# ADEQ

A R K A N S A S Department of Environmental Quality
July 7, 2010
TomDiggs AssociateDivision Director for AirPrograms 6PD US EPA Region 6 1445 Ross Avenue, Suite 1200 Dallas, TX75202-2733

RE: State Delegation ofSection 112 Standards
DearMr. Diggs: 

### RECEI\'ED- bPDL 

## AIR PLMlHIHG SEC. 1

I)JUL 12 

## P11 I: 07

The delegation ofthe Maximum Available Control Technology (MACT) Standards promulgated at 40 CFRPart 63 has been a long standing issuebetween the Arkansas Department of Environmental Quality(ADEQ) and EPA Region 6. Thepurpose ofthis letteristo request straight delegation ofCleanAirAct (CAA) Section 112 airtoxic standards, as further described below. ADEQintends to implementtherequested standards unchanged through ourapproved Title V Operating PermitProgram. ADEQ does not seek delegation for area source standards that do not federallyrequire obtaininga Title V (Part 70) operatingpermit nordo we seek delegation of CAA Section 112(r).
Pursuantto40 CFR 63.91, straightdelegationforCAAAct 112 standards canbeconferred to a state that intends to implementthe federal standards "unchanged". The Arkansas Title V, OperatingPermit Program, was approvedbyEPAwith ail effectivedate ofthe latestrevisions beingNovember 8, 2004. The up-front approval criteriaspecified at 40 CFR 63.91(d)(3) is (interim orfinal) approval ofthe Title V program. Therefore, ADEQ submits that ithas satisfied thecriteria for straightdelegationofCAASection 112 standards as they applyto Part 70 (Title V) sources. TheArkansas DepartmentofEnvironmental Quality(ADEQ)requests straight delegation for Part 63 General provisions as well as the specific standards as identified in Appendix A that are applicableto Part 70 sources.
To facilitate this process and guide the ADEQ and EPA toward ultimate federal rulemaking pursuant to CAA Section 112(1)(5) delegating the implementation and enforcementofthe requested standards to ADEQ, a draftMemorandum ofAgreement is enclosed. The draft MOA addresses ADEQ's legal authority, resource adequacyand timelyimplementationofthe CAA Section 112 standards as well as othermatters relevantto delegation ofthe CAA Section 112 standards.

ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY 5301 NORTHSHORE DRIVE (NORTH liTTlE ROCK (ARKANSAS 72118-5317I TELEPHONE 501-682-0744 I FAX 501-682-0880 www.adeq.sfate.ar.usTomDiggs July 7, 2010 Page 2of2


### We look forward to working withEPAto finalize this process. Ifyou should any questions regarding this letter or enclosures, please feel free to contact me at 501-682-0750.
Sincerely,

Mike Bates Chief AirDivision

cc: Karen Bassett, ChiefDeputyDirector, ADEQ
enclosure/attachment

### APPENDIX A

Clean AirAct Section 112 (40 CFR Part 63) Standards ' 

### Included in ADEQ lnitital Delegation Request (July 201 O)

. 40 CFR Part 63 Subpart A 8 ·F

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### Memorandum ofAgreementbetween theArkansas DepartmentofEnvironmental Quality and the U.S. Environmental Protection Agency, Region 6 Regarding Section 112, Clean AirAct Implementation

The purpose ofthis Memorandwn ofAgreement (MOA) is to provide for a procedure to facilitate delegation by the United States Environmental Protection Agency (U.S. EPA) to the Arkansas Department ofEnvironmental Quality (ADEQ) ofauthority to implement and enforce certain standards promulgated by U.S. EPA under Section 112 ofthe Clean Air Act, as amended, excluding 112(r). This MOA sets forth specific expectations and responsibilities of ADEQ and U.S. EPA, describes a formal procedure for delegating standards applicable to Title V sources, and describes a formal procedure for cooperative information sharing between ADEQ and U.S. EPA. ADEQ and U.S. EPA recognize that timely delegation of Section 112 responsibilities is vital to implementation ofboth the Title V and Section 112 programs. ADEQ and U.S. EPA affirm their commitment to an effective State/U.S. EPApartnership, and agree to review the MOA as the need arises.

ADEQ has requested delegation ofresponsibilities for implementation and enforcement of selected emission standards and other requirements promulgated under Section 112 through the process set out in this MOA. ADEQ has not requested and at this time does not intend to request delegation ofthe accidental release program under Section 112 (r) nor the standards applicable to areas sources not requiredto obtain a Title V permit. This MOA addresses only those provisions and responsibilities for which Arkansas has requested delegation. Background
Section 112 requires U.S. EPA to develop National Emission Standards for Hazardous Air Pollutants (NESHAPs). Section 112(1) authorizes the U.S. EPA Administrator to delegate the authority for the implementation and enforcement ofstandards promulgated under Section 112 to 'any State that applies for such delegation and that can demonstrate that it has in place a program that meets the criteria set forth in Section 112(1) and its implementing regulations at 40 CFR § 63.91. The Administrator has delegated the authorityto approve state programs to theRegional Administrators.
The U.S. EPA has approved the Arkansas Title V, Operating Permit Program, with effective date of the latest revision being November 8, 2004. The ADEQ Operating Permit program incorporates New Source Review permitting within one permit ("Title V"). 

### ADEQ will enforce Section 112 standards applicable to the Title V sources by including such Section 112 standards in Title V permits when they are issued or updated. Authority to implement and enforce future Section 112 standards will be delegated to ADEQ in accordance with thisMOA.Policy Statement ADEQ and U.S. EPA hereby establish a process for delegation of responsibilities to implement this memorandum. ADEQ and U.S. EPA will presume delegation ofSection 112 standards which apply to major sources which subject the source to Title V permitting as promulgated by U.S. EPA unless ADEQ notifies U.S. EPA otherwise within 45 days ofpromulgation of such standard as specified in this agreement. Both ADEQ and U.S. EPA recognize that ADEQ's ability to implement and enforce a Section 112 standard in a timely manner will depend upon its having access to information regarding such standard prior to the final promulgation ofsuch standard. The delegation process must thereforebe an interactive, information-sharing process that will begin prior to promulgationbyU.S. EPA oftheSection 112 standard tobedelegated. ADEQ shall implement Section 112 standards pursuant to this MOA through the Title V permit. Pursuant to Arkansas Code Annotated §8-4-301 

### et seq., ADEQ has the authority to include Section 112 requirements in permits issued by ADEQ. ADEQ shall include applicable Section 112 requirements in Title V permits for existing sources and for new sources. The U.S. EPA shall retain responsibility for implementation and enforcement of any Section 112 standard for which ADEQ declines to accept implementation authority orhas relinquished that authority. ADEQ and U.S. EPA agree to implementthe following**procedure~:** I. Within 90 days of final signature of this MOA, the U.S. EPA shall send a Direct Final Rule and 

# aProposed Rule to the Office ofFederal Register in regard to delegation ofauthority to ADEQ to implement and enforce Section 112 standards.
II. Sixty days prior to final promulgation ofa Section 112 standard, U.S. EPA shall provide ADEQ with any information in its possession regarding Arkansas sources that maybe subject to such standard.
III. Following final promulgation by U.S. EPA ofa Section 112 standard:
A. U.S. EPA shall provide ADEQ with all applicable forms and other supportingresources, ifavailable.
B. U.S. EPA shall provide ADEQ with access to the applicable Maximum Achievable Control Technology("MACT") database, ifavailable.
IV. The process for delegating implementation and enforcement authority following final promulgation by U.S. EPA ofa Section 112 standard will be follows:

2A. 

### Implementation Authority. Upon final signature of this MOA, implementation authority is delegated as follows; 1. 

### ADEQ shall receive initial delegation upon the effective date of the federal rulemaking as addressed at I. 

### above regarding this matter. The initial list of Section 112 standard that are delegated to ADEQ are attached as Appendix A. 2. U.S. EPA automatically delegates the authority to implement any future Section 112 standard, required to obtain a Title V permit upon the effective date of the promulgated standard. ADEQ shall implement the standard without change. If ADEQ does not intend to accept delegation offuture standard, ADEQ will notify U.S. EPA in writing, within 45 days of the effective date of the promulgated standard.
B. When a new Section 112 standard is promulgated that is applicable to a Title V source, ADEQ will incorporate the requirements of such standard into a Title Vpermit consistentwith the time frame specified in the APC&EC Reg. No. 26.10II for reopening and revising permits. Revisions to the Title V permits by ADEQ shall be made no later than the first compliancedeadline ofthat standard.
C. For the construction ofa new source that will be subject to an existing Section 112 

### standard, ADEQ will incorporate the Section 112 requirements into the applicablepermit.
D. For all existing sources subject to Section 112 standards that have already been promulgated, ADEQ shall incorporate the requirements of such standard into a Title V permit. ADEQ agrees to use its best efforts to issue all Title V permits for sources subject to 2,4,7, and existing 10- yearMACT standardsbythe end ofSFY2011 (June 30, 2011).
V. Timing and Scope ofDelegation. ADEQ shall receive delegation of Section ll2 standards as set forth at N. A. 

### above. Delegation shall include those provisions under 40 CFR §63.9l(g), as amended by 65 Federal Register 55810 (September 14, 2000), and by any subsequent amendments thereto which are identified as CategoryIAuthorities.
VI. Relinquishing Delegation Authority. Upon written notification to U.S. EPA, ADEQ may relinquish the implementation or enforcement authority for a Section 112 standard or portion thereof. ADEQ relinquishment of delegated authority may include, but is not limited to: amendment ofthe standard by U.S. EPA; resource constraints; and changes in U.S. EPA policy or interpretation.

3

### ADEQ shall provide EPA a reasonable period oftime between the notice and the date that ADEQ relinquishes its delegation authority.
VII. Enforcement Authority for Delegated Standards. Arkansas shall enforce the delegated Section 112 standards through the use ofthe Title V permit program and the enforcement authorityprovidedto ADEQ byArkansas law.
VIII. ADEQ shall be responsible for implementing and enforcing delegated Section 1!2 standards throughout the State of Arkansas. Such implementation and enforcement shall include, as appropriate:

A. Distribution of initial notification forms provided by'U.S. EPA to potentiallyaffected sources; B. 

### Receiving initial notifications and compliance certifications from affected sources; C. Issuing or revising Title V permits for affected sources as needed to include Section 112 standards;
D. Specifying Section 112 standards as the underlying authority for permit terms and conditions and assuring compliance with same through implementation ofthe Title Vpermitprogram for affected sources; E. Pursuing timely and appropriate enforcement actions, including the assessment ofcivil penalties, for violation ofthe Section 112 standards and the permits issued byADEQ ; and
F. ADEQ shall renew the Title V permits in a timely manner so as not to allow any time period during which a source subject to a Section 112 standard will be without a permit containing the requirements of the Section 112 standard. ADEQ shall immediately notify U.S. EPA in the event that ADEQ is not able to timelyreissue aTitle Vpermit.
IX. Following delegation of enforcement authority to ADEQ by U.S. EPA, nothing 

### in this MOA or in any delegation of NESHAP standards or requirements shall prohibit U.S. EPA from enforcing any applicable emission standard orrequirementunder Section 112.
X. ADEQ will obtain concurrence from U.S. EPA on any matter involving the interpretation ofSection 112 ofthe CAA or 40 CFR Part 61 and 63 to the extent that interpretation, administration or enforcement by these sections have notbeencoveredbyEPA determination or guidance.
XI. Within 90 days ofthe effective date ofthis agreement U.S. EPA Region 6 shall submit to ADEQ, in electronic format, a copy of each report,

4notification, or written request that has been submitted to Region 6 by a facility in Arkansas in accordance with a Section 112 requirement. U.S. EPA shall also submit to ADEQ within 90 days ofthe effective date of this agreement a copy of any written response made by U.S. EPA to aformentioned reports, notifications, or written requests. The above agreement is effective upon the date the last signature required by this document is affixed. Any modifications ofthis document shall be made in writing only and upon approval by the U.S. EPA and ADEQ. Nothing in this agreement shall be construed to restrict in any way the authority ofthe U.S. EPA or ADEQ to fulfill their respective responsibilities under State and/orFederal law.

AI Armendariz, Regional Administrator U.S. EPA Region 6
Date:

Teresa Marks, Director ADEQ
Date:

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