Douglas W. Domenech Secretary of Natural Resources 

# COMMONWEALTH a/VIRGINIA

DEPARTMENT OF ENVIRONMENTAL QUALITY

Street address: 629 East Main Street, Richmond, Virginia 23219

Mailing address: P.O. Box 1105, Richmond, Virginia 23218

TDD (804) 698-4021 www.deq.virginia.goY



## NO V 08 

## 2011

Ms. Diana Esher, Director

Air Protection Division 

### (3APOO)

U.S. Environmental Protection Agency, Region III

1650 Arch Street Philadelphia, Pennsylvania 19103-2029 David K. Paylor

Director

(804) 698-4000

1-800-592-5482

Reference: Transcontinental

Fluvanna Station 175

Dear Ms. Esher:

Pursuant to the requirements of § 11 0 of the Clean Air Act, we are officially requesting approval of a revision to the Commonwealth of Virginia State Implementation Plan approved

and submitted under the authority of § 1 0.1-1185 of the Code of Virginia and in accordance with

the requirements of 40 CFR Part 51 (Requirements for Preparation, Adoption, and Submittal of Implementation Plans).

This revision consists of a mutual determination of permanent shutdown between the department and the Transcontinental Gas Pipe Line Corporation (Transco). Because the affected

units are permanently shut down, DEQ is requesting that EPA remove the permit from the SIP

. Once EPA has approved this request and DEQ has notified Transco of this approval, the pennit repeal will become effective 30 days later

.

Enclosed are the following:

1. SIP revision.

2. Certification of public participation activities and compliance with state administrative procedures.

3

. Record of hearing and summary of testimony

.4. 

### An electronic copy ofthe complete submittal. This electronic copy is an exact duplicate of the hard copy.

If you have any questions or need additional information, please let us know.

S' cerely,

# :a~~gPfA

DKP\kgs

TEMPLATES\SIP-PLAN\PLNOO SRCESPEC\TRANSCO\#175 FLUVANNA 2\175-2-SIP.DOC

Enclosures

### ENCLOSURE 1

1 COMMONWEALTH OF VIRGINIA
STATE IMPLEMENTATION PLAN REVISION
FOR
PHASE II OF THE NO X 

### SIP CALL

REPEAL OF STATE OPERATING PERMIT
FOR
TRANSCONTINENTAL GAS PIPE LINE CORPORATION
STATION 175 , FLUVANNA COUNTY

On October 27, 1998, the U .S. Environmental Protect ion Agency (EP A) published a
final rule

, “ Finding of Significant Contribution and Rulemaking for Certain States in the Ozone Transport Assessment Group Region for Purposes of Reducing Regional Transport of Ozone ” (63 FR 57355). This rule

, known as the NO X 

### SIP Call, required Virginia and certain other states to reduce the summertime emissions of nitrogen
oxide s (NO X 

### )

, which is one of the precursors of ozone pollution

, and to submit a revision to their State Implementation Plans (SIPs) that identified measur es necessary to
achieve these reductions.

EP A was subsequently challenged through the courts on the NO X 

### SIP Call rule . O n March 3, 2000, the DC Circuit Court issued a decision that largely favored EPA while ruling against them on several issues. One of the issues for which the c ourt ruled against EPA involved the failure to provide adequate notice of the change in control level assumed for large stationary internal combustion (IC) engines. The stay was lifted
for the issues for which the c ourt ruled in EPA's favor . Subsequently, the State Air
Pollution Control Board promulgated a r egulation to comply with the requirements of the
NO X 

### SIP Call . The Department of Environmental Quality (DEQ) then submitted this regulation to EPA as a SIP revision on June 2 5, 2002

. EPA approved this revision July
8 , 200 3 (6 8 FR 4 0 5 20 ). This action is known as the Phase I NO X 

### SIP Call, and addresses only those requirements for which the stay was lifted.

I n response to the remaining issues resulting from the court decision

, EPA published a final rule on April 21, 2004 (69 FR 21603). This rule, “ Interstate Ozone Transport: Response to Court Decisions on the NO X 

### SIP Call, NO X 

### SIP Call Technical Amendments, and § 126 Rules ,” is known as Phase II of the NO X 

### SIP Call . It
address e d the remaining requirements not included in Phase I of the NO X 

### SIP Call.
One of the actions of this rule was to set control levels for large stationary IC engines.

EPA's Phase II NO X 

### SIP Call rule targeted emission reductions from large IC engines,
whi ch are those that had an average NO X 

### emission of one ton per day or more during
the 1995 ozone season. EPA then reviewed the IC engine inventory in order to develop
a database that identifies affected sources and the emissions reductions these sources

nee d to achieve.

In Virginia, it was determined that Transcontinental Gas Pipe Line Corporation

### 2 ( Transco ) owns all of the potentially affected sources in the state . Four of Transco 's stations in Virginia are subject to the IC engine portion of the Phase II NO X 

### SIP Call :

Station Number Location Registration Number
Station 165 Chatham, VA (Pittsylvania County) 30864
Station 170 Appomattox, VA (Appomattox County) 30863
Station 175 Scottsville, VA (Fluvanna County) 40789
Station 180 Unionville, VA (Orange C ounty) 40782



### The total required reduction of NO X 

### from the affected stations was 3

, 343 tons from 17 engines , assuming a .98 growth factor and an 82% NO X 

### reduction. T his differ s from
the 6

, 168 tons shown as the Phase II incremental reduction in 40 CFR 51 .121 (e)(3); however, EPA identified 17 large engines projected to emit 4

, 077 tons in 2007 and
verified that an 82% reduction equates to 3

, 343 tons. Communications between DEQ and EPA acknowledge that the NO X 

### emission re ductions required as published wa s a n error, and that the reductions required is 3,343 tons per ozone season.

EPA required that Virginia confirm that the identified ICs were those that would be required to control by 82% . It also required that, in the demonstration, the inventory
was refer enced in order to show that Virginia is meeting all Phase II requirements. The
final EPA rule also addressed revisions of budget numbers, and corrections made during the rulemaking process

, which allow correction of the final numbers to be made
in the SIP s approvals which take action on the state rules. Emissions correlated to the needed reductions as determined by Virginia and verified by EPA are shown below:

Station
Information 1995 NO X Emissions 2007 Ozone Season NO X Emissions

Ozone Season EPA Total Targeted Targeted Allowable

Station Location tons per season Growth NO X Reduction NO X Changes Total NO X

No. Factor tons % tons tons

165 Pittsylvania County 201.8223 0.98 197.7859 82% (162.1844) 35.6015

170 Appomattox County 2691.7290 0.98 2,637.8944 82% (2,163.0734) 474.8210

175 Fluvanna County 1107.8730 0.98 1,085.7155 82% (890.2867) 195.4288

180 Orange County 158.6610 0.98 155.4878 82% (127.5000) 27.9878 Totals for All
Units Subject to
Rule 4160.0853 4076.883594 (3,3 43.0445) 733.8390



### Transco Station 175 located in Fluvanna County , Virginia w as identified as a source subject to the IC engine portion of the Phase II NO X 

### SIP Call requirements. A legally
enforceable mechanism (federally enforceable state operating per mit) was drafted to ensure compliance with the Phase II NO X 

### SIP Call requirements . DEQ subsequently submitted the permit as a revision to the Commonwealth of Virginia SIP on March 12, 2007, and EPA approved the submittal on October 30, 2008 (73 FR 64551).

On July 26, 2011

, Transco and DEQ joined a mutual determination of permanent

### 3 shutdown of the 4 large stationary natural gas

- fired, spark ignited, reciprocating IC engines that were permitted, in accordance with 9VAC5

- 20

- 220, s hutdown of a stationary sour ce:

A. Upon a final decision by the board that a stationary source or emissions unit is shut down permanently, the board shall revoke any permits by written notification to the owner and remove the stationary source or emissions unit from the emission in ventory or consider its emissions to be zero in any air quality analysis conducted; and the stationary source or emissions unit shall not commence operation without a permit being issued under the applicable provisions of 9VAC5 Chapter 80 (9VAC5

- 80

- 10 et s eq.).
B. The final decision shall be rendered as follows: 1. Upon a determination that the stationary source or emissions unit has not operated for a year or more, the board shall provide written notification to the owner (i) of its proposed
decision th at the stationary source or emissions unit is considered to be shut down permanently and (ii) that if the owner fails to provide within three months of the notice written response to the board that the shutdown is not to be considered permanent, the
decisi on shall become final within six months of the notice. The response from the owner
shall include the basis for the assertion that the shutdown is not to be considered permanent and a projected date for restart

- up of the stationary source or emissions unit

. 2. If the board should find that the basis for the assertion is not sound or the projected

restart

- up date allows for an unreasonably long period of inoperation, the decision to consider the shutdown permanent shall become final one year after the date of the notice of the proposed decision. C. Nothing in any regulation of the board shall be construed to prevent the board and the owner from making a mutual determination that a stationary source or emissions unit is shut down permanently prior to any fi nal decision rendered under subsection A of this section.



### The state operating permit regulations also require, in accordance with subsection L of
9VAC5

- 80

- 1210 (Permit invalidation, suspension, revocation and enforcement) , that “nothing in the regulations of the board shall be construed to prevent the board and the owner from making a mutual determination that a permit is rescinded because all of the statutory or regulatory requirements (i) upon which the permit is based or (ii) that
necessitated issuance of the permit are no longer applicable.” However, the permit provides that:

The Board may revise (modify, rewrite, change or amend) or repeal this permit with the consent of Transcontinental Gas Pipe Line Corporation, for good cause shown by Transcontin ental Gas Pipe Line Corporation, or on its own motion provided approval of the revision or repeal is accomplished in accordance with Regulations of the Board and the Administrative Process Act (§ 2.2

- 4000 et seq.). Such revision or repeal shall not be eff ective until the revision or repeal is approved by the U. S. Environmental Protection Agency following the requirements of 40 CFR Part 51 (Requirements for Preparation, Adoption, and Submittal of Implementation Plans ).



### Because the affected units are perma nently shut down, DEQ is requesting that EPA remove the permit from the SIP. Once EPA has approved this request and DEQ has
notified Transco of th e approval, the permit repeal will become effective 30 days later

. The shutdown agreements between Transco an d DEQ are provided in Attachment A. The original permit is included as Attachment B.

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### ATTACHMENT A

4 LEGALLY ENFORCEABLE MECHANISM ( MUTUAL DETERMINATION OF PERMANENT SHUTDOWN )
TO EN ABLE RE S C I SSIO N OF THE RACT PERMIT
FOR

Transcontinental Gas Pipe Line Corporation
T ransco Station 175
Fluvanna C ounty, Virginia

Registration No. 40789

Under the authority provided in 9VAC5

- 20

- 220 , the Director of the Valley Regional
Office signed a mutual determinati on of permanent shutdown with Transcontinental Gas Pipe Line Corporation (Transco) on July 26, 2011 , to be effective that same day.
The determination was issued following the procedural requirements of 9VAC5

- 20

- 220
of Part I I of 9VAC5

- 2 0 (General Provisio ns)

.

### ATTACHMENT B

ORIGINAL PERMIT TO ENSURE COMPLIANCE WITH
PHASE II NO X 

### SIP CALL REQUIREMENTS
FOR

Transcontinental Gas Pipe Line Corporation
T ransco Station 175
Fluvanna C ounty, Virginia

Registration No. 40 789

Under the authority provided in 9VAC5

- 170

- 180 and Section IV B 2 of Agency Policy
Statement No. 2

- 2003 (dated June 20, 2003), the Director of the V alley Regional Office approved and issued the permit on January 30 , 2007 , to be effective that same day.
The permit was approved and issued following the procedural requirements of Article 5 (9VAC5

- 80

- 800 et seq.) of Part II of 9 VAC 5

- 80 (Permits for Stationary Sources)

.

Because the affected units are permanently shut down, DEQ is requesting that EPA
remove th e permit from the SIP. Once EPA has approved this request and DEQ has
notified Transcontinental Gas Pipe Line Corporation (Transco) of this approval, the permit repeal will become effective 30 days later.

### ENCLOSURE 2

CERTIFICATION OF PUBLIC PARTICIPATION ACTIVITIES
AND COMPLIANCE WITH
STATE ADMINISTRATIVE PROCEDURES

As required by 40 CFR 51.102(f) and Section 2.1(b) and (d) through (g) of Appendix V of 40 CFR Part 51, the following information regarding public participation activities and compliance with state administrative procedures is provided.

PUBLIC PARTICIPATION ACTIVITIES

As required by 40 CFR 51.102(a), a public comment period to provide the opportunity to
submit to accept public testimony concerning a proposed revision to the Commonwealth of Virginia State Implementation Plan was held from September 26 to October 26, 2011

.

As requ ired by 40 CFR Part 51.102(a) and (d)(1) and (2), the public was given notice of the public comment period a nd hearing in the Virginia Register of Regulations, along with the location of the proposal for public inspection, on September 26, 2011

. The notice was also p ublished in the Charlottesville Daily Progress

. As required by Section 2.1(g) of Appendix V of 40 CFR Part 51, the hearing was held in accordance with the information found in the public notice, and according to the state's laws. The attached

cop ies of the notice provide the evidence required by Section 2.1(f) of Appendix V of 40
CFR Part 51.

The Regional Administrator for the U.S. Environmental Protection Agency was notified
of the public comment period . Th is notification follow s the requirements of 40 CFR Part 51.102(d).

The complete record of the public comment period , along with any testimony received and responses thereto, is located at the Air Division of the Department of Environmental Quality. The d epartment contact to access this information is the Director, Air Di vision

. A summary of the testimony received and responses thereto is attached.

COMPLIANCE WITH STATE ADMINISTRATIVE PROCEDURES

As required by § 2.2

- 4031 of the Code of Virginia, notice of the public comment period was given to the public in the Virginia Register of Regulations on September 26, 2011 (copy attached).

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## General Notices/Errata

C itizens are invited to discuss the development of an implementation plan (IP) to address water quality impairments in the Mill Creek Watershed. Water quality monitoring indicates that levels of dissolved oxygen, pH, and bacteria in Mill Creek violate Virginia's water quality standards for its designated recreation use. A total maximum daily load (TMDL) study for the dissolved oxygen impairment was approved by EPA in 2009 and is available on DEQ's website at http://www.deq.virginia.gov/tmdl/develop.html.

The IP is developed to provide a clean up plan that will lead to attainment of the water quality standards. Public participation and stakeholder involvement are necessary to develop an effective and reasonable IP. This meeting will present the findings of the TMDL study and the necessary steps in the IP development. A Technical Advisory Committee (TAC) and/or work groups will also be formed in order to provide detailed information during the IP process.

How to comment: The public comment period on the development of the IP will end on October 26, 2011. Oral comments will be accepted and addressed at the public meeting. For additional questions or information or to submit comments, contact Jennifer Howell, TMDL Coordinator, Department of Environmental Quality, 5636 Southern Blvd., Virginia Beach, VA 23262, telephone (757) 518-2111, FAX (757) 518-2009, or email jennifer.howell@deq.virginia.gov. Written comments and inquiries should include the name, address, and telephone number of the person submitting the

comments.

Total Maximum Daily Load Studies in the Cities of Virginia Beach and Chesapeake

The Virginia Department of Environmental Quality (DEQ) will host a public meeting on water quality studies for several creeks located in the Cities of Virginia Beach and Chesapeake on Monday, October 3, 2011.

The meeting will start at 4 p.m. at Creeds Ruritan Barn, Virginia Beach Farm Bureau Office located at 1057 Princess Anne Road, Virginia Beach, Vi rginia. The purpose of the meeting is to provide information and discuss the study with interested local community members and local government.

Redhead Bay at Drum Point, Beggars Bridge Creek, Upper and Lower Hell Point Creek, Muddy Creek, Lower Ashville Bridge Creek, and Middle North Landing River were identified in Virginia's Water Quality Assessment and Integrated Report as impaired for not supporting the primary contact use. The impairment is based on water quality monitoring data reports of sufficient exceedances of Virginia's water quality standard for bacteria.

Pocaty River and Blackwater Creek were identified in Virginia's Water Quality Assessment and Integrated Report as impaired for not supporting the aquatic life use. The impairment is based on water quality monitoring data reports of sufficient violations of Virginia's water quality standard for dissolved oxygen.

Section 303(d) of the Clean Water Act and § 62.1-44.19:7 C of the Code of Virginia, require DEQ to develop total maximum daily loads (TMDLs) for pollutants responsible for each impaired water contained in Virginia's § 303(d) TMDL Priority List and Report a nd subsequent water quality
assessment reports.

During the study, DEQ will develop TMDLs for the impaired waters. A TMDL is the total amount of a pollutant a water body can contain and still meet water quality standards. To restore water quality, pollutant levels have to be reduced to
the TMDL amount.

The public comment period on materials presented at this meeting will extend from October 4, 2011, to November 2, 2011. For additional information or to submit comments, contact Jennifer Howell, Virginia Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Blvd., Virginia Beach, VA 23462, telephone (757) 518-2111, or email jennifer.howell@deq.virginia.gov.
Add itional information is also available on the DEQ website

at www.deq.virginia.gov/tmdl

.

Proposed State Impleme ntation Plan Revision - Facility in Fluvanna County

Notice of action: The Department of Environmental Quality (DEQ) is announcing an opportunity for public comment on a proposed plan regarding air pollution emitted by a facility in Fluvanna County, Virginia. The Commonwealth intends to submit the plan as a revision to the Commonwealth of Virginia state implementation pl an (SIP) in accordance with the requirements of § 110(a) of the federal Clean Air Act. The SIP is the plan developed by the Commonwealth in order to fulfill its responsibilities under the federal Clean Air Act to attain and maintain the ambient air quality standards promulgated by the U.S. Environmental Protection Agency (EPA) under the Act.

Purpose of notice: DEQ is s eeking comments on whether a now-obsolete permit that had established emission limits for

NO X for certain affected units in compliance with the provisions of EPA's Phase II NO X SIP Call Rule should be
removed from the SIP.

Public comment period: September 26, 2011, to October 26,

2011.

Public hearing: Department of Environmental Quality, Valley Regional Office, 4411 Early Road, Conference Room, P.O. Box 3000, Harrisonburg, Virginia, at 6 p.m. on October 26,

2011.

Description of proposal: The Transcontinental Gas Pipe Line Corporation (Registration No. 40789) has permanently shut

Volume 28, Issue 2 Virginia Register of Regulations September 26, 2011

145

## General Notices/Errata

down four large stationary natural gas-fired, spark ignited, reciprocating IC engines that were permitted in order to comply with the provisions of EPA's Phase II NO X SIP Call Rule. Because these units are pe rmanently shut down, DEQ is requesting that EPA remove the permit from the SIP. Once EPA has approved this request and DEQ has notified the owner of this approval, the permit repeal will become effective 30 days later. DEQ is seeking comments on the issue of whether the now-obsolete permit should be removed
from the SIP.

Federal information: This notice is being given to satisfy the public participation requirements of federal regulations (40 CFR 51.102). The proposal will be submitted as a revision to the Commonwealth of Virginia SIP under § 110(a) of the
federal Clean Air Act in accordance with 40 CFR 51.104.

How to comment: DEQ accepts written comments by email, fax, and postal mail. In order to be considered, written
comments must include the full name, address, and telephone number of the person commenting and be received by DEQ by the last day of the comment period. Commenters submitting faxes are encouraged to provide the signed original by postal mail with in one week. Both oral and written comments are accepted at the public hearing. DEQ prefers that comments be provided in writing, along with any supporting documents or exhibits. All testimony, exhibits, and documents received are part of the public record. Please note this proposed plan is being concurrently reviewed by

EPA.

To review proposal: The proposal and any supporting documents are available on the DEQ Air Public Notices for
Plans website at http://www.deq.virginia.gov/air/permitting/planotes.html. The documents may also be obtained by contacting the DEQ representative named below. The public may review the
documents between 8:30 a.m. a nd 4:30 p.m. of each business day until the close of the public comment period at the following locations:

1) Main Street Office, 629 East Main Street, 8th Floor, Richmond, VA, telephone (804) 698-4070, and

2) Valley Regional Office, 4411 Early Road, P.O. Box 3000, Harrisonburg, VA.

Contact Information: Deb Medlin, Department of Environmental Quality, 4411 Early Road, P.O. Box 3000, Harrisonburg, VA 22801, telephone (540) 574-7809, FAX (540) 574-7878, or email debbie.medlin@deq.virginia.gov.

STATE LOTTERY DEPARTMENT

Director's Order

The following Director's Or der of the State Lottery Department was filed with the Virginia Registrar of Regulations on September 1, 2011. The order may be viewed at the State Lottery Departme nt, 900 East Main Street, Richmond, VA, or at the office of the Registrar of Regulations, 910 Capitol Street, 2nd Floor, Richmond, VA.

Director's Order Number Eighty (11)

Virginia Lottery's "New Ye ar Bonus Sweepstakes" Final Rules for Game Operation (effective on August 31, 2011, and
remain in full force and effect unless amended or rescinded by further Director's Order. Upon the effective date, the rules supersede and replace any and all prior Virginia Lottery "New Year Bonus Sweepstakes" game rules.)

DEPARTMENT OF MEDICAL ASSISTANCE
SERVICES

Reimbursement of Incontinence Supplies by
Contract

Notice of Intent to Amend the Virginia State Plan for Medical Assistance (pursuant to § 1902(a)(13) of the Act (USC 1396a(a)(13))

The Virginia Department of Medical Assistance Services (DMAS) hereby affords the public notice of its intention to amend the Virginia State Plan for Medical Assistance to provide for changes to reimbursement for incontinence supplies.

Effective January 1, 2012, the Commonwealth of Virginia plans to reimburse incontinence supplies through a contractor selected by competitive bid as directed by Item 297 VVV of Chapter 874 of the 2010 Acts of Assembly and under the authority of § 1915(a)(1)(B) of the Social Security Act and 42 CFR 431.54(d). This contract is expected to save the agency $1.7 million annually and to improve the delivery of incontinence supplies to Medicai d members who require such
services. Comments can be maile d to or copies of proposed changes can be requested from Carla Russell, Department of Medical Assistance Services, 600 East Broad Street, Richmond, VA 23219.

DMAS will provide copies of its regulatory action to all requesters. Please forward your written request to the Regulatory Coordinator, Department of Medical Assistance Services, 600 East Broad Street, Richmond, VA, 23219.
Further information is also available at www.townhall.virginia.gov

.

C ontact Information: Brian McCormick, Regulatory Supervisor, Department of Me dical Assistance Services, 600 East Broad Street, Suite 1300, Richmond, VA 23219, telephone (804) 371-8856, FAX (804) 786-1680, TDD (800) 343-0634, or email brian.mccormick@dmas.virginia.gov.

Volume 28, Issue 2 Virginia Register of Regulations September 26, 2011

146

### ENCLOSURE 3

RECORD OF HEARING AND SUMMARY OF TESTIMONY

As required by 40 CFR 51.102(e), the complete record of the hearing, along with a list of witnesses and the text of the written presentations or summary of the oral presentations, is located at the Air Division of the Department of Environmental Quality. The Department contact to access this information is the Director, Air Division

.

The state did not receive testimony on this particular revision.

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