Karl Brooks 

Regional Administrator 

U.S. Environmental Protection Agency Region 7 

11201 Renner Blvd. 

Lenexa, Kansas 66219 

Dear Administrator Brooks: 

The Iowa Department ofNatural Resources (Department) requests revisions to the Iowa State 

Implementation Plan (SIP) for the enclosed air quality administrative rule amendments. 

The Department has adopted administrative rules to implement recent changes the U.S. 

Environmental Protection Agency made to the federal PSD regulations. The amendments match 

the federal amendments to 40 Code of Federal Regulations 52.21 for the Plantwide Applicability 

Limitations (PAL) program for greenhouse gases. 

The Environmental Protection Commission (Commission) approved the enclosed rule 

amendments on DATE after a public hearing. The Commission has full legal authority to 

develop rules pursuant to Section 455B.133 of the Iowa Code. The state followed all applicable 

administrative procedures in proposing and adopting these rules. Enclosed and available at the 

websites indicated in this letter are the required submittal elements for determination of plan 

completeness per 40 CFR Part 51, Appendix V. 

The Notice oflntended Action for the rule making was published on March 20, 2013, in the 

Iowa Administrative Bulletin (Bulletin) Vol. XXXV; No. 19 (3/20/2013), pages 1447-1450, 

ARC 0648C. A copy of the Notice of Intended Action is attached. The official publication of 

the Notice oflntended Action in the Bulletin is available at the Iowa Legislature's website at 

https:/ /www.legis.iowa. gov/DOCS/ ACO/IAC/LINC/03-20-20 13 .Bulletin. pdf. ~public hearing was held on April23, 2013 at the Department's Air Quality Bureau offices in 

Windsor Heights, Iowa. The Department did not receive any comments at the hearing and did 

not receive any public comments before the close of the comment period on April23, 2013. 

The rule making was published as Adopted and Filed on June 12, 2013, in the Iowa 

Administrative Bulletin (Bulletin) Vol. XXXV; No. 25 (6/12/2013), pages 1947-1950, ARC 

7900 Hickman Road, Suite 1 I Windsor Heights, Iowa 50324 

515-242-5100 FAX 515-242-5094 http://www.iowacleanair.com/ 
p

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w/

d

Code/agencyDocs.aspx (Scroll down to 

Environmental Protection Commission (567), click on Chapters, scroll down to Chapter 33, and 

select either the PDF or RTF options). 

The Department requests that EPA revise Iowa's SIP to incorporate the enclosed amendments: 

If you have any questions regarding this submittal, please contact Christine Paulson by phone at 

(515) 242-5154 or by e-mail at christine.paulson@dnr.iowa.gov. 

Sincerely, 

Chuck Gipp, Director 

Enclosures: 

Notice oflntended Action: Iowa Administrative Bulletin, March 20, 2013, ARC 0648C 

Adopted & Filed: Iowa Administrative Bulletin, June 12, 2013, ARC 0783C c: Amy Algoe-Ealo -EPA Region 7, w! enclosures- by e-mail 

2 
persons may demand an oral presentation hereon as provided in Iowa Code section 17 A.4(1)"b." 

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion 

or on written request by any individual or group, review this proposed action under section 17 A.8(6) at a 

regular or special meeting where the public or interested persons may be heard. 

Pursuant to the authority oflowa Code section 455B.l33, the Environmental Protection 

Commission hereby gives Notice oflntended Action to amend Chapter 33, "Special Regulations 

and Construction Permit Requirements for Major Stationary Sources-Prevention of Significant 

Deterioration (PSD) of Air Quality," Iowa Administrative Code. 

The purpose of this rule making is to adopt recent federal amendments to the PSD 

program related to greenhouse gas emissions. The proposed changes will match federal 

regulations and will streamline Iowa's PSD program by providing additional opportunities for 

plantwide applicability limitations (PALs) for greenhouse gases. 

Background (PSD Program and PALs) 

New source review (NSR) is a federal term for review and preconstruction permitting of 

new or modified stationary sources of air pollution. The PSD program is a component ofNSR 

that includes procedures to ensure that air quality standards are maintained. In general, the PSD 

program requires that an affected facility obtain a PSD permit specifying how the facility will 

control emissions. The permit requires the facility to apply Best Available Control Technology 

(BACT), which is determined on a case-by-case basis taking into account, among other factors, 

the cost and effectiveness of the control. The specific nature of the project determines if it is 

subject to PSD requirements for greenhouse gases. 
Need for Rule Changes 

The proposed amendments will implement recent changes that the U.S. Environmental 

Protection Agency (EPA) made to the federal PSD regulations. The federal amendments were 

published in the Federal Register on July 12, 2012, and became effective on August 13, 2012 

(available at http://www.gpo.gov/fdsys/pkg/FR-2012-07-12/pdf/2012-16704.pdf). The proposed 

amendments to state rules match the federal amendments, and will provide additional 

opportunities for new and existing facilities to apply for PALs for greenhouse gases. 

The new PAL provisions offer maximum regulatory flexibility to affected facilities that 

choose to apply for PAL permits and that can maintain emissions of greenhouse gases below the 

PAL levels. Obtaining and complying with a PAL permit allows a facility to make changes 

without triggering PSD review. A PAL permit allows a facility to respond more rapidly to 

market conditions, while still generally ensuring that the environment is protected from adverse 

impacts from the changes. 

A PAL may also result in environmental benefit by providing the public with knowledge 

of the long-term emissions from the facility because PAL permits require enhanced monitoring, 

record keeping, and reporting to demonstrate compliance. The Department ofNatural Resources 

(Department) anticipates that the reduced regulatory burden associated with the PAL permitting 

process will offset any costs of enhanced monitoring, record-keeping, and reporting 

requirements. 

2 
Consequences of Not Amending State Rules 

Because Iowa has its own federally approved PSD program, the Department cannot issue 

a final PAL permit including the new greenhouse gas provisions until these provisions are 

adopted into state administrative rules. Without final rules, applicants would need to apply to the 

EPA to use the new PAL provisions. EPA would likely take significantly longer than the 

Department to issue a PAL. 

Additionally, if the Department does not proceed at this time, state rules for PSD will 

continue to be inconsistent with federal regulations, and will also be more stringent than federal 

regulations, which is prohibited by statute (Iowa Code section 4558.133(4)). 

Because of the urgency expressed by stakeholders to expedite this rule making, the 

Department is also proposing that the amendments be Adopted and Filed Emergency After 

Notice and become effective upon the date of filing with the Administrative Rules Coordinator. 

The rule making confers a benefit or removes a restriction on a segment of the public, according 

to the provisions of Iowa Code section 17 A.5(2)"b"(2). Under this schedule, the Department will 

accept comments following publication of this Notice oflntended Action until April 23, 2013. If 

the Department does not receive any public comments opposed to the proposed amendments or 

to an immediate effective date for the adopted amendments, the Department plans to present the 

amendments for final approval to the Commission on May 21, 2013. This will allow the 

Department to file the amendments with the Administrative Rules Coordinator no later than May 

3 
not "subject to regulation" if the stationary source maintains its total sourcewide emissions 

below the GHG PAL level and meets all of the requirements for the PAL program and the 

requirements specified in a PAL permit. The proposed amendment matches the changes the EPA 

made to federal regulations published on July 12, 2012 (see 40 Code of Federal Regulations 

(CFR) 52.21(b)(49)(i)). The GHG PAL level and PAL requirements are adopted by reference in 

rule 567-33.9(455B). 

Item 2 amends rule 567-33.9(455B) to revise the adoption by reference ofthe federal 

PAL provision. The proposed amendment will adopt by reference the new PAL provisions for 

GHGs that EPA published on July 12, 2012 (see 40 CFR 52.21(aa)). 

The proposed amendments will allow the Department to approve PALs and issue PAL 

permits for GHGs on either a mass basis or using the specified calculation for "tons per year 

carbon dioxide equivalent emissions (C02e)" basis, for any existing major stationary source or 

any existing GHG-only source. 

Any person may make written suggestions or comments on the proposed amendments on 

or before Tuesday, April23, 2013. Written comments should be directed to Christine Paulson, 

Department ofNatural Resources, Air Quality Bureau, 7900 Hickman Road, Suite 1, Windsor 

Heights, Iowa 50324; fax (515)242-5094; or by e-mail to christine.paulson@dnr.iowa.gov. 

A public hearing will be held on Tuesday, April23, 2013, at 1 p.m.in the conference 

rooms at the Department's Air Quality Bureau office located at 7900 Hickman Road, Windsor 

4 
The Department has determined after analysis and review that no adverse impact on jobs 

exists. The amendments will reduce the regulatory burden on affected facilities and will provide 

additional flexibility to facilities that choose to apply for a PAL permit. The amendments could 

have a positive impact on jobs in Iowa by increasing Department collaboration with job creators 

to reduce the regulatory burden and by providing additional flexibility for the regulated 

community, while still ensuring that Iowa's air quality is protected and maintained. The ability to 

respond more rapidly to market conditions facilitates economic growth and the associated jobs 

creation. 

These amendments are intended to implement Iowa Code section 4558.133. 

The following amendments are proposed. 

ITEM 1. Amend subrule 33.3(1), definition of"Subject to regulation," as follows: 

"Subject to regulation" means, for any air pollutant, that the pollutant is subject to either 

a provision in the Clean Air Act, or a nationally applicable regulation codified by the 

Administrator in 40 CFR Subchapter C (Air Programs) that requires actual control of the 

quantity of emissions of that pollutant, and that such a control requirement has taken effect and is 

operative to control, limit or restrict the quantity of emissions of that pollutant released from the 

regulated activity, except that: 

1. Greenhouse gases (GHGs), the air pollutant defined in 40 CFR §86.1818-12(a) 

5 
maintains its total sourcewide emissions below the GHG PAL level, meets the requirements in rule 567-33.9(455B), and complies with the PAL permit containing the GHG PAL. 

2. For purposes of paragraphs "3," "4," and "5," the term "tpy C02 equivalent 

emissions (C02e)" shall represent an amount ofGHGs emitted and shall be computed as follows: 

(a) Multiply the mass amount of emissions (tpy) for each of the six greenhouse gases 

in the pollutant GHGs by the associated global warming potential of the gas published at 40 CFR 

Part 98, Subpart A, Table A-1, "Global Warming Potentials," (as amended on October 30, 2009). 

For purposes of this definition, prior to July 21, 2014, the mass of the greenhouse gas carbon 

dioxide shall not include carbon dioxide emissions resulting from the combustion or 

decomposition of non-fossilized and biodegradable organic material originating from plants, animals, or micro-organisms (including products, by-products, residues and waste from 

agriculture, forestry and related industries as well as the non-fossilized and biodegradable organic fractions of industrial and municipal wastes, including gases and liquids recovered from 

the decomposition of non-fossilized and biodegradable organic material). 

(b) Sum the resultant value from paragraph (a) for each gas to compute a tpy C02e. 

3. to 5. No change. 

ITEM 2. Amend rule 567-33.9(455B) as follows: 

567-33.9(455B) Plantwide applicability limitations (PALs). This rule provides an existing 

6 
7 

Pursuant to the authority of Iowa Code section 455B.133, the Environmental Protection 

Commission (Commission) hereby amends Chapter 33, "Special Regulations and Construction 

Permit Requirements for Major Stationary Sources- Prevention of Significant Deterioration 

(PSD) of Air Quality," Iowa Administrative Code. 

The purpose of this rule making is to adopt recent federal amendments to the PSD 

program related to greenhouse gas emissions. The amendments match federal regulations and 

streamline Iowa's PSD program by providing additional opportunities for plantwide applicability 

limitations (PALs) for greenhouse gases. 

Notice of Intended Action was published in the Iowa Administrative Bulletin on March 

20, 2013, as ARC 0648C, and a public hearing was held on April23, 2013, in Windsor Heights, 

Iowa. The Department of Natural Resources (Department) received no comments at the public 

hearing and received no written comments by the April 23 public comment deadline. The 

Commission made no changes to these amendments from those published under Notice of 

Intended Action. 

The Commission proposed in the preamble to the Notice of Intended Action that the final 

amendments would become effective immediately upon filing because of urgency expressed by 

stakeholders to expedite the rule making. However, an expedited filing is no longer necessary. 

Consequently, these amendments are Adopted and Filed, instead of Adopted and Filed 

Emergency After Notice, and the amendments will become effective 35 days after publication in 
that includes procedures to ensure that air quality standards are maintained. In general, the PSD 

program requires that an affected facility obtain a PSD permit specifying how the facility will 

control emissions. The permit requires the facility to apply Best Available Control Technology 

(BACT), which is determined on a case-by-case basis taking into account, among other factors, 

the cost and effectiveness of the control. The specific nature of the project determines if it is 

subject to PSD requirements for greenhouse gases. 

A PAL permit is a voluntary program that is available to qualifying facilities and that 

establishes plantwide emission limits on a pollutant-by-pollutant basis. If a facility can maintain 

its overall emissions of a particular pollutant below the PAL level, the facility can make changes 

at the facility without triggering PSD review. 

Need for Rule Changes 

The amendments implement recent changes that the U.S. Environmental Protection 

Agency (EPA) made to the federal PSD regulations. The federal amendments were published in 

the Federal Register on July 12, 2012, and became effective on August 13, 2012 (available at 

http://www.gpo.gov/fdsys/pkg/FR-2012-07-12/pdf/2012-16704.pdf). The amendments to state 

rules match the federal amendments and provide additional opportunities for new and existing 

facilities to apply for PALs for greenhouse gases. 

The new PAL provisions offer maximum regulatory flexibility to affected facilities that 

choose to apply for PAL permits and that can maintain emissions of greenhouse gases below the 

2 
A PAL permit may also result in environmental benefit by providing the public with 

knowledge of the long-term emissions from the facility because PAL permits require enhanced 

monitoring, record keeping, and reporting to demonstrate compliance. The Department 

anticipates that the reduced regulatory burden associated with the PAL permitting process will 

offset any costs of enhanced monitoring, record-keeping, and reporting requirements. 

The Department has received an application for a PAL permit from one facility, the 

University of Iowa (U of I). U of I has requested a PAL permit or greenhouse gases under the 

new federal amendments. Other companies have also inquired about the availability of a PAL 

permit for greenhouse gases since the federal amendments became effective. 

Consequences of Not Amending State Rules 

Because Iowa has its own federally approved PSD program, the Department cannot issue 

a final PAL permit including the new greenhouse gas provisions until these provisions are 

adopted into state administrative rules. Without final rules, applicants would need to apply to the 

EPA to use the new PAL provisions. EPA would likely take significantly longer than the 

Department to issue a PAL permit. 

Additionally, if the Commission did not adopt these amendments, state rules for PSD 

would continue to be inconsistent with federal regulations, and would also be more stringent than 

federal regulations, which is prohibited by statute (Iowa Code section 4558.133(4)). 

3 
below the GHG PAL level and meets all of the requirements for the PAL program and the 

requirements specified in a PAL permit. The amendment matches the changes the EPA made to 

federal regulations published on July 12, 2012 (see 40 Code of Federal Regulations (CFR) 

52.21(b)(49)(i)). The GHG PAL level and PAL requirements are adopted by reference in rule 

567-33.9(4558). 

Item 2 amends rule 567-33.9(4558) to revise the adoption by reference of the federal 

PAL provision. The amendment adopts by reference the new PAL provisions for GHGs that 

EPA published on July 12,2012 (see 40 CFR 52.21(aa)). 

The amendments allow the Department to approve PALs and issue PAL permits for 

GHGs on either a mass basis or using the specified calculation for "tons per year carbon dioxide 

equivalent emissions (C02e)" basis, for any existing major stationary source or any existing 

GHG-only source. 

The Department has determined after analysis and review that no adverse impact on jobs 

exists. The amendments reduce the regulatory burden on affected facilities and provide 

additional flexibility to facilities that choose to apply for a PAL permit. The amendments could 

have a positive impact on jobs in Iowa by increasing Department collaboration with job creators 

to reduce the regulatory burden and by providing additional flexibility for the regulated 

community, while still ensuring that Iowa's air quality is protected and maintained. The ability to 

respond more rapidly to market conditions facilitates economic growth and associated job 

4 
ITEM 1. Amend subrule 33.3(1), definition of"Subject to regulation," as follows: 

"Subject to regulation" means, for any air pollutant, that the pollutant is subject to either 

a provision in the Clean Air Act, or a nationally applicable regulation codified by the 

Administrator in 40 CFR Subchapter C (Air Programs) that requires actual control of the 

quantity of emissions of that pollutant, and that such a control requirement has taken effect and is 

operative to control, limit or restrict the quantity of emissions of that pollutant released from the 

regulated activity, except that: 

1. Greenhouse gases (GHGs), the air pollutant defined in 40 CFR §86.1818-12(a) 

(as amended on May 7, 2010 through September 15, 2011) as the aggregate group of six 

greenhouse gases that includes carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, 

perfluorocarbons, and sulfur hexafluoride, shall not be subject to regulation except as provided in 

paragraphs "4" and ~ "5," and shall not be subject to regulation if the stationary source 

maintains its total sourcewide emissions below the GHG PAL level, meets the requirements in 

rule 567-33.9(4558), and complies with the PAL permit containing the GHG PAL. 

2. For purposes of paragraphs "3," "4," and "5," the term "tpy C02 equivalent 

emissions (C02e)" shall represent an amount ofGHGs emitted and shall be computed as follows: 

(a) Multiply the mass amount of emissions (tpy) for each of the six greenhouse gases 

in the pollutant GHGs by the associated global warming potential of the gas published at 40 CFR 

Part 98, Subpart A, Table A-1, "Global Warming Potentials," (as amended on October 30, 2009). 

5 
agriculture, forestry and related industries as well as the non-fossilized and biodegradable 

organic fractions of industrial and municipal wastes, including gases and liquids recovered from 

the decomposition of non-fossilized and biodegradable organic material). 

(b) Sum the resultant value from paragraph (a) for each gas to compute a tpy C02e. 

3. to 5. No change. 

ITEM 2. Amend rule 567-33.9(455B) as follows: 

567-33.9(455B) Plantwide applicability limitations (PALs). This rule provides an existing 

major source the option of establishing a plantwide applicability limitation (PAL) on emissions, 

provided the conditions in this rule are met. The provisions for a PAL as set forth in 40 CFR 

52.21(aa) as amended through November 29, 2005 July 12, 2012, are adopted by reference, 

except that the term "Administrator" shall mean "the department of natural resources." 

[Filed 5/22/13, effective 7117/13] 

[Published 6112113] 

EDITOR'S NOTE: For replacement pages for lAC, see lAC Supplement 6/12/13. 

6