-----Forwarded by Da ve Bray/R10/USEPA/US on 11/22/2010 01:00PM -----

To: Dave Bray/R10/USEPA/US@EPA, "Edwards, A lice L S (DEC)" <alice .edwards@alaska.gov> From: "Kuterbach, John F (DEC)" <john.kuterbach@alaska.gov>

Date: 11/16/2010 10:16AM Cc: "Smith, Rebecca T (DEC)" <rebecca.smith @alaska.gov>, "Wolter, Lindsay A (LAW)" <lindsay.wolter@alaska.gov> Subject: RE: Request to Parallel Process ADEC's PSD rule revisions for Gr eenhouse Tailoring Rule

Dave, I'm acting for Alice this week.

I can confirm our adopting the definition of "subject to regulation" is to clarify the meaning of the state definition of regulated NSR pollutant. Because the our regulation provides no date associated with definition of regulated NSR pollutant, our definition is intended to match the current version of that term in the federal regulations.

I can also confirm we are requesting that EPA parallel process the re-adopted version of these revisions with the PSD incorporation by reference date of August 2, 2010. The re-adoption was signed by our Commissioner on November 2, filed by our Lt. Governor on November 9 and will become effective on December 9, 2010. We are preparing a transmittal which will include the requisite hard copies and should be sending that to your office shortly.

Let me know if you need anything else

John Kuterbach

For Alice Edwards

-----Original Message----- From: Bray.Dave@epamail.epa.gov [ mailto:Bray.Dave@epamail.epa.gov ] Sent: Monday, November 15, 2010 2:03 PM To: Edwards, Alice L S (DEC); Kuterbach, John F (DEC) Cc: Smith, Rebecca T (DEC) Subject: Request to Parallel Process ADEC's PSD rule revisions for Greenhouse Tailoring Rule

Alice Edwards, Acting Director Division of Air Quality Alaska Department of Environmental Conservation

Dear Alice:

In an October 25, 2010 letter from Commissioner Larry Hartig to Regional Administrator Dennis McLerran, ADEC requested that EPA conduct parallel processing of the State regulations addressing the Greenhouse Gas Tailoring Rule, and specifically submitted two revised regulatory provisions -- 18 AAC 50.040(h) and 18 AAC 50.306(b) -- for parallel processing. These two provisions incorporate certain of EPA's PSD rules by reference and clarify that incorporation for purposes of the

State PSD program.

EPA has reviewed the changes made to these two provisions, in conjunction with the ADEC's current SIP-approved PSD regulations, and has determined that the only change necessary to address the GreenhouseGas Tailoring Rule requirements for PSD permitting is the incorporation by reference of the new definition of "subject to regulation" at 40 CFR 52.21(49). ADEC does not incorporate the EPA definition of "regulated NSR pollutant" at 40 CFR 52.21(b)(50), but rather relies on the State definition of "regulated NSR pollutant" at 18 AAC 50.990(92), which in turn refers to the EPA definition of "regulated NSR pollutant" at 40 CFR 51.166(b)(49).

While the Tailoring Rule added new definitions of the phrase "subject to regulation" at 40 CFR 52.21(b)(49) and 51.166(b)(48), it only made editorial changes to the EPA definitions of "regulated NSR pollutant" at 40 CFR 52.21(b)(50) and 40 CFR 51.166(b)(49).

In order to proceed with parallel processing of the State regulations, please respond to this email and confirm that, by adopting the new definition of "subject to regulation," ADEC has clarified the meaning of that phrase in the State definition of "regulated NSR pollutant."

Also, please clarify that ADEC is requesting that EPA parallel process the re-adopted version of these revisions with the PSD incorporation by reference date of August 2, 2010 and provide us with the date of the re-adoption.

We will act on all of the remaining changes to the State's PSD regulations in a separate action when they are adopted in final form and

submitted to EPA as revisions to the Alaska SIP.

Thanks very much for your prompt response. We look forward to moving expeditiously on our proposed parallel processing of this revision to the State's PSD regulations.

David C. Bray Special Assistant to the Director Office of Air, Waste, and Toxics, R10

(206) 553-4253