# DEiLl

STEVEN E. CHESTER

DIRECTOR



# REVISION TO

STATE OF MICHIGAN

STATE IMPLEMENTATION PLAN

for

Part 2. Air Use Approval.

R 336.1201, R 336.1202, R 336.1205, R 336.1207, R 336.1219, R 336.1240, R 336.1241, R 336.1278, R 336.1281, R 336.1284, R 336.1285, R 336.1288, and R 336.1299 ofthe Michigan Administrative Code are amended, and
R 336.1220 is rescinded

March 23, 2009

Preparedby: Michigan Department ofEnvironmental Quality AirQualityDivision P.0. Box 30260 Lansing, Ml 48909 INTERNET: http:llwww.michigan.gov/deqair JENNIFER M. GRANHOLM

GOVERNORTABLE OF CONTENTS

Item Page

COMPLETENESS REVIEW

COMPLETENESS REVIEW CHECKLIST

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

ATTACHMENTS

ATTACHMENT A

ATTACHMENT 8

ATTACHMENT C

ATTACHMENT D Final form ofadopted rule(s), Part 2, effective June 20, 2008.

Certificate ofAdoption from the Director ofthe Michigan Department of Environmental Quality (MDEQ), Steven 

### E. Chester, dated May 21, 2008.

Letter from MDEQ Director Steven E. Chester to State Office ofAdministrative Hearings and Rules (SOAHR) forwarding Certificate ofAdoption, dated May 23, 2008.

Delegation of authority from Governor Jennifer M. Granholm, letter dated February 22, 2003.

Certificate ofapproval from Legislative Service Bureau, dated December 5, 2007.

Certification of legality and authority from SOAHR, dated December 6, 2007.

Letter from SOAHR submitting rules sentto the Joint Committee on Administrative Rules, dated December 7, 2007.

ATTACHMENT E Secretary of State's notice offiling Administrative Rules, dated June 20, 2008.

ATTACHMENT F Agency Report, dated January 31,2007.

ATTACHMENT G Opening statement for December 20, 2006, public hearing.

ATTACHMENT H Newspaper affidavits dated November 16, 2006. Michigan Register notice dated November 15, 2006.MICHIGAN STATEIMPLEMENTATION PLAN



### COMPLETENESS REVIEW

Administrative Materials

1. A formal letter of submittal from the governor or designee requesting EPA approval ofthe revision.

Cover letter dated March 19, 2009, from Steven E. Chester, Director of the Michigan Department of Environmental Quality (MDEQ) to Mr. Bharat Mathur, Acting Regional Administrator, EPA Region 5, requesting approval of SIP revision.

2. Evidence that the state has adopted the revision in the state code or body of regulations; or issued the permit, order, or consent agreement (hereafter document) in final form. That evidence should include the date of adoption

or final issuance as well as the effective date of the revision if different from the adoption/issuance date.

The final form of the adopted rule in Part 2, which went into effect on June 20, 2008, is included in Attachment A.



### The Certificate of Adoption dated May 21, 2008, signed by MDEQ Director Steven E. Chester, is included in Attachment B.

A letter dated May 23, 2008, from MDEQ Director Steven E. Chester to the State Office of Administrative Hearings and Rules (SOAHR) is included in Attachment B.

3. Evidence that the state has the necessary legal authority under state law to adopt and implementthe revision.

A letter dated February 22, 2003, from Governor Jennifer M. Granholm to EPA Region 5 delegates authority to the Director of MDEQ to make any submittal, request, or application under the Clean Air Act (Attachment C).

The certification dated December 6, 2007, from SOAHR certifies that the rules

are within the scope ofthe authority ofthe MDEQ (Attachment D).

4. A copy of the actual regulation or document submitted for approval and incorporation by reference into the SIP, including indication ofthe changes made to the existing approved SIP, where applicable. The submittal should be a copy of the official state regulation/document signed, stamped, and dated by the appropriate state official indicating that it is fully enforceable by the state. The effective date of the regulation/document should, whenever possible, be indicated in the document itself.

The Secretary of State's Notice of Filing Administrative Rules for Part 2, dated June 20, 2008, is included in Attachment E.MICHIGAN STATEIMPLEMENTATION PLAN



### The final form of the adopted rules, Part 2, with the effective date of June 20, 2008, is included in Attachment A.

A copy of the proposed Part 2 rules showing changes from the existing rules is included in Attachment H.

5. Evidence that the state followed all ofthe requirements of its administrative procedures act (or equivalent) in conducting and completing the adoption/issuance ofthe revision.

The SOAHR certification, dated December 6, 2007, certifies that the rules are in conformity with the requirements of the Administrative Procedures Act, MCL 24.201 et seq. (Attachment D).

6. Evidence that public notice was given of the proposed change consistent with procedures approved by EPA, including date of publication of such notice.

The affidavits of publication from four newspapers that published the notice of public hearing on November 16, 2006, and the notice that was published in the Michigan Register on November 15, 2006, are included in Attachment H.

7. Certification that public hearings were held in accordance with the information provided in the public notice and the state's administrative procedures act (or equivalent), if applicable.

The December 6, 2007 certification from the SOAHR certifies that the rules have been promulgated in conformity with the requirements of the Administrative Procedures Act (Attachment D).

The Opening Statement for the December 20, 2006, public hearing includes information on the notice of public hearing and instructions on how the hearing

was to be conducted (Attachment G).

8. Compilation of public comments and state's response thereto.

Summaries of the comments received and the MDEQ responses are in Section 11 of the Agency Report (Attachment F).

Technical support

1. Justification of rules revisions.

The "Purpose ofthe Proposed Rules and Background," Section 2, and "Summary of Proposed Rules," Section 3, of the Agency Report provides the purpose and justification ofthe proposed rules (Attachment F).MICHIGAN STATEIMPLEMENTATION PLANMICHIGAN STATE IMPLEMENTATION PLAN

DEPARTMENT OF ENVIRONMENTAL QUALITY

AIR QUALITY DIVISION

AIR POLLUTION CONTROL

Filed with the Secretary of State on June 20, 2008. These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, 45a(6), or 48 of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

(By authority conferred on the director ofthe department ofenvironmental quality by sections 5503, 5505, 5506, and 5512 of 1994 PA 451, MCL 324.5503, 324,5505, 324.5506, and 324.5512, and Executive Reorganization Order No. 1995-18, MCL 324.99903)

R336.1201, R336.1202, R336.1205, R336.1207, R336.1211, R336.1213, R 336.1214, R 336.1214a, R 336.1219, R 336.1240, R 336.1241, R 336.1278, R 336.1281, R 336.1284, R 336.1285, R 336.1288, and R 336.1299 ofthe Michigan Administrative Code are amended; R 336.1277 is added; and R 336.1220 is rescinded as follows:

PART 2. AIR USE APPROVAL

R 336.1201 Permits to install.

Rule 201. (1) Except as allowed in R 336.1202, R 336.1277 toR 336.1290, or R 336.2823(15) a person shall not install, construct, reconstruct, relocate, or modify any process or process equipment, including control equipment pertaining thereto, which may emit any ofthe following, unless a permit to install which authorizes such action is issued by the department:

(a) Any air pollutant regulated by title I ofthe clean air act and its associated rules, including 40 C.F.R. §§51.165 and 51.166, adopted by reference in R 336.1299.

(b) Any air contaminant. A person who plans to install, construct, reconstruct, relocate, or modify any such process or process equipment shall apply to the departmentfor a permit to install on
an application form approved by the department and shall provide the information required in R 336.1203.

(2) The department may issue a permit to install for any ofthe following reasons: (a) To authorize a person to install, construct, reconstruct, relocate, or modify a process or process equipment pursuant to subrule (1 )(a) ofthis rule.

(b) To establish limits on potential to emit. The limits shall comply with the provisions of R 336.1205(1)(a).

(c) To consolidate terms and conditions from existing permits to install within a renewable operating permit pursuant toR 336.1214a.

1118/2007MICHIGAN STATEIMPLEMENTATION PLAN

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### (d) To authorize a person to install, construct, reconstruct, relocate, or modify process or process equipment solely pursuant to subrule (1)(b) ofthis rule or to consolidate state-only enforceable conditions within a renewable operating permit when the renewable operating permit is issued pursuant toR 336.1214. This permit may establish terms and conditions that are legally enforceable solely pursuant to R336.1224 to R 336.1232, R 336.1901, or other regulations that are not federally enforceable. Each condition in a permit issued pursuant to this subrule shall be identified as state-only enforceable.

(3) A permitto install may be approved subject to any condition, specified in writing, that is reasonably necessary to assure compliance with all applicable requirements.

(4) If a person decides not to install, construct, reconstruct, relocate, or modify the process or process equipment as authorized by a permit to install, then the person,
or the authorized agent pursuant toR 336.1204, shall notify the department, in writing, and upon receipt ofthe notification by the department, the permit to install shall become void. Ifthe installation, reconstruction, or relocation ofthe equipment, for which a permit has been issued, has not commenced within, or has been interrupted for, 18 months, then the permit to install shall become void, unless otherwise authorized by the department as a condition ofthe permit to install.

(5) Upon issuance ofa permit to install, the emissions from the process or process equipment allowed by the permit to install shall be included in the potential to emit of the stationary source. Upon the physical removal ofthe process or process equipment, or upon a determination by the department that the process or process equipment has been permanently shut down, the permit to install shall become void and the emissions allowed by the permit to install shall no longer be included in the potential to emit ofthe stationary source.

(6) Except as provided in subrule (8) ofthis rule and R 336.1216, operation ofthe process or process equipment is allowed by the permit to install. The department may void a permit to install upon any of the following actions:

(a) A new permitto install authorizing the action is approved by the department in accordance with subrule (2)(a), (b), or (d) ofthis rule, and the new permit to install renders all portions ofthe old permit obsolete.

(b) All terms and conditions ofthe permit to install are incorporated into a renewable operating permit, in accordance with the provisions of R 336.1212(5) and R 336.1213, and a source-wide permit to install is issued pursuant toR 336.1214a.

(c) All of the emission units, processes, or process equipment covered by the permit to install are physically removed from the stationary source or the department makes a determination that the emission units, processes, or process equipment covered by the permit to install have been permanently shut down.

(7) The department may require 1 or both ofthe following notification requirements

as a condition ofa permit to install:

(a) Not more than 30 days after completion ofthe installation, construction, reconstruction, relocation, or modification authorized by the permit to install, unless a different period is specified in the permit to install, the person to whom the permit to install was issued, or the authorized agent pursuant to R 336.1204, shall notify the department, in writing, ofthe completion ofthe activity. Completion oftheMICHIGAN STATEIMPLEMENTATION PLAN

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installation, construction, reconstruction, relocation, or modification is considered to

occur not laterthan commencement oftrial operation ofthe process or process equipment.

(b) Within 12 months after completion ofthe installation, construction, reconstruction, relocation, or modification authorized by the permit to install, or 18 months after the effective date ofthis rule, whichever is later, unless a different period is specified in the permit to install, the person to whom the permit to install

was issued, orthe authorized agent pursuant to R 336.1204, shall notify the department, in writing, ofthe status ofcompliance ofthe process or process equipment with the terms and conditions ofthe permit to install. The notification shall include all ofthe following:

(i) The results ofall testing, monitoring, and recordkeeping performed by the stationary source to determine the actual emissions from the process or process equipment and to demonstrate compliance with the terms and conditions ofthe permit to install.

(ii) A schedule ofcompliance for the process or process equipment. (iii) A statement, signed by the person owning or operating the process or process equipment, that, based on information and beliefformed after reasonable inquiry, the statements and information in the notification are true, accurate, and complete.

(8) Ifevidence indicates that the process or process equipment is not performing in accordance with the terms and conditions ofthe permitto install, the department, after notice and opportunity for a hearing, may revoke the permit to install consistent with section 5510 ofthe act. Upon revocation ofthe permit to install, operation of the process or process equipment shall be terminated. Revocation of a permit to install is without prejudice and a person may file a new application for a permit to install that addresses the reasons for the revocation.

R 336.1202 Waivers ofapproval.

Rule 202. (1) Ifthe requirement for approval ofa permit to install before construction will create an undue hardship to the applicant, the applicant may request a waiver to proceed with construction from the department. The application for awaiver shall be in writing, shall explain the circumstances that will cause the undue hardship, and shall be signed by the owner or his or her authorized agent. The application shall be acted upon by the department within 30 days. Ifa waiver is granted, the applicant shall submit pertinent plans and specifications for approval as
soon as is reasonably practical. The applicant, after a waiver is granted, shall proceed with the construction at his or her own risk; however, operation ofthe equipment shall not be authorized until the application for a permit to install has been approved by the department. After construction, modification, relocation, or installation has begun or been completed, ifthe plans, specifications, and completed installations do not meet department approval, then the application for a permit to install shall be denied, unless the alterations required to effect approval are made within a reasonable time as specified by the department.

(2) The provisions ofsubrule (1) ofthis rule shall not apply to any ofthe following: (a) Any activity that is subject to R 336.2802, prevention ofsignificant deterioration regulations, or R 336.2902, nonattainment new source review regulations.MICHIGAN STATEIMPLEMENTATION PLAN



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(b) Construction or reconstruction ofa major source of hazardous air pollutants as defined in and subject to, national emission standards for hazardous air pollutants for source categories.

(c) Construction or modification as defined in and subject to 40 C.F.R. part 61, national emission standards for hazardous air pollutants, adopted by reference in R 336.1299.

Forthe purpose ofthis subrule, "activity" means the concurrent and related installation, construction, reconstruction, relocation, or modification ofany process or process equipment.

R 336.1205 Permit to install; approval.

Rule 205. (1) The department shall not approve a permit to install for a stationary
source, process, or process equipment that meets the definition of a major stationary

source or major modification under any part ofthese rules unless the requirements specified in subdivisions (a) and (b) ofthis subrule have been met. In addition, except as provided in subrule (3) ofthis rule, the department shall not approve a permit to install that includes limitations which restrict the potential to emit from a stationary source, process, or process equipment to a quantity below that which would constitute a major source or major modification under any part of these rules unless both ofthe following requirements have been met:

(a) The permit to install contains emission limits that are enforceable as a practical matter. An emission limit restricts the amount ofan air contaminant that may be emitted over some time period. The time period shall be set in accordance with the applicable requirements and, unless a differenttime period is provided by the applicable requirement, should generally not be more than 1 month, unless a longer time period is approved by the department. A longer time period may be used if it is

a rolling time period, but shall not be more than an annual time period rolled on a monthly basis. Ifthe emission limit does not reflect the maximum emissions ofthe process or process equipment operating at full design capacity without air pollution control equipment, then the permit shall contain 1 ofthe following:

(i) A production limit which restricts the amount offinal product that may be produced over the same time period used in the emission limit and which comports with the true design and intended operation ofthe process or process equipment.

(ii) An operational limit which restricts the way the process or process equipment is operated and which comports with the true design and intended operation of the process or process equipment. An operational limit may include conditions specifying any ofthe following:

(A) The installation, operation, and maintenance ofair pollution control equipment. (B) The hours ofoperation ofthe stationary source, process, or process equipment, ifthe hours are less than continuous.

(C) The amount ortype of raw materials used by the stationary source, process, or process equipment.

(D) The amount ortype offuel combusted by the stationary source, process, or process equipment.MICHIGAN STATEIMPLEMENTATION PLAN



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(E) The installation, operation, and maintenance of a continuous gas flow meter and a continuous emission monitor for the air contaminant for which an enforceable emission limit is required.

(iii) For volatile organic compound surface coating operations where an add-on control is not employed, an emission or usage limit coupled with a requirement to calculate or demonstrate daily compliance.

(b) A draft permit has been subjected to the public participation process specified in section 5511 (3) ofthe act. The department shall provide a copy ofthe draft permit to the United States environmental protection agencyfor review and comment at or before the start ofthe public comment period. The department shall also provide a copy ofeach final permit to install issued pursuant to this rule to the United States environmental protection agency.

(2) The department shall not approve a permit to install to construct a major source
or reconstruct a major source under any applicable requirement ofsection 112 ofthe clean air act unless the requirements ofsubrule (1 )(a) and (b) ofthis rule have been met. In addition, except as provided in subrule (3) ofthis rule, the department shall not approve a permit to install that includes limitations which restrict the potential to emit of a stationary source, process, or process equipment to a quantity below that which would constitute a major source or modification under any applicable requirement ofsection 112 ofthe clean air act unless the requirements ofsubrule (1)(a) and (b) ofthis rule have been met.

(3) The department may approve a permit to install that includes limitations which restrict the potential to emit ofa stationary source, process, or process equipment to

a quantity below that which would constitute a major source or major modification under any part ofthese rules without meeting the requirement ofsubrule (1)(b) of this rule ifthe emission limitations restrict the potential to emit ofthe stationary
source, process, or process equipment to less than 90% ofthe quantity referenced in the applicable requirement.

R 336.1207 Denial of permits to install.

Rule 207. (1) The department shall deny an application for a permit to install if, in the judgment ofthe department, any ofthe following conditions exist:

(a) The equipment for which the permit is sought will not operate in compliance with the rules ofthe department or state law.

(b) Operation ofthe equipment for which the permit is sought will interfere with the attainment or maintenance ofthe air quality standard for any air contaminant.

(c) The equipment forwhich the permit is sought will violate the applicable requirements ofthe clean air act, as amended, 42 U.S.C. §7401 et seq., including any ofthe following:

(i) The standards of performance for stationary sources, 40 C.F.R. part 60, adopted by reference in R 336.1299.

(ii) The national emission standards for hazardous air pollutants, 40 C.F.R. part 61, adopted by reference in R 336.1299.

(iii) The requirements of prevention ofsignificant deterioration ofair quality, R 336.2801 toR 336.2819 and R 336.2823.MICHIGAN STATE IMPLEMENTATION PLAN

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(iv) The requirements of nonattainment new source review, R 336.2901 to R 336.2903, R 336.2907, and R 336.2908.

(v) The requirements for control technology determinations for major sources in accordance with 40 C.F.R. §63.40 to §63.44 and §63.50 to §63.56, adopted by reference in R 336.1299.

(d) Sufficient information has not been submitted by the applicant to enable the department to make reasonable judgments as required by subdivisions (a) to (c) of this subrule.

(2) When an application is denied, the applicant shall be notified in writing ofthe

reasons therefor. A denial shall be without prejudice to the applicant's right to a hearing pursuantto section 5505(8) ofthe act or for filing a further application after revisions are made to meet objections specified as reasons forthe denial.

R 336.1211 Renewable operating permit applicability.

Rule 211. (1) All ofthe following stationary sources are subject to the requirements of R 336.1210 to obtain, and only operate in compliance with, a renewable operating permit:

(a) Major sources as defined by any ofthe following criteria: (i) A major source undersection 112 ofthe clean air act, which is defined as any stationary source or group ofstationary sources located within a contiguous area and under common control that emits, or has the potential to emit, in the aggregate, any ofthe following:

(A) Ten tons peryear ofany hazardous air pollutant that has been listed under section 112(b) ofthe clean air act.

(B) Twenty-five tons peryear ofany combination of hazardous air pollutants that have been listed under section 112(b) ofthe clean air act.

(C) A lesser quantity as the administrator ofthe United States environmental protection agency may establish by rule for any hazardous air pollutant listed under section 112(b) ofthe clean air act. The department shall maintain, and make available upon request, a list ofthe hazardous air pollutants for which a lesser quantity criteria has been established. Emissions from any oil or gas exploration or production well, with its associated equipment, and emissions from any pipeline compressor or pump station shall not be aggregated with emissions from other similar units, whether or not the units are in

a contiguous area or under common control, to determine whetherthe units or stations are major sources underthis paragraph. Forthe purpose ofthis paragraph, the potential to emit ofa stationary source for hazardous air pollutants includes fugitive emissions, regardless ofthe category ofthe stationary source.

(ii) A stationary source that directly emits, or has the potential to emit, 100 tons per year or more ofany ofthe following:

(A) Lead. (B) Sulfur dioxide. (C) Nitrogen oxides. (D) Carbon monoxide. (E) PM-1 0. (F) Ozone.MICHIGAN STATE IMPLEMENTATION PLAN

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(G) Volatile organic compounds. (H) Any air contaminant regulated under section 111 oftitle I ofthe clean air act. (I) Any class I and class II substances under title VI ofthe clean air act. For the purpose ofthis paragraph, the fugitive emissions ofa stationary source shall not be considered in determining whetherthe stationary source is a major source, unless the stationary source belongs to 1ofthe categories listed in the definition of potential to emit in R 336.1116.

(iii) A major stationary source, as defined in part d oftitle I ofthe clean air act and R 336.2901 (t), including, for ozone nonattainment areas, stationary sources that have the potential to emit 100 tons peryear or more ofvolatile organic compounds

or oxides of nitrogen in areas classified as marginal or moderate.

(b) Any affected source as defined in section 402 ofthe clean air act. (c) Any solid waste incineration unit, as defined in section 129(g) ofthe clean air act, that is required to obtain a renewable operating permit under section 129(e) of the clean air act.

(d) Any municipal solid waste landfill that has a design capacity equal to or greater than 2.5 million megagrams and 2.5 million cubic meters.

(e) Any Portland cement plant subject to 40 C.F.R. part 63, subpart 

### LLL, national emission standards for hazardous air pollutants from the Portland cement manufacturing industry, adopted by reference in R 336.1299, including both ofthe following:

(i) Each kiln and each incline kiln/raw mill at any Portland cement plant, including alkali bypasses, except for kilns and in-line kiln/raw mills that burn hazardous waste and are subject to and regulated under 40 C.F.R. part 63, subpart EEE, national emission standards for hazardous air pollutants from hazardous waste combustors, adopted by reference in R 336.1299.

(ii) Each Greenfield raw material dryer. 

### (f) Any stationary source in a source category designated by the administrator of the United States environmental protection agency under 40 C.F.R. §70.3, adopted by reference in R 336.1299.

(2) For the purposes ofdetermining the applicability of R 336.1210, the potential to emit of a stationary source shall be the sum ofthe potential to emit of all process and process equipment located at the stationary source.

(3) The following stationary sources are exempted from the obligation to obtain a renewable operating permit under R 336.1210:

(a) All stationary sources and source categories for which the person owning or operating the stationary source would be required to obtain a permit solely because the stationary source is subject to 40 C.F.R. part 60, subpart AAA, standards of performance for new residential wood heaters, adopted by reference in R 336.1299.

(b) All stationary sources and source categories for which the person owning or operating the stationary source would be required to obtain a permitsolely because the stationary source is subject to 40 C.F.R. part 61, subpart M, national emission standard for hazardous air pollutants for asbestos, and §61.145, standard for demolition and renovation, adopted by reference in R 336.1299.MICHIGAN STATEIMPLEMENTATION PLAN

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### R 336.1213 Content of renewable operating permit. Rule 213. (1) Each renewable operating permit shall include all ofthe following general provisions: (a) A person shall comply with all conditions ofthe renewable operating permit. Any permit noncompliance constitutes aviolation ofthe act and is grounds for enforcement action, for permit revocation or revision, or for denial ofthe renewal of a renewable operating permit. All terms and conditions of a renewable operating permit that are designated in the permit as federally enforceable pursuant to subrule (5} ofthis rule, are enforceable by the administrator ofthe United States environmental protection agency and by citizens underthe provisions ofthe clean air act. (b) It shall not be a defense for a person in an enforcement action that it would have been necessary to halt or reduce the permitted activity in orderto maintain compliance with the conditions ofthe permit. (c) The renewable operating permit may be modified, revised, or revoked for

cause. The filing ofa request by a person for a permit modification, revision, or termination, or a notification of planned changes or anticipated noncompliance does not stay any permit condition. This does not supersede or affect the ability of a person to make changes, at the person's own risk, pursuant to R 336.1215 and R 336.1216. (d) A person shall allow the department or an authorized representative ofthe department, upon presentation ofcredentials and other documents as may be required by law and upon stating the authority for and purpose ofthe investigation, to perform any ofthe following activities: (i) Enter, at reasonable times, a stationary source or other premises where emissions-related activity is conducted or where records must be kept underthe conditions ofthe permit. (ii) Have access to and copy, at reasonable times, any records that must be kept under the conditions ofthe permit. (iii) Inspect, at reasonable times, any ofthe following: (A) Any stationary source. (B) Any emission unit. (C) Any equipment, including monitoring and air pollution control equipment. (D) Any work practices or operations regulated or required underthe renewable operating permit. (iv) As authorized by section 5526 ofthe act, sample or monitor at reasonable times substances or parameters forthe purpose ofassuring compliance with the permit or applicable requirements. (e) A person shall furnish to the department, within a reasonable time, any information that the department may request, in writing, to determine whether cause exists for modifying, revising, or revoking the permit or to determine compliance with the permit. Upon request, a person shall also furnish to the department copies of any records that are required to be kept as a term or condition ofthe renewable operating permit. For information which is claimed by the person to be confidential, consistent with the requirements of 1976 PA 442, MCL 15.231, and known as the freedom of information act, the person may also be required to furnish the recordsMICHIGAN STATEIMPLEMENTATION PLAN

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directly to the United States environmental protection agency together with a claim of confidentiality. (f) A challenge by any person, the administrator ofthe United States environmental protection agency, or the department to a particular condition or a part ofa renewable operating permit shall not set aside, delay, stay, or in any way affect the applicability or enforceability of any other condition or part ofthe renewable operating permit. (g) A person shall pay fees consistent with the fee schedule and requirements pursuant to section 5522 ofthe act. (h) The renewable operating permit does not convey any property rights or any exclusive privilege. (i) Federally enforceable permit to install terms and conditions incorporated into the renewable operating permit are identified within the renewable operating permit

as being established pursuant to R 336.1201. (2) Each renewable operating permit shall contain emission limits and standards, including operational requirements and limits that ensure compliance with all applicable requirements at the time of permit issuance. In addition, each renewable operating permit may contain additional limits agreeable to both the applicant and the department, provided that these limits are not contrary to R 336.1213 orthe clean air act. The following provisions apply to emission limits and standards: (a) The renewable operating permit shall specify and reference the underlying applicable requirement for each term or condition and identify any difference in form

as compared to the applicable requirement upon which the term or condition is based. (b) The renewable operating permit shall state that, where an applicable requirement is more stringent than an applicable requirement of regulations promulgated for affected sources under title IV ofthe clean air act, both provisions shall be incorporated into the permit. (c) Ifthe state implementation plan allows for an alternative emission limit that is equivalent to the limit contained in the state implementation plan, any renewable operating permit containing the equivalent alternative emission limit shall contain terms and conditions to ensure that any such emission limit is quantifiable, accountable, enforceable, and based on replicable procedures. (d) Any term or condition established as a limit on the potential to emit ofthe stationary source shall be consistent with the requirements of R 336.1205(1)(a). For each such limit on the potential to emit ofthe stationary source, the permit shall specify and reference any requirements that would otherwise be applicable to the

source or emission unit. (3) The renewable operating permit shall contain terms and conditions necessary to ensure that sufficient testing, monitoring, recordkeeping, reporting, and compliance evaluation activities will be conducted to determine the status of compliance ofthe stationary source with the emission limitations and standards contained in the renewable operating permit. The following provisions apply to testing, monitoring, recordkeeping, reporting, and compliance evaluation activities:MICHIGAN STATEIMPLEMENTATION PLAN

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### (a) With respect to testing and monitoring, each renewable operating permit shall contain terms and conditions necessary to ensure compliance with all ofthe following: (i) The use ofall emissions monitoring and analysis procedures or test methods required by the applicable requirements, including 40 C.F.R. part 64 and any other procedures and methods promulgated pursuant to sections 504(b) or 114(a)(3) of the clean air act. Title 40 C.F.R. part 64 is adopted by reference in R 336.1299. If

more than 1 monitoring ortesting requirement applies, the permit may specify a streamlined set of monitoring or testing requirements, provided the specified monitoring ortesting is adequate to assure compliance at least to the same extent

as the monitoring ortesting applicable requirements that were not included in the permit as a result ofsuch streamlining. (ii) Where the applicable requirement does not require periodic testing or instrumental or noninstrumental monitoring, which may consist of recordkeeping designed to serve as monitoring, the use of periodic monitoring sufficient to yield reliable data from the relevant time period that are representative ofthe stationary source's compliance with the permit, as reported pursuant to subrule (3)(c) ofthis rule. The monitoring requirements shall ensure use ofterms, test methods, units, averaging periods, and other statistical conventions consistent with the applicable requirement. Recordkeeping provisions shall be sufficient to meet the requirements ofsubrule (3)(b) ofthis rule. (iii) As necessary, requirements concerning the use, maintenance, and, where appropriate, installation of monitoring equipment or methods. (b) With respect to recordkeeping, each renewable operating permit shall contain terms and conditions necessary to ensure compliance with the recordkeeping requirements specified in the applicable requirements. Each renewable operating permit shall also contain terms and conditions that require, where appropriate, both ofthe following: (i) Records ofany periodic emission or parametric monitoring that include all of the following information: (A) The date, location, time, and method of sampling or measurements. (B) The dates analyses ofthe samples were performed. (C) The company or entity that performed the analyses ofthe samples. (D) The analytical techniques or methods used. (E) The results ofthe analyses. (F) The related operating conditions or parameters that existed at the time of sampling or measurement. (ii) 

### Retention of records ofall required monitoring data and support information for

a period of not less than 5 years from the date ofthe monitoring sample, measurement, report, or application. Support information includes all calibration and maintenance records and all original strip-chart recordings, or other original data records, for continuous monitoring instrumentation and copies ofall reports required by the renewable operating permit. (c) With respect to reporting and the certification of reports, each renewable operating permit shall contain terms and conditions necessary to insure compliance with the reporting requirements specified in the applicable requirements. Except asMICHIGAN STATEIMPLEMENTATION PLAN

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provided subdivision (iii)(B) ofthis subdivision, any document, including reports, required to be submitted to the department as a term or condition ofa renewable operating permit shall include a certification by a responsible official which states that, based on information and beliefformed after reasonable inquiry, the statements and information in the document are true, accurate, and complete. Each renewable operating permit shall also contain terms and conditions for all ofthe following: (i) The submittal of reports ofany required monitoring at least once every 6 months. All instances ofdeviations from permit requirements during the reporting period shall be clearly identified in the reports. Each report submitted pursuant to this subdivision shall include a certification by a responsible official which states that, based on information and beliefformed after reasonable inquiry, the statements and information in the report are true, accurate, and complete. (ii) The prompt reporting ofdeviations from permit requirements. Prompt reporting shall be defined as follows, unless otherwise provided in the renewable operating permit: (A) For deviations that exceed the emissions allowed underthe renewable operating permit, prompt reporting means reporting consistent with the requirements of R 336.1912. All reports submitted pursuant to this paragraph shall be promptly certified as specified in paragraph (iii) ofthis subdivision. (B) For deviations which exceed the emissions allowed underthe renewable operation permit and which are not reported pursuant to R 336.1912 due to the duration ofthe deviation, prompt reporting means the reporting of all deviations in the reports required by paragraph (i) ofthis subdivision. The report shall describe

reasons for each deviation and the actions taken to minimize or correct each deviation. (C) For deviations that do not exceed the emissions allowed underthe renewable operating permit, prompt reporting means the reporting of all deviations in the reports required by paragraph (i) ofthis subdivision. The report shall describe the

reasons for each deviation and the actions taken to minimize or correct each deviation. (iii) For reports required pursuant to paragraph (ii) ofthis subdivision, prompt certification ofthe reports means either ofthe following: (A) Submitting a certification by a responsible official with each report which states that, based on information and beliefformed after reasonable inquiry, the statements and information in the report are true, accurate, and complete. (B) Submitting, within 30 days following the end ofa calendar month during which 1 or more prompt reports ofdeviations from the emissions allowed underthe permit

were submitted to the department pursuant to paragraph (ii) ofthis subdivision, a certification by a responsible official which states that, based on information and belief formed after reasonable inquiry, the statements and information contained in each ofthe reports submitted during the previous month were true, accurate, and complete. The certification shall include a listing ofthe reports that are being certified. Any report submitted pursuant to paragraph (ii) ofthis subdivision that will be certified on a monthly basis pursuant to this paragraph shall include a statement that certification ofthe report will be provided within 30 days following the end ofthe calendar month.MICHIGAN STATE IMPLEMENTATION PLAN

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### (4) With respect to compliance, each renewable operating permit shall contain terms and conditions necessary to ensure each ofthe following: (a) Incorporation into the renewable operating permit of a schedule of compliance. (b) For a stationary source that is not in compliance with all applicable requirements at the time of issuance ofa renewable operating permit, the submission of progress reports to the department, consistent with an applicable schedule of compliance, at least semiannually or more frequently ifspecified in an applicable requirement or by the department in the permit. Progress reports shall contain the information specified in both ofthe following provisions: (i) The date or dates for achieving the activities, milestones, or compliance required in the schedule ofcompliance, and the date or dates when the activities, milestones, or compliance were achieved. (ii) An explanation ofwhy any dates in the schedule ofcompliance were not or will not be met and a description of any preventive or corrective measures adopted. (c) A requirement that, at least annually, or more frequently ifspecified in an applicable requirement or by the department in the renewable operating permit, the responsible official shall certify, in writing, to the department and to the United States environmental protection agency, that the stationary source is and has been in compliance with all terms and conditions contained in the renewable operating permit, except for any deviations from compliance that have been or are being reported to the department. The certification shall state that, based on information and beliefformed after reasonable inquiry, the statements and information in the certification are true, accurate, and complete. Each certification of compliance shall include all ofthe following information: (i) The identification of each term or condition ofthe permit that is the basis ofthe certification. (ii) The compliance status of the stationary source with respect to each identified term or condition. (iii) Whether compliance was continuous or intermittent. (iv) The methods used for determining the compliance status ofthe stationary
source, currently and overthe reporting period consistent with subrules (3)(a), (b), and (c) ofthis rule. (v) Other facts as the department may require in the permit that are necessary to determine the compliance status ofthe stationary source. (5) Each renewable operating permit shall provide for the following: (a) Each renewable operating permit shall specifically designate as not being enforceable underthe clean air act any terms and conditions included in the permit that are not required under the clean air act or under any of its applicable requirements. Terms and conditions so designated are not subject to the requirements for review by the United States environmental protection agency or affected states under R 336.1214. (b) Each renewable operating permit shall specifically designate each federally enforceable applicable requirement previously established in a permit to install pursuant to R 336.1201. (6) Both ofthe following provisions apply to permit shields:MICHIGAN STATEIMPLEMENTATION PLAN

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(a) Except as provided in subdivision (b) ofthis subrule, each renewable operating permit shall include a permit shield provision stating that compliance with the conditions ofthe permit shall be considered compliance with any applicable requirements as ofthe date of permit issuance, ifeither ofthe following provisions is satisfied: (i) The applicable requirements are included and are specifically identified in the permit. (ii) The permit includes a determination or a concise summary ofthe determination by the department that other specifically identified requirements are not applicable to the stationary source. (b) Nothing in this subrule or in any renewable operating permit shall alter or affect any ofthe following: (i) The provisions ofsection 303 ofthe clean air act, emergency orders, including the authority ofthe administrator ofthe United States environmental protection agency under that section. (ii) The liability ofan owner or operator ofa stationary source for any violation of applicable requirements before or at the time of permit issuance. (iii) The applicable requirements ofthe acid rain program, consistent with section 408(a) ofthe clean air act. (iv) The ability ofthe United States environmental protection agency to obtain information from a stationary source pursuant to section 114 ofthe clean air act. (7) Each renewable operating permit shall be issued for a fixed term of not more than 5 years. Renewable operating permits that have terms of less than 5 years may be issued with the agreement ofthe department and the permit applicant. The terms and conditions ofa renewable operating permit for affected sources under title IV ofthe clean air act that address the requirements oftitle IV shall be issued for a term of 5 years. The date of expiration ofthe renewable operating permit shall be specified in the permit. (8) A renewable operating permit shall include terms and conditions that allow a stationary source to switch its operation between reasonably anticipated operating scenarios ifthe scenarios have been identified by the stationary source in its application and found to be approvable by the department The terms and conditions shall provide for all ofthe following: (a) Require the stationary source, contemporaneously with making a change from

one operating scenario to another, to record, in a log at the stationary source, a record ofthe scenario under which the source is operating. (b) Extend the permit shield described in subrule (6) ofthis rule to all terms and conditions under each approved operating scenario. (c) Ensure that the terms and conditions of each approved alternative scenario meet all applicable requirements. (9) A renewable operating permit shall include terms and conditions for the trading ofemissions increases and decreases among process emission units within the stationary source solely for the purpose of complying with an emissions cap that is established in the permit independent ofotherwise applicable requirements, ifthe terms and conditions have been requested by a person in an application for a renewable operating permit. Ifa person wishes to include the terms and conditionsMICHIGAN STATEIMPLEMENTATION PLAN

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### in a renewable operating permit, the permit application shall include proposed replicable procedures and permit terms that the person believes ensure the emissions trades are quantifiable and enforceable. The terms and conditions shall include those necessary to meet the requirements ofsubrules (2) to (4) ofthis rule. The department shall not be required to include in the emissions trading provisions any emission units for which emissions are not quantifiable or for which there are no replicable procedures to enforce the emissions trades. The permit shall also require compliance with all applicable requirements. Both ofthe following provisions apply to the trading ofemissions increases and decreases among emission units solely for the purpose ofcomplying with an emissions cap: (a) A written notification to the department and the United States environmental protection agency is required 7 days in advance ofany emissions trade under this subrule. The notice shall state when the change will occur and shall describe the changes in emissions that will result and how these increases and decreases in emissions will comply with the terms and conditions ofthe permit. (b) The permit shield described in subrule (6) ofthis rule shall extend to terms and conditions that allow the increases and decreases in emissions. (10) In addition to the other requirements of this rule, each renewable operating permit for an affected source under title iv ofthe clean air act shall include a permit condition prohibiting emissions exceeding any allowances that an affected source lawfully holds as ofthe allowance transfer deadline pursuant to the federal acid rain program, adopted by reference in R 336.1299. All ofthe following apply to allowances: (a) A permit revision shall not be required for increases in emissions that are authorized by allowances acquired pursuant to title IV ofthe clean air act ifthe increases do not require a permit revision under any other applicable requirement. (b) A limit shall not be placed on the number ofallowances held by the affected

source. The affected source may not, however, use allowances as a defense to noncompliance with any other applicable requirement. (c) Any allowance shall be accounted for according to the procedures established in regulations promulgated undertitle IV ofthe clean air act. (11) A renewable operating permit for a temporary source may authorize emissions from a stationary source at multiple temporary locations. An affected

source undertitle IV ofthe clean air act shall not be permitted as a temporary

source. In addition to the other requirements ofthis rule, permits for temporary

sources shall include all of the following provisions: (a) Conditions that will assure compliance with all applicable requirements at all authorized locations. (b) Requirements that the owner or operator notify the department not less than 10 days in advance ofeach change in location. (c) Conditions that assure compliance with all other provisions ofthis rule. (12) A renewable operating permit shall contain terms and conditions allowing for emission averaging and emission reduction credit trading pursuant to any applicable interstate or regional emissions trading program that has been approved by the administrator ofthe United States environmental protection agency as a part of Michigan's state implementation plan.MICHIGAN STATEIMPLEMENTATION PLAN

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R 336.1214 Approval ofa renewable operating permit.

Rule 214. (1) After the department has received an administratively complete application and all additional information requested by the department pursuant to R 336.1210(3) for a renewable operating permit, significant modification to a renewable operating permit, orthe renewal ofa renewable operating permit, the department shall prepare a draft permit and a report that sets forth the applicable requirements and factual basis forthe draft permit terms and conditions. The report shall include citations ofthe applicable requirements, an explanation ofany equivalent requirements or other changes included in the draft permit pursuant to R 336.1213(2), and any determination made pursuant toR 336.1213(6)(a)(ii) regarding requirements that are not applicable to the stationary source where the draft permit contains only a summary ofthe determination.

(2) The person who applied for the renewable operating permit shall be provided with a reasonable period oftime, but not less than 7 days nor more than 30 days, to review and comment on the draft renewable operating permit, draft renewable operating permit significant modification, or draft renewable operating permit renewal before the start ofthe public participation procedure specified in subrule (3) ofthis rule. Ifthe person and the department cannot agree on the terms and conditions of the draft renewable operating permit, the terms and conditions thatthe department believes are necessary to comply with the requirements of R 336.1213 shall be incorporated into the draft renewable operating permit and the report required by subrule (1) ofthis rule shall include a discussion ofthe person's objections.

(3) Except for modifications qualifying for administrative permit amendment procedures pursuant toR 336.1216(1) or minor permit modification procedures pursuant toR 336.1216(2), the draft renewable operating permit, draft renewable operating permit modification, orthe draft renewable operating permit renewal shall be subjected to the following public participation procedure before the department submits a proposed renewable operating permit to the United States environmental protection agency for review pursuant to subrule (6) ofthis rule:

(a) The department shall provide public notice by publication in a newspaper of general circulation in the area where the stationary source is located or in a state publication designed to give general public notice. Notice shall also be provided to persons on a mailing list maintained by the department, including persons who request, in writing, to be on that list, and to any person who requests, in writing, to be notified ofa permit action involving a specific stationary source.

(b) The notice shall set forth all ofthe following information: (i) The name ofthe stationary source. (ii) The name and mailing address ofthe responsible official. (iii) The mailing address ofthe department. (iv) The activity or activities involved in the proposed permit action. (v) The emissions change involved in any permit modification. (vi) The name, address, and telephone number ofa representative ofthe department from whom interested persons may obtain additional information, including copies ofthe draft permit, the report required undersubrule (1) ofthis rule, and, to the extent provided by 1976 PA 442, MCL 15.231, and known as theMICHIGAN STATEIMPLEMENTATION PLAN

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### freedom of information act, the application and any other materials available to the department that are relevant to the permit decision.

(vii) A brief description ofthe procedures to submit comments. (viii) The time and place ofany hearing that may be held, including a statement of the procedures to request a hearing, unless a hearing has already been scheduled.

(c) The department shall provide not less than 30 days for public comment and shall give notice ofany public hearing not less than 30 days in advance ofthe hearing.

(d) The department shall keep a record ofthe commenters and the issues raised during the public participation process and the records shall be available to the public.

(4) The department shall give notice ofeach draft permit to any affected state on
or before the time that the department provides notice to the public pursuant to subrule (3) ofthis rule, unless R 336.1216(2) requires the timing ofthe notice to be different. The department shall notify the administrator ofthe United States environmental protection agency and any affected state, in writing, of any refusal by the department to accept all recommendations for the proposed permit that the affected state submitted during the public comment period specified in subrule (3)(c) ofthis rule. The notice shall include the department's reasons for not accepting any recommendation. The department is not required to accept recommendations that

are not based on applicable requirements.

(5) After the completion ofthe public participation procedure specified in subrule (3) ofthis rule and the review by affected states specified in subrule (4) ofthis rule, the department shall prepare a proposed renewable operating permit, proposed renewable operating permit significant modification, or proposed renewable operating permit renewal. Ifthe proposed renewable operating permit differs from the draft renewable operating permit in response to substantial and relevant comments from the public or affected states, the person who applied for the renewable operating permit shall be provided with a reasonable period of time, but not less than 7 days nor more than 30 days, to review and comment on the changes before the transmittal ofthe proposed renewable operating permit to the United States environmental protection agency for review. Ifthe person and the department cannot agree on the changes to the proposed renewable operating permit, the changes that the department believes are necessary to comply with the requirements of R 336.1213 shall be incorporated into the proposed renewable operating permit and the person's objections shall be included in the information transmitted to the United States environmental protection agency for review.

(6) Except as provided in 40 C.F.R. §70.8(a)(1) and (2), adopted by reference in R 336.1299, and as provided in R 336.1210(13), the department shall transmit a copy ofeach administratively complete application for a renewable operating permit, including any application for a significant modification to a renewable operating permit or for renewal ofa renewable operating permit, all additional information submitted pursuant to R 336.121 0(3), the report prepared pursuant to subrule (1) of this rule, and the proposed renewable operating permit to the United States environmental protection agency. The department shall not take a final action to issue a renewable operating permit until 45 days after the United StatesMICHIGAN STATE IMPLEMENTATION PLAN

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environmental protection agency has received all the information specified in this subrule and subrule (4) ofthis rule. Ifthe administrator ofthe United States environmental protection agency objects, in writing, to the renewable operating permit before the end ofthe 45-day review period specified in this subrule, the department shall not issue the renewable operating permit until the administrator's objection has been resolved. The department shall follow the procedure specified in 40 C.F.R. §70.8(c), adopted by reference in R 336.1299, to resolve the objection. The application shield provided by R 336.1210(1) shall continue to apply to the stationary source, consistent with the provisions of R 336.1210, until the department takes final action on the renewable operating permit.

(7) The department shall make a final decision to issue or deny a renewable operating permit, a significant modification to a renewable operating permit, orthe renewal ofa renewable operating permit after completion ofthe review by the United States environmental protection agency specified in subrule (6) ofthis rule. The final renewable operating permit shall contain all terms and conditions determined by the department to be necessary pursuant to R 336.1213, after consideration of all comments received during public participation pursuant to subrule (3) ofthis rule and affected state review pursuant to subrule (4) ofthis rule, including any terms and conditions necessary to resolve any objection by the administrator ofthe United States environmental protection agency pursuant to subrule (6) ofthis rule. The department shall transmit a copy ofeach final renewable operating permit to the United States environmental protection agency. A person aggrieved by the issuance, denial, modification, or renewal ofa renewable operating permit may appeal the final decision as provided in section 5506(14) ofthe act.

(8) Any person may petition the administrator ofthe United States environmental protection agency to make an objection regarding a renewable operating permit pursuant to 40 C.F.R. §70.8(d), adopted by reference in R 336.1299. The petition shall be filed within 60 days after the expiration ofthe administrator's 45-day review period specified in subrule (6) ofthis rule and 40 C.F

### .R. §70.8(c), adopted by reference in R 336.1299. The petition shall be based only on an objection to the renewable operating permit that was raised with reasonable specificity during the public comment period provided for in subrule (3)(c) ofthis rule, unless the petitioner demonstrates that it was impracticable to raise the objection during the public comment period or unless the grounds for the objection arose after the public comment period. A petition for review does not stay the effectiveness of a renewable operating permit or its requirements ifthe renewable operating permit

was issued after the end ofthe 45-day review period and before the department received an objection by the administrator. Ifthe administrator ofthe United States environmental protection agency objects to the renewable operating permit as a result ofa petition filed pursuant to 40 C.F.R. §70.8(d), adopted by reference in R 336.1299, before the department has issued the renewable operating permit, the department shall not issue the renewable operating permit until the administrator's objection has been resolved. The application shield provided by R 336.1210(1) shall continue to apply to the stationary source, consistentwith the provisions of R 336.1210, until the department takes final action on the renewable operating permit. Ifthe administrator ofthe United States environmental protection agencyMICHIGAN STATEIMPLEMENTATION PLAN

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### objects to the renewable operating permit as a result ofa petition filed pursuant to 40 C.F.R. §70.8(d) after the department has issued the renewable operating permit, the department shall follow the procedure specified in 40 C.F.R. §70.7(g), adopted by reference in R 336.1299, to resolve the objection.

R 336.1214a Consolidation of permits to install within renewable operating permit.

Rule 214a. (1) The department shall issue a source-wide permit to install concurrent with each issuance and renewal ofa renewable operating permit pursuant toR 336.1214 and each reissuance ofa renewable operating permit pursuant toR 336.1217(2)(b). The source-wide permit to install shall be contained in the same document as the renewable operating permit. The source-wide permit to install shall specifically identify, consolidate, and incorporate all federally enforceable terms and conditions ofexisting permits to install into the renewable operating permit in accordance with the provisions of R 336.1212(5) and the permit content requirements of R 336.1213.

(2) The source-wide permit to install is updated whenever a new process-specific permit to install is incorporated into the renewable operating permit in accordance with the provisions of R 336.1216.

(3) Both ofthe following provisions apply to the incorporation of terms and conditions of a permit to install into a renewable operating permit:

(a) Within the renewable operating permit, each federally enforceable term or condition that originated in a permit to install shall be specifically identified with an applicable requirement citation of R 336.1201(1)(a). This citation is in addition to the R 336.1213(2)(a) underlying applicable requirement citation. Each term or condition ofthe renewable operating permit with an applicable requirement citation of R 336.1201 (1)(a) shall be considered a term or condition ofthe source-wide permit to install issued pursuant to this rule.

(b) A federally enforceable term or condition ofa renewable operating permit shall be considered a term or condition ofthe source-wide permit to install issued pursuant to this rule, if it can be reasonably demonstrated that the federally enforceable term or condition originated in a permit to install issued pursuant to R 336.1201. Each term or condition in a renewable operating permit issued before the effective date ofthis rule with any ofthe following underlying applicable requirements, identified pursuant to R 336.1213(2)(a), shall be considered a term or condition ofthe source-wide permit to install issued pursuant to this rule:



### (i) R 336.1201, R 336.1201a. (ii) Title 40 C.F.R. §§63.40 to 63.44 and §§63.50 to 63.56, adopted by reference in R 336.1299.

(iii) R 336.1301(1)(c), R 336.1301(4), and R 336.1331(1)(c). (iv) R 336.1401(1)(b) and R 336.1403(4). (v) R 336.1702, R 336.1705, R 336.1706, R 336.1708, R 336.1709, and R 336.1710.

(vi) R 336.2415. (vii) Title 40 C.F.R. §52.21, adopted by reference in R 336.1299. (viii) R 336.2801 toR 336.2819 and R 336.2823. (ix) R 336.2901 to R 336.2903, R 336.2907, and R 336.2908.MICHIGAN STATEIMPLEMENTATION PLAN

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(4) The source-wide permit to install replaces all existing permits to install, in accordance with R 336.1201 (6)(b). Although the source-wide permit to install and the renewable operating permit are contained in the same document, the sourcewide permit to install maintains its own authority under section 5505 ofthe act. Ifthe renewable operating permit expires or is voided, the source-wide permit to install remains in effect, unless the criteria of R 336.1201 (6)(a) or (6)(c) are met.

(5) State-only enforceable terms and conditions from a permit to install that have been incorporated into a renewable operating permit shall be considered terms and conditions ofa state-only enforceable permit to install established pursuant to R 336.1201 (2)(d). Ifthe renewable operating permit later expires or is voided, the state-only enforceable permit to install does not expire, nor is it voided, unless the criteria of R 336.1201 (6)(a) or (c) are met.

(6) Nothing in this rule shall relieve the requirement to obtain a permit to install pursuant toR 336.1201(1) for newly constructed, modified, reconstructed, or relocated process or process equipment that emits an air contaminant.

R 336.1219 Amendments for change ofownership or operational control.

Rule 219. (1) A person may notify the department, in writing, ofa change in ownership or operational control ofa stationary source or emission unit authorized by a permit to install or a permit to operate. The notification shall include all ofthe following information:

(a) A description ofthe stationary source or emission unit affected by the change and a listing ofthe permits involved in the request.

(b) An identification ofthe new owner or operator and a specific date for the transfer of responsibility, coverage, and liability.

(c) A written statement by the new person owning or operating the stationary

source or emission unit that the terms and conditions ofthe permitto install or permit to operate are understood and accepted. Acceptance ofthe terms and conditions of

a permit does not affect the person's ability to subsequently request a modification to the permit to install or permit to operate pursuant toR 336.1201. The new person owning or operating the stationary source shall also notify the department of any change in the contact person regarding the permit.

(2) A change in ownership or operational control of a stationary source or emission unit covered by a renewable operating permit shall be made pursuantto R 336.1216(1).

R 336.1220 Rescinded

R 336.1240 Required air quality models.

Rule 240. All air quality modeling demonstrations required by prevention of significant deterioration ofair quality regulations and new source review for major

sources in nonattainment areas regulations, or used to support or amend the state implementation plan shall be made in accordance with the models and procedures in 40 C.F.R. §51.160(f) and appendix W adopted by reference in R 336.1299.

R 336.1241 Air quality modeling demonstration requirements.MICHIGAN STATE IMPLEMENT AT/ON PLAN

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### Rule 241. (1) All air quality modeling demonstrations required bythe department which are not subject to R 336.1240 shall follow the procedures and methods referenced in R 336.1240, except for the demonstration may be based on the maximum ambient predicted concentration using the most recent calendar year of meteorological data from a representative national weather service, federal aviation administration station, orsite specific measurement station.

R 336.1277 New emission units at facilities with plantwide applicability limits; exemption. Rule 277. The owner or operator ofa facility complying with an actuals PAL, established pursuant toR 336.2823 orR 336.2907, may install a new emissions unit without first obtaining a permit to install under R 336.1201, ifall ofthe following requirements are met:

(a) The new emissions unit will not cause a meaningful change in the nature or quantity oftoxic air contaminants emitted from the stationary source unless the new emission unit is otherwise exempt under R 336.1278 toR 336.1290. In determining whether the new emissions unit will cause a meaningful change in the nature or quantity oftoxic air contaminants, the following shall apply:

(i) The owner or operator shall demonstrate to the department that a meaningful change in the nature or quantity oftoxic air contaminants has not occurred. The

owner or operator may devise its own method to perform this demonstration subject to approval by the department. However, ifthe applicant demonstrates that all toxic aircontaminants from a new emissions unit are within the levels specified in R 336.1226 orR 336.1227, then a meaningful change in air contaminants has not occurred.

(ii) If, using the methods described in paragraph (a) of this subdivision, the owner
or operator determines that the installation of new emission units will cause a meaningful change in the nature or quantity oftoxic air contaminant emissions, then the owner or operator shall obtain a state-only enforceable permit to install under R 336. 1201(1)(b).

(iii) A copy ofthe demonstration required by subparagraph (a) ofthis paragraph shall be kept on site for the life ofthe new emissions unit and made available to the department upon request.

(b) The new emissions unit will only emit regulated new source review pollutants,

as defined in R 336.2801(nn) and R 336.2901(ee), that are subject to a PAL, unless the new emission unit is otherwise exempt under R 336.1278 toR 336.1290.

(c) The new emissions unit will not be a newly constructed or reconstructed major

source of hazardous air pollutants as defined in and subject to 40 C.F.R. §63.2 and §63.5(b)(3), national emission standard for hazardous air pollutants, adopted by reference in R 336.1299.

(d) The installation ofthe new emissions unit will not cause the violation of any other applicable requirement.

(e) The owner or operator shall notify the department ofthe installation ofa new emissions unit using the procedure in R 336. 1215(3)(c).MICHIGAN STATEIMPLEMENTATION PLAN

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R 336.1278 Exclusion from exemption.

Rule 278. (1) The exemptions specified in R 336.1280 to R 336.1290 do not apply to either ofthe following:

(a) Any activity that is subject to prevention ofsignificant deterioration ofair quality regulations or new source review for major sources in nonattainment areas regulations.

(b) Any activity that results in an increase in actual emissions greaterthan the significance levels defined in R 336.1119. For the purpose ofthis rule, "activity" means the concurrent and related installation, construction, reconstruction, relocation, or modification ofany process or process equipment.

(2) The exemptions specified in R 336.1280 to R 336.1290 do not apply to the construction ofa new major source of hazardous air pollutants or reconstruction of a major source of hazardous air pollutants, as defined in and subjectto 40 C.F.R. §63.2 and §63.5(b)(3), national emission standards for hazardous air pollutants, adopted by reference in R 336.1299.

(3) The exemptions specified in R 336.1280 to R 336.1290 do not apply to a construction or modification as defined in and subject to 40 C.F.R. part 61, national emission standards for hazardous air pollutants, adopted by reference in R 336.1299.

(4) The exemptions in R 336.1280 toR 336.1290 apply to the requirement to obtain a permit to install only and do not exempt any source from complying with any other applicable requirement or existing permit limitation.

R 336.1281 Permit to install exemptions; cleaning, washing, and drying equipment.

Rule 281. The requirement of R 336.1201 (1) to obtain a permit to install does not apply to any ofthe following:

(a) Vacuum-cleaning systems used exclusively for industrial, commercial, or residential housekeeping purposes.

(b) Equipment used for portable steam cleaning. (c) Blast-cleaning equipment using a suspension ofabrasive in water and any exhaust system or collector serving them exclusively.

(d) Portable blast-cleaning equipment equipped with appropriately designed and operated enclosure and control equipment.

(e) Equipment used for washing or drying materials, where the material itself cannot become an air contaminant, if no volatile organic compounds that have a vapor pressure greaterthan 0.1 millimeter of mercury at standard conditions are used in the process and no oil or solid fuel is burned.



### (f) Laundry dryers, extractors, ortumblers for fabrics cleaned with only water solutions of bleach or detergents.

(g) Dry-cleaning equipment that has a capacity of 100 or less pounds ofclothes. (h) Cold cleaners that have an air/vapor interface of not more than 10 square feet. (i) Sterilization equipment at medical and pharmaceutical facilities using steam, hydrogen peroxide, peracetic acid, or a combination thereof.

U) Portable blast-cleaning equipment used during construction to clean new water tanks or other new structures ifthe tank or structure is not located closer than theMICHIGAN STATEIMPLEMENTATION PLAN

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### lesser of750 feet or 5 times the height ofthe structure to the nearest residential, commercial, or public facility and the abrasive media is a low dusting material that does not contain more than 5% crystalline silica.

R 336.1284 Permit to install exemptions; containers.

Rule 284. Except as specified in R 336.1278, the requirement of R 336.1201 (1) to obtain a permit to install does not apply to containers, reservoirs, or tanks used exclusively for any ofthe following:

(a) Dipping or storage operations for coating objects with oils, waxes, greases, or natural or synthetic resins containing no organic solvents.

(b) Storage of butane, propane, or liquefied petroleum gas in a vessel that has a capacity of less than 40,000 gallons.

(c) Storage and surge capacity of lubricating, hydraulic, and thermal oils and indirect heat transfer fluids.

(d) Storage of no. 1 to no. 6 fuel oil as specified in ASTM-D-396, gas turbine fuel oils nos. 2-GTto 4-GT as specified in ASTM-D-2880, or diesel fuel oils nos. 2-D and 4-D as specified in ASTM-D-975. The ASTM methods are adopted by reference in R 336.1299.

(e) Storage ofsweet crude or sweet condensate in a vessel that has a capacity of less than 40,000 gallons.



### (f) Storage ofsour crude or sour condensate in a vessel that has a capacity of less than 40,000 gallons ifvapor recovery or its equivalent is used to prevent the emission ofvapors to the atmosphere.

(g) Gasoline or natural gas storage and handling equipment, as follows: (i) Gasoline storage and handling equipment at loading facilities handling less than 20,000 gallons per day or at dispensing facilities.

(ii) 

### Natural gas storage and handling equipment at dispensing facilities. (h) Storage ofwater solutions of inorganic salts and bases and ofwater solutions of the following acids:

(i) Sulfuric acid that is not more than 99% by weight. (ii) Phosphoric acid that is not more than 99% by weight. (iii) Nitric acid that is not more than 20% by weight. (iv) Hydrochloric acid that is not more than 11% by weight. (i) Storage or transfer operations ofvolatile organic compounds or noncarcinogenic liquids in a vessel that has a capacity of not more than 40,000 gallons where the contents have a true vapor pressure of not more than 1.5 psia at the actual storage conditions.



## Ul Pressurized storage ofacetylene, hydrogen, oxygen, nitrogen, helium, and other substances, excluding chlorine and anhydrous ammonia in a quantity of more than 500 gallons, that have a boiling point of0 degrees Celsius or lower.

(k) Storage containers of noncarcinogenic solid material, including silos, which only emit particulate matter and which are controlled with an appropriately designed and operated fabric filter collector system or an equivalent control system.

(I) Filling of noncarcinogenic liquids in shipping or storage containers that have emissions which are released only into the general in-plant environment.

(m) Storage ofwood and wood residues.MICHIGAN STATEIMPLEMENTATION PLAN

-23-

(n) Storage of methanol in a vessel that has a capacity of not more than 30,000 gallons.

R 336.1285 Permit to install exemptions; miscellaneous.

Rule 285. The requirement of R 336.1201 (1) to obtain a permit to install does not apply to any ofthe following:

(a) Routine maintenance, parts replacement, or other repairs that are considered by the departmentto be minor, or relocation ofprocess equipment within the same geographical site not involving any appreciable change in the quality, nature, quantity, or impact ofthe emission ofan air contaminant therefrom. Examples of parts replacement or repairs considered by the departmentto be minor include the following:

(i) Replacing bags in a baghouse. (ii) Replacing wires, plates, rappers, controls, or electric circuitry in an electrostatic precipitator which does not measurably decrease the design efficiency ofthe unit.

(iii) Replacement offans, pumps, or motors which does not alter the operation ofa
source or performance ofair pollution control equipment.

(iv) Boiler tubes. (v) Piping, hoods, and ductwork. (vi) Replacement of engines, compressors, or turbines as part ofa normal maintenance program.

(b) Changes in a process or process equipment which do not involve installing, constructing, or reconstructing an emission unit and which do not involve any meaningful change in the quality and nature or any meaningful increase in the quantity ofthe emission of an air contaminant therefrom. Examples ofsuch changes in a process or process equipment include the following:

(i) Change in the supplier or formulation ofsimilar raw materials, fuels, or paints and other coatings.

(ii) Change in the sequence ofthe process. (iii) Change in the method of raw material addition. (iv) Change in the method of product packaging. (v) Change in process operating parameters. (vi) Installation ofa floating roof on an open top petroleum storage tank. (vii) Replacement of a fuel burner in a boiler with an equally or more thermally efficient burner.

(viii) Lengthening a paint drying oven to provide additional curing time. (c) Changes in a process or process equipment which do not involve installing, constructing, or reconstructing an emission unit and which involve a meaningful change in the quality and nature, or a meaningful increase in the quantity, ofthe emission ofan air contaminant resulting from any ofthe following:

(i) Changes in the supplier or supply ofthe same type ofvirgin fuel, such as coal,

no. 2 fuel oil, no. 6 fuel oil, or natural gas.

(ii) Changes in the location, within the storage area, or configuration ofa material storage pile or material handling equipment.

(iii) Changes in a process or process equipment to the extentthat such changes do not alter the quality and nature, or increase the quantity, ofthe emission ofthe airMICHIGAN STATEIMPLEMENTATION PLAN

-24-



### contaminant beyond the level which has been described in and allowed by an approved permit to install, permit to operate, or order ofthe department.

(d) Reconstruction or replacement of air pollution control equipment with equivalent or more efficient equipment.

(e) Installation, construction, or replacement of air pollution control equipment for

an existing process or process equipment for the purpose of complying with the national emission standards of hazardous air pollutants regulated under section 112 of part A oftitle I ofthe clean air act, 84 Statutes 1685, 42 U.S.C. §7412.



### (f) Installation or construction ofair pollution control equipment for an existing process or process equipment ifthe control equipment itself does not actually generate a significant amount ofcriteria air contaminants as defined in R 336.1119(e) or a meaningful quantity oftoxic aircontaminants.

(g) Internal combustion engines that have less than 10,000,000 Btu/hour maximum heat input.

(h) Vacuum pumps in laboratory or pilot plant operations. (i) Brazing, soldering, welding, or plasma coating equipment. 

### U) Portable cutting torches. (k) Grain, metal, or mineral extrusion presses. (I) The following equipment and any exhaust system or collector exclusively serving the equipment:

(i) Equipment used exclusively for bending, forming, expanding, rolling, forging, pressing, drawing, stamping, spinning, or extruding either hot or cold metals.

(ii) Die casting machines. (iii) Equipment for surface preparation of metals by use of aqueous solutions, except for acid solutions.

(iv) Atmosphere generators used in connection with metal heat treating processes. (v) Equipment used exclusively for sintering ofglass or metals, but not exempting equipment used for sintering metal-bearing ores, metal scale, clay, flyash, or metal compounds.

(vi) Equipment for carving, cutting, routing, turning, drilling, machining, sawing, surface grinding, sanding, planing, buffing, sand blast cleaning, shot blasting, shot peening, or polishing ceramic artwork, leather, metals, graphite, plastics, concrete, rubber, paper stock, wood, or wood products which meets any ofthe following:

(A) Equipment used on a nonproduction basis. (B) Equipment has emissions that are released only into the general in-plant environment.

(C) Equipment has externally vented emissions controlled by an appropriately designed and operated fabric filter collector that, for all specified operations with metal, is preceded by a mechanical precleaner.

(vii) Photographic process equipment by which an image is reproduced upon material sensitized to radiant energy, including any ofthe following:

(A) Blueprint machines. (B) Photocopiers. (C) Mimeograph machines. (D) Photographic developing processes. (E) Microfiche copiers.MICHIGAN STATEIMPLEMENTATION PLAN

(viii) Battery charging operations. (ix) Pad printers. -25-

(m) Lagoons, process water treatment equipment, wastewater treatment equipment, and sewage treatment equipment, except for any ofthe following:

(i) Lagoons and equipment primarily designed to treat volatile organic compounds in process water, wastewater, or groundwater, unless the emissions from the lagoons and equipment are only released into the general in-plant environment.

(ii) Sludge incinerators and dryers. (iii) Heat treatment processes. (iv) Odor control equipment. (n) Livestock and livestock handling systems from which the only potential air contaminant emission is odorous gas.

(o) Equipment for handling and drying grain on a farm. (p) Commercial equipment used for grain unloading, handling, cleaning, storing, loading, or drying in a column dryerthat has a column plate perforation of not more than 0.094 inch or a rack dryer in which exhaust gases pass through a screen filter

no coarser than 50 mesh.

(q) Portable steam deicers that have a heat input of less than 1,000,000 Btu's per hour.

(r) Equipment used for any ofthe following metal treatment processes ifthe process emissions are only released into the general in-plant environment:

(i) Surface treatment. (ii) Pickling. (iii) Acid dipping. (iv) Cleaning. (v) Etching. (vi) Electropolishing. (vii) Electrolytic stripping or electrolytic plating. (s) Emissions or airborne radioactive materials specifically authorized pursuant to

a United States nuclear regulatory commission license.

(t) Equipment for the mining and screening of uncrushed sand, gravel, soil and other inorganic soil-like materials.

(u) Solvent distillation equipment that has a rated batch capacity of not more than 55 gallons.

(v) Any vapor vacuum extraction soil remediation process where vapor is treated in

a control device and all ofthe vapor is reinjected into the soil such that there are no emissions to the atmosphere during normal operation.

(w) Air strippers controlled by an appropriately designed and operated carbon adsorption or incineration system that is used exclusively for the cleanup of gasoline, fuel oil, natural gas condensate, and crude oil spills.

(x) Any asbestos removal or stripping process or process equipment. (y) Ozonization process or process equipment. (z) Combustion of boiler cleaning solutions that were solely used for or intended for cleaning internal surfaces of boiler tubes and related steam and water cycle components ifthe solution burned is not designated, by listing or specified characteristic, as hazardous pursuant to federal regulations or state rules.MICHIGAN STATE IMPLEMENTATION PLAN

-26-



### (aa) Landfills and associated flares and leachate collection and handling equipment.

(bb) A residential, municipal, commercial, or agricultural composting process or process equipment.

(cc) Gun shooting ranges controlled by appropriately designed and operated highefficiency particulate filters.

(dd) Equipment for handling, conveying, cleaning, milling, mixing, cooking, drying, coating, and packaging grain-based food products and ingredients which meet any ofthe following:

(i) Equipment used on a nonproduction basis. (ii) Equipment has emissions that are released only into the general in-plant environment.

(iii) Equipment has externally vented emissions controlled by an appropriately designed and operated particulate control system.

(ee) Open burning. (ff) 

### Fire extinguisher filling, testing, spraying, and repairing. (gg) Equipment used for chipping, flaking, or hogging wood or wood residues that

are not demolition waste materials.

(hh) A process that uses only hand-held aerosol spray cans, including the puncturing and disposing ofthe spray cans.

(ii) Fuel cells that use phosphoric acid, molten carbonate, proton exchange membrane, or solid oxide or equivalent technologies.



### Ui) Any vacuum truck used at a remediation site as a remedial action method, if it is not used more than once per month at a site and the usage is not more than 2 consecutive days.

(kk) Air sparging systems where the sparged air is emitted back to the atmosphere only by natural diffusion through the contaminated medium and covering soil or other covering medium.

(II) Air separation or fractionation equipment used to produce nitrogen, oxygen, or other atmospheric gases.

(mm) Routine and emergency venting of natural gas from transmission and distribution systems or field gas from gathering lines which meet any ofthe following:

(i) Routine or emergency venting of natural gas or field gas in amounts less than or equal to 1,000,000 standard cubic feet per event. For purposes ofthis rule, an emergency is considered an unforeseen event that disrupts normal operating conditions and poses a threat to human life, health, property orthe environment if not controlled immediately.

(ii) Venting of natural gas in amounts greaterthan 1,000,000 standard cubic feet for routine maintenance or relocation oftransmission and distribution systems provided that both ofthe following requirements are met:

(A) The owner or operator notifies the department prior to a scheduled pipeline venting.

(B) The venting includes, at a minimum, measures to assure safety ofemployees and the public, minimize impacts to the environment, and provide necessary notification in accordance with the Michigan gas safety standards, the federalMICHIGAN STATE IMPLEMENTATION PLAN

-27-



### pipeline and hazardous materials safety administration standards, and the federal energy regulatory commission standards, as applicable.

(iii) Venting offield gas in amounts greater than 1,000,000 standard cubic feet for routine maintenance or relocation of gathering pipelines provided that both ofthe following are met:

(A) The owner or operator notifies the department prior to a scheduled pipeline venting.

(B) The venting includes, at a minimum, measures to assure safety ofemployees and the public, minimize impacts to the environment, and provide necessary notification in accordance with the Michigan department ofenvironmental quality, office of geological survey, and the Michigan public service commission standards,

as applicable.

(iv) Emergency venting of natural gas or field gas in amounts greaterthan 1,000,000 standard cubic feet per event, provided that the owner or operator notifies the pollution emergency alert system or PEAS within 24 hours ofan emergency pipeline venting. For purposes ofthis rule, an emergency is considered an unforeseen event that disrupts normal operating conditions and poses a threat to human life, health, property or the environment if not controlled immediately.

R 336.1288 Permit to install exemptions; oil and gas processing equipment.

Rule 288. The requirement of R 336.1201(1) to obtain a permit to install does not apply to any ofthe following:

(a) Gas odorizing equipment. (b) A glycol dehydrator that meets either ofthe following conditions: (i) It is located at an oil well site and is controlled by a condenser or by other control equipment ofequivalent or better efficiency than the condenser.

(ii) It is located at a site or facility that only processes natural gas from the Antrim

zone.

(c) A sweet gas flare. (d) Equipment for the separation or fractionation of sweet natural gas, but not including natural gas sweetening equipment.

(e) Equipment that is used for oil and gas well drilling, testing, completion, rework, and plugging activities.

R 336.1299 Adoption of standards by reference. Rule 299. (1) The following standards are adopted in these rules by reference and are available as noted: (a) "1996 TLVs and BEis. Threshold Limit Values for Chemical Substances and Physical Agents. Biological Exposure Indices," American conference of governmental industrial hygienists. For the purposes of R 336.1232, the chemical

names and threshold limit values are adopted by reference. A copy may be inspected at the Lansing office of the air quality division of the department of environmental quality. A copy may be obtained from the Department of Environmental Quality, Air Quality Division, P.O. Box 30260, Lansing, Michigan 48909-7760, at a cost as ofthe time of adoption ofthese rules of$11.00, or from the American Conference of Governmental Industrial Hygienists, 1330 Kemper MeadowMICHIGAN STATEIMPLEMENTATION PLAN

-28-



### Drive, Cincinnati, Ohio 45240, at a cost as ofthe time ofadoption ofthese rules of $11.00. The American Conference ofGovernmental industrial Hygienists can also be contacted on the internet at www.acgih.org, by telephone at 513-742-2020, or by email at mail@acgih.org. (b) "NIOSH Pocket Guide to Chemical Hazards," national institute for occupational safety and health, June 1994. For the purposes of R 336.1232, the chemical names and NIOSH-recommended exposure levels are adopted by reference. A copy may be inspected at the Lansing office ofthe air quality division ofthe department ofenvironmental quality. A copy may be obtained from the Department of Environmental Quality, Air Quality Division, P.O. Box 30260, Lansing, Michigan 48909-7760, at a cost as ofthe time ofadoption ofthese rules of$14.00,

or from the National Technical information Service, 5285 Port Royal Road, Springfield, Virginia 22161, NTIS document PB95-100368, at a cost as ofthe time of adoption ofthese rules of $14.00. The National Technical information Service can also be contacted on the internet at www.ntis.gov or by telephone at 888-584-8332. (c) "Guidelines for Carcinogen Risk Assessment," 1986, United States environmental protection agency, 51 F.R. pp. 33992 to 34003. Copies may be obtained from the Department of Environmental Quality, Air Quality Division, P.O. Box 30260, Lansing, Michigan 48909-7760, at no cost, or from CERI, Office of Resource Information, United States Environmental Protection Agency, 26 Martin Luther King Drive, Cincinnati, Ohio 45268, EPA document no. EPA 600/8-87/045, at

no cost. (2) The following standards are adopted in these rules by reference and are available as noted. Copies are available for inspection and purchase at the Air Quality Division, Department of Environmental Quality, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan 48909-7760, at a cost as ofthe time ofadoption ofthese rules (AQD price). Copies may be obtained from the Superintendent of Documents, Government Printing Office, P.O. Box 371954, Pittsburgh, Pennsylvania, 15250-7954, at a cost as of the time of adoption ofthese rules (GPO price), or on the United States government printing office internet web site at http://www.access.gpo.gov: (a) The federal acid rain program, 40 C.F.R. §§72.1 to 72.96 (2006), 40 C.F.R. §§74.1 to 74.61 (2006), and 40 C.F.R. §§76.1 to 76.15 (2006), AQD price $72.00; GPO price $62.00. When used in these federal regulations, the term "permitting authority" shall mean the department and the term "administrator" shall mean the administrator ofthe United States environmental protection agency. Ifthe provisions

or requirements of40 C.F.R. §§72.1 to 72.96, 40 C.F.R. §§74.1 to 74.61, or 40 C.F.R. §§76.1 to 76.15 conflict with, or are not included in, R 336.1210 to R 336.1218, then the 40 C.F.R. §§72.1 to 72.96 and 40 C.F.R. §§76.1 to 76.15 provisions and requirements shall apply and take precedence. (b) The federal hazardous air pollutant regulations governing constructed or reconstructed major sources, 40 C.F.R. §§63.40 to 63.44 (2006) and 63.50 to 63.56 (2006), AQD price $68.00; GPO price $58.00. When used in these federal regulations, the term "permitting authority" shall mean the department and the term "administrator" shall mean the administrator of the United States environmental protection agency.MICHIGAN STATEIMPLEMENTATION PLAN

-29-

(c) The federal compliance assurance monitoring regulations, 40 C.F.R. §§64.1 to 64.10 (2006), AQD price $39.00; GPO price $29.00. When used in these federal regulations, the term "permitting authority" shall mean the department, and the term "administrator" shall mean the administrator ofthe United States environmental protection agency. (d) Title 40 C.F.R. §51.160(f), "Legally enforceable procedures," and appendix W, "Guideline on Air Quality Models" (2006); AQD price $55.00; GPO price $45.00. (3) For the purpose ofclarifying the definitions in these rules, the following documents are adopted by reference in these rules. Copies are available for inspection and purchase at the Air Quality Division, Department of Environmental Quality, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan 48909-7760, at a cost as ofthe time ofadoption ofthese rules (AQD price). Copies ofthe documents may be obtained from the Superintendent of Documents, Government Printing Office, P.O. Box 371954, Pittsburgh, Pennsylvania, 15250-7954, at a cost

as ofthe time ofadoption ofthese rules (GPO price), or on the United States government printing office internet web site at http://www.access.gpo.gov: (a) Title 40 C.F.R. §§51.165, "Permit requirements," and 51.166, "Prevention of significant deterioration ofair quality" (2006), AQD price $55.00/$45.00 GPO price. (b) Title 40 C.F.R., §52.21, "Prevention of Significant Deterioration ofAir Quality" (2006), AQD price $70.00/$60.00 GPO price. (c) Title 40 C.F.R., part 60, "Standards of Performance for New Stationary Sources," (2006), AQD price $68.00/$58.00 GPO price for 60.1-end and AQD price $67.00/$57.00 GPO price for the appendices. (d) Title 40 C.F.R., part 61, "National Emission Standards for Hazardous Air Pollutants" (2006), AQD price $55.00/$45.00. (e) Title 40 C.F.R. §63.2, "Definitions," and §63.5(b)(3), "Requirements for existing, newly constructed and reconstructed sources" (2006), AQD price $68.00/$58.00 GPO price for 63.1-63.599. (f) Title 40 C.F.R. part 63, subpart EEE, "National Emission Standards for Hazardous Air Pollutants From Hazardous Waste Combustors" (2006), AQD price $60.00/$50.00 GPO price for 63.1200-63.1439. (g) Title 40 C.F.R. part 63, subpart 

### LLL, "National Emission Standards for Hazardous Air Pollutants From the Portland Cement Manufacturing Industry" (2006), AQD price $60.00/$50.00 GPO price for 63.1200-63.1439. (h) Title 40 C.F.R. §70.3 (2006), "Applicability," AQD price $39.00/$29.00 GPO price for Parts 64-71. (i) Title 40 C.F.R. §70.7(g) (2006), "Reopenings for cause by EPA," AQD price $39.00/$29.00 GPO price for Parts 64-71. U) Title 40 C.F.R. §70.8(a)(1) and (2) (2006), "Transmission of information to the Administrator," AQD price $39.00/$29.00 GPO price for Parts 64-71. (k) Title 40 C.F.R. §70.8(c) (2006), "EPA objection," AQD price $39.00/$29.00 GPO price for Parts 64-71. (I) Title 40 C.F.R. §70.8(d) (2006), "Public petitions to the Administrator," AQD price $39.00/$29.00 GPO price for Parts 64-71.

(4) The ASTM methods are adopted in these rules by reference. Copies are available for inspection and purchase at the Air Quality Division, Department ofMICHIGAN STATE IMPLEMENTATION PLAN

-30-



### Environmental Quality, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan 48909-7760, at the cost at the time ofadoption ofthese rules. Copies may also be obtained from the ASTM International, 100 Barr Harbor Drive, P

### .0. Box C700, West Conshohocken, Pennsylvania 19428-2959; the ASTM website at www.astm.org; or contact ASTM customer service at service@astm.org; at a cost as ofthe time of adoption ofthese rules as follows: (a) ASTM-D-396-05, "Standard Specification for Fuel Oils," $30.00. (b) ASTM-D-2880-03, "Standard Specification for Gas Turbine Fuel Oils," $30.00. (c) ASTM-D-975-05, "Standard Specification for Diesel Fuel Oils," $35.00.MICHIGAN STATE IMPLEMENTATION PLAN

### ·''"~.:"";.; ' ,**·'··~~--**

JENNIFER M. GRANHOLM

GOVERNOR MICHIGAN STATE IMPLEMENTATION PLAN

STATE OF M'ICJ-IJGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

LANSING



### CERTIFICATE OF ADOPTION 

# DE€\.

STEVEN E. CHESTER

DIRECTOR

I, Steven E. Chester, Director ofthe Department of Environmental Quality, do formally adopt the attached administrative rules byamending R 336.1201, R 336.1202, R 336.1205, R 336.1207, R 336.1211, R 336.1213, R 336.1214, 

### R 336.1214a, R 336.1219, R 336.1240, R 336.1241, R 336.1278, R 336.1281, 

### R 336.1284, R 336.1285, R 336.1288, and R 336.1299; by adding R 336.1277; and by rescinding R 336.1220 ofthe Michigan Administrative Code.

These rules are adopted pursuant to Sections 5503, 5505, 5506, and 5512 of Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended, and Executive Order 1995-18.

# (>zr~ 

# of

Steven 

### E. Chester, Director Date

SOAHR 2004-007EQ

CONSTffUTJON HALL • 525WEST ALLEGAN STREET

.. P.O. BOX 30473 •LANSING, MICHIGAN 48909-7973 www.michigan.gov • (BOO) 662-9278JENNIFER M. GRANHOLM
GOVERNOR MICHIGAN STATE IMPLEMENTATION PLAN

S'JATI: OF M'tCH!GAN DEPARTMENT OF ENVIRONMENTALQUALITY

LANSING

May 23,2008

Ms. Norene Lind, Administrative Rules Manager State Office ofAdministrative Hearings and Rules Department of Labor and Economic Growth Ottawa Building

- Fourth Floor 611 West Ottawa Lansing, Michigan 48933-1070

Dear Ms. Lind: · STEVEN E. CHESTER

DIRECTOR

SUBJECT: Certificate ofAdoption forAdministrative Rules Promulgated Pursuant to Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as Amended (Act451), SOAHR 2004-007EQ

The Certificate ofAdoption for the administrative rules promulgated pursuant to Part 55 ofAct 451 is being forwarded to you, along with a reference copy ofthe administrative rules, in accordance with the provisions of Executive Order 2005-1 and the January 5, 1996, memorandum from the former Office of Regulatory Reform. All relevant citations in the Part 2, Air Use Approval, rules have been changed to reflect the state's permitting authority in Part 18, Prevention ofSignification Deterioration ofAir Quality, and Part 19, New Source.Review for Major Sources Impacting NonattainmentAreas (2004-054EQ). In addition, R 336.1220 has been rescinded.

The rules were certified by the Legislative Service Bureau on December 5, 2007, and

were formally approved by your office on December 7, 2007. The rules were delivered to the Joint Committee on Administrative Rules on December 7, 2007.

Ifyou have questions or comments regarding the rule changes, please contact Ms. Susan Maul, Acting Regulatory Reform Officer, at517-241-1552, oryou may contact me.

Enclosures Sincerely,

# ~~~ Steven

. Chester Director 517-373-7917

CONSTITUTION HALL • 525WEST ALLEGAN STREET• P.O. BOX 30473 • LANSING, MICHIGAN 48909-7973 www.rnichlgan.gov• (800) 662-9276MICHIGAN STATE IMPLEMENTATION PLAN

Ms. Norene Lind 

### 2

cc: Mr. Jim Sygo, Deputy Director, DEQ Ms. Susan Maul, Acting Regulatory Reform Officer, DEQ Mr. G. Vinson Hellwig, DEQ Ms. Jane Permoda, DEQ Mr. Jeffrey Rathbun, DEQ cc/enc: AQD, SOAHR 2004-007EQ File May 23,2008MICHIGAN STATE IMPLEMENTATION PLANMICHIGAN STATEIMPLEMENTATION PLAN

STATE OF MICHIGAN

OFFICE: OF THE GOVERNOR

JENNIFER1'.1. GRANHOlM JID!Jt>6lilmiiii:R**~** February 22, 2003



### Mr. Thomas V. Skinner, Regional Administrator U.S.Environmental Protection Agency Region 5 77 WestJackson Boulevard (R-19J) Chicago, Dlinois 60604-3507

Dear

### Mr. Skinner:

Thefederal Clean AirAct (CAA) requiresMichigan to submitrevisions to the StateImplementationPlan. It also provides an opportunity for the state to request delegations andmakegrant applications to fund airqualityprograms.



### I hereby delegate my authority to make any submittal,request, or application undertheCAAtoDirectorStevenE. Chesterofthe Michigan Department of

·Environmental Quality (MDEQ). Thisdelegation was effective onJanuary 1, 2003.

cc:

### Mr. StevenE.Chester,Director,MDEQ 

### Mr. StanleyF.Pruss, DeputyDirector, MDEQ**"~"''"' ~~~**  *lt•t•tll

.....**~("** Sincerely,MICHIGAN STATE IMPLEMENTATION PLAN

# 0 MICHIGAN STATEIMPLEMENTATION PLAN



### Division

John C. Bollman, 

### Director



### CERTIFICATE OF APPROVAL

Ihereby certifY thatthe Legislative Service Bureauhas examined the

attachedproposedrules ofthe DepartmentofEnvironmental Quality, dated

January 18, 2007, amending R 336.1201, R 336.1202, R 336.1205, R 336.l207, R

336.1211, R 336.1213, R 336.1214, R 336.1214a, R 336.1219, R 336.1240, R

336.1241, R 336.1278,R 336.1281, R 336.1284, R 336.1285, R 336.1288, andR

336.1299, adding R 336.1277, and rescindingR 336.1220 ofthe Department's

rules entitled "AirPollution Control- Part 2. Air Use Approval," andfurther

certifythat, pursuant to section45 of 1969 P A 306, MCL 24.245, the Legislative

Service Bureau approves the rules as to form, classification, and arrangement.

Dated: December 5, 2007

LEGISLATIVE SERVICE BUREAU

MichiganLegislature 124 W. Allegan Street, 3'' Floor o P.O. Box 30036 • Lansing, MI 48909-7536 • (517) 313-9425 o Fax: (517) 373-5642MICHIGAN STATE IMPLEMENTATION PLAN

STATE OF MICHIGAN JENNIFER M. GRANHOLM STATE OFFICE OF ADMINISTRATIVE HEARINGS AND RULES GOVERNOR



## LEGAL CERTIFICATION OF RULES PETER l. PLUMMER EXECUTIVE DIRECTOR

I certifythat I have examined the attached administrativerules, dated January 18, 2007, inwhich the DepartmentofEnvironmental Qualityproposesto modifY aportion ofthe Michigan Administrative Codeentitled, 

### ''AirPollution Control- Part2. Air Use

### Approval," by:

• Rescinding R 336.1220.

• AddingR336.1277.

• AmendingR 336.1201; R 336.1202, R 336.1205,R 336.1207, R 336.1211, R 336.1213, R 336.1214, R 336.1214a, R 336.1219, R 336.1240,R 336.1241, R 336.1278, R 336.1281,R 336.1284, R 336.1285,R 336.1288, and R 336.1299.

TheLegislative ServiceBureauhas approved theproposedrules as to form, classification, and arrangement.

I approve therules as to legalitypursuantto theAdministrative Procedures Act, MCL 24.201 etseq. and Executive OrderNo. 2005·1. Incertifyingthe rules asto legality, I have determined thatthey are within the scope ofthe authorityofthe agency, do not violate constitutional rights, and are in conformitywith the requirements oftheAdministrative Procedures Act.

Dated:

# /t; 'f·

2004-007 EQ State Office ofAdministrativeHearings and Rules

STATE OFFICE OFADMINISTRATIVE HEARINGS AND RULES 611 W. OTTAWA STREET • P.O. BOX 30695 • LANSING, MICHIGAN 48909-8195 wv.w.michigan.gov • (517) 335-2484MICHIGAN STATEIMPLEMENTATION PLAN

STA.TE OF MICHIGA-N

oFFlCE OF THE GOVERNOR

JENNIFER M. GRANHOLM**~** OO/EI'lNOO February 22, 2003



### Mr. ThomasV.**Sklnn~r,** Regional Administrator U.S. Environmental Protection Agency Region 5 77 WestJackson Boulevard (R-19J) Chicago, lllinois 60604-3507

Dear

### Mr. Skinner:

Thefederal Clean AirAct(CAA) requiresMichigan to submitrevisions to the StateImplementation Plan. It also provides an opportunityforthe state to request delegations.andmake grantapplications to fund air quality programs.

I hereby delegate my authority to make any submittal, request, orapplication underthe CAAtoDirectorStevenE. Chesterofthe Michigan Depanment of ·Environmental Quality (MDEQ). This delegation was effective on January 1, 2003.

cc: 

### Mr. StevenE. Chester,birector,MDEQ 

### Mr. Stanley

### F. Pruss, DeputyDirector,MDEQ

......1('1>**"~ IIH•~•fll** **~·"f~** Sincerely,MICHIGAN STATEIMPLEMENTATION PLANTo: Secretaryofthe Senate 

### .·bEF'AR1ME:NtOF STATE

June 20, 2008



### NOTICE OFFILING ADMINISTRATIVE RULES

Clerk ofthe House ofRepresentatives Joint Committee onAdministrative Rules State Office ofAdministrativeHearings and Rules (08-06-07) Legislative ServiceBureau (2004-007 EQ)

# ~~:::~~~~**~~t?Jo=:e~~~nQ~;I~~rowth** RECEIVED

JUN 2 

### 6 2008



### AIR QUALITY DIV.

In accordance withthe provisions ofSection 46(1) ofAct 306, PublicActs of 1969, as amended, andExecutive Order 1995-6 this is to adviseyou thatthe Michigan DepartmentofLabor and Economic Growth, State Office ofAdministrative Hearings andRules filed at 4:37 P.M. this date, administrative rule (08-06-07) for theDepartment ofEnvironmental Quality "Part2. Air UseApproval".

Theserules take effect immediately afterfiling with the SecretaryofState.

Sincerely,

Terri Lynn Land SecretaryofState

# ~tk.d-W/~ Robin Houston, Office Supervisor Office oftheGreat Seal

Enclosure

OFFICE OF THE GREAT SEAL 108 SOUTH WASHINGTON SQUARE, SUITE 1 • LANSING, MICHIGAN 48918 1·8BB·SOS·MICH (1 ·888·767·6424)

www. Mlchlgan.gov/sosMICHIGAN STATEIMPLEMENTATION PLANMICHIGAN STATEIMPLEMENT AT/ON PLAN

Agency Reportto the JOINT COMMITTEE ON ADMINISTRATIVE RULES

This form mnst be completed by the department/agency that has the statutory authority for promulgating the rules. Please send an electronic copy of this form to the State Office of Administrative Hearings and Rules (SOAHR) at soahr_rules@michigan.gov. The SOAHRwill reviewthe document,thenewspaperadvertisements, andthecorrespondingrulespriorto completing thelegal certificationoftherules. Pleasebe sureto sendtothe SOAHRproofsofpublicationfor the threenewspaperadvertisementsrequiredby MCL24.242(1). Youmay mailthemorsend themas a scanned attachment.

Department 

## I Environmental Quality

Rule setnumber 2004-007EQ

Title ofrules: 

# IMichigan Air Pollution Control Rules, Part 2- Air UseApproval

Ann Halbeisen, Constitution Hall; Phone 517-373-7045; Fax 517-241-7499

2. Purpose for the_j)roposed rules and background: Rule packages SOAHR 2004-006EQ, 2004-007EQ, and 2004-054EQ contain the rules necessary to implement a complete, modern New Source Review (NSR) program that meets all federal requirements for permitting major sources in nonattainment areas. These rules were developed, togetherwith SOAHR 2004-00BEQ (which consists of rules for NSR permitting in attainment areas), for the purpose ofachieving a complete NSR permitting State Implementation Plan (SIP) for Michigan. Currently, the AQD permits major sources ofair pollution located in nonattainment areas through R 336.1220. R 336.1220 has been approved by the U.S. Environmental Protection Agency (EPA) into Michigan's SIP; however, it reflects federal requirements from the mid-1980's.

These rules packages adopt the most recent federal permitting requirements (40 C.F.R. §51.165). These changes are necessary to satisfy a federal mandate, because the EPA required that all states adopt these rules (that is, 40 C.F.R. §51.165) by January 2, 2006. This mandate, which is called a "SIP Call," was published in the Federal Registeron December 31, 2002, at 67 F.R. 80186, 80240-41. The EPA could sanction Michigan for not meeting the federal mandate. Sanctions could include a moratorium on new construction in the state, a loss offederal grant funds, and a loss offederal highway funds.

These rules are the product ofextensive stakeholder input. The stakeholder group consistedMICHIGAN STATEIMPLEMENTATION PLAN



### - 2 -

mainly of members ofthe industrial sector and representatives ofthe environmental community. The first stakeholder meeting was held on March 19, 2004, and the final meeting was held on March 14, 2006. All ofthe proposed rules are supported by the stakeholderworkgroup. Additionally, the Department of Environmental Quality's (DEQ's) Environmental Advisory Council was briefed on the rule development on June 17, 2004.



### 3. Summary ofproposed rules: This rule package contains the addition of 1 rule, the revision of 16 rules, and the rescission of 1 rule. The proposed new rule is R 336.1277 (Rule 277). Revisions are to R 336.1201, R 336.1202, R 336.1205, R 336.1207, R 336.1211, R 336.1214, R 336.1214a, R 336.1219, R 336.1240, R 336.1241, R 336.1278, R 336.1281, R 336.1284, R 336.1285, R 336.1288, and R 336.1299 (Rules 201, 202, 205, 207, 211, 214, 214a, 219, 240, 241, 278, 281, 284, 285, 288, and 299). The proposed rescission is R 336.1220 (Rule 220).

Rule 220 contains the AQD's current permitting rule for major sources of air pollution located in nonattainment areas. Rule 220 reflects federal permitting requirements as they existed during the early 1980s. Rule 220 is being rescinded and replaced with 2004-054EQ (Part 19) which contains rules reflecting current federal permitting requirements for major sources ofair pollution located in nonattainment areas. The new rules reflect all recent changes to 40 C.F.R. §51.165. These changes were promulgated by the EPA in an effort to clarify applicability and to encourage efficiency improvements at existing permitted sources. Additionally, citations in Rules 201, 202, 205, 207, 214a, 240, and 278 have been updated to refer to Part 19.

Rules 281, 284, 285, and 288 contain new exemptions from minor source permitting requirements for facilities with very small sources ofair pollution. The changes to these exemptions are as follows:

• R 336.1281; Permit to install exemptions; cleaning, washing and drying equipment. Rule 281 (e) was changed to require that, ifvolatile organic compounds (VOCs) are used in the process forwashing or drying the material, then the VOC vapor pressure must be less than 0.1 millimeter of mercury at standard conditions. Previously, no VOCs could be used in the process.

• R 336.1284; Permit to install exemptions; containers. An exemption was added under Rule 284(n) which allows the storage of methanol in a vessel that has a capacity of not more than 30,000 gallons.

• R 336.1285; Miscellaneous Exemptions Under Rule 285(1)(vi), graphite was added to the list of materials. Also under Rule 285(t), soil was added as a material that can be mined and screened. Additionally, a new exemption was added under Rule 285(mm) that allows for the routine and emergency venting of natural gas from transmission and distribution systems orfield gas from gathering lines.

• R 336.1288; Permit to install exemptions; oil and gas processing equipment. Under Rule 288(b), some clarifications were made regarding the exemption for glycol dehydrators, mainly where it is located and the minimum control equipment required to meet the exemption. The clarifications were made to reflect the exemption memo requirements as they appeared in the May 27, 1997, memo as written by Dennis M. Drake, Air Quality Division Chief, at that time.MICHIGAN STATEIMPLEMENTATION PLAN

- 3 -

Rules 211 and 214 contain updated citations to federal requirements for the state's renewable operating permit (ROP) program.

Rule 219 is being changed back to a discretionary "requirement," because the rule was inadvertently changed in July 2003 to a mandatory requirement. This happened because a sentence was removed from the beginning ofthe rule that previously made it clear that, at the discretion ofthe owner, a notice could be submitted to the DEQ when a change in ownership or
name occurred at the facility. At the request ofthe regulated community and also AQD district staff, it was decided to change the rule back to how it was originally intended to be.

Rules 240 and 241 adopt by reference federal modeling requirements. Rule 240 pertains to modeling required for prevention of significant deterioration and new source review for major

sources in nonattainment areas. Rule 241 pertains to air quality modeling demonstrations that

are required by the DEQ which are not subject to Rule 240. Modeling that falls under the requirements of Rule 241 shall follow the procedures and methods referenced in Rule 240, except for the demonstration may be based on the maximum ambient predicted concentration using the most recent calendar year of meteorological data from a representative national weather service, federal aviation administration station, or site-specific measurement station.

Rule 277 is a new rule that allows some activities at sources covered by a Plantwide Applicability Limit (PAL) to be exempt from minor source permitting requirements. Rule 277 contains provisions synchronizing the AQD's Rule 201 minor permit to install program with the

new PAL provisions allowed by the federal rules and reflected in Rule 1907 of Part 19. Rule 277 will apply to sources with PALs regardless ofwhetherthe source is located in an attainment

or a nonattainment area.

Rule 299 adopts by reference a number ofdocuments. Several new documents are being adopted by reference in the rules and these adoptions have been added to Rule 299.

4. Name ofnewspapers and date ofpublication in newspapers (minimum 3
newspapers ofgeneral circulation, representing different parts ofthe state, one ofwhich
mustbe located in theUpper Peninsula): The notice was published November 16, 2006, in the following newspapers: Lansing State Journal Grand Rapids Press Pontiac Oakland Press Marquette Mining Journal

5. Time, date, location and duration of ublic hearin :

6. Date of ublication ofrules and

November 15, 2006MICHIGAN STATEIMPLEMENTATION PLAN



### -4-

7. Agency representative(s) attendinghearing (include agency name andtitle of representative[s]): The following attended from the Michigan Department of Environmental Quality:

Bryce Feighner, Supervisor, Chemical Process Unit, Permit Section, AQD Lynn Fiedler, Supervisor, Permit Section, AQD Mary Ann Halbeisen, Administrative Rules Coordinator, AQD Marion Hart, Supervisor, Administration Section, AQD Jeffrey Rathbun, Engineer, Permit Section, AQD Holly Gohlke, Environmental Quality Analyst, Water Bureau James Ostrowski, Environmental Quality Analyst, Environmental Science and Services

8. Names, organizations and (complete) addresses ofpersons attendh1gthe hearing: Kent Evans, Director, Air Quality Services, Consumers Energy, 1945West Parnell Road, Jackson, Ml 49201 Mike Johnston, Director of Regulatory Affairs, Michigan Manufacturers Association, 620 Capitol Avenue, Lansing, Ml 48933 Angela Riess, Michigan Department ofAgriculture, 525 West Allegan Street, Lansing, Ml 48933

9. Persons submitting letters, comments and testimony ofsupport: Julie C. Becker, Alliance ofAutomobile Manufacturers, 1401 Eye Street, NW, Suite 900, Washington, DC 20005-6562 Kent Evans, Director, Air Quality Services, Consumers Energy Kathryn R. Ross, Consumer Energy Mike Johnston, Director of Regulatory Affairs, Michigan Manufacturers Association Kent Evans on behalf of Michigan Natural Gas Coalition

10. Persons submitting letters, comments and testimony ofopposition: Patricia A. Perry Jaime Long Nancy Chrivia

11. Summary ofsuggestions to modify proposed rules:

General Comment: Five comments were received generally supportive ofthe proposed rule changes with a few exceptions noted below.

AQD Response: The AQD has revised the rules in response to comments received, and the revised rules are dated Janua 18, 2007.MICHIGAN STATE IMPLEMENT AT/ON PLAN



### - 5 -

R 336.1277 (Rule 277) Comment: The Alliance ofAutomobile Manufacturers and Michigan Manufacturers Association commented that Rule 277 goes beyond the federal standard, and they appreciate the agency's intent to make this a state only enforceable provision and not including it in the SIP.

AQD Response: Rule 277 is intended to be a state only rule and it will not be submitted to the EPA as a SIP revision.

R 336.1285(tl (Rule 285) Comment: Rule 285(t) is a permit to install exemption for equipment for the mining and screening of uncrushed sand and gravel. Consumers Energy suggested that the language in Rule 285(t) be amended, because the company routinely uses bottom-ash material in the construction of ash disposal landfills and roadways. The proposed permit to install language would ensure that Consumers could continue to utilize the bottom-ash material for construction purposes and affords consideration ofthe beneficial re-use ofthe material, which would otherwise be awaste product.

AQD Response: The AQD agrees with this suggestion, and the language in Rule 285(t) has been changed to read as follows:

"Equipment forthe mining and screening of uncrushed flative sand, gravel,afld- soil, and other inorganic soil-like materials."

R 336.1285(mml (Rule 285) Comment: Rule 285(mm) is a new exemption for the venting offield gas or natural gas. The Michigan Natural Gas Coalition (MNGC) suggested that the AQD change the language in Rule 285(mm) to allow the reporting of routine (scheduled) gas venting just after such an event

occurs.

AQD Response: The AQD's intention has always been that notifications for routine gas venting must be priorto the venting of gas in amounts greaterthan 1,000,000 standard cubic feet. The initial language proposed said the owner or operator had to notify the AQD district supervisor at least 72 hours prior to a scheduled pipeline venting. The MNGC requested that the language be changed to read that the owner or operator had to notify the AQD district supervisorwithin 72 hours of a scheduled pipeline venting.

It was stressed that AQD must be informed about a scheduled event prior to the event so that district staffwould be prepared in case calls about the venting were received from the public. Ultimately, the language ended up being changed to"

...the owner or operator notifies the department prior to a scheduled pipeline venting" (dropped the 72 hours), because the main

concern was that the AQD be notified prior to the scheduled venting.

AQD does not agree with the requested changes to the Rule 285(mm) exemption.

Comment: Patricia Perry of Lewiston commented that she was opposed to venting of gas wells and lines.

AQD Response: The Air Pollution Control Rules dictate that the release of any air contaminant requires a permit to install. Natural Qas and field Qas meet the definition ofan air contaminantMICHIGAN STATEIMPLEMENTATION PLAN



### - 6-

underthe rules. Currently, there is no existing Air Pollution Control Rule that exempts the venting of natural gas orfield gas from the requirement to obtain a permit to install.

Venting of natural gas is regulated by the Michigan Public Service Commission, the United States Department ofTransportation, and the Federal Energy Regulatory Commission. Venting offield gas is regulated by the Michigan Department of Environmental Quality, Office of Geological Services, and the Michigan Public Service Commission. The industry also has

owner or operator's construction and maintenance practices in place to ensure safety and minimize emissions.

The AQD has determined that existing government regulations adequately deal with safety and minimize air quality impacts from these venting activities.

Comment: Jaime Long and Nancy Chrivia were opposed to Rule 285(mm) and requested that the AQD move the hearing to Gaylord or at least somewhere closer to Gaylord.

AQD Response: The AQD had advertised the public hearing on 35 rules in four newspapers
on November 16, 2006. A majority ofthe rules affected the southeastern part of Michigan, so holding the hearing in Lansing was a more central location. Moving the hearing just eight days before the hearing would have been very costly and most likely would have delayed the hearing and the rules process. Therefore, the AQD proceeded with holding the hearing in Lansing as scheduled. Every effort was made to accommodate the citizens in providing them with the hearing documentation and taking their written comments.

Date report completed: 

## IJanuary 31, 2007

(SOAHR-JCAR June 2005)MICHIGAN STATEIMPLEMENTATION PLANMICHIGAN STATEIMPLEMENTATION PLAN

Department of Environmental Quality

Opening Statement By: Marion Hart, Hearings Officer

December 20, 2006

Introduction

Good morning ladies and gentlemen. My name is Marion Hart, and I am the Supervisor ofthe Administration Section in the Air Quality Division ofthe Michigan Department of Environmental Quality. I will be serving as the Hearing Officer for this public hearing on the revision of Parts 1 and 2 ofthe Air Pollution Control Rules and the addition of Part 19.

With me today are other DEQ staffwho will be assisting with this hearing. Seated with me on my right are Jeffrey Rathbun, ofthe Permit Section, who prepared the rule revisions, and on my left Lynn Fiedler, Supervisor ofthe Permit Section, who is representing the Director ofthe Department of Environmental Quality, the decision-maker on administrative rules.

Hearing Agenda

To describe howthis is going to worktoday, I will begin with some background information aboutwhy we are here today. I will then describe the purpose ofthe hearing and how your comments will be used. Following that, Iwill outline the procedures underwhich we will take your comments and then describe what will happen aftertoday's hearing. It will then be your time to provide comments, and we will spend the majority oftime today listening to those comments. At the end ofthe hearing, Iwill provide a short summary and closing.

Background Information

By way of background information, the Air Quality Division is responsible for protecting Michigan's air resources. The law governing those responsibilities is Sections 5503, 5505, and 5512 of Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended

.. We are here today for a public hearing on amendments to Parts 1 and 2 and the addition of Part 19 to the administrative rules forAir Pollution Control, SOAHR Nos. 2004-006EQ, 2004-00?EQ, and 2004-054EQ.

I will now ask Jeff Rathbun to briefly summarize the proposed revisions.

Purpose of Public Hearing

In order for rule promulgation to occur, the DEQ must follow the procedures setforth in the Administration Procedures Act of 1969 and the State Office ofAdministrative Hearings and Rule's procedures.

The purpose oftoday's hearing is to give anyone interested in the proposed rules an opportunity to provide information that the DEQ can use in making the decision. Please recognize that the DEQ can only use the information you provide if it relates to the criteria that the DEQ rnust use in making a decision.

Procedures



### 1MICHIGAN STATE IMPLEMENTATION PLAN

In just a minute, I will outline the procedures we will use in taking your comments today. Before I do so, however, I need to mention that the notice ofthis hearing was published in the Oakland Press, Grand Rapids Press, Lansing State Journal, and Marquette Mining Journal on November 16, 2006. The notice and proposed rules were also published in the Michigan Register on November 15, 2006. Copies ofthe hearing notice, Regulatory Impact Statement, proposed rules, and summary of the proposed rules were made available to those interested and are available here today.

As you came today, you were given an opportunity to fill out a public comment card. We request that everybody fill out a card and indicate if you wish to make comments. We will use these cards to maintain a record of people interested in the proposed rules and to call upon those who want to make a statement today. To ensure that the hearing is conducted in afair
manner, we will follow these steps:

1. I will call on those who have indicated on the cards that they would like to speak in the general order in which the cards were turned in. When all the cards have been completed, Iwill ask if anyone else would like to make a statement.

2. When your name is called, please come to the microphone, face me, and make your statement. Ifyou have written comments or materials you would like to present, please hand them to me as you come to the microphone. As you begin your comments, please state your name and any group or association you may represent.

How the Information Will be Used

This hearing is being recorded and your comments will be a part ofthe information the DEQ will consider in making its decision on the proposed rules. The public comment period for the proposed rules ends today at 5:00p.m.

Following the public hearing, the DEQ staffwill review all comments and prepare an Agency Report, which includes the response to comments. The Agency Report will be available on the DEQ website or by contacting the Air Quality Division office. The proposed rules and the Agency Report will be submitted to the State Office ofAdministrative Hearings and Rules and the Joint Committee on Administrative Rules. Following JCAR, the rules will be filed with the Secretary of State and become effective immediately. It is estimated this process will take approximately four to five months.

Thank you for your attention

.. Iwill now begin calling the names ofthose who have indicated they would like to make a statement.

Closing Statement

Thank you for your comments and cooperation today. We appreciate your interest in_these proposed rules and that you took the time to be here today.

As indicated at the beginning ofthe hearing, the closing date ofthe public comment period is today at 5:00 p.m. and an Agency Report will be prepared.

The hearing is now closed. Thank you again.



### 2MICHIGAN STATEIMPLEMENTATION PLANMICHIGAN STATEIMPLEMENTATION PLAN

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Mary Ward MICHIGAN STATEIMPLEMENTATION PLAN

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# Michigan Register

Issue No. 20– 2006 (Published November 15, 2006)

# Michigan Register

Published pursuant to § 24.208 of The Michigan Compiled Laws

Issue No. 20— 2006 (This issue, published November 15, 2006, contains documents filed from October 15, 2006 to November 1, 2006)



### Compiled and Published by the 

# State Office of Administrative Hearings and Rules

## CONTENTS

PROPOSED ADMINISTRATIVE RULES, NOTICES OF PUBLIC HEARINGS

Department of Environmental Quality Air Quality Division (SOAHR # 2004-006) Part 1. General Provisions ................................................................................................2-16

Department of Environmental Quality Air Quality Division (SOAHR # 2004-007) Part 2. Air Use Approval ..................................................................................................17-47

Department of Environmental Quality Air Quality Division (SOAHR # 2004-054) Part 19. New Source Review for Major Sources Impacting Nonattainment Areas ........................................................................................................48-72

Department of Treasury Bureau of Bond Finance (SOAHR # 2005-096) School Bond Qualifications, Approval, and Loan Rules..................................................73-81

Department of Community Health Director’s Office (SOAHR # 2006-044) Board of Psychology – General Rules..............................................................................82-92

Department of Treasury Bureau of Bond Finance (SOAHR # 2006-060) General Sales and Use Tax Rules .....................................................................................93-99

ENROLLED SENATE AND HOUSE BILLS SIGNED INTO LAW OR VETOED

Table (2006 Session) ....................................................................................................................101-154

MICHIGAN ADMINISTRATIVE CODE TABLE

Table (2006 Session) ....................................................................................................................156-160

CUMULATIVE INDEX

Cumulative Index (2006) ..............................................................................................................161-1662006 MR 20 – November 15, 2006

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### PROPOSED ADMINISTRATIVE RULES

SOARH 2004-007

DEPARTMENT OF ENVIRONMENTAL QUALITY

AIR QUALITY DIVISION

AIR POLLUTION CONTROL

Filed with the Secretary of State on

These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, 45a(6), or 48 of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

(By authority conferred on the director of the department of environmental quality by sections 5503, 5505, 5506, and 5512 of 1994 PA 451, MCL 324.5503, 324,5505, 324.5506, and 324.5512, and Executive Reorganization Order No. 1995-18, MCL 324.99903)

Draft October 18, 2006

R 336.1201, R 336.1202, R 336.1205, R 336.1207, R 336.1211, R 336.1213, R 336.1214, R 336.1214a, R 336.1219, R 336.1240, R 336.1241, R 336.1278, R 336.1281, R 336.1284, R 336.1285, R 336.1288, and R 336.1299 of the Michigan Administrative Code are amended; R 336.1277 is added; and R 336.1220 is rescinded as follows:

PART 2. AIR USE APPROVAL

R 336.1201 Permits to install. Rule 201. (1) Except as allowed in R 336.1202, or R 336.1278 R 336.1277to R 336.1290, or R 336.2823(15)a person shall not install, construct, reconstruct, relocate, or modify any process or process equipment, including control equipment pertaining thereto, which may emit any of the following, unless a permit to install which authorizes such action is issued by the department: (a) Any air pollutant regulated by title I of the clean air act and its associated rules, including 40 C.F.R. §§51.165 and 52.21 51.166, adopted by reference in R 336.1299

. (b) Any air contaminant. A person who plans to install, construct, reconstruct,relocate, or modify any such process or process equipment shall apply to the department for a permit to install on an application form approved by the department and shall provide the information required in R 336.1203. (2) The department may issue a permit to install for any of the following reasons: (a) To authorize a person to install, construct, reconstruct, relocate, or modify a process or process equipment pursuant to subrule (1)(a) of this rule. (b) To establish limits on potential to emit. The limits shall comply with the provisions of R 336.1205(1)(a). (c) To consolidate terms and conditions from existing permits to install within a renewable operating permit pursuant to R 336.1214a.2006 MR 20 – November 15, 2006

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### (d) To authorize a person to install, construct, reconstruct, relocate, or modify process or process equipment solely pursuant to subrule (1)(b) of this rule or to consolidate state-only enforceable conditions within a renewable operating permit when the renewable operating permit is issued pursuant to R 336.1214. This permit may establish terms and conditions that are legally enforceable solely pursuant to R 336.1224 to R 336.1232, R 336.1901, or other regulations that are not federally enforceable. Each condition in a permit issued pursuant to this subrule shall be identified as state-only enforceable. (3) A permit to install may be approved subject to any condition, specified in writing, that is reasonably necessary to assure compliance with all applicable requirements. (4) If a person decides not to install, construct, reconstruct, relocate, or modify the process or process equipment as authorized by a permit to install, then the person, or the authorized agent pursuant to R 336.1204, shall notify the department, in writing, and upon receipt of the notification by the department, the permit to install shall become void. If the installation, reconstruction, or relocation of the equipment, for which a permit has been issued, has not commenced within, or has been interrupted for, 18 months, then the permit to install shall become void, unless otherwise authorized by the department as a condition of the permit to install. (5) Upon issuance of a permit to install, the emissions from the process or process equipment allowed by the permit to install shall be included in the potential to emit of the stationary source. Upon the physical removal of the process or process equipment, or upon a determination by the department that the process or process equipment has been permanently shut down, the permit to install shall become void and the emissions allowed by the permit to install shall no longer be included in the potential to emit of the stationary source. (6) Except as provided in subrule (8) of this rule and R 336.1216, operation of the process or process equipment is allowed by the permit to install. The department may void a permit to install upon any of the following actions: (a) A new permit to install authorizing the action is approved by the department in accordance with subrule (2)(a), (b), or (d) of this rule, and the new permit to install renders all portions of the old permit obsolete. (b) All terms and conditions of the permit to install are incorporated into a renewable operating permit, in accordance with the provisions of R 336.1212(5) and R 336.1213, and a source-wide permit to install is issued pursuant to R 336.1214a. (c) All of the emission units, processes, or process equipment covered by the permit to install are physically removed from the stationary source or the department makes a determination that the emission units, processes, or process equipment covered by the permit to install have been permanently shut down. (7) The department may require 1 or both of the following notification requirements as a condition of a permit to install: (a) Not more than 30 days after completion of the installation, construction, reconstruction, relocation, or modification authorized by the permit to install, unless a different period is specified in the permit to install, the person to whom the permit to install was issued, or the authorized agent pursuant to R 336.1204, shall notify the department, in writing, of the completion of the activity. Completion of the installation, construction, reconstruction, relocation, or modification is considered to occur not later than commencement of trial operation of the process or process equipment. (b) Within 12 months after completion of the installation, construction, reconstruction, relocation, or modification authorized by the permit to install, or 18 months after the effective date of this rule, whichever is later, unless a different period is specified in the permit to install, the person to whom the permit to install was issued, or the authorized agent pursuant to R 336.1204, shall notify the department,2006 MR 20 – November 15, 2006

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### in writing, of the status of compliance of the process or process equipment with the terms and conditions of the permit to install. The notification shall include all of the following: (i) The results of all testing, monitoring, and recordkeeping performed by the stationary source to determine the actual emissions from the process or process equipment and to demonstrate compliance with the terms and conditions of the permit to install. (ii) A schedule of compliance for the process or process equipment. (iii) A statement, signed by the person owning or operating the process or process equipment, that, based on information and belief formed after reasonable inquiry, the statements and information in the notification are true, accurate, and complete. (8) If evidence indicates that the process orprocess equipment is not performing in accordance with the terms and conditions of the permit to install, the department, after notice and opportunity for a hearing, may revoke the permit to install consistent with section 5510 of the act. Upon revocation of the permit to install, operation of the process or process equipment shall be terminated. Revocation of a permit to install is without prejudice and a person may file a new application for a permit to install that addresses the reasons for the revocation.

R 336.1202 Waivers of approval. Rule 202. (1) If the requirement for approval of a permit to install before construction will create an undue hardship to the applicant, the applicant may request a waiver to proceed with construction from the department. The application for a waiver shall be in writing, shall explain the circumstances that will cause the undue hardship, and shall be signed by the owner or his or her authorized agent. The application shall be acted upon by the department within 30 days. If a waiver is granted, the applicant shall submit pertinent plans and specifications for approval as soon as is reasonably practical. The applicant, after a waiver is granted, shall proceed with the construction at his or her own risk; however, operation of the equipment shall not be authorized until the application for a permit to install has been approved by the department. After construction, modification, relocation, or installation has begun or been completed, if the plans, specifications, and completed installations do not meet department approval, then the application for a permit to install shall be denied, unless the alterations required to effect approval are made within a reasonable time as specified by the department. (2) The provisions of subrule (1) of this rule shall not apply to any of the following: (a) Any activity that is subject to 40 C.F.R. §52.21 R 336.2802, prevention of significant deterioration regulations, or R 336.1220 R 336.2902, nonattainment new source review regulations. (b) Construction or reconstruction of a major source of hazardous air pollutants as defined in and subject to, national emission standards for hazardous air pollutants for source categories. (c) Construction or modification as defined inand subject to 40 C.F.R. part 61, national emission standards for hazardous air pollutants, adopted by reference in R 336.1299

. For the purpose of this subrule, “activity” means the concurrent and related installation, construction, reconstruction, relocation, or modification of any process or process equipment.

R 336.1205 Permit to install; approval. Rule 205. (1) The department shall not approve a permit to install for a stationary source, process, or process equipment that meets the definition of a major offsetstationarysource, or major offset modification under any part of these rules, or a major source or modification under any applicable requirement of part C of title I of the clean air act unless the requirements specified in subdivisions (a) and (b) of this subrule have been met. In addition, except as provided in subrule (3) of this rule, the department shall not approve a permit to install that includes limitations which restrict the potential to emit from a stationary source, process, or process equipment to a quantity below that which would2006 MR 20 – November 15, 2006

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### constitute a major offset source, or major offset modification under any part of these rules, or a major source or modification under any applicable requirement of part C of title I of the clean air act unless both of the following requirements have been met: (a) The permit to install contains emission limits that are enforceable as a practical matter. An emission limit restricts the amount of an air contaminant that may be emitted over some time period. The time period shall be set in accordance with the applicable requirements and, unless a different time period is provided by the applicable requirement, should generally not be more than 1 month, unless a longer time period is approved by the department. A longer time period may be used if it is a rolling time period, but shall not be more than an annual time period rolled on a monthly basis. If the emission limit does not reflect the maximum emissions of the process or process equipment operating at full design capacity without air pollution control equipment, then the permit shall contain 1 of the following: (i) A production limit which restricts the amount of final product that may be produced over the same time period used in the emission limit and which comports with the true design and intended operation of the process or process equipment. (ii) An operational limit which restricts the way the process or process equipment is operated and which comports with the true design and intended operation of the process or process equipment. An operational limit may include conditions specifying any of the following: (A) The installation, operation, and maintenance of air pollution control equipment. (B) The hours of operation of the stationary source,process, or process equipment, if the hours are less than continuous. (C) The amount or type of raw materials used by the stationary source, process, or process equipment. (D) The amount or type of fuel combusted by the stationary source, process, or process equipment. (E) The installation, operation, and maintenance of a continuous gas flow meter and a continuous emission monitor for the air contaminant for which an enforceable emission limit is required. (iii) For volatile organic compound surface coating operations where an add-on control is not employed, an emission or usage limit coupled with a requirement to calculate or demonstrate daily compliance. (b) A draft permit has been subjected to the public participation process specified in section 5511(3) of the act. The department shall provide a copy of the draft permit to the United States environmental protection agency for review and comment at or before the start of the public comment period. The department shall also provide a copy of each final permit to install issued pursuant to this rule to the United States environmental protection agency. (2) The department shall not approve a permit to install to construct a major source or reconstruct a major source under any applicable requirement of section 112 of the clean air act unless the requirements of subrule (1)(a) and (b) of this rule have been met. In addition, except as provided in subrule (3) of this rule, the department shall not approve a permit to install that includes limitations which restrict the potential to emit of a stationary source, process, or process equipment to a quantity below that which would constitute a major source or modification under any applicable requirement of section 112 of the clean air act unless the requirements of subrule (1)(a) and (b) of this rule have been
met. (3) The department may approve a permit to install that includes limitations which restrict the potential to emit of a stationary source, process, or process equipment to a quantity below that which would constitute a major offset source, or major offset modification under any part of these rules, or a major source or modification under any applicable requirement of section 112 or part C of title I of the clean air actwithout meeting the requirement of subrule (1)(b) of this rule if the emission limitations restrict the potential to emit of the stationary source, process, or process equipment to less than 90% of the quantity referenced in the applicable requirement.2006 MR 20 – November 15, 2006

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### (4) At such time that a particular source or modification becomes a major offset source, major offset modification, or a major source or modification under any applicable requirement of part C of title I of the clean air act solely by virtue of a relaxation in any permit limitation established on potential to emit a pollutant, such as a restriction on hours of operation, then the requirements of R 336.1201 and R 336.1220 shall apply to the source or modification as though construction had not yet commenced.

R 336.1207 Denial of permits to install. Rule 207. (1) The department shall deny an application for a permit to install if, in the judgment of the department, any of the following conditions exist: (a) The equipment for which the permit is sought will not operate in compliance with the rules of the department or state law. (b) Operation of the equipment for which the permit is sought will interfere with the attainment or maintenance of the air quality standard for any air contaminant. (c) The equipment for which the permit is sought will violate the applicable requirements of the clean air act, as amended, 42 U.S.C. §7401 et seq., including any of the following: (i) The standards of performance for stationary sources, 40 C.F.R. part 60, adopted by reference in R 336.1299

. (ii) The national emission standards for hazardous air pollutants, 40 C.F.R. part 61, adopted by reference in R 336.1299

. (iii) The requirements of prevention of significant deterioration of air quality, 40 C.F.R. §52.21R 336.2801 to R 336.2819 and R 336.2823. (iv) The requirements of nonattainment new source review, R 336.2901 to R 336.2903, R 336.2907, and R 336.2908. (iv)(v)The requirements for control technology determinations for major sources in accordance with 40 C.F.R. §63.40 to §63.44 and §63.50 to §63.56, adopted by reference in R 336.1299(e)R 336.1299

. (d) Sufficient information has not been submitted by the applicant to enable the department to make reasonable judgments as required by subdivisions (a) to (c) of this subrule. (2) When an application is denied, the applicant shall be notified in writing of the reasons therefor. A denial shall be without prejudice to the applicant's right to a hearing pursuant to section 5505(8) of the act or for filing a further application after revisions are made to meet objections specified as reasons for the denial.

R 336.1211 Renewable operating permit applicability. Rule 211. (1) All of the following stationary sources are subject to the requirements of R 336.1210 to obtain, and only operate in compliance with, a renewable operating permit: (a) Major sources as defined by any of the following criteria: (i) A major source under section 112 of the clean air act, which is defined as any stationary source or group of stationary sources located within a contiguous area and under common control that emits, or has the potential to emit, in the aggregate, any of the following: (A) Ten tons per year of any hazardous air pollutant that has been listed under section 112(b) of the clean air act. (B) Twenty-five tons per year of any combination of hazardous air pollutants that have been listed under section 112(b) of the clean air act. (C) A lesser quantity as the administrator of the United States environmental protection agency may establish by rule for any hazardous air pollutant listed under section 112(b) of the clean air act. The department shall maintain, and make available upon request, a list of the hazardous air pollutants for which a lesser quantity criteria has been established.2006 MR 20 – November 15, 2006

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### Emissions from any oil or gas exploration or production well, with its associated equipment, and emissions from any pipeline compressor or pump station shall not be aggregated with emissions from other similar units, whether or not the units are in a contiguous area or under common control, to determine whether the units or stations are major sources under this paragraph. For the purpose of this paragraph, the potential to emit of a stationary source for hazardous air pollutants includes fugitive emissions, regardless of the category of the stationary source. (ii) A stationary source that directly emits, or has the potential to emit, 100 tons per year or more of any of the following: (A) Lead. (B) Sulfur dioxide. (C) Nitrogen oxides. (D) Carbon monoxide. (E) PM-10. (F) Ozone. (G) Volatile organic compounds. (H) Any air contaminant regulated under section 111 of title I of the clean air act. (I) Any class I and class II substances under title VI of the clean air act. For the purpose of this paragraph, the fugitive emissions of a stationary source shall not be considered in determining whether the stationary source is a major source, unless the stationary source belongs to 1 of the categories listed in the definition of potential to emit in R 336.1116. (iii) A major stationary source, as defined in part d of title I of the clean air act and R 336.2901(t)
, including, for ozone nonattainment areas, stationary sources that have the potential to emit 100 tons per year or more of volatile organic compounds or oxides of nitrogen in areas classified as marginal or moderate. (b) Any affected source as defined in section 402 of the clean air act. (c) Any solid waste incineration unit, as defined in section 129(g) of the clean air act, that is required to obtain a renewable operating permit under section 129(e) of the clean air act. (d) Any municipal solid waste landfill that has a design capacity equal to or greater than 2.5 million megagrams and 2.5 million cubic meters. (e) Any Portland cement plant subject to 40 C.F.R. part 63, subpart LLL, national emission standards for hazardous air pollutants from the Portland cement manufacturing industry, adopted by reference in R 336.1299, including both of the following: (i) Each kiln and each in-line kiln/raw mill at any Portland cement plant, including alkali bypasses, except for kilns and in-line kiln/raw mills that burn hazardous waste and are subject to and regulated under 40 C.F.R. part 63, subpart EEE,national emission standards for hazardous air pollutants from hazardous waste combustors, adopted by reference in R 336.1299. (ii) Each Greenfield raw material dryer. (e)(f)Any stationary source in a source category designated by the administrator of the United States environmental protection agency under 40 C.F.R. §70.3, adopted by reference in R 336.1299

. (2) For the purposes of determining the applicability of R 336.1210, the potential to emit of a stationary source shall be the sum of the potential to emit of all process and process equipment located at the stationary source. (3) The following stationary sources are exempted from the obligation to obtain a renewable operating permit under R 336.1210: (a) All stationary sources and source categories for which the person owning or operating the stationary source would be required to obtain a permit solely because the stationary source is subject to2006 MR 20 – November 15, 2006

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### 40 C.F.R. part 60, subpart AAA, standards of performance for new residential wood heaters, adopted by reference in R 336.1299

. (b) All stationary sources and source categories for which the person owning or operating the stationary source would be required to obtain a permit solely because the stationary source is subject to 40 C.F.R. part 61, subpart M, national emission standard for hazardous air pollutants for asbestos, and §61.145, standard for demolition and renovation, adopted by reference in R 336.1299

. R 336.1213 Content of renewable operating permit. Rule 213. (1) Each renewable operating permit shall include all of the following general provisions: (a) A person shall comply with all conditions of the renewable operating permit. Any permit noncompliance constitutes a violation of the act and is grounds for enforcement action, for permit revocation or revision, or for denial of the renewal of a renewable operating permit. All terms and conditions of a renewable operating permit that are designated in the permit as federally enforceable pursuant to subrule (5) of this rule, are enforceable by the administrator of the United States environmental protection agency and by citizens under the provisions of the clean air act. (b) It shall not be a defense for a person in an enforcement action that it would have been necessary to halt or reduce the permitted activity in order to maintain compliance with the conditions of the permit. (c) The renewable operating permit may be modified, revised, or revoked for cause. The filing of a request by a person for a permit modification, revision, or termination, or a notification of planned changes or anticipated noncompliance does not stay any permit condition. This does not supersede or affect the ability of a person to make changes, at the person's own risk, pursuant to R 336.1215 and R 336.1216. (d) A person shall allow the department or an authorized representative of the department, upon presentation of credentials and other documents as may be required by law and upon stating the authority for and purpose of the investigation, to perform any of the following activities: (i) Enter, at reasonable times, a stationary source or other premises where emissions-related activity is conducted or where records must be kept under the conditions of the permit. (ii) Have access to and copy, at reasonable times, any records that must be kept under the conditions of the permit. (iii) Inspect, at reasonable times, any of the following: (A) Any stationary source. (B) Any emission unit. (C) Any equipment, including monitoring and air pollution control equipment. (D) Any work practices or operations regulated or required under the renewable operating permit. (iv) As authorized by section 5526 of the act, sample or monitor at reasonable times substances or parameters for the purpose of assuring compliance with the permit or applicable requirements. (e) A person shall furnish to the department, within a reasonable time, any information that the department may request, in writing, to determine whether cause exists for modifying, revising, or revoking the permit or to determine compliance with the permit. Upon request, a person shall also furnish to the department copies of any records that are required to be kept as a term or condition of the renewable operating permit. For information which is claimed by the person to be confidential, consistent with the requirements of 1976 PA 442, MCL 15.231, and known as the freedom of information act, the person may also be required to furnish the records directly to the United States environmental protection agency together with a claim of confidentiality.2006 MR 20 – November 15, 2006

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### (f) A challenge by any person, the administrator of the United States environmental protection agency, or the department to a particular condition or a part of a renewable operating permit shall not set aside, delay, stay, or in any way affect the applicability or enforceability of any other condition or part of the renewable operating permit. (g) A person shall pay fees consistent with the fee schedule and requirements pursuant to section 5522 of the act. (h) The renewable operating permit does not convey any property rights or any exclusive privilege. (i) Federally enforceable permit to install terms and conditions incorporated into the renewable operating permit are identified within the renewable operating permit as being established pursuant to R 336.1201. (2) Each renewable operating permit shall contain emission limits and standards, including operational requirements and limits that ensure compliance with all applicable requirements at the time of permit issuance. In addition, each renewable operating permit may contain additional limits agreeable to both the applicant and the department, provided that these limits are not contrary to R 336.1213 or the clean air act. The following provisions apply to emission limits and standards: (a) The renewable operating permit shall specify and reference the underlying applicable requirement for each term or condition and identify any difference in form as compared to the applicable requirement upon which the term or condition is based. (b) The renewable operating permit shall state that, where an applicable requirement is more stringent than an applicable requirement of regulations promulgated for affected sources under title IV of the clean air act, both provisions shall be incorporated into the permit. (c) If the state implementation plan allows for an alternative emission limit that is equivalent to the limit contained in the state implementation plan, any renewable operating permit containing the equivalent alternative emission limit shall contain terms and conditions to ensure that any such emission limit is quantifiable, accountable, enforceable, and based on replicable procedures. (d) Any term or condition established as a limit on the potential to emit of the stationary source shall be consistent with the requirements of R 336.1205(1)(a). For each such limit on the potential to emit of the stationary source, the permit shall specify and reference any requirements that would otherwise be applicable to the source or emission unit. (3) The renewable operating permit shall contain terms and conditions necessary to ensure that sufficient testing, monitoring, recordkeeping, reporting, and compliance evaluation activities will be conducted to determine the status of compliance of the stationary source with the emission limitations and standards contained in the renewable operatingpermit. The following provisions apply to testing, monitoring, recordkeeping, reporting, and compliance evaluation activities: (a) With respect to testing and monitoring, each renewable operating permit shall contain terms and conditions necessary to ensure compliance with all of the following: (i) The use of all emissions monitoring and analysis procedures or test methods required by the applicable requirements, including 40 C.F.R. part 64 and any other procedures and methods promulgated pursuant to sections 504(b) or 114(a)(3) of the clean air act. Title 40 C.F.R. part 64 is adopted by reference in R 336.1299. If more than 1 monitoring or testing requirement applies, the permit may specify a streamlined set of monitoring or testing requirements, provided the specified monitoring or testing is adequate to assure compliance at least to the same extent as the monitoring or testing applicable requirements that were not included in the permit as a result of such streamlining. (ii) Where the applicable requirement does not require periodic testing or instrumental or noninstrumental monitoring, which may consist of recordkeeping designed to serve as monitoring, the use of periodic monitoring sufficient to yield reliable data from the relevant time period that are representative of the stationary source's compliance with the permit, as reported pursuant to subrule2006 MR 20 – November 15, 2006

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### (3)(c) of this rule. The monitoring requirements shall ensure use of terms, test methods, units, averaging periods, and other statistical conventions consistent with the applicable requirement. Recordkeeping provisions shall be sufficient to meet the requirements of subrule (3)(b) of this rule. (iii) As necessary, requirements concerning the use, maintenance, and, where appropriate, installation of monitoring equipment or methods. (b) With respect to recordkeeping, each renewable operating permit shall contain terms and conditions necessary to ensure compliance with the recordkeeping requirements specified in the applicable requirements. Each renewable operating permit shall also contain terms and conditions that require, where appropriate, both of the following: (i) Records of any periodic emission or parametric monitoring that include all of the following information: (A) The date, location, time, and method of sampling or measurements. (B) The dates analyses of the samples were performed. (C) The company or entity that performed the analyses of the samples. (D) The analytical techniques or methods used. (E) The results of the analyses. (F) The related operating conditions or parameters that existed at the time of sampling or
measurement. (ii) Retention of records of all required monitoring data and support information for a period of not less than 5 years from the date of the monitoring sample, measurement, report, or application. Support information includes all calibration and maintenance records and all original strip-chart recordings, or other original data records, for continuous monitoring instrumentation and copies of all reports required by the renewable operating permit. (c) With respect to reporting and the certification of reports, each renewable operating permit shall contain terms and conditions necessary to insure compliance with the reporting requirements specified in the applicable requirements. Except asprovided subdivision (iii)(B) of this subdivision, any document, including reports, required to be submitted to the department as a term or condition of a renewable operating permit shall include a certification by a responsible official which states that, based on information and belief formed after reasonable inquiry, the statements and information in the document are true, accurate, and complete. Each renewable operating permit shall also contain terms and conditions for all of the following: (i) The submittal of reports of any required monitoring at least once every 6 months. All instances of deviations from permit requirements during the reporting period shall be clearly identified in the reports. Each report submitted pursuant to this subdivision shall include a certification by a responsible official which states that, based on information and belief formed after reasonable inquiry, the statements and information in the report are true, accurate, and complete. (ii) The prompt reporting of deviations from permit requirements. Prompt reporting shall be defined as follows, unless otherwise provided in the renewable operating permit: (A) For deviations that exceed the emissions allowed under the renewable operating permit, prompt reporting means reporting consistent with the requirements of R 336.1912. All reports submitted pursuant to this paragraph shall be promptly certified as specified in paragraph (iii) of this subdivision. (B) For deviations which exceed the emissions allowed under the renewable operation permit and which are not reported pursuant to R 336.1912 due to the duration of the deviation, prompt reporting means the reporting of all deviations in the reports required by paragraph (i) of this subdivision. The report shall describe reasons for each deviation and the actions taken to minimize or correct each deviation.2006 MR 20 – November 15, 2006

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### (C) For deviations that do not exceed the emissions allowed under the renewable operating permit, prompt reporting means the reporting of all deviations in the reports required by paragraph (i) of this subdivision. The report shall describe the reasons for each deviation and the actions taken to minimize or correct each deviation. (iii) For reports required pursuant to paragraph (ii) of this subdivision, prompt certification of the reports means either of the following: (A) Submitting a certification by a responsible official with each report which states that, based on information and belief formed after reasonable inquiry, the statements and information in the report are true, accurate, and complete. (B) Submitting, within 30 days following the end of a calendar month during which 1 or more prompt reports of deviations from the emissions allowed under the permit were submitted to the department pursuant to paragraph (ii) of this subdivision, a certification by a responsible official which states that, based on information and belief formed after reasonable inquiry, the statements and information contained in each of the reports submitted during the previous month were true, accurate, and complete. The certification shall include a listing of the reports that are being certified. Any report submitted pursuant to paragraph (ii) of this subdivision that will be certified on a monthly basis pursuant to this paragraph shall include a statement that certification of the report will be provided within 30 days following the end of the calendar month. (4) With respect to compliance, each renewable operating permit shall contain terms and conditions necessary to ensure each of the following: (a) Incorporation into the renewable operating permit of a schedule of compliance. (b) For a stationary source that is not in compliance with all applicable requirements at the time of issuance of a renewable operating permit, the submission of progress reports to the department, consistent with an applicable schedule of compliance, at least semiannually or more frequently if specified in an applicable requirement or by the department in the permit. Progress reports shall contain the information specified in both of the following provisions: (i) The date or dates for achieving the activities, milestones, or compliance required in the schedule of compliance, and the date or dates when the activities, milestones, or compliance were achieved. (ii) An explanation of why any dates in the schedule of compliance were not or will not be met and a description of any preventive or corrective measures adopted. (c) A requirement that, at least annually, or more frequently if specified in an applicable requirement or by the department in the renewable operating permit, the responsible official shall certify, in writing, to the department and to the United States environmental protection agency, that the stationary source is and has been in compliance with all terms and conditions contained in the renewable operating permit, except for any deviations from compliance that have been or are being reported to the department. The certification shall state that, based on information and belief formed after reasonable inquiry, the statements and information in the certification are true, accurate, and complete. Each certification of compliance shall include all of the following information: (i) The identification of each term or condition of the permit that is the basis of the certification. (ii) The compliance status of the stationarysource with respect to each identified term or condition. (iii) Whether compliance was continuous or intermittent. (iv) The methods used for determining the compliance status of the stationary source, currently and over the reporting period consistent with subrules (3)(a), (b), and (c) of this rule. (v) Other facts as the department may require in the permit that are necessary to determine the compliance status of the stationary source. (5) Each renewable operating permit shall provide for the following:2006 MR 20 – November 15, 2006

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### (a) Each renewable operating permit shall specifically designate as not being enforceable under the clean air act any terms and conditions included in the permit that are not required under the clean air act or under any of its applicable requirements. Terms and conditions so designated are not subject to the requirements for review by the United States environmental protection agency or affected states under R 336.1214. (b) Each renewable operating permit shall specifically designate each federally enforceable applicable requirement previously established in a permit to install pursuant to R 336.1201. (6) Both of the following provisions apply to permit shields: (a) Except as provided in subdivision (b) of this subrule, each renewable operating permit shall include a permit shield provision stating that compliance with the conditions of the permit shall be considered compliance with any applicable requirements as of the date of permit issuance, if either of the following provisions is satisfied: (i) The applicable requirements are included and are specifically identified in the permit. (ii) The permit includes a determination or a concise summary of the determination by the department that other specifically identified requirements are not applicable to the stationary source. (b) Nothing in this subrule or in any renewable operating permit shall alter or affect any of the following: (i) The provisions of section 303 of the clean air act, emergency orders, including the authority of the administrator of the United States environmental protection agency under that section. (ii) The liability of an owner or operator of a stationary source for any violation of applicable requirements before or at the time of permit issuance. (iii) The applicable requirements of the acid rain program, consistent with section 408(a) of the clean air act. (iv) The ability of the United States environmental protection agency to obtain information from a stationary source pursuant to section 114 of the clean air act. (7) Each renewable operating permit shall be issued for a fixed term of not more than 5 years. Renewable operating permits that have terms of less than 5 years may be issued with the agreement of the department and the permit applicant. The terms and conditions of a renewable operating permit for affected sources under title IV of the clean air act that address the requirements of title IV shall be issued for a term of 5 years. The date of expiration of the renewable operating permit shall be specified in the permit. (8) A renewable operating permit shall include terms and conditions that allow a stationary source to switch its operation between reasonably anticipated operating scenarios if the scenarios have been identified by the stationary source in its application and found to be approvable by the department. The terms and conditions shall provide for all of the following: (a) Require the stationary source, contemporaneously with making a change from one operating scenario to another, to record, in a log at the stationary source, a record of the scenario under which the source is operating. (b) Extend the permit shield described in subrule (6) of this rule to all terms and conditions under each approved operating scenario. (c) Ensure that the terms and conditions of each approved alternative scenario meet all applicable requirements. (9) A renewable operating permit shall include terms and conditions for the trading of emissions increases and decreases among process emission units within the stationary source solely for the purpose of complying with an emissions cap that is established in the permit independent of otherwise applicable requirements, if the terms and conditions have been requested by a person in an application for a renewable operating permit. If a person wishes to include the terms and conditions in a renewable operating permit, the permit application shall include proposed replicable procedures and permit terms2006 MR 20 – November 15, 2006

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### that the person believes ensure the emissions trades are quantifiable and enforceable. The terms and conditions shall include those necessary to meet the requirements of subrules (2) to (4) of this rule. The department shall not be required to include in the emissions trading provisions any emission units for which emissions are not quantifiable or for which there are no replicable procedures to enforce the emissions trades. The permit shall also require compliance with all applicable requirements. Both of the following provisions apply to the trading of emissions increases and decreases among emission units solely for the purpose of complying with an emissions cap: (a) A written notification to the department and the United States environmental protection agency is required 7 days in advance of any emissions trade under this subrule. The notice shall state when the change will occur and shall describe the changes in emissions that will result and how these increases and decreases in emissions will comply with the terms and conditions of the permit. (b) The permit shield described in subrule (6) of this rule shall extend to terms and conditions that allow the increases and decreases in emissions. (10) In addition to the other requirements of this rule, each renewable operating permit for an affected source under title iv of the clean air act shall include a permit condition prohibiting emissions exceeding any allowances that an affected source lawf ully holds as of the allowance transfer deadline pursuant to R 336.1299(d) and 40 C.F.R. §72.9(c)(1)(i)the federal acid rain program, adopted by reference in R 336.1299. All of the following apply to allowances: (a) A permit revision shall not be required for increases in emissions that are authorized by allowances acquired pursuant to title IV of the clean air act if the increases do not require a permit revision under any other applicable requirement. (b) A limit shall not be placed on the number of allowances held by the affected source. The affected source may not, however, use allowances as a defense to noncompliance with any other applicable requirement. (c) Any allowance shall be accounted for according to the procedures established in regulations promulgated under title IV of the clean air act. (11) A renewable operating permit for a temporary source may authorize emissions from a stationary source at multiple temporary locations. An affected source under title IV of the clean air act shall not be permitted as a temporary source. In addition to the other requirements of this rule, permits for temporary sources shall include all of the following provisions: (a) Conditions that will assure compliance withall applicable requirements at all authorized locations. (b) Requirements that the owner or operator notify the department not less than 10 days in advance of each change in location. (c) Conditions that assure compliance with all other provisions of this rule. (12) A renewable operating permit shall contain terms and conditions allowing for emission averaging and emission reduction credit trading pursuant to any applicable interstate or regional emissions trading program that has been approved by the administrator of the United States environmental protection agency as a part of Michigan's state implementation plan.

R 336.1214 Approval of a renewable operating permit. Rule 214. (1) After the department has received an administratively complete application and all additional information requested by the department pursuant to R 336.1210(3) for a renewable operating permit, significant modification to a renewable operating permit, or the renewal of a renewable operating permit, the department shall prepare a draft permit and a report that sets forth the applicable requirements and factual basis for the draft permit terms and conditions. The report shall include citations of the applicable requirements, an explanation of any equivalent requirements or other changes2006 MR 20 – November 15, 2006

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### included in the draft permit pursuant toR 336.1212(6)R 336.1213(2), and any determination made pursuant to R 336.1213(6)(a)(ii) regarding requirements that are not applicable to the stationary source where the draft permit contains only a summary of the determination. (2) The person who applied for the renewable operating permit shall be provided with a reasonable period of time, but not less than 7 days nor more than 30 days, to review and comment on the draft renewable operating permit, draft renewable operating permit significant modification, or draft renewable operating permit renewal before the start of the public participation procedure specified in subrule (3) of this rule. If the person and the department cannot agree on the terms and conditions of the draft renewable operating permit, the terms and conditions that the department believes are necessary to comply with the requirements of R 336.1213 shall be incorporated into the draft renewable operating permit and the report required by subrule (1) of this rule shall include a discussion of the person's objections. (3) Except for modifications qualifying for administrative permit amendment procedures pursuant to R 336.1216(1) or minor permit modification procedures pursuant to R 336.1216(2), the draft renewable operating permit, draft renewable operating permit modification, or the draft renewable operating permit renewal shall be subjected to the following public participation procedure before the department submits a proposed renewable operating permit to the United States environmental protection agency for review pursuant to subrule (6) of this rule: (a) The department shall provide public notice by publication in a newspaper of general circulation in the area where the stationary source is located or in a state publication designed to give general public notice. Notice shall also be provided to persons on a mailing list maintained by the department, including persons who request, in writing, to be on thatlist, and to any person who requests, in writing, to be notified of a permit action involving a specific stationary source. (b) The notice shall set forth all of the following information: (i) The name of the stationary source. (ii) The name and mailing address of the responsible official. (iii) The mailing address of the department. (iv) The activity or activities involved in the proposed permit action. (v) The emissions change involved in any permit modification. (vi) The name, address, and telephone number of a representative of the department from whom interested persons may obtain additional information, including copies of the draft permit, the report required under subrule (1) of this rule, and, to the extent provided by 1976 PA 442, MCL 15.231, and known as the freedom of information act, the application and any other materials available to the department that are relevant to the permit decision. (vii) A brief description of the procedures to submit comments. (viii) The time and place of any hearing that may be held, including a statement of the procedures to request a hearing, unless a hearing has already been scheduled. (c) The department shall provide not less than 30 days for public comment and shall give notice of any public hearing not less than 30 days in advance of the hearing. (d) The department shall keep a record of the commenters and the issues raised during the public participation process and the records shall be available to the public. (4) The department shall give notice of each draft permit to any affected state on or before the time that the department provides notice to the public pursuant to subrule (3) of this rule, unless R 336.1216(2) requires the timing of the notice to be different. The department shall notify the administrator of the United States environmental protection agency and any affected state, in writing, of any refusal by the department to accept all recommendations for the proposed permit that the affected state submitted during the public comment period specified in subrule (3)(c) of this rule. The notice2006 MR 20 – November 15, 2006

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### shall include the department's reasons for not accepting any recommendation. The department is not required to accept recommendations that are not based on applicable requirements. (5) After the completion of the public participation procedure specified in subrule (3) of this rule and the review by affected states specified in subrule (4) of this rule, the department shall prepare a proposed renewable operating permit, proposed renewable operating permit significant modification, or proposed renewable operating permit renewal. If the proposed renewable operating permit differs from the draft renewable operating permit in response to substantial and relevant comments from the public or affected states, the person who applied for the renewable operating permit shall be provided with a reasonable period of time, but not less than 7 days nor more than 30 days, to review and comment on the changes before the transmittal of the proposed renewable operating permit to the United States environmental protection agency for review. If the person and the department cannot agree on the changes to the proposed renewable operating permit, the changes that the department believes are necessary to comply with the requirements of R 336.1213 shall be incorporated into the proposed renewable operating permit and the person's objections shall be included in the information transmitted to the United States environmental protection agency for review. (6) Except as provided in 40 C.F.R. §70.8(a)(1) and (2), adopted by reference in R 336.1299,and as provided in R 336.1210(13), the department shall transmit a copy of each administratively complete application for a renewable operating permit, including any application for a significant modification to a renewable operating permit or for renewal of a renewable operating permit, all additional information submitted pursuant to R 336.1210(3), the report prepared pursuant to subrule (1) of this rule, and the proposed renewable operating permit to the United States environmental protection agency. The department shall not take a final action to issue a renewable operating permit until 45 days after the United States environmental protection agency has received all the information specified in this subrule and subrule (4) of this rule. If the administrator of the United States environmental protection agency objects, in writing, to the renewable operating permit before the end of the 45-day review period specified in this subrule, the department shall not issue the renewable operating permit until the administrator's objection has been resolved. The department shall follow the procedure specified in 40 C.F.R. §70.8(c), adopted by reference in R 336.1299,to resolve the objection. The application shield provided by R 336.1210(1) shall continue to apply to the stationary source, consistent with the provisions of R 336.1210, until the department takes final action on the renewable operating permit. (7) The department shall make a final decision to issue or deny a renewable operating permit, a significant modification to a renewable operating permit, or the renewal of a renewable operating permit after completion of the review by the United States environmental protection agency specified in subrule (6) of this rule. The final renewable operating permit shall contain all terms and conditions determined by the department to be necessary pursuant to R 336.1213, after consideration of all comments received during public participation pursuant to subrule (3) ofthis rule and affected state review pursuant to subrule (4) of this rule, including any terms and conditions necessary to resolve any objection by the administrator of the United States environmental protection agency pursuant to subrule (6) of this rule. The department shall transmit a copy of each final renewable operating permit to the United States environmental protection agency. A person aggrieved by the issuance, denial, modification, or renewal of a renewable operating permit may appeal the final decision as provided in section 5506(14) of the act. (8) Any person may petition the administrator of the United States environmental protection agency to make an objection regarding a renewable operating permit pursuant to 40 C.F.R. §70.8(d), adopted by reference in R 336.1299. The petition shall be filed within 60 days after the expiration of the administrator's 45-day review period specified in subrule (6) of this rule and 40 C.F.R. §70.8(c), adopted by reference in R 336.1299. The petition shall be based only on an objection to the renewable operating permit that was raised with reasonable specificity during the public comment period provided2006 MR 20 – November 15, 2006

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### for in subrule (3)(c) of this rule, unless the petitioner demonstrates that it was impracticable to raise the objection during the public comment period or unless the grounds for the objection arose after the public comment period. A petition for review does not stay the effectiveness of a renewable operating permit or its requirements if the renewable operating permit was issued after the end of the 45-day review period and before the department received an objection by the administrator. If the administrator of the United States environmental protection agency objects to the renewable operating permit as a result of a petition filed pursuant to 40 C.F.R. §70.8(d), adopted by reference in R 336.1299,before the department has issued the renewable operating permit, the department shall not issue the renewable operating permit until the administrator's objection has been resolved. The application shield provided by R 336.1210(1) shall continue to apply to the stationary source, consistent with the provisions of R 336.1210, until the department takes final action on the renewable operating permit. If the administrator of the United States environmental protection agency objects to the renewable operating permit as a result of a petition filed pursuant to 40 C.F.R. §70.8(d) after the department has issued the renewable operating permit, the department shall follow the procedure specified in 40 C.F.R. §70.7(g), adopted by reference in R 336.1299,to resolve the objection.

R 336.1214a Consolidation of permits to install within renewable operating permit. Rule 214a. (1) The department shall issue a source-wide permit to install concurrent with each issuance and renewal of a renewable operating permit pursuant to R 336.1214 and each reissuance of a renewable operating permit pursuant to R 336.1217(2)(b). The source-wide permit to install shall be contained in the same document as the renewable operating permit. The source-wide permit to install shall specifically identify, consolidate, and incorporate all federally enforceable terms and conditions of existing permits to install into the renewable operating permit in accordance with the provisions of R 336.1212(5) and the permit content requirements of R 336.1213. (2) The source-wide permit to install is updated whenever a new process-specific permit to install is incorporated into the renewable operating permit in accordance with the provisions of R 336.1216. (3) Both of the following provisions apply to the incorporation of terms and conditions of a permit to install into a renewable operating permit: (a) Within the renewable operating permit, each federally enforceable term or condition that originated in a permit to install shall be specifically identified with an applicable requirement citation of R 336.1201(1)(a). This citation is in addition to the R 336.1213(2)(a) underlying applicable requirement citation. Each term or condition of the renewable operating permit with an applicable requirement citation of R 336.1201(1)(a) shall be considered a term or condition of the source-wide permit to install issued pursuant to this rule. (b) A federally enforceable term or condition of a renewable operating permit shall be considered a term or condition of the source-wide permit to install issued pursuant to this rule, if it can be reasonably demonstrated that the federally enforceable term or condition originated in a permit to install issued pursuant to R 336.1201. Each term or condition in a renewable operating permit issued before the effective date of this rule with any of the following underlying applicable requirements, identified pursuant to R 336.1213(2)(a), shall be considered a term or condition of the source-wide permit to install issued pursuant to this rule: (i) R 336.1201, R 336.1201a, R 336.1220, and R 336.1299(e)

. (ii) Title 40 C.F.R. §§63.40 to 63.44 and §§63.50 to 63.56, adopted by reference in R 336.1299

. (iii) R 336.1301(1)(c), R 336.1301(4), and R 336.1331(1)(c). (iv) R 336.1401(1)(b) and R 336.1403(4). (v) R 336.1702, R 336.1705, R 336.1706, R 336.1708, R 336.1709, and R 336.1710. (vi) R 336.2415.2006 MR 20 – November 15, 2006

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### (vii) Title 40 C.F.R. §52.21, adopted by reference in R 336.1299

. (viii) R 336.2801 to R 336.2819 and R 336.2823. (ix) R 336.2901 to R 336.2903, R 336.2907, and R 336.2908. (4) The source-wide permit to install replaces all existing permits to install, in accordance with R 336.1201(6)(b). Although the source-wide permit to install and the renewable operating permit are contained in the same document, the source-wide permit to install maintains its own authority under section 5505 of the act. If the renewable operating permit expires or is voided, the source-wide permit to install remains in effect, unless the criteria of R 336.1201(6)(a) or (6)(c) are met. (5) State-only enforceable terms and conditions from a permit to install that have been incorporated into a renewable operating permit shall be considered terms and conditions of a state-only enforceable permit to install established pursuant to R 336.1201(2)(d). If the renewable operating permit later expires or is voided, the state-only enforceable permit to install does not expire, nor is it voided, unless the criteria of R 336.1201(6)(a) or (c) are met. (6) Nothing in this rule shall relieve the requirement to obtain a permit to install pursuant to R 336.1201(1) for newly constructed, modified, reconstructed, or relocated process or process equipment that emits an air contaminant.

R 336.1219 Amendments for change of ownership or operational control. Rule 219. (1) A person shall maynotify the department, in writing, of a change in ownership or operational control of a stationary source or emission unit authorized by a permit to install or a permit to operate. The notification shall include all of the following information: (a) A description of the stationary source or emission unit affected by the change and a listing of the permits involved in the request. (b) An identification of the new owner or operator and a specific date for the transfer of responsibility, coverage, and liability. (c) A written statement by the new person owning or operating the stationary source or emission unit that the terms and conditions of the permit to install or permit to operate are understood and accepted. Acceptance of the terms and conditions of a permit does not affect the person's ability to subsequently request a modification to the permit to install or permit to operate pursuant to R 336.1201. The new person owning or operating the stationary source shall also notify the department of any change in the contact person regarding the permit. (2) A change in ownership or operational control of a stationary source or emission unit covered by a renewable operating permit shall be made pursuant to R 336.1216(1).

R 336.1220 Rescinded Construction of major offset sources and major offset modifications proposed for location within nonattainment areas. Rule 220. (1) A proposed major offset source or major offset modification for which volatile organic compounds, particulate matter, PM

-10, carbon monoxide, nitrogen oxides, sulfur dioxide, or lead is a major nonattainment air contaminant shall comply with all of the following provisions: (a) The proposed major offset source or major offset modification shall comply with all of the following applicable control technology requirements: (i) Lowest achievable emission rate for the following: (A) For a major offset source, each nonattainment air contaminant for which the potential to emit is 100 or more tons per year. (B) For a major offset modification, each nonattainment air contaminant for which there is a significant net emissions increase at the major offset source. This provision applies to each emission2006 MR 20 – November 15, 2006

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### unit at which there is a net emissions increase as a result of the addition of an emission unit or a physical change in, or change in the method of operation of, an emission unit. (ii) Best available control technology, as defined in the prevention of significant deterioration regulations, 40 C.F.R. §52.21(2002), for a major offset source for each nonattainment air contaminant for which the potential to emit is significant but less than 100 tons per year. This definition of best available control technology is herein adopted by reference. A copy of this definition, contained in 40 C.F.R. part 52 (2002), may be obtained from the Department of Environmental Quality, Air Quality Division, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan 48909

-7760, at a cost as of the time of adoption of these rules of $55.00. A copy of 40 C.F.R. part 52, may also be obtained from the Superintendent of Documents, P.O. Box 371954, Pittsburgh, Pennsylvania 15250

-7954, at a cost as of the time of adoption of these rules of $55.00, or on the United States government printing office internet web site at http://www.gpo.gov. (iii) In the case of nitrogen oxides, the control technology requirements described in paragraphs (i) and (ii) of this subdivision do not apply if both of the following conditions are met: (A) Additional nitrogen oxides emission reductions would not decrease ozone. (B) The United States environmental protection agency has determined, pursuant to the provisions of section 182(f) of the clean air act, that for certain classes or categories of sources, the net air quality benefits are greater in the absence of reductions of nitrogen oxides from the sources concerned. (b) All stationary sources which have a potential to emit 100 or more tons per year of any air contaminant regulated under the clean air act, which are located in the state, and which are owned or controlled by the owner, operator, or an entity controlling, controlled by, or under common control with, the owner or operator of the proposed major offset source or major offset modification shall be in compliance with all applicable local, state, and federal air quality regulations or shall be in compliance with a legally enforceable permit condition or order of the department specifying a plan and timetable for compliance. (c) Before the start

-up of the proposed major offset source or major offset modification, an emission reduction (offset) for each major nonattainment air contaminant shall be provided consistent with the following provisions: (i) In the case of volatile organic compounds, the offset shall be in compliance with both of the following provisions: (A) In any nonclassified or marginal ozone nonattainment area,the offset shall be equal to or greater than 110% of the allowable emissions from the proposed major offset source or major offset modification. (B) In any moderate nonattainment area for ozone, the offset shall be equal to or greater than 115% of the allowable emissions from the proposed major offset source or major offset modification. (ii) In the case of nitrogen oxides, the offset shall be equal to or greater than 115% of the allowable emissions from the proposed major offset source or major offset modification if the major offset source or major offset modification is located in a moderate ozone nonattainment area, unless both of the following conditions are met: (A) Additional nitrogen oxides emissions reductions would not decrease ozone. (B) The United States environmental protection agency has determined, pursuant to the provisions of section 182(f) of the clean air act, that for certain classes or categories of sources the net air quality benefits are greater in the absence of reductions of nitrogen oxides from the sources concerned. (iii) In the case of particulate matter, PM

-10, carbon monoxide, sulfur dioxide, or lead, the offset for each major nonattainment air contaminant shall be equal to or greater than the applicable rate asfollows: (A) 120% of the allowable emissions from the proposed major offset source or major offset modification if the major offset source is located in an area not meeting the applicable primary air quality standard for that major nonattainment air contaminant.2006 MR 20 – November 15, 2006

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### (B) 110% of the allowable emissions from the proposed major offset source or major offset modification if the major offset source is located in an area not meeting the applicable secondary air quality standard for that major nonattainment air contaminant. (C) 150% of the allowable emissions from the proposed major offset source or major offset modification if the offset is from the control of fugitive emissions, regardless of the type of nonattainment area in which the major offset source is located. (iv) Notwithstanding the required amounts of offsets specified in paragraph (iii) of this subdivision, the department may, on a case

-by

-case basis, deem as acceptable offsets which are more than 100% of the allowable emissions from the proposed major offset source or major offset modification for that major nonattainment air contaminant, if all of theprovisions of subrule (2) of this rule are met. (d) The owner or operator of a proposed major offset source or major offset modification shall provide an analysis of alternative sites, sizes, production processes, and environmental control techniques for the proposed major offset source or major offset modification which demonstrates that the benefits of the proposed major offset source or major offset modification significantly outweigh the environmental and social costs imposed as a result of its location, construction, or modification. (2) Offsets shall meet all of the following provisions: (a) Offsets shall be of the same air contaminant class, that is, volatile organic compounds, particulate matter, PM

-10, carbon monoxide, nitrogen oxides, sulfur dioxide, or lead; and the offsets shall be in a time frame compatible with all of the applicable air quality standards. (b) Only thoseoffsets occurring after the year used as the baseline for the state implementation plan, or the date on which an area is classified nonattainment for an air contaminant, whichever is later, may be used. Offsets occurring before January 1, 1991, shall notbe used. (c) Offsets shall be permanent, quantifiable, and federally enforceable and shall be based upon the lower of the actual emissions or allowable emissions. (d) Offsets shall be obtained from the same nonattainment area as the proposed major source or major offset modification, except another nonattainment areamay be used if both of the following conditions
are met: (i) The other area has an equal or higher nonattainment classification than the area in which the proposed source is located. (ii) Nonattainment air contaminant emissions from the other area contribute to a violation of a national ambient air quality standard in the nonattainment area in which the proposed major offset source or major offset modification would be located. (e) Emission reductions otherwise required by the clean air act, rules promulgated under the clean air act, or by state rule, permit, or order shall not be used as offsets. Incidental emission reductions which are not otherwise required may be used as offsets if they meet the requirements of this subrule. (3) The provisions of subrule (1) of this rule do not apply to a physical change in, or change in the method of operation of, a process or process equipment resulting from any of the following: (a) Routine maintenance, routine repair, or routine replacement. (b) Use of an alternate fuel or raw material in a process or process equipment by reason of an order under section 2(a) and (b) of the energy supply and environmental coordination act of 1974, 15 U.S.C. §791, or by reason of a natural gas curtailment plan pursuant to the federal power act, 16 U.S.C. §791. (c) Use of an alternate fuel in a process or process equipment by reason of an order or rule under section 125 of the clean air act, asamended, 42 U.S.C. §7401 et seq. (d) Use of an alternate fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste. (e) Use of an alternate fuel or raw material in a process or process equipment which the process or process equipment was capable of accommodating before December 21, 1976, unless the change would be prohibited under any legally enforceable permit condition or order.2006 MR 20 – November 15, 2006

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### (f) An increase in the hours of operation or in the production rate, unlessthe change would be prohibited under any legally enforceable permit condition or order. (4) The provisions of subrule (1)(c) of this rule do not apply to emissions resulting from proposed major offset sources or major offset modifications to the extent that the emissions are temporary and will not prevent reasonable further progress towards attainment of any applicable standard. Examples of temporary emissions include emissions from all of the following: (a) Pilot plants. (b) Portable facilities which will be relocated outside the nonattainment area within 18 months. (c) The construction phase of a major offset source or major offset modification. (5) The provisions of this rule do not apply to organic compounds which have negligible photochemical reactivity that are listed in 40 C.F.R. §51.100(s)(1) (2002). Organic compounds which have negligible photochemical reactivity that are listed in 40 C.F.R. §51.100(s)(1) shall not be used as an offset to allow for the construction of any major offset source or major offset modification. The department adopts by reference in these rules the provisions of 40 C.F.R. §51.100(s)(1) (2002). A copy of 40 C.F.R. §51.100(s)(1) (2002) may be inspected at the Lansing office of the air quality division of the department of environmental quality. Copiesof 40 C.F.R. §51.100(s)(1) (2002) may be obtained from the Department of Environmental Quality, Air Quality Division, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan 48909

-7760, at a cost as of the time of adoption of these rules of $40.00; from the Superintendent of Documents, P.O. Box 371954, Pittsburgh, Pennsylvania 15250

-7954, at a cost as of the time of adoption of these rules of $40.00; or on the United States government printing office internet web site at http://www.gpo.gov. (6) Emission units specified in subdivision (c) of this subrule shall be in compliance with the following provisions: (a) The lowest emission limit that a particular emission unit is capable of meeting by the application of control measures that are reasonably available considering technological and economic feasibility. (b) Compliance with the provisions of subdivision (a) of this subrule shall be deemed to be met for emission units meeting the following provisions: (i) For emission units which may emit volatile organic compounds, the application of the best available control technology. (ii) For emission units which may emit particulate matter, the application of the best technically feasible, practical equipment available. (c) The provisions of this subrule shall apply to emission units meeting either of the following descriptions: (i) A proposed particular change of an emission unit which is exempted by the provisions of subrule (3)(b) to (e) of this rule and which results in a significant increase in actual emissions of any non

attainment air contaminant from that emission unit. (ii) A proposed particular change of a process or process equipment which does not result in a significant net emissions increase at the major offset source, but which results in a significant increase in actual emissions of any nonattainment air contaminant from that process or process equipment.

R 336.1240 Required air quality models. Rule 240. All air quality modeling demonstrations required by 40 C.F.R. §52.21, R 336.1220 prevention of significant deterioration of air quality regulations and new source review for major sources in nonattainment areas regulations, or used to support or amend the state implementation plan shall be made in accordance with the models and procedures in 40 C.F.R. §51.160(f) and appendix W (2002), adopted by reference in R 336.1299. The department adopts by reference in these rules the provisions of 40 C.F.R. §51.160(f) and appendix W (2002). A copy of 40 C.F.R. §51.160(f)2006 MR 20 – November 15, 2006

36 

### and appendix W (2002) may be inspected at the Lansing office of the air quality division of the department of environmental quality. Copies of 40 C.F.R. §51.160(f) and appendix W (2002) may be obtained from the Department of Environmental Quality, Air Quality Division, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan 48909

-7760, at a cost as of the time of adoption of these rules of $40.00; from the Superintendent of Documents, P.O. Box 371954, Pittsburgh, Pennsylvania 15250

- 7954, at a cost as of the time of adoption of these rules of $40.00; or on the United States government printing office internet web site at http://www.gpo.gov.

R 336.1241 Air quality modeling demonstration requirements. Rule 241. (1) All air quality modeling demonstrations required by the department which are not subject to R 336.1240 shall be consistent with all of the following requirements:follow the procedures and methods referenced in R 336.1240, except for the demonstration may be based on the maximum ambient predicted concentration using the most recent calendar year of meteorological data from a representative national weather service, federal aviation administration station, or site specific measurement station. (a) The modeling is performed using at least 1 calendar year of meteorological data collected at a national weather service station. (b) Meteorological data from a site other than a national weather service station may be used if it is demonstrated, to the satisfaction of the department, to be more representative of the meteorological conditions at the stationary source. (c) The receptor grid network shall be sufficiently dense and strategically located to ensure, to the satisfaction of the department, that maximum ambient air quality concentrations are predicted. (d) The modeling demonstration shall not give credit for any dispersion enhancement technique, including any of the following: (i) Any portion of stack height that exceeds good engineering practice design, unless such stack height existed before December 31, 1970. (ii) Any technique that varies source emissions according to atmospheric conditions or ambient concentrations. (2) In the best interest of public health, safety, welfare, and the environment, the department may approve the use of an alternate model if all of the following conditions are met: (a) A request for utilization of an alternate model is submitted to the department. (b) The applicant demonstrates to the department, using the appropriate methodology cited in 40 C.F.R., part 51, appendix W, adopted by reference in R 336.1240, that the alternate model produces concentration estimates equivalent to the estimates obtained from the preferred model. (c) The alternate model or its algorithms are sufficiently described and documented to enable the department to duplicate results. (d) Output from the alternate model is sufficient to enable comparison with any applicable ambient air quality standard. (e) The applicant agrees to provide an executable copy of the model for future use by the department. (3) The use of an alternate model previously approved by the department may be extended for use by others if it is documented, to the satisfaction of the department, that the conditions for which the model will be applied are essentially the same as those for which the alternate model was originally approved

. R 336.1277 New emission units at facilities with plantwide applicability limits; exemption. Rule 277. The owner or operator of a facility complying with an actuals PAL, established pursuant to R 336.2823 or R 336.2907, may install a new emissions unit without first obtaining a permit to install under R 336.1201, if all of the following requirements are met:2006 MR 20 – November 15, 2006

37 

### (a) The new emissions unit will not cause a meaningful change in the nature or quantity of toxic air contaminants emitted from the stationary source unless the new emission unit is otherwise exempt under R 336.1278 to R 336.1290. In determining whether the new emissions unit will cause a meaningful change in the nature or quantity of toxic air contaminants, the following shall apply: (i) The owner or operator shall demonstrate to the department that a meaningful change in the nature or quantity of toxic air contaminants has not occurred. The owner or operator may devise its own method to perform this demonstration subject to approval by the department. However, if the applicant demonstrates that all toxic air contaminants from a new emissions unit are within the levels specified in R 336.1226 or R 336.1227, then a meaningful change in air contaminants has not occurred. (ii) If, using the methods described in paragraph (a) of this subdivision, the owner or operator determines that the installation of new emission units will cause a meaningful change in the nature or quantity of toxic air contaminant emissions, then the owner or operator shall obtain a stateonly enforceable permit to install under R 336.1201(1)(b). (iii) A copy of the demonstration required by subparagraph (a) of this paragraph shall be kept on site for the life of the new emissions unit and made available to the department upon request. (b) The new emissions unit will only emit regulated new source review pollutants, as defined in R 336.2801(nn) and R 336.2901(ee), that are subject to a PAL, unless the new emission unit is otherwise exempt under R 336.1278 to R 336.1290. (c) The new emissions unit will not be a newly constructed or reconstructed major source of hazardous air pollutants as defined in and subject to 40 C.F.R. §63.2 and §63.5(b)(3), national emission standard for hazardous air pollutants, adopted by reference in R 336.1299. (d) The installation of the new emissions unit will not cause the violation of any other applicable requirement. (e) The owner or operator shall notify the department of the installation of a new emissions unit using the procedure in R 336.1215(3)(c).

R 336.1278 Exclusion from exemption. Rule 278. (1) The exemptions specified in R 336.1280 to R 336.1290 do not apply to either of the following: (a) Any activity that is subject to 40 C.F.R. §52.21

,prevention of significant deteriorationof air qualityregulations,or R 336.1220, nonattainmentnew source review for major sources in nonattainment areas regulations. (b) Any activity that results in an increase in actual emissions greater than the significance levels defined in R 336.1119. For the purpose of this rule, “activity” means the concurrent and related installation, construction, reconstruction, relocation, or modification of any process or process equipment.

(2) The exemptions specified in R 336.1280 to R 336.1290 do not apply to the construction of a new major source of hazardous air pollutants or reconstruction of a major source of hazardous air pollutants, as defined in and subject to 40 C.F.R. §63.2 and §63.5(b)(3), national emission standards for hazardous air pollutants, adopted by reference in R 336.1299

. (3) The exemptions specified in R 336.1280 to R 336.1290 do not apply to a construction or modification as defined in and subject to 40 C.F.R. part 61, national emission standards for hazardous air pollutants, adopted by reference in R 336.1299

.2006 MR 20 – November 15, 2006

38 

### (4) The exemptions in R 336.1280 to R 336.1290 apply to the requirement to obtain a permit to install only and do not exempt any source from complying with any other applicable requirement or existing permit limitation.

R 336.1281 Permit to install exemptions; cleaning, washing, and drying equipment. Rule 281. The requirement of R 336.1201(1) to obtain a permit to install does not apply to any of the following: (a) Vacuum-cleaning systems used exclusively for industrial, commercial, or residential housekeeping
purposes. (b) Equipment used for portable steam cleaning. (c) Blast-cleaning equipment using a suspension of abrasive in water and any exhaust system or collector serving them exclusively. (d) Portable blast-cleaning equipment equipped with appropriately designed and operated enclosure and control equipment. (e) Equipment used for washing or drying materials, where the material itself cannot become an air contaminant, if no volatile organic compounds that have a vapor pressure greater than 0.1 millimeter of mercury at standard conditions are used in the process and no oil or solid fuel is burned. (f) Laundry dryers, extractors, or tumblers for fabrics cleaned with only water solutions of bleach or detergents. (g) Dry-cleaning equipment that has a capacity of 100 or less pounds of clothes. (h) Cold cleaners that have an air/vapor interface of not more than 10 square feet. (i) Sterilization equipment at medical andpharmaceutical facilities using steam, hydrogen peroxide, peracetic acid, or a combination thereof. (j) Portable blast-cleaning equipment used during construction to clean new water tanks or other new structures if the tank or structure is not located closer than the lesser of 750 feet or 5 times the height of the structure to the nearest residential, commercial, or public facility and the abrasive media is a low dusting material that does not contain more than 5% crystalline silica.

R 336.1284 Permit to install exemptions; containers. Rule 284. Except as specified in R 336.1278, the requirement of R 336.1201(1) to obtain a permit to install does not apply to containers, reservoirs, or tanks used exclusively for any of the following: (a) Dipping or storage operations for coating objects with oils, waxes, greases, or natural or synthetic resins containing no organic solvents. (b) Storage of butane, propane, or liquefied petroleum gas in a vessel that has a capacity of less than 40,000 gallons. (c) Storage and surge capacity of lubricating, hydraulic, and thermal oils and indirect heat transfer fluids. (d) Storage of no. 1 to no. 6 fuel oil as specified in ASTM-D-396, gas turbine fuel oils nos. 2-GT to 4- GT as specified in ASTM-D-2880, or diesel fuel oils nos. 2-D and 4-D as specified in ASTM-D-975. The ASTM methods are adopted in these rulesby reference in R 336.1299. Copies may be inspected at the Lansing office of the air quality division of the department of environmental quality. Copies may be obtained from the Department of Environmental Quality, Air Quality Division, P.0. Box 30260, Lansing, Michigan 48909

-7760, at a cost as of the time of adoption of these rules of $30.00 for ASTM

D

-396, $30.00 for ASTM

-D

-2880, and $35.00 for ASTM

-D

-975. Copies may also be obtained from the American Society for Testing and Materials,100 Barr Harbor Drive, West Conshohocken, Pennsylvania2006 MR 20 – November 15, 2006

39 

### 19428

-2959, at a cost as of the time of adoption of these rules of $30.00 for ASTM

-D

-396, $30.00 for ASTM

-D

-2880, and $35.00 for ASTM

-D

-975. (e) Storage of sweet crude or sweet condensate in a vessel that has a capacity of less than 40,000 gallons. (f) Storage of sour crude or sour condensate in a vessel that has a capacity of less than 40,000 gallons if vapor recovery or its equivalent is used to prevent the emission of vapors to the atmosphere. (g) Gasoline or natural gas storage and handling equipment, as follows: (i) Gasoline storage and handling equipment at loading facilities handling less than 20,000 gallons per day or at dispensing facilities. (ii) Natural gas storage and handling equipment at dispensing facilities. (h) Storage of water solutions of inorganic salts and bases and of water solutions of the following acids: (i) Sulfuric acid that is not more than 99% by weight. (ii) Phosphoric acid that is not more than 99% by weight. (iii) Nitric acid that is not more than 20% by weight. (iv) Hydrochloric acid that is not more than 11% by weight. (i) Storage or transfer operations of volatile organic compounds or noncarcinogenic liquids in a vessel that has a capacity of not more than 40,000 gallons where the contents have a true vapor pressure of not more than 1.5 psia at the actual storage conditions. (j) Pressurized storage of acetylene, hydrogen, oxygen, nitrogen, helium, and other substances, excluding chlorine and anhydrous ammonia in a quantity of more than 500 gallons, that have a boiling point of 0 degrees Celsius or lower. (k) Storage containers of noncarcinogenic solid material, including silos, which only emit particulate matter and which are controlled with an appropriately designed and operated fabric filter collector system or an equivalent control system. (l) Filling of noncarcinogenic liquids in shipping or storage containers that have emissions which are released only into the general in-plant environment. (m) Storage of wood and wood residues. (n) Storage of methanol in a vessel that has a capacity of not more than 30,000 gallons.

R 336.1285 Permit to install exemptions; miscellaneous. Rule 285. The requirement of R 336.1201(1) to obtain a permit to install does not apply to any of the following: (a) Routine maintenance, parts replacement, or other repairs that are considered by the department to be minor, or relocation of process equipment within the same geographical site not involving any appreciable change in the quality, nature, quantity, or impact of the emission of an air contaminant therefrom. Examples of parts replacement or repairs considered by the department to be minor include the following: (i) Replacing bags in a baghouse. (ii) Replacing wires, plates, rappers, controls, or electric circuitry in an electrostatic precipitator which does not measurably decrease the design efficiency of the unit. (iii) Replacement of fans, pumps, or motors which does not alter the operation of a source or performance of air pollution control equipment. (iv) Boiler tubes. (v) Piping, hoods, and ductwork. (vi) Replacement of engines, compressors, or turbines as part of a normal maintenance program.2006 MR 20 – November 15, 2006

40 

### (b) Changes in a process or process equipment which do not involve installing, constructing, or reconstructing an emission unit and which do not involve any meaningful change in the quality and nature or any meaningful increase in the quantity of the emission of an air contaminant therefrom. Examples of such changes in a process or process equipment include the following: (i) Change in the supplier or formulation of similar raw materials, fuels, or paints and other coatings. (ii) Change in the sequence of the process. (iii) Change in the method of raw material addition. (iv) Change in the method of product packaging. (v) Change in process operating parameters. (vi) Installation of a floating roof on an open top petroleum storage tank. (vii) Replacement of a fuel burner in a boiler with an equally or more thermally efficient burner. (viii) Lengthening a paint drying oven to provide additional curing time. (c) Changes in a process or process equipment which do not involve installing, constructing, or reconstructing an emission unit and which involve a meaningful change in the quality and nature, or a meaningful increase in the quantity, of the emission of an air contaminant resulting from any of the following: (i) Changes in the supplier or supply of the same type of virgin fuel, such as coal, no. 2 fuel oil, no. 6 fuel oil, or natural gas. (ii) Changes in the location, within the storage area, or configuration of a material storage pile or material handling equipment. (iii) Changes in a process or process equipment to the extent that such changes do not alter the quality and nature, or increase the quantity, of the emission of the air contaminant beyond the level which has been described in and allowed by an approved permit to install, permit to operate, or order of the department. (d) Reconstruction or replacement of air pollution control equipment with equivalent or more efficient equipment. (e) Installation, construction, or replacement of air pollution control equipment for an existing process or process equipment for the purpose of complying with the national emission standards of hazardous air pollutants regulated under section 112 of part A of titleI of the clean air act, 84 Statutes 1685, 42 U.S.C. §7412. (f) Installation or construction of air pollution control equipment for an existing process or process equipment if the control equipment itself does not actually generate a significant amount of criteria air contaminants as defined in R 336.1119(e) or a meaningful quantity of toxic air contaminants. (g) Internal combustion engines that have less than 10,000,000 Btu/hour maximum heat input. (h) Vacuum pumps in laboratory or pilot plant operations. (i) Brazing, soldering, welding, or plasma coating equipment. (j) Portable cutting torches. (k) Grain, metal, or mineral extrusion presses. (l) The following equipment and any exhaust system or collector exclusively serving the equipment: (i) Equipment used exclusively for bending, forming, expanding, rolling, forging, pressing, drawing, stamping, spinning, or extruding either hot or cold metals. (ii) Die casting machines. (iii) Equipment for surface preparation of metals by use of aqueous solutions, except for acid solutions. (iv) Atmosphere generators used in connection with metal heat treating processes. (v) Equipment used exclusively for sintering ofglass or metals, but not exempting equipment used for sintering metal-bearing ores, metal scale, clay, flyash, or metal compounds.2006 MR 20 – November 15, 2006

41 

### (vi) Equipment for carving, cutting, routing, turning, drilling, machining, sawing, surface grinding, sanding, planing, buffing, sand blast cleaning, shot blasting, shot peening, or polishing ceramic artwork, leather, metals, graphite,plastics, concrete, rubber, paper stock, wood, or wood products which meets any of the following: (A) Equipment used on a nonproduction basis. (B) Equipment has emissions that are released only into the general in-plant environment. (C) Equipment has externally vented emissions controlled by an appropriately designed and operated fabric filter collector that, for all specified operations with metal, is preceded by a mechanical precleaner. (vii) Photographic process equipment by which an image is reproduced upon material sensitized to radiant energy, including any of the following: (A) Blueprint machines. (B) Photocopiers. (C) Mimeograph machines. (D) Photographic developing processes. (E) Microfiche copiers. (viii) Battery charging operations. (ix) Pad printers. (m) Lagoons, process water treatment equipment,wastewater treatment equipment, and sewage treatment equipment, except for any of the following: (i) Lagoons and equipment primarily designed to treat volatile organic compounds in process water, wastewater, or groundwater, unless the emissions from the lagoons and equipment are only released into the general in-plant environment. (ii) Sludge incinerators and dryers. (iii) Heat treatment processes. (iv) Odor control equipment. (n) Livestock and livestock handling systems from which the only potential air contaminant emission is odorous gas. (o) Equipment for handling and drying grain on a farm. (p) Commercial equipment used for grain unloading, handling, cleaning, storing, loading, or drying in a column dryer that has a column plate perforation of not more than 0.094 inch or a rack dryer in which exhaust gases pass through a screen filter no coarser than 50 mesh. (q) Portable steam deicers that have a heat input of less than 1,000,000 Btu's per hour. (r) Equipment used for any of the following metal treatment processes if the process emissions are only released into the general in-plant environment: (i) Surface treatment. (ii) Pickling. (iii) Acid dipping. (iv) Cleaning. (v) Etching. (vi) Electropolishing. (vii) Electrolytic stripping or electrolytic plating. (s) Emissions or airborne radioactive materials specifically authorized pursuant to a United States nuclear regulatory commission license. (t) Equipment for the mining and screening of uncrushed native sand, and gravel, and soil

. (u) Solvent distillation equipment that has a rated batch capacity of not more than 55 gallons.2006 MR 20 – November 15, 2006

42 

### (v) Any vapor vacuum extraction soil remediation process where vapor is treated in a control device and all of the vapor is reinjected into the soil such that there are no emissions to the atmosphere during normal operation. (w) Air strippers controlled by an appropriately designed and operated carbon adsorption or incineration system that is used exclusively for the cleanup of gasoline, fuel oil, natural gas condensate, and crude oil spills. (x) Any asbestos removal or stripping process or process equipment. (y) Ozonization process or process equipment. (z) Combustion of boiler cleaning solutions that were solely used for or intended for cleaning internal surfaces of boiler tubes and related steam and water cycle components if the solution burned is not designated, by listing or specified characteristic, as hazardous pursuant to federal regulations or state rules. (aa) Landfills and associated flares and leachate collection and handling equipment. (bb) A residential, municipal, commercial, or agricultural composting process or process equipment. (cc) Gun shooting ranges controlled by appropriately designed and operated high-efficiency particulate filters. (dd) Equipment for handling, conveying, cleaning, milling, mixing, cooking, drying, coating, and packaging grain-based food products and ingredients which meet any of the following: (i) Equipment used on a nonproduction basis. (ii) Equipment has emissions that are released only into the general in-plant environment. (iii) Equipment has externally vented emissions controlled by an appropriately designed and operated particulate control system. (ee) Open burning. (ff) Fire extinguisher filling, testing, spraying, and repairing. (gg) Equipment used for chipping, flaking, or hogging wood or wood residues that are not demolition waste materials. (hh) A process that uses only hand-held aerosolspray cans, including the puncturing and disposing of the spray cans. (ii) Fuel cells that use phosphoric acid, molten carbonate, proton exchange membrane, or solid oxide or equivalent technologies. (jj) Any vacuum truck used at a remediation site as a remedial action method, if it is not used more than once per month at a site and the usage is not more than 2 consecutive days. (kk) Air sparging systems where the sparged air is emitted back to the atmosphere only by natural diffusion through the contaminated medium and covering soil or other covering medium. (ll) Air separation or fractionation equipment used to produce nitrogen, oxygen, or other atmospheric
gases. (mm) Routine and emergency venting of natural gas from transmission and distribution systems or field gas from gathering lines which meet any of the following: (i) Routine or emergency venting of natural gas or field gas in amounts less than or equal to 1,000,000 standard cubic feet per event. For purposes of this rule, an emergency is considered an unforeseen event that disrupts normal operating conditions and poses a threat to human life, health, property or the environment if not controlled immediately. (ii) Venting of natural gas in amounts greater than 1,000,000 standard cubic feet for routine maintenance or relocation of transmission and distribution systems provided that both of the following requirements are met: (A) The owner or operator notifies the department prior to a scheduled pipeline venting.2006 MR 20 – November 15, 2006

43 

### (B) The venting includes, at a minimum, measures to assure safety of employees and the public, minimize impacts to the environment, and providenecessary notification in accordance with the Michigan gas safety standards, the federal pipeline and hazardous materials safety administration standards, and the federal energy regulatory commission standards, as applicable. (iii) Venting of field gas in amounts greater than 1,000,000 standard cubic feet for routine maintenance or relocation of gathering pipelines provided that both of the following are met: (A) The owner or operator notifies the department prior to a scheduled pipeline venting. (B) The venting includes, at a minimum, measures to assure safety of employees and the public, minimize impacts to the environment, and providenecessary notification in accordance with the Michigan department of environmental quality, office of geological survey, and the Michigan public service commission standards, as applicable. (iv) Emergency venting of natural gas or field gas in amounts greater than 1,000,000 standard cubic feet per event, provided that the owner oroperator notifies the pollution emergency alert system or PEAS within 24 hours of an emergency pipeline venting. For purposes of this rule, an emergency is considered an unforeseen event that disrupts normal operating conditions and poses a threat to human life, health, property or the environment if not controlled immediately.

R 336.1288 Permit to install exemptions; oil and gas processing equipment. Rule 288. The requirement of R 336.1201(1) to obtain a permit to install does not apply to any of the following: (a) Gas odorizing equipment. (b) A glycol dehydrator at an oil well site that is controlled by a condenser meets either of the following conditions: (i) It is located at an oil well site and is controlled by a condenser or by other control equipment of equivalent or better efficiency than the condenser. (ii) It is located at a site or facility that only processes natural gas from the Antrim zone. (c) A sweet gas flare. (d) Equipment for the separation or fractionation of sweet natural gas, but not including natural gas sweetening equipment. (e) Equipment that is used for oil and gas well drilling, testing, completion, rework, and plugging activities.

R 336.1299 Adoption of standards by reference. Rule 299. (1) The following standards are adopted in these rules by reference and are available as noted: (a) "1996 TLVs and BEIs. Threshold Limit Values for Chemical Substances and Physical Agents. Biological Exposure Indices," American conference of governmental industrial hygienists. For the purposes of R 336.1232, the chemical names and threshold limit values are adopted by reference. A copy may be inspected at the Lansing office of the air quality division of the department of environmental quality. A copy may be obtained from the Department of Environmental Quality, Air Quality Division, P.O. Box 30260, Lansing, Michigan 48909-7760, at a cost as of the time of adoption of these rules of $11.00, or from the American Conf erence of Governmental Industrial Hygienists, 6500 Glenway Avenue, Building D

-71330 Kemper Meadow Drive, Cincinnati, Ohio 45211

-443845240, at a cost as of the time of adoption of these rules of $11.00. The American Conference of Governmental Industrial Hygienists can also be contacted on the internet at www.acgih.org, by telephone at 513- 742-2020, or by email at mail@acgih.org.2006 MR 20 – November 15, 2006

44 

### (b) "NIOSH Pocket Guide to Chemical Hazards," national institute for occupational safety and health, June 1994. For the purposes of R 336.1232, the chemical names and NIOSH-recommended exposure levels are adopted by reference. A copy may be inspected at the Lansing office of the air quality division of the department of environmental quality. A copy may be obtained from the Department of Environmental Quality, Air Quality Division, P.O. Box 30260, Lansing, Michigan 48909-7760, at a cost as of the time of adoption of these rules of $14.00, or from the National Technical Information Service, 5285 Port Royal Road, Springfield, Virginia 22161, NTIS document PB95-100368, at a cost as of the time of adoption of these rules of $14.00. The National Technical Information Service can also be contacted on the internet atwww.ntis.gov or by telephone at 888-584-8332. (c) "Guidelines for Carcinogen Risk Assessment," 1986, United States environmental protection agency, 51 F.R. pp. 33992 to 34003. Copies may be obtained from the Department of Environmental Quality, Air Quality Division, P.O. Box 30260, Lansing, Michigan 48909-7760, at no cost, or from CERI, Office of Resource Information, United States Environmental Protection Agency, 26 Martin Luther King Drive, Cincinnati, Ohio 45268, EPA document no. EPA 600/8-87/045, at no cost. (2) The following standards are adopted inthese rules by reference and are available as noted. Copies are available for inspection and purchase at the Air Quality Division, Department of Environmental Quality, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan 48909- 7760, at a cost as of the time of adoption of these rules (AQD price). Copies may be obtained from the Superintendent of Documents, GovernmentPrinting Office, P.O. Box 371954, Pittsburgh, Pennsylvania, 15250-7954, at a cost as of the time of adoption of these rules (GPO price), or on the United States government printing office internet web site at http://www.access.gpo.gov: (d)(a)The federal acid rain program, The department adopts by reference in these rules the provisions of 40 C.F.R. §§72.1 to 72.96 (2002) (2006), 40 C.F.R. §§74.1 to 74.61 (2002) (2006), and 40 C.F.R. §§76.1 to 76.15 (2002) (2006), AQD price $72.00; GPO price $62.00. When used in these federal regulations, the term "permitting authority" shall mean the department and the term "administrator" shall mean the administrator of the United States environmental protection agency. If the provisions or requirements of 40 C.F.R. §§72.1 to 72.96, 40 C.F.R. §§74.1 to 74.61, or 40 C.F.R. §§76.1 to 76.15 conflict with, or are not included in, R 336.1210 to R 336.1218, then the 40 C.F.R. §§72.1 to 72.96 and 40 C.F.R. §§76.1 to 76.15 provisions and requirements shall apply and take precedence. A copy of these regulations may be inspected at the Lansing office of the air quality division of the department of environmental quality. Copies of 40 C.F.R., parts 72

-80, may be obtained from the Department of Environmental Quality, Air Quality Division, P.O. Box 30260, Lansing, Michigan 48909

-7760, at a cost as of the time of adoption of these r ules of $59.00; from the Superintendent of Documents, Government Printing Office, P.O. Box 371954, Pittsburgh, Pennsylvania 15250

-7954, at a cost as of the time of adoption of these rules of $59.00; or on the United States government printing office internet web site at http://www.gpo. gov

. (e)(b)The federal hazardous air pollutant regulations governing constructed or reconstructed major sources, The department adopts by reference in these rules the provisions of 40 C.F.R. §§63.40 to 63.44 (2002) (2006) and 63.50 to 63.56 (2002)(2006), AQD price $68.00; GPO price $58.00. When used in these federal regulations, the term “permitting authority” shall mean the department and the term “administrator” shall mean the administrator of the United States environmental protection agency. A copy of these regulations may be inspected at the Lansing office of the air quality division of the department of environmental quality. Copies of these regulations may be obtained from the Department of Environmental Quality, Air Quality Division, P.O. Box 30260, Lansing, Michigan 48909

-7760, at a cost as of the time of adoption of these rules of$56.00, or from the Superintendent of Documents, P.O.2006 MR 20 – November 15, 2006

45 

### Box 371954, Pittsburgh, Pennsylvania 15250

-7954, at a cost as of the time of adoption of these rules of $56.00, or on the United States government printing office internet web site at http://www.gpo. gov

. (f)(c)The federal compliance assurance monitoring regulations, The department adopts by reference in these rules the provisionsof40 C.F.R. §§64.1 to 64.10 (2002) (2006), AQD price $39.00; GPO price $29.00. When used in these federal regulations, the term "permitting authority" shall mean the department, and the term "administrator" shall mean the administrator of the United States environmental protection agency. A copy of these regulations may be inspected at the Lansing office of the air quality division of the department of environmental quality. Copies of 40 C.F.R., parts 64

-71, may be obtained from the Department of Environmental Quality, Air Quality Division, P.O. Box 30260, Lansing, Michigan 48909

-7760, at a cost as of the time of adoption of these rules of $29.00; from the Superintendent of Documents, P.O. Box 371954, Pittsburgh, Pennsylvania 15250

-7954, at a cost as of the time of adoption of these rules of $29.00; or on the United States government printing office internet web site at http://www.gpo. gov. (g)(d) Title 40 C.F.R. §51.160(f), “Legally enforceable procedures,” and appendix W, “Guideline on Air Quality Models” (2006); AQD price $55.00; GPO price $45.00. (3) For the purpose of clarifying the definitions in these rules, the following documents are adopted by reference in these rules. Copies are available for inspection and purchase at the Air Quality Division, Department of Environmental Quality, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan 48909-7760, at a cost as of the timeof adoption of these rules (AQD price). Copies of the documents may be obtained fromthe Superintendent of Documents, Government Printing Office, P.O. Box 371954, Pittsburgh, Pennsylvania, 15250-7954, at a cost as of the time of adoption of these rules (GPO price), or on the United States government printing office internet web site at http://www.access.gpo.gov: (a) Title 40 C.F.R. §§51.165, “Permit requirements,” and 51.166, “Prevention of significant deterioration of air quality” (2006), AQD price $55.00/$45.00 GPO price. (b) Title 40 C.F.R., §52.21, “Prevention of Significant Deterioration of Air Quality” (2006), AQD price $70.00/$60.00 GPO price. (c) Title 40 C.F.R., part 60, “Standards of Performance for New Stationary Sources,” (2006), AQD price $68.00/$58.00 GPO price for 60.1-end and AQD price $67.00/$57.00 GPO price for the appendices. (d) Title 40 C.F.R., part 61, “National Emission Standards for Hazardous Air Pollutants” (2006), AQD price $55.00/$45.00. (e) Title 40 C.F.R. §63.2, “Definitions,” and §63.5(b)(3), “Requirements for existing, newly constructed and reconstructed sources” (2006), AQD price $68.00/$58.00 GPO price for 63.1- 63.599. (f) Title 40 C.F.R. part 63, subpart EEE, “National Emission Standards for Hazardous Air Pollutants From Hazardous Waste Combustors” (2006), AQD price $60.00/$50.00 GPO price for 63.1200-63.1439. (g) Title 40 C.F.R. part 63, subpart LLL, “National Emission Standards for Hazardous Air Pollutants From the Portland Cement Manuf acturing Industry” (2006), AQD price $60.00/$50.00 GPO price for 63.1200-63.1439. (h) Title 40 C.F.R. §70.3 (2006), “Applicability,” AQD price $39.00/$29.00 GPO price for Parts 64-71. (i) Title 40 C.F.R. §70.7(g) (2006), “Reopenings for cause by EPA,” AQD price $39.00/$29.00 GPO price for Parts 64-71. (j) Title 40 C.F.R. §70.8(a)(1) and (2) (2006), “Transmission of information to the Administrator,” AQD price $39.00/$29.00 GPO price for Parts 64-71.2006 MR 20 – November 15, 2006

46 

### (k) Title 40 C.F.R. §70.8(c) (2006), “EPAobjection,” AQD price $39.00/$29.00 GPO price for Parts 64-71. (l) Title 40 C.F.R. §70.8(d) (2006), “Public petitions to the Administrator,” AQD price $39.00/$29.00 GPO price for Parts 64-71. (4) The ASTM methods are adopted in these rules by reference. Copies are available for inspection and purchase at the Air Quality Division, Department of Environmental Quality, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan 48909-7760, at the cost at the time of adoption of these rules. Copies may also be obtained from the ASTM International, 100 Barr Harbor Drive, P.O. Box C700, West Conshohocken, Pennsylvania 19428-2959; the ASTM website at www.astm.org; or contact ASTM customer service at service@astm.org; at a cost as of the time of adoption of these rules as follows: (a) ASTM-D-396-05, “Standard Specification for Fuel Oils,” $30.00. (b) ASTM-D-2880-03, “Standard Specification for Gas Turbine Fuel Oils,” $30.00. (c) ASTM-D-975-05, “Standard Specification for Diesel Fuel Oils,” $35.00.2006 MR 20 – November 15, 2006

47 

### NOTICE OF PUBLIC HEARING

SOAHR 2004-007 NOTICE OF PUBLIC HEARING DEPARTMENT OF ENVIRONMENTAL QUALITY AIR QUALITY DIVISION

The Michigan Department of Environmental Quality (DEQ), Air Quality Division, will conduct a public hearing on proposed administrative rules promulgated pursuant to Part 55, Air Pollution Control, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (Act 451). The proposed rules will amend the air permit programs by adding Part 19, New Source Review (NSR) Impacting Nonattainment Areas for submittal to the U.S. Environmental Protection Agency as a revision to the State Implementation Plan. In addition, the proposed rules will modify the definitions in Part 1,General Provisions, including the definition of volatile organic compound in R 336.1122. The DEQ proposes to rescind R 336.1220, which will be replaced by the new NSR in Nonattainment areas Part 19 rules, and all relevant citations in the Part 2, Air Use Approval, rules will be changed to reflect the state's new permitting authority in the new Part 18 and Part 19 rules.

The public hearing will be held on December 20, 2006,at 10:00 a.m., in the ConCon Conference Room, Constitution Hall, Atrium South, 525 West Allegan Street, Lansing, Michigan.

Copies of the proposed rules (SOAHR 2004-006EQ, 2004-007EQ, and 2004-054EQ) can be downloaded from the Internet at: http://www.michigan.gov/deqair. These rules can also be downloaded from the Internet through the State Office of Administrative Hearings and Rules athttp://www.michigan.gov/orr. Copies of the rules may also be obtained by contacting the Lansing office at:

Air Quality Division Michigan Department of Environmental Quality P.O. Box 30260 Lansing, Michigan 48909-7760 Phone: 517-373-7045

Fax: 517-241-7499 E-Mail: halbeism@Michigan.gov

All interested persons are invited to attend and present theirviews. It is requested that all statements be submitted in writing for the hearing record. Anyone unable to attend may submit comments in writing to the address above. Written comments must be received by 5:00 p.m. on December 20, 2006.

Persons needing accommodations for effective participation in the meeting should contact the Air Quality Division at 517-373-7045 one week in advance to request mobility, visual, hearing, or other assistance.

This notice of public hearing is given in accordance with Sections 41 and 42 of Michigan’s Administrative Procedures Act, 1969 PA 306, as amended, being Sections 24.241 and 24.242 of the Michigan Compiled Laws. Administration of the rules is by authority conferred on the Director of the DEQ by Sections 5503, 5505, and 5512 of Act 451, being Sections 324.5503, 324.5505, and 324.5512 of the Michigan Compiled Laws, and Executive Order 1995-18. These rules take immediate effect after filing with the Secretary of State.

____________________________ G. Vinson Hellwig, Chief Air Quality Division