APC-S-1, APC-S-5, APC-S-6, SIP Revision, Public Notice, September 13, 2010 MISSISSIPPI COMMISSION ON ENVIRONMENTAL QUALITY NOTICE OF PROPOSED RULEMAKING NOTICE OF PUBLIC HEARING PUBLIC NOTICE START DATE: SEPTEMBER 13, 2010
PLEASE TAKE NOTE that the Mississippi Commi ssion on Environmental Quality (“Commission”) is considering a Revision to the State Implementation Plan for Air Pollution Control (SIP Revision) and amendments to state air pollution contro l regulations. The proposed SIP Revision and regulation amendments will be applicable statewid e. The Commission’s authority to adopt the SIP Revision is found at Mississippi Code Annotated S ection 49-2-9(1)(b) and Section 49-17-17(b). The Commission’s authority to adopt amendments to the regulations is found at Mississippi Code Annotated Section 49-2-9(1)(b) and Section 49-17-17(i)
I. The proposed actions concern adoption of:
1. Amendments to “Air Emission Regulations for the Prevention, Abatement, and Control of Air Contaminants,” APC-S-1 to adopt, by reference, amendments to Federal New Source Performance Standards, as promulgated in 40 CFR Part 60 and Federal National Emission Standards for H azardous Air Pollutants as promulgated in 40 CFR Parts 61 and 63.
2. A SIP Revision and amendments to “Regul ations for the Prevention of Significant Deterioration of Air Quality”, APC-S-5 which will incorporate by reference updated relevant portions of federal regulati ons as promulgated in 40 CFR Parts 51.166, 52.21, and 52.22 in order to make the state Prevention of Significant Deterioration of Air Quality permitting program consistent with the federal requirements. Specifically, the proposed amendments will incorporate EPA’s recently promulgated Tailoring Rule for Greenhouse Gases wh ich specifies that beginning in 2011, projects that will substantially increase gr eenhouse gas emissions will require an air permit. The revision does not incorporate implementation of fine particulate matter that was promulgated on May 16, 2008. The Commission will propose a SIP revision for implementation of fine particul ate matter in a separate action at a later date.
3. Amendments to “Air Emissions Operati ng Permit Regulations for the Purposes of Title V of the Federal Clean Air Act”, APC-S-6, in order to make the Title V permitting program consistent with the federal requirements. Specifically, the proposed amendments will incorporate EP A’s recently promulgated Tailoring Rule.
II. Manner By Which the Public May Comment.
Copies of the proposed amendments to the re ferenced regulations may be obtained by calling Ms. Maya Rao at 601-961-5242 or Mr. Conni e Simmons at 601-961-5165 or writing to Mississippi Department of Environmental Quality, Air Division, P.O. Box 2261, Jackson, Mississippi 39201. For persons with internet access, a copy of the proposed SIP revision and proposed amendments to the referencedregulations may be found on the Mississippi Department of Environmental Quality’s website at http://www.deq.state.ms.us . Also, copies of the proposed SIP Revision and proposed amendm ents to the referencedregulations will be available for public review through Wednesday, October 13, 2010, in the main branch ofAPC-S-1, APC-S-5, APC-S-6, SIP Revision, Public Notice, September 13, 2010 public libraries in the cities of Gulfport, Jackson, and Tupelo in the State of Mississippi. The proposed SIP Revision and amendments to the re ferenced regulations ma y also be reviewed in the offices of the Mississippi Department of Environmental Quality, 515 E. Amite Street, Jackson, Mississippi. Please contact Ms. E dna Banks at (601) 961-5171 to schedule an appointment.
Members of the public may present verbal or written comments at the public hearing described below. Also, written statements re garding the proposed SIP Revision and proposed regulation amendments will be made part of the public hearing record if delivered by 5:00 p.m., Wednesday, October 13, 2010, to the attenti on of Ms. Maya Rao at the address shown above.
III. Notice of Public Hearing.
A public hearing regarding the proposed SIP Revision and regulation amendments will be conducted. The hearing will be held on Wedne sday, October 13, 2010, at 10:00 a.m. in the Commission Hearing Room (Room 104A) of the Mississippi Departmentof Environmental Quality Office Building located at 515 E. Amite Street, Jackson, Mississippi 39201.

IV. Additional Information.
For additional information, please contact Ms. Maya Rao at 601-961-5242 or Mr. Connie Simmons at 601-961-5165.MISSISSIPPI DEPARTMENT OF ENVIRONMENTAL QUALITY OFFICE OF POLLUTION CONTROL

PROPOSED STATE IMPLEMENTATION PLAN (SIP) REVISION

REGARDING REQUIREMENTS OF THE FEDERAL TAILORING RULE FOR GREENHOUSE GASES AS IT PERTAINS TO PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY

INCLUDING AMENDMENTS TO

“REGULATIONS FOR THE PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY” APC-S-5

Public Notice Start Date: September 13, 2010 Public Hearing Date: October 13, 2010GHG Proposed SIP Revision September 13, 2010 TABLE OF CONTENTS

1.47 Introduction: Proposed State Implementation Plan (SIP) Revision Regarding Requirements of the Federal Tailoring Rule for Greenhouse Gases As It Pertains to the Prevention of Significant Deterioration of Air Quality (PSD).

1.48 Notification of Public Hearing for the Proposed SIP Revision

3.21 Legal Authority for the Proposed SIP Revision

5.19 Control Strategy for the Proposed SIP Revision

6.23 Control Regulations for the Proposed SIP Revision

14.1.18 Health Effects of the Proposed SIP Revision

14.3.18 Economic Effects of the Proposed SIP Revision

14.5.18 Social Effects of the Proposed SIP Revision

14.6.18 Air Quality Effects of the Proposed SIP Revision

Appendix C-21 Proposed amendments to “Regul ations for the Prevention of Significant Deterioration of Air Quality”, APC-S-5GHG Proposed SIP Revision September 13, 2010 1.47 Introduction: Proposed State Implementation Plan (SIP) Revision Regarding Requirements of the Federal Tailoring Rule for Greenhouse Ga ses As It Pertains to the Prevention of Significant Deterioration of Air Quality (PSD).

This SIP revision and amendments to the St ate of Mississippi’s “Regulations for the Prevention of Significant Deterioration of Ai r Quality”, APC-S-5 is to incorporate the Greenhouse Gas Tailoring Rule as promulgate d by the Environmental Protection Agency (EPA) on June 3, 2010. The tailoring rule changed the major source and significance level thresholds of greenhouse gas (GHG) emissions subject to the PSD regulations. The Mississippi Department of Environmental Qua lity is proposing to modify its current PSD regulations to be consistent with EPA’s tailo ring rule to include additional thresholds of 100,000 tons per year of GHGs for major sour ce applicability and 75,000 tons per year of GHGs as a significance threshold, based on car bon dioxide equivalent emissions for six GHGs - Carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), a nd Sulfur hexafluoride (SF6).
This Tailoring Rule is necessary to avoid “absurd results” and an “administrative burden” that would occur if GHGs are regulated at th e current major source applicability level of 100/250 tons per year when GHGs become a regulated pollutant. EPA has determined that GHGs will become a regulated pollutanton January 2, 2011 based upon the following actions:



### • Issuance of the Endangerment Finding and Cause or Contribute Finding by the EPA Administrator on December 7, 2009. The Endangerment Finding found that the current and projected at mospheric concentrations of the six, key, well-mixed GHGs threaten the public health and welfare of current and future generations. The Cause or Contribute Finding found that the combined emissions of these well-mixe d GHGs from new motor vehicles and new motor vehicle engines contribute to the greenhouse gas pollution which threatens public health and welfare. These findings, which were published December 15, 2009, do not impose any re quirements on industry or other entities. However, they were a prerequisite to finalizing the GHG standards for light-duty vehicles.



### • On December 18, 2008, EPA issued a memo randum, "EPA's Interpretation of Regulations that Determine Pollutants Covered by Federal Prevention of Significant Deterioration (PSD) Permit Program" (known as the “Johnson Memo” or the “PSD Interpretive Memo”). In the Interpretation, the agency established that Clean Air Act (CAA) permitting requirements apply to a newly regulated pollutant at the time a regulatory requirement to control emissions of that pollutant “takes e ffect” (rather than upon promulgation or the legal effective date of the regulation containing such a requirement). Based on the anticipated promulgation of the light duty vehicle rule, the notice stated that the GHG requirements of the vehicle rule would trigger CAA permitting requirements for stationary sources on January 2, 2011.GHG Proposed SIP Revision September 13, 2010 

### • On April 1, 2010, EPA finalized the li ght duty vehicle rule controlling GHG emissions. This rule confirmed that Ja nuary 2, 2011 is the earliest date that a 2012 model year vehicle meeting these ru le requirements may be sold in the United States.
At the current major source applicability level of 100/250 tons per year, the EPA projected that tens of thousands of PSD permits would be required nationally, severely impacting each state, local and tribal permitting authorities’ abilities to manage air quality. The Tailoring Rule was promulgated to “tailor” the requi rements of the CAA permitting programs to limit which facilities will be required to obtain PSD permits. The tailoring rule will phase in GHG applicability as described below:



### • Step 1. (January 2, 2011 –June 30, 2011). Only sources currently subject to the PSD permitting program (i.e., those that are newly-constructed or modified in a way that significantly increases emissions of a pollutant other than GHGs) would be subject to permitting requirements for their GHG emissions under PSD. For these proj ects, only GHG increases of 75,000 tpy or more of total GHG, on a CO2e basis, would need to determine the Best Available Control Technology (BACT) for their GHG emissions. During this time, no sources would be subject to Clean Air Act permitting requirements due solely to GHG emissions.



### • Step 2. (July 1, 2011 to June 30, 2013). In this phase, PSD permitting requirements will cover for the first time new construction projects that emit GHG emissions of at least 100,000 tpy even if they do not exceed the permitting thresholds for any other po llutant. Modifications at existing facilities that increase GHG emissions by at least 75,000 tpy will be subject to permitting requirements, even if they do not significantly increase emissions of any other pollutant.
The MDEQ is proposing to incorporate by reference the final Tailoring Rule.GHG Proposed SIP Revision September 13, 2010 1.48 Notification of Public Hearing for Pr oposed SIP Revision and Amendments to .
Public participation on the SIP Revision will be achieved by a public hearing scheduled for 10:00 a.m., Wednesday, October 13, 2010, at 10: 00 a.m. in the Commission Hearing Room (Room 104A) of the Mississippi Department of Environmental Quality Office Building located at 515 E. Amite Street, Jacks on, Mississippi 39201 in accordance with the information provided in the public notice and Mississippi Administrative Procedures Act. The notice for public hearing will be published c onsistent with procedures approved by EPA.
The notice of public hearing is to be published on September 13, September 20, and September 27, 2010, in daily newspapers in the cities of Gulfport, Jackson, and Tupelo in the State of Mississippi. The notice of public h earing, the proposed SIP revision, and proposed amendments to state air pollution control re gulations will be made available for public review in the main branches of the public libraries in the above mentioned cities and at the Mississippi Department of Environmental Qu ality, 515 E. Amite St., Jackson, Mississippi, 39201 and also will be available on the Depart ment’s website http://www.deq.state.ms.us. The public notice was also mailed to persons on the air pollution control regulation mailing list.
The notice of public hearing follows this page.GHG Proposed SIP Revision September 13, 2010 MISSISSIPPI COMMISSION ON ENVIRONMENTAL QUALITY NOTICE OF PROPOSED RULEMAKING NOTICE OF PUBLIC HEARING PUBLIC NOTICE START DATE: SEPTEMBER 13, 2010
PLEASE TAKE NOTE that the Mississippi Commi ssion on Environmental Quality (“Commission”) is considering a Revision to the State Implementation Plan for Air Pollution Control (SIP Revision) and amendments to state air pollution contro l regulations. The proposed SIP Revision and regulation amendments will be applicable statewid e. The Commission’s authority to adopt the SIP Revision is found at Mississippi Code Annotated S ection 49-2-9(1)(b) and Section 49-17-17(b). The Commission’s authority to adopt amendments to the regulations is found at Mississippi Code Annotated Section 49-2-9(1)(b) and Section 49-17-17(i)
I. The proposed actions concern adoption of:
1. Amendments to “Air Emission Regulations for the Prevention, Abatement, and Control of Air Contaminants,” APC-S-1 to adopt, by reference, amendments to Federal New Source Performance Standards, as promulgated in 40 CFR Part 60 and Federal National Emission Standards for H azardous Air Pollutants as promulgated in 40 CFR Parts 61 and 63.
2. A SIP Revision and amendments to “Regul ations for the Prevention of Significant Deterioration of Air Quality”, APC-S-5 which will incorporate by reference updated relevant portions of federal regulati ons as promulgated in 40 CFR Parts 51.166, 52.21, and 52.22 in order to make the state Prevention of Significant Deterioration of Air Quality permitting program consistent with the federal requirements. Specifically, the proposed amendments will incorporate EPA’s recently promulgated Tailoring Rule for Greenhouse Gases wh ich specifies that beginning in 2011, projects that will substantially increase gr eenhouse gas emissions will require an air permit. The revision does not incorporate implementation of fine particulate matter that was promulgated on May 16, 2008. The Commission will propose a SIP revision for implementation of fine particul ate matter in a separate action at a later date.
3. Amendments to “Air Emissions Operati ng Permit Regulations for the Purposes of Title V of the Federal Clean Air Act”, APC-S-6, in order to make the Title V permitting program consistent with the federal requirements. Specifically, the proposed amendments will incorporate EP A’s recently promulgated Tailoring Rule.
II. Manner By Which the Public May Comment.
Copies of the proposed amendments to the re ferenced regulations may be obtained by calling Ms. Maya Rao at 601-961-5242 or Mr. Conni e Simmons at 601-961-5165 or writing to Mississippi Department of Environmental Quality, Air Division, P.O. Box 2261, Jackson, Mississippi 39201. For persons with internet access, a copy of the proposed SIP revision and proposed amendments to the referencedregulations may be found on the Mississippi Department of Environmental Quality’s website at http://www.deq.state.ms.us . Also, copiesGHG Proposed SIP Revision September 13, 2010 of the proposed SIP Revision and proposed amendm ents to the referencedregulations will be available for public review through Wednesday, October 13, 2010, in the main branch of public libraries in the cities of Gulfport, Jackson, and Tupelo in the State of Mississippi. The proposed SIP Revision and amendments to the re ferenced regulations ma y also be reviewed in the offices of the Mississippi Department of Environmental Quality, 515 E. Amite Street, Jackson, Mississippi. Please contact Ms. E dna Banks at (601) 961-5171 to schedule an appointment.
Members of the public may present verbal or written comments at the public hearing described below. Also, written statements re garding the proposed SIP Revision and proposed regulation amendments will be made part of the public hearing record if delivered by 5:00 p.m., Wednesday, October 13, 2010, to the attenti on of Ms. Maya Rao at the address shown above.
III. Notice of Public Hearing.
A public hearing regarding the proposed SIP Revision and regulation amendments will be conducted. The hearing will be held on Wedne sday, October 13, 2010, at 10:00 a.m. in the Commission Hearing Room (Room 104A) of the Mississippi Departmentof Environmental Quality Office Building located at 515 E. Amite Street, Jackson, Mississippi 39201.

IV. Additional Information.
For additional information, please contact Ms. Maya Rao at 601-961-5242 or Mr. Connie Simmons at 601-961-5165.GHG Proposed SIP Revision September 13, 2010 3.21 Legal Authority for the Proposed SIP Revision
No legislative actions are needed concerni ng this proposed SIP revision. The State of Mississippi Air & Water Pollution Control La w, Section 49-17-1 to 49-17-43, Mississippi Code of 1972, gives the Commission on Environmental Quality the necessary legal authority to adopt and implement this proposed SIP re vision. The State act (as of July 1, 2004) Mississippi Code Annotated, Section 49-17-13(3) designates the Commissi on as the State air pollution control agency for all purposes of the federal pollution control legislation and programs and take all actions necessary thereto.
Public participation on the proposed SIP revi sion will achieved by a public hearing to be held on October 13, 2010. The public hearing will be held at 10:00 a.m., Wednesday, October 13, 2010, in the Commission Hearing Room (Room 104A) of the Mississippi Department of Environmental Quality Offi ce Building located at 515 E. Amite Street, Jackson, Mississippi 39201.GHG Proposed SIP Revision September 13, 2010 5.19 Control Strategy for the Proposed SIP Revision
This proposed SIP revision includes amendments to air pollution control regulations which are control regulations and control strategies. Therefore, no additional control strategies are needed.GHG Proposed SIP Revision September 13, 2010 6.23 Control Regulations for the Proposed SIP Revision
Proposed amendments to state regulations is included in Appendix C-21 of this proposed SIP revision.GHG Proposed SIP Revision September 13, 2010 14.1.18 Health Effects of the Proposed SIP Revision
No adverse health effects are expected to be caused by this proposed SIP revision.GHG Proposed SIP Revision September 13, 2010 14.3.18 Economics Effects of the Proposed SIP Revision
No adverse economic effects due to this proposed SIP revision are foreseen.GHG Proposed SIP Revision September 13, 2010 14.5.18 Social Effects of the Proposed SIP Revision
No adverse social effects are foreseen as a result of this proposed SIP revision.GHG Proposed SIP Revision September 13, 2010 14.6.18 Air Quality Effects of the Proposed SIP Revision
This proposed SIP revision will not have any adverse air quality effects.GHG Proposed SIP Revision September 13, 2010 MISSISSIPPI DEPARTMENT OF ENVIRONMENTAL QUALITY OFFICE OF POLLUTION CONTROL

PROPOSED STATE IMPLEMENTATION PLAN REVISION

APPENDIX C-21

PROPOSED AMENDMENTS TO

“REGULATIONS FOR THE PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY” APC-S-5GHG Proposed SIP Revision September 13, 2010 MISSISSIPPI COMMISSION ON ENVIRONMENTAL QUALITY

“REGULATIONS FOR THE PREVENTION OFSIGNIFICANT DETERIORATION OF AIR QUALITY”

APC-S-5

Proposed Amendments Public Hearing Date: October 13, 2010MISSISSIPPI COMMISSION ON ENVIRONMENTAL QUALITY

REGULATIONS FOR THE PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY

APC-S-5
Adopted June 28, 1990 Amended April 25, 1991 Amended December 9, 1993

Amended August 22, 1996

Amended July 28, 2005 Amended August 23, 2007

Proposed Amendments

1 The purpose of this regulation is to implem ent a program for the prevention of significant deterioration of air quality as required by 40 CFR 51.166. This regulation supercedes and replaces the previous adoption by re ference of 40 CFR 52.21 and 40 CFR 51.166. 40 CFR 52.21 and 51.166 as used in this regulati on refer to the federal regulations as amended and promulgated by June 15, 2007 September 13, 2010 , except as provided in 2. below. CFR refers to the “Code of Federal Regulations”.
2. Other than the subsections and phrases listed below and except for the changes set forth in Section 3. of this regulation, the provisions of 40 CFR 52.21 as amended and promulgated by June 15, 2007 September 13, 2010 , are incorporated herein and adopted by reference by the Mississippi Commission on Environmental Quality as official regulations of the State of Mississippi and shall hereafter be enforceable as such. The following subsection and phrases of 40 CFR 52.21 are excluded from this regulation:
2.1 (a)[Plan disapproval],
2.2 (q)[Public Participation],
2.3 (s)[Environmental Impact Statement],
2.4 (u)[Delegation of authority],

2.5 (x)[Clean Unit Test],

2.6 (y)[Clean Unit Provisions],

2.7 (z)[PCP exclusion procedural requirements],

2.8 2.5 (cc)[Routine maintenance, repair, and replacement], and

2.9 2.6 The phrase “in circumstances wher e there is a reasonable possibility , within the meaning of paragraph (r)(6)(vi) of 40 CFR 52.21, that a project that is not a part of amajor modification may result in a significan t emissions increase” in paragraph (r)(6) of (r)[Source obligation].
2.7 Certain amendments to 40 CFR 52.21 specified in 73 FR 38349. The excluded provisions are as follows:
a. Revised paragraphs (b)(23)(i) and (b)( 50)(i). In lieu of these paragraphs (b)(23)(i) and (b)(50)(i) of 40 CFR 52.21, as amended and promulgated by June 15, 2007, are incorporated and adopted by reference.
b. Addition of paragraphs (b)(50)(vi) and (i)(1)(xi).
3. The term “Administrator” as it appears in 40 CFR 52.21 shall mean the Mississippi Environmental Quality Permit Board, except that:
3.1 In subparagraph (b)(3)(iii) [relating to “netemissions increase”], it shall mean either the Mississippi Environmental Quality Permit Board or the Administrator of the United States Environmental Protection Agency (USEPA).
3.2 In the following subsections, it shall continue to mean the Administrator of the USEPA:
a. (b)(17) [definition of “federally enforceable”];
b. paragraph b(37)(i);
c. paragraph b(43);
d. paragraph b(48)(ii)(c);
e. paragraph b(50)(i);
f. paragraph b(51);
g. (g)(1)-(g)(6) [Redesignation];
h. (l)(2) [Air quality models];
i. (p)(2) [concerning Federal Land Manager];
j. (t) [Disputed permits or redesignations].4. Subsections 40 CFR 51.166(f) Ex clusions from Increment Consumption (excluding the phrase “The plan may provide that...”) a nd 40 CFR 51.166(q) “Public Participation” (excluding the phrase “The plan shall provide th at.”) are incorporated herein and adopted by reference, except for the changes set forth below:
4.1 The phrases “the plan provides that” and “it shall also provide that” are excluded from paragraph 40 CFR 51.166(f)(2),
4.2 The term “Administrator” as it appears in subparagraphs (f)(l)(v),(f)(4),and(q)(2)(iv) shall continue to mean the Administrator of the USEPA, 4.3 The phrase “specified time period” in subparagraph (q)(1) shall mean thirty (30) days,
4.4 The phrase “reviewing authority” sha ll mean Mississippi Department of Environmental Quality, and
4.5 The words “one year” in subparagraph (q)(2) shall be replaced by the words “one hundred and fifty (150) days.”
5. The Executive Director of the Mississippi Department of Environmental Quality shall transmit to the Administrator of the USEPA a copy of each permit application filed under this regulation and shall notify the Administrator of the USEPA of each significant action the Executive Director takes on the application.
6. This regulation applies to any stationary source or modification to which 40 CFR 52.21 applied as of the date of adoption of this regulation, but for which the Mississippi Environmental Quality Permit Board had not issued a permit pursuant to 40 CFR 52.21 by that date.MISSISSIPPI
DEPARTMENT OF ENVIRONMENTAL QUALITY
OFFICE OF POLLUTION CONTROL

TECHNICAL SUPPORT
DOCUMENT

ATTENDANT TO THE

PROPOSED SIP REVISION

REGARDING REQUIREMENTS OF THE FEDERAL TAILORING RULE FOR
GREENHOUSE GASES AS IT PERTAINS TO
PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY

INCLUDING AMENDMENTS TO

"REGULATIONS FOR THE PREVENTION OF SIGNIFICANT DETERIORATION OF
AIR QUALITY", APC-S-5

Public Notice Start Date: September 13,2010 Public Hearing Date: October 13,2010

### TABLE OF CONTENTS

Discussion



### ............................................................................................................. Page 1
Purpose of the Revision



### ........................................................................................ Page 2

Sources Affected by the Revision



### ......................................................................... Page 2

Pollutants Involved



### ............................................................................................... Page 2



### . . Changes in Allowable Emissions



### .......................................................................... Page 2

LocationJAttainment Status



### .................................................................................. Page 2

Part D SIPIAttainment Demonstration Impact



### ...................................................... Page 2
Air Quality Impacts



### ............................................................................................... Page 2
Modeling



### ............................................................................................................... Page 2
Compliance Methods to be Employed



### .................................................................. Pa 2
Public Hearing



### ...................................................................................................... Pa 2
Response to Comments on Proposed SIP Revision



### .............................................. Pa 3
Regulation Changes



### .............................................................................................. Page 3



### ........................... Final Adoption of SIP Revision and Amendments to APC.S.5 Page 3
Administrative Procedures Requirements



### ............................................................. Page 3



### ATTACHMENTS

Letter from Mississippi DEQ to EPA dated July 28. 20 10



### ........................ Attachment 1



### ....................... Proposed Regulations in EPA Format (Redlinelstrikeout) Attachment 2

Amendments to Regulation APC-S-5



### . . Proofs of Publicat~on



### .................................................................................. Attachment 

### 3 Notice of Public Hearing

GHG Proposed SIP Revision. September 13. 2010 State of Mississippi 6Final Adoption Evidence.



### ..... ...... ................... 

### ........... ...... 

### ............ 

### ....... ..... . . Attachment 4 Memo Regarding Agenda for Commission Meeting Memo Regarding Commission Action on SIP and Regulation Amendments. Secretary of State Filing
Administrative Procedures Requirements



### .................................................. Attachment 5

GHG Proposed SIP Revision, September 13, 20 10 State of Mississippi

### DISCUSSION:

This SIP revision and amendments to the State of Mississippi's "Regulations for the Prevention of Significant Deterioration of Air Quality", APC-S-5 is to incorporate the Greenhouse Gas Tailoring Rule as promulgated by the Environmental Protection Agency (EPA) on June 3,2010. The tailoring rule changed the major source and significance level thresholds of greenhouse gas (GHG) emissions subject to the PSD regulations. The Mississippi Department of Environmental Quality is proposing to modify its current PSD regulations to be consistent with EPA's tailoring rule to include additional thresholds of 100,000 tons per year of GHGs for major source applicability and 75,000 tons per year of GHGs as a significance threshold, based on carbon dioxide equivalent emissions for six GHGs - Carbon dioxide (C02), Methane (CH4), Nitrous oxide (N20), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), and Sulfur hexafluoride (SF6).
This Tailoring Rule is necessary to avoid "absurd results" and an "administrative burden" that would occur if GHGs are regulated at the current major source applicability level of 1001250 tons per year when GHGs become a regulated pollutant. EPA has determined that GHGs will become a regulated pollutant on January 2, 201 1 based upon the following actions:

0 Issuance of the Endangerment Finding and Cause or Contribute Finding by the EPA Administrator on December 7, 2009. The Endangerment Finding found that the current and projected atmospheric concentrations of the six, key, well-mixed GHGs threaten the public health and welfare of current and future generations. The Cause or Contribute Finding found that the combined emissions of these well-mixed GHGs from new motor vehicles and new motor vehicle engines contribute to the greenhouse gas pollution which threatens public health and welfare. These findings, which were published December 15, 2009, do not impose any requirements on industry or other entities. However, they were a prerequisite to finalizing the GHG standards for light-duty vehicles.

On December 1 8,2008, EPA issued a memorandum, "EPA's Interpretation of Regulations that Determine Pollutants Covered by Federal Prevention of Significant Deterioration (PSD) Permit Program" (known as the "Johnson Memo" or the "PSD Interpretive Memo"). In the Interpretation, the agency established that Clean Air Act (CAA) permitting requirements apply to a newly regulated pollutant at the time a regulatory requirement to control emissions of that pollutant "takes effect" (rather than upon promulgation or the legal effective date of the regulation containing such a requirement). Based on the anticipated promulgation of the light duty vehicle rule, the notice stated that the GHG requirements of the vehicle rule would trigger CAA permitting requirements for stationary sources on January 2, 20 1 1.

On April 1,20 10, EPA finalized the light duty vehicle rule controlling GHG emissions. This rule confirmed that January 2,201 1 is the earliest date that a

GHG Proposed SIP Revision, September 13,2010 State of Mississippi20 12 model year vehicle meeting these rule requirements may be sold in the United States.

At the current major source applicability level of 1001250 tons per year, the EPA projected that tens of thousands of PSD permits would be required nationally, severely impacting each state, local and tribal permitting authorities' abilities to manage air quality. The Tailoring Rule was promulgated to "tailor" the requirements of the CAA permitting programs to limit which facilities will be required to obtain PSD permits. The tailoring rule will phase in GHG applicability as described below:
Step 1. (January 2,201 1 -June 30,201 1). Only sources currently subject to the PSD permitting program (i.e., those that are newly-constructed or modified in a way that significantly increases emissions of a pollutant other than GHGs) would be subject to permitting requirements for their GHG emissions under PSD. For these projects, only GHG increases of 75,000 tpy
or more of total GHG, on a C02e basis, would need to determine the Best Available Control Technology (BACT) for their GHG emissions. During this time, no sources would be subject to Clean Air Act permitting requirements due solely to GHG emissions.
Step 2. (July 1, 201 1 to June 30, 2013). In this phase, PSD permitting requirements will cover for the first time new construction projects that emit GHG emissions of at least 100,000 tpy even if they do not exceed the permitting thresholds for any other pollutant. Modifications at existing facilities that increase GHG emissions by at least 75,000 tpy will be subject to permitting requirements, even if they do not significantly increase emissions of any other pollutant.

The MDEQ is proposing to incorporate by reference the final Tailoring Rule.

GHG Proposed SIP Rev~s~on, September 13,2010 State of Miss~ss~pp~

- - - - . - .- - . ---..--PURPOSE OF THE REVISION:
The purpose of the SIP revision is to incorporate by reference the requirements of the federal Greenhouse Gas Tailoring Rule as promulgated by the U.S. Environmental Protection Agency (EPA) on June 3,20 10, as it pertains to the prevention of significant deterioration of Air Quality. Attachment 1 contains a letter from Mississippi DEQ to EPA dated July 28, 20 10, regarding adoption of the greenhouse gas tailoring rule.

SOURCES AFFECTED BY THE REVISION:
This SIP revision potentially affects all sources and practices subject to air pollution control regulations in Mississippi.

POLLUTANTS INVOLVED:
The pollutants affected by this SIP Revision are all pollutants subject to regulation.

CHANGES IN ALLOWABLE EkIlSSlONS:

This SIP Revision does not include any provisions for emission limitation changes.

LOCATIONJATTAINMENT STATUS:

All areas of the state are designated attainment for all NAAQS. The proposed SIP Revision does not change any requirements for sources locating in or impacting non-attainment areas.

PART D SIPJATTAINMENT DEMONSTRATION IMPACT:

This is not applicable.

AIR QUALITY IMPACTS:

This SIP Revision will have no adverse impact on air quality.

MODELING:

No modeling is necessary for this SIP Revision.

COMPLIANCE METHODS TO 

### BE EMPLOYED:
Compliance with the amended regulations will be achieved by air emission permits.

PUBLIC HEARING:

Public participation on the SIP Revision will be achieved by a public hearing scheduled for

APC-S-5, PSD Regulations, Proposed ~mendments,September 13, 2010

### 10:OO a.m., Wednesday, October 13,20 10, at 10:OO a.m. in the Commission Hearing Room (Room 104A) of the Mississippi Department of Environmental Quality Office Building located at 515 

### E. Amite Street, Jackson, Mississippi 39201 in accordance with the information provided in the public notice and Mississippi Administrative Procedures Act. The notice for public hearing will be published consistent with procedures approved by EPA.

The notice of public hearing is to be published on September 13, September 20, and September 27,20 10, in daily newspapers in the cities of Gulfport, Jackson, and Tupelo in the State of Mississippi. The notice of public hearing, the proposed SIP revision, and proposed amendments to state air pollution control regulations will be made available for public review in the main branches of the public libraries in the above mentioned cities and at the Mississippi Department of Environmental Quality, 51 

### 5 E. 

### Amite St., Jackson, Mississippi, 39201 and also will be available on the Department's website http://www.deq.state.ms.us. The public notice was also mailed to persons on the air pollution control regulation mailing list.

TSD Attachment 2 contains a copy of the notice of public hearing and will contain copies of proofs of publication of the notice of public hearing after adoption.

RESPONSE TO COMMENTS ON PROPOSED PLAN REVISION:

This section will contain any comments that are received during the public comment period.

REGULATION CHANGES:

See TSD Attachment 2.

FINAL ADOPTION OF PLAN REVISION AND REGULATIONS:

TSD Attachment 3 will contain evidence of final adoption of the SIP revision and amendments to APC-S-5.
ADMINISTRATIVE PROCEDURES REQUIREMENTS:

The proposed SIP Revision and amendments to regulations will be completed in accordance with Mississippi's Administrative Procedures Law and the Mississippi Air and Water Pollution Control Law. TSD 

### Attachment 4 will contain evidence of administrative procedure requirements.

APC-S-5, PSD Regulations, Proposed Amendments, September 13, 2010



### -- - -- --

### ATTACHMENT 

### 1

MISSISSIPPI DEQ LETTER TO 

### EPA DATED JULY 28,2010

APC-S-5, PSD Regulations, Proposed Amendments, September 13, 2010

- -- -. '- 

### *.-. 

### --APC-S-5, PSD Regulations, Proposed Amendments, September 13, 2010

----- ---.

### ATTACHMENT 2



### PROPOSED AMENDMENTS TO

"REGULATIONS FOR THE PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY"

=PC-s-5, PSD Regulations, Proposed ~mendments, September 13. 2010

--. -*-

### MISSISSIPPI COMMISSION ON ENVIRONMENTAL QUALITY

"REGULATIONS FOR THE PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY"

Proposed Amendments Public Hearing 

### Date: October 1 

### 3, 201 0

APC-S-5, PSD Regulations, Proposed Amendments, September 13, 2010

- - -. 

### - ---- -- 

### -MISSISSIPPI COMMISSION ON ENVIRONMENTAL QUALITY

REGULATIONS FOR THE PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY

Adopted June 28,1990 Amended April 25, 1 99 1 Amended December 9,1993

Amended August 22, 1996

Amended July 28,2005 Amended August 23,2007

Proposed Amendments

1. The purpose of this regulation is to implement a program for the prevention of significant deterioration of air quality as required by 40 CFR 5 1.166. This regulation supercedes and replaces the previous adoption by reference of 40 CFR 52.21 and 40 CFR 51.166. 40 CFR 52.2 1 and 5 1.166 as used in this regulation refer to the federal regulations as amended and promulgated by 3+mA+%WSe~tember 13,2010, except as provided in 2. below. CFR refers to the "Code of Federal Regulations".

2. Other than the subsections and phrases listed below and except for the changes set forth in Section 3. of this regulation, the provisions of 40 CFR 52.2 1 as amended and promulgated by 3im ! 5,WSeptember 13,20 10, are incorporated herein and adopted by reference by the Mississippi Commission on Environmental Quality as official regulations of the State of Mississippi and shall hereafter be enforceable as such. The following subsection and phrases of 40 CFR 52.21 are excluded from this regulation:

2.1 (a)[Plan disapproval],

2.2 (q)[Public Participation],
2.3 (s) [Environmental Impact Statement],

2.4 (u)[Delegation of authority],



### 282.5 (cc)[Routine maintenance, repair, and replacement], and

### 292.6 The phrase "in circumstances where there is a reasonable possibility, within the meaning of paragraph (r)(6)(vi) of 40 CFR 52.21, that a project that is not a part of a major modification may result in a significant emissions increase" in paragraph (r)(6) of (r)[Source obligation].

2.7 Certain amendments to 40 CFR 52.21 specified in 73 FR 38349. The excluded provisions are as follows:

a. Revised paragraphs (b)(23)(i) and (b)(50)(i). In lieu of these paragraphs Jb)(23)(i) and (b)(50)(i) of 40 CFR 52.21, as amended and promulgated by June 15,2007, are incorporated and adopted by reference.

b. Addition of paragraphs (b)(50)(vi) and (i)(l )(xi).

3. The term "Administrator" as it appears in 40 CFR 52.21 shall mean the Mississippi Environmental Quality Permit Board, except that:

3.1 In subparagraph (b)(3)(iii) [relating to "net emissions increase"], it shall mean either the Mississippi Environmental Quality Permit Board or the Administrator of the United States Environmental Protection Agency (USEPA).

3.2 In the following subsections, it shall continue to mean the Administrator of the USEPA:
(b)(17) [definition of "federally enforceable"];
paragraph b(3 7)(i);
paragraph b(43);
paragraph b(48)(ii)(c);
paragraph b(50)(i);
paragraph b(5 1);
(g)(l)-(g)(6) [Redesignation];
(1)(2) [Air quality models];
(p)(2) [concerning Federal Land Manager];
(t) [Disputed permits or redesignations].

4. Subsections 40 CFR 5 1.166(f) Exclusions from Increment Consumption (excluding the phrase "The plan may provide thatYu') and 40 CFR 51.166(q) "Public Participation"

### (excluding the phrase "The plan shall provide that.") are incorporated herein and adopted by reference, except for the changes set forth below:

4.1 The phrases "the plan provides that" and "it shall also provide that" are excluded from paragraph 40 CFR 5 1.166(f)(2),

4.2 The term "Administrator" as it appears in subparagraphs 

### (f)(l)(v),(f)(4),and(q)(2)(iv) shall continue to mean the Administrator of the USEPA, 4.3 The phrase "specified time period" in subparagraph (q)(l) shall mean thirty (30) days,

4.4 The phrase "reviewing authority" shall mean Mississippi Department of Environmental Quality, and

4.5 The words "one year" in subparagraph (q)(2) shall be replaced by the words "one hundred and fifty (1 

### 50) days."

5. The Executive Director of the Mississippi Department of Environmental Quality shall transmit to the Administrator of the USEPA a copy of each permit application filed under this regulation and shall notify the Administrator of the USEPA of each signiiicant action the Executive Director takes on the application.



### 6. This regulation applies to any stationary source or modification to which 40 CFR 52.2 1 

### applied as of the date of adoption of this regulation, but for which the Mississippi Environmental Quality Permit Board had not issued a permit pursuant to 40 CFR 52.21 by that date.

### ATTACHMENT 3

NOTICE OF PUBLIC HEARING

PROOFS OF PUBLICATION

GHG Proposed SIP Revision, September 13. 20 10 State of MississippiMISSISSIPPI COMMISSION ON ENVIRONMENTAL QUALITY NOTICE OF PROPOSED RULEMAKING NOTICE OF PUBLIC HEARING PUBLIC NOTICE START DATE: SEPTEMBER 13,201 0

PLEASE TAKE NOTE that the Mississippi Commission on Environmental Quality ("Commission") is considering a Revision to the State Implementation Plan for Air Pollution Control (SIP Revision) and amendments to state air pollution control regulations. The proposed SIP Revision and regulation amendments will be applicable statewide. The Commission's authority to adopt the SIP Revision is found at Mississippi Code Annotated Section 49-2-9(1)(b) and Section 49-17-17(b). The Commission's authority to adopt amendments to the regulations is found at Mississippi Code Annotated Section 49-2-9(1)(b) and Section 49- 17-1 7(i)

I. The proposed actions concern adoption of:

1. Amendments to "Air Emission Regulations for the Prevention, Abatement, and Control of Air Contaminants," APC-S-1 to adopt, by reference, amendments to Federal New Source Performance Standards, as promulgated in 40 CFR Part 60 and Federal National Emission Standards for Hazardous Air Pollutants as promulgated in 40 CFR Parts 61 and 63.

2. A SIP Revision and amendments to "Regulations for the Prevention of Significant Deterioration of Air Quality", APC-S-5 which will incorporate by reference updated relevant portions of federal regulations as promulgated in 40 CFR Parts 

### 5 1.166, 52.21, and 52.22 in order to make the state Prevention of Significant Deterioration of Air Quality permitting program consistent with the federal requirements. Specifically, the proposed amendments will incorporate EPA's recently promulgated Tailoring Rule for Greenhouse Gases which specifies that beginning in 20 1 1, projects that will substantially increase greenhouse gas emissions will require an air permit. The revision does not incorporate implementation of fine particulate matter that was promulgated on May 16, 2008. The Commission will propose a SIP revision for implementation of fine particulate matter in a separate action at a later date.



### 3. Amendments to "Air Emissions Operating Permit Regulations for the Purposes of Title V of the Federal Clean Air Act", APC-S-6, in order to make the Title V permitting program consistent with the federal requirements. Specifically, the proposed amendments will incorporate EPA's recently promulgated Tailoring Rule.

11. Manner By Which the Public May Comment.
Copies of the proposed amendments to the referenced regulations may be obtained by calling Ms. Maya Rao at 601-961-5242 or Mr. Connie Simmons at 601-961-5165 or writing to Mississippi Department of Environmental Quality, Air Division, P.O. Box 2261, Jackson, Mississippi 39201. For persons with internet access, a copy of the proposed SIP revision and proposed amendments to the referenced regulations may be found on the Mississippi Department of Environmental Quality's website at http://www.deq.state.ms.us. Also, copies

GHG Proposed SIP Revision, September 13, 2010 State of Mississippi

### of the proposed SIP Revision and proposed amendments to the referenced regulations will be available for public review through Wednesday, October 13, 20 10, in the main branch of public libraries in the cities of Gulfport, Jackson, and Tupelo in the State of Mississippi. The proposed SIP Revision and amendments to the referenced regulations may also be reviewed in the offices of the Mississippi Department of Environmental Quality, 5 15 E. Amite Street, Jackson, Mississippi. Please contact Ms. Edna Banks at (601) 961-5171 to schedule an appointment.

Members of the public may present verbal or written comments at the public hearing described below. Also, written statements regarding the proposed SIP Revision and proposed regulation amendments will be made part of the public hearing record if delivered by 5:00 p.m., Wednesday, October 13,2010, to the attention of Ms. Maya Rao at the address shown above.

111. Notice of Public Hearing.
A public hearing regarding the proposed SIP Revision and regulation amendments will be conducted. The hearing will be held on Wednesday, October 13,2010, at 10:OO a.m. in the Commission Hearing Room (Room 104A) of the Mississippi Department of Environmental Quality Office Building located at 515 E. Amite Street, Jackson, Mississippi 39201.

IV. Additional Information.

For additional information, please contact Ms. Maya Rao at 601-961-5242 or Mr. Connie Simmons at 601 -961 -5 165.

GHG Proposed SIP Revwon, September 13,2010 State of M~ss~ssipp~

- 

### ---. -ATTACHMENT 4

EVIDENCE OF ADOPTION OF SIP REVISION AND AMENDMENTS TO APC-S-5

GHG Proposed SIP Revision, September 13,2010 State of Mississippi

### Adoption documentation to be inserted here.

GHG Proposed SIP Revision, September 13,2010 State of Mississippi

### ATTACHMENT 5

ADMINISTRATIVE PROCEDURES REQUIREMENTS

MISSISSIPPI POLLUTION CONTROL ACT (SECTION 49-17-25)

MISSISSIPPI ADMINISTRATIVE PROCEDURES LAW

GHG Proposed SIP Revision, September 13,2010 State of Mississippi

### Administrative procedures documentation to be inserted here.

GHG Proposed SIP Revision, September 13,2010 State of Mississippi