# (30 aQQ 

# to whom these CFltesents shaQQ come, (jheeting:

Amendments to Department of Environment and Conservation Rules 1200-03-09-.O1 and 1200-03-09-.02, jiled August 29,2011, effective November 2 7,2011.



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# I Department of State For Department of 

### State Use Only 

## I

Division of Publications 

# i 1 312 Rosa L. Parks Avenue, 8th Flwr SnodgrassrlN Tower 

### Sequence Number: 

### 1 Nashville. TN 37243 

## 1 Phone: 615-741-2650 

### Rule ID(s): 

# I i i Fax 615-741-5133 

### File Date: 

## i / Email: reaister.infomation@In.wv I 

## I Effective Date:

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## I 

# Rulemaking Hearing Rule(s) Filing Form

Rulenraking Heariilg Rules are rules filedallerand as a resull of a rulemaking heaimg. TCA Secllon 4-5.205

......... . . 7---~ .. .. ~ 

### l~gencyi~oara/~ommission:

.............. ...... 

### / Environmeni and

~ 

### Consenmiion

~ . . ......_ . . ..; i

............ .............. 

## @vision:. jAirM!u!/on Contro!~

. -. .......... . 

# I I 

### Contact Person: 

## , Lacey 

### J. Hardin ,.~ 

# 1

.......-.-.....- -. - ..... .. . ..... - ... 

# I ~dbress: 

## ! grn 

## lo or L~& C 

### Annex ! 

# I I 401 Church Street 

### .I 

# I

.................. . ....... .............. .... 

### Nashville, Tennessee 

### 37243-1531 -

......... 

# i i

....... ... 

## phone:.. .(6!51.53?-0!45

......... .................... ......... .- .. 

### i 

### i

.. 

### Email: 

# I

................. 

### Lacev.Hardin@aovh,~ .- - .- . ' , 

## 1 Revlsion Type (check all that apply): X 

### Amendment 

## - - New Repeal
Rule(s) Revised (ALL 

### chapters and rules contained in filing must be listed here. if 

### needed, copy and paste additional tables to accommodate multiple chapters. Please enter only ONE Rule NumberIRule Title per row)

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## - -. .- .... .. ..-..... . . -- 

### chapter- Chapter Title

.. -. - .. - -

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-



### SS-7039 (July 2010) RDA 

### 1 

### 693(Place substance of rules and other info here. Statulory authority must be given for each rule change. For information on formatting rules go 

### to htt~:llstate.tn.uslsoshulesll360/1360.htm)

Chapter 1200-03-09 Construction and Operating Permits Amendments Subpart (i) of part 46 of subparagraph (b) of paragraph (4) of rule 1200-03-09-.O1 Construction Permits is amended by adding two new items (I) and (11) as follows: (I) in the event that the US. Court of Appeals for the D.C. Circuit or the US. Supreme Court issues an order which would render GHG emissions not subject to regulation under the Prevention of Significant Deterioration, New Source Review provisions andlor the Title 

### V operating permit program of the Federal Act, then GHGs shall not be subject to regulation, nor shail GHG emissions be required to be included in any construction or operating permit under this regulation 1200-03, as of the effective date of the Federal Register notlce of vacatur. (If) In the event that there is a change to Federal law that supersedes regulation of GHGs under the Prevention of Significant Deterioration, New Source Review provisions and/or the Title 

### V operating permit program of the Federal Act, then GHGs shail not be subject to regulation, nor shall GHG emissions be required to be induded in any construction or operating permit under this regulation 1200-03, as of the effective date of fhe change in Federal law. Part 32 of subparagraph 

### (b) of paragraph (1 1) of rule 1200-03-09-.02 Operating Permits is amended by adding two new subparts 

### (iii) and (iv) as follows: (iii) In the event that the 

### U.S. Courl of Appeals for the D.C. Circuit or the U.S. Supreme Court issues an order which would render GHG emissions not subject to regulation under the Prevention of Significant Deterioration. New Source Review provisions andlor the Title V operating permit program of the Federal Act, then GHGs shall not be subject to regulation, nor shall GHG emissions be required to be Included in any construction or operating permit under this regulation 1200-03, as of the effective date of the Federal Register notice of vacatur. (iv) In the event that there is a change to Federal law that supersedes regulation of GHGs under the Prevention of Significant Deterioration. New Source Review provisions andlor the Title V operating permit program of the Federal Act, then GHGs shall not be subject to regulation, nor shalt GHG emissions be required to be included in any construction or operating permit under this regulation 1200-03, as of the effective date of the change in Federal law.
Authority: T.C.A. 5968-201-101 et seq. and 4-5201 et seq.

SS-7039 (July 2010) RDA I693

### * If 

### a roll-call vote was necessary, the vote by the Agency on these rulemaking hearing rules was as follows: 

# ( Michael Atchison



### Dr. J. Ronald Bailey 

# I Elaine Boyd



### Er. Brian Christman
Dr. Wayne 

### T. Davis 

# 1 DL Mary ~hglish

Gossett Honorable Mayor

Hawkins 

# 1 Helen 

### S. Hennon

Richard M. Holland 

# I

John 

### R. Roberts,

Honorable Mayor Larry Waters 

# ( Alicia 

### M. Wilson 

### Aye No Abstain Absent Signature (if required) 

# J

I 

### certify that this is an accurate and complete copy of rulemaking hearing rules, lawfully promulgated and adopted by the Air Pollution Control Board on 07/13/2011, and is in compliance with the provisions of TCA4-5-222. 

## -
- -



### 55-7039 (July 2010) 3 

### RDA 1693

### I further certify the following:

Notice of Rulemaking Hearing filed with the Department of State on: 0211 111 1 

### Rulemaking Hearing(s) Conducted on: (add more dates). 04/04/11



### Date: Signature: Name of Officer:

Title of Officer: Director. Dlvision of Air Pollution Control

Subscribed and sworn to before me on: 

## /3/ 

# zo// Notary Public Signature: ~y commission expires on. 

# 6. ?0/3

All rulemaking hearing rules provided for herein have been examined by the Attorney General and Reporter ofthe State of Tennessee'and are approved as to legality pursuant to the provisions of the Administrative Procedures Act, Tennessee Code Annotated, Title 4, 

### Chapter 5.



### Attorney General and Reporter 

# gZ-tq-r/ Date 

### Department of State Use 

### Only



### , Filed with the Department of State on: Effective on: 

# .Pi@-

Tre Hargett Secretary of 

### State

RM 09-.01 &OZd.dOC 

### SS-7039 (July 201 0) 

### RDA 

### 16%Public Hearing Comments One copy of a document containing responses to comments made at the public hearing must accompany the filing pursuant to T.C.A. 54-5-222. Agencies shall include only their responses to public hearing comments, which can be summarized. No letters of insuirv from parties questioning the rule will be accepted. When no comments are received at the public hearing, the agency need on& draft a memorandum stating such and include it with the Rulemaking Hearing Rule filing. Minutes of the meeting will not be accepted. Transcripts are not acceptable.

There were no comments received at the public hearing or during the comment period



### RDA 

### 1693

### Regulatory Flexibility Addendum Pursuant to T.C.A. § 

### 4-5-401 through 4-5-404, prior to initiating the rule making process as described in T.C.A. § 

### 4-5-202(a)(3) and T.C.A. 

### 5 4-5-202(a), all agencies shall conduct a review of whether a proposed rule or rule affects small businesses.

The type or types of small business and an identification and estimate of the number of small businesses subject to the proposed ~le that would bear the cost of, or directly benefit from the proposed rule: No impact. The projected reporting, recordkeeping, and other administrative costs required for compliance with the proposed rule, including the type of professional skills necessary for preparation of the report or record: No impact. 

### A statement of the probable effect on impacted small businesses and consumers: No 

### impact. 

### A description of any less burdensome, less intrusive or less costly alternative methods of achieving the purpose and objectives of the proposed rule that may exist, and to what extent the alternative means might be less burdensome to small business: Not applicable. 

### A comparison of the proposed rule with any federal or state counterparts: The federal regulations do not include the provisions in the proposed rule because it is not necessary. However, as a state, any vacatur or stay of federal rules at the federal level will not have an impact on Tennessee rules without these proposed provisions. Without these proposed revisions, if 

### a vacatur or stay of the federal rules occur Tennessee could be stricter than the federal requirements and stricter than some other states. Analysis of the effect of the possible exemption of small businesses from all or any part of the requirements contained in the proposed rule. Not applicable.

RDA 1 

### 693

### Impact on Local Governments Pursuant to T.C.A. 4-5-220 and 4-5-228 "any rule proposed to be promulgated shall state in a simple declarative sentence, without additional comments 

### on the merits of the policy of the rules or regulation, whether the rule or regulation may have a 

### projected impact on local governments." (See Public Chapter Number 1070 ~http://state.tn.us/sos/actsI106Ipub/pclO7O.pdf) 

### of the 2010 Session of the General Assembly)

The Department anticipates that these amended ~lleS will have 

### a positive financial impact on local governments.



### SS-7039 (July 2010) RDA 

### 1693

### Additional Infortnation Required by Joint Government Operations Committee All agencies, upon filing a rule. must also submit the following pursuant to TCA 4-5-226(i)(l). (A) A brief summary of the rule and a description of all relevant changes in previous regulations effectuated by such rule; These proposed revisions revise the requirements for major New Source Review and for major source operating permits in order to provlde a method by which the Chapter 1200-03-09 provisions adopted in accordance with the federal Greenhouse Gas Tailoring Rule and which were effective February 8, 2011, will no longer apply in the event that the U.S. Court of Appeals for the D.C. Circuit or the U.S. Supreme Court issues an order which would render GHG emissions not subject to regulation under the Prevention of Significant Deterioration, New Source Review provisions or the Title 

### V operating permit program of the Federal Act; or there is a change to Federal law that supersedes regulation of GHGs under the Prevention of Significant Deterioration, New Source Review provisions or the Title V 

### operating permit program of the Federal Act, then GHGs shall not be subject to regulation, nor shall GHG emissions be required to be included in any construction or operating permit under this regulation 1200-03, as of the effective date of the change in Federal law. 

### (B) A citation to and brief description of any federal law or regulation or any state law or regulation mandating promulgation of such rule or establishing guidelines relevant thereto;
40 CFR 51 contains the requirements for states that operate their own air pollution control programs. Specifically, 40 CFR 51.166 and 40 CFR 70 contain the requirements for Title V 

### permits and Prevention of Significant Deterioration permits for major sources of air pollution. In establishing the initial greenhouse gas permitting requirements, Tennessee met the above requirement. These proposed revisions, while not mandated by EPA, will provide a level playing field for Tennessee Industries with the surrounding states. We are required to revise our State Implementation Plan (SIP) revisions to EPA, and once the SIP provisions are approved cannot make the SIP less stringent without a lengthy process. By including these provisions in our initial submittal, this process will not have to be followed. (C) 

### identification of persons, organizations, corporations or governmental entities most directly affected by this rule, and whether those persons, organizations, corporations or governmental entities urge adoption or rejection of this rule; Tennessee's industrial community will be most directly affected by these proposed rule revisions, and the revisions were proposed at the request of some members of the industrial community. (D) 

### ldentification of any opinions of the attorney general and reporter or any judicial ruling that directly relates to the rule; 

# I The Department is not aware of any.

(E) An 

### estimate of the probable increase or decrease in state and local government revenues and expenditures, if 

### anv, resulting from the promulgation of this rule, and assumptions and reasoning upon which the estimate is based. An agency shail not state that the fiscal impact is minimal if 

### the fiscal impact is more than two percent (2%) 

### of the agency's annual budget or five hundred thousand dollars ($500,000), whichever is less; 

# I Cannot be determined at this time. 

# 1

(F) 

### ldentification of the appropriate agency representative or representatives, possessing substantial knowledge and understanding of the rule; Lacey J. 

### Hardin Division of Air Pollution Control 9th Floor, L & 

### C Annex 401 Church Street Nashville, Tennessee 37243-1531 SS-7039 (July 201 0) 8 

### RDA 1 693(G) 

### Identification of the appropriate agency representative or representatives who will explain the rule at a scheduled meeting of the committees; Alan 

### M. Leiserson Legal Services Director Department of Environment and conservation 

### (H) Office address, telephone number, and email address of the agency representative or representatives who will explain the rule at a scheduled meeting of the committees; and Office of General Counsel De artment of Environment and conservation 

# P 20' Floor L & C 

### Tower Nashville, Tennessee 37243-1 548 

### (615) 532-01 31 

### Alan.Leiserson@tn.aov 

### (I) Any additional information relevant to the rule proposed for continuation that the committee requests. 

# 1 The Department is not aware of any.

35-7039 (July 2010) RDA 1693SS

- 7037 (July 2009) 1

Department of State Division of Publications 312 Rosa L. Parks, 8th Floor Snodgrass Tower Nashville, TN 37243 Phone: 615.741.2650 Fax: 615.741.5133 Email: register.information@tn.gov For Department of State Use Only Sequence Number: Notice ID(s): File Date: 

# Notice of Rulemaking Hearing

Hearings will be conducted in the manner prescribed by the Uniform Administrative Procedures Act, Tennessee Code Annotated, Section 4

- 5

-

204. For questions and copies of the notice, contact the person listed below. Agency/Board/Commission: Environment and Conservation

Division: Air Pollution Control Contact Person: Lacey J. Hardin

Address: 9 th Floor L & C Annex

401 Church Street Nashville, Tennessee 37243

- 1531 Phone: (615) 532

- 0 545 Email: Lacey.Hardin@gov.tn Any Individuals with disabilities who wish to participate in these proceedings (to review these filings) and may require aid to facilitate such participation should contact the following at least 10 days prior to the hearing:

ADA Contact: ADA Coordinator

Address: TDEC ADA Coordinator

12 th Floor 401 Church Street Nashville, Tennessee 37243 Phone: (615) 532

- 0207 or for hearing impaired, TN Relay Service 1

- 800

- 848

- 0298 Email: Beverly.Evans@tn.gov Hearing Location(s) (for additional locations, copy and paste table)
Address 1: 9 th Floor L & C Annex Address 2: 401 Church Street City: Nashville, Tennessee Zip: 37243

- 1531 Hearing Date : 04/04/11 Hearing Time: 9:30 AM X CST ___EST Additional Hearing Information: There will be a public hearing before the Technical Secretary of the Tennessee Air Pollution Control Board to consider the promulgation of amendment s to the Tennessee Air Pollution Control Regulations a nd the State Implementation Plan pursuant to Tennessee Code Annotated, Section 68

- 201

- 105. The comments received at this hearing will be presented to the Tennessee Air Pollution Control Board for their consideration in regards to the proposed regulatory am endment s . The hearing will be conducted in the manner prescribed by the Uniform Administrative Procedures Act, T

. C

. A

. § 4

- 5

- 201 et s eq. Anyone desiring to make oral comments at this public hearing is requested to prepare a written copy of their comments to be submitted to the hearing officer at the public hearing. Written comments not submitted at the public hearing will be included in the hearing record only if received by the close of business on Monday , April 4, 2 0 1 1 , at the office of the Technical Se cretary, Tennessee Air Pollution Control Board, 9 th Floor, L & C Annex, 401 Church Street, Nashville, TN 37243

- 1531.SS

- 7037 (July 2009) 2

The Tennessee Air Pollution Control Regulations are proposed to be amended by revising the requirements for major New Source Review and re vising the requirements for major source operating permits in order to provide a method by which the chapter 1200

- 03

- 09 provisions adopted in accordance with the federal Greenhouse Gas Tailoring Rule and which were effective February 8, 2011, will no longe r apply in the event that the U.S. Court of Appeals for the D.C. Circuit or the U.S. Supreme Court issues an order which would render GHG emissions not subject to regulation under the Prevention of Significant Deterioration, New Source Review provisions or the Title V operating permit program of the Federal Act; or there is a change to Federal law that supersedes regulation of GHGs under the Prevention of Significant Deterioration, New Source Review provisions or the Title V operating permit program of the Federal Act, then GHGs shall not be subject to regulation, nor shall GHG emissions be required to be included in any construction or operating permit under this regulation 1200

- 0 3, as of the effective date of the change in Federal law. If you have any que stions about the origination of this rule change, you may contact Ms. Lacey Hardin at (615) 532

- 054 5

. Revisions considered at this hearing may be adopted by the Tennessee Air Pollution Control Board under T.C.A. 68

- 201

- 105, the Board general authority to promulgate rules

. The changes proposed below may be revised based on comments received from the public, the regulated community, and any other affected entities. The Tennessee Air Pollution Control Board will consider all comments and set the fee appropr iately. Materials concerning the proposed actions will be available at http://tn.gov/environment/apc/ppo/ and also for public inspection during normal working hours starting on Tuesday , March 1 , 201 1 , at the following locations: Air Pollution Control Division Pollution Control Division Air Pollution Control Division 9th Floor, L & C Annex Metropolitan Health Dept. Cookeville EFO 401 Church Street 311 23rd Avenue, North 1221 South Willow Avenue Nashville, TN 37243

- 1531 Nashville, TN 37203 Cookeville, TN 38506 Air Pollution Control Division Air Pollution Control Division Air Pollution Control Division Knoxville EFO Johnson City EFO Jackson EFO 3711 Middlebrook Pk., Suite 220 2305 Silverdale Road 1625 Hollyw ood Drive Knoxville, TN 37921 Johnson City, TN 37601

- 2162 Jackson, TN 38305 Air Pollution Control Division Knox County Department of Division of Air Pollution Control Columbia EFO Air Quality Management Memphis Environmental Field Office 1421 Hampshire P ike 140 Dameron Avenue, Suite 242 8383 Wolf Lake Drive Columbia, TN 38401 Knoxville, TN 37917 Bartlett, TN 38133

- 4119 Air Pollution Control Division Air Pollution Control Division Kingsport Public Library Chattanooga EFO Nashville EFO 400 Broad Street 540 McCallie Avenue, Suite 550 711 R. S. Gass Boulevard Kingsport, TN 37660 Chattanooga, TN 37402 Nashville, TN 37243 Chattanooga

- Hamilton County U.S. EPA, Region IV Air Pollution Control Bureau APTMD

- 12th Floor, Atlanta Federal Center 6125 Preservation Dr ive 61 Forsyth Street S.W. Chattanooga, TN 37416 Atlanta, GA 30303 c/o Mr. Richard Schutt , Chief All persons interested in the air quality of the State of Tennessee are urged to attend and will be afforded the opportunity to present testimony to the hear ing officer regarding the proposed additions and/or revisions to the State Implementation Plan

. Revision Type (check all that apply): X Amendment New RepealSS

- 7037 (July 2009) 3

Rule(s) ( A LL chapters and rules contained in filing must be listed here . If needed, cop y and paste additional tables. Please enter only ONE Rule Number/RuleTitle per row.) Chapter Number Chapter Title 1200

- 03

- 09 Construction and Operating Permits Rule Number Rule Title 1200

- 03

- 09

- .0 1 Construction Permits 1200

- 03

- 09

- .02 Operating Permits
(Place substance of rules and other info here. Statutory authority must be given for each rule change. For information on formatting rules go to http://tn.gov/sos/rules/1360/1360.htm ) Chapter 1200

- 03

- 09 Construction and Operating Permits
Amendments in redline form Subpart (i) of part 46 of subparagraph (b) of paragraph (4) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by adding two new items (I) and (II) as follows: (I) In the event that the U.S. Court of Appeals for the D.C. Circuit or the U.S. Supreme Court issues an order which would render GHG emissions not subject to regulation under the Prevention of Significant Deterioration, New Source Review provisions and/or the Title V operatin g permit program of the Federal Act, then GHGs shall not be subject to regulation, nor shall GHG emissions be required to be included in any construction or operating permit under this regulation 1200

- 3, as of the effective date of the Federal Register not ice of vacatur. (II) In the event that there is a change to Federal law that supersedes regulation of GHGs under the Prevention of Significant Deterioration, New Source Review provisions and/or the Title V operating permit program of the Federal Act, then GHGs shall not be subject to regulation, nor shall GHG emissions be required to be included in any construction or operating permit under this regulation 1200

- 3, as of the effective date of the change in Federal law. Part 32 of subparagraph (b) of paragr aph (11) of rule 1200

- 03

- 09

- .02 Operating Permits is amended by adding two new subparts (iii) and (iv) as follows: (iii) In the event that the U.S. Court of Appeals for the D.C. Circuit or the U.S. Supreme Court issues an order which would render GHG emis sions not subject to regulation under the Prevention of Significant Deterioration, New Source Review provisions and/or the Title V operating permit program of the Federal Act, then GHGs shall not be subject to regulation, nor shall GHG emissions be require d to be included in any construction or operating permit under this regulation 1200

- 3, as of the effective date of the Federal Register notice of vacatur. (iv) In the event that there is a change to Federal law that supersedes regulation of GHGs under the Prevention of Significant Deterioration, New Source Review provisions and/or the Title V operating permit program of the Federal Act, then GHGs shall not be subject to regulation, nor shall GHG emissions be required to be included in any construction or o perating permit under this regulation 1200

- 3, as of the effective date of the change in Federal law.
Authority: T.C.A. §§68

- 201

- 10 1 et seq. and 4

- 5

- 201 et seq.SS

- 7037 (July 2009) 4

I certify that the information included in this filing is an accurate and complete represen tation of the intent and scope of rulemaking proposed by the agency.

Date: Signature: Name of Officer: Barry R. Stephens, P.E. Title of Officer: Director , Division of Air Pollution Control

Subscribed and sworn to before me on:

Notary Public Signature: My commission expires on:

Department of State Use Only
Filed with the Department of State on:

______________________________ Tre Hargett Secretary of State

09

- . 01 & .02 c1 redline .doc