the public comment period, the commission shall compile a rulemaking record or response to comments demonstrating a reasoned evaluation of the relative impact and benefits of the more stringent regulation;
(2) Promulgate rules, regulations, and procedures not otherwise governed by applicable lawthat the commission deems necessary to secure public participation in environmental decisionmaking processes;
(3) Pr omulgate rules and regulations governing administrative procedures for challenging or contesting department actions;
(4) In the case of permitting or grants decisions, provide the right to appeal a permitting or grants decision rendered by the Director of the Arkansas Department of Environmental Quality or his or her delegatee;

### (5) In the case of an administrative enforcement or emergency action, providing the right to

contest any such action initiated by the director;
(6) Instruct the director to prepare such reports or perform such studies as will advance the cause of environmental protection in the state;
(7) Make recommendations to the director regarding overall policy and administration of the department, provided, however, that the director shall always remain within the plenary authority of the Governor;
(8) Upon a majority vote, initiate review of any director's decision;
(9) Adopt, after notice and public hearing, reasonable and nondiscriminatory rules and regulations requiring the registration of and the filing of reports by persons engaged in operations that may result in air pollution;
(10) (A) Adopt, after notice and public hearing, reasonable and nondiscriminatory rules and regulations, including requiring a permit or other regulatory authorization from the department, before any equipment causing the issuance of air contaminants may be built, erected, altered, replaced, used, or operated, except in the case of repairs or maintenance of equipment for which a permit has been previously used, and revoke or modify any permit issued under this chapter or deny any permit when it is necessary , in the opinion of the department, to prevent, control, or abate air pollution.
(B) A permit shall be issued for the operation or use of any equipment or any facility in existence upon the effective date of any rule or regulation requiring a permit if proper application is made for the permit.
(C) No such permit shall be modified or revoked without prior notice and hearing a s provided in this section.
(D) Any person that is denied a permit by the department or that has such permit revoked or modified shall be afforded an opportunity for a hearing in connection therewith upon written application made within thirty (30) days after service of notice of such denial, revocation, or modification.
(E) The operation of any existing equipment or facility for which a proper permit application has been made shall not be interrupted pending final action thereon.
(F) (i) An applicant or permit holder that has had a complete application for a permit or for a

### modification of a permit pending longer than the time specified in the state regulations

promulgated pursuant to Title V of the Clean Air Act Amendments of 1990, or any person that participated in the public participation process, and any othe r person that could obtain judicial review of such actions under state laws, may petition the commission for relief from department inaction.
(ii) The commission will either deny or grant the petition within forty-five (45) days of its submittal.
(iii) For the purposes of judicial review, either a commission denial or the failure of the department to render a final decision within thi rty (30) days after the commission has granted a petition shall constitute final agency action; and
(11) (A) Establish through its rulemaking authority, either alone or in conjunction with the appropriate state or local agencies, a system for the banking and trading of air emissions designed to maintain both the state's attainment status with the national ambient air quality standards mandated by the Clean Air Act and the overall air quality of the state.
(B) The commission may consider differential valuation of emission credits as necessary to achieve primary and secondary na tional ambient air quality standards, and may consider establishing credits for air pollutants other than those designated as criteria air pollutants by the United States Environmental Protection Agency.
(C) Any regulation proposed pursuant to this authorization shall be reported to the House Interim Committee on Public Health, Welfare, and Labor and the Senate Interim Committee on Public Health, Welfare, and Labor or appropriate subcommittees thereof prior to its final promulgation.

HISTORY: Acts 1949, No. 472, [Part 2], § 5, as added by Acts 1965, No. 183, § 7; A.S.A. 1947, § 82-1935; Acts 1993, No. 994, § 1; 1995, No. 895, § 4; 1997, No. 179, § 1; 1997, No. 1219, § 6; 1999, No. 1164, § 31; Act 1302, 2013.

# Tab E:

Regulation No. 19 with Changes Indicated (“Proposed”)

### Pollution Control and Ecology Commission # 014.00-019



# ARKANSAS POLLUTION CONTR OL and ECOLOGY COMMISSION

REGULATION NO. 19 REGULATIONS OF THE ARKANSAS PLAN OF IMPLEMENTATION FOR AIR POLLUTION

CONTROL

INITIAL DRAFT

Submitted to the PC&E Commission in February 2013

EXHIBIT A

### i 

### TABLE OF CONTENTS

CHAPTER 1: TITLE, INTENT, AND PURPOSE .................................................................... 1-1 Reg. 19.101 Title............................................................................................................. 1-1 R eg. 19.102 Applicability ............................................................................................... 1-1 Reg. 19.103 Intent and Constructi on .............................................................................. 1-1 Reg. 19.104 Severability ................................................................................................. 1-2 CHAPTER 2: DEFINITIONS .................................................................................................... 2-1 CHAPTER 3: PROTECTI ON OF THE NATIONAL AMBIENT AIR QUALITY

STANDARDS...................................................................................................... 3-1 Reg. 19.301 Purpose ....................................................................................................... 3 -1 Reg. 19.302 Department Responsi bilities ....................................................................... 3-1 Reg. 19.303 Regulated Source s Responsibilities ............................................................ 3-1 Reg. 19.304 Delegated Fede ral Programs....................................................................... 3-2 CHAPTER 4: MINOR SOUR CE REVIEW................................................................................ 4-1 Reg. 19.401 General Applica bility ................................................................................. 4-1 Reg. 19.402 Approval Criteria ........................................................................................ 4-1 Reg. 19.403 Owner/Operator's Re sponsibilities ............................................................. 4-1 Reg. 19.404 Required Information ................................................................................. 4-2 Reg. 19.405 Action on Application ................................................................................ 4-2 Reg. 19.406 Public Participation .................................................................................... 4-4 Reg. 19.407 Permit Amendments ................................................................................... 4-6 Reg. 19.408 Exemption from Permitting ...................................................................... 4-10 Reg. 19.409 Transition .................................................................................................. 4-10 Reg. 19.410 Permit Revocati on and Cancellation ........................................................ 4-10 Reg. 19.411 General Permi ts ........................................................................................ 4-11 Reg. 19.412 Dispersion Modeling ................................................................................ 4-12 R eg. 19.413 Confidentiality .......................................................................................... 4-12 Reg. 19.414 Operatio nal Flexibility-Applicant's Duty to Apply for Alternative

Scenarios ............................................................................................ 4-14 Reg. 19.415 Changes Resulting in No Emi ssions Increases ......................................... 4-14 Reg. 19.416 Permit Flexibili ty ...................................................................................... 4-15 Reg. 19.417 Registration............................................................................................... 4-17

### ii

CHAPTER 5: GENERAL EMISSIONS LIMITATIONS APPLICABLE TO EQUIPMENT ... 5-1 Reg. 19.501 Purpose ....................................................................................................... 5 -1 Reg. 19.502 General Reg ulations ................................................................................... 5-1 Reg. 19.503 Visible Emission Regulations..................................................................... 5-1 Reg. 19.504 Stack Height/Dispersion R egulations ......................................................... 5-2 Reg. 19.505 Revised Emissions Limitati on .................................................................... 5-2 CHAPTER 6: UPSET AND EMERGENC Y CONDITIO NS

................................ .................... 6-1 Reg. 19.601 Upset Conditions ........................................................................................ 6-1 Reg. 19.602 Emergency Condit ions ............................................................................... 6-2 CHAPTER 7: SAMPLING, MONITOR ING, AND REPORTING REQUIREMENTS ........... 7-1 Reg. 19.701 Purpo se

................................ ....................................................................... 7-1 Reg. 19.702 Air Emissions Sampling ................................ ............................................. 7-1 Reg. 19.703 Continuous Emissions Monitoring ............................................................. 7-2 Reg. 19.704 Notice of Completion ................................ ................................................. 7-3 Reg. 19.705 Record Keeping a nd Reporting Requirements ........................................... 7-3 Reg. 19.706 Public Availability of Emissions Data ....................................................... 7-4 CHAPTER 8: 111(D) DESIGNATED FACILITIES ................................................................. 8-1 Reg. 19.801 Purpose ....................................................................................................... 8 -1 Reg. 19.802 Permit Emissions Limit ations..................................................................... 8-1 Reg. 19.803 Sulfuric Acid Plants (H 2 

### SO 4 

### Mist) ............................................................. 8-1 Reg. 19.804 Kraft Pulp Mills (TRS )

................................ ................................ ............... 8

- 1 CHAPTER 9: PREVENTION OF SIGNIFICANT DETERIORATION ................................... 9-1 Reg. 19.901 Title............................................................................................................. 9-1 R eg. 19.902 Purposes ...................................................................................................... 9- 1 Reg. 19.903 Definitions .................................................................................................. 9-1 Reg. 19.904 Adoption of Regulations............................................................................. 9-2 CHAPTER 10: REGULATI ONS FOR THE CONTROL OF VOLATILE ORGANIC

COMPOUNDS IN PULASKI COUNTY .......................................................... 10-1 Reg. 19.1001 Title......................................................................................................... 10-1 Reg. 19.1002 Purpose ................................................................................................... 10 -1 Reg. 19.1003 Definitions .............................................................................................. 10-1 Reg. 19.1004 General Provisions .................................................................................. 10-5 Reg. 19.1005 Provisions for Specific Proc esses ......................................................... 10-12 Reg. 19.1006 Severability

................................................................ ........................... 10-18

### iii

CHAPTER 11: MAJOR SOURCE PERMITTING PROCEDURES ....................................... 11-1 CHAPTER 12: [RESERVED] ................................................................................................ .. 12-1 CHAPTER 13: STAGE I VAPOR R ECOVERY ..................................................................... 13-1 Reg. 19.1301 Purpose ................................................................................................... 13 -1 Reg. 19.1302 Applicability ........................................................................................... 13-1 Reg. 19.1303 Definitions .............................................................................................. 13- 1 Reg. 19.1304 Exemptions ............................................................................................. 13- 4 Reg. 19.1305 Prohibited Activities ............................................................................... 13-4 Reg. 19.1306 Record Keeping ...................................................................................... 13-5 Reg. 19.1307 Inspections

................................................................ .............................. 13-5 Reg. 19.1308 Vapor Recovery Sy stems ....................................................................... 13-6 Reg. 19.1309 Gasoline Delive ry Vessels ...................................................................... 13-6 Reg. 19.1310 Owner/Operator Responsibilit y .............................................................. 13-7 Reg. 19.1311 Test Methods .......................................................................................... 13-7 Reg. 19.1312 Effective Da te ......................................................................................... 13-8 CHAPTER 14: CAIR NO X 

### OZONE SEASON TRADING PROGRAM GENERAL

PROVISIONS .................................................................................................... 14-1 Reg. 19.1401 Adoption of Regulati ons......................................................................... 14-1 Reg. 19.1402 State Trading Bud get .............................................................................. 14-1 Reg. 19.1403 Timing Requirements for CAIR NO x 

### Ozone Season Allowance

Allocations ......................................................................................... 14-1 Reg. 19.1404 CAIR NO x 

### Ozone Season Allowance Allocations ................................. 14-2 CHAPTER 15: REGIONAL HAZ E ......................................................................................... 15-1 Reg. 19.1501 Purpose ................................................................................................... 15- 1 Reg. 19.1502 Definitions .............................................................................................. 15-1 Reg. 19.1503 BART Eligible Source s .......................................................................... 15-1 Reg. 19.1504 Facilities Subjec t- to -BART .................................................................... 15-3 Reg. 19.1505 BART Requirements ................................ .............................................. 15-3 Reg. 19.1506 Compliance Provisions ................................ ........................................... 15-6 Reg. 19.1507 Permit Reopening ................................................................................... 15-7 CHAPTER 16: EFFECTIVE DATE ........................................................................................ 16-1 Reg. 19.1601 Effective Date ......................................................................................... 16-1 APPENDIX A: INSIGNIFI CANT ACTIVITIES LI ST .................................................................1

### 9

- 1



### CHAPTER 9: PREVENTION OF SIGNIFICANT DETERIORATION

Reg. 19.901 Title
The following rules and regulations of the Arkansas Pollution Control and Ecology Commission, adop ted in accordance with the provisions of Part II of the Arkansas Water and Air Pollution Control Act at A.C.A §§8-4-101 et seq., shall be known as the Prevention of Significant Deterioration Regulations of the Arkansas Plan of Implementation for Air Pollution Control, hereinafter referred to, respectively, as the “PSD Regulations.”
Reg. 19.902 Purposes
Promulgation and enforcement of these PSD Regulations is intended to further the purposes of the Plan and the Regulations of the Plan, including, but not limited to, acceptance of delegation by the EPA of authority for enforcement of regulations governing the prevention of significant deterioration of air quality and regulations governing the protection of visibility in mandatory Class I federal areas.
Reg

. 19.903 Definitions
(A) "Advance notification" (of a permit application) means any written communication which establishes the applicant's intention to construct, and which provides the Department with sufficient information to determine that the proposed source may constitute a major new source or major modification, and that such source may affect any mandatory Class I federal area, including, but not limited to, submittal of a draft or partial permit application, a PSD monitoring plan, or a sufficiently detailed letter. "Advance notification" does not include general inquiries about the Department's regulations.
(B) All other terms used herein shall have the same meaning as set forth in Chapter 2 of Regulation 19 or in 40 CFR 52.21(b) [PSD] and 40 CFR 51.301 [Protection of Visibility] as of November 29, 2005, all as in effect upon the latest date of amendment of this supplement, unless manifestly inconsistent with the context in which they are used. Wherever there is a difference between the definitions in Chap ter 2 of Regulation 19 and those listed in 40 CFR 52.21(b) and 40 CFR 51.301,

### 9

- 2 the federal definitions as listed in 40 CFR 52.21(b) and 40 CFR 51.301 as of November 29, 2005, shall apply.
(C) The definition for “routine maintenance, repair and replacement” in 40 CFR 52.21(b)(2)(iii)(a) is not incorporated.
Reg. 19.904 Adoption of Regulations
(A) Except where manifestly inconsistent with the provisions of the Clean Air Act, as amended, or with federal regulations adopted pursuant thereto, and as amended specifically herein by paragraphs (B), (C), (D), (E), and (F) , and (G) of Reg. 19.904 , the Arkansas Department of Environmental Quality shall have those responsibilities and that authority, with reference to the State of Arkansas, granted to the Administrator of the EPA under 40 CFR 52.21 (a)(2) through (bb), as in effect on November 29, 2005, which are hereby incorporated herein by reference, with the exception of

: (1) 40 C. F. R. § 52.21(aa), which is incorporated by reference as in effect on August 13, 2012, except for instances in the sections of 40 C.F.R. § 52.21(aa) where 40 C. F. R. § 52.21(b)(49) is referenced. In those instances, paragraph (G) of Reg. 19.904 shall apply; and
(2) 40 CFR 52.21(b)(55-58), 40 CFR 52.21(i)(9), and 40 CFR 52.21(cc), which are not incorporated.
In the absence of a specific imposition of responsibility or grant of authority, the Department shall be deemed to have that responsibility and authority necessary to attain the purposes of the Plan, these PSD Regulations, and the applicable federal regulations, as incorporated herein by reference.
(B) Exclusions from the consumption of increments, as provided in 40 CFR 51.166(f)(1)(iii) as of November 29, 2005, shall be effective immediately. Submission of this Plan under the Governor's signature constitutes a request by the Governor for this exclusion.

### 9

- 3

(C) In addition to the requirements of 40 CFR 52.21(o) as of November 29, 2005, the following requirements [designated as Reg. 19.904(C)(1),(2),(3) and (4)] shall also apply:
(1 ) Where air quality impact analyses required under this part indicate that the issuance of a permit for any major stationary source or for any major modification would result in the consumption of more than fifty percent (50%) of any available annual increment or eighty percent (80%) of any short term increment, the person applying for such a permit shall submit to the Department an assessment of the following factors:
(a) Effects that the proposed consumption would have upon the industrial and economic development within the area of the proposed source; and
(b) Alternatives to such consumption, including alternative siting of the proposed source or portions thereof.
(2 ) The assessment required under subparagraph (4) above shall be made part of the application for permit and shall be made available for public inspection as provided in 40 CFR 52.21(q) as of November 29, 2005.
(3 ) The assessment required under subparagraph (4) above shall be in detail commensurate with the degree of proposed increment consumption, both in terms of the percentage of increment consumed and the area affected.
(4 ) The assessment required under subparagraph (4) above may be made effective where a proposed source would cause an increment consumption less than that specified in said subparagraph if the Director finds that unusual circumstances exist in the area of the proposed source which warrant such an assessment. The Director shall notify the applicant in writing of those circumstances which warrant said assessment. The Commission may rescind or modify the Director's action, upon a showing by the applicant that the circumstances alleged by the Director either do not exist or do not warrant the aforecited assessment.

### 9

- 4

(D) In addition to the requirements of 40 CFR 52.21(p)(1) as of November 29, 2005, the following requirements shall also apply:

I mpacts on mandatory Class I federal areas include impacts on visibility. The preliminary determination that a source may affect air quality or visibility in a mandatory Class I federal area shall be made by the Department, based on screening criteria agreed upon by the Department and the Federal Land Manager.
(E) In all instances wherein the aforesaid 40 CFR 51.301 and 40 CFR 52.21 refer to the Administrator or the Environmental Protection Agency, the reference, for the purposes of paragraph (A) of Reg. 19.904, shall be deemed to mean the Arkansas Department of Environmental Quality, unless the context plainly dictates otherwise, except in the following sections:
(1) Exclusion from increment consumption: 40 CFR 52.21(f)(1)(v), (f)(3), and (f)(4)(I);
(2) Re designation: 40 CFR 52.21(g)(1), (g)(2), (g)(4), (g)(5), and (g)(6);
(3) Air quality models: 40 CFR 52.21 (l) (2).
(F) Redesignation of air quality areas in Arkansas shall comply with Arkansas Code Annotated 1987 Section 8-3-101 et seq.
(G) For the purpose of the regulation of GHGs, only the standards and requirements promulgated by EPA as of June 3, 2010, related to the permitting of GHG emissions shall apply to the requirements of 40 CFR 52.21, as of November 29, 2005 , incorporated by reference at Reg.19.904(A). The following definitions and requirements shall also apply:
(1) “Greenhouse gases” (GHGs) means the air pollutant defined as the aggregate group of six greenhouse gases: carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, and shall not be subject to regulation except as provided in Reg. 19.904(G)(4) through Reg.19.904(G)( 5) , and shall not be subject to regulation if the stationary source. :

### 9

- 5 (a) Maintains its total source-wide emissions below the GHG plantwide applicability limitations (hereinafter “PAL ”) level;
(b) Meets the requirements in 40 § C.F.R 52.21(aa)(1) through 40 C.F.R. § 52.21(aa)(15) as outlined in Reg. 19.904(A)(1); and
(c) Complies with the PAL permit containing the GHG PAL.
(2) For purposes of Reg. 19.904(G)(3) through Reg.19.904(G )( 5 ):
(a) The term tons per year (tpy) “ CO 2 

### equivalent emissions” (CO 2 

### e) shall represent an amount of GHGs emitted, and shall be computed as follows:
(i ) Multiplying the mass amount of emissions in tpy, for each of the six greenhouse gases in the pollutant GHGs, by each gas’ s associated global warming potential published at Table A - 1 to subpart A of 40 CFR part 98 - Global Warming Potentials (as of October 30, 2009); and
( ii ) Sum the resultant values from Reg. 19.904(G)(2)(a)(i) for each gas to compute a tpy CO 2 

### e. (b ) For purposes of this definition, prior to July 21, 2014, the mass of the greenhouse gas carbon dioxide shall not include carbon dioxide emissions resulting from the combustion or decomposition of non-fossilized andbiodegradable organic material originating from plants, animals, or microorganisms (including products, by-products, residues and waste from agriculture, forestry and related industries as well as the non-fossilized and biodegradable organic fractions of industrial and municipal wastes,including gases and liquids recovered from the decomposition of nonfossilized and biodegradable organic material).

(3) The term “emissions increase” as used in Reg. 19.904(G)(4) through Reg. 19.904(G)(5 ) shall mean that both a significant emissions increase (as calculated using the procedures in 40 CFR 52.21(a)(2)(iv), as of November 29, 2005), and a significant net emissions increase (as defined in 40 CFR 52.21(b)(3), as of

### 9

- 6 November 29, 2005, and 40 CFR 52.21(b)(23), as of November 29, 2005), occur. For the pollutant GHGs, an emissions increase shall be based on tpy CO 2 

### e, and shall be calculated assuming the pollutant GHGs is a regulated NSR pollutant, and “significant” is defined as 75,000 tpy CO 2 

### e instead of applying the value in 40 CFR 52.21(b)(23)(ii), as of November 29, 2005.
(4) Beginning January 2, 2011, the pollutant GHGs is subject to regulation if:
(a) The stationary source is a new major stationary source for a regulated NSR pollutant that is not GHGs, and also will emit or will have the potential to emit GHGs at 75,000 tpy CO 2 

### e or more; or (b) The stationary source is an existing major stationary source for a regulated NSR pollutant that is not GHGs, and also will have an emissions increase of a regulated NSR pollutant, and an emissions increase of GHGs of 75,000 tpy CO 2 

### e or more. (5) Beginning July 1, 2011, in addition to the provisions in Reg.19.904(G)(4) of this section, the pollutant GHGs shall also be subject to regulation:
(a) At a new stationary source that will emit or have the potential to emit 100,000 tpy CO 2 

### e or more; or (b) At an existing stationary source that emits or has the potential to emit 100,000 tpy CO 2 

### e or more, when such stationary source undertakes a physical change or change in the method of operation that will result in an emissions increase of 75,000 tpy CO 2 

### e or more.

# Tab F:

Regulation No. 19 with Changes Incorporated (“Final”)Pollution Control and Ecology Commission # 014.00-019



# ARKANSAS POLLUTION CONTROL and ECOLOGY COMMISSION

REGULATION NO. 19 REGULATIONS OF THE ARKANSAS PLAN OF IMPLEMENTATION FOR AIR POLLUTION CONTROL**~ (.r~)**  -=":.. p--
a-:-u. ," 'r . ;**<:~**

. \**~** "

. _ •. i •. '-''''-" (**:.;~~~** 

## !. ;:Z; Adopted by the PC&E Commission: June 28, 2013

### i 

### TABLE OF CONTENTS

CHAPTER 1: TITLE, INTENT, AND PURPOSE .................................................................... 1-1 Reg. 19.101 Title............................................................................................................. 1-1 R eg. 19.102 Applicability ............................................................................................... 1-1 Reg. 19.103 Intent and Constructi on .............................................................................. 1-1 Reg. 19.104 Severability ................................................................................................. 1-2 CHAPTER 2: DEFINITIONS .................................................................................................... 2-1 CHAPTER 3: PROTECTI ON OF THE NATIONAL AMBIENT AIR QUALITY

STANDARDS...................................................................................................... 3-1 Reg. 19.301 Purpose ....................................................................................................... 3 -1 Reg. 19.302 Department Responsi bilities ....................................................................... 3-1 Reg. 19.303 Regulated Source s Responsibilities ............................................................ 3-1 Reg. 19.304 Delegated Fede ral Programs....................................................................... 3-2 CHAPTER 4: MINOR SOUR CE REVIEW................................................................................ 4-1 Reg. 19.401 General Applica bility ................................................................................. 4-1 Reg. 19.402 Approval Criteria ........................................................................................ 4-1 Reg. 19.403 Owner/Operator's Re sponsibilities ............................................................. 4-1 Reg. 19.404 Required Information ................................................................................. 4-2 Reg. 19.405 Action on Application ................................................................................ 4-2 Reg. 19.406 Public Participation .................................................................................... 4-4 Reg. 19.407 Permit Amendments ................................ ................................................... 4-6 Reg. 19.408 Exemption from Permitting ...................................................................... 4-10 Reg. 19.409 Transition .................................................................................................. 4-10 Reg. 19.410 Permit Revocati on and Cancellation ........................................................ 4-10 Reg. 19.411 General Permi ts ........................................................................................ 4-11 Reg. 19.412 Dispersion Modeling ................................................................................ 4-12 R eg. 19.413 Confidentiality .......................................................................................... 4-12 Reg. 19.414 Operatio nal Flexibility-Applicant's Duty to Apply for Alternative

Scenarios ............................................................................................ 4-14 Reg. 19.415 Changes Resulting in No Emi ssions Increases ......................................... 4-14 Reg. 19.416 Permit Flexibili ty ...................................................................................... 4-15 Reg. 19.417 Registration............................................................................................... 4-17

### ii

CHAPTER 5: GENERAL EMISSIONS LIMITATIONS APPLICABLE TO EQUIPMENT ... 5-1 Reg. 19.501 Purpose ....................................................................................................... 5 -1 Reg. 19.502 General Reg ulations ................................................................................... 5-1 Reg. 19.503 Visible Emission Regulations..................................................................... 5-1 Reg. 19.504 Stack Height/Dispersion R egulations ......................................................... 5-2 Reg. 19.505 Revised Emissions Limitati on .................................................................... 5-2 CHAPTER 6: UPSET AND EMERGENC Y CONDITIO NS

................................ .................... 6-1 Reg. 19.601 Upset Conditions ........................................................................................ 6-1 Reg. 19.602 Emergency C onditions ............................................................................... 6-2 CHAPTER 7: SAMPLING, MONITOR ING, AND REPORTING REQUIREMENTS ........... 7-1 Reg. 19.701 Purpose ....................................................................................................... 7 -1 Reg. 19.702 Air Emissions Sampling ................................ ............................................. 7-1 Reg. 19.703 Continuous Emissions Monitoring ............................................................. 7-2 Reg. 19.704 Notice of Completion ................................ ................................................. 7-3 Reg. 19.705 Record Keeping a nd Reporting Requirements ........................................... 7-3 Reg. 19.706 Public Availabilit y of Emissions Data ....................................................... 7-4 CHAPTER 8: 111(D) DESIGNATED FACILITIES ................................................................. 8-1 Reg. 19.801 Purpose ....................................................................................................... 8 -1 Reg. 19.802 Permit Emissions Limit ations..................................................................... 8-1 Reg. 19.803 Sulfuric Acid Plants (H 2 

### SO 4 

### Mist) ............................................................. 8-1 Reg. 19.804 Kraft Pulp Mills (TRS )

................................ ................................ ............... 8

- 1 CHAPTER 9: PREVENTION OF SIGNIFICANT DETERIORATION ................................... 9-1 Reg. 19.901 Title............................................................................................................. 9-1 R eg. 19.902 Purposes ...................................................................................................... 9- 1 Reg. 19.903 Definitions .................................................................................................. 9-1 Reg. 19.904 Adoption of Regulations............................................................................. 9-2 CHAPTER 10: REGULATI ONS FOR THE CONTROL OF VOLATILE ORGANIC

COMPOUNDS IN PULASKI COUNTY .......................................................... 10-1 Reg. 19.1001 Title......................................................................................................... 10-1 Reg. 19.1002 Purpose ................................................................................................... 10 -1 Reg. 19.1003 Definitions .............................................................................................. 10-1 Reg. 19.1004 General Provisions .................................................................................. 10-5 Reg. 19.1005 Provisions for Specific Proc esses ......................................................... 10-12 Reg. 19.1006 Severability ........................................................................................... 10-18

### iii

CHAPTER 11: MAJOR SOURCE PERMITTING PROCEDURES ....................................... 11-1 CHAPTER 12: [RESERVED] ................................................................................................ .. 12-1 CHAPTER 13: STAGE I VAPOR R ECOVERY ..................................................................... 13-1 Reg. 19.1301 Purpose ................................................................................................... 13 -1 Reg. 19.1302 Applicability ........................................................................................... 13-1 Reg. 19.1303 Definitions .............................................................................................. 13- 1 Reg. 19.1304 Exemptions ............................................................................................. 13- 4 Reg. 19.1305 Prohibited Activities ............................................................................... 13-4 Reg. 19.1306 Record Keeping ...................................................................................... 13-5 Reg. 19.1307 Inspections

................................................................ .............................. 13-5 Reg. 19.1308 Vapor Recovery Sy stems ....................................................................... 13-6 Reg. 19.1309 Gasoline Delive ry Vessels ...................................................................... 13-6 Reg. 19.1310 Owner/Operator Responsibilit y .............................................................. 13-7 Reg. 19.1311 Test Methods .......................................................................................... 13-7 Reg. 19.1312 Effective Date ......................................................................................... 13-8 CHAPTER 14: CAIR NO X 

### OZONE SEASON TRADING PROGRAM GENERAL

PROVISIONS .................................................................................................... 14-1 Reg. 19.1401 Adoption of Regulati ons......................................................................... 14-1 Reg. 19.1402 State Trading Bud get .............................................................................. 14-1 Reg. 19.1403 Timing Requirements for CAIR NO x 

### Ozone Season Allowance

Allocations ......................................................................................... 14-1 Reg. 19.1404 CAIR NO x 

### Ozone Season Allowance Allocations ................................. 14-2 CHAPTER 15: REGIONAL HAZ E ......................................................................................... 15-1 Reg. 19.1501 Purpose ................................................................................................... 15- 1 Reg. 19.1502 Definitions .............................................................................................. 15-1 Reg. 19.1503 BART Eligible Source s .......................................................................... 15-1 Reg. 19.1504 Facilities Subjec t- to -BART .................................................................... 15-3 Reg. 19.1505 BART Requirements ................................ .............................................. 15-3 Reg. 19.1506 Compliance Provisions ................................ ........................................... 15-6 Reg. 19.1507 Permit Reopening ................................................................................... 15-7 CHAPTER 16: EFFECTIVE DATE ........................................................................................ 16-1 Reg. 19.1601 Effective Date ......................................................................................... 16-1 APPENDIX A: INSIGNIFI CANT ACTIVITIES LI ST .................................................................1

### 9

- 1



### CHAPTER 9: PREVENTION OF SIGNIFICANT DETERIORATION

Reg. 19.901 Title
The following rules and regulations of the Arkansas Pollution Control and Ecology Commission, adopted in accordance with the provisions of Part II of the Arkansas Water and Air Pollution Control Act at A.C.A §§8-4-101 et seq., shall be known as the Prevention of Significant Deterioration Regulations of the Arkansas Plan of Implementation for Air Pollution Control, hereinafter referred to, respectively, as the “PSD Regulations.”
Reg. 19.902 Purposes
Promulgation and enforcement of these PSD Regulations is intended to further the purposes of the Plan and the Regulations of the Plan, including, but not limited to, acceptance of delegation by the EPA of authority for enforcement of regulations governing the prevention of significant deterioration of air quality and regulations governing the protection of visibility in mandatory Class I federal areas.
Reg. 19.903 Definitions
(A) "Advance notification" (of a permit application) means any written communication which establishes the applicant's intention to construct, and which provides the Department with sufficient information to determine that the proposed source may constitute a major new source or major modification, and that such source may affect any mandatory Class I federal area, including, but not limited to, submittal of a draft or partial permit application, a PSD monitoring plan, or a sufficiently detailed letter. "Advance notification" does not include general inquiries about the Department's regulations.
(B) All other terms used herein shall have the same meaning as set forth in Chapter 2 of Regulation 19 or in 40 CFR 52.21(b) [PSD] and 40 CFR 51.301 [Protection of Visibility] as of November 29, 2005, all as in effect upon the latest date of amendment of this supplement, unless manifestly inconsistent with the context in which they are used. Wherever there is a difference between the definitions in Chapter 2 of Regulation 19 an d those listed in 40 CFR 52.21(b) and 40 CFR 51.301,

### 9

- 2 the federal definitions as listed in 40 CFR 52.21(b) and 40 CFR 51.301 as of November 29, 2005, shall apply.
(C) The definition for “routine maintenance, repair and replacement” in 40 CFR 52.21(b)(2)(iii)(a) is not incorporated.
Reg. 19.904 Adoption of Regulations
(A) Except where manifestly inconsistent with the provisions of the Clean Air Act, as amended, or with federal regulations adopted pursuant thereto, and as amended specifically herein by paragraphs ( B) , (C), (D), (E), (F ), and (G) of Reg. 19.904, the Arkansas Department of Environmental Quality shall have those responsibilities and that authority, with reference to the State of Arkansas, granted to the Administrator of the EPA under 40 CFR 52.21 (a)(2) through (bb), as in effect on November 29, 2005 , which are hereby incorporated herein by reference, with the exception of:
(1) 40 C. F. R. § 52.21(aa), which is incorporated by reference as in effect on August 13, 2012, except for instances in the sections of 40 C.F.R. § 52.21(aa) where 40 C. F. R. § 52.21(b)(49) is referenced. In those instances, paragraph (G) of Reg. 19.904 shall apply; and
(2) 40 CFR 52.21(b)(55-58), 40 CFR 52.21(i)(9), and 40 CFR 52.21(cc), which are not incorporated.
In the absence of a specific imposition of responsibility or grant of authority, the Department shall be deemed to have that responsibility and authority necessary to attain the purposes of the Plan, these PSD Regulations, and the applicable federal regulations, as incorporated herein by reference.
(B) Exclusions from the consumption of increments, as provided in 40 CFR 51.166(f)(1)(iii) as of November 29, 2005, shall be effective immediately. Submission of this Plan under the Governor's signature constitutes a request by the Governor for this exclusion.

### 9

- 3

(C) In addition to the requirements of 40 CFR 52.21(o) as of November 29, 2005, the following requirements [designated as Reg. 19.904(C)(1),(2),(3) and (4)] shall also apply:
(1 ) Where air quality impact analyses required under this part indicate that the issuance of a permit for any major stationary source or for any major modification would result in the consumption of more than fifty percent (50%) of any available annual increment or eighty percent (80%) of any short term increment, the person applying for such a permit shall submit to the Department an assessment of the following factors:
(a) Effects that the proposed consumption would have upon the industrial and economic development within the area of the proposed source; and
(b) Alternatives to such consumption, including alternative siting of the proposed source or portions thereof.
(2 ) The assessment required under subparagraph (4) above shall be made part of the application for permit and shall be made available for public inspection as provided in 40 CFR 52.21(q) as of November 29, 2005.
(3 ) The assessment required under subparagraph (4) above shall be in detail commensurate with the degree of proposed increment consumption, both in terms of the percentage of increment consumed and the area affected.
(4 ) The assessment required under subparagraph (4) above may be made effective where a proposed source would cause an increment consumption less than that specified in said subparagraph if the Director finds that unusual circumstances exist in the area of the proposed source which warrant such an assessment. The Director shall notify the applicant in writing of those circumstances which warrant said assessment. The Commission may rescind or modify the Director's action, upon a showing by the applicant that the circumstances alleged by the Director either do not exist or do not warrant the aforecited assessment.

### 9

- 4

(D) In addition to the requirements of 40 CFR 52.21(p)(1) as of November 29, 2005, the following requirements shall also apply:
Impacts on mandatory Class I federal areas include impacts on visibility. The preliminary determination that a source may affect air quality or visibility in a mandatory Class I federal area shall be made by the Department, based on screening criteria agreed upon by the Department and the Federal Land Manager.
(E) In all instances wherein the aforesaid 40 CFR 51.301 and 40 CFR 52.21 refer to the Administrator or the Environmental Protection Agency, the reference, for the purposes of paragraph (A) of Reg. 19.904, shall be deemed to mean the Arkansas Department of Environmental Quality , unless the context plainly dictates otherwise, except in the following sections:
(1) Exclusion from increment consumption: 40 CFR 52.21(f)(1)(v), (f)(3), and (f)(4)(I);
(2) Redesignation: 40 CFR 52.21(g)(1), (g)(2), (g)(4), (g)(5), and (g)(6);
(3) Air quality models: 40 CFR 52.21(l)(2).
(F) Redesignation of air quality areas in Arkansas shall comply with Arkansas Code Annotated 1987 Section 8-3-101 et seq.
(G) For the purpose of the regulation of GHGs, only the standards and requirements promulgated by EPA as of June 3, 2010, related to the permitting of GHG emissions shall apply to the requirements of 40 CFR 52.21, as of November 29, 2005 , incorporated by reference at Reg.19.904(A). The following definitions and requirements shall also apply:
(1) “Greenhouse gases” (GHGs) means the air pollutant defined as the aggregate group of six greenhouse gases: carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, and shall not be subject to regulation except as provided in Reg. 19.904(G)(4) through Reg.19.904(G)(5), and shall not be subject to regulation if the stationary source:

### 9

- 5 (a) Maintains its total source-wide emissions below the GHG plantwide applicability limitations (hereinafter “PAL ”) level;
(b) Meets the requirements in 40 § C.F.R 52.21(aa)(1) through 40 C.F.R. § 52.21(aa)(15) as outlined in R eg. 19.904(A)(1); and
(c) Complies with the PAL permit containi ng the GHG PAL.
(2) For purposes of Reg. 19.904(G )(3) through Reg.19.904(G )( 5 ):
(a) The term tons per year (tpy) “ CO 2 

### equivalent emissions” (CO 2 

### e) shall represent an amount of GHGs emitted, and shall be computed as follows:
(i ) Multiplying the mass amount of emissions in tpy, for each of the six greenhouse gases in the pollutant GHGs, by each gas’ s associated global warming potential published at Table A - 1 to subpart A of 40 CFR part 98 - Global Warming Potentials (as of October 30, 2009); and
( ii ) Sum the resultant values from Reg. 19.904(G)(2)(a)(i) for each gas to compute a tpy CO 2 

### e. (b ) For purposes of this definition, prior to July 21, 2014, the mass of the greenhouse gas carbon dioxide shall not include carbon dioxide emissions resulting from the combustion or decomposition of non-fossilized andbiodegradable organic material originating from plants, animals, or microorganisms (including products, by-products, residues and waste from agriculture, forestry and related industries as well as the non-fossilized and biodegradable organic fractions of industrial and municipal wastes,including gases and liquids recovered from the decomposition of nonfossilized and biodegradable organic material).

(3) The term “emissions increase” as used in Reg. 19.904(G)(4) through Reg

. 19.904(G)(5 ) shall mean that both a significant emissions increase (as calculated using the procedures in 40 CFR 52.21(a)(2)(iv), as of November 29, 2005), and a significant net emissions increase (as defined in 40 CFR 52.21(b)(3), as of

### 9

- 6 November 29, 2005, and 40 CFR 52.21(b)(23), as of November 29, 2005), occur. For the pollutant GHGs, an emissions increase shall be based on tpy CO 2 

### e, and shall be calculated assuming the pollutant GHGs is a regulated NSR pollutant, and “significant” is defined as 75,000 tpy CO 2 

### e instead of applying the value in 40 CFR 52.21(b)(23)(ii), as of November 29, 2005.
(4) Beginning January 2, 2011, the pollutant GHGs is subject to regulation if:
(a) The stationary source is a new major stationary source for a regulated NSR pollutant that is not GHGs, and also will emit or will have the potential to emit GHGs at 75,000 tpy CO 2 

### e or more; or (b) The stationary source is an existing major stationary source for a regulated NSR pollutant that is not GHGs, and also will have an emissions increase of a regulated NSR pollutant, and an emissions increase of GHGs of 75,000 tpy CO 2 

### e or more. (5) Beginning July 1, 2011, in addition to the provisions in Reg.19.904(G)(4) of this section, the pollutant GHGs shall also be subject to regulation:
(a ) At a new stationary source that will emit or have the potential to emit 100,000 tpy CO 2 

### e or more; or (b) At an existing stationary source that emits or has the potential to emit 100,000 tpy CO 2 

### e or more, when such stationary source undertakes a physical change or change in the method of operation that will result in an emissions increase of 75,000 tpy CO 2 

### e or more.

### ARKANSAS POLLUTION CONTROL 

### & ECOLOGY COMMISSION

July 17, 2013

Ms. Donna Davis 101 EAST CAPITOL SUITE 205 LITTLE ROCK, ARKANSAS 72201 PHONE: (501) 682-7890

FAX: (501) 682-7891 

# RECEIVED
JUL 17 2013
BUREAU OF LEGISLATIVE RESEARCH

Administrative Rules and Regulations Committee Room 433, State Capitol Building Little Rock, Arkansas 72201

RE: Regulation No. 19, Regulations of the Arkansas Plan of Implementation for Air Pollution Control

- 

### FINAL FILING.

Dear Ms. Davis:

I am enclosing the following for filing with your office:

1. One (1) hard copies of the amendment to Regulation No. 19, Regulations of the Arkansas Plan of Implementation for Air Pollution Control. 2. One (1) copies of Commission Minute Order No. 13-19 3. One (1) copy of the Financial Impact Statement.

Please provide written confirmation of your receipt of these materials by file-marking the enclosed copy of this letter and returning it to me.
Thank you for your assistance in this matter.

Enclosures Respectfully,

# ~~ Charles Moulton Administrative Law Judge

# ARKANSAS REGISTER Transmittal Sheet * Use only for FINAL and EMERGENCY RULES

For Office Use Only: Secretary of State Mark Martin State Capitol, Suite 026 Little Rock, Arkansas 72201-1094 (501) 682-3527 

### www.sos.arkansas.gov

Effective Date

___________ Code Number

______________ _

Name of Agency Arkansas Pollution Control 

### & Ecology Commission
Department Arkansas Department of Environmental Quality Bates@adeq.state.ar.us Contact Mike Bates E-mail

___________ Phone (501) 682-0750 A.C.A. §§8-4-201, 8-4-304, and 8-4-311 Statutory Authority for Promulgating Rules

______________________ _ Regulation No. 19, Regulations of the Arkansas Plan of Implementation for Air 

### RuleTitle:

______________________________ _ Pollution Control; Docket No. 13-004-R; Minute Order No. 13-19 Intended Effective Date Date (Cheek One) 

### D Emergency (ACA 25-15-204) 

### D 30 Days After Filing (ACA 25-15-204) 

## D Other

________ --,----,-_ (Must be more than 30 days .fter nllng d.te.)

Electronic Copy of Rule submitted under ACA 25-15-218 by:

Contact Person E-mail Address Legal Notice Published

Final Date for Public Comment

Reviewed by Legislatice Council Adopted by State Agency



### GERTIFICATION OF AUTHORIZED OFFICER 02/27-28/13
04/16/13
06/11/13
06/28/13

Date



### >::;- 1 I Hereby Certify That The Attached Rules Were Adopted C) In**tQinplian~~;Wit~** Act 434 of 1967 the Arkansas Administrative Procedures ct. (ACA 25-15-201 et. seq.) 

### Cl 

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## - '. C')**~:J** i-' 'J) r.n

,; ... 

### - [0 (501) 682-7890 moulton@adeq.state.ar.us Phone Number E-mail Address Administrative Law Judge
Title July 17, 2013
Date
Revised 8/2011 to reneet new legislation passed In 2011.For Office Use Only 

### Effective Date: 

# ARKANSAS STATE LIBRARY
Agency Certification Form For Depositing Final Rules and Regulations At the Arkansas State Library

Documents Services

- Arkansas State Library One Capitol Mall- Little Rock, AR 72201-1094 501-682-2326 Phone; 501-682-1532 FAX

Classification Number: Name of Agency: Arkansas Department of Environmental Quality

Contact Person: Mike Bates Telephone: (501) 682-0750
Statutory Authority for Promulgating Rules: A.C.A. §§8-4-201, 8-4-304, and 8-4-311. 1'

........ )

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# -

Title of Rule: Regulation No 19, Regulations of the Arkansas Plan of Implementation for Air Pollution Control; Docket No. 13-004-R; Minute Order 13-19. Rule Status Effective Date Status Effective Date 

# o New RulelRegulation 

# D Emergency**~** 

### Amended RulelRegulation 

### rgj 10 Days after filing July 27, 2013 

# o Repealed RulelRegulation 

# D Other 

# D Order 

# D Repealed 

# o Emergency RulelRegulation Adopted by State Agency



# D Rule above is proposed and will be replaced by final version 

### cgj Financial and/or Fiscal Impact Statement Attached



# Certification of Authorized Officer

I hereby certify that the attached**rUl~mpliance** 

### with 

### Act 434 of 1967 as amended. Signature:

# &~ 

# 1 Date: July 17, 2013 Title: Administrative Law Judge ..**-~** C: r • :<:-: If)**(/~'** fT1 '"'

1114/99 .-

, l

.-.

### ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION

MINUTE ORDER NO. 13 - \ 

# g SUBJECT Adoption of Revisions to Re2ulation 19, Re2ulations of the Arkansas Plan of Implementation for Air Pollution Control

DOCKET NO. 13-004-R

PAGE 1 OF 1



### Pursuant to public notice and hearing, and in consideration of comments received, the Arkansas Pollution Control and Ecology Commission hereby adopts changes to Regulation No. 19, Regulations of the Arkansas Plan ofImplementation for Air Pollution Control.

PROMULGATED THIS 28 th 

### DAY OF JUNE, 2013, BY ORDER OF THE ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION.

BY:

ATTEST:

# d~;UAL Teresa Marks, Director

COMMISSIONERS

# ~ 1. Bates

# .:...~........-. ___ L. Bengal

### ~ 

# c.... 1. Chamberlin

### ....jSF;.~ 1. Fox 

## ()k D. Hendrix

--'7'''9=:::=00<-:::- 

### L. Hitchcock

## ~ S. Jorgensen (Chair)

# ~ D. Samples 

# V L. Sickel (Vice Chair)**J.Simpson** 

### W. Thompson B. 

### White

______ R. Young

SUBMITTED BY: Mike Bates PASSED: 06/28/2013

EXHIBIT E

# Tab G:

Procedural Requirements

-Regulation Tracking Sheet -Arkansas Register Transmittal Sheet -Arkansas State Library Agency Certification Form1 of 2 EXHIBIT D ADEQ REGULATIONS TRACKING SHEET

Regulation No. 19 Common Name: Regulations of the Arkansas Plan of Implementation for Air Pollution Control

1. Strawman review of draft regulation by key groups.

initiated completed incorporated EPA April 7, 2013 April 11, 2013 N/A ADEQ Legal/Admin. February 4, 2013 February 6, 2013 N/A Industrial/ February 22, 2013* April 16, 2013 N/A Environmental Groups
Comments : *Industry was aware of the revision and supported the decision to include GHG PALS into APC&EC Regulation No. 19. ADEQ received only one comment from EPA on this rulemaking during the public comment period.

2. Proposed regulation presentation to Commission's Regulations Committee for approval to proceed to public comment period.

Date: February 22, 2013 By: Mike Bates Comments/Approval:

Committee recommended adoption of Petition to Initiate Rulemaking

3. Legal notice of proposed regulation and public hearing.

publication dates of publication Arkansas Democrat-Gazette February 27 – February 28, 2013

4. Provide Legislative Council with three copies of proposed regulation and the legislative questionnaire at least ten days prior to the first public hearing.

Date Delivered:

February 27, 2013

5. Hold public hearing(s) on the proposed regulation.

location date hearing chairman ADEQ Commission Room April 2, 2013 John Chamberlin

6. Date of final day of public comment period: April 16, 2013

7. Final proposed regulation and response to comments prepared by Department.

Date initiated:

April 18, 2013 Date completed: April 24, 20138. Formal presentation to the Public Health & Welfare Committee of the Legislative Council.

Date: May 24,2013 By: Teresa Marks
Comments/Approval: Regulation reviewed by Committee

9. Formal presentation of proposed final regulation to the Administrative Rules & Regulations Subcommittee of the Legislative Council (all Regs).

Date: June 11, 2013 By: Teresa Marks
Comments/Approval: Regulation reviewed**..!b='..ly,-,C~o~m'-!.!!.!m.!!;it'""'te::<.>e,,--** ___________ _ 1

0. Presentation of proposed final regulation to Commission's Regulations Committee.

Date: June 28, 2013 By: Mike Bates
Comments/Approval: Committee recommended adoption of final rulemaking.

11. Provide Commission members with copy of proposed final regulation prior to Commission meeting.

Date Delivered:

___ .:::..Ju""'n.:..:e"-'-14.!-L,...::2'-"0..!..1.:::..3

___________________ _ 12. Present proposed final regulation to the Commission for adoption.

Date: June 28, 2013 By: Mike Bates
Comments/Approval: Commission approved adoption of final rulemaking.

13. Send two copies of adopted regulation to Secretary of State.

Date mailed: Upon final promulgation of Regulation.

14. Formally submit adopted regulation to EPA.

Date mailed: Upon final promulgation of Regulation.

PREPARED BY: ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY

By:

# _4J;~'**=:.=-:~=-=-.-=---_** Mike Bates

20f2 EXHIBIT D

# ARKANSAS REGISTER Transmittal Sheet * Use only for FINAL and EMERGENCY RULES

For Office Use Only: Secretary of State Mark Martin State Capitol, Suite 026 Little Rock, Arkansas 72201-1094 (501) 682-3527 

### www.sos.arkansas.gov

Effective Date

___________ Code Number

______________ _

Name of Agency Arkansas Pollution Control 

### & Ecology Commission
Department Arkansas Department of Environmental Quality Bates@adeq.state.ar.us Contact Mike Bates E-mail

___________ Phone (501) 682-0750 A.C.A. §§8-4-201, 8-4-304, and 8-4-311 Statutory Authority for Promulgating Rules

______________________ _ Regulation No. 19, Regulations of the Arkansas Plan of Implementation for Air 

### RuleTitle:

______________________________ _ Pollution Control; Docket No. 13-004-R; Minute Order No. 13-19 Intended Effective Date Date (Cheek One) 

### D Emergency (ACA 25-15-204) 

### D 30 Days After Filing (ACA 25-15-204) 

## D Other

________ --,----,-_ (Must be more than 30 days .fter nllng d.te.)

Electronic Copy of Rule submitted under ACA 25-15-218 by:

Contact Person E-mail Address Legal Notice Published

Final Date for Public Comment

Reviewed by Legislatice Council Adopted by State Agency



### GERTIFICATION OF AUTHORIZED OFFICER 02/27-28/13
04/16/13
06/11/13
06/28/13

Date



### >::;- 1 I Hereby Certify That The Attached Rules Were Adopted C) In**tQinplian~~;Wit~** Act 434 of 1967 the Arkansas Administrative Procedures ct. (ACA 25-15-201 et. seq.) 

### Cl 

## c.-:**:.~', ~'!**  : 

### W /-. 1.'_.

. r--



## - '. C')**~:J** i-' 'J) r.n

,; ... 

### - [0 (501) 682-7890 moulton@adeq.state.ar.us Phone Number E-mail Address Administrative Law Judge
Title July 17, 2013
Date
Revised 8/2011 to reneet new legislation passed In 2011.For Office Use Only 

### Effective Date: 

# ARKANSAS STATE LIBRARY
Agency Certification Form For Depositing Final Rules and Regulations At the Arkansas State Library

Documents Services

- Arkansas State Library One Capitol Mall- Little Rock, AR 72201-1094 501-682-2326 Phone; 501-682-1532 FAX

Classification Number: Name of Agency: Arkansas Department of Environmental Quality

Contact Person: Mike Bates Telephone: (501) 682-0750
Statutory Authority for Promulgating Rules: A.C.A. §§8-4-201, 8-4-304, and 8-4-311. 1'

........ )

..**~:-~**

7 

### , ( r ..• :t' - .,,- V. (;; --J -'**~** ... 

### ,**r'~** r -:.J::

0:' (..) :;1;**}~ ~**  ""-
..... 

# -

Title of Rule: Regulation No 19, Regulations of the Arkansas Plan of Implementation for Air Pollution Control; Docket No. 13-004-R; Minute Order 13-19. Rule Status Effective Date Status Effective Date 

# o New RulelRegulation 

# D Emergency**~** 

### Amended RulelRegulation 

### rgj 10 Days after filing July 27, 2013 

# o Repealed RulelRegulation 

# D Other 

# D Order 

# D Repealed 

# o Emergency RulelRegulation Adopted by State Agency



# D Rule above is proposed and will be replaced by final version 

### cgj Financial and/or Fiscal Impact Statement Attached



# Certification of Authorized Officer

I hereby certify that the attached**rUl~mpliance** 

### with 

### Act 434 of 1967 as amended. Signature:

# &~ 

# 1 Date: July 17, 2013 Title: Administrative Law Judge ..**-~** C: r • :<:-: If)**(/~'** fT1 '"'

1114/99 .-

, l

.-.

# Tab H:

Public Participation

Regulation revisions:

-Public Notice Information and Public Hearing Documentation -Public Comments and Responsive Summary

SIP revisions:

-Public Notice Information and Public Hearing Documentation -Affidavit and Transcript of Public Hearing (No Comments Received)

# Public Participation

Regulation Revisions:

-Public Notice Information and Public Hearing Documentation -Public Comments and Responsive Summary

### NOTICE OF PROPOSED CHANGES TO ONE AIR QUALITY REGULATION AND
NOTICE OF PUBLIC HEARING AND COMMENT PERIOD The Arkansas Pollution Control and Ecology Commission (APC&EC) will hold a public hearing April 2, 2013, to receive public comments on the proposed changes to one APC&EC air pollution control regulation. The hearing will begin at 2:00 p.m. in the Commission Room at the Arkansas Department of Environmental Quality (ADEQ) headquarters building, 5301 Northshore Drive, North Littl e Rock, AR 72118. The deadline for submitting written comments on the proposed changes is 4:30 p.m., April 16, 2013

. In the event of inclement weather or other unforeseen circumstances, a decision may be made to postpone the hearings. If the hearings are postponed and rescheduled, a new legal notice will be published to announce the details of the new hearing date and comment period.
The hearing will be held for proposed changes to APC&EC Regulation 19 (State Implementation Plan [SIP] for Air Pollution C ontrol). APC&EC authority to revise Regulation 19 is fou nd in Ark. Code Ann., Section 8-4-301, et seq.
The substantive proposed changes to Regulation 19 are necessary to implement plantwide applicability limitations ( PALs) for greenhouse gas (GHG) emissions. On July 12, 2012, the Environmental Protection Agency (EPA) published a final rule in the Federal Register which promulgated the third step of the GH G Tailoring Rule, which was instated to “improve the administration of the GHG PSD permitt ing programs.” (77 Fed. Reg. 41, 051, July 12, 2012.) Adoption of the proposed revisions to Regulation 19 will reduce the administrative burden on the Department and will streamline the air permitting process for large facilities subject to GHG permitting. Significant proposed changes are found within Regulation 19, Chapter 9, Prevention of Significant Deterioration . Specifically, at Reg.19.904, Adoption of Regulations, paragraph 19.904(A)(1) is revised to incorporate 40 C.F.R. § 52.21(aa), the section within the Code of Federal Regulations where the GHG PALs federal language is located, and the pre-existing paragraph (A)(1) is renumbered as (A)(2). Also, at 19.904(G)(1), subparagraphs (a), (b), and (c) are added largely verbatim from GHG PALs federal language found at 40 C.F.R. § 52.21(b)(49)(i). Minor changes were also made for clarification and consistency purposes, or to update typographical errors thro ughout Regulation 19. These changes are not related to the above GHG PALs revision, and are n on-substantive items. Revisions made for this purpose include: at 19.904(A), a reference to paragraph 19.904(G) is added, at 19.904(E)(3), a reference to air quality models is correcte d, and at 19.904(G)(1), the word “and” is added. Amendments to Regulation 19 will be submitted t o the EPA for inclusion into Arkansas’s SIP.

### Copies of proposed regulation changes are available for public inspection during normal business

hours at the Public Outreach a nd Assistance (POA) Division in the ADEQ’s headquarters building in North Little Rock, and in ADEQ information depositories located in public libraries at Arkadelphia, Batesville, Blytheville, Camden, Clinton, Crossett, El Dorado, Fayetteville, Forrest City, Fort Smit h, Harrison, Helena, Hope, Hot Springs, Jonesboro, Little Rock, Magnolia, Mena, Monticello, Mountain Home, Pocahontas, Russellville, Searcy, Stuttgart, Texarkana, and West Memphi s; in campus libraries at the University of Arkansas at Pine Bluff and the University of Central Arkansas at Conway; and in the Arkansas State Library, 900 W. Capitol, Suite 100, Little Rock. In addition, copies of the draft regulation showing the proposed changes, along with relate d support documents, are available for viewing or downloading on the draft regulations page of the ADEQ’s Internet website at www.adeq.state.ar.us. Oral and written statements will be accepted at the hearings, but written comments are preferred in the interest of accuracy. In addition, written and electronic mail comments will be accepted if received no later than 4:30 p.m., April 16, 2013. Written comments should be mailed to Doug Szenher, POA Division, Arkansas Department of Environmental Quality, 5301 Northshore Drive, North Little Rock, AR 72118. Electronic mail comments should be sent to: reg-comment@adeq.sta te.ar.us.
Published 27 th 

### and 28 th 

### day of February Teresa Marks, Director, Arkansas Department of Environmental Quality

# Arkansas Democrat·"

- Ofjazette

STATEMENT OF LEGAL ADVERTISING

ADEQ

. 5301 NORTHSHORE DR NORTH LITTLE ROCK AR 72118
ATTN: DATE 02/28/13 ACCT #: L844316

STATE OF ARKANSAS, COUNTY OF PULASKI, Fiscal Office INVOICE #: 2813384 P.O. #:

ss. I, Elizabeth Myers do solemnly swear that I am the Legal Billing Clerk of the Arkansas Democrat

- Gazette, a daily newspaper printed and published in said County, State of Arkansas; that I was so related to thlS publication at and during the publication of the annexed legal advertisement in the matter of: NOTICE pending in the Court, in said County, and at the dates of the several publicatlons of said advertisement stated below, and that during said periods and at said dates, said**news~aper** was**p~inted** and had a bona fide circulatlon in said County; that said**news~aper** had been regularly printed and published ln said County, and had a bona fide circulation therein for the period of one month before the date of the first publication of said advertisement; and that said advertisement was published in the regular daily issues of said newspaper as stated below.

DATE DAY LINAGE RATE 02/27 Wed 192 1.25 02/28 Thu 192 1.25 DATE

TOTAL COST

----------------------- Billing Ad #: 71847952 480.00

OFFICIAL SEAL

- # 12381354 BENNIE: 

### J. FULLER NOTARY puaLIC ,ARKANSAS

_.**~** _.**~UI:AS¥t1** COUNT'!' •

. .! =
.. REMIT TO: ARKANSAS DEMOCRAT-GAZETTE, INC. P.O. BOX 2221 LITTLE ROCK, AR 72203

BILLING QUESTIONS CALL 378-3812



## AD COPY

# Arkansas Democrat Q&azette STATEMENT OF LEGAL ADVERTISING

NOTICE OF PROPOSED CHANGES TO ONE AIR QUALITY REGULATION ANO NOTICE OF PUBLIC HEARING ANO COMMENT PERIOD The Arkansas Pollution Control and Ecology Commission '(APC&EC) will hold a public hear- , ing April 2, 2013, to, receive public comments ori' proposed ,changes to APC&EC Regulation 19 (State Implementation Plan [SIP] for Air Pollution Control). The deadline for submitting written comments on the proposed changes is 4:30 p.m., April 16, 2013. ,

The hearing will begin at 2:00 p.m. in the Commission Room at the Arkansas Department of Environmental Quality (ADEQ) headquarters building, 5301 Northshore Drive, North lillie Rock, AR 72118.

. ,

In the event of inclement weather or other unforeseen circumstances, a decision may be made to postpone the hearing. If the hearing is postponed and re- scheduled, a new legal notice will be published to announce the details of the new hearing date ' and comment period.

APC&EC authority to revise Regulation 19 is found in Arkan- sas Code, Annotated,' Section 8·4-301, et seq. ,

The substantive proposed i changesto Regulation 19 are necessary to implement plantwide applicability limitations (PAls) for greenhouse gas (GHG) emissions. On July 12, 2012, the Environmental Protection Agency (EPA) , published a final rule in the Fed- , eral Register which promulgated the third step of the GHG Tailor- , Ing Rule, which was instated to "improve the administration of the , GHG PSO (prevention of significant deterioration) permitting programs." (77 Fed. Reg, 41,051, July 12, 2012.) Adoption of the proposed reviSions to Regulation' 19 will reduce the administrative burden on the ADEQ and will ' streamline the air permitting pro- cess for large facilities subject to GHG permitting.

Significant proposed changes are found within Regulation 19, Chapter 9, Prevention of: Significant Deterioration. , SpeCifically, at Reg.19.904, Adoption of Regulations, paragraph 19.904(A)(I) is revised to incorporate 40 C.F.R. § , 52.21(aa), the section within the Code of Federal Regulations where the GHG PAls federal , language is located, and the pre- , existing paragraph (A)(I) is renumbered as (A)(2). Also, at 19.904(G)(I), subparagraphs (a), (b), and (c) are added largely verbatim from GHG PAls federal language found at 40 C.F.R. § 52.21 (b)(49Hi).

Minor changes were also made for clarification and consistency purposes, or to update typographical errors throughout Regulation 19. These changes , are not related to the above GHG PAls revision, and are non-substantive items. Revisions

. made for this purpose Include: at 19.904(A), a reference to paragraph 19.904(G) is added, at ' 19.904(E)(3), a reference to air quality models is corrected, and at 19.904(G)(I), the word "and" is added.

Amendments to Regulation 19 , will be submitted to the EPA for

, inclusion into Arkansas's SIP.

Copies of proposed regulation changes are available for public inspection during normal business hours at the Public Outreach and Assistance (POA) Division in the ADEQ's headquarters building in North Little Rock, and in ADEQ information depOSitories located in public libraries at Arkadelphia, Batesville, Bly.thevllle, Camden, Clinton, Crossett, EI Dorado Fayetteviiie, Forrest City, Fori Smith, Harrison, Helena, Hope, Hot Springs, Jonesboro, little ROck, MagnOlia, Mena Monticello, Mountain Home' Pocahontas, Russellville, Searcy: ' Stuttgart, Texarkana, and West Memphis; in campus libraries at ' the University of Arkansas at Pine ' Bluff and the University of Central Arkansas at Conway; and In the**Ark~nsas** State library, 900 W. Caprtol, Suite 100, little Rock. In addition, copies of the draft' regulation showing the proposed changes, along with related support documents, are available for viewing or downloading on the ' draft regulations page of the ADEQ's Internet website at. WWW.adeq.state.ar.us

Oral and written statements will be accepted at the hearing, ' but written comments are preferred in the interest of accuracy. In addition, written and electronic mail comments will be accepted if received no later than 4:30 p.m., April 16, 2013. Written' comments should be mailed to Doug Szenher, POA Division Arkansas Department oi, Environmental Quality, 5301 Northshore Drive, North little Rock, AR 72118. Electronic mail comments should be sent to:

reg-comment@adeq.state.ar.u s. Published February 27 and 28 2013, '

Teresa Marks, Director, Arkansas Department of Environmental Quality

718479521

### STATE OF ARKANSAS

Vendor No. Contact Your reference 

### Purchase Order

100049340

ARKANSAS DEMOCRAT GAZETTE INC PO Box 2221 LITTLE ROCK AR 72203 PO No. Oate

Contact Telephone Fax

Our ref. Incoterms 4501328162 02/21/2013

Irma G. Hill 501-682-0744 501-682-0933

EL FOB DESTINATION

Send Invoice To: AR Dept. of Environmental Quality Ann.: Accounts Payable Ship To: ADEQ Delivery Date: 04/04/2013

5301 NORTHSHORE DRIVE 5301 Northshore Dr. NORTH LITTLE ROCK AR 72118-5317 North Little Rock, AR 72118-5317

Purchase Order Number Must Be Included On All Invoices. All Invoices Must Be Original Copies. Item Material/Description QuantityUM Net Price

0001 10111994 1 EA 120.00 ADVERTISEMENT ,NEWSPAPER Notice of Public Hearing and Comment Period for Proposed Federal Changes to Reg. 19 Net Value

Payment Terms: Net due in 15 days Total net item value USD including tax

Agency contact regarding this order: Brenda Hughes, (501) 682-0722

Publication Date: February 27 & 28, 2013

GENERAL CONDITIONS AND INSTRUCTIONS TO VENDOR:

All purchasing rules and regulations defined by the State of Arkansas apply to this document.

# ~~~~

Purchasing Official/Fiscal Officer

Department of Environmental Quality Page 1/1

Net Amount

$ 120.00

$ 120.00
$ 120.00

# Purchase Requisition 

# /5or 3.;b'n1 

# to::t One Page 

### Date: Wednesday, February 20, 2013 Contact Person: Brenda Hughes Contact Phone Number: (501)682-0722 Suggested Vendor: Arkansas Democrat Gazette Contract #: Street/P.O. Box: 

### P.O. Box 2221 City, State, Zip Code: Little Rock, AR 72203 Vendor Number: 100049340 Vendor Phone Number: (501 )378-3400 Fax#: (501)372-4765
Line Item Description/Comments Qty 

### Unit of Unit of Total

# Measure Measure Price
1 Notice of public hearing and comment period for proposed 1 ea $ 120.00 $ 120.00 federal changes to Reg 19
Notice in paper 2-27 & 28-13 $



### - $



## - $



### - $



## - $



### - $



### - $



## - $



## - $



### - $



## - $



## - Shipping 

### & Handling Sub Total $ 120.00 

### Sales Tax $



### - Grand Total $ 120.00

Commitment Item: 

# I 02


### Line Item Number WBS Element Cost Center
450655



### Budget liaison Signature: ZS...",a::,

## ~ Authorized Signature:

__

# kJ;~~~~~~.-!:!!~~~:::...- 

# ______ _ Date: 

### ;<. ;;'0. 13



## ---

## ~Date:**'1~1.r3 zh//;~** BEFORE THE ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION

IN THE MATTER OF AMENDMENTS TO REGULATION NO. 19, REGULATIONS OF ARKANSAS PLAN OF IMPLEMENTATION FOR AIR POLLUTION CONTROL ) ) ) ) DOCKET NO. 13

- 004 - R

RESPONSIVE SUMMARY FOR REGULATION NO. 19, REGULATIONS OF THE ARKANSAS PLAN OF IMPLEMENTATION FOR AIR POLLUTION CONTROL Pursuant to Arkansas Code Annotated § 8-4-202(d)(4)(C) and Regulation No. 8.815, a responsive summary groups public comments into similar categories and explains why the Arkansas Pollution Control and Ecology Commission ("Commission") accepts or rejects the rationale for each category. On February 8, 2013, the Arkansas Department of Environmental Quality ("ADEQ") filed a Petition to Initiate Rulemaking to Amend Regulation No. 19, Regulations ofthe Arkansas Plan of Implementation for Air Pollution Control. Commission member John Chamberlin acted as Hearing Officer and conducted a public hearing on April 2, 2013. The public comment period ended April 16,2013. ADEQ received
one comment, listed below with the Commission's response.

Comment: "[EPA] understand[s] that these revisions have been proposed to be consistent with federal GHG PSD PAL permitting provisions at 40 Code of Federal Regulations (CFR) 52.21 and that this will be submitted as revisions to the Arkansas State Implementation Plan (SIP). [EPA] note[ s] that the new provisions proposed at Regulation 19, Section 19.904(A)(1) include the incorporation by reference date of August 13,2012. Please be mindful that the ADEQ is responsible for monitoring 40 CFR 52.21(aa) for changes to the PAL permitting provisions and to initiate rulemaking accordingly pursuant to all applicable SIP revision requirements."
Response: The Commission acknowledges the Comment, and appreciates EPA's review of the proposed rulemaking. ADEQ will monitor future federal rulemakings affecting 40 C.F.R.§ 52.2 1 (aa), and will request initiation of corresponding revisions to the Commission's Regulations as necessary.
Conclusion: No revisions to the final rule are necessary due to the comment received.

By: Prepared by: Arkansas Department of Environmental Quality

# ~ -

Mike Bates, Chief, Air Division

Page 1 of 1

# Public Participation

SIP Revisions:

-Public Notice Information and Public Hearing Documentation -Affidavit and Transcript of Public Hearing (No Comments Received)Arkansas Department of Environmental Quality Public Notice The Arkansas Department of Environmental Quality (ADEQ) will hold a public hearing at North Little Rock October 14, 2013, to receive comments on recent revisions to the State Implementation Plan for Air Pollution Control (SIP) prior to submission of the revised plan to the U.S. Environmental Protection Agency (EPA). The hearing will begin at 2:00 p.m. (Central Time) in the Commission Room at the ADEQ Headquarters Building, 5301 Northshore Drive, North Little Rock. The deadline for submitting comments on the SIP revisions is 4:30 p.m. (Central Time) October 28, 2013. The SIP revisions were adopted in response to EPA’s final rule “Prevention of Significant Deterioration (PSD) and Title V Greenhouse Gas (GHG) Tailoring Rule Step 3 and GHG Plantwide Applicability Limits (PALs).” On July 12, 2012, EPA published a final rule in the Federal Register which promulgated the third step of the GHG Tailoring Rule, which was instated to “improve the administration of the GHG PSD permitting programs.” (77 Fed. Reg. 41051, July 12, 2012.) On February 22, 2013, ADEQ initiated PALs revisions to Arkansas Pollution Control and Ecology Commission (APC&EC) Regulation No. 19, “Regulations of the Arkansas Plan of Implementation for Air Pollution Control,” and the APC&EC adopted revisions to Regulation No. 19 on June 28, 2013. Inclusion of the proposed revisions to the SIP will reduce the administrative burden on the AD EQ and will streamline the air permitting process for large facilities subject to GHG permitting. ADEQ is providing the public with the opportunity to comment on this proposed SIP revision in two ways. In addition to commenting at the October 14, 2013, public hearing, interested parties may submit written or electronic mail comments prior to the comment deadline. Oral and written statements will be accepted at the hearing, but written comments are preferred in the interest of accuracy. Written comments should be mailed to Mike Bates, Air Division, Arkansas Department of Environmental Quality, 5301 Northshore Drive, North Little Rock, AR 72118. Electronic mail comments should be sent to: bates@adeq.state.ar.us

. Written or Email comments must be received by 4:30 p.m. (Central Time) October 28, 2013, in order to be considered. In the event of inclement weather or other unforeseen circumstances, a decision may be made to postpone the hearing. If the hearing is postponed and rescheduled, a new legal notice will be published to announce the details of the new hearing date and comment period. Pending any comments received, Arkansas will submit this SIP revision to EPA in order to detail how Arkansas has in place the necessary elements to include PALs in PSD permits. Copies of Arkansas’s proposed SIP revision are available for public inspection during normal business hours at the Public Outreach and Assistance (POA) Division in the ADEQ headquarters building in North Little Rock and in ADEQ information depositories located in public libraries at Arkadelphia, Batesville, Blytheville, Camden, Clinton, Crossett, El Dorado, Fayetteville, Forrest City, Fort Smith, Harrison, Helena, Hope, Hot Springs, Jonesboro, Little Rock (main branch), Magnolia, Mena, Monticello, Mountain Home, Pocahontas, Russellville, Searcy, Stuttgart, Texarkana, and West Memphis; in campus libraries at the University of Arkansas at Pine Bluff and the University of Central Arkansas at Conway; and in the Arkansas State Library, 900 W. Capitol, Suite 100, Little Rock, AR. In addition, an electronic copy of the Arkansas’s proposed SIP revision is available for viewing or downloading on ADEQ’s Internet web site at http://www.adeq.state.ar.us/air/ghg_sip_pn.htm

. Published September 12, 2013 Teresa Marks, Director, Arkansas Department of Environmental Quality

# i\rlkansasl)eunoctat Q&azette
STATEMENT OF LEGAL ADVERTISING

ADEQ 5301 NORTHSHORE DR NORTH LITTLE ROCK AR 72118

ATTN: DATE 09/12/13 ACCT #: L844316

STATE OF ARKANSAS, COUNTY OF PULASKI, Fiscal Office INVOICE #: 2859401 P.O. #:

ss.
I , Yvette Hines, do solemnly swear that I am the L egal Billing Clerk of the Arkansas Democrat

- Gazette, a daily newspaper printed and published i n sa i d County, State of Arkansas; that I was so r elated to this publication at and during the publication of the annexed legal advertisement in the matter o f : hearing pending in the Court, i n said County, and at the dates of the several publications of said adver t isement stated below, and that during**~aid** periods and at said dates, said newspaper was ' printed and had a bona fide circulation in said County; that said newspaper had been regularly p r int e d and published in said County, and had a bona fide circulation therein for the period of
one month before the date of the first publication of said advertisement; and that said advertisement
was published in the regular daily issues of said newspaper as stated below.

DA T E DAY LINAGE RATE 09/12 Thu 161 1.25 DATE DAY LINAGE RATE

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T OT AL COST

- -- -- ---- -- -- ---------- B i lling Ad #: 7 22 34039 i.

. " " 2 01. 2 5 REMIT TO: ARKANSAS DEMOCRAT-GAZETTE, INC. P.O. BOX 2221 LITTLE ROCK, AR 72203

BILLING QUESTIONS CALL378-3812



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# = , IIshed a final rule In the Federal Register which promulgated the third step of the GHG Tailoring

. Rule which was instated to "I mArkansas Department of

Environmental Quality Public Notice The Arkansas Department of Environmental Quality ( ADEe) will I hold a public hearing at North Lit- ' j He Rock October 14, 2013, to re- J. ' ceive comments on recent'revi-

. . sions

· to the State Implementation I

Plan for Air Pollution Control (SIP)

- '. prior to submission of the revised I plan to**t~e** U

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. Environmental I Protectlon ' Agency (EPA). The hearing will begin at 2 : 00 p.m

. i (Central Time) in the Commission 

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. Room at the ADEQ Headquarters ., Building , 5301 Northshore Drive , I I North Little Rock

. The deadline f or I submitting comments on the

. SIP

revisions is 4 : 30 p

. m

. (Central I Time) October 2B , 2013

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, The SIP rev isi ons were adopted in re sponse to EPA's fi nal rule

" Prevention of Signi fi cant Deterioration (PSD) and Title V Green- I house Gas (GHG) Tailoring Rule prov'e the admin ist ration of**th~** GHG PSO permlttmg programs. '. (77 Fed

. Reg. 41051, July 12,

, 2012

. ) Oil February 22,

. 2013,

, ADEe initiated PALs reVISions to Arkansas Pollution Control and

. Ecology Commission (APC&EC) Regulation No. 19, " Regulations of the Arkansas Plan**lm~le­** " mentatlon for Air Pollution : Control, " and the APC&EC adopt

- ed revisions to RegulatIOn No. 19

. on June 28, 2013

. Inclusion of the ; proposed revisions to the SIP will reduce the administrative burden

.

. on the AOEQ and**will stre~mline**  . the air permitting process for

" large facilities subject to GHG permitting :

. ,

AOEQ is providing the public with the opportunity to comment on this proposed SIP revision In

r two ways. In addition to com- menting at the October**14, 20~3** **,** public hearing , interested parties
r may submit written or electron i c

mall comments prior to the com-**~** ment deadline

. Oral and written

, statements will be accepted at , the hearing, but written ' com-
' ments are preferred in the Inter- ' ( est of accuracy. Written com-

ments should be mailed to Mike ' Bates Air Division, Arkansas Oepartm'ent of Environmental Quality 5301 Northshore Drive, North

, Little Rock, AR 72118

. Electronic

mall comments should be sent to: bates @a deQ.state .a r.us. Wr i tten or E-mail comments must be re- celveH by 4:30 p

. m

. (Central TIme ) October 28, 2013, in order to be considered.

In the event of inclement weather or other unforeseen circumstances, a dec isi on may be

, made to postpone the hearing

. If the hearing is postponed**~nd r~­**  scheduled, a new

. legal notice Will be published to announce the details of the new hearing date and comment period.

Pending any comments re- c ei ved Arkansas will submit this SIP revision to EPA in order to detail how Arkansas has in place : the necessary elements to in- c lude PALs i n PSD permits

. Copies of Arkansas's proposed '. SIP revisi on are available for pub-

. IIc Inspection during normal busi- nes s hours at the Public Outreach and Assistance (PDA) Division In the ADEQ headquarters build i ng In North Little Rock and in ADEQ information depositories located i n public libraries at Arkadelph ia, Batesville , Blytheville, Camden , Clinton, Crossett , EI Dorado , Fay

- etteville, Forrest City, Fort Smith , Harrison , Helena, Hope, Hot Springs, Jonesboro , Little Rock (main branch) , Magnolia , Mena, Monticello , Mountain Home, Poc

-

, ahontas , Russellville , Searcy ,

, Stuttgart, Texarkana, and West

. Memphis; in campus libraries

. at the University of Arkansa s at Pme Bluff and the University of Central Arkansas at Conway; and in the Arkansas State Library, 900 W

. capitol , Suite 100 , Litt1e Rock , AR

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. In addition, an electronic copy of the Arkansas's-proposed.5lP..reiV'

· =- - - - ----1 sion Is available for viewing or downloading on ADEQ ' s Internet web site at

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Published September 12 , 2013 , Teresa Marks, Director, Arkansas Department of Envirom)1ental Quality

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### ~/RESPONSIVE SUMMARY FOR STATE IMPLEMENTATION PLAN REVISION TO INCLUDE PLANTWIDE APPLICABILITY LIMITS

Pursuant to Arkansas Code Annotated § 8-4-202(d)(4)(C) and Regulation No. 8.815, a responsive summary groups public comments into similar categories and explains why the Arkansas Pollution Control and Ecology Commission ("Commission") accepts or rejects the rationale for each category. On June 28, 2013, the Arkansas Department of Environmental Quality ("ADEQ") filed with the Commission a Petition to Adopt Rulemaking to Amend Regulation No. 19, Regulations of the Arkansas Plan of Implementation for Air Pollution Control. Subsequently, ADEQ prepared a State Implementation Plan ("SIP") revision related to the rulemaking, which included Plantwide Applicability Limits. On October 14, 2013, ADEQ Program Support Assistant Chief, Mike Porta, acted as Hearing Officer and conducted a public hearing for SIP revisions. The public comment period ended October 28,2013. ADEQ received no comments during the comment period.

Conclusion: No comments were received pertaining to this SIP revision; therefore, revisions to the final document are not necessary.

By: Prepared by: Arkansas Department of Environmental Quality

# U~ Mike Bates, Chief, Air Division

Page 1 of 1Affidavit Regarding Arkansas's State Implementation Plan (SIP): Public Hearing for Revision to include Plantwide Applicability Limits (PALs)

Before me, the undersigned authority, personally appeared Mike Bates, who, being by me duly sworn, deposed as follows:

My name is Mike Bates, I am of sound mind, capable of making this affidavit, and personally acquainted with the facts herein stated:

I am the Division Chief for the Air Division of the Arkansas Department of Environmental Quality (ADEQ) in its regular course of business, and I am familiar with the public participation process for Arkansas's SIP.

I attest that a Public Hearing was publicly noticed September 12,2013, and held at the ADEQ Headquarters at 2:00 p.m., on October 14,2013. No comments
were received at the Hearing or at any time during the public comment period, which ended October 18,2013, at 4:30 p.m. A transcript of the Hearing is included as part of the record for Arkansas's proposed SIP revision for PALs.

Affiant: Mike Bates, Air Division Chief Arkansas Department of Environmental Quality

SWORN AND SUBSCRIBED before me, on

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# n~ 2013:

( / My Commission expires:

County PATRICIA GOFF SAUNE COUNlV NOTARY PUBUC

- ARKANSAS My CommiIIion Expirea MayZl. 2017 Commlsalon No. 12380524 Notary's Printed NameTranscript of Public Hearing for Arkansas’s State Implementation Plan (SIP): Plantwide Applicability Limits Revision

“Today is October 14, 2013, and we are here in the Commission Room of the Arkansas Pollution Control and Ecology Commission at the Arkansas Department of Environmental Quality [headquarters building] fo r a public hearing on the SIP. We are making SIP revisions in order to implement EPA’s final rule on the Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule Step 3, Plantwide Applicability Limits. We are pr oviding an opportunity to comment on these; we are having a hearing here this afternoon and the comment period shall remain open until 4:30 p.m., on October 28, 2013. After the comment period ends, [the state] will be submitting the final document to EPA for their approval. Copies of the SIP are available here and have been submitted to libraries throughout the state for review.

At thi s time, we will accept comments from the audience. Is there anyone who wishes to comment from t he audience? [No response from those present] Seeing no one wishing to comment, we will close the hearing and we remind everyone that the comment period will remain open until 4:30 p.m., on October 28, 2013. Thank you very much for your attendance.” —Mike Porta, Hearing Officer

# Tab I:

State Requirements for State Implementation Plan Development

### State Requirements: State Implementation Plan Development

Under Ark. Code Ann. §§ 8-4-317(b)(1)(C )(i ) and (ii), in developing and implementing a state implementation plan, the Arkansas Department of Environmental Quality shall include a written explanati on of the rationale for the proposal, demonstrating the reasoned consideration of the factors in exercising powers as defined in Ark. Code Ann. § 8-4-312 as applicable.

The major changes adopted in Regulation No. 19 included EPA’s final rule “Prevention of Signific ant Deterioration and Title V Greenhouse Gas [“GHG”] Tailoring Rule Step 3 and GHG Plantwide Applicability Limits [“PALs”]” to implement PALs for GHG emission sources in Ar kansas. Th e regulatory amendments related to the SIP involved:
a) Revision of Arkansas Pollution Control and Ecology Commission (“ APC&EC”) R eg. 19.904(A)(1) to incorporate 40 C.F.R. § 52.21(aa), the section within the Codeof Federal Regulations where the GHG PALs federal language is located, and the preexisting paragraph (A)(1) is renumbered as (A)(2);
b) Addition of largely verbatim language from GHG PALs federal language found at 40 C.F.R. § 52.21(b)(49)(i) to APC&EC Reg. 19.904(G)(1), subparagraphs (a), (b), and (c);

Ar kansas state law and APC&EC Regulation No. 8 provide the administrative procedure to initiate r ulemaking and are designed to ensure public notice and comment requirements are met. Both the r ulemaking and SIP development process must ensure that the public has the opportunity to review proposed changes, provide comment, and that any legal challenges to the amended r egulations can be properly answered. Based on the state law and procedures, APC&EC cannot adopt prospective federal regulations by reference into state regulations because such adoption does not adhere to public notice and comment provisions.
In 1995, the Arkansas Attorney General issued an opinion which specifically addresses adopting future legislation, rules, regulations or amendments by reference (“prospective rulemaking”). The opinion sta tes that doing so would run afoul of the constitutional separation of powers doctrine. Ark. Const. art. 4, §§ 1 and 2. The Attorney General opined:
It is generally stated, pursuant to this doctrine, that the legislature may confer discretion in the administration of the law. It may not, however, delegate the exercise of its discretion as to what the law shall be. 16 C.J.S. Constitutional Law § 137 (1984). The latter form of delegation constitutes an unlawful delegation of legislative authority, and has been held to preclude legislative attempts to adopt by reference future legislation,Arkansas State Implementation Plan Revision

State Requirements: SIP Development

2 of 2 

### rules, regulations or amendments to existing regulations. 1 

### See generally Cheney v. St. Louis Southwestern Railway Co. , 239 Ark. 870, 394 S.W.2d 731 (1965) (rejecting as unconstitutional that part of the Income Tax Law of 1929 under which certain corporate tax liabil ity was to be based upon a formula subject to prospective federal legislation or administrative rules); City of Warren v. State Construction Code Commission, 66 Mich. App. 493, 239 N.W.2d 640 (1976) (stating that while the legislature clearly may incorporate by reference existing statutes, it cannot adopt by reference future legislation, rules, or regulations which are subsequently enacted or promulgated by another sovereign authority).
In the language found at 40 C.F.R. § 52.21(b)(49), prospective rulemaking is entwined in the federa l definition of “subject to regulation,” which makes pollution standards effective at the state level as of the effective federal date. 2 

### Because standards are often finalized at the federal level years before regulations are adjusted at the state level, the federal language found at 40 C.F.R. § 52.21(b) cannot be incorporated verbatim into APC&EC regulations. The Arkansas Attorney Ge neral’s opinion clearly prohibits incorporating by reference future legislation, rules, regulations, or amendments.
Including federal PALs revisions in APC&EC Regulation No. 19 through a verbatim incorporation of the federal rule was impossible because of the multiple citations in the federal PALs rule which refer back to 40 C.F.R. § 52.21(b)(49). 3 

### Therefore, language was inserted verbatim from the federal rule as was legally feasible, and further rationale for this rulemaking is absolved under Ark. Code Ann. § 8-4-317(b)(1)(C)(ii).
The APC&EC will hold a public hearing and provide a 30-day public comment period to afford any interested party the opportunity to submit comments on the proposed state implementation plan submittal in its entirety as required under Ark. Code Ann. §§ 8-4-317(b)(1)(A) and (B).

1 The desire for uniformity of federal-state regulation has led to states’ adoption in some instances of existing federal legislative policies and prospective administrative determinations thereunder. See State v. Hotel Bar Foods, Inc. , 18 N.J. 115, 112 A.2d 726, 732 (1955) (stating that “there are reasoned decisions which tend to support the view ... that a state legislature, in dealing with [a matter that is] properly subject to extensive federal regulation, may constitutionally provide that its administrator’s regulations shall be brought into conformity with pertinent federal regulations as they are duly promulgated and amended from time to time.”)

2 40 C.F.R. § 52.21(b) “ (49) Subject to regulation means, for any air pollutant, that the pollutant is subject to either a provision in the Clean Air Act, or a nationally

- applicable regulation codified by the Administrator in subchapter C of this chapter, that requires actual control of the quantity of em issions of that pollutant, and that such a control requirement has taken effect and is operative to control, limit or restrict the quantity of emissions of that pollutant released from the regulated activity. ”

3 Federal Register Volume 77, Number 134 (Thursday, July 12, 2012) Pages 41051

- 41075