# State 

# of New 

# Mexico Officeof 

### the 

### Governm Bill Richardson Governor



### December 1,2003
Mayor Richard Greene Regional Administrator U.S. Environmental Protection Agency, Region 

### 6 1445Ross Avenue Dallas, TX 75202-2733

Dear Mayor Greene:

011 

### behalf of the New Mexico Environment Department (NMED), I 

### am pleased to submit to the U.S. Environmental Protection Agency (EPA) the enclosed 

### Revision to the New Mexico Srate Ilnplementntiol?Planfor Regional Haze (SIP revision) and related new and revised air quality regulations. These documents were compiled in accordance with Title 40 of the Code of Federal Regulations, Part 5 1, Section 309, commonly referred to as Section 309 

### of the federal Regional Haze Rule. The New Mexico Environmental Improvement Board adopted the SIP revision and the associated new and revised regulations at hearings on November 18and 19,2003. The enclosed SIP revision is New 

### Mexico's first step toward remedying regional haze, created by visibility-impairing air pollution originating at a variety of sources over a broad geographic area. The visibility protection recommendations of the Grand Canyon Visibility Transport Commission (GCVTC) will be implemented by New Mexico through the' SIP revision, which addresses visibility impairment at mandatory federal Class 

### I areas on the Colorado Plateau, including San Pedro Parks Wilderness Area in New Mexico. Additionally, the SIP revision makes it possible for New Mexico to continue its regional approach to a regional air quality issue through collaboration with other westenl states and tribes in the GCVTC's successor organization, the Western Regional Air Partnership. Accompanyin,o the SIP 

### revision are two new regulations and two revised regulations that are being added to the New 

### Mexico Administrative Code (NMAC). The two new regulations are Smoke Management (20.2.65 NMAC) and the Western Backstop Sulfur Dioxide Trading Program (20.2.81 NMAC). Section 309 of the federal Regional Haze Rule requires both new regulations and the revisions that were made to Notice of Intent and Emissions Inventory Requirements (20.2.73 NMAC).

State Capitol Room 

### 400 Santa Fe,

### New Mexico 87501 

### 505-827-3000 www.governor.stare.nm.us

### Mayor kchard Greene 

### U.S

.

### Environmental Protection Agency December 1,2003 Page 2

Revisions were also made to New Mexico's Open Burning regulation (20.2.60 NMAC) because that regulation's requirements dovetail with the requirements of the new Smoke Management regulation. Although not a part of the Regional Haze SIP requirements under 40 CFR 51.309, the Open Burning regulation is a part of New Mexico's SIP and has been since it was initially adopted in 1969.
In addition to the SIP revision and new and revised regulations, complete records of the SIP revision hearing and reguIatory hearings are enclosed for your review. The State of New Mexico looks forward to EPA's approval of the State Implementation Plan revisions and your continued support for our efforts to protect visibility in New Mexico's National Parks and Wilderness Areas. If you have any questions regarding the SIP revision or the new or revised regulations, please contact Sandra Ely, Chief ofNMED's Air Quality Bureau, at (505) 955-809 1.

Bill Richardson Governor ofNew Mexico

Enclosures: A. Revision to the New Mexico State Implementation Plan for ~e~ional Haze 

### B. Regulatory text and NMAC Transmittal Forms for 20.2.60 MAC,Open Burning 20.2.65 NMAC, SmokeManagement 20.2.73 NMAC, Notice of Intent and Emissions Inventory Requirements 20.2.81 NMAC, Western Backstop Sulfur Dioxide Trading Program

-A -7 

### C. Copies of Public Notices of the Hearings and Affidavits of Publication , 2

, /-- 

### D. Copies ofNotices of Intent to Testify at the Hearings -l 

### E. Transcripts and Exhibits for the Hearings ) 1'3 .--



### cc: Carl Edlund, EPA Region 6 Tom Diggs, EPA Region 6 David Neleigh, EPA Region 6 

### Joe Kordzi, EPA Region 6 

### Ron Curry, NMED, Cabinet Secretary Sandra EIy, NMED, Air Quality Bureau

### Amendments to: 

### 20.2.73 NMAC Notice of Intent and Emissions Inventory Requirements$- --- FlLEO r3r4nc.7?r-,,-. WITH f,-!! Tr,9 *.. !.&:k, 7,-;..2 2 !.:
, $.[+ 

### NMAC TRANSMIlTAL FORM 

## 2003NOY 25 /,::li: 19 1.24.10 NMAC [Sequence # 

### I Environmental Improvement Board 

### 1 667 

### 1

P.O. Box 26110 1190 St. Francis Drive, Santa Fe, New Mexico 87502

Name Tracy Hughes 

## I Phone # 

## 1 (505)827-2750

## 1 FAX 

## 1 (505)827-1628 E-mail tram huahes@nmenv.state.nm.us

New Amendment Renumber Repeal Emergency

Title 

## 1 Chapter ] part 20 12 

# 1 73



## I Reference/ Internet site

No x Yes Pleaselistattachments andInternetsite@)if - - applicable 2 3.

Public domain 

# 0

Name: Gay Dillingham Check ifdelegated authority Title: Chair A 

# 0

bate ~idned , J

# - This is an amendment to 20.2.73 NMAC, Sections 7 and 300 effective on 12/31/03. 20.2.73.7 DEFINITIONS: In addition to the terms defined in Part 2 (20.2.2 NMAC - definitions), as used in thls part: A. "air pollution control equipment" means any device, equipment, process or combination thereof the operation of which would limit, capture, reduce, confine, or otherwise control air contaminants or convert for the purposes of control any air contaminant to another form, another chemical or another physical state; B. "commencement" means that an owner or operator has undertaken a continuous program of construction or modification; C. "construction"means fabrication, erection, installation or relocation of a stationary source, including but not limited to temporary installations and portable stationary sources; D. "emission report or inventory" means a listinq, by source, of the amount of air pollutants discharged into the atmosphere of a community; lD]E. "fugitive emissions" are those emissions which could not reasonably pass through a stack, chimney, vent, or other functionally-equivalent opening; 1."modification"means any physical change in, or change in the method of operation of, a stationary source which results in an increase in the potential emission rate of any regulated air contaminant emitted by the source or which results in the emission of any regulated air contaminant not previously emitted, but does not include: (1) a change in ownership of the source; (2) routine maintenance, repair or replacement; (3) installation of airpollution control equipment, and all related process equipment and materials necessary for its operation, undertaken for the purpose of complying with regulations adopted by the board or pursuant to the federal Clean Air Act; or (4) unless previously limited by enforceable permit conditions; (a) an increase in the production rate, if such increase does not exceed the operating design capacity of the source; 

# - (b) an increase in the hours of operation; or (c) use of an alternative fuel or raw material if, prior to January 6, 1975,the source was capable of accommodating such fuel or raw material, or if use of an alternate fuel or raw material is caused by any natural gas curtailment or emergency allocation or any other lack of supply ofnatural gas; IF]G. "nonattainment area" means, for any air pollutant, an area which has been designated as a nonattainment area under section 107 of the federal act; [&]IJ. "operator" means the person or persons responsible for the overall operation of a facility; IH]I. "owner" means the person or persons who own a facility or part of a facility; [S]J. "parttmeans an air quality control regulation under Title 20, Chapter 2 of the New Mexico administrative code, unless otherwise noted; as adopted or amended by the board; [J]I<. "portable stationary source" means a source which can be relocated to another operating site with limited dismantling and reassembly, including for example but not limited to moveable sand and gravel processing operations and asphalt plants; "potential emission rate" means the emission rate of a source at its maximum capacity to emit a regulated air contaminant under its physical and operational design, provided any physical or operational limitation on the capacity of the source to emit a regulated air contaminant, including airpollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored or processed, shall be treated as part of its physical and operational design only if the limitation or the effect it would have on emissions is enforceable by the departmentpursuant to the Air Quality Control Act or the federal act; I.b]M. "potential to emit" means the maximum capacity of a stationary source to emit any air pollutant under its physical and operational design; any physical or operational limitation on the capacity of a source to emit an air pollutant, including airpollution control equipment and restrictions on hours of operation or on the type or amount ofmaterial combusted, stored, or processed, shall be treated as part of its design if the limitation is federally enforceable; the potential to emit for nitrogen dioxide shall be based on total oxides of nitrogen; IM]IJ. "regulated air contaminant" means[;] any air contaminant, the emission or ambient concentration of which is regulated pursuant to the New Mexico Air Quality Control Act or the federal act;

,- IN]Q. "shutdown"means the cessation of operation of any air pollution control equipment, process equipment or process for any purpose, except routine phasing out ofbatch process units; lQ]P. "stationary source" or "source"means any building, structure, equipment, facility, installation

20.2.73 NMAC 1(including temporary installations), operation or portable stationary source which emits or may emit any air L.a contaminant; any research facility may group its sources for the purpose of this part at the discretion of the secretary of the department; 0. "WEB source" means a stationarv source that meets the a~vlicabilitv requirements of 20.2.81.101 NMAC; R. "western backstop sulfur dioxide trading program" means 20.2.81 NMAC, triggered as a backstop in accordance with the provisions in the sulfur dioxide milestones and backstop trading program implementation plan, if necessarv, to ensure that regional sulfur dioxide emissions are reduced. 20.2.73.300 EMISSION INVENTORY REQUIREMENTS: A. Applicability. The requirements of Section 300 this Part (20.2.73.300 NMAC) apply to the owner or operator of any stationary source located outside ofBernalillo County which: (1) has been issued a permit under Part 72 (20.2.72 NMAC - construction permits) during any period of time, except for toxic air pollutant permits issued under Part 72 (20.2.72 NMAC), Sections 401 to 499; (2) is required to file a notice of intent under Section 200 of this part (20.2.73.200 NMAC); or (3) emits in excess of 1ton of lead or 10tons oftotal suspended particulate, PMlo,sulfur dioxide, nitrogen oxides, carbon monoxide, or volatile organic compounds in any calendar year including and subsequent to 1990. B. Reporting requirements. (1) Any source which emits, or has the potential to emit, 5 tons per year or more of lead or lead compounds, or 100 tons per year or more of PMlo,sulfuroxides, nitrogen oxides, carbon monoxide, or volatile organic compounds shall submit an emissions report annually. (2) Any source defined as a major source of hazardous air pollutants under Part 70 (20.2.70NMAC - operating permits) shall submit an emissions report annually. (3) Any source which is located in an ozone nonattainmentarea and which emits, or has the potential to emit, 25 tons per year or more of nitrogen oxides or volatile organic compounds shall submit an emissions report annually. (4) Any source which is not required by Paragraph (I), (2), or (3) of Subsection B of ths section 

# - (20.2.73.300 NMAC) to submit an emission report shall submit an emissions report under this part upon request by the department, but no more frequently than annually. (5) Except as provided in Paragraph (8) of SubsectionB of this section (20.2.73.300NMAC), the department shall provide to the owner or operator required by this section (20.2.73.300NMAC) to submit an emissions report a complete copy of the most current emissions report for their stationary source which is on file with the department. The department shall provide this copy to the owner or operator at least 90 days prior to the date when the source is required to submit an emissions report. (6) The owner or operator shall submit to the department a complete, correct and current emissions report in the format specified by the department which reflects emissions during the previous calendar year. (7) Except as provided in Paragraph (8) of SubsectionB of this section (20.2.73.300NMAC) the owner or operator shall submit the emission report by April 1of each year in which the source is required to submit an emission report. (8) Sources for which a date for submitting an annual emission report is specified in a current operating permit issued under Part 70 (20.2.70 NMAC - operating permits) shall submit such report on that date. The department shall provide a copy of the previous emissions report upon request by the owner or operator of such source. C. Content of emissions reports. Emissions report contents shall include: (1) the name, address, and physical location of the stationary source; (2) the name and telephone number of the person to contact regarding the emissions report; (3) a certification signed by the owner, or operator, or a responsible official as defined in Part 70 (20.2.70NMAC) attesting that the statements and information contained in the emissions report are true and accurate to the best knowledge and belief of the certifying official, and including the full name, title, signature, date of signature, and telephone number ofthe certifying official; for sources subject to Part 70 (20.2.70 NMAC), the certification shall be made as required under that part; smelters shall submit an annual report of sulfur input. in tonslvear; 

# I@j]m for each emission point, as required by the department: (a) stack and exhaust gas parameters; (b) type of control equipment and estimated control efficiency;

20.2.73 NMAC 2(c) schedule of operation; (d) estimated actual emissions, including fugitive emissions and emissions occurring during maintenance, start-ups, shutdowns, upsets, and downtime of total suspended particulate, PMlo, sulfur oxides, nitrogen oxides, carbon monoxide, volatile organic compounds, and lead in tons per year and a description of the methods utilized to make such estimates, including calculations; (e) the annual process or fuel combustion rates; and (f) the fuel heat, sulfur, and ash content; and 

# 1(9]m all information required under the federal act. D. Additional content for emissions reports from sources in ozone nonattainment areas. Emissions reports from sources located in ozone nonattainment areas shall include, in addition to the contents specified by Subsection C of this section (20.2.73.300NMAC), the following information: (1) typical daily process rate during the peak ozone season, where the peak ozone season is specified by the department; and (2) estimated actual emissions ofnitrogen oxides and volatile organic compounds, which shall be reported: (a) for each emissions point; and (b) for each process and fuel type contributing to emissions from each point; and (c) in units of tons per year for annual emissions; and (d) in units of pounds per day for a typical day during the peak ozone season. E. Waiver of reporting requirements for insignificant emissions. The department may waive the requirements of Paragraph (4) of Subsection C ofthis section (20.2.73.300NMAC) for emissions which the department determines to be insignificant under Part 70 (20.2.70 NMAC), except that: (1) for sources in nonattainment areas, reporting of emissions ofpollutants for which the area is nonattainment shall not be waived; (2) reporting of emissions for which reporting is required under the federal act shall not be waived. F. Emission tracking requirements for sulfur dioxide emission inventories. All stationary sources with actual emissions of one hundred (100) tons per year or more of sulfur dioxide in the year 2000, or in any subsequent year, shall submit an annual inventory of sulfur dioxide emissions. beginning with the 2003 emission inventory. A source that meets these criteria that then emits less than 100 tons per year in a later year shall submit a sulfur dioxide inventory for tracking compliance with the regional sulfur dioxide milestones until the western backstop sulfur dioxide trading vrogram has been fully implemented and emission traclung has occurred under 20.2.81.106 NMAC. 1 All WEB sources will be subiect to the following federally enforceable provisions: (a) submit an annual inventory of sulfur dioxide emissions; Jb) document the emissions monitoringlestimation methodologv used. and demonstrate that the selected methodology is acceptable under the inventory program; Jc) include emissions from start up, shut down, and upset conditions in the annual total inventory; (d) use 40 CFR Part 75 methodology for reporting emissions for all sources subiect to the federal acid rain program; Je) maintain all records used in the calculation of the emissions, including but not limited to the following: Ji) amount of fuel consumed, (ii) percent sulfur content of fuel and how the content was determined, fiii) quantity ofproduct monitorinc data, Jiv) emissions monitoring data, Jv) operating data, and Jvi) how the emissions are calculated; Jf) maintain records of any vhvsical changes to facility operations or equipment, or any other changes that may affect the emissions proiections: and (2) retain records for a minimum of ten years from the date of establishment, or if the record was the basis for an adiustment to the milestone, 5 years after the date of an implementation plan revision, whichever is longer. (2) The state shall retain emission inventory records for non-utilities for 1996and 1998until the year 2018 to ensure that changes in emissions monitoring techniques can be tracked.

20.2.73 NMAC 3



### - p- - .- -STATE OF NEW MEXICO ENVIRONMENTAL IMPROVEMENTBO PETITION FOR 

### HEARING ON PROPOSED 20.2.73 NOTICE OF INTENT AND EMISSION INVENTORY EIB 03-08D

NEW MEXICO ENVIRONMENT DEPARTMENT'S NOTICE OF INTENT TO PRESENT TECHNICAL TESTIMONY The Environmental Protection Division ofthe New Mexico Environment Department (Division) submits this Notice of Intent to Present Technical Testimony in support of the above-

, referenced petition at the public hearing beginning on November 17 or 18,2003. 1. The person for whom the witnesses will testifv. The Division. 2. The name and qualifications of each technical witness.

za Mary Hilbert. Ms. Hilbert is an Environmental Analyst for the Control Strategies Section of the Air Quality Bureau. She has worked in the Control Strategies Section since July 2001. Ms. Hilbert holds a B.S. degree in Environmental Science and Management from New Mexico Highlands University. Rita Truiillo. Rita Trujillo is Program Manager in the Control Strategy Section ofthe Air Quality Bureau. Shehas 13years experience in the environmental field, including 5 years with the Air Quality Bureau. Ms. Trujillo holds a BS in Biology from Humboldt StateUniversity.
Maw

### Uhl. Mary is the Manager, Planning and Policy Section and has been with the Air Quality Bureau since 1992 doing computer-based air dispersion modeling in support ofpermit issuance, regulation development and enforcement actions. Ms. Uhl has completed over 500

a* NOTICE OF INTENT

### - PAGE 1dispersion modeling analyses for airpolliition facilities in the state and developed a 9 comprehensive New Mexico Air Dispersion Modeling Guideline. Ms. 

### Uhl has BS in Math and Chemistry and an 

### MS in Atmospheric Sciences all from Purdue University. Patrick Cummins. 

### Mr. Curnminsis the Air Quality Program Manager for the Western Governors' Association, where he also serves as Co-Director for the Western Regional Air Partnership. He has been in this position sinceJanuary 2000 and prior to that time, 

### Mr. Curnrnins served as Deputy Director of Denver's Regional Air Quality Council. He holds a BS in

I I Chemisby fiom Fort Lewis College in Durango, CO and an MPA in Ehvironmental Policy from the School of Public and Environmental Affairs at Indiana University, Bloomington: 

### IN.

I1 -9 3. Whether the Division supports or opposes the proposed revisions. The Division supports the proposed revisions.
4. Summary of testimony. The direct testimony ofMs. Hilbert is attached. The Division estimates that Ms. Hilbert's testimony will take 30 minutes. Ms. Trujillo, Ms. 

### Uhl and 

### Mr. Cummins will not provide direct testimony, but will be available to answer questions and for re-direct testimony, if necessary. 5. A list and description of anticipated exhibits.
EXHLBIT NUMBER TITLE OF EXHIBIT NMED Exhibit 1 NMED Exhibit 2 NMED Exhibit 3 Proposed revision to 20.2.73 NMAC Direct Testimony ofMary Hilbert 40 CFR 

### 55 1.309
6. Proposed alternative language. NMED proposes no additional changes to the regulation submitted to the Environmental Improvement Board on August 29,2003.

NOTICE OF INTENT

### - PAGE 27. Reservation ofRights. This Notice of Intent to Present Technical Testimony is based on the Division's petition. The Division reserves the right to call any person to testify and to present any exhibit in response
to another notice of intent or public comment filed in this matter or to any testimony or exhibit offered at the public hearing. The Division also reserves the right to call any person as a rebuttal witness and to present any exhibit in support thereof. Respectfully submitted,

,- NOTICE OF E'JTENT 

### - PAGE 3 

### NEW MEXICO 

### ENVIRON~ENT DEPARTMENT OFFICE OF GENERAL COUNSEL 

# -

rq ~rac~dhghef Tim Dolan New Mexico Environment Department 1190 St. Francis Drive Santa Fe, New Mexico 87502-6110 Telephone (505) 827-2990 Facsimile (505) 827-2836.psc TITLE 20 EN\W.C?NMENTPL ?RC)TECTIOIY NMED Exhibit 1 CHAPTER 2 AIR QUALITY (STATEWIDE) PART 73 NOTICE OFINTENT AND EMISSIONS INVENTORY REQUIREMENTS 20.2.73.5 EFFECTWE DATE: November 30, 1995 except where a later date is cited at the end of a section or paragraph. [11/30/95, 10/01/97; 20.2.73.5 NMAC - Rn,20 NMAC 2.73.104 02/18/02] [The latest effective date of any section in this Part is [-j ! 8, 3W]December,31. 2003.1 20.2.73.7 DEFINITIONS: In addition to the terms defined in Part 2 [20.2.2 NMAC 

### - Definitions], as used in this Part: A. "Air pollution control equipment" means any device, equipment, process or combination thereof the operation of which would limit, capture, reduce, confine, or otherwise control air contaminants or convert for the purposes of control any air contaminant to another form, another chemical or anothe~; physical state. B. 7'Commencement" means that an owner or operator has undertaken a continuous program of construction or modification. C. "Construction" means fabrication, erection, installation or relocation of a stationary source, including but not limited to temporary installations and portable stationary sources. D. "Emission report or inventorv" means a listing. bv source. ofthe amount of air pollutants dischareed into the atmosphere of a community. 

### 1. "Fugitive emissions" are those emissions which could not reasonably pass through a stack chimney, vent, or other functionally-equivalent opening. F[E7j. "Modification" means any physical change in, or change in the method of operation of, a statlonary source which results in an increase in the potential emission rate of any regulated air contaminant emitted by the source or which results in the emission of any regulated air contaminant not previously emitted, but does not include: (1) A change in ownership of the source;

,-- (2) Routine maintenance, repair or replacement; (3) Installation of air pollution control equipment: and all related process equipment and materials necessary for its operation. undertaken for the purpose of complying with regulations adopted by the board or pursuant to the federal Clean Air Act; or (4) Unless previously limited by enforceable permit conditions; (a) An increase in the production rate, if such increase does not exceed the operating design capacity of the source; (b) An increase in the hours of operation; or (c) Use of an alternative fuel or raw material if, prior to January 6, 1975,the source was capable of accommodating such fuel orraw material, or ifuse of an alternate fuel or raw material is caused by any natural gas curtailment or emergency allocation or any other lack of supply of natural gas. _G[F]. "Nonattainment Area" means, for any air pollutant, an area which has been designated as a nonattainment area under Section 107 of the Federal Act. 

### BIG]. "Operator" means the person or persons responsible for the overall operation of a facility. j[H]. "Owner" means the person or persons who own a facility orpart of a facility. J[X]. "Part" means an air quality control regulation under Title 20, Chapter 2 of the New Mexico Administrative Code, unless otherwise noted; as adopted or amended by the Board. _K[d]. "Portable stationary source" means a source which can be relocated to another operating site with limited dismantling and reassembly, including for example but not limited to moveable sand and gravel processing operations and asphalt plants. 

### L[K]. "Potential emission rate" means the emission rate of a source at its maximum capacity to emit a regulated air contaminant under its physical and operational design: provided any physical or operational limitation on the capacity of the source to emit a regulated air contaminant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored orprocessed, shall be treated as part ofits physical and operational design only if the limitation or the effect it would have on emissions is enforceableby the department pursuant to the Air Quality Control Act or the federal Act. 

### MIL]. "Potential to emit" means the maximum capacity of a stationary source to emit any airpollutant *- under its physical and operational design. Any physical or operational limitation on the capacity of a source to emit an airpollutant. including air pollution control equipment and restrictions on hours of operation or on the type or

20.2.73 NMACamoz;;t ~fmztefiz! cc=:bus?ed, stered, er ~B~C~CPSSP~, sha!! be treated as part of its design if the limitation is federally enforceable. The potential to emit for nitrogen dioxide shall be based on total oxides ofnitrogen. 

### EIM]. "Regulated air contaminant" means[;] any air contaminant, the emission or ambient concentration of which isregulated pursuant to the New Mexico Air Quality Control Act or the Federal Act. QIN]. "Shutdown"means the cessation of operation of any air pollution control equipment, process equipment or process for any purpose, except routine phasing out ofbatch process units. I'[Q]. "Stationary source" or "source" means any building, structure, equipment, facility, installation (including temporary installations), operation or portable stationary source which emits or may emit any air contaminant. Any research facility may group its sources for the purpose of this Part at the discretion of the Secretary of the Department. 0. "WEB source"means a stationary source that meets the a~vlicabilitv reauirements of 20.2.8 1.lo1 NMAC. R. "Western Backstop SO2 Trading Program" means 20.2.8 1NMAC. triggered as a backstop in accordance with the provisions in the SO2 Milestones and Backstop Trading Program Implementation Plan. if necessarv. to ensure that regional SO2 emissions are reduced. [I 1/30/95, 10/01/97; 20.2.73.7 NMAC - Rn,20 NMAC 2.73.107 & A, 02/18/02: A. 12/31/03] 20.2.73.jpb EMISSION INVENTORY REQUIREMENTS: A. \ Applicability: The requirements of Section 300 this Part [20.2.73.300 NMAC] apply to the owner or operator of any stationary source located outside of Bernalillo County which: (1) Has been issued a permit under Part 72 [20.2.72 NMAC - Construction Permits] during any period of time, except for toxic air pollutant permits issued undefTart 72 [20:2.72 NMAC], Sections 401 to 499; or (2) Is required to file a Notice of Intent under Section 200 of this Part C20.2.73.200 NMAC] or (3) Emits in excess of 1ton of lead or 10tons of total suspended particulate, PMlo,sulfur dioxide, nitrogen oxides, carbon monoxide, or volatile organic compounds in any calendar year including and subsequent to 1990. B. Reporting Requirements: (1) Any source which emits, or has the potential to emit, 5 tons per year or more of lead or lead compounds, or 100tons per year or more of PMlo,sulfur oxides, nitrogen oxides, carbon monoxide, or volatile organic compounds shall submit an emissions report annually. (2) Any source defined as a major source of hazardous air pollutants under Part 70 [20.2.70 NMAC - Operating Permits] shall submit an emissions report annually. (3) Any source which is located in an ozone nonattainment area and which emits, or has the potential to emit, 25 tons per year or more of nitrogen oxides or volatile organic compounds shall submit an emissions report annually. (4) Any source which is not required by Paragraph (l),(2), or (3) of Subsection B of this Section [20.2.73.300 NMAC] to submit an emission report shall submit an emissions report under this Part upon request by the Department, but no more frequently than annually. (5) Except asprovided in Paragraph (8) of Subsection B of this Section [20.2.73.300 NMAC], the Department shall provide to the owner or operator required by this Section [20.2.73.300 hMAC] to submit an emissions report a complete copy of the most current emissions report for their stationary source which is on file with the Department. The Department shall provide this copy to the owner or operator at least 90 days prior to the date when the source is required to submit an emissions report. (6) The owner or operator shall submit to the Department a complete, correct and current emissions report in the format specified by the Department which reflects emissions during the previous calendar year. (7) Except asprovided in Paragraph (8) of Subsection B of this Section [20.2.73.300 h'MAC] the owner or operator shall submit the emission report by April 1of each year in which the source is required to submit an emission report. (8) Sources for which a date for submitting an annual emission report is specified ina current Operating Permit issued under Part 70 [20.2.70 NMAC - Operating Pennits] shall submit such report on that date. TheDepartment shall provide a copy of the previous emissions report upon request by the owner or operator of such source. C. Content of Emissions Reports: Emissions report contents shall include: (1) The name, address, and physical location ofthe stationary source; (2) The name and telephone number of the person to contact regarding the emissions report;

20.2.73 NMAC 2(3) 'A. certificltinn signed by tl?~ nw-er, or operator, or a responsible official as defined in Part 70 [20.2.70 NMAC] attesting that the statements and information contained in the emissions report are true and accurate to the best knowledge and belief of the certifying official, and including the full name, title, signature, date of signature, and telephone number of the certifying official. For sources subject to Part 70 [20.2.70 NMAC], the certification shall be made as required under that Part; (4) Sinelters shall submit an annual report of su!h hput. in tonslvear: @[4]) For each emission point, as required by the Department: (a) Stack and exhaust gas parameters; (b) Type of control equipment and estimated control efficiency; (c) Schedule of operation; (d) Estimated actual emissions, including fugitive emissions and emissions occurring during maintenance, start-ups, shutdowns, upsets, and downtime of total suspended particulate, PMlo,sulfuroxides, nitrogen oxides, carbon monoxide, volatile organic compounds, and lead in tons per year and a description of the methods utilized to make such estimates, including calculations; (e) The mualprocess or fuel combustion rates; and (f) The fuel heat, sulfur, and ash content; and &3[5]) All information required under the Federal Act. D. Additional Content for Emissions Reports from Sources in Ozone Nonaitainment Areas: Ev~ssions reports from sources located in ozone nonattainment areas shall include, in addition to the contents specified by Subsection C of this Section [20.2.73.300 NMAC], the following information: (1) Typical daily process rate during the peak ozone season, where the peak ozone season is specified by the Department; and (2) Estimated actual emissions ofnitrogen oxides and volatile organic compounds, which shall be reported: (a) For each emissions point; and (b) For each process and fuel type contributing to emissions from each point; and (c) In units of tons per year for annual emissions; and (d) In units of pounds per day for a typical day during the peak ozone season. E. Waiver of Reporting Requirements For Insignificant Emissions:'The Department may waive the requirements of Paragraph (4) of Subsection C ofthis Section [20.2.73.300 NMAC] for emissions which the Department determines to be insignificant under Part 70 [20.2.70 NMAC], except that: (1) For sources in nonattainment areas, reporting of emissions ofpollutants for which the area is nonattainment shall not be waived; (2) Reporting of emissions for which reporting is required under the Federal Act shall not be waived. F. Emission Tracking Requirements for Sulfur Dioxide Emission Inventories: All stationary sources with actual emissions of one hundred (100) tons per vear or more of sulfur dioxide in the year 2000, or in anv subsequent vear. shall submit an annual inventow of sulfur dioxide emissions. beginnine with the 2003 emissiofi inventorv. A source that meets these criteria that then emits less than 100tons per year in a later vear shall submit a sulfur dioxide inventorv for tracking compliance with the regional sulfur dioxide milestones until the Western Backstop Sulfur Dioxide Trading Program has been fullv implemented and emission tracking has occurred under 20.2.81.106NMAC. (1) All WEB sources will be subiect to the following federallv enforceable provisions: (a) submit an annual inventorv of sulfur dioxide emissions: (b) document the emissions monitoringlestimation methodologv used. and demonstrate that the selected methodologv is acceptable under the inventorv Dropram; (c) include emissions fiom start un. shut down. and upset conditions in the annual total inventory; (d) use 40 CFR Part 75 methodology for reporting emissions for all sources subiect to the federal acid rain uroeram: (el maintain all records used in the calculation of the emissions. including but not limited to the following: (i) amount of fuel consumed. (ii) percent sulfur content of fuel and how the content was determined. (iii) quantity ofproduct monitoring data. (iv) emissions monitoring data. (v) operating data. and

20.2.73 NMAC6) hr?~ the ~misslcrrn are calculated: 

### (n maintain records of any ~hvsical changes to facilitv operations or eaui~ment. or anv other changes that mav affect the emissions proiections: and (g) retain records for a minimum of ten vears from the date of establishment. or if the record was the basis for an adjustment to the milestone. 5 years after the date of an implementation plan revision. whichever is longer. (2) The state shall retain emission inventory records for non-utilities for 1996 and 1998 until the vear 20 18 to ensure that changes in emissions monitoring techniaues can be tracked. [I 1130195, 10101/97; 2.20.73.300 NMAC 

### - Rn, 20 NMAC 2.73.300 - 304 02/18/02; A. 1213 1/03] HISTORY OF 20.2.73 NMAC: Pre-hMAC History: The material in this part was derived from that previously filed with the commission of public records - state records center and archives. EIBIAQCR 703.1, Air Quality Control Regulation 703.1 - Notice of Intent and Emissions Inventory Requirements, 5129190. History of Repealed Material: [RESERVED] ,I1 ! I Other ~ktory: ELBIAQCR 703.1, Air Quality Control Regulation 703.1 - Notice of Intent and Emissions Inventory Requirements, filed 5/29/90, was renumbered into first version ofthe New Mexico Administrative Code as 20 NMAC 2.73: Notice ofIntent and Emissions Inventory Requirements, filed 1013j0195. ' 20 NMAC 2.73, Notice of Intent and Emissions Inventory Requirements, filed 10130195,was renumbered, reformatted, amended and replaced by 20.2.73 NMAC, Notice of Intent and Emissions Inventory Requirements, effective 02118102.

20.2.73 NMACCT A 

### TE OF NEW E'XEmCO ulna W3.D Exhibit 2 

### ENVIRONMENTAL IMPROVEMENT BOARD PETITION FOR HEARING ON PROPOSED 20.2.73 NOTICE OF INTENT AND 

### EMISSION INVENTORY EIB 03-O8D DIRECT TESTIMONY OFMARY HILBERT LNTRODUCTION The Department is proposing to revise 20.2.73 NMAC, Notice of Intent and Emissions Inventory Requirements to ensure compliance with the emissions inventory requirements for the pre-trigger tracking set forth under 40 CFR 51.309; Exhibit 3. The federal Regional Haze Rule includes provjsions for tracking SO2emissions that includes pre- and post-thiggerinventories. The rule outlines declining SO2emission targets for the region, with provisions to trigger a backstop, regulatory, emission trading program if thQse targets are not met. The underlying goal of thsbackstop program is to rely on other regulatory requirements and voluntary measures, and the ability of western SO2sources to plan for necessary capital expenditures through their longterm business plans. A critical element of this plan is the ability to track emission changes over time to ensure that the regional targets have been met, and to determine whether the backstop trading program has been triggered. The tracking system has different functions prior to the program trigger and after the trading program is in place. Prior to the program trigger, it is important to measure progress over time, and to ensure that the underlying goals are being met. During this period of time, it is most important to track changes, and to ensure that the effects of new monitoring techniques are addressed so that onlyreal emission changes are measured. After the program has been triggered, the focus shifts to compliance for individual sources, and the assurance that a ton equals a ton. In this second phase, fixed monitoring protocols become important to ensure that a ton reduction from one source equals a ton reduction from another source. In order to comply with pre-trigger tracking of regional SO2emissions required by the federal regional haze rule, we are proposing the addition of Section F (Emission Tracking Requirements for SulfurDioxide Emission Inventories). Currently, sources in New Mexico that emit 100tons or more of sulfur oxides are subject to 20.2.73 NMAC and are required to submit annual reports to the Air Quality Bureau. Proposed Section F, Emission Traclung Requirements for Sulfur Dioxide Emission Inventories would include some additional requirements for these sources in order to compile an annual report with the details necessary for the state to make an informed decision on the amount of sulfur dioxide that has been emitted from facilities in New Mexico.rpt: I US 

### ilif~~~tkiii 

### will be shared 

### with cther stztttes

### in the 

### Eu!fix Dioxide Backstop Trading Program and a collective report compiled to determine if regional emissions exceed the milestone limitations. The Regional Haze Rule requires all states participating in the program to adhere to specific monitoring requirements to provide consistent information to track regional emissions. To revise the inventory rule we propose that three new definitionsbe included in 20.2.73.7

. 

### NMAC. Definitions for "Emission report or inventory", "Web source" and "Western Backstop SO2Trading Program" are all proposed to be included in 20.2.73 NMAC. Emissions report or inventory means a listing, by source, of the amount of air pollutants discharged into the atmosphere of a community. Web source means a stationary source that meets the applicability requirements of 20.2.81.101 NMAC. 20.2.81 .lo1 is the applicability section ofthe proposed Western Backstop Trading Program rule. This definition would apply to these sources:
1. 

### All BART-eligible sources as defined in 40 CFR 

### 51.301 that are BART-eligible due to SO2emissions. The "best available retrofit requirement" or BART requirement applies to facilities built between 1962 and 1977 that have a potential to emit more than 250 tons a year of visibility-impairingpollution. 2. All stationary sources not meeting the criteria of Paragraph 1 

### of Subsection B of 20.2.8 1.101 NMAC, that have actual SO2emissions of 100tons or more per year in the Program Trigger Years or any subsequent year. The fugitive emissions of a stationary source shall not be considered in determining whether it is a WEB source unless the source belongs to one of the following categories of stationary source: Coal cleaning plants (with thermal dryers); Krafi pulp mills; Portland cement plants; Primary zinc smelters; Iron and steel mills; Primary aluminum ore reduction plants; Primary copper smelters; Municipal incinerators capable of chargingmore than 250 tons ofrefuse per day; Hydrofluoric, sulfuric, or nitric acid plants; Petroleum refineries; Lime plants; Phosphate rock processing plants; Coke oven batteries; Sulfur recovery plants; Carbon black plants (furnaceprocess); Primary lead smelters; Fuel conversion plants Sinteringplants; Secondarymetal production plants; Chemical process plants;Fossi!-fbeI boilers (or 

### co=t;inztlon &eresf) tztalizg more thm 

### 250 million British thermal units per hour heat input; Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; Taconite ore processing plants; Glass fiber processing plants; Charcoal production plants; Fossil-fuel-fired steam electric plants of more than 250 million British thermal units per hour heat input; or 

### 3. Any other stationary source category, which as of August 7, 1980isbeing regulated under Section 1 1 1or 112 ofthe Clean Air Act. 4. A new source that begins operation after the Program Trigger Date and has thepotential to emit 100tons or more of SO2per year. Western Backstop Trading Program refers to proposed rule 20.2.81 NMAC, triggered as a backstop in accordance with the provisions in SO2Milestone and Backstop Trading Program Implementation Plan, if necessary to ensure that regional SO2emissions are reduced. In 20.2.73.300 Emission Inventory Requirements, we propose to add therequirement for smelters to submit an mualreport of sulfur input, in tonslper year. Theproposed revisions found in Section F includerequirements for sources that emit or have the potential to emit 100tons or moreper year of sulfur oxides to submit annual reports of SO2 emissions. Revisions to the rule would require smelters to submit the sulfur input in tons per year and indicate thepercent sulfur content of fuel and how the content was determined. Sources subject to the federal acid rain program are required to use 40 CFR Part 75 methodologies for reporting emissions. All subject sources will be required to retain records for a minimum often years from the date of establishment, or if the record was the basis for an adjustment to the milestone, five years after the date of an implementation plan revision, whichever is longer. The Air Quality Bureau will also be required to retain emission inventory records for nonutilities for 1996 and 1998 until the year 2018 to ensure that changes in emission monitoring strategies can be tracked. These additional requirements are a necessary part ofthe strategies needed to comply with the regional haze rule. The annual SO2emission reports will beused by 

### WRAP to compile a regional report to establish whether SOzmilestones have been met or exceeded. All states submitting a SLP under Section 309 of the Regional Haze Rule will adopt virtually identical emission inventory requirements. It is critical that states track emissions in the same way so that it will be simple to determine whether the milestones for SO2have been exceeded. This is an essential piece ofthe stationary sourceprogram for the SIP.http://ecfil. access. v~otc~cfiiotfilter.cgi?DE=l &ACTION=

...



### ____ -

THIS DATA CUJNT AS OF TEiE FEDEN REGISTER DATED NOVEMBER 3: 2003

40 CFR 

## - CHAPTER 

### I 

## - PART 

### 51

View 

### Pat ,I,. : 

## 8 51.30#'~e~uirernents related to the Grand Canyon Visibility ~rkns~ort Cornmission. (a) F%atis thepurpose ofthissection? This section establishes the requirements for the first regional hueimplementation plan to address regional haze visibgity impiim-ent in the 16 Class I areas covered by the Grand Canyon Visibility Transport Commission Report. For the years 2003 to 20 18, certzin States (defined 

### in paragraph (b) ofthis section as Transport Region States) may choose to implement the

, Commission's recom.iendations within the framework of the national regional hazeprogram and qplicablerequirements ofthe Act by complying with the provisions of this section, as supplemented by 

### rn approvableAraex to the Commission Report as required by paragraph (f) of this section. If a trmsport region State submits an implementation plan which is approved by EPA as meeting the requirements ofthis section, it will be deemed to comply with the requirements for reasonable progress fo; theperiod from approval of the plan to 2018. (b) Definitions. For the purposes of this section: (1) 

### 16ClassIareas means the following mandatory Class I Federal areas on-theColorado Plateau: Grand Canyon National Park, Sycamore Canyon Wilderness, Petrified Forest National Park, Mount Baldy Wilderness, San Pedro Parks Wilderness, Mesa Verde National Park, Weminuche Wilderness, Black Canyon of the GunnisonWildemess, West Elk Wilderness, Maroon Eells Wilderness, Flat Tops Wilderness, Arches National Park, Canyonlands National Park, Capital Reef National Park, Bryce Canyon National Park. and Zion National Park. 

### (2)TransportRegion State means one of the States that is included within the Transport Region addressed by the GraTid Canyon Visibility Transport Commission (,Arizona, Cdifonia, Colorado, Idaho, Nevada, New Mexico; Oregon, Utah, and Wyoming). 

### (2) CommissionReport means the report ofthe Grand Canyon Visibility Transport Commission entitled "Recommendations for Improving Western Vistas," dated June 10, 1996. 

### (4)-Fire means wildfire, wildland fire (including prescribed natural fire), prescribed fire, and agricultural bdg conducted mdoccuning on Federal, State, and private wildlands and farmlands. 

### (5)Milestone means the maximum level of annual regional sulfur dioxide emissions for a given year, assessed annually consistent with paragraph (h)(2) ofthis section beginning in the year 2003.<ode-og-FeZedRegulations SearchResults

. 

### (6)Mobile SourceEmission Budget measthe lowest level ofVOC, 

### NOX, 502 

### elmentd and 

### orgai3c carbon_:and he 

### q&Gcles which areprojected to 

### occur 

### in any xeawithin the transport region from which nobiie source missions ae detemiedto contribute sigificamiyto tPisibiiiryimpa-hentin my 

### ofthe 16Class 

### I areas. (7)

### Geo,ovaphSc enhancernentmeans a liiethod: procedure, orprocess to dlowa broad regiond strategy, such as amilestone or backstop market tradingprogar- designed to achieve greaterreasonable progress than 

### EPXT for regional haze, 

### to accommodate BART for reasonably atrributableimpairment. ' 

### (8)Baseyear means the year, generally a year between 1996 and 1998,for which data for a source included within 

### theprogram were used by the

### W to calculate base year e~ilissions as a starting point for development ofthe Annex required byparagraph (f) 

### ofthis section.



### ..

, 

### (9)Forecastrnerns the process used by the \;tW 

### to predict future eArJissions for purposes of develdpingthe milestones required byparagraph (f) 

### of 'hs section. (10)Reforecast means a co~ected fmecast, based upon reapplicatiooof the forecastiigprocess after

, 

### correction 

### ofbase year emissions estimates. (11) 

### BKP SunManuel means: (i) The copper smelter located in SanManuel, Arizona which operated during 1990, but whose operations were suspended during 

### the year 2000, (ii) The same smelter in the event of a change ofname or ownership. (12)PhelpsDodge Hidalgo means: (i) The copper smelter located in Hidalgo, New Mexico which operated during 1,990,but whose operztions were suspended during the year 2000, (ii) The same smelter in the event of a chw~ge ofnane oiownership. (13)Eligible renewable energy resource, for purposes of 40 CFR 51.309,neans electricity generated by



### . non-nuclezr and non-fossil low or no air emission technologies. (c)ImpIementation Pian Schedule. Eacn Transport Region Statemay meet the reauirements of $ 5 

### 1.308(b)throug?~ (e) by submitting an imphentationplan that complies

### with therequirements of 'this section. Each Transport Region Statemust submit ai~ 

### implementationplan addressing regional haze visibilig impairment 

### inthe 16 class 

### I sreas no later than ~eiember 31

### ,2003. 

### Indian Tribes 

### may subriit i~plenentztion plans after the December 3 

### 1,2003deadline.A 

### Transport Region Statethat does not s~brnit an 

### implementation plan that complies with the requirenents of this section (or whose pian does not comply with all 

### ofthe requirements ofthis section) is subject to the requirements of $ 

### 51308 in 

### the same manner and to the same extent as any 

### Statenot included within the Transport Region. (d)Requirements oftheJirst implementation planfor States electing to adopt all ofthe recommendaiions ofthe Commission Report. Except as provided for in 

### paragraph (e) ofths section, each Transport Region Sta~e must submit 

### an implementation plan that meets the followingrequirenents: (1)Time period covered. ne inplementzition plamust be efYective for the entire tie period between naAe-k- 21 9nn2 nom-t.- 21 qni Q '+-!I

### -&IE ofFederal-Regulations SearchResults (2)

### Projeciian ofvisibiliv improvement.For each ofthe 16mandatory Class 

### I areas located 

### within the 'Ti-& Region St&e,the

### plan ~ust include apiojecticn ofthe improvane~t 

### invisibility conditions 

# r (expressed

### in deciviews, and 

### in any zdditional ambient visibilitymebics deemed appropriateby the State) expected through the year 201

### 8 for the most impaired and least impaired days, based on the implementation of all measures as required 

### in the Commissionreport and theprovisions in this section. The projection must be made 

### in consultationwith other Transport Region Stateswith sourceswhich may be reasonably anticipatedto contributeto visibilityimpairment in the relevant Class 

### I area. The projection naybe based on a satisfactoryregional analysis. (3) 

### Treatment ofclean-air corridors. The plan must describe and provide for implementztion of 

### comprehensive emissiontraclung strategies for clean-air corridors to ensurethat the visibility does not degrade on the 'least-impaireddays at any of the 16 Class 

### I areas. The strategymust include: (i) &Iidentification of clean-air corridors.The 

### EPA will evaluate the State'sidentification of such corridorsbased upon the re~orts of the Commission's Meteorology Subcommittee and my future~pdates by a suq,cessor , . organizztion;

.I I i 

### I (ii)Withareas that are clean-air corridors, 

### an identificationofpatterns of growth or specific sites of gowth that could cmse, or are causing, si-gnificant emissions increases that could have, or xe Caving, visibility impakment at one ormore ofthe 16 Class 

### I areas. I (iii)

### In areas outside of clean-air coridors, 

### an identificationof significant emissions growth that could begin, or is beghing,to impair the quality of air in the corridor and thereby lead to visibility degradation for the least-impaired days in one or more of the 1 6 Class 

### I areas.
f? (iv) If impairment of air qualityin clean air comdors isidentifiedpursuant to paragraphs (d)(3)(ii) and (iii) of this section, an malysis ofthe effects ofincreased emissions: includingprovisions for the identification of the need for additional emission reductions measures, and implementation ofthe additionalmeasures where necessary. (v) A determinationofwhether other clean air comdors exist for 

### any of the 16 Class 

### I areas. For any such clean air comdors, an identification ofthe necessajmeasures to protect against future degradation of air-quality in ofthe 16Class 

### I areas. (4)

### Implementation ofstationa~y source reductions. The first implementationplm submissionmust hclude: (i) Sulhdioxide milestones consistentwith paragraph (h)(l) of this section. (ii)Monitoring and reporting of sul~Su dioxide emissions. The plan submission must include provisions requiiigthe annual monitoring and reporting of actual stationary source sulfur dioxide emissions within the State. The monitoring and reporting data must be sufficient TO determine whether a 13percent reduction 

### ir? actual emissions has occurredbetween the years 1990 and 2000, and for determining annually whether the milestone for each year between 2003 and 201

### 8 is exceeded, consistentwith paragraph @I) (2) ofthis section.Theplan submission must provide for reporting ofthese dztaby the State to fheAOlniilistrator and to the regional planning organization consistent with parzgraph @)(2) of this section. 

# r (iii) Criteria and Procedures for a Maiket Trading Program. Theplan must include the criteria and procedures for activating a market tradingprogram consistentwith paragraphs @)(3) and (h)(4) ofth~s section. 

### Theplan must also provide for implementation plan assessments ofthe program 

### ix~ the years)de-of-EederaLRe-datiolls SearchResults 

### 2008,2013, and 2018. (iv) Provisions for rnsrket tiadingpropan complimcerepodgconsistent wih

### pxagragh Q(4) 

### of ibis section. +-! 

### (v) Provisions for stationary source

### NOX and PM. The plan submission must include a report whch sssesses emissions control strategies for stationary source NOX and 

### PM, and the degree of visibility improvement that would result from such stme@es.

### In the report, the Statemdst evaluate and discuss the need to establish emission inilestones forNOX and 

### FM to avoid any net increae

### in thesepollutants from stationary sources within the transport region, and to support potential futuedevelopment and implementation of a rnultipollutant and possiblyrnultisourcemarket-based progm.Theplan submission must provide for an implementation plan revision, containing anynecessary long-tan strateges and 

### B!J?.T requirements for stationary source 

### PM and NOX (including enforceable

, 

### limitations, compliance schedules, and other measures) by no later than December 3 

### 1,2008. (5) Mobile sources. 

### The plan 

### submission must provide for: (i) Statewide inventories of current annual emissions and projected hture mud emissiocs of VOC: #NOX, S02, elemental carbon, organic carbon, and fine particles from mobile sources forthe years 2003 to 2018. T'he future year inventories must include projections for theyear 2005, or an alternative year - 

### that is determined by the Stateto represent the year during which mobile source emissions will be at their lowest levels withm the State. (ii) A 

### determination whether mobile source emissions 

### in any areas ofthe State contribute si@ficmt!y to visibility impairment 

### io any ofthe 16Class 

### I Aieas, based on the statewideinventory of current ad projected mobile source emissions. (iii) 

### For States with areas in which mobile source emissions sre found to contribute si@ficantly to 

### visibility impaimentin 

### any of the 16Class 

### I areas: (A) The establishment and documentation ofa mobile source emissions budget for mysuch area, i~cluding provisions requiring the State to restfict the annual VOC: NOX, S02,

### elemental mci 

### organic carbon, and/or fineparticle mobile source emissionsto heirprojected lowest levels, to implement measures to achieve the budget or cap, and to demonstrate compliance with the budget. 

### (B)Pa emission tracking systmproviding for rc?orting of annual mobile source emissions from the State in 

### theperiodic implenentztionplm revisions requiTedby puzg~zph (d)(10) of this 

### section.'The enission tracking system mustbe sufficient to determinethe States' contribution toward the Commission's objective ofreducing euissio~ls fiom mobile sources by 2005 or an alternate year thzt is detemined by the Stateto represent the year duringwhich mobile source emissions will be at their lowest levels witkin the State, md to ensure that mobile source emissions do not increase thereafter. (iv) Interimre7orts to 

### EPA and the public 

### izyeais 2003, 2008,2013, md 201

### 8 on tie

### impleae~tztion status oftheregional and local strategies recommendedby the Comnnission Report to address olobile source emissions. (6)Programs related 

### tofire. Theplu

### m~st provide for: (i) Documentation that 

### all Federal, State, and private presciibed fireprograms 

### withm the State evaluate and address the degree visibility impairment from smoke 

### in their planning and ayplicstio~i. 

### In addition the plan must include smokemanagementprograms that include 

### dlnecessary comyonents including, but 

# -9~Codt -0LEederal3egdarions Search Result - 

# 9

not limited to, actionsto minimize emissions, evaluation of smoke dispersion,alternatives to 6-e, p~blic notificatioo. 

### air qualitymonitoring surveillance ad enforcement, and progamevaluation. (ii) A statewide inventoryand emissionstrackkg system (spatial and temporal) ofVOC, NOX, elemental and organic carbon, and fine particle emissions fiom 6re. 

### In reporting and tacking emissions liom fire from within the State, Statesnayuse infomation fiom regional dzta-gathering and tracking initiatives. (iii) Identification and removal wherever feasible of any adiiinistrative barriers to the use 02alt~em~tives to burning in Federal, State, and private prescribed fire programs within the State. (iv) ~nhkced smokemanagement programs for firethat considervisibility effects, not only health 

### md nuisance objectives, and that arebased on the criteria of efficiency; economics,law, emissionreduction ~opportunities, land management objectives, and reduction of visibility impact. (v) Establishment of emission goals for fire, excluding wildfire, that will miniinize emissiori increases from fire to the maximum extent fcasible and that aie established in cooperatior?with Stztes, bfbes, Federal land management agencies, and private entities. (7) drecsources ofdust 

### emissionsfi-om paved and unpaved roads. The plan must inciude an assessment of the impact of dust emissions frompaved and unpaved roads on visibility conditions in the 16 Class 

### I Areas. 

### If such dust emissions are determined to be a significantcontributorto visibility impairment in the 16 Class 

### I areas, the Statemust implement emissions management strategiesto address the impact as necessary and appropriate. (8) Pollution prevention. Theplan must provide for: (ij

### An initial 

### sinmayof all pollution preventionprograms currently

### in place, 

### an inventory of 211 renewable energy generation capacity and production in use, orplanned as of the year 2002 (expressed 

### in megaw~tts ad megawatt-hours), the total energy generation capacityand production for the State, the percent ofthe total that is renewable energy, and the State's anticipated contributiontoward the renewable energy goals for 2005 and 2015, as provided 

### in paragraph (d)(8)(vi) ofthis section. (ii) Programs to provide incentivesthat reward efYorts that 

### go beyond compliance and/or achieve early compliance with air-pollution relatedrequirements. (iii) Programs to preserve and expand energy conservation efforts. (iv) The identificationof specific aieas where renewable energhas the potential to sapplypower where it is now lacking and where renewable exergyis most cost-effective. (v) Projections ofthe short- ad long-tern emissions reductions, visibility improvements, cost savings, and secondaybenefits associated with the renewable energy goals, energy efficiency and pollution prevention activities. (vi) A descr;lption oftheprogams relied on to achievethe State's contribution toward the Commission's goal that renewable energy will comprise 10percent ofthe regional power needs by 2005 and 20percent by 2015, and a demonstration of theprogress toward achievement ofthe renewable energy goals 

### in the years 2003,2008, 2013, ad 2018. This descriptionmust include documentation of the potential for renewable er;eraresources, the percentage ofrenewable energy associated with new power generation projects unplemented orplanned, and the renewable energy generation capacity and production in useodeo-f-~ederal~egdations SearchResults 

### and planned in the State.. To the extent that it is not feasible for a State to meet its contribution to the regional re~ewable 

### enerpgoals? the Statemust identifyinthe progress reports the measures hplemented to achieve its contiibution 

### and ex2lai.n why meetingthe Staterscontribution 

### was not feasible. 

### (9) Implementation o/addit;onaI recommendations.The plan must provide for implementationof 

### all otherrecommendations 

### in the Cornmission report thzt can be practicably included as enfoicezble emission limits, schedules of compliance, or other enforceable measures (including economicincentives) to make reasonable progress toward remedying existing and preventing futureregional huein the 16 Class 

### I areas. The State must provide a repert to 

### EPA and the public in 2003,2008,2013: 

### and 2018 on the progress toward developing and 

### implementingpolicy or strategy options recommended 

### in the Conmission Report. (10)

### Periodic implementation plan revisions.Each Transport Region Statemust submitto +he Administrator periodic reports 

### in the years 2008,20 13, id 20

## 16 The progress reports must be iri the form ofimplenentation plan revisions that comply with 

### the procedual requirements of

### 6 5 1 .I 02 and


### (i) The 

### report will assess the area forreasonableprogress as provided h

### this section formandatory Class 

### I Federal area(s) located within 

### the State and for mandatory Class 

### I Federal area(s) located outsidethe Statewhich may be affected by emissions fiomwithin the,

### hate. &s demonstrationmaybebased on assessments conducted by the States and/or a regionalplanning body. The progress reports must contain at a minimum the following elements: (A) A description ofthe ststxs of implementationof all measures included in the implementationplm for achieving reasonzble progress goals for mand~tory Class 

### I Federal areas both within 

### and outsidethe 

### State. 

### (B)A summaiy ofthe emissions reductions schieved throughout the State through implementation ofthe measures described in 

### paragraph (d)(l 

### O)(i)(A) ofthis section. 

### (C) For eachmandatory Class 1Federal area within the State, m 

### assessment of the following the current visibility conditionsfor the most impaired and least impaired days; the differencebetween current visibility conditionsfor the most impked and least impaired days and baseline visibility conditions; the change 

### in visibility impsliiment for the inost impaired and least impaired days over the past 5 

### years. (I>) 

### An aalysis tracking the 

### change over the past 5 yeas in emissions ofpollutants contributingto visibility irnp~ent fiom all 

### sources and activities within the State.Emissions chmges shouldbe identifiedby type of source or activity. The analysismust be based on the most recent updated emissions inventory,with estimates projected fomasd as necessary and appropriate,to accountfor emissions changes during the applicable 5-yearperiod. (E) 

### An assessinezt of my sigriiicant changes 

### in anthropogenic emissions withor outside the Stztefhzt have occmed over the past 5 years that have limited or impeded progress in reducing pollutant emissions and 

### improvingvisibility. 

### (F) 

### hassesssxeat ofwhether 'he cmeatimplementatiori plan elements md strategies zre sufficieotto enable fieState, or other States with mandatory Federal Class 

### I areas affectedby 

### emissions from the State,to meet d1 

### est~biblished reasonableprogress goals. 

### (G) A 

### review ofthe 

### State's visibilitymonitoring strategy and any modificationsto the strategyas

# -GedeofEederal-Regdado% SearchResuirr necessary. (ii) At the same tie the Stateis required to submit any 5-year progress report to EPA in accoraance withparagaph (d)(IO)(i) of this section, the Statemust also take one of the following actions based upon the information presented in thepropess report: (A) Ifthe State determines that the existing implementation plan requires no further substantiverevisior; zt fhs time in order to achieve established goals for visibility improvement and emissionsreductions,the Statemust provide to the Administiator a negative declarationthat furtherrevision ofthe existing implementation plan is not needed at this time. 

### (B) If the State determines that the implementation plan is or may be inadequateto ensure reasonable progress due to emissions fiom sources in another State(s)which participated 

### in a regional planning process, the State must provide notification to the Administrator and to the other State(s)which participated in theregional p1a11.n~~ process with the States. The State must also collaboratewith the other St,pt~(s) through the regional planning process for the purpose of developing zdditional strzteGes to address&e plan's deficiencies. 

### \ (C) Where the State determines that the implementation plan is or may be inadequzi~e to ensure reasonable progress due to emissions fiom sources in another county, the State shallprovide notification, along with availableinformation, to the ~dhistrator. 

### (D) Where the State detemines that the implementationplan is or maybe inadequateto ensure reasonable progress due to emissions fiom 

### within the State,the State shall develop additional strategies to addressthe plan deficiencies and revise the implementationplan no later than one year fiom the date that the progress report was due. (1 1)

### State planning and interstate coordination.L-J, complyingwith the requirements of hs section, Statesmay include emission reductions strategies that are based on coordinated implementation with other States. Examples ofthese strategies include economicincentiveprograms and transboundary emissions tradingprograms. The implementation plan must include documentationofthe technical and policy basis for the individual State apportionment (or the procedures for apportionment throughout the trans-boundary region), the contribution addressedby the State'splan, how it coordinateswith other Stateplans, and compliance with 

### any other appropriateimplementation plan approvabilitycriteria. States mayrely on the relevanttechnical, policy and other analyses developed by a regional entity (such as the Westerii Regicilal Air PartaersEip) 

### iri ?>rovidingsuch dccumentztion. Co~verse!y,Statesmay elect to develop their own programs without relying on work products from a regional entity. (12)

### Tribal implementation. Consistentwith 40 CFR 

### Pait 49, tribes within the Transport Region mzy implement the required visibilityprogasfor the 

### 16 Class I areas, in the same manner as.~tates:

. regardless ofwhether such tribes have pmticipated as members of a visibility transport commission. (e)

### States electi'iinot to implemezt the commission recommendations. bayTrmspoTiRegon State may elect not to implement the Commissionrecommendations set forth in paragraph (d) cfrhis sectior;. Such St~tes arerequired to complywith the 'helines and requirements of $ 5 1.308. Any Tiamport Region State electing not to implernentthe Conmission recommendations must advise the other States

### in the TransportRegon of the nature oftheprosam and the effect of the program on visibility-imp-g emissions, so that other States can take this information into account in developingprograms under this section. (f) 

### Annex to the Commission Report. 

### (1) A Transport Region State may choose to complywith 

### theocie-cfEe-d-erd_ReadationsSearch Results 

# a provisions of 'this section and by doing so shall satisf$-the requirements of § 51.308(b) through (e) only ifthe Grand CaqorVisibilityTransport Commission (or a regionalplanningbody fcmedto implement the Commission recommendations) submits a saiisfactoryannex to the Commission Report no iater tha October 1,2000. To be satisfactory,the Annex must contain the follow-ingelemeats: 

# ? (i) The annex must ~oili~ qumtiiative ~E~SS~OES milestones for stationary source sulfur dioxide emissions for the reporting years 2003,2008, 2013 and 2018. The milestones must provide for steady and continuing emissions reductions for the 2003-2018 time period consistent 'kirhthe 

### Commission's dehtion ofreasonable progress, its goal of 50 to 70percent reduction 

### in sull'ur dioxide emissions from 1990 acha.1emission levels by 2040, applicablerequirements under the CAA, and the timing of Liplementation plan assessments ofprogress and identification of deficiencies which will be due 

### inthe years 20085 2013, and 201 8. Themilestones must be shown to provide for greaterreasonable progress

, than would be acheved by application ofbest available retrofit technology (BART)pursuant to

, 

### 5 51.308(e)(2) md would be approvable 

### in lieu ofBART. (ii) The annexmust contain documentation of the market trading prosam or otherprogrsims to be implemented pursuant to paragraph (d)(4) of hissectionif currentprograms and volytarymeasures are not sufficient to meet the required emissionreduction milestones. This documentstion must include model rules, memoranda of understanding, and other documentationdescribbg 

### in detdhow exission reduction progress will be monitored: what conditions will require the mm-kettrading program to be activated, how alloczitions will be perforned, and hcw the program will operate. (2) The Commission may elect, at the same time it submits the annex, to make recommendations intended to demonstrate reasonableprogess for othermandatory Class I areas (beyond the onugim! 16) within the Transport Reg-ion States, including the technical and policyjustification for these additional mandatory Class I Federal areas 

### in accordancewith the provisions ofparzigraph (g) of this section. (3) The 

### EPA will publish the aex ugon receipt. If EPA hdsthat the mex meets the requirements of paragraph (Q(1) ofthis section and assures reasonableprogress: then, after public notice and comment: EFA will amend the requirementsof this section to incorporatethe provisiom of the amex. 

### IfEPA finds that the amex does notmeet the requirements of (f)(l) ofthis section, or does not assme reascnable progress, or ifEPA finds that the annex is not received, then each Transport Region State .must submit &implementation plan for regional hxze meeting all ofthe requirements of 

## 5 5 1-3 08. (4) 

### In accordance with the provisions under paragraph (f)(l) of ';his section, the m-exmay include a oeographc enhancementto the program proticied for 

### ia paisgzph (d)(4) ofthis section to adbess the 

## - requirement under 

## 5 51.302(c) re!zited to Best AvailableRetrofit Technolojg for reasonably attributable inpdentfrom the poliutmts coveredby the rilestones or the backstop market trading propam. The geographic enhancementprogran may include an zppropriatelevel ofreasonably attributable inpaimeniwhich may require additional emission reductions over above those achieved under rhe milestones defies in paragraph (f)(l)(i) ofthis section. (g) Additional Class 1oreas. Tnefoxowing submiiiais must be made by Tramport Region Siztes iniplementing the provisions of this section as the basis for demonstrating reasonable progress for addirional Class 

### I areas 

### in the Trans~orr Region States. If a Transport Regon State submits 

### an implementationplmwhich is approved by EPA as meeting the requirements ofthis section, it will be deemed to comply with the requirements for reasonable progess for the period from approval of the plm to 2018. 

### (I) 

### In the plan submitted for the 16 Class 

### I areasno lzter than December 3 1;2003, a declxation

. . indicating whether other Class 

### I areas will be addressed under 

### 8 5 1.3 08 or paragraphs (g)(2)and (3) of

. .Code~f Federal Re-dations Search Resd .--- this section. 

### (2) 

### In a plan submitted no later than Decexnber 31,2008,provide a demoktiation of expected visibility condidons for the most impaired and least impaired days at the additiooalmandatory Class 1 Fedad area(s)based on emissions projections tiom the long-term strategies in the implementation plan. This denonstration maybe based oil assessments conducted by the States ador

### a regional plamingbody. (3) 

### In a plan submitted no later than December 31,2008,provide revisioos'to the plan subiittedunder paragraph (c) of this section; including provisions to establish reasonable'progesspals 

### and implement myadditional measures necessaryto demonstrate reasonable progress for the additional madatory

. Federal,,Class

### I areas. Theserevisions must comply with the provisions of 

## 5 5 1.308(d)(l) through (4). (4) The followingprovisions apply for Transport Region States establishng reasonable progress goals and adopting any additiooal measures for Class 

### I areas other than the 16Class 

### I areas ~der paagraphs (g)(2) and (3) of this section. 

### (i) In developing long-term strategiespusuant to 

## 8 5 1.308(d)(3),the Statenaybuild upon the strategies implemented under paragraph (d) of this section: and take full credit for the visibilityimprovexne~i ' achieved through these strategies. (ii) The requirement under 

## 5 51.308(e) related to Best Available Retrofit Technology for regonal haze is deemed to be satisfied for pollutants addressedby themilestones and backstop trading progam if, ~II establishing the emission reductions milestones under paragraph 

## (0 oftbssection, it is shown that greaterreasonable progress will be achieved for these Class 

### I areas than would be achieved through the application of source-specificBART emission limitations under 

## 5 51.308(e)(l). 

# r (iii) TheTransport Region State may consider whether any strategies necessary to achieve the reasonable progress go'als required byparagraph (g)(3) oftkis section are incompatible with the strategies implemented under paragraph (d) ofthis section to 

## th'e extent the State adequately demonstrates that the incomp~tibility is related to the costs ofthe complimce, the time necessary for compliance, the energy and no air quality environmental impacts of compliance, or the remaining useful life of 

### any existing source subject to such requirements. Q

### Emissions Reduction Program for Major Industrial Sources ofSulfur Dioxide. The first implemekation plan submissionmust include a stationary source emissions reductions program for major ind~s~ial sources of sulfur dioxidethat meets the followingrequirements: (1)

### Regiona2 szlIfur dioxide milestones. The plan must include the milestones inTable 1: and provide for the adjusiments inparagaphs @)(l)(i)through (iv) of this section. Table 1 follows:
Tzble 1-Sulfur Dioxide Emissions Milestones

........................................................................ Column 1 Column 2 Column 3 Colunn 4

. . . if BHP San Manuel and Phelps Dodge Hidalgo resume For the year . . . operation, the mzximum regional

sulfur dioxide milestone is
. 

### . . . . if neither BIiP San Manuel nor Phelps Dodge

Hidalgo resumes operation, the minimum regional

sulfur dicxide milestone is
. 

### . . . . and the emission inventories for these years will det emine

whether emissions are greater than or

less thathe

miles tone : -----------------. .

. .

:~&-0fXlede~d Regulations ScxchR_e.splts. - ... http:!!ecfil..access~~o.

........... cgi?~f3=l &~cTIoN=..:

. .- .- 

### __ __

. .

2018
........ :..... Each year after

201e. 720,000 tons.. 

### .. 720,000 tons..
.. 720,000 tons.. 

### .. 720,000 tons.. 

### .. 720,000 tons.. .. 718,333 tons 

### .... 716,667 tons.. .. 715,000 tons

### .... 715,000 tons.... 715,000 tons
.... 695,000 tons 

### .... 682,000 tons....



### .. 682,000 tons.. 682,000 tons 

### .... 6E2,000 tons.. 

### ..

.... 682,000 tons 680,333 tons.
. :. 678,667 tons. 

### ... 677,000 tons. 

### ... 677,000 tons. 

### .,. . 677,000 tons. 

### ...

... 659,667 tons. 675,000 tons 

### .... 642,333 tons

### .... 655,000 tons..
.. 625,000 tons..
..

.. 

### .. 655,000 tons.. 625,000 tons..

I I 655,000 tons 

### .... 625,000 tods

### .... 510,000 tons.. 

### .. 480,000 tons.. 

### .. no more thvl no more than

510,000 tons 480,000 tons unless the unless the milestones are milestones are replaced with a replaced with a different different program that program that meets any BART meets any BART and reasonzble and reasonzble progress progress requirements requirements established in established in 5 51.309. 5 51.309. 2003. Average of 2003

and 2004. Average of 2003,

2004 and 2005. Average of 2004,

2005 and ,2006. Piverage of 2005,

2006 and 2007. Average or' 2006,

2007 and 2008. Average of 2007,

2008 and 2009. Average.of 2008,

2009 end 2010. Average of 2009,

2010 and 2011. Average of 2010,

2011 and 2012. Average of 2011,

2012 aid 2013. Aver'gge of 2012,

201t end 2014. Average of 2013,

20.14 and 2015.. Average of 2014,

. 2015 and 2016. Average of 2015,

2016 and 2017. Year 2018 only. 3-year average

of the year and the two previous years, or any alternative provided in aEy future plan revisions under 5 51.308(f).

.



### (i) Adjustment for Ststes and Tlibes Which Choose Not to Participzte 

### in the Program, and 

### for Tribes that opt into 

### theprogram after the 2003 deadline.

### If a State or Tribe chooses not to submit an 

### implementstion p1.m under 

### the option provided in 

## 5 5

### 1.309,or ifEPA has not approved a State or Tribe's implementationplan by the date ofthe drafi determination required by 

## 5 51.309(h)(3)(ii),the mounts for that State or Tribe 

### w-hch are listed 

### in Table 

### 2 must be subtracted fiom the milestones thzit =e included 

### in the ;Jilplementationplms for the ~ern~~g Si~tes and Tribes. For Tribes that opt intothe progmafier 2003, the mounts 

### inTable 2 or 4 

### will be autom~tically added to the milestones that are included

### in the implementationplans fortheparticipating States and 

### Tribes,beghming with the fiirstyear after the tribal implementationplan implementing 

## 5 51.309 is approvedby the Administrator. The amountslisted in Table 2 are forpurposes of adjustingtherniiestones only: and 

### they do not represe~t mounts that must be allocated under any future trading program. Table 2 follows:
Table 2-Amou~~ts Subtracted From the Milestones for States and Tribes Whic -------------------------------------------------------------------------------------- State or tribe 2003 2004 --------------------------------------------------------------------------------------.~Code~ofEederalRe&~~o~ SearchResult

# 9

-- 1. Arizona


### ....................................................... 117,372 117,372 2. California


### ................................................... 37,343 37,343 3. Zolcrado

### ..................................................... 98,897 98,@97 

# p 4. Idaho


### ......................................................... 18,016 18,016 5. Nevada


### ........................................................ 20,187 20,187 6. New Mexico


### .................................................... S4,624 e4,624

. 7. Oregon
......................................................... 26,268 26,26E 8. Utah 42,782 42,784



### ......................................................... 9. Wyoming


### ...................................................... 155,858, 155,85E 10. Navajo Nation


### ................................................ 53,147 53,147 11. Shoshone-Ba~nnock Tribe of the Fort Hall Reservation


### .......... 4,994. 4,994 12. Ute Indian Tribe of the Uintahand Ouray Reservation


### ......... 1,125 1,125 13. Wind River Reservation


### ...................................... 1,384 1,384

11'



### ...................................................................................... State or tribe 2011 2012

,_________-----------------------------------------------------------------------------

I. Arizona


### ...................................................... 11,0', 080 119, 08C 2. California


### .................................................... 34,402 34,404 3. Colorado


### ..................................................... 97,537 97,537 4. Idaho


### ........................................................ 16,414 16,414 5. Nevada


### ....................................................... 20,474 20,474 6. New Mexico 

# . ................................................... 83,182 83,182 7. Oregon

### ........................................................ 26,316 26,316



### ......................................................... 8. Utah 42,819 42,815

...... 9. Wyoming


### ........................................... :..... 155,836 155,836



### ............................................... 10. Navajo Nation 53,427 53,427 11. Shoshone-Barinock Tribe of the Fort Hall Reservation


### ......... a, 994 4,994 12. Ute Indian Tribe of the Uintahand Ouray Reservation

......... 1,135 1,135 13. Northern Arapaho and Shoshone Tribes of the Wind River 1,384 1,364

Reservation


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

...................................................................................... (ii) Adjustment for Future Operation of Copper Smelters. (A) The plan must provide for adjustmentstr?the nilestones 

### iothe event that Phelps ~odge Hidalgo andlor

### BHP SanManuel resume operations or that other smelters increase their operations. (B) The plan ~llust provide for adjustments to the milestones accordingto Tables 3a and 3b except that if eitherthe Hidalgo or San Manuel smeltersresumes -operationand is required to obtain a peimit under 40 CFR 

### 52.21' or 40 CFR 51.166,the adjustment to the milestone must be based upon the levels allowed 

### by the pennit. 

### IE no i~stmce mziy the adjustmentto themilestonebe greziterthm 22,000 tons forethePhelps Dodge Hiddgo, -eater tlim 16,000ions for 

### BHI) San Manuel, or more than 30,000 tons for the combination ofthe Phelps Dodge Hiddgo and 

### BHP SanManuel smelters for the yezs 201

### 3 through 2018. Tables 3a and 3b follow:

Table 32-Adjustments to the Milestones for Future Operations of Copper Smelters

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

... the~ you calculate the

milestone by Scenario If this happens and this happens adding this



### ... ... mount to the value in colm 3 of Table 1

........................................................................ 1



### .................. Phelps Dodge Phelps Dodge A. Beginni~g Hidalgo resumes Hidalgo resumes with the year operation, but production thatEHP San Mznuel does not.

Phelps Dodge

Hidalgo resumes operation, but BHP San Manuel does not.

BHP San Manuel

Mauel resumes operation, but Phelps Dodge Hidalgo does not. BHP Szn Mauel

resumes operation, but Phelps Dodge Hidalgo does not. consistent with past operations a~d emissions

.

Phelps Dodge

Hidalgo resumes operation in a substantialiy different - mmer sdch that emissions will be less than for past operations (an ~xample would be r&ning only one portion of the plant to produce sulfur acid only)

.

BHP Sm Manuel

resumes production consistent with past operations and emissions. BHP Ssn Mace1

resumes operations in 2 s+st/zntially ciifFerent mvlner such that emissions will be less production resumes, zzd for each year ug to the year 2012, the milestone increzses by: (1) 22,000 tons PLUS (2) hyunomts identified in T&le 3b. B. For the

years 2013 through 2018, the milescone increases by this amount or by 30,000 tons, wh,ichever is less. A. $eginning

with the year that production resumes, ad for each year up to the year 2012, the milestone increases by: (1) Expected emissions for Phelps Dodge Hidalgo (not to exceed 22,000 tons) , PLUS (2) Any amounts identified in Table 3b. B. For the

years' 2013 through 2 0 18, the milestone increases by this a?lount or by 30,000 tons , whichever is less. A. 16,000 tons

PLUS B. u-y amounts

identified in able 3b. A. Expected

emissions for BHP (not to exceed 16,000 tons) PLUS B. Pay mounts

icientifie2 in Table 3b.... ...... .. ........ ., .: .... .; .:

. . ... .... . . ,: ,.,,

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

.. ;Codeof2ed.eralBepu1atiom

. , Search - -- -

. . htrp://ecfil

_ i- _ __ .access.

.. &ACTON=.

.... ...

:. ... than for past operations (an exa-zple would be niiiing only one portion of the plant to produce sulfur acid only).

.... Both Phelps Both smelters Dodge Hidalgo resame aci BHP San production Manuel resume consistent with operations. past operations and emissions.

6


### .................. Both Phelps Dodge Hidalgo and BHP San Manuel resume operations.

7

### .................. Both Phelps Dodge Hidalgo and BHP San Mmuel resumes operations. A. Beginning with the year that production resumes, ad. for each year up to the year 20-12, the milestone increase by 38,000 tons. B. For the * years 2013

'through 2018, 'the milestone increases by 30,000 tons. Phelps , A. For the year

, Hidal$O%knes that.

production production consistent with resumes, and past operations and emissions, but BHP San Manuel resumes operations in a substmtially different mmer such that emissions will be less than for past operations (an example would be running only one portion of the plant to produce sulfur acid only).

BHP San Mmuel

resume producti-on consistent with the past operations and emissions, but Phelps Dodge Hidalgo resumes operations in a substzntially different manner such that emissions will be less than for past for each year up to the year 2012, the milestone increases by: (1) 22,000 PLUS (2) Expected emissions for San Manuel (not to exceed 16,000 tons)
. B. For the

years 2013 though 2018, the milestone increases by this sane mount, cr by 30,000 tons, whichever is less. A. For the year

that -production resumes, and for each year up to the ye2r 2012, milestone increases by: (1) 16,000 PLUS (2) Expected Hidalgo emissions (not to exceed 22,000 tons)
. B. For 'theoperations (an years 2013 exanple would though 2018, be ~~i-ng only the milescone one portion of increases by the plant to this sane produce sulfur anout, or by acid only)
. 30,000 ~ons,

8


### .................. Both Phelps Dodge Hidalgo and BHP San Mauel do not resume operations. ------------------------------------ whicnever is less. A. Any 'mounts

identified in Table 3b.

~able 3b-Adjustments for Certain Copper Smelters Which Operate Above , Baseline Levels [In tons]

Where it applies in table 3a, if the



### ... following smelter complies with existing permits but has actual annual emissions that exceed the

following baseline level ... thd milestone increases by the difference between actual

emissions and the baseline level, or the followina

mount, whichever is less



### ........................... Asarco Hayden 23,000 BHP SmManuel


### .......................... 16,000



### ..................... Ke-mecott Sslt Lake 1,000



### ...................... Phelps Dodge Chino 16,000 Phelps Dodge Hidalgo


### .................... 22,000



### ...................... Phelps Dodge Mimi 8,000 --------------------------------------------------------------- 

### (iil) Adjusm-entsfor changes 

### in emission monitoring or calculation methods. The plan must provide for adjusme~ts 

### to &e milesto~les to reflect changes 

### in su1,h.r dioxide emission monitoring or neasuremect met.?.?ods for a 

### sourcethat is included in 

### thepiogm,iilcludlng changes identifieduderpaagaph @)(2)(iii)@) of +Assection. Any such adjustment based upon changesto e~Ilissions mo~itoring or measurementmethods must be made in 

### the form of an implementation plan revision that complies with theprocedural requiremeats of 

### 5 51.102 and 

### 5 5

### 1.103.The implementation plan revision must be submitted

### totheAdininistrator no lakr than the first due date for a periodic report under paragraph (d)(10) of this section following the change in emission monitoring or measurement method. (iv) Adjustments for changes in 

### flow rate measurement methods for affected sowces under 40 

### CFR 72.1. For the years between 2003 snd 2017, ths, 

### implementationplan must provide for adjustments to the milestones for sources using the methods contained in 

### 40 

### CFR part 60, appendixA: Methods 2F, 2G, md 

### 2H. For 

### anyyear for which such an adjustment has not yet been made to themilestone, the implementation plan must provide for an adjustment to the emissions reporting to ensure consistency. The implementationplan must provide for adjustments to the milestones by no later than the date ofthe periodicplan revision required under 

## 5 51.309(d)(lO).(v) Adjustments due to enforcement actions arising fiom settlements.Tne implementation plan must provide for adjustments to the milestones, as specified - 

### inpaagraph @)(l)(vii) and (viii) ofthis section, 

# P if: (A) An agreement to settle 

### an action, vlsing from allegations of a failure of an owner or operator of 

### an emissionsunit at a source in theprogram to comply with applicable regulations which were 

### in effecr dunig thebase year, is reached between the parties to the action; (5) The alleged failure to complywith applicable regulations aEects the dssumptions that were used in calcu!ating the source'sbase year and forecasted sulfur dioxide emissions; and

4,' 

### (C) The settlement includes orreco~mends an adjustment to the milestones. (vi) Adjustments due to enforcement actions arising from adninistrative orjudicial orders.The kplementationplan must also provide for adjustments to the milestones as directedby any final 

### administrative orjudicial order, as specified inparagraph @)(l)(vii) and (viii) ofthis section. Where the finddrninistrative orjudicial order does not include a reforecast ofthe source's baseline; the State or TT,r;,Se shdl e~dlJ2te whether a reforecast of the source's baseline emissio~ls is approprizte. (vii)Adjustments for enforcement actions. The plan must provide that, based on paragraph 

### (h)(l)(v) and (vi) ofthis section, the milestonemust be decreased by an appropriate amount based on a reforecast cf the source's decreased sulfur dioxide emissions. The adjustments do not become effective until after the sourcehas reduced its sulkdioxide emissions as required in the settlement agreement, or advinistrative orjudicial order. All adjustments based upon enforcement actionsmust be made 

### inthe form of an implementztionplan revision thar complies with theprocedural requirements of 

## 55 51.102

ifand 51.103. (viii)Doc~~nentation of adjustmentsfor enforcement actions. 

### hthe periodic plan revision required u~lder 5 1.309(d)(!O), the State or Tribe shdlinclude the followingd~cmentation of my adjustment due to 

### aenforcement action: (A)Identification of each source under the State or Tribe's jurisdiction which has reduced sulfur dioxide enissions pursuant to a settlement agreement, or an administrativeorjudicial order; 

### (33) For each source identified, a statement indicatingwhether the milestones were adjusted in response to the enforcement action; 

### (C) Discussion of the rztionale for the State or Tiibe's decisionto adjust or not to adjust the milestones; a?ld (D) If extra SO2 emissions reductions (over 2nd above those reductio~ls needed for compliancewith the applicableregulations) were 

### pat of an agreement to settle an action, a statement indicating whether such reductionsresulted 

### in any adjustment to t5e milestones or allowance dlocations, and a discussion of the rationale forthe State or Tribe's decision on any such adjustment. 

### (ix)Adjustmentbased upon program audits. The plan must provide for appropriateadjustnents to the nilestones based upo~l the results ofprogram audits. Any such adjustment based upon audits must be made in the fom implementation plan revision that complies with the procedural requirements of 

## 44 5 1.102 and 5 1.103.The iinplementationplm revision must be submitted to the Administrator no later than the kt due date &er the audit for a periodic report under paragraph (d)(10) of this sectio~.:ode-of.EederalXe@ati~zls SearchResults 

### (x)Adjustment for iniividud sources opting into theprogarn. Theplan may provide for adjusimeats to the ~liilestones for any source choosingto pastici~ate 

### in theprogam even though the source does not meet the 100tons per yeas Miterion for inclusion.hy such adjustmentsmcst be made 

### inthe form or"

### an implementation plan revision that complies withthe procedural requiremeats of 

## 4fj 5 

### 1.102 and 51.103. (2)Requirements for moairouing, recoudkeepingand reporting ofactual annual emissions ofsuI,&u dioxide 

### -- (i) Sources included in theprogram. 

### The implementati.onplan must provide for annual emission monitoring and reporting, beginning with 

### calendaryear 2003, for dlsourceswith actual emissions of sulfur dioxide of 100tons per year or more as of 2003, and dlsources with actd emissions of 100tons or morepa year in 

### any subsequentyear. States and Tribes may include other sources 

### in theprogram, if the irn~lementation plan provides for the same procedures and monito&g as for other sources in a way that is federallyenforceable. (ii)Documentan'on ofemissions calculation methods. 

### The implementationpian austprovide documentation ofthe specificme tho do log^ 

### used to calculate emissions for each 

### emittingunit included 

### inthe program during the base year. The implementation plan must also provide for documentationof any chqe tb the specific methodologyused to cdculate emissions at any,emittingunit for anyyear zifrer the base (iii)Recoudkeepiag. 

### The implementation plan must provide for the retention ofrecords for at least 10 years from the establishment of the record. If a record willb'e the basis for an 

### adjustment to the milestone as provided for in pairagraph @)(I) of this section, that record must be retained for at least 10 years from the establishment of the record, or 5 years afterthe date of the implementzitionplmrevision which reflects the adjustment, whichever is longer. (iv) Completion and submission ofemissions reports. 

### The implementationplan must provide for the annual collection of emissionsdata for sources included within the program, quality zissmmce ofthe data, public review ofthe data: and submissionof emissions reports to the Adrsstrator and to each State and Tribe whichhas submitted 

### an implementationplan under this section. The implenentation plm must provide for submissionof ihe emissionreportsby no later 

### thm September 30 of each year, beg.g with reports due September 30,2004 for emissions from calendar year 2003. For sources for which changes

### in emission quantificationmethods require adjustments under paragraph (h)(l)(iii) of ',his section, the emissions reports must reflect themethod in 

### place before the change, for each year until the milestone has been adjusted. If each of the States whichhirave submitted an implementationplan under fhis sectionhave identified a regional planning organizationto coordinate the annual comparisonof regional SO2 

### emissions against the appropriatemiiestone, the implementation pian must provide for reporting of this infomation to the regional planningbody. (v) Eceptions reports. 

### emissionsreport submitted by each Stzte and Tribe under paiagrrph (li)(2)(ii) ofthis sectionmust provide for exceptions reports containing the following: (A) 

### Identification of any new or zddiiional sulfur dioxide sources gezterthan 1 00 tons per yeathat were not contained

### in the previous year emissionsreport; (B)

### Identificaeon of sources shct down or removed from the previous year emissions report; (C) 

### Explanation for emissions variations at any covered sourcethat exceed plus or 

### minm 20 perceat from thepreviocs year's emissionsrepori; 

### (D) Identification and explmzitionof changed emissionsmonitorkg and reporting methods at any source. 

### Theuse of any changed emission monitoring or reportingmethods requires 

### an adjustmentto themilestones accordingto paragraph @)(l)(iii)ofthis section. (vi)

### Reporring of emissions for theMohave Generating Station for theyears 

### 2003 through 

### 2006. For the years 2003, 2004,2005, and for anypart ofthe year 2006before installation and operation of sulh dioxide controls at the Mohave Generating Stanon, emissions from the Mohave Generating Stztior 

### will be calculated using a sulfur dioxide emission factor of 0.15pounds per million 

### BTU. (vii) 

### Specialprovision for theyear 2013. The implementationplan must provide that in the enissions report for calendar yea2012; which is dueby September 30,2013 under paragraph (h)(2)(iv) ofbs section, each Statehas the option ofincluding calendayear 2018 emissionprojections for each source, 

### in additionto the actual emissionsfireach sourcefor calendar year 2012. (3)

### Annual comparison ofemissions to the milestone 

### -- (i) The implementationplan must provide for a cornpaison each year of annual SO2 emissions for the region against the iippropriaterilestone. 

### In making this comparison,the Stateor Tribemust make the comparison,usiog its annual emissions report and emissions reports from other States and Tribesreported underparagraph (h)(2)(iv) ofthis section. ,It, : ,I I I (ii) The implementationplm must provide for the State or Tribe to m

# a,e available to the public a &aft report comparingannual emissions to the inilestoneby December 31 of each year. The first draft report, comparing annual emissions in 2003 to the year 2003 rqilestonewill be due December 31: 2004. i (iii) 

### Theimplementation plan must provide for the State or Tribe to subniit to the Administrator a hal determinztion of annual emissionsby March 3 1 of the followingyear. The final determination must st&e whether or not the annual emissionsfor the year exceed the appropriate milestone. (iv)A State or Tribe may delegateits responsibilities to prepare draft reports and reports supportingthe final determinationslinderparagraphs (h)(3)(i) through (iii) ofthis section to a regional planning organizationdesignatedby each State or Tribe submitting an approvable plan under this section. (v) Specid considerations for year 2012 report. If each State or TriT;e sub-mitriilg an approvable plan under th~s section has included calendar year 2018 emission projections under paragraph @)(2)(vii)of this section, then the report for theyear 2012 milestonewhich is due by December 31,201 3 under paragraph (h)(3)(ii) ofthis sectionmay also include a comparison of the regiond year 2018 emissions projection with the milestone for calendaryear 2018. If the report indicates thzt the year 201

### 8 milestone will be exceeded, then the State or Tribemay chooseto implement the market trading progam 'De_gimiagin the yea201

## e, if each Stzte or Tr;be s~baitthg 

### w: ap~rovab!e plan under this section agees. (vi) Independeatreview. The implementationplm must provide for reviews or'the annual emissions reporting program by an independent third party. This independent review is not required if a determination has been made under paragraph (h)(3)(iii) of this section to implement themarket tiading program. The independent review shallbe completedby the end of 2006, and every 

### 5 years thereafter, and shall include 

### an malysis of (A) The uncertainty of the reported emissions data; 

### (B)Whether the unce,rthtyof the reported emissio~ls dzta is likely tchave adverse iir~act on the snnual determinationof errissions relativeto the milestone; md, 

### (C) Whether there ark any necessaryimprovements for the annual administrative process for collecting the emissions data, reporting the data, and obtainingpublic review of the data.:ode~f-Federal-Re~.ulati~m SearchResults 

### (4)Market 

### tradingprogam. The Fnplementat-;on plan must provide for implementation of a market tzading

### pmgmifthe deiemiast-;on requiied byparagraph 0(3)(iii) ofthis sectio~ indicates that a milestone 

### has been exceeded. The implementation plan inust provide for the option ofimpiementsltion of a market trading program if arepofL under paragraph @)(3)(v) ofths section indicates that projected eaissions Ibr the yea201

### 8 will exceed the year 2018 

### milestone. The implementation plan nustprovide 

# 3 r'or 2 

### market tradingprogmwhose provisions are substantivelythe 

### same for each State or Tribe subroitting 

### az~ approvableplan mder this section. The implenatationplan must include the f011~wing makettrading 

### progmprovisions: (i)

### Allowa~ces. For each source 

### iathe program, the implementationplan must either identifythe specific allocation of allowances, on a tom per year basis, for each calendar year from 2009 to 2018 

### or

### the fcmula or methodology that will be used to calculatethe allowances ifthe program is triggered. The inple~entation plan must provide that eligible renewable energyresources that becoin operation zfter October 1, 2000 will receive 2.5 tons of SO2 allowancesper mesawatt ofinstalled nameplate capacity ' 

### per year. Allowance allocationsfor renewable eneraresources that begn operation prior to the progrm tiigger will 

### beretroactive to the tke of initial operation. The im?lementziion plan may provide for an upper limit 

### on the number of allowmces provided for eligible renewable energyresources. The t~tal of the tons per year allowances across all pxticipating Ststes and Tribes, including the renewable energy aaliowances, maynot exceed the mounts in Table 4 

### ofthis paragraph, less a 20,000 ton =out that 

### must be set aside for use by Tribes. The implementation plan may include procedures forredistebuting the allovlrances in 

### future years, if 2s 

### the amounts in Table 4 

### ofthis paragraph? less a 20,000 ton amount, are not exceeded. The iiiplementaton plan must provide thiit any adjustmentfor a calendaryear applied to the milestones under paragraphs (h)(l)(i) through (vii) ofthis sectionmust also be applied to the amoEn1s in 

### Table4. 

### able 4 follows: Tzble 4-Total Amount of Allowances by Year

,

For this year: If the two If the two smelters smelters do

resume not resume operations, operations,

the total the total number of number of allowances allowances

is sued by issued by States and States and Tribes may not Tribes may not exceed this exceed. this mount : mount :



### (ii) 

### Compliance with allowcnces.The implementationplan must provide that, be-PFnniog 

### with the complianceperiod 

### 6 years followingthe calendar year for which emissions exceeded the milestoce and for each compliance period thereafter, the owner or operator of each source in the progymiii~st hold allowances for each ton of sulkdioxide emitted bythe source.
11/5/20032:43 PM.'C~e-eL~ederal.Reg.1atiom SearchResdte (iii)

### Emissions quanti~cadon protocols. The implementationplan must include specific emissions qi~antification protocols for each source catego~y included within the propa,includiag the 

## (h identification of sources subject to part 

### 75ofthis chapter. For sources subjectto part 

### 75of+hs chapter. the implementation plan may rely on the emissions quantification protocol 

### inpart 

### 75.For source categorieswith sources in more than one Stateor tribal area submitting an implementationplan mder this section,each State or Tribe should use the sameprotocol to quantify emissions for sources 

### in the source cztegory. The protocols must provide forreliability (repezted application obrainsresults equivalentto EPA-approved test methods), and replicability(differentusers obtain the same or equivalentresults that are independentlyverifiable). Theprotocols must includeprocedures for addressing missing data, which provide for conservative calculationsof emissions and provide sufficient incentivesfor sourcesto complywith the monitoring provisions. 

### Iftheprotocols a-enot the same for sources within a given source category, and where the protocols are not based upon part 

### 75or equivalent methods, the State or Tiibesmust provide a demonstrationthat each suchprotocol meets all of the criteria ofthis paragraph. (iv)

### Mqnztoring andRecordkeeping The implementation plan must 

### $eludemooitoIlllgprovisions whch are con$istentwith the emissions quantificationprotocol. Monitoringiequired by theseprovisions m~st be timely 2nd of sufficient frequencyto ensure the enforceability ofthe progam. The impiementz~on plan must also include requirementsthat the owner or operztor of each source

### in the program keep records consistent with the emissions quantificationproitocols, and keep all records used to determine compliancefor at leat

### 5 years. For source owners or operators whichuse banked allowances, all records relating to the banked allowance must be kept for at least 

### 5 years after the banked allowances areused. (v) 

### Tracking system. The implementation plan must provide for submitting data to a centralized system for the tracking of allowances and emissions. The implementatiooplan must provide that all necessq

# r information regarding emissions, allowances, and transactionsis publicly available in a secure, cenrralizeddata base. 

### In the system, each allowancemustbe uniquelyidentified. Tne systemmusr allow for frequent updates and include enforceable procedures for recording data. (vi)

### Authorized account representative. The implementation plan must include provisions requiring the owner or operator of each source in the progam to identify an authorized account representative. ?The implementation plan must provide that all matters pertaining to the account,including,but not limited to, the deduction and transfer of allowances 

### in the account, and certifications ofthe completeness and accuracy of emissions md allowancestransactions required in the mualreport under paragraph (h)(4)(vii) ofthis section shall be undertaken onlyby the autho~zed'account representative. (vii)

### Anxual report. The implementation plan must iocludeprovisionsrequiring the authorized account rqresentative for each source in the program to demonstrate and report within a specifiedtime period followingthe end of each calendar year that the source holds dlowances for each ton per year of SO2 emitied in that year. The implementation plan must require the zuthorized account representative to submit the report within 60 days after the end of each calendaryear, ~nless alternative deadline is speciced consistent with emission monitoringand reporting procedures. (viii)

### Allowance transfers. The implementation plan must include provisions detailing the process for transferring dlowances between parties. 

### (ix)Emissions banking. The implementationplan mayprovide for the bmhng of unused allowances. Any suchprovisions must state whether unused allowances maybekept foruse 

### in future years and 

# r describeanyrestrictions on the use of any such allowances. Allowanceskept for use in future years may be used 

### incalendaryear 2018 onlyif the implementztionplan ensuresthat such allowances would not:ode-off ederalRegulauo11~ SearchResults 

# a
interfere with the achievement ofthe year 201

### 8 amount 

### in Table 4 

### iaparagraph (c)(L?)(i) ofthis section. (x)Penalties. Theimplaeatationpimmust: 

# 'm (A) Provide that if emissions from a sourcein the program exceed the allowancesheld by the source, the 

### r source's allowaaces will be reduced by 

### an aiiomt equd to two times the souce'stons of excess emissions: 

### (B) Provide for a~propriate financialpenalties for excess emissions, either $5000per ton (yeai 2000 dollars) or 

### an alternative amount that isthe same for eachparticipatilg State and Tribe and that substantially exceeds the expected cost of allowances, (C) Ensure that failure to complywith myprogram requirements (including monitoring,recordkeeping, . mdreportkg requirements) are violations which are subjectto civil md crirnind remediesprovided

~ - ' under hliczble State or &bal law ad the Clean Air A&, that each day cjfthe control period is a separate violation: and that each ton of excess missiocs is a separzte violation. Any allowrnce rehctioc or-?enalty assessmentrequiizd under paragraphs @)(4)(x)(A) id 

### (B) ofthis section shall not affect be liability of the source for rernedies 

### under thspsragraph. '(xi)P~ovisions for periodic evaluation ofthe tradingprogram. The implementation plan must provide for an evaluation ofthe tradingprogmno later than 

### 3 years following the first 

### full year ofthe trading propam: and at least every 

### 5 years thereafter. Any changes warranted bythe evaluation sho~ld be incorporzted into the next periodic implementationplan revision required under paragraph (d)(10) ofthis section. The evalua~on must be conductedby an independent third party md must include ~II smalysis of (A) Whether the total actual emissions could exceed the values 

### in 

## 5 51.309(h)(l)(i), eventhough sources comply with their allowances; (B)Whether the program achieved the overall emission milestone it was intended to reach; (C) The effectiveness ofthe compliance, enforcement and penalty provisions; 

### (D)A discussion of whether States and Tribeshave enoughresources to implementthe trading progm; 

### (E) Wether the tradingprogmresulted in anyunexpected beneficial effects, or myunintended detrimental effects; 

### (r") Whether the actions taken to reduce sulfur dioxidehaveled to myunintended increases 

### ix other pollutants; 

### (GI Wnether there are any changesneeded in emissions monitoring and reporting protocols, or in the administative procedures for program administration and tracking; and (H)The exectiveness ofthe provisions for interstate trading, and whether there are any proceduial chmges needed to make the interst~ie nature of the program more effective. (5)Other provisions 

### -- (i)Pe~mirti'izg of~~ifected sources. The implementation plan must prcvide that for sources subject to part 70 or pzrt 71 of this chapter, the implementation plan requirements for emissions reporting and for the tradingprogram under paragraph (h) of this section must be incorporatedLO the p& 70 or part 71 permit. For sources not subject to part 70 or pan 71 of this chapter, the requirementsmust be incorporatedinto apermit that is enforceable zis apractical matter by the Administrstor,and by citizensto 

### the extent permitted under the Clean

### Air Act. 

### (ii)

### htegratioon with ofherprograms.The impleme~~iation plmmust provide that in addition to the rzquire~ents ofpmagraph (h) of

### this section, any applicable restrictions ofFederal, Stzte, and tribd law remain ii~ place. No provision ofparagraph 

## O ofthis section should be interpreted 

### as exempting

### any sourcefrom compliance 

### with any other provision ofFederal, State, tribal or local law, including an zpproved implementationplm, a Federally enforceablepermit, or any other Federal regulations. 164FR 35709, July 1, 1999, as amended at 68 

### FR 33784, June 5,2003; 68 

### FR 39846, July 3, 2003; 68

. 

### FR 61369,

,,. Oct. 28,20031Table 2-An~ountsSubtracted From the Milestones for States and Tribes Which Do Not Exercise the Option Provided by § 51.309
State or tribe
1

. Arizona ...................................................... 2 . California

### ................................................... 3 . Colorado

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

........................................................ 4

### . Idaho 5. Nevada 

### ...................................................... 6 . New Mexico 

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



### . ....................................................... 7 Oregon 8

### . Utah

### ......................................................... 9. Wyoming 

### ....................................................... 10. Navajo Nation

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

. 

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

# 0 11 Shoshone-BannockTribe of the Fort Hall Reservation 12. Ute Indian Tribe of the Uintahand Ouray Respation

### ......... 13

### . Wind River Reservation

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

State or tribe 2011 2012 2013 2014 2015 2016 2017 2018

..................i... ................................................................................................................................ 1

. Arizona 

### ...................................................... 119. 080 119. 080 2

### . California

### ................................................... 34. 402 34. 402 .- 3 . Colorado

### .......................... ;

### . ......................... 97. 537 97. 537

. 4 Idaho

### ........................................................ 16.414 16. 414



### . ....................................................... 5 Nevada 20. 474 20. 474 6

### . New Mexico

### ................................................... 83. 182 83. 182 7 . Oregon

### ....................................................... 26. 316 26, 316 8 . Utah

### ......................................................... 42. 819 42. 819 9. Wyoming 

### ...................................................... 155.836 155. 836 10. Navajo Nation

### ............................................... 53. 427 53. 427



### ......... 11. Shoshone-BannockTribe of the Fort Hall Reservation 4. 994 4. 994



### ......... 12

### . Ute Indian Tribe of the Uintahand Ouray Reservation 1. 135 1. 135 13

### . Northern Arapaho and Shoshone Tribes of the Wind River 1. 384 1. 384 Reservation

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

__-______--_L_-__-_-----------------------------------------------------------------------------------------------------------------------------------

### EIB HEARING RE 1 1 STATE OF NEW MEXICO ENVIRONMENTAL IMPROVEMENT BOARD 2

3 No. EIB 03-08D

4 IN THE MATTER OF PETITION FOR HEARING ON 5 PROPOSED 20.2.73 

### - NOTICE OF INTENT AND EMISSION INVENTORY 6

7 8 9 10 TRANSCRIPT OF PROCEEDINGS 11 12 BE IT REMEMBERED that on the 18th day of 13 November, 2003, the above-entitled matter came on for 14 hehrlng before the New Mexico Environmental Improvement 15 ~odjti, taken at the State Capitol Building, Room 321, 16 Santa Fe, New Mexico, at the hour of 11:25 AM. 17 18 19 2 0 21 2 2 2 3 24

2

1 APPEARANCES 2 3 For the Environmental Improvement Board: 4 GAY DILLINGHAM, Chair GREGORY GREEN, Secretary 5 GWEN WARDWELL HAROLD TSO 6 DOLORES HERRERA
7 MARY H. SMITH Assistant Attorney General 8 Office of the Attorney General 111 Lomas Boulevard, Northwest 9 Suite 300 Albuquerque, New Mexico 87102 10 il For the New Mexico Environment Department:
12 TRACY HUGHES Special Assistant Attorney General 13 Office of General Counsel New Mexico Environment Department 14 1190 St. Francis Drive Santa Fe, New Mexico 87505 15

2 5 

### KATHYTOWNSEND INDEX PAGE WITNESSES: MARY HILBERT, MARY UHL, RITA TRUJILM and PATRICK CUMMINS Direct Examination of Mary Hilbert by Ms. Hughes 8 Cross Examination by the Board 14

25 4

1 EXHIBITS 2 MARKED/ADMITTED 

### I NMED: 

### 1 4 1. Proposed revision to 20.2.73 NMAC 14

5 2. Direct Testimony of Mary Hilbert 14 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2 1 22 23 24 25 

### XURT

### REPORTERS

### El6 HEARING 

### RE 20.2.73, 11/18/03 I I 5 MS. HERREWL: We welcome you to the Environmental Improvement Board's hearing. It's 11:25

on November 18th. This is a hearing in EIB 03-08D to consider amendments to 20.2.73 NMAC, the rules establishing requirements for the sulfur dioxide emissions inventory Today is November 18th. 2003, and we are meeting in Room 321 of the New Mexico State Capitol. I am Dolores Herrera, the Environmental Improvement Board member designated as Hearing Officer in this matter. The petitioner in this matter is the New Mexico Environment Department. Petitioner states that the reason for the proposed amendments is to enable the StateImplementation Plan, or SIP, S-I-P, and its rules to comply with the federal regional haze rule. Petitioner further states that the proposed amendments to 20.2.73 NMAC establish enforceable provisions and track sulfur dioxide emissions and clarify records retention requirements. The Environmental Improvement Board is mandated by Section 74-1-8.A.(4) of the Environmental Improvement Act and Section. 44-27 of the Air Quality Control Act to adopt rules regarding air quality management. 6 This hearing will be conducted in accordance with the Board's rule-making procedures and in a fair an6 impartial manner so as to assure that the relevant facts are fully elicited and to provide a reasonable opportunity for ell persons to be heard without making the hearing unreasonably lengthy or cumbersome or burdening the record with unnecessary repetition. The Rules of Civil Procedure and Evidence shzll not apply to this hearing. As Hearing Officer, I will mzke such orders as may be necessary to preserve decorum and to protect the orderly hearing process. The hearing shill proceed as previously detsiled by Hearing Officer Harold Tso with regard to the hearing in EIB 03-08A to consider revisions to the Regional Haze State Implementation Plan. We will now proceed. Will all persons who wish to testify at this hearing on behalf of the petitioner please stand so that the court reporter may administer the oeth? MARY HILBERT, RITA TRUJILLO, MARY UHL and PATRICK CUMMINS having been first duly sworn or affirmed, were exzmined and testified as follows: THE REPORTER: Would you each please state your names? 

### KATHY

### TOWNSEND 7 MS. HILBERT: Mary Hilbert. MS. UHL: Mary Uhl. MS. TRUJILLO: Rita Trujillo. MR. CUMMINS: Patrick Cummins. MS. HERRERA: Does the petitioner wish to make

a brief opening statement? If so, the floor is yours., MS. HUGHES: Thank you, Madam Hearing Officer. Very briefly, this is an amendment to an existing rule, 20.2.73 NMAC, or Part 73, on the notice of intent and emission inventory. This is to amend the provisions for tracklng the SO2 emissions that includes pre- and posttrigger inventories. 

# I Again, the Department will have one witness, 

# I Mary Hilbert, and then we would request that the other witnesses that you've already sworn would be allowed to

answer questions as a panel. So that would include Ms. Uhl, Ms. Trujillo and Mr. Cummins. We're ready to proceed. MS. HERRERA: Okay. And is everybody comfortable with that? Okay. All right. Petitloner may now present direct 25 testimony on the proposed rule amendments. 6 MS. HUGHES: Thank you.

DIRECT EXAMINATION OF MARY HILEERT BY MS. HUGHES: Q. Please state your name. A. Mary Hllbert. Q. And your educational background. A. I have a bachelor of science degree in envlromental science and management from New Mexico Highlands University. Q. And where do you currently work? A. I work for the hr Qualicp Bureau ln the Control Strategies Section. Q. And what do you do for the Control Strategies Sectlon? A. We work on regulatory and policy analysls and develop SIPS, or State Implementation Plans. We educate the publlc on air quality issues. Q. Okay. And you have prepered testimony that's Exhibit Number 2? A. Yes, I have 

# 1li Q. Okay.
123 Would you please present that? 

## 1 

# 1 24 A. And I want to apologize for the Board. 

# I
125 This -- I realize this is very repetitive, but in order 

### COURT 

### REPORTERSto have this on record, it's -- I kind of have to go through it over and over. MS. HERRERA: So do we. 

### Ell3 

### HEARING 

### RE 20.2.73, 1111

### 8/03

MS. HILBERT: Yes, I understand. The Department is proposing to revise 20.2.73 NMAC, Notice of Intent and Emissions Inventory Requirements, hereafter referred to as Part 73, to ensure compliance with the emissions inventory requirements for the pretrigger tracking set forth under the federal regional haze rule. The federal regional haze rule includes provisions for tracking SO2 emissions that include pretrigger and posttrigger inventories. The rule outlines declining SO2 emission targets for the region with provisions to trigger a 9

backstop, regulatory, emission trading program if those targets are not met. The underlying goal of this backstop trading program is to rely on other regulatory requirements and voluntary measures and the ability of SO2 sources to plan for necessary capital expenditures through their long-term business plans. A critical element of this plan is the ability to track emission changes over time to ensure that the 11

regional targets have been met and to determine whether 10 the backstop trading program has been triggered. The tracking system has different functions prior to the program trigger date and after the trading program is in place. Prior to that program trigger date, it is important to measure progress over time and to ensure that ,theunderlying goals are being met. During this period of time, it is most important to track changes and to ensure that the effects of new monitoring techniques are addressed so that only real emission changes will be monitored -- or measured rather. If the program is triggered, the focus shifts to compliance for individual sources and the assurance that a ton equals a ton. In the second phase, fixed monitoring protocols become important to ensure that a ton reduction from one source equals a ton reduction from another source. In complying with the pretrigger tracking of reqionel SO2 emissions required by the federal regional haze rule, we are proposing the addition of Section F, Emission Tracking Requirements for Sulfur Dioxide Emission Inventories, to Part 73. Currently, sources in New Mexico that emit 100 tons or more of sulfur oxides are subject to Part 73 and 1 Bureau. 2 Proposed Section F, Emission Tracking 3 Requirements for Sulfur Dioxide Emission Inventories, would include some additional requirements for these sources in order to compile an annual report with the details necessary for the state to make an informed decision on the'amount of sulfur dibxide that has been emitted from facilities in New Mexico. This information will be shared with other states in the Sulfur Dioxide Backstop Trading Program and a collective report compiled to determine if regional emissions exceed the milestone limitations. The regional haze rule requires all states participating in the program to adhere to sbecific monitoring requirements to provide consistent information to track regional emissions. To revise the inventory rule, we propose that three new definitions be included in Part 73. Definitions for "emission report or inventory," "WEB source" and "Western Backstop SO2 Trading Program" are all proposed to be included in Part 73. "Emission report or inventory" means a listing by source of the amount of air pollutants discharged into the atmosphere of a community. "WEB source" means a stationary source that 12 meets the applicability requirements of Section 101 of Part 01. Section 101 is the applicability section of the proposed Western Backstop Trading Program rule. This definition would apply to those sources. And in my written testimony, I have a listing of those sources. The "Western Backstop Trading Program" refers to proposed rule 20.2.81 NMAC, triggered as a backstop in accordance with the provisions in SO2 Milestone and Backstop Trading Program Implementation Plan if necessary to ensure that regional SO2 emissions are reduced. The proposed revisions found in Section F include requirements for sources that emit or have the potential to emit 100 tons or more per year of sulfur oxides to submit annual reports of SO2 emissions. Revisions to the rule would require smelters to submit the sulfur input in tons per year and indicate the percent sulfur content of the fuel and-how that content was determined. Sources subject to the federal acid rain program are required to use 40 CFR Part 75 methodologies for reporting emissions. All subject sources will be required to retain records for a minimum of 10 years from the date of 25 are required to suhmit annual reports to the Air Quality 25 establishment, or if the record was the basis for an 

# I KATHYTOWNSEND COURT REPORTERS

### El6 

### HEARING 

### RE 

### 20.2.73, 11/18/03

changes in emission monitoring strategies can be tracked. These additional requirements are a necessary part of the strategies needed to comply with the regional haze rule. The annual SO2 emission reports will be used by WRAP to compile a regional report to establish whether SO2 milestones have been met or exceeded. All states submitting a SIP under Section 309 of the regional haze rule will adopt virtually identical emission inventory requirements. It is critical that

dl, ! st,fps track emissions in the same way so that it can be '-- it will be simple to determine whether the milestones for SO2 have been exceeded. Again, this is an essential piece of the stationary source program for the SIP. That ends my testimony. Thank you. MS. HUGHES: Thank you, Madam Hearing Officer. If I may, NMED Exhibit Number 1 is our 14 proposed revisions to Part 73 to the rule. And NMED Exhibit Number 2 is Ms. Hilbert's prefiled written testimony. And we would move for admission of those two exhibits at this time. MS. HERRERA: Okay. I accept both of them for the record, to be admitted into the record. (Exhibits NMED 1 and 2 were marked for identification and admitted into evidence.) MS. HUGHES: Think you. MS. HERRERA: Thank you very much. MS. RUGHES: Thank YOU. MS.. HERRERA: At this time, does the Board haveany questions or wish to cross-examine the witnesses? MS. HUGHES: Again, we request that they be -- MS. HERRERA: Right. MS. HUGHES: -- cross-examined as e panel. Thank you. MS. HERREPA: Okay. CROSS EXAMINATION BY THE BOARD: MS. HERREPA: Harold? MR. TSO: No questions. 13 1 adjustment to the milestone, five years after the date 2 of an implementation plan revision, whichever is longer. 2 The Air Quality Bureau wiil aiso be required 4 to retain emissions inventory records for nonutilities 5 for 1996 and 1998 until the year 2018 to ensure that 

# 1 6 is the 309 rule. We just provided another copy as a 

# I 15 1 MS. WARDWELL: I had a question, but I don't 2 know if this has been admitted. 3 There's another Exhibit 3 thac's part of our 

# I

4 packet. 5 

# r3

MS. HUGHES: Madam Hearing Officer, Exhibit 3

courtesy again. MS. WARDWELL: Oh, okay. MS. HUGHES: It's the Federal Register, Section 309. MS. HERRERA: Did that answer your question? MS. WARDWELL: Well, there's a table in there that says amounts subtracted from the milestones for states and tribes -- well, I understand the words, but I don't really understand what it means. ?4~. CUMMINS: I cen answer that question. be milestones -- there are nlne states and several Indian tribes that are ellglble for participation in the program. For each milestone year, beginning In 2003, and every year thereafter through 2018, there are a set number of emission -- of emlssions for each state and each tribe, and that's how the regional emission milestone is set. It was necessary to do that in order to adjust 25 the regional total for those states and tribes that 16

1 don't opt into the program at this time. 2 So for example, in 2018, the regional 3 milestone, if all nine straight -- nine states and all 4 tribes participated, and the smelters aren't in, is 5 480,000 tons. California, Nevada, Idaho are not in, so
we have to lower that number to -- MS. WARDWELL: And this is the amount by state? MR. CWINS: And that's the amount by which you lower the milestone. MS. WARDWELL: Thank you. MS. HERRERA: Okay. Satisfied with -- MS. WARDWELL: Yeah, yeah. MS. HEWERA: Okay. Mr. Green? MR. GREEN: No questions. MS. DILLINGFAM: I have one curiosity question. How does New Mexico rank in terms of our emissions to the other states in the program, current1 in terms of the baseline that we're going to be using for the program? MR. CUMMINS: New Mexico is relatively high, 25 MS. HERRERA: Ms. Wardwell. 25 particularly if the Navajo sources are included. Now, 

### KATHYTOWNSEND COURT REPORTERS

### EIB HEARING 

### RE 20.2.73, 11/18/03 I I

1 again, you don't have jurisdiction over the Navajo Four 

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2 Corners Power Plant, but it is within the boundaritr of 

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3 the State of New Mexico. 

### I 1 Okay. The record of this public hearing is 

# I

4 The -- I'm just looking at the 2003 number for
~i:,sul 5 New Mexico, which i~ reflective, at least on a relative 2 now closed. 3 (Proceedings adjourned mt 11:42 AU.) 

# I

basis, current emiaaionr, as compared to the other states, and that's 84,600 tons. Arizona is 117,000. Colormdo, which ia not participating. is 98,000. Wyoming is 156,000.

so New Mexico's about in the middle.
US. DILLINGHAU: I'm sorry. Did you ray that

was with the Navajo -- MR. CUUUINS: No. That is without. The Navajo sources in both New Mexico and Arizona total 53,000 tons. US. DILLINGHAU: So 84 plus 53.
MR. CUNUINS: Well, that includes Four Corners plus Navajo, which is in Arizona.
US. DILLINGHAM: Okay. So -- UR. CUUUINS: About half thmc, about 04 plus,
ray, 25.
US. DILLINGHAN: Okay. Thank you. I don't have any more questions. - 24 MS. HERRERA: Okay. 24 

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11:lopn 25 

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Doer anybody a1.e have any more questions?

KATHY TOWNSEND COURT REPORTERS 110 ~uelfth street, Northw~rt.Albuquerque, New Uaxico 81102

1505) 243-5018 - Fax 1505) 243-3606 

### I KATHY TOWNSEND COURT REPORTERS 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax 15051 243-3606

I0
1 Okay. Nobody else on the Board. All right.
Is the Department aware of any other parson 

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3 who has timely rubnitted his intent to present technical 

## I 1 STATE OF NEW UEXICO I 2 I ss. 3 COUNTY OF BERNALILLO I 

### I 4 testimony? 

### I 4 

### I

n:uw 5 US. HUGHES: Madam Hearing Officer, the 6 Department is not aware of anyone else who's filed a 7 notice of intent. 8 Thank you. 5 6 I, CHERYL ARREGUIN, the officer before whom the 7 foregoing proceeding war taken. 60 hereby certify that 8 the witneeses whose testimony appears in the foregoing 

## I 9 Us. HERREFA: Are there any persona here who 

## I 9 transcript were duly sworn or affirmed; that I 

## I

: 1 have siqned up to provide nontechnical testimony? 11 Okay. At this time, I'm going to ark -- oops. 12 oh, for brief closing argument or statement. 13 Us. HUGHES: Undam Hearing Officer, the 10 persanally recorded the testimony by machina shorthand; 11 that said transcript is a true record of the t.rtimony 12 Given by aiid vitncrres; that I am neither attorney nor 13 counsel foz. nor related to or employed by any of the 

# I 14 Department has nothing else other than, again, wa make 

# I 14 partie. to the action in which this proceeding is taken, 

# I

II:(~W 15 the ~ane request, that the Board act on thir rule or 16 .mendmcnts to Part 73 either at the close of your 17 hearing today or before you clora your Board meeting I8 today or tomor~ow. I? Thank you. il:.~ur 20 Us. HERREFA: Thank you very much. 21 Doas the Board have any problems with that? 22 okay. 23 Is there a reason why we should not close this 24 public hearing? Do you -- from the Board, I'm asking, 15 and that I aa not a relative or cmployce of any attorney
16 or coun.=l employ=d by the p=rr$y.:~,q: yet

## ... &, 94~34@9
17 interested in the action. 

### r,s~~.Tpl

18

NOTARY PUBLIC CCR License Number: 21 Expires: 12/31/03

22 Uy Commission Expires: 12/10/03 23 24 

# I 11:llwr 25 is there a reason why the record ehould remain open? 

# I 25 

# I

KATHY TOWNSEND COURT REPORTERS 110 Twelfth Street. No~thwest,Albuquerqu~,New Uexico 87102 1505) 243-5018 - Fax (505) 243-3606 KATHY TOWNSLND COURT REPORTERS 110 Twelfth street, Northwest, Albuquerque, Nav Ucrice 87102 (505) 243-5010 - Fax (505) 243-3606KATHY TOWNSEND COURT REPORTERS 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606 L 0 03-08a

### - 6: 14 03-08d- 1 :3, 5:4 

### I 1

### - 414, 13:25, 14:8 10 - 12:24 100

### - 10123, 12114 101

### - 12:1, 12:2 111- 218 117,000 - 17:7 1190

### - 2:14 11:25- 1:16, 5:2 11:42 

### - 19:3 12/10103- 20:22 12/31/03 - 20:20 14 - 318, 4:4, 4:5

Dioxide- 10:21,

20.2.81 - 12:7 Albuquerque- 2:9

community

### - 1l:24 compared

### - 17:6

foregoing 

### - 20:7,

emissions 

### - 36, 319, 7:12, 93, 9:12, 10:19, 11:12, 11:16,

emit 

### - 10:23, 12:13,

cross-examined 

### - ability 

### - 9:20, 9:23 aboveentitled 

### - 1:13 accept - 14% accordance

### - 6:1, 12:8 acid - 12:20 act - 18:15 Act- 5:23, 5:24 action - 20:14, 20:17

addition - 10:20 additional 

### - 1l:4, 13:8

addressed 

### - 10:lO adhere - ll:14 adjourned - 19:3 adjust 

### - 15:24 adjustment- 13:l 2:3, 33, 5:10, 521, 8:24, 14:13, 14:22, 18:1, 18:15818:17, 18:21, 18:24

Board's- 5:2, 6:2 Boulevard

### - 2:8 boundaries

### - 17:2 brief

### - 7:6, 18:12 briefly

### - 7:9 Building

### - 135 burdening

### - 6:7 Bureau

### - 811, 11:1, 13:3 business

### - 9:22



### . C

, California- 16:5 capital

### - 9:21 Capitol- 1:15, 5:8 decision

### - 11:7 declining

### - 9:14 decorum

## - 6.1 1 definition

### - 12:4 definitions 

### - 11: 18 Definitions- ll:19 degree- 8:7 Department

### - 2:11, 2:13,5:13,7:14, 95, 18:2, 18:6, 18:14 designated -,5:10 detailed - 6:13 details 

### - 11:6 determine

### - 9:25, 11:11, 13:18

determined - 12:19 develop 

### - 8:16 different - 10:2 Dillingham- 2:4, 16:18, 17:11, 17:16, establish - 518, 13:12 establishing - 5:5 establishment

## - 12:25

Evidence

### - 6:8 evidence 

### - 14:9 Examination

### - 3:6, 3:8, 8:2, 14:21

examine

### - 14:14 examined -'6:23, 14:18 example - 16:2. exceed

### - 11:12 exceeded

### - 13:13, 13:19

Exhibit- 8:19, 13:25, 14:2, 153, 155 exhibits 

### - 143marked- 14:8 9:10, 9:11, 9:25, Markedladmitted-

matter

### - 1:13,511,

proposed

### - 5:14, includes 

### - 7:12, Mexico's

### - 17:lO Indian- 15:18 indicate

### - 12:17 individual

### - 10:13 requirements

### - 5:6, information- 11:9, informed- 11:6

Intent

## - 1:5,9:6 interested

### - 20:17

revisions- 6:14, Ritb 3:4,6:20. 7:3 11:19, 11122, 13:4,

needed- 13:9 Petition- 1:4 14:1, 15:6, 18:15 Nevada- 165

KATHY TOWNSEND COURT REPORTERS 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 

### - Fax (505) 243-3606

### KATHY TOWNSEND COURT REPORTERS 110 

### Twelfth Street, Northwest, Albuquerque, New Mexico 87102 12:3, 12:6 whichever 

### - 13:2 wish- 6:17, 75, 14:14 witness 

### - 7:14 Witnesses- 3:3 witnesses

### - 7:16, 14:15, 20:8, 20:12 words - 1514 Wrap- 13:ll written

### - 125, 14:3 Wyoming- 17:9 

### Y year

### - 12:14, 12:17, 135, 15:19, 1520 years-12:24,13:1 second- 10:14 Secretary

### - 2:4 section

### - 12:2 Section

### - 5:22, 5:23, 8:12, 8:14, 10:20, 11:2,12:1, 1212, 12:12, 13:14, 1510 set

### - 9:9, 15:21, 1523 several

### - 15:18 shall- 6:9, 6:12 shared

### - 11:9 shifts

### - 10:12 shorthand- 20:lO signed- 18:lO simple- 13:18 Sip-515, 13:14, 13:2 1 Sips- 8:16 smelters

### - 12:16, 16:4

Smith- 2:7 S02- 7:12, 9:12, , 9:14, 9:20, 10:19, 11:20, 12:8, 12:10, 12:15, 13:10, 13:12, 13:19 sorrf- 17:ll source 

### - 10:16,

(505) 243-5018 - Fax (505) 243-3606 12:23, 16:25, 17:14

stand

### - 6:18 State- l:l, 1:15,

states - 5:13, 5:17,

sulfur 

### - 5:6, 5:19, 10:24, 11:7, 12:14, targets

### - 9:15, 9:17, 9:25

technical

### - 18:3 techniques

## - 10:lO term

### - 9:22 terms 

### - 16:20, 16:22 testified- 6:23 testify 

### - 6:17 Testimony- 4:5 testimony

### - 7:25, 8:19, 125, 13:22, 14:3, 18:4, 18:10, 20:8, 20:10, 20:ll

thereafter 

### - 1520 three

### - ll:18 timely - 18:3 Today- 5:7 today-18:17,18:18 tomorrow 

### - 18:18 ton

### - 10:14, 10:16 tons 

### - 10:24, 12:14, 12:17, 165, 17:7, 17:15 total 

### - 15:25, 17:14 track - 5:19, 9:24, 10:8, 11:15, 13:17 tracked - 13:7 tracking

### - 7:12, 9:9, 9:12, 10:2, 10:18