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# Technical Support Document

Revisions to the Arkansas State Implemen tation Plan, Regula tion 19 – Chapter 9

Greenhouse Gas Tailoring Ru le Step 3 Provis ions, Plantwide Ap plicability Limits

Submitted January 7, 2014

Received April 25, 2014

March 16, 2015

No material in this submittal package was de signated as Confidential Business Information.

FOR FURTHER INFORMATION CONTACT:

Adina Wiley United States Environmental Prot ection Agency Region 6, Air Permits Section

(6PD-R), 1445 Ross Avenue, Suite 1200, Dallas, Texas 75202-2733, (214) 665-2115.

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# Contents

I. Executive Summary ............................................................................................................ 3

II. Background of State Submittal ........................................................................................... 3

III. Technical Review of State Submittal .................................................................................. 4

A. Part 51, Appendix V Evaluation of the January 7, 2014, SIP Submittal ......................... 5

B. Evaluation of the January 7, 2014, SIP submittal with respect to the federal

requirements for PSD Permit Programs ......................................................................... 10

IV. Conclusion .................................................................................................................... .... 18

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# I. Executive Summary

This Technical Support Document (TSD) reviews one proposed revision to the Arkansas State

Implementation Plan (SIP) concerning the Pr evention of Significant Deterioration (PSD)

Permitting Program for Arkansas and provisions a dopted for the use of pl antwide applicability

limit (PAL) PSD permits for emissions of greenhouse gases (GHGS). The PSD permitting

program applies statewide for areas that are attain ment or unclassifiable for pollutants regulated

by the Clean Air Act (CAA). This review will determine if the PSD program revisions submitted

on January 7, 2014, are consistent with the requ irements of the CAA and EPA’s regulations,

policy and guidance for the permitting of GHG emissions.



# II. Background of State Submittal

The EPA approved revisions to th e Arkansas PSD program on April 2, 2013, to provide the State

of Arkansas the necessary authority to regulate emissions of GHGs consistent with the federal

PSD requirements promulgated by EPA in the GHG Tailoring Rule. See 78 FR 19596. Since that

time, the State of Arkansas has adopted and submitted one revision to the Arkansas PSD

Program pertaining to emissions of GHGs on January 7, 2014. In a letter date d January 7, 2014,

Governor Beebe submitted a revision to the Ar kansas SIP that was adopted by the Arkansas

Pollution Control and Ecology Commission on June 28, 2013. The submitted revision was

effective on July 27, 2013. This SIP revision su bmittal included changes to the Arkansas

Regulation 19, Chapter 9, sections 19.904(A)(1), 19.904(E)(3), and 19.904(G)(1). The EPA has

taken no action to date on the January 7, 2014, SIP submittal.

On March 4, 2015, the EPA also finalized approval of revisions to the Arkansas PSD program to

provide the State of Arkansas th e authority to regulate and perm it emissions of fine particulate

matter and its precursors consistent with fe deral requirements. See 80 FR 11573. Our March 4,

2015, final action did not addr ess the pending January 7, 2014 , submittal regarding the GHG

PSD PAL provisions.

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# III. Technical Review of State Submittal

The January 7, 2014, SIP submittal revising the Arka nsas PSD program to provide for permitting

of GHG emissions through PSD PALs is evaluated for compliance with the relevant

requirements of the Act and Title 40 of the Code of Federal Regulations (40 CFR) part 51 –

Requirements for Preparation, Adoption, and Submittal of Implementation Plans. These

requirements include, but are not limited to the following:

1. §110(a)(2)(C) of the Act which provides:

(C) include a program to provide for the regu lation of the modification and construction

of any stationary source within the areas cove red by the plan as necessary to assure that

national ambient air quality standards are achieved, including a permit program as

required in parts C and D;

2. §110(l) of the Act which provides:

(l) Plan Revisions. – Each revision to an implementation plan submitted by a State under

this chapter shall be adopted by such State after reasonable notice and public hearing.

The Administrator shall not a pprove a revision of a plan if the revision would interfere

with any applicable requirement concerning attainment and reasonable further progress

(as defined in section 171), or any othe r applicable requirement of the chapter.

3. 40 CFR 51.160 – Legally enforceable proced ures. The regulatory text of 40 CFR 51.160

is available on line at Electroni c Code of Federal Regulations:

http://ecfr.gpoaccess .gov/cgi/t/text/textidx?c=ecfr&sid=07e214c52bbfc82a2781e3e 14c7616ca&rgn=div8&view=text&node=4

0:2.0.1.1.2.6.8.1&idno=40

4. 40 CFR 51.161 – Public availability of in formation. The regulatory text of 40 CFR

51.161 is available on line at Electron ic Code of Federal Regulations:

http://ecfr.gpoaccess .gov/cgi/t/text/textidx?c=ecfr&sid=07e214c52bbfc82a2781e3e 14c7616ca&rgn=div8&view=text&node=4

0:2.0.1.1.2.6.8.2&idno=40

6. 40 CFR 51.166 – Prevention of significant deteri oration of air qualit y. The regulatory text

of 40 CFR 51.166 is available on line at El ectronic Code of Federal Regulations:

http://ecfr.gpoaccess .gov/cgi/t/text/textidx?c=ecfr&sid=0dbbe52d31085f8454d6cbf1412e 1557&rgn=div8&view=text&node=4

0:2.0.1.1.2.6.8.7&idno=40.

7. Other applicable requirements of the Act, 40 CFR part 51, and applicable policy and

guidance will be identified in the evaluation where appropriate.

Specifically, the January 7, 2014, submittal is first reviewed for completeness as a SIP submittal

under Part 51, Appendix V. This will be followed by a detailed analysis of the submitted revised

rules with respect to the SIP-approved defi nitions and permitting provisions to determine

consistency with EPA regulations, guidance and whether the submitted provisions interfere with

any applicable CAA provisions. Th is analysis produces a writte n evaluation used to make a

determination of whether or not the Janua ry 7, 2014, GHG PSD PAL SIP revision is in

agreement with the CAA, othe r EPA policies or guidance.

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# A. Part 51, Appendix V Evaluation of the January 7, 2014 SIP Submittal

The criteria for completeness determination ar e found in Appendix V to Part 51 - Criteria for

determining the completeness of plan submissions and are outlined below:

1.0 Purpose: This appendix V sets forth th e minimum criteria for determining whether a

State implementation plan submitted for consid eration by EPA is an official submission

for purposes of review under § 51.103.

1.1 The EPA shall return to the submitting official any plan or revision thereof which fails to

meet the criteria set forth in this appendix V, and request corrective action, identifying

the component(s) absent or insufficient to perform a review of the submitted plan.

1.2 The EPA shall inform the submitting official whether or not a plan submission meets the

requirements of this appendix V within 60 days of EPA's receipt of the submittal, but no

later than 6 months after the date which th e State was required to submit the plan or

revision. If a completeness determination is not made by 6 months from receipt of a

submittal, the submittal shall be deemed complete by operation of law on the date 6

months from receipt. A determination of completeness under this paragraph means that

the submission is an official submission for purposes of §51.103.

The attached checklist outlines the basic crit eria included under 2.1, 2.2, and 2.3 of Appendix V.

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# SIP Completeness Checklist for the January 7, 2014 SIP Submittal

Administrative Materials (2.1)

1. The package is sent with a formal submitta l letter from the Governor or his or her

designee requesting EPA's approval of the revision.

The SIP revision was submitted by a letter fr om Arkansas Governor Mike Beebe dated

January 7, 2014. The SIP submittal was recei ved by EPA Region 6 Air Planning Section

on April 25, 2014.

2. Evidence is included that the State has adopt ed the revision in the State code or body of

regulations, or that the State has issued th e permit, order, consen t agreement (hereafter

document) in final form. This evidence would include the date of adoption or final

issuance and the effective date of revision, if different from adoption/issuance date.

The revisions were adopted by the Arkans as Pollution Control and Ecology Commission

on June 28, 2013, and became effective July 27, 2013.

3. Evidence is included that the State has neces sary legal authority under State law to adopt

and implement the revision, e.g., a citati on of the appropriate State authority.

The Arkansas Pollution Control and Ecology Commission is authorized to adopt the

amendments to APC&EC Regulation Number 19. Pursuant to Arkansas Code Annotated

(A.C.C.) § 8-1-203(b)(1)(A), “Promulgation of rules and re gulations implementing the

substantive statutes charged to the Arkans as Department of Environmental Quality for

administration.”

4. A copy is included of the actual regulation or document submitted for approval and

incorporation by reference into the SIP includin g an indication of the changes made to the

existing approved plan where applicable. Th e submittal shall be a copy of the official

State regulation document signed, stamped, and dated by the appropria te State official

indicating that it is fully enforceable by the State. The effective date of the regulation

document shall, whenever possible, be indicated in the document itself.

The January 7, 2014, submittal included a copy of the official State regulation document,

signed, stamped and dated by Stan Jorgensen, Chairman. The adopted rules were

effective on July 27, 2013.

5. Evidence is included that the State followed all the procedural requirements of its laws

and/or its constitution in the conducting a nd completing the adoption/issuance of the

plan.

The SIP submittal package included a certifi cation demonstrating the SIP submittal was

developed pursuant to 40 CFR 51.104.

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# 6. Evidence is included that public notice was given of the proposed changes consistent

with the procedures approved by EPA, including the date of publication of such notice,

(e.g., notarized or certified copi es of any public notices publis hed in newspapers). (The

notice should be at least 30 days prior to the public hearing(s).

Notices of public hearing and comment peri od for the regulation changes were published

in the Arkansas Democrat Gazette on February 27 and 28, 2013. ADEQ conducted a

public hearing for the regulation changes on April 2, 2013.

Notices of public hearing and comment period for the SIP revision were published in the

Arkansas Democrat Gazette on Septembe r 12, 2013. ADEQ conducted a public hearing

for the SIP revision on October 14, 2013.

7. A certification is included indi cating that public hearing(s) was/were held in accordance

with the information provided in the pub lic notice(s) and the State's laws and

constitution, if applicable.

A responsive summary of the April 2, 2013 and October 14, 2013 public hearings was

included that provided evidence the hearings were conducted pursuant to the Arkansas

Pollution Control and Ecology Commission rulemaking procedures.

8. A compilation of public comments and the State's response is included.

The SIP submittal package did include a compilation of comments and the State’s

response to comments. ADEQ received writt en comments from EPA Region 6. No oral

comments were provided during the public hearings.

Technical Support (2.2)

The State should include the followi ng technical information in its SIP revision request package.

1. Identification of all regu lated pollutants affected by the revision is included.

The January 7, 2014 submittal revises the Arkansas PSD permitting regulations to enable

permitting of GHG emissions statewide through a GHG PSD PAL.

2. Identification of the locations of affected sources including the EPA

attainment/nonattainment design ation of the locations and th e status of the attainment

plan for the affected area(s) is included.

The January 7, 2014, revisions to Regulation 19.904(A)(1) and (G)(1) will apply to major

sources subject to the PSD permitting program statewide.

3. Quantification of the changes in SIP allowa ble emissions from the affected sources is

included. (Examples include estimates of changes in current actual emissions from

affected sources and/or, where appropriate, quantification of changes in actual emissions

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# from affected sources through calculations of the differen ces between certain baseline

levels and allowable emissions anticipat ed if the revisions were approved.)

Quantification of “SIP allowable emissions” is not required for the January 7, 2014,

revisions to the Arkansas PSD permit program. A determina tion of “allowable

emissions” consistent with the PSD perm itting requirements will be addressed on a

permit-by-permit basis.

4. Demonstration is included that the NAAQ S/PSD increments/RFP demonstration and

visibility as applicable would be prot ected if the revision were approved and

implemented.

The January 7, 2014, revision to the Arkans as PSD permit program was adopted and

submitted consistent with th e revisions to the federal GHG PSD permitting requirements.

Adoption of these revised rules will protect the NAAQS/PSD increments/RFP

demonstration and visibility.

5. FOR REDESIGNATIONS:

a. Is there a fully approved maintenance plan for the primary ambient air quality

standards for at least 10 years as requ ired by §175A of the Clean Air Act?

Not applicable.

b. Are contingency measures included?

Not applicable.

6. Modeling information, if app licable, is required to s upport the proposed revision.

Modeling information is not necessary to s upport the analysis and review of the January

7, 2014, submitted regulatory provisions. Mode ling will be provided on a permit-bypermit basis in accordance with th e Arkansas PSD SIP regulations.

7. Evidence is included where necessary, that emission limitations are based on continuous

emission reduction technology (e.g., add-on controls, industria l/process equipment

designs, reformulated materials, etc.).

Evidence that emission limitations are based on continuous emission reduction

technology is not necessary to support the analysis and review of the January 7, 2014,

submitted regulatory provisions. Emission limita tions will be established on a permit-bypermit basis in accordance with the PSD SIP regulations.

8. Evidence is included indicating that a SIP re vision contains emission limitations, work

practice standards, and recordkeeping/reporti ng requirements to ensure stated emission

levels.

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# The January 7, 2014, SIP submittal does not estab lish emission limitations, work practice

standards, and recordkeeping/reporting requi rements. They will be established on a

permit-by-permit basis accord ing to the applicable Arkans as PSD SIP requirements.

9. Compliance/enforcement strategies including how compliance will be determined in

practice (including at what frequency).

The January 7, 2014 SIP submittal does not establish compliance/enforcement strategies.

Each PSD SIP permit will separatel y address compliance/enforcement.

10. As appropriate, special economic and tec hnological jus tifications are included per

applicable EPA policies or an explanation why such justificati ons are not necessary

should be included. For example, requests for alternative RACT may require such

justification.

These justifications are not nece ssary for January 7, 2014 SIP revision.

The January 7, 2014 SIP submittal satisfies the completeness criteria established in 40 CFR

part 51, Appendix V.10B. Evaluation of the January 7, 2014 SIP submittal with respect to thefederal requirements for PSD PermitProgramsThe following table evaluates the adopted changes to Regulation 19, Chapter 9 submitted on January 7, 2014. These regulatorychanges intend to address the PSD permitting provisions of EPA’s July 12, 2012 final rule, the “Prevention of SignificantDeterioration and Title V Greenhouse Gas Tailoring Rule Step 3 and GHG Plantwide Applicability Limits,” for GHG PAL provisions.This table will provide a comparison of the existing SIP-approved language, the revised language and any applicable federalrequirements – along with an analysis.Table 1: Evaluation of the January 7, 2014 SIP SubmittalRegulatory Language EPA’s EvaluationRegulation 19.901 TitleAs approved by the ArkansasPollution Control and Ecology Commission on December 3, 2004,effective December 19, 2004, and submitted to EPA February 3, 2005.Approved by EPA April 12, 2007, effective May 14, 2007EPA-R06-OAR-2005-AR-0001The following rules and regulations of the Arkansas Pollution Control and Ecology Commission,adopted in accordance with the provisions of PartII of the Arkansas Water and Air Pollution ControlAct at A.C.A §§8-4-101 et seq., shall be known as the Prevention of Significant DeteriorationRegulations of the Arkansas Plan of Implementation for Air Pollution Control, hereinafter referred to,respectively, as the"PSD Regulations."No change submitted to the SIP approved PSDpermitting program. Language provided forcontext.Regulation 19.902 PurposesAs approved by the ArkansasPollution Control and Ecology Commission on December 5, 2008,effective January 25, 2009, and submitted to EPA February 17, 2010.Approved by EPA April 2, 2013, effective May 2, 2013 EPA-R06-OAR-2012-0639Promulgation and enforcement of these PSD Regulations is intended to further the purposes of the Planand the Regulations of the Plan, including, but not limited to, acceptance of delegation by the EPA ofauthority for enforcement of regulations governing the prevention of significant deterioration of airquality and regulations governing the protection of visibility in mandatory Class I federal areas.No change submitted to the SIP approved PSDpermitting program. Language provided forcontext.Regulation 19.903 DefinitionsAs approved by the ArkansasPollution Control and Ecology Commission on December 5, 2008,effective January 25, 2009, and submitted to EPA February 17, 2010.Approved by EPA April 2, 2013, effective May 2, 2013 EPA-R06-OAR-2012-0639No change submitted to the SIP approved PSDpermitting program. Language provided forcontext.11Table 1: Evaluation of the January 7, 2014 SIP SubmittalRegulatory Language EPA’s EvaluationA.“Advance notification” (of a permit application) means any written communication whichestablishes the applicant's intention to construct, and which provides the Department with sufficientinformation to determine that the proposed source may constitute a major new source or majormodification, and that such source may affect anymandatory Class I federal area, including, but notlimited to, submittal of a draft or partial permit application, a PSD monitoring plan, or a sufficientlydetailed letter. "Advance notification" does not include general inquiries about the Department'sregulations.B.All other terms used herein shall have the same meaning as set forth in Chapter 2 of Regulation 19or in 40 CFR 52.21(b) [PSD] and 40 CFR 51.301[Protection of Visibility], as of November 29,20005, all as in effect upon the latest date of amendment of this supplement, unless manifestlyinconsistent with the context in which they areused. Wherever there is a difference between thedefinitions in Chapter 2 of Regulation 19 and those listed in 40 CFR 52.21(b) and 40 CFR 51.301,the federal definitions as listed in 40 CFR 52.21(b) and 40 CFR 51.301 as of November 29, 2005,shall apply.C.The definition for “routine maintenance, repair and replacement” in 40 CFR 52.21(b)(2)(iii)(a) is notincorporated.Regulation 19.904 Adoption of RegulationsNo change submitted to the SIP approved PSDpermitting program. Language provided forcontext.As approved by the Arkansas Pollution Controland Ecology Commission on October 26, 2012,effective November 18, 2012, and submitted toEPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596)effective May 2, 2013EPA-R06-OAR-2012-0639A.Except where manifestly inconsistent with theprovisions of the Clean Air Act, as amended,or with federal regulations adopted pursuantthereto, and as amended specifically herein byparagraphs (B), (C), (D), (E), and (F) of Reg.19.904, the Arkansas Department ofEnvironmental Quality shall have thoseresponsibilities and that authority, withreference to the State of Arkansas, granted tothe Administrator of the EPA under 40 CFR52.21 (a)(2) through (bb), as in effect onNovember 29, 2005, which are herebyAs approved by the Arkansas Pollution Controland Ecology Commission on June 28, 2013, andsubmitted to EPA January 7, 2014.A.Except where manifestly inconsistent with theprovisions of the Clean Air Act, as amended,or with federal regulations adopted pursuantthereto, and as amended specifically herein byparagraphs (B), (C), (D), (E), and (F), and (G)of Reg. 19.904, the Arkansas Department ofEnvironmental Quality shall have thoseresponsibilities and that authority, withreference to the State of Arkansas, granted tothe Administrator of the EPA under 40 CFR52.21 (a)(2) through (bb), as in effect onNovember 29, 2005, which are herebyincorporated herein byreference, with theexception of:The revised rules adopted on June 28, 2013, andsubmitted on January 7, 2014, for Regulation19.904(A)(1) incorporate byreference the federalPSD provisions for GHG PSD PAL permitting at40 CFR 52.21(aa) as effective on August 13, 2012.The submitted revisions do not incorporate byreference the definition of “subject to regulation”at 40 CFR 52.21(b)(49). The Arkansas SIP atRegulation 19.904(G) replaces 52.21(b)(49).EPA promulgated the GHG PSD PAL provisionson July 12, 2012, effective on August 13, 2012.See 77 FR 41501. ADEQ has correctlyincorporated by reference the GHG PSD PALprovisions.Note that the ADEQ has incorporated by referenceas of a date certain, August 13, 2012. If the EPA12Table 1: Evaluation of the January 7, 2014 SIP SubmittalRegulatory Language EPA’s Evaluationincorporated herein byreference, with theexception of 40 CFR 52.21(b)(55-58), 40 CFR52.21(i)(9), and 40 CFR 52.21(cc), which arenot incorporated. In the absence of a specificimposition of responsibility or grant ofauthority, the Department shall be deemed tohave that responsibility and authoritynecessary to attain the purposes of the Plan,these PSD Regulations, and the applicablefederal regulations, as incorporated herein byreference.1.40 C.F.R. § 52.21(aa), which isincorporated by reference as in effect onAugust 13, 2012, except for instances inthe sections of 40 C.F.R. § 52.21(aa)where 40 C.F.R. § 52.21(b)(49) isreferenced. In those instances, paragraph(G) of Reg. 19.904 shall apply; and2.40 CFR 52.21(b)(55-58), 40 CFR52.21(i)(9), and 40 CFR 52.21(cc), whichare not incorporated.In the absence of a specific imposition ofresponsibility or grant of authority, theDepartment shall be deemed to have thatresponsibility and authority necessary to attainthe purposes of the Plan, these PSDRegulations, and the applicable federalregulations, as incorporated herein byreference.revises the GHG PSD PAL provisions at 40 CFR52.21(aa) in the future, the ADEQ will need toadopt and submit a SIP revision to maintainconsistency with federal requirements.The revisions submitted to Regulation19.904(A)(1) are approvable as an incorporationby reference of federal permitting requirements ineffect on August 13, 2012.The revision submitted to Regulation 19.904(A)(2)renumbers an existing SIP-approved provision.This change is non-substantive and approvable.As approved by the Arkansas Pollution Control and Ecology Commission on October 26, 2012, effectiveNovember 18, 2012, and submitted to EPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596) effective May 2, 2013EPA-R06-OAR-2012-0639B.Exclusions from the consumption of increments,as provided in 40 CFR 51.166(f)(1)(iii) as ofNovember 29, 2005, shall be effective immediately. Submission of this Plan under the Governor'ssignature constitutes a request by the Governor for this exclusion.No change submitted to the SIP approved PSDpermitting program. Language provided forcontext.As approved by the Arkansas Pollution Control and Ecology Commission on October 26, 2012, effectiveNovember 18, 2012, and submitted to EPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596) effective May 2, 2013EPA-R06-OAR-2012-0639C.In addition to the requirements of 40 CFR 52.21(o) as of November 29, 2005, the followingrequirements [designated as Reg. 19.904(C)(1),(2),(3) and (4)] shall also apply:1.Where air quality impact analyses required underthis part indicate that the issuance of a permitfor any major stationary source or for any major modification would result in the consumptionof more than fifty percent (50%) of any available annual increment or eighty percent (80%) ofNo change submitted to the SIP approved PSDpermitting program. Language provided forcontext.13Table 1: Evaluation of the January 7, 2014 SIP SubmittalRegulatory Language EPA’s Evaluationany short term increment, the person applying for such a permit shall submit to the Departmentan assessment of the following factors:a)Effects that the proposed consumption would have upon the industrial and economicdevelopment within the areaof the proposed source; andb)Alternatives to such consumption, including alternative siting of the proposed source orportions thereof.2.The assessment required under subparagraph (4) above shall be made part of the application forpermit and shall be made available for public inspection as provided in 40 CFR 52.21(q) as ofNovember 29, 2005.3.The assessment required under subparagraph (4) above shall be in detail commensurate with thedegree of proposed increment consumption, both in terms of the percentage of incrementconsumed and the area affected.4.The assessment required under subparagraph(4) above may be made effective where aproposed source would cause an increment consumption less than that specified in saidsubparagraph if the Director finds that unusualcircumstances exist in the area of the proposedsource which warrant such an assessment. The Director shall notify the applicant in writing ofthose circumstances which warrant said assessment. The Commission may rescind or modifythe Director's action, upon a showing by the applicant that the circumstances alleged by theDirector either do not exist or donot warrant the aforecited assessment.As approved by the Arkansas Pollution Control and Ecology Commission on October 26, 2012, effectiveNovember 18, 2012, and submitted to EPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596) effective May 2, 2013EPA-R06-OAR-2012-0639D.In addition to the requirements of 40 CFR 52.21(p)(1) as of November 29, 2005, the followingrequirements shall also apply:Impacts on mandatory Class I federal areas include impacts on visibility. The preliminarydetermination that a source may affect air quality or visibility in a mandatory Class I federal areashall be made by the Department, based on screening criteria agreed upon by the Department andthe Federal Land Manager.No change submitted to the SIP approved PSDpermitting program. Language provided forcontext.As approved by the Arkansas Pollution Controland Ecology Commission on October 26, 2012,effective November 18, 2012, and submitted toEPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596)effective May 2, 2013EPA-R06-OAR-2012-0639As approved by the Arkansas Pollution Controland Ecology Commission on June 28, 2013, andsubmitted to EPA January 7, 2014.E.In all instances wherein the aforesaid 40 CFR51.301 and 40 CFR 52.21 refer to theAdministrator or the Environmental ProtectionThe revision submitted to Regulation 19.904(E)(3)updates a reference to the EPA approved PSD airquality models at 40 CFR 52.21(l)(2). The adoptedprovision now correctly references the federalrequirements. This revision is approvable.14Table 1: Evaluation of the January 7, 2014 SIP SubmittalRegulatory Language EPA’s EvaluationE.In all instances wherein the aforesaid 40 CFR51.301 and 40 CFR 52.21 refer to theAdministrator or the Environmental ProtectionAgency, the reference, for the purposes ofparagraph (A) of Reg. 19.904, shall be deemedto mean the Arkansas Department ofEnvironmental Quality, unless the contextplainly dictates otherwise, except in thefollowing sections:1.Exclusion from increment consumption:40 CFR 52.21(f)(1)(v), (f)(3), and(f)(4)(I);2.Redesignation: 40 CFR 52.21(g)(1),(g)(2), (g)(4), (g)(5), and (g)(6);3.Air quality models: 40 CFR 52.21(2)Agency, the reference, for the purposes ofparagraph (A) of Reg. 19.904, shall be deemedto mean the Arkansas Department ofEnvironmental Quality, unless the contextplainly dictates otherwise, except in thefollowing sections:1.Exclusion from increment consumption:40 CFR 52.21(f)(1)(v), (f)(3), and(f)(4)(I);2.Redesignation: 40 CFR 52.21(g)(1),(g)(2), (g)(4), (g)(5), and (g)(6);3.Air quality models: 40 CFR 52.21(l)(2)As approved by the Arkansas Pollution Control and Ecology Commission on October 26, 2012, effectiveNovember 18, 2012, and submitted to EPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596) effective May 2, 2013EPA-R06-OAR-2012-0639F.Redesignation of air quality areas in Arkansas shall comply with Arkansas Code Annotated 1987Section 8-3-101 et seq.No change submitted to the SIP approved PSDpermitting program. Language provided forcontext.As approved by the Arkansas Pollution Control and Ecology Commission on October 26, 2012, effectiveNovember 18, 2012, and submitted to EPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596) effective May 2, 2013EPA-R06-OAR-2012-0639G.For the purpose of the regulation of GHGs, only the standards and requirements promulgated byEPA as of June 3, 2010, related to the permitting of GHG emissions shall apply to the requirementsof 40 CFR 52.21, as of November 29, 2005, incorporated by reference at Reg. 19.904(A). Thefollowing definitions and requirements shall also apply:No change submitted to the SIP approved PSDpermitting program. Language provided forcontext.As approved by the Arkansas Pollution Controland Ecology Commission on October 26, 2012,effective November 18, 2012, and submitted toEPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596)effective May 2, 2013As approved by the Arkansas Pollution Controland Ecology Commission on June 28, 2013, andsubmitted to EPA January 7, 2014.1.“Greenhouse gases” (GHGs) means theair pollutant defined as the aggregateThe new provisions submitted at Regulation19.904(G)(1) revises the SIP-approved definitionof GHGs to specify that GHGs are not subject toregulation under the Arkansas PSD SIP if thestationary source complies with the GHG PSDPAL provisions at 40 CFR 52.21(aa)(1) – (aa)(15),15Table 1: Evaluation of the January 7, 2014 SIP SubmittalRegulatory Language EPA’s EvaluationEPA-R06-OAR-2012-0639Regulation 19.904(G)...1.“Greenhouse gases” (GHGs) means theair pollutant defined as the aggregategroup of six greenhouse gases: carbondioxide, nitrous oxide, methane,hydrofluorocarbons, perfluorocarbons,and sulfur hexafluoride, shall not besubject to regulation except as provided inReg. 19.904(G)(4) throughReg.19.904(G)(5).group of six greenhouse gases: carbondioxide, nitrous oxide, methane,hydrofluorocarbons, perfluorocarbons,and sulfur hexafluoride, and shall not besubject to regulation except as provided inReg. 19.904(G)(4) throughReg.19.904(G)(5), and shall not besubject to regulation if the stationarysource:a)Maintains its total source-wideemissions below the GHG plantwideapplicability limitations (hereinafter“PAL” level);b)Meets the requirements in 40 § CFR52.21(aa)(1) through 40 CFR §52.21(aa)(15) as outlined in Reg.19.904(A)(1); andc)Complies with the PAL permitcontaining the GHG PAL .maintains the total emissions below the GHG PSDPAL level and complies with the GHG PALpermit terms.These revisions are consistent with the GHG PSDPAL permitting provisions promulgated by theEPA on July 12, 2012 at 40 CFR 52.21(b)(49)(i).See 77 FR 41051, 41702.The revisions submitted to Regulation 19.904(G)(1) are approvable as consistent with federalrequirements.As approved by the Arkansas Pollution Control and Ecology Commission on October 26, 2012, effectiveNovember 18, 2012, and submitted to EPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596) effective May 2, 2013EPA-R06-OAR-2012-0639Regulation 19.904(G)...2.For purposes of Reg. 19.904(G)(3) through Reg. 19.904(G)(5):a)The term tons per year (tpy) “CO2equivalent emissions” (CO2e) shall represent an amountof GHGs emitted, and shall be computed as follows:i.Multiplying the mass amount of emissions in tpy, for each of the six greenhouse gasesin the pollutant GHGs, by each gas’s associated global warming potential published atTable A - 1 to subpart A of 40 CFR part 98 - Global Warming Potentials (as ofOctober 30, 2009); andii.Sum the resultant values from Reg. 19.904(G)(2)(a)(i) for each gas to compute a tpyCO2e.b)For purposes of this definition, prior to July 21, 2014, the mass of the greenhouse gascarbon dioxide shall not include carbon dioxide emissions resulting from the combustion ordecomposition of non-fossilized and biodegradable organic material originating fromNo change submitted to the SIP approved PSDpermitting program. Language provided forcontext.16Table 1: Evaluation of the January 7, 2014 SIP SubmittalRegulatory Language EPA’s Evaluationplants, animals, or microorganisms (including products, by-products, residues and wastefrom agriculture, forestry and related industries as well as the non-fossilized andbiodegradable organic fractions of industrial and municipal wastes, including gases andliquids recovered from the decomposition of nonfossilized and biodegradable organicmaterial).As approved by the Arkansas Pollution Control and Ecology Commission on October 26, 2012, effectiveNovember 18, 2012, and submitted to EPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596) effective May 2, 2013EPA-R06-OAR-2012-0639Regulation 19.904(G)...3.The term “emissions increase” as used in Reg. 19.904(G)(4) through Reg. 19.904(G)(5) shallmean that both a significant emissions increase(as calculated using the procedures in 40 CFR52.21(a)(2)(iv), as of November 29, 2005), and a significant net emissions increase (as definedin 40 CFR 52.21(b)(3), as of November 29, 2005, and 40 CFR 52.21(b)(23), as of November29, 2005), occur. For the pollutant GHGs, an emissions increase shall be based on tpy CO2e,and shall be calculated assuming the pollutant GHGs is a regulated NSR pollutant, and“significant” is defined as 75,000 tpy CO2e instead of applying the value in 40 CFR52.21(b)(23)(ii), as of November 29, 2005.No change submitted to the SIP approved PSDpermitting program. Language provided forcontext.As approved by the Arkansas Pollution Control and Ecology Commission on October 26, 2012, effectiveNovember 18, 2012, and submitted to EPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596) effective May 2, 2013EPA-R06-OAR-2012-0639Regulation 19.904(G)...4.Beginning January 2, 2011, the pollutantGHGs is subject to regulation if:a)The stationary source is a new major stationarysource for a regulated NSR pollutant that isnot GHGs, and also will emit or will have the potential to emit GHGsat 75,000 tpy CO2eor more; orb)The stationary source is an existing major stationary source for a regulated NSR pollutantthat is not GHGs, and also will have an emissions increase of a regulated NSR pollutant,and an emissions increase ofGHGs of 75,000 tpy CO2e or more.No change submitted to the SIP approved PSDpermitting program. Language provided forcontext.As approved by the Arkansas Pollution Control and Ecology Commission on October 26, 2012, effectiveNovember 18, 2012, and submitted to EPA November 6, 2012.Approved by EPA April 2, 2013 (78 FR 19596) effective May 2, 2013EPA-R06-OAR-2012-0639No change submitted to the SIP approved PSDpermitting program. Language provided forcontext.17Table 1: Evaluation of the January 7, 2014 SIP SubmittalRegulatory Language EPA’s EvaluationRegulation 19.904(G)...5.Beginning July 1, 2011, in addition to the provisions in Reg. 19.904(G)(4) of this section, thepollutant GHGs shall also be subject to regulation:a)At a new stationary source that will emitor have the potential to emit 100,000 tpy CO2e ormore; orb)At an existing stationary source that emits or has the potential to emit 100,000 tpy CO2e ormore, when such stationary source undertakes a physical change or change in the method ofoperation that will result in an emissions increase of 75,000 tpy CO2e or more.

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# IV. Conclusion

The technical analysis provided in the preceding s ections has compared the applicable sections

of the CAA and 40 CFR Parts 51 and 52 to th e January 7, 2014, proposed revision to the

Arkansas SIP for PSD permitting. This analysis found that the June 28, 2013, adoption of the

substantive revised regulations to adopt th e GHG PAL provisions at Regulations 19.904(A)(1)

and (G)(1) submitted on January 7, 2014, are consis tent with the CAA and 40 CFR Part 52.21, as

applicable. Further, these revisions are n ecessary to implement the PSD GHG PAL permitting

provisions consistent with federal PSD regulatio ns. The EPA also finds that the revision to

Regulation 19.904(E)(3) to update the reference to the federal air quality models for PSD

purposes at 40 CFR 52.21(l)(2) is appropriate and consistent with federal PSD requirements. As

such, it is recommended that the EPA propose approval of the revisions to Regulation

19.904(A)(1), (E)(3) and (G)(1) submitted on January 7, 2014.