## Arkansas Revisions to Regulation No. 9, Fee Regulation, submitted to EPA November 6, 2012 (AR-36)

This document contains only the revisions to Arkansas Regulation No. 9, Fee Regulation, submitted to EPA November 6, 2012 (AR-36), with revisions to Arkansas Regulation No. 19, Regulations of the Arkansas Plan of Implementation for Air Pollution Control, and revisions to Arkansas Regulation No. 26, Regulations of the Arkansas Operating Air Permit Program; RE Greenhouse Gas (GHG) Tailoring Rule and Biomass Deferral. The entire submittal is available in Regulations.gov at:
AR014.03 Arkansas Revisions to Regulation No. 9, Fee Regulation; Regulation No. 19, Regulations of the Arkansas Plan of Implementation for Air Pollution Control; and Regulation No. 26, Regulations of the Arkansas Operating Air Permit Program; RE Greenhouse Gas (GHG) Tailoring Rule and Biomass Deferral, submitted to EPA November 6, 2012 (AR-36) (EPA Received November 27, 2012). 326 pages 3.5 MB t14 

## Regulations.gov document EPA -R06-OAR-2012-0639-0003STATE OF ARKANSAS 

## MIKE BEEBE

GoVERNOR

November 6, 2012

Ron Curry, Regional Administrator United States EPA Region VI 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733

Re: Arkansas State Implementation Plan (SIP) Revision

Dear Mr. Curry: 

## RECEIVED 12 DEC -3 PH 4: 53 AIR 

### PEHHITS SECTiON fif'O-R

The Arkansas Department of Environmental Quality ("ADEQ") hereby respectfully submits, for approval from the United States Environmental Protection Agency ("EPA"), our revisions to the Arkansas Pollution Control and Ecology Commission's ("Commission") Regulation Number 19, Regulations of the Arkansas Plan of Implementation for Air Pollution Control. The Commission adopted changes to Regulation Number 19 on June 22, 2012, in response to EPA's Prevention of Significant Deterioration and Title V Greenhouse Gas ("GHG") Tailoring Rule: Final Rule" ("Tailoring Rule") (75 FR 31514, June 3, 2010,) requiring States to address GHG emissions in their Prevention of Significant Deterioration ("PSD") and Title V permitting programs beginning January 2, 20 II, and in their operating permits for facilities beginning July I, 20 II. The Commission also simultaneously adopted revisions to Regulations Number 9, Fee Regulation, and Number 26, Regulations of the Arkansas Operating Permit Program, which addressed the same matter.
Arkansas could not incorporate the Deferral for C0 2 Emissions from Bioenergy and Other Biogenic Sources under the Prevention of Significant Deterioration (PSD) and Title V Programs ("Biomass Deferral") (76 FR 43490, July 20, 2011,) during the Tailoring Rule rulemaking process. This was because the Arkansas GHG rulemaking had been initiated and the public hearing-and-comment period had already expired before EPA finalized the Biomass Deferral. To include the Biomass Deferral in the State regulations, ADEQ submitted an emergency rulemaking petition to the Commission and, concurrently, requested initiation of permanent rulemaking to address the Biomass Deferral. The Commission approved both emergency rulemaking on the Biomass Deferral and initiation of permanent Biomass Deferral rulemaking on June 22, 2012. The

STATE CAPrrOLSl'!TE250 ·llmEROCKAR 72.."01

T!liPHONE(50])682-2345 • FAX(50!i682-1382 L'\'TERNETWEBSITE 0**W\\W~I:11n-~.p·**

### Commission adopted the permanent Biomass Deferral rulemaking on October 26, 2012. Requirements for a public hearing and comment period on the Biomass Deferral were satisfied during the permanent rulemaking process. Arkansas received one nonsubstantive comment on Regulation Number 19, which was incorporated to improve readability.
On this SIP submittal, Arkansas also requests that EPA withdraw the currently approved SIP provisions found in Regulation Number 9 and replace them with the portions of Regulation Number 9, chapters 1, 2, 3, 5 and 9, which relate to the air program.
Arkansas also requests that EPA review the decision on the proposed partial disapproval of the Arkansas SIP for the 1997 eight-hour Ozone and the 1997 and 2006 fine particulate matter ("PM 2 5 ") 

### national ambient air quality standards ("NAAQS") at 110(a)(2) for portions (C), (D)(ii) and (J) 

### (77 FR 6711, February 9, 2012,) as Arkansas has the resources and, upon EPA's approval of this SIP submittal, will have the authority to implement, maintain, and enforce the PSD program for GHG emitting sources. Thus, Arkansas has corrected the deficiencies identified in the February 9, 2012, Federal Register 

### notice related to GHG emissions regulated under the PSD program. Upon EPA's approval of this SIP submittal, Arkansas requests the withdrawal of the Federal Implementation Plan (75 FR 82246, December 30, 2010,) governing PSD permitting of GHG emissions in the State.
Arkansas requests that this SIP revision be reviewed and approved as expeditiously as possible. The package accompanying this letter consists of two hard copies and one electronic copy (on disk), summarized as follows:

• The Governor's Letter

• Arkansas State Implementation Plan Revision Introduction

• Evidence of Adoption of Regulation Changes Minute Orders for Adopted Changes Arkansas Register Transmittal Sheets

• State's Legal Authority to Adopt and Implement the Plan

• Regulations with Changes Indicated

• · Regulations with Changes Incorporated

• Procedural Requirements ADEQ Regulation Tracking Sheets Arkansas Register Transmittal Sheets Arkansas State Library Agency Certification Forms 2 of3• Public Participation Public Notice Information Public Hearing Sign-in Sheets Public Comments and Responsiveness Summaries

I certify that all documents submitted to the Regional Office in electronic form
are exact duplicates of the hard-copy documents. Should any questions arise, please feel free to contact Mike Bates at (50!) 682-0750 or bates@adeq.state.ar.us. Thank you for your consideration of ADEQ's submission.

MB:jb Enclosures

3 of3

# NOVEM BER 6, 2012

Revisions to the Arkansas State Implementation Plan

“GHG Tailoring Rule and Biomass Deferral”

## Revisions to the Arkansas State Implementation Plan

Table of Contents

Tab A State Implementation Plan Submittal Letter Tab B Introduction: GHG Tailoring Rule and Biomass Deferral Rule
Tab C Evidenc e of State’s Adoption of the Revised Plan into Regulations

GHG Tailoring Rule
Biomass Deferral Rule Tab D State’s Legal Authority to Adopt and Implement the Plan Tab E Regulations with Changes Indicated

GHG Tailoring Rule
Biomass Deferral Rule Tab F Regulations with Changes Incorporated

GHG Tailoring Rule
Biomass Deferral Rule Tab G Procedural Requirements

GHG Tailoring Rule

- Regulation Tracking Sheets - Arkansas Register Transmittal Sheets
- Arkansas S tate Library Agency Certification Forms

Biomass Deferral Rule - Regulation Tracking Sheets

### - Arkansas Register Transmittal Sheets

- Arkansas S tate Library Agency Certification Forms
Tab H Public Participation

GHG Tailoring Rule: Regulations 9, 19, and 26
- Public Notice Information
- Public Hea ring Sign-in Sheets
- Public Comm ents and Responsiveness Summaries

Biomass Deferral Rule: Regulations 19 and 26
- Public Notice Information
- Public Hea ring Sign-in Sheets
- Public Comm ents and Responsiveness Summaries

Arkansas’s State Implementation Plan Revision
- Public Notice Information
- Public Hea ring Sign-in Sheets
- Affidavit: P ublic Participation Process

### Tab B

Introduction: GHG Tailoring Rule and Biomass Deferral RulePage 1 of 5 

### Arkansas State Implementation Plan Revision

Introduction On June 3, 2010, the Envir onmental Protection Agency (“EPA”) published the Prevention of Significant Deterioration and Title V Greenhouse Gas (“GHG”) Tailoring Rule: Final Rule (“Tailoring Rule” ) (7 5 FR 31514), requiring States to address GHG emissions in their ti tle V and Prevention of Significant Deterioration (“PSD”) permitting programs beginning January 2, 2011, and in their operating permits for facilities beginning July 1, 2011. In order to implement the f inal rule for GHG emissions in Arkansas and to incorporate it into the State permitting program, three Regulations (Numbers 9, 19, and 26) of the Arkansas Pollution Control & Ecology Commission (“Commission” or “APC&EC”) required revision. Regulation Number 9 esta blishes permit fees for water, air, and solid waste permitting. Regulation Number 19 is applicable to any stationary source with the potential to emit any federally regulated air pollutant equal to or in excess of the threshold for a major source, to minor sources, and is federally enforceable. Regulation Number 26 is intended to meet the requirements of title V of the federal Clean Air Act and 40 C.F.R. Part 70 by establishing a comprehensive state air quality operating pe rmit program for major sources of air contaminants emissions.

Approved Arkansas SI P components affected by this Revision APC&EC Regulation Number 9 9.502 (B) and (C) APC&EC Regulation Number 19 Chapter 2 Definitions
o “Carbon dioxide equivalent emissions (CO 2 

### e )”
o “Federally regulated air emissions” item (E)
o “Greenhouse gases” 19.407 Permit Amendments
o 19.407 (C)(3) Chapter 9 Prevention of Significant Deterioration
o 19.904(G) Appendix A Insignificant Activities List
o Group A, Items #1 & # 13 APC&EC Regulation Number 26 26.401 Duty to apply

The Arkansas Department of Environmental Quality (“ADEQ”) filed Regulation Number s 19 and 26 with the Commission to initiate rulemaking on January 14, 2011, and filed Regulation Number 9 with the Commission on November 18, 2011. The public hearing for Regulation Numbers 19 and 26 was held on M arch 8, 2011, and the public comment period was extendedArkansas State Implementation Plan Revision

Introduction

2 of 5 

### through April 11, 2011. The public hearing for Regulation Number 9 was held on January 17, 2012, and the public comment period expired January 31, 2012. In addition to the initial public hearings and comment periods, public stakeholder meetings also occurred on December 14, 2010, March 11, 2011, and February 29, 2012, and additional meetings were held with the Arkansas Environmental Federation representatives through May 2012. EPA also provided comments to ADEQ on the draft language during the public review process and again in the spring of 2012. Several changes were made to the originally proposed revisions as a result of considering comments received during this lengthy process. A responsive summary addressing public comments was finalized and ADEQ presented these regulations to the Arkansas Legislative Administrative Rules and Regulations Committee (ARR), the Legislative Joint Pu blic Health and Welfare Committee (PHW), and the Legislative Council. After the regulations were reviewed by these committees, the revised and final regulations we re presented to the Arkansas Pollution Control and Ecology Commission (Commission) on June 22, 2012, for final approval. The regulations were adopted by the Commission on June 22, 2012. Following the Commission's approval, the regulations were filed with the Arkansas Secretary of State and are fully effective, as of July 9, 2012. Also on June 22, 2012, the Commiss ion promulgated on an emergency basis Regulation Numbers 19 and 26 addressing EPA’s De ferral for CO 2 

### emissions from Bioenergy and Other Biogenic Sources under the Prevention of Significant Deterioration and Title V Final Rule (“Biomass Deferral ”) (76 FR 43490, July 20, 2011), which defers GHG permitting requirements for biogenic carbon dioxide (CO 2 

### ) emissions from bioenergy and other biogenic stationary sources until July 21, 2014. The Emergency Rule will remain in effect for 180 days. Permanent rulemaking for the Biomass Deferra l included a public hearing, held on August 1, 2012, and comment period that ended on August 15, 201 2. ADEQ d received one non-substantive comment on Regulation Number 19 which was incor porate d to improve readability. ADEQ presented the permanent Biomass Deferral rulemaking and responsive summaries for Regulation Numbers 19 and 26 to the PHW on September 13, 2012, and to t he ARR on October 15, 2012, and, subsequently, to the Legislative Council. After Legislative approval, the Commission adopted the permanent Biomass Deferral rulemaking on October 26, 2012.. Following the Commission's approval, Regulation Numbers 19 and 26 were file d with the Arkansas Secretary of State.

Regulation Number 9: Regulations of the Arkansas Permit Fee Regulations EPA’s Tailoring Rule did not re quire states to change permit fee requirements to address greenhouse gases, nor di d it require states to submit a new permit fee demonstration under 40 C.F.R. §70.9 for state program revisions related to the permitting of greenhouse gases (75 FR 31584, June 3, 2010). The Tailorin g Rule allows states to use their discretion related to fees for GHGs , so long as fee collections are adequate for the administration of the title V program. EPA has previously determine d that Arkansas’s air permit fee structure is adequate to support the title V program in the state and satisfies the federal requirements (66 FR 51314, October 9, 2001).
After careful exami nation of the title V program and current permitting fees collected, it was concluded that existing program fees will be adequate to cover the program costs that include permitting of GHGs at Tailoring Rule levels. Therefore, Regulation Number 9 (Fee Regulation) was amended in order to prevent sources from incurring carbon dioxide and methane emission fees once Tailoring Rule chan ges were finalized in Regulation Numbers 19 and 26. The regulatory amendments related to the SIP which were adopted by the Commission include:Arkansas State Implementation Plan Revision

Introduction

3 of 5 

### Exclusion of methane and carbon dioxide from being chargeable emissions in order to keep the air permit program’s fee structure unchanged. In this SIP submittal, Arkansas requests that EPA withdraw the currently approved SIP provisions found in Regulation Number 9 and replace them with the portions of Regulation Number 9 that relate to the air pro gra m. Included in this SIP revision are Chapters 1, 2, 3, 5 and 9 of Regulation Number 9. The effective date of these Regulation Number 9 provisions is July 9, 2012.

Regulation Number 19: Regulations of the Arkansas Plan of Implementation for Air Pollution Control The changes to Regulation Number 19 were filed in response to EPA’s Tailoring Rule and the Finding of Substantia l Inadequacy and SIP Call issued by EPA on December 13, 2010 (75 FR 77698). The Tailoring Rule requires that greenhouse gases be subject to regulation under the Clean Air Act. The regulatory amendments related to the SIP involve the following: a) Addition of a provision to 19.102 (Applicability) which will stay revisions to Regulation Number 19 based on the Tailoring Rule, should that federal rule be stayed or invalidated through federal judicial or legislative action; b) Addition of definitions in Chapter 2 for “carbon dioxide equivalent emissions” (“ CO 2 

### e” )
an d “greenhouse gases;” c) Revision of the definition of “Federally Regulated Air Pollutant” (“FRAP”) to clarify that GHGs will only be considered FRAPs if from a stationary source emitting or having the potential to emit 75,000 tons per year (“tpy”) CO 2 

### e emissions or more when the source is regulated under Chapter 9 (“Prevention of Significant Deterioration”) of Regulation Number 19; d) Addition of language to ensure greenhouse gas emission increases of less than 75,000 tpy
can be processed as “De Minimis” permit changes (Reg.19.407), thus enabling sources to avoid major permit modifications for GHG emissions under this level. Even though use of the term “ de minimis” may seem to imply this threshold level of GHG emissions to be environmentally insignificant, tha t is not the intention. The proposed addition seeks only to establish streamlined permitting procedures for modifications resulting in lower levels of GHG emissions, which are separate from permitting procedures for major permits. The term “ de minimis ,” as used in the context of Regu lation Number 19, applies to a permitting process, and is not intended to be an excluding factor for the permitting of a source or to indicate that “ de minimis ” permitt ing levels will result in trivial environmental impacts. These amendments will modify ADEQ’s PSD permitting program to match EPA’s Tailoring Rule, so that existing facilities subject to the PSD permitting program will be required to include greenhouse gases in their permits if they increase their emissions of greenhouse gases by 75,000 tons of CO 2 

### e per year or more. The requirements also applyArkansas State Implementation Plan Revision

Introduction

4 of 5 

### to preconstruction permits for new facilities that emit at least 100,000 tpy of greenhouse gases (Reg.19.904); e) Additi on of language to include the federal Biomass Deferral (Reg.19.904(G)(2)(b)); f) Renumbering for cla rification (Reg.19.904(G)(2)); g) Revision of Appendix A, Group A, Insignificant Activity List, of Regulation Number 19, to clarify that activities emitting less than 75,000 tpy of carbon dioxide emissions could be considered insignificant . Without this revision, all emissions of CO 2 , 

### even those lower than Tailoring Rule permitting thresholds, would have been counted toward a facility’s insignificant activit y emissions of 10 (ten) tpy of “any pollutant” as allowed for in the original langu age. These changes were necessary to avoid specified emissions of CO 2 

### from triggering the need for permits at thresholds lower than the Tailoring Rule. Previously, the Appendix re ad so that any fuel burning equipment (design rate < 10MMBtu/hr) emitting less t han ten (10) tpy of any pollutant (including GHGs) and less than 5 tpy for any combi nation of Hazardous Air Pollutants (“HAPs”) qualified as an “insignificant activity;” and h) Revision of Appendix A, Group A, applied to “other activities” which do not require permitting to comply with federal or State law. Such activities were previously defined in the Regulation as emitting less than “5 tpy of any pollutant regulated under this regulation or less than 1 tpy of a single HAP or 2.5 tpy of any combination of HAPs.” An emissions limit of 5 tpy was too low when applied to CO 2 

### , which is now defined as an air pollutant. The revised language reads, “emissions are less than 75,000 tpy carbon dioxide, 1 tpy of a single HAP or 2.5 tpy of any combination of HAPs, or 5 tpy of any other air pollutant regulated under this regulation,” so that the exception was carried out as is intended by the regulation. The se proposed changes intend for Arkansas’s regulations to be as stringent as federal law. To ensure that an “insignificant activity” is truly insignificant in theory and in practice, the introductory paragraph to Appendix A includes a statement that “Any activity for which a state or federal applicable requirement applies (such as NSPS, National Emission Standards for Hazardous Air Pollutants [NESHAP], or Maximum Achievable Control Technology [MACT]) is not insignificant, even if this activity meets the criteria below.” This statement pre-dates the GHG revisions and was not altered in this rulemaking. This statement means that if any federal applicable requirement, including PSD for GHG, is triggered as a result of a particular activity at a source, the emissions are subject to permitting and are not considered to be insignificant.

Making these changes will maintain consistency between Federal air pollution control programs and the Commission’s regulations governing air pollution in Arkansas and, consequently, enabling ADEQ to seek EPA’s ap proval of the Arkansas’s SIP and to request the rescission of the Federal Implementation P lan (75 FR 82246, December 30, 2010) currently in place governing PSD permitting of greenhouse gas emissions in Arkansas.

Regulation Number 26: Regulations of the Arkansas Operating Permit ProgramArkansas State Implementation Plan Revision

Introduction

5 of 5 

### Th e changes to Regulation Number 26 were filed in response to EPA ’s Tailoring Rule (June 3, 2010) and the Finding of Subst antial Inadequacy and SIP Call issued by EPA on December 13, 2010 (75 FR 77698). The Tailoring Rule requires that greenhouse gases be subject to regulation under the Clean Air Act. The regulatory amendments related to the SIP involve the following: Revision of the “Duty to apply” section (26.401) to include the most recent revision to 40 C.F.R. Part 70, i.e. June 3, 2010. These changes hav e been made in conjunction with changes to Regulation Number 9, Arkansas Air Pollution Control Code, a nd to Regulation Number 19, Regulations of the Arkansas Plan of Implem entation for Air Pollution Control, to ensure consistency between the SIP and Title V program.
The changes to Regulation Numbers 9, 19, and 26 are consistent with and allowable under federal programs. The proposed changes are protective of air quality in the state and will not affect attainment goals. The changes also clarif y existing regulatory language, correct and update formatting, and remove duplicative language from other Commission regulations. Sources affected by this program revision are found throughout the state. These revisions do not affect ADEQ’s ability to protect the National Ambient Air Quality Standards, Prevention of Significant Deterioration increments, Reasonable Further Progress demonstrations, or visibility goals. No substantive revisions have been made to the emission limitations, work practice standards or recordkeeping/reporting requirements portions of this program. Furthermore, the ADEQ’s existing compliance and enforcement strategies will remain in place.

### Tab C

Evidence of State’s Adoption of the Revised Plan into Regulations

### GHG Tailoring RuleARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION

lVIINUTE ORDER NO. 12

-**~3** SUBJECT Adoption of Revisions to Regulation 9, Fee Regulation
DOCKET NO. 11-007-R
PAGE 1 OF 1

Pursuant to public notice and hearing, and in consideration of comments received, the Arkansas Pollution Control and Ecology Commission hereby adopts changes to Regulation No.9, Fee Regulation.
PROMULGATED THIS 22nd DAY OF JUNE, 2012, BY ORDER OF THE ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION.

BY:

ATTEST: 

# IJ 

# l'l- 

# L**~(** 

# .. vt t\.. 

# I**~** 

## I**Ltv~** . Teresa Marks, Director

# ~M:!!'ERS J. 

### Bates

__

## ...,.~<--.::!oo;F---- L. Bengal

________ J. Chamberlin(Chair) J. Fox 

# ---Jnh....-6...,------- D. Hendrix

### ~ L. Hitchcock 

# tJ.;;.pr S. Jorgensen (Vice Chair)

# -------,1~- D. Samples



### ----=------ L. Sickel

- --l",._,.,AA--J----- J. Simpson**~**

___ "

_____ W. Thompson**~** ............... B. White 

# p R.Young

# ~~~ SUBMITTED BY: Mike Bates PASSED: 06/22/12

## ()~. Chamberlin, Chair

# ARKANSAS REGISTER Transmittal Sheet
*Use only for FINAL and EMERGENCY RULES

For Office Use Only: Secretary of State 

### Mark Martin State Capitol, Suite 026 Little Rock, Arkansas 72201-1094 (501) 682-3527 

### www.sos.arkansas.gov

Effective Date Code Number

____________________________ __

Name of Agency Arkansas Department of Environmental Quality Department Arkansas Pollution Control & Ecology Commission**Con~ct** Mike Bates E-mail bates®adeq.state.ar.Pfr%ne (501) 682-0750 Statutory Authority for Promulgating Rules A. C. A. §8 -4-2 011 § 8-4-2 02 1 §8 -4-3 041 & §8 -4-311



### RuleTitle: Reg. No. 91 Permit Fee Regulations; Docket 11-007-R; MO 12-23

Intended Effective Date Date [Check One) 

## D Emergency (ACA 25-15-204) 

## D 30 Days After Filing (ACA 25-15-204) 

## D Other

____________________ _ Legal Notice Published
Final Date for Public Comment
Reviewed by Legislatice Council 1210712012
0113112012
0611312012 (Must be more than 30 days after filing date.) Adopted by State Agency 0 6 

### I 2 2 

### I 2 012

Electronic Copy of Rule submitted under ACA 25-15-218 by: Mike Bates bates®adeq.state.ar.us 0612912012

Contact Person E-mail Address 

### CERTIFICATION OF AUTHORIZED OFFICER I Hereby Certify That The Attached Rules Were Adopted In Compliance with Act 434 of 1967 the Arkansas Administrative Procedures Act. (ACA**~-15-201** et.**~.)** 

# L I VlU'l N

# ~ -jrT"l__.,. (_ 

### / i**:r::~!~-** c: 

### 'ilA.t-**~** 

## I**~.;,t·** ::2 Signature 1**~=?** :· - N ; ' \.0 (501) 682-7890 charles.moulton®arkansisag:gov**-~**

Phone Number E-mail Address · -" _-- ,) Administrativer Hearing Officer

## ~~-~-**~;_** 

# I I :i::>-2::- •• Ulrn c...n Title 0612912012 Date
Revised B/2011 to reflect new legislation passed tn 2011. Date



### ./;I



### - __, f'T1 rr1 

### :::oC a**~**ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION SUBJECT Adoption of Revisions to Regulation 19, Regulations of the Arkansas Plan of Implementation for Air Pollution Control

DOCKET NO. 11-002-R

MINUTE ORDER NO. 12

- 

# a \ PAGE 1 OF 1

Pursuant to public notice and hearing, and in consideration of comments received, the Arkansas Pollution Control and Ecology Commission hereby adopts changes to Regulation No. 19, Regulations ofthe Arkansas Plan of Implementation for Air Pollution Control.

PROMULGATED THIS 

### 22nct DAY OF JUNE, 

### 2012, BY ORDER OF THE ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION.

ATTEST: BY: 

# /) lil· /**~U/?C--** 

## If**{,C\_/~** Teresa Marks, Director

# --------.;~.,£---D. Samples
---r.:-.------ L. Sickel

## --~fo1b'P-:o....!---· 

# ___ J. Simpson

________ W. Thompson 

### ---""7"'1----,.'-,r:

__ B. White

## ---~--4 

# ... ?/"-------- R. Young

# ~~UBMITTED BY: Mike Bates

. Chamberlin, Chair PASSED: 06/22/12

# ARKANSAS REGISTER Transmittal Sheet
*Use only for FINAL and EMERGENCY RULES

For Office Use Only: Secretary of State 

### Mark Martin State Capitol, Suite 026 Little Rock, Arkansas 72201-1094 (501) 682-3527 www.sos.arkansas.gov

Effective Date----------- Code Number---------------

NameofAgency Arkansas Department of Environmental Quality Department Arkansas Pollution Control & Ecology Commission

Conmct Mike Bates E-mail bates@adeq.state.ar.Ph%ne (501) 682-0750 StatutoryAuthorityforPromulgatingRules A.C.A. §8-4-201, §8-4-202, and §8-4-311

Rule Title: Reg No. 19, Regulations of the AR Plan of Implementation for Air Pollution Control; Docket No. 11-002-R; Minute Order No. 12-21 Intended Effective Date Date (Check One] 

## D Emergency (ACA 25-15-204) 

### D 30 Days After Filing (ACA 25-15-204) 

## D Other

__________ _ (Must be more than 30 days after filing date.) Legal Notice Published
Final Date for Public Comment
Reviewed by Legislatice Council Adopted by State Agency 02/02/2011
04/11/2011
06/13/2012
06/22/2012

Electronic Copy of Rule submitted under ACA 25-15-218 by: Mike Bates bates@adeq.state.ar.us 06/29/2012

Contact Person E-mail Address 

### CERTIFICATION OF AUTHORIZED OFFICER I Hereby Certify That The Attached Rules Were Adopted OJ In Compliance with Act 434 of 1967 the Arkansas Administrative Procedure Act. (ACA Zs:-15-201 et.**s~** -, - VJUJ N

# /~ /. f

# ~~~~:**;:~** ' N ) \...0 (501) 682-7890 charles**.moulton@arkansaisa~:J<gov** Date

# A~:n:~u::e~rati ver Hearing

# O;~n:i~::ess**~~ 0~**  

# ;

Title Cflp! 0 06/29/2012 o-. 

### :< Date
Revised 8/ZOll to reflect new legislation passed In 2011.

### ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION SUBJECT Adoption of Revisions to Regulation 26, Regulations of the Arkansas Operating Air Permit Program
DOCKET NO. 11-003-R

MINUTE ORDER NO. 12

-**~~** 

### PAGE 1 OF 1

Pursuant to public notice and hearing, and in consideration of comments received, the Arkansas Pollution Control and Ecology Commission hereby adopts changes to Regulation No. 26, Regulations of the Arkansas Operating Air Permit Program.

PROMULGATED THIS 

### 22"ct DAY OF JUNE, 

### 2012, BY ORDER OF THE ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION.

BY:

ATTEST:

# ~-Ll-4~, 

# ll\a)vL
Teresa Marks, Director

______ }z-'-_D. Samples



### -------...,,.------ L. Sickel**------h~~,_·** ___ J. Simpson**---------=~"'--** W. Thompson

## -------,H4-.,..~.,c./?": ___ ..... _ B. White



### _ _....L..f--"V'--------- R. Young



### SUBMITTED BY: Mike Bates PASSED: 6/22/2012

. Chamberlin, Chair

# ARKANSAS REGISTER Transmittal Sheet
*Use only for FINAL and EMERGENCY RULES

For Office Use Only: Secretary of State 

### Mark Martin State Capitol, Suite 026 Little Rock, Arkansas 72201-1094 (501) 682-3527 

### www.sos.arkansas.gov

Effective Date----------- Code Number----------------

Name of Agency Arkansas Department of Environmental Quality Department Arkansas Pollution Control & Ecology Commission**Con~ct** Mike Bates E-mail bates®adeq.state.ar.Ph%ne (501) 682-0750 Statutory Authority for Promulgating Rules A· C .A. § 8-4-2 01, § 8-4-202, and § 8-4-311

RuleTitle: Reg No. 26, Regulations of the Arkansas Operating Air Permit Program; Docket No. 11-003-R; Minute Order No. 12-22 Intended Effective Date Date (Check One] 

### D Emergency (ACA 25-15-204) 

### D 30 Days After Filing (ACA 25-15-204) 

### D Other -,--,----,----:----::--:-------:----,--- (Must be more than 30 days after Hling date.} Legal Notice Published
Final Date for Public Comment
Reviewed by Legislatice Council Adopted by State Agency 02/02/2011
04/11/2011
06/13/2012
06/22/2012

Electronic Copy of Rule submitted under ACA 25-15-218 by: Mike Bates bates®adeq.state.ar.us 06/29/2012

Contact Person E-mail Address 

### CERTIFICATION OF AUTHORIZED OFFICER I Hereby Certify That The Attached Rules Were Adopted**~** In Compliance with Act 434 of 1967 the Arkansas Administrative Procedures Act. (ACA 25f 15-Wet. se€N 

## /) / \**~~-:··** (_

## ~~I 

# \**~~t~-·~ ~.·~**  Slgflature • 

# l ·,:**~** 

# 83

I (501) 682-7890 charles**.moulton®arkansa~ag** .. gov

Phone Number E-mail Address 

### I**::~** v Administrativer Hearing Officer I**:;;~:**

# 06/~t;/2012 II <f;r•1

Date
Revtsed 8/ZOll to reflect new legislation passed tn 2011. Date

I ''il**~J** t-,,__ 

# ";:;,- ·lf"Tl r11..,.... ;;.() '-JI 0 

## :<

### Biomass Deferral RuleARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION

MINUTE ORDER NO. 12- 

## 4\o SUBJECT Adoption of Revisions to Regulation 19, Re2ulations of the Arkansas Plan of Implementation for Air Pollution Control
DOCKET NO. 12-005-R
PAGE 1 OF 1

Pursuant to public notice and hearing, and in consideration of comments received, the Arkansas Pollution Control and Ecology Commission hereby adopts changes to Regulation No. 19, Regulations ofthe Arkansas Plan ofimplementation for Air Pollution Control.
PROMULGATED THIS 26 1 h DAY OF OCTOBER, 2012, BY ORDER OF THE ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION.

BY:

ATTEST:

# ~d~~f~ Teresa Marks, Director

COMMISSIONERS

PASSED: 10/26/2012

EXHIBIT E

# ARKANSAS REGISTER Transmittal Sheet *Use only for FINAL and EMERGENCY RULES

For Office Use Only: Secretary of State Mark Martin State Capitol, Suite 026 Little Rock, Arkansas 72201-1094 (501) 682-3527 www.sos.arkansas.gov

Effective Date----------- Code Number

______________ _
NameofAgency Arkansas Pollution Control 

### & Ecology Commission Department Arkansas Department of Environmental Quality
Contact Mike Bates bates@adeq.state.ar.us E-mail

___________ Phone (50 1) 6 8 2- 0 7 3 0 Statutory Authority for Promulgating Rules _A_._c_._A_._§_8_-_4_-_2_0_2

_____________ _ Regulation No. 19, Regulations of the Arkansas Plan of Implementation Rule Title:**-f~o-r--==-A..,.i-r---.P"""o~l.....,l..-u--:-t..,..i_o_n--::c•o-n....,t,....r-o-.....-1-;** --=o,....o_c,.k-e--:t--.N""o-. --:;1-::2:-_-.0"""'0"""6:::---"- R=-; ---:-:M:-::O,......-,#r:1:-:2"""--47"";;5-- Intended Effective Date (Check One) 

### D Emergency (ACA 25-15-204) 

### D 30 Days After Filing (ACA 25-15-204) 

### D Other

__________ _ (Must be more than 30 days after flllug date.]

Electronic Copy of Rule submitted under ACA 25-15-218 by:

Contact Person E-mail Address Legal Notice Published
Final Date for Public Comment
Reviewed by Legislatice Council Adopted by State Agency

0:::0 -< 

## I
CERTIFICATION OF AUTHORIZED OFFICER I Hereby Certify That The Attached Rules Were Adopted , Date 08/01/12 08/15/12 08/17/12 10/26/12



### ·' Oate

In Compliance with Act 434 of 1967 the Arkansas Administrative Procedures Ac (ACA 25-15-201 et. seqJ::: \ 

### .. 1\ \._/";

..**:::~** ,., 

### '**t~;·'** Signature \ (501) 682-7890 charles.moulton@arkans.sag.org

Phone Number E-mail Address Administrative Hearing Officer Title November 8, 2012
Date
Revised 8/ZOll to reRect new legislation passed In ZOll.

### Tab D

State’s Legal Authority to Adopt and Implement the Plan

### State’s Legal Authority to Adopt and Implement the Plan

The State’s legal authority to adopt and implement this State Implementation Plan revision can be found in Arka nsas Code Annotated (A.C.A.) § 8-1-203(b)(1).Arkansas Code Annotated § 8-1-203

8 -1-203. Powers and responsibilities of the Arkansas Pollution Control and Ecology Commission.
(a) The Arkansas Pollution Control and Ecology Commission shall meet regularly in publicly noticed open meetings to discuss and rule upon matters of environmental concern.
(b) The commission's powers and duties shall be as follows:
(1) (A) Promulgation of rules and regulations implementing the substantive statutes charged to the Arkansas Department of Environmental Quality for administration.
(B) In promulgation of such rules and regulations, prior to the submittal to public comment and review of any rule, regulation, or change to any rule or regulation that is more stringent than the federal requirements, the commission shall duly consider the economic impact and the environmental benefit of such rule or regulation on the people of the State of Arkansas, including those entities that will be subject to the regulation.
(C) The commission shall promptly initiate rulemaking proceedings to further implement the analysis required under subdivision (b)(1)(B) of this section.
(D) The extent of the analysis required under subdivision (b)(1)(B) of this section shall be defined in the commission's rulemaking required under subdivision (b)(1)(C) of this section. It will include a written report which shall be available for public review along with the proposed rule in the public comment period.
(E) Upon completion of the public comment period, the commission shall compile a rulemaking record or response to comments demonstrating a reasoned evaluation of the relative impact and benefits of the more stringent regulation;
(2) Promulgation of rules, regulations, and procedures not otherwise governed by applicable law that the commission deems necessary to secure public participation in environmental decision-making processes; (3) Promulgation of rules and regulations governing administrative procedures for challenging or contesting department actions;
(4) In the case of permitting or grants decisions, providing the right to appeal a permitting or grants decision rendered by the Director of the Arkansas Department of Environmental Quality or his or her delegatee;
(5) In the case of an administrative enforcement or emergency action, providing the right to contest any such action initiated by the director;(6) Instruct the director to prepare such reports or perform such studies as will advance the cause of

environmental protection in the state;
(7) Make recommendations to the director regarding overall policy and administration of the department. However, the director shall always remain within the plenary authority of the Governor; and
(8) Upon a majority vote, initiate review of any director's decision.
(c) (1) In providing for adjudicatory review as contemplated by subdivisions (b)(4) and (5) of this section, the commission may appoint one (1) or more administrative hearing officers. The administrative hearing officers shall at all times serve as agents of the commission.
(2) In hearings upon appeals of permitting or grants decisions by the director or contested administrative enforcement or emergency actions initiated by the director, the administrative hearing officer shall administer the hearing in accordance with procedures adopted by the commission and, after due deliberation, submit his or her recommended decision to the commission.
(3) (A)(i) Commission review of any appealed or contested matter shall be upon the record compiled by the administrative hearing officer and his or her recommended decision.
(ii) Commission review shall be de novo. However, no additional evidence need be received unless the commission so decides in accordance with established administrative procedures.
(B) The commission may afford the opportunity for oral argument to all parties of the adjudicatory hearing.
(C)( i) By the majority vote of a quorum, the commission may affirm, reverse and dismiss, or reverse and remand to the director.
( ii) If the commission votes to affirm or reverse, such decision shall constitute final agency action for purposes of appeal.
(4) Any party aggrieved by the commission decision may appeal as provided by applicable law.
(d) The chair of the Arkansas Pollution Control and Ecology Commission may appoint one (1) or more committees composed of commission members to act in an advisory capacity to the full commission.

HISTORY: Acts 1991, No. 1230, § 1; 1993, No. 163, § 7; 1993, No. 165, § 7; 1993, No. 1264, § 2; 1995, No. 117, § 1.

### Tab E Regulations with Changes Indicated

### VISUAL KEY TO REGULATION REVISION MARK- UP

Single Underline Red = originally proposed new language Single Strikethrough Red = o riginally proposed deletion of language
Double Underline Red = proposed addition of language after Public Comment Double Strikethrough Red = proposed language withdrawn after Public Comment



### Ex amples of Combined Revision Mark- ups : Originally proposed new language, this part withdrawn after Public Comment.
Originally proposed deletion of language, this part added or retained after Public Comment.

### GHG Tailoring Rule

### Pollution Control and Ecology Commission #014
. 00-009 

# ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION Regulation No. 9

Fee Regulation

Final Draft

### i REGULATION NO. 9 FEE REGULATION TABLE OF CONTENTS

CHAPTER 1: TITLE ............................................................................................................. ..... 1-1 Reg.9.101 Title ...................................................................................................... 1-1 Reg.9.102 Purpose ................................................................................................. 1-1 Reg.9.103 Applicability ......................................................................................... 1-1 Reg.9.104 Severability ........................................................................................... 1-1 CHAPTER 2: DEFINITIONS .................................................................................................... 2- 1 CHAPTER 3: PERMIT FEE PAYMENT .................................................................................. 3-1 Reg.9.301 Permit Fee Pa yment ............................................................................. 3-1 Reg.9.302 Refunds ................................................................................................. 3-2 CHAPTER 4: WATER PERMIT FEES ..................................................................................... 4-1 Reg.9.401 Maximum Water Permit Fees .............................................................. 4-1 Reg.9.402 General Provisions ............................................................................... 4-1 Reg.9.403 Fees for Permits Issued Under the National Pollutant Discharge Elimination System (NPDES) Permits. ................................................ 4-2 Reg.9.404 General Permits .................................................................................... 4-5 Reg.9.405 Fees for Non-NPDES Permits. ............................................................. 4-5 Reg.9.406 Fees for Underground Injection C ontrol (UIC) Permits (Injection well classifications are defined in 40 CFR 144.6.) .............................. 4-6 Reg.9.407 Administrative Permit Amendments .................................................... 4-7 CHAPTER 5: AIR PERMIT FEES ............................................................................................ 5-1 Reg.9.501 Applicability ......................................................................................... 5-1 Reg.9.502 Terms Used in Fee Formulas ............................................................... 5-1 Reg.9.503 Initial Fees ............................................................................................ 5-1 Reg.9.504 Annual Fees .......................................................................................... 5-2 Reg.9.505 Modification Fees ................................................................................. 5-2 Reg.9.506 Administrative Permit Amendments and Renewal Permits ................. 5-3 Reg.9.507 General Permits .................................................................................... 5-3 Reg.9.508 Permit Fees for Certain Small Businesses Subject to Part 70 Permitting Requirements ...................................................................... 5-3 CHAPTER 6: SOLID WAS TE PERMIT FEES ......................................................................... 6-1 Reg.9.601 Maximum Amount of Solid Waste Permit Fee Collections ................. 6-1 Reg.9.602 Fee Categories ...................................................................................... 6-1 Reg.9.603 Initial Fees ............................................................................................ 6-1 Reg.9.604 Annual Fees .......................................................................................... 6-2 Reg.9.605 Modification Fees ................................................................................. 6-2 Reg.9.606 Permit Transfer Fees ............................................................................ 6-2 Reg.9.607 Post Closure Fees ................................................................................. 6-2 Reg.9.608 Administrative Permit Amendments .................................................... 6-2 Reg.9.609 General Permits .................................................................................... 6-3 CHAPTER 7: VARIANCES OR IN TERIM AUTHORITY REQUESTS................................. 7-1 Reg.9.701 Processing Fee ...................................................................................... 7-1 Reg.9.702 Fees Non-Refundable ........................................................................... 7-1

### ii CHAPTER 8: LABORATORY CERT IFICATION FEE PROGRAM ...................................... 8-1 Reg.9.801 Laboratory Certification Fees .............................................................. 8-1 Reg.9.802 Laboratory Certificatio n Travel Fees ................................................... 8-1 Reg.9.803 Failure to pay Laboratory Certification Fees ....................................... 8-1 CHAPTER 9: ADMINISTRAT IVE PROCEDURES ................................................................ 9-1 Reg.9.901 Department Review of Fees ................................................................. 9-1 Reg.9.902 Appeals ................................................................................................. 9-1 Reg.9.903 Effective Date ....................................................................................... 9-1

### 5-1 

### CHAPTER 5: AIR PERMIT FEES

AIR PERMIT FEES. Reg.9.501 Applicability The air permit fees contained in th is section are applicable to (1) non-part 70 permits, (2) part 70 permits, and (3) general permits. Reg.9.502 Terms Used in Fee Formulas (A) $/ton factor is $16/ton until September, 1994, after which time it shall be increased annually by the percentage, if any, by which the federal Consumer Price Index exceeds that of the previous year. The Director may, after considering the factors contained in Reg.9. 8 901 of this regulation, decide not to increase the $/ton factor in a year when the fee fund has a balance gr eater than 150% of the amount of money expended from that fund in the previous year. (B) tons/year predominant air contaminant is the permitted emission rate of the most predominant air contaminant (other than carbon monoxide , carbon dioxide and methane ). The maximum value shall be no grea ter than 4,000 tons/year per facility. (C) tons/year chargeable emissions is the sum of the permitted emission rates of all air contaminants (oth er than carbon monoxide , carbon dioxide and methane ). The maximum value per air contaminant sha ll not exceed 4,000 tons/year per facility. Reg.9.503 Initial Fees
Initial fees shall be assessed acco rding to the following formulas: (A) Non-part 70 permits initial fee = $/ton factor x tons /year predominant air contaminant Provided, however, no initial fee shall be less than $500 except for general permits issued to Non-part 70 sources. (B) Part 70 permits (1) Permits issued to part 70 sources al ready holding an active air permit not issued pursuant to Department Regulation #26: initial fee = [$/ton factor x to ns/year chargeable emissions] - amount of last annual air permit fee invoice Provided, however, that no initial fee shall be less than $1,000. ( 24 ) Permits issued to part 70 sour ces which do not hold an active air permit:

### 5-2 initial fee = $/ton factor x tons/year chargeable emissions Provided, however, that no initial fee shall be less than the $/ton factor x 100. Reg.9.504 Annual Fees Annual fees shall be assessed according to the following formulas: (A) Non-part 70 permits annual fee = $/ton factor x tons/y ear predominant air contaminant Provided, however, that no annual fee shall be charged for a permit in which the tons/year predominant air contaminant is less than 10 tons/year. (B) Part 70 permits annual fee = $/ton factor x tons/year chargeable emissions Provided, however, that no annual fee shal l be less than the $/ton factor x 100. Reg.9.505 Modification Fees
Modification and renewal fees for air permits shall be asse ssed according to the following formulas: (A) Non-part 70 permits modification fee = $/ton factor x to ns/year net emissions increase of predominant air contaminant However, no modification fee shall be less than $400, or more than the $/ton factor x 4,000. (B) Part 70 permits (1) For each non-minor permit modification or each renewal permit involving a non-minor permit modification: fee = $/ton factor x tons/year net emission increase of chargeable emissions However, no fee shall be less than $ 1,000 or more than the $/ton factor x 4,000. (2) $500 for each minor permit modificat ion or each renewal permit involving only a minor permit modification.

### 5-3 Reg.9.506 Administrative Permit Am endments and Renewal Permits There shall be no fee charged for administrative permit amendments or renewal permits not involving a permit modification, as such are defined in Regulati on 26: Arkansas Operating Air Permit Program, Regulation 19: State Implemen tation Plan for Air Pollution Control, or Regulation 18: Arkansas Air Pollu tion Control Code, as applicable. Reg.9.507 General Permits (A) In lieu of the fees schedules above, and except as provided in 9.507(B) below, sources which qualify for a General Air Permit issued pursuant to APC&EC Reg. Nos. 18, 19, or 26 shall be subject to an Initial Fe e and Annual Fee as described below: (1) The Initial Fee of $200.00 shall be remitted with the Notice of Intent (NOI) for coverage under the app licable General Permit. (2) Until a Notice of Termination (NOT) is submitted and approved by the Department, the Permittee shall be billed $200.00 annually thereafter on the anniversary date of coverage. (3) When general permits are revised, no additional initial fee will be required to be submitted if the currently permitted faci lity has maintained coverage under the existing general permit. (B) The following General Permit holders shall not be assessed or billed an Annual Fee: (1) Non-part 70 General Permits in which the tons/year predominant air contaminant is less than 10 tons per year. Reg.9.508 Permit Fees for Certain Small Bu sinesses Subject to Part 70 Permitting Requirements (A) For purposes of this section, the term “small business stationary source” means a stationary source that : (1) is owned or operated by a person that employs 100 or fewer individuals (2) is a small business concern as defined in the federal Small Business Act ( www.sba.gov ); (3) is not a major stationary source; (4) is permitted to emit less than 50 tons per year of any regulated pollutant; and (5) is permitted to emit less than 75 tons per year of all regulated pollutants. (B) Upon written request, the Director may re duce the Part 70 initial, Part 70 annual, or Part 70 modification fee for a small business stationary source if the source demonstrates to the satisfaction of the Director that they do not have the financial resources to pay the fee as calculated. (C) When reducing permit fees in accord ance with Reg.9.508(B), the Director shall calculate the fee as if the source is a non-Part 70 source.

### Tab F Regulations with Changes Incorporated

### GHG Tailoring RulePollution Control and Ecology Commission #014.00-009 

# ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION Regulation No. 9

Fee Regulation

Adopted by the PC&E Commission June 22,2012 

### ; .,T'l

0 Ul ,C.

### i REGULATION NO. 9 FEE REGULATION TABLE OF CONTENTS

CHAPTER 1: TITLE .................................................................................................................. 1-1 Reg.9.101 Title ................................ ...................................................................... 1-1 Reg.9.102 Purpose

................................ ................................................................. 1-1 Reg.9.103 Applicabilit y ......................................................................................... 1-1 Reg.9.104 Severa

bility ........................................................................................... 1-1 CHAPTER 2: DEFINI TIONS .................................................................................................... 2-1 CHAPTER 3: PERM IT FEE PAYMENT .................................................................................. 3-1 Reg.9.301 Permit F ee Payment ............................................................................. 3-1 Reg.9.302 Refunds

................................ ................................................................. 3-2 CHAPTER 4: WATE R PERMIT FEES ..................................................................................... 4-1 Reg.9.401 Maximum W ater Permit Fees .............................................................. 4-1 Reg.9.402 Genera l Provisions ............................................................................... 4-1 Reg.9.403 Fees for Permits Issued Under the National Pollutant Discharge

Elimination System (NPDES) Permits. ................................................ 4-2 Reg.9.404 Genera l Permits .................................................................................... 4-5 Reg.9.405 Fees for Non-NPDES Permits. ............................................................. 4-5 Reg.9.406 Fees for Underground Injection Control (UIC) Permits (Injection

well classifications are defined in 40 CFR 144.6.) .............................. 4-6 Reg.9.407 Administra tive Permit Amendments .................................................... 4-7 CHAPTER 5: AIR

PERMIT FEES ............................................................................................ 5-1 Reg.9.501 Applicability......................................................................................... 5-1 Reg.9.502 Terms Used in Fe e Formulas ............................................................... 5-1 Reg.9.503 Initial Fe es ............................................................................................ 5-1 Re g.9.504 Annual Fees .......................................................................................... 5-2 Reg.9.505 Modificati on Fees ................................................................................. 5-2 Reg.9.506 Administrative Permit Amendments and Renewal Permits ................. 5-3 Reg.9.507 Genera l Permits .................................................................................... 5-3 Reg.9.508 Permit Fe es for Certain Small Businesses Subject to Part 70

Permitting Requirements ...................................................................... 5-3 CHAPTER 6: SOLI D WASTE PERMIT FEES ......................................................................... 6-1 Reg.9.601 Maximum Amoun t of Solid Waste Permit Fee Collections ................. 6-1 Reg.9.602 Fee C ategories ...................................................................................... 6-1 Reg.9.603 Initial Fe es ............................................................................................ 6-1 Reg.9.604 Annual Fee s .......................................................................................... 6-2 Reg.9.605 Modificati on Fees ................................................................................. 6-2 Reg.9.606 Permit Transfe r Fees ............................................................................ 6-2 Reg.9.607 Post C losure Fees ................................................................................. 6-2 Reg.9.608 Administrative Permit Amendments .................................................... 6-2 Reg.9.609 Genera l Permits .................................................................................... 6-3 CHAPTER 7: VARI ANCES OR INTERIM AUTHORITY REQUESTS................................. 7-1 Reg.9.701 Proce ssing Fee ...................................................................................... 7-1 Reg.9.702 Fees Non-Refundable ........................................................................... 7-1

### ii

CHAPTER 8: LABORATORY CERTIFICATION FEE PROGRAM ...................................... 8-1 Reg.9.801 Labo ratory Certification Fees .............................................................. 8-1 Reg.9.802 Labora tory Certification Travel Fees ................................................... 8-1 Reg.9.803 Failur e to pay Laboratory Certification Fees ....................................... 8-1 CHAPTER 9: ADM INISTRATIVE PROCEDURES ................................................................ 9-1 Reg.9.901 Department R eview of Fees ................................................................. 9-1 Reg.9.902 Appeals ................................................................................................. 9-1 Reg.9.903 Effec tive Date ....................................................................................... 9-1

### 1

- 1 

### CHAPTER 1: TITLE

Reg. 9.101 Title This regulation shall be known by and may be cited by the short title “Regulation No. 9: Fees.” Reg. 9.102 Purpose It is the purpose of this regulation to develop and implement a system of fees for permits issued by the Arkansas Department of Environmental Quality pursuant to the provisions of the Water and Air Pollution Control Act (Act 472 of 1949, as amended, A.C.A. §8-4-101 et seq.) or the Solid Waste Manag ement Act (Act 237 of 1971, as amended, A.C.A. §8-6-201 et seq.). Act 817 of 1983, as amended, Act 1254 of 1993, as amended, and Act 1052 of 1999 (A.C.A. § 8-1-101 et
se q. ) authorize the collection and enforcement of these fees and authorize their use to defray the costs of operating the Department. It is also the purpose of this regulation to assess reasonable fees to establish and to administer the State Environmental Laboratory Certification Program Act (Act 876 of 1985, as amended, A.C.A. § 8-2-201 et seq.) Reg. 9.103 ApplicabilityPermit fees established by this regulation shall be applicable to all water permits, including nodischarge and closed system permits, issued under the provisions of the Water and Air Pollution Control Act, as amended, all air permits issued under the Water and Air Pollution Control Act, as amended, or any federal water or air permit program where permitting authority has been delegated to the Department (unless fees for such a program are otherwise provided by law), and all solid waste disposal permits issued under the provisions of the Solid Waste Management Act, as amended, and the Solid Waste Management Code. Facilities operating under the provisions of the “Permits by Rule” or “Authorization by Rule” will be exempted from this regulation until such time that the facility submits an application for an individual permit within each applicable permit category. Laboratory certification fees established by this regulation shall be applicable to all laboratories certified by the Department. The fees include, but are not limited to, the reasonable costs of administering the provisions of the program and the reasonable administrative costs of initial issuance, initial certificate, renewed certificates, and the expenses associated with conducting evaluations. Reg. 9.104 Severability If any provision of this Regulation or the application thereof to any person or circumstance is held invalid, such invalidity shall not effect other provisions or applications of this Regulation which can be given effect without the invalid portion or application, and to this end the provisions of this Regulation are declared to be severable.

### 2

- 1 

### CHAPTER 2: DEFINITIONS

All terms used in this regulation, unless the context otherwise requires, or unless specifically defined in the enabling legislation or in federal regulations adopted by reference for program management, shall have their usual meaning. In addition, for purposes of this regulation, the following definitions apply:
“Administrative Permit Amendment” means a minor change or permit revision which is not typically considered a permit modification, as defined by applicable statutes or regulations, or a minor modification which does not require public notice and opportunity for comment. For example, typographical corrections or revisions, or other changes initiated by the Department, might be considered administrative permit amendments. Some minor changes requested by the permittee may also qualify as administrative permit amendments. For purposes of Chapter 5, administrative permit amendments are defined in Regulations 18, 19, and 26. The Director, in his discretion, may decide whether a revision would be considered an administrative amendment. No fee will be charged for administrative permit amendments.

“ Annual Fee” means the fee required to be submitted upon the facility-specific annual invoice date for a permit issued pursuant to the Water and Air Pollution Control Act, as amended, or the Solid Waste Management Act, as amended. “Category” means one type of laboratory test or group of laboratory tests for similar materials or classes of materials or whic h utilize similar methods or related methods.
“Certificate” means the annual document showing those parameters for which a laboratory has received ce rtification. The annual period begins at receipt of fee payments or at the expiration of a current certificate.

“ Commission” means the Arkansas Pollution Control and Ecology Commission.

“ Confined Animal Operation” means any lot or facility where livestock or fowl have been, are, or will be stable d or confined and fed or maintained, and where crops, vegetation, forage growth, or post-harvest residues are not sustained in the normal growing season over any significant portion of the lot or facility.

“ Department” means the Arkansas Department of Environmental Quality (ADEQ) or its
successor. “Director ” means the Director of the Arkansas Department of Environmental Quality or his designated representative. “Discretionary Major Facility” means an industrial facility discharging wastewater under the terms of a National Pollutant Discharge Elimination System (NPDES) permit that does not meet the numerical rating criteria as an NPDES non-municipal major facility, but which is designated as a major permittee by the Department or the U.S. Environmental Protection Agency (EPA). Such facilities are assigned an Major Rating Code (MRAT) greater than 500.

### 2

- 2

“EPA” means the United States Environmental Protection Agency.
“Evaluation” means a review of the quality control and quality assurance procedures, records keeping, reporting procedures, methodology, and analytical techniques of a laboratory for measuring or establishing specific parameters. “Facility” means an activity or operation within a specific geographical location including property contiguous thereto. A facility may consist of several manufacturing, treatment, storage, or disposal operational units. For purposes of this permit fee regulation, a facility shall be considered to be all property, facilities, or operations owned, leased, or operated by a single entity, whether a municipal, county, or state government, corporation, partnership, or proprietorship in the same geographical area, forming an integral part of the same activity or operation, whether or not such activity lies within the boundaries of the city or county. For purposes of permit fee assessment only, such property, facilities, or operations shall be considered as a single facility if they are regulated by a common state or federal permit within each permit category, or in the future such consolidation of multiple permits can be realized within the scope of applicable permitting regulations, and the facilities or operations are under the supervision of a single plant manager/superintendent.
“Initial Fee” means the fee which is required by law to be submitted with all applications for permits issued pursuant to the Water and Air Pollution Control Act, as amended, and the Solid Waste Management Act, as amended, and which must be received by the Department prior to the issuance of such a permit.
“Issue Date” means the date the Department signed the permit. "Laboratory" means any facility that performs analyses to determine the chemical, physical, or biological properties of air, water, solid waste, hazardous waste, wastewater, soil or subsoil materials, or any other analyses related to environmental quality evaluations. “Major Municipal Facility” means a publicly owned treatment works (POTW) with a design flow or daily average flow of 1.0 million gallons per day (mgd) or greater, or a POTW designated as a major facility by the Department or EPA.
“Modification Fee” means that fee required by law to be submitted for modification of any existing or future pe rmit required by the Water and Air Pollution Control Act, as amended, or the Solid Waste Management Act, as amended, such modification being either at the request of the permittee or as required by law or regulation. The fee may vary depending upon whether the permit modification or

renewal is considered to be a minor or major modification, as defined in applicable statutes or regulations, or otherwise determined by the Director. “Non-Municipal Major Facility” means a facility subject to the National Pollution Discharge Elimination System (NPDES) whose status is determined following completion of an NPDES Permit Rating Worksheet (current version) in which points are allocated on the basis of toxic pollutant potential, permitted flow or the ratio of wastewater to stream flow volume, conventional pollutants mass loadings, public health impacts (including proximity to drinking water supplies and potential for human health toxicity), and water quality factors. Additional

### 2

- 3

points can be assessed for certain steam electric power plants or for separate storm sewers serving a population greater than 100,000. The total points accumulated is known as the Major Rating Code or MRAT, which is the numeric total of ranking points assigned to non-municipal facilities and used to delineate them as a major or minor facility. Currently, a facility with an MRAT of eighty (80) points or more is designated as a “non-municipal major” facility. Additionally, EPA or the Department may designate an NPDES permittee as a “discretionary major” facility. Once an MRAT for a major facility is calculated and approved by EPA, the Department may recommend increases or decreases to an MRAT, but only EPA is authorized to change an individual permittee’s MRAT or designation as a “major” facility.
“Non-Part 70 P ermit” means an air permit that is issued pursuant to a regulation other than Part 70 of Title 40 of the Code of Federal Regulations (40 CFR Part 70).
"Parameter" means the characteristic or characteristics of a laboratory sample determined by an analytic laboratory testing procedure.
“Part 70 Permit” means an air permit that is issued pursuant to 40 CFR Part 70. “Program” means the Arkansas State Environmental Laboratory Certification Program.
“Renewal Permit” means a permit issued to a facility upon expiration of an existing permit. A modification fee may be assessed, depending upon whether the renewal is considered to be a minor or major modification, as defined in applicable statutes or regulations, or otherwise determined by the Director.

### 3

- 1 

### CHAPTER 3: PERMIT FEE PAYMENT

Reg. 9.301 Permit Fee Payment (A) Fee Calculation The applicant may calculate the initial permit application fee or permit modification fee and include it with the permit application, or the applicant may request that the Department calculate the fee after reviewing the application and forward an invoice to the applicant for payment. (B) Fee Paym ent Applicable permit fees shall be paid by check or money order payable to the Department for deposit in the State Treasury. The permit will not be issued until such fee is received by the Department. (C) Annual Fee Payment Annual fees shall be due forty-five (45) days after the first day of the month in which the Permittee is billed for the required annual fee. Failure to receive this bill does not relieve the Permittee from liability for the annual fee, but late charges will not be assessed until forty-five (45) days after the Permittee has been notifi ed that the annual fee is due. The Director may waive annual fees or a portion thereof, for new facilities which are not in operation, unless such waiver is otherwise prohibited by State or Federal law. (D) Failure to Pay Annual Fees A permitted facility failing or refusing to pay the annual fee in a timely manner shall be subject to a late payment charge as established in these regulations. Continued refusal to pay the required fees after a reasonable notice shall constitute grounds for legal action by the Department, which may result in revocation of the permit. When payment of fees is made by check which is subsequently returned due to insufficient funds, all review work on the particular application will immediately cease until the fee is paid in cash or by money order. (E) First Annual Fee Payment Th e annual fee shall be assessed upon the facility-specific annual invoice date. The Department shall credit the first annual fee, on a prorated basis, if the initial fee for the permit was assessed within 12 months of the first annual fee for the permit. The Department may credit the annual fee, on a prorated basis, if a modification fee for the permit was assessed within 12 months of the annual fee for the permit. (F) Annual Fee Late Payment Charge

### 3

- 2 A late payment charge shall be assessed to facilities failing to pay the annual fee within forty-five (45) days of the billing date, and shall be assessed at the rate of ten percent (10%) of the annual fee. LATE PAYMENT CHARGE = TEN PERCENT (10%) OF ANNUAL FEE Reg. 9.302 Refunds Except for pre-site investigation fees and interim authority or variance application fees as described in Chapters 6 and 7, up to forty percent (40%) of a fee submitted pursuant to this regulation is refundable in the event that the request for the permit action for which the fee was submitted is withdrawn by the applicant prior to the final permit decision. The Director shall retain as much of the above-cited forty percent (40%) as he in his sole discretion, determines is necessary to cover the reasonable administrative and technical review costs incurred in the review process.

### 5

- 1 

### CHAPTER 5: AIR PERMIT FEES

AIR PERMIT FEES. Reg. 9.501 Applicability The air permit fee s contained in this section are applicable to (1) non-part 70 permits, (2) part 70 permits, and (3) general permits. Reg. 9.502 Terms Used in Fee Formulas (A) $/ton factor is $16/ton until September, 1994, after which time it shall be increased annually by the percentage, if any, by which the federal Consumer Price Index exceeds that of the previous year. The Director may, after considering the factors contained in Reg.9. 901 of this regulation, decide not to increase the $/ton factor in a year when the fee fund has a balance greater than 150% of the amount of money expended from that fund in the previous year. (B) tons/year predominant air contaminant is the permitted emission rate of the most predominant air contaminant (other than carbon monoxide, carbon dioxide and methane). The maximu

m value shall be no greater than 4,000 tons/year per facility. (C) tons/year chargeable emissions is the sum of the permitted emission rates of all air contaminants (other than carbon monoxide, carbon dioxide and methane). The maximum value per air contaminant shall not exceed 4,000 tons/year per facility. Reg. 9.503 Initial Fees Initial fees shall be assessed according to the following formulas: (A) Non-part 70 permits initial fee = $/ton factor x tons/year predominant air contaminant Provided, however, no ini tial fee shall be less than $500 except for general permits issued to Non-part 70 sources. (B) Part 70 permits (1) Permits issued to part 70 sources already holding an active air permit not issued pursuant to Department Regulation #26: initial fee = [$/ton factor x tons/year chargeable emissions]

- amount of last annual air permit fee invoice Provided, however, that no initial fee shall be less than $1,000. (2) Permits issued to part 70 sources which do not hold an active air permit:

### 5

- 2 initial fee = $/ton factor x tons/year chargeable emissions Provided, however, that no initial fee shall be less than the $/ton factor x 100. Reg. 9.504 Annual Fees Annual fees shall be assessed according to the following formulas: (A) Non-part 70 permits annual fee = $/ton factor x tons/year predominant air contaminant Provided, however, that no annual fee shall be charged for a permit in which the tons/year predominant air contaminant is less than 10 tons/year. (B) Part 70 permits annual fee = $/ton factor x tons/year chargeable emissions Provided, however, that no annual fee shall be less than the $/ton factor x 100. Reg. 9.505 Modification Fees Modification and renewal fees for air permits shall be assessed according to the following formulas: (A) Non-part 70 permits modification fee = $/ton factor x tons/year net emissions increase of

predominant air contaminant However, no modification fee shall be less than $400, or more than the $/ton factor x 4,000. (B) Part 70 permits (1) For each non-minor permit modification or each renewal permit involving
a non -minor permit modification: fee = $/ton factor x tons/year net emission increase of chargeable emissions However, no fee shall be less than $1,000 or more than the $/ton factor x 4,000. (2) $500 for each minor permit modification or each renewal permit involving only a minor permit modification.

### 5

- 3

Reg. 9.506 Administrative Permit Amendments and Renewal Permits
Th ere shall be no fee charged for administrative permit amendments or renewal permits not involving a permit modification, as such are defined in Regulation 26: Arkansas Operating Air Permit Program, Regulation 19: State Implementation Plan for Air Pollution Control, or Regulation 18: Arkansas Air Pollution Control Code, as applicable. Reg. 9.507 General Permi ts (A) In lieu of the fees schedules above, and except as provided in 9.507(B) below, sources which qualify for a General Air Permit issued pursuant to APC&EC Reg. Nos. 18, 19, or 26 shall be subject to an Initial Fee and Annual Fee as described below: (1) The Initial Fee of $200.00 shall be remitted with the Notice of Intent (NOI) for coverage under the applicable General Permit. (2) Until a Notice of Termination (NOT) is submitted and approved by the Department, the Permittee shall be billed $200.00 annually thereafter on the anniversary date of coverage. (3) When general permits are revised, no additional initial fee will be required to be submitted if the currently permitted facility has maintained coverage under the existing general permit. (B ) The following General Permit holders shall not be assessed or billed an Annual Fee:

(1) Non-part 70 General Permits in which the tons/year predominant air contaminant is less than 10 tons per year. Reg.9.508 Permit Fees for Certain Small Business es Subject to Part 70 Permitting

Requirements (A) For purposes of this section, the term “small business stationary source” means a stationary source that : (1) is owned or operated by a person that employs 100 or fewer individuals (2) is a small business concern as defined in the federal Small Business A ct ( www.sba.gov ); (3) is not a

major stationary source; (4) is permitted to emit less than 50 tons per year of any regulated pollutant; and (5) is permitted to e mit less than 75 tons per year of all regulated pollutants. (B) Upon written request, the Director may reduce the Part 70 initial, Part 70 annual, or Part 70 modification fee for a small business stationary source if the source demonstrates to the satisfaction of the Director that they do not have the financial resources to pay the fe e as calculated. (C) When reducing permit fees in accordance with Reg.9.508(B), the Director shall calculate the fee as if the source is a non-Part 70 source.

### 9

- 1 

### CHAPTER 9: ADMINISTRATIVE PROCEDURES

Reg.9.901 Department Review of Fees The Department shall undertake a biennial re-evaluation of the permit fee schedule as contained in this regulation within sixty (60) days of receiving its approved budget for the next biennium. The evaluation shall refl ect the current needs of the Department to perform essential permitting, compliance, enforcement and monitoring activities; the resources available; the balance of the permit fee fund from the previous biennium; anticipated state and federal appropriations; status of delegation of federal programs; and any other factors deemed relevant to the study by the Department. Reg.9.902 Appeals If any applicant/permittee disagrees with the Department’s decision on an assessment of fees, the applicant/permittee may appeal such decision in accordance with the applicable provisions of the Water and Air Pollution Control Act, the Solid Waste Management Act, the State Environmental Laboratory C ertification Program Act, and Pollution Control and Ecology Commission Regulation No. 8, Administrati ve Procedures. Reg.9.903 Effective Date This regulation is effective ten (10) days after filing with the Secretary of State, the State Library, and the Bureau of Legislative Research.

# ARKANSAS REGISTER Transmittal Sheet
*Use only for FINAL and EMERGENCY RULES

For Office Use Only: Secretary of State 

### Mark Martin State Capitol, Suite 026 Little Rock, Arkansas 72201-1094 (501) 682-3527 

### www.sos.arkansas.gov

Effective Date Code Number

____________________________ __

Name of Agency Arkansas Department of Environmental Quality Department Arkansas Pollution Control & Ecology Commission**Con~ct** Mike Bates E-mail bates®adeq.state.ar.Pfr%ne (501) 682-0750 Statutory Authority for Promulgating Rules A. C. A. §8 -4-2 011 § 8-4-2 02 1 §8 -4-3 041 & §8 -4-311



### RuleTitle: Reg. No. 91 Permit Fee Regulations; Docket 11-007-R; MO 12-23

Intended Effective Date Date [Check One) 

## D Emergency (ACA 25-15-204) 

## D 30 Days After Filing (ACA 25-15-204) 

## D Other

____________________ _ Legal Notice Published
Final Date for Public Comment
Reviewed by Legislatice Council 1210712012
0113112012
0611312012 (Must be more than 30 days after filing date.) Adopted by State Agency 0 6 

### I 2 2 

### I 2 012

Electronic Copy of Rule submitted under ACA 25-15-218 by: Mike Bates bates®adeq.state.ar.us 0612912012

Contact Person E-mail Address 

### CERTIFICATION OF AUTHORIZED OFFICER I Hereby Certify That The Attached Rules Were Adopted In Compliance with Act 434 of 1967 the Arkansas Administrative Procedures Act. (ACA**~-15-201** et.**~.)** 

# L I VlU'l N

# ~ -jrT"l__.,. (_ 

### / i**:r::~!~-** c: 

### 'ilA.t-**~** 

## I**~.;,t·** ::2 Signature 1**~=?** :· - N ; ' \.0 (501) 682-7890 charles.moulton®arkansisag:gov**-~**

Phone Number E-mail Address · -" _-- ,) Administrativer Hearing Officer

## ~~-~-**~;_** 

# I I :i::>-2::- •• Ulrn c...n Title 0612912012 Date
Revised B/2011 to reflect new legislation passed tn 2011. Date



### ./;I



### - __, f'T1 rr1 

### :::oC a**~**ARKANSAS POLLUTION CONTROL & ECOLOGY COMMISSION

June 29, 2012

Ms. Donna Davis 101 EAST CAPITOL SUITE 205 LITTLE ROCK, ARKANSAS 72201 PHONE: (501) 682-7890

FAX: (501) 682-7891**~** 

### . . '\ 

### . JUN 

## 29 

## 2J12
E ,_; r·\t::r\ 

### u 

## v F LEGISLATIVE RESEARCH Administrative Rules and Regulations Room 433, State Capitol Building Little Rock, Arkansas 72201 Committee

RE: Regulation No. 9, Permit Fee Regulation; Docket No. 11-007- R - FINAL FILING.

Dear Ms. Davis:
I am enclosing the following for filing with your office:
1. Two (2) hard copies of the amendment to Regulation No. 9, Permit Fee Regulation. 2. Two (2) copies of Commission Minute Order No. 12-23 3. Two (2) copies of the Financial Impact Statement.
Please provide written confirmation of your receipt of these materials by file-marking the enclosed copy of this letter and returning it to me.
Thank you for your assistance in this matter.

Respectfully,

Charles Moulton Administrative Hearing Officer

EnclosuresFor Office Use Only 

### Effective Date: 

# ARKANSAS STATE LIBRARY Agency Certification Fornt For Depositing Final Rules and Regulations At the Arkansas State Library

Documents Services • Arkansas State Library One Capitol Mall• Little Rock, AR 72201-1094 501-682-2326 Phone; 501-682-1532 FAX

Classification Number: Name of Agency: Arkansas Department of Environmental Quality : '**~·. ~"** **~.** (J**~** (J, (/,**~** rT) r**o~·** -..-,



# -- ;x:.. ;;c -<



### Contact Person: Mike Bates Telephone: (501) 682-0750 Statutory Authoriry for**Promu~atin_g** 

### Rules: A.C.A. §8-4-201,_§8-4-202, §8-4-304, and §8-4-311 f·

........... , '"'-;,
::



## .

- r-.,;, I..C
-ry ·--_ .... .: .) cr a



### Title of Rule:**R~ulation** 

### No 9, Permit Fee Re_gulations; Docket No 11-007-R; Minute Order No. 12-23. Rule Status Effective Date Status Effective Date 

## 0 New Rule/Regulation 

## 0 Emergency 

### [?SJ Amended Rule/Regulation 

### [g) 10 Days after filing July 9, 2012 

# D Repealed Rule/Regulation 

# D Other 

## 0 Order 

# D Repealed 

# 0 Emergency Rule/Regulation Adopted by State Agency



# D Rule above is proposed and will be replaced by final version 

### [8J Financial and/or Fiscal Impact Statement Attached



# Certification of Authorized Officer

I hereby certify that the attached rules were a? in compliance with Act 434 of 1967 as amended. 

### Signature:

# ~**~** L

# ::h/~Li Date: June

# 29~ 2012 Title: AdminiStrative Hearing Officer**~** v

1/14/99 ,,·· ..**~-··** --:,' (C: or. (/) r :;-'
.-_) •(,ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION

MINUTE ORDER NO. 12- 

### ':.\3 SUBJECT Adoption of Revisions to Regulation 9, Fee Regulation
DOCKET NO. 11-007-R
PAGE 1 OF 1

Pursuant to public notice and hearing, and in consideration of comments received, the Arkansas Pollution Control and Ecology Commission hereby adopts changes to Regulation No.9, Fee Regulation.

PROMULGATED THIS 

### 22"d DAY OF JUNE, 

### 2012, BY ORDER OF THE ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION.

BY:

ATTEST: 

# dw,'-t11ruL

Teresa Marks, Director

# ~MYRS J. 

### Bates

# -----~~~~--- L. Bengal

_______ J. Chamberlin(Chair)**--~~** ___ J.Fox

### ~ D.Hendrix 

# M L. Hitchcock

### 1l,.~,.llr-" S. Jorgensen (Vice Chair) _____ f,.......:;.._D. Samples
----:-::------ L. Sickel

- --+tta...._A--

____ J. Simpson 

# ro-

------- W. Thompson**4---.,~B.** White 

# 6fV R.Young

# ~~~ SUBMITTED BY: Mike Bates PASSED: 06/22/12

## ()~. Chamberlin, Chair

### Tab G Procedural Requirements

### GHG Tailoring Rule

- Regulation Tracking Sheets - Arkansas Register Transmittal Sheets
- Arka nsas State Library Agency Certification Forms1 of 2 EXHIBIT D ADEQ REGULATIONS TRACKING SHEET Regulation No. 9 Common Name: Fee Regulations

1. Strawman review of draft regulation by key groups.
initiated completed incorporated
EPA 12/02/2011 1/31/2012 N/A ADEQ Legal/Admin. 10/15/2010 4/09/2012 4/09/2012
Industrial/ 2/15/2010 3/14/2012 N/A Environmental Groups Comments: Revisions to the Fee Regulations were th e result of stakeholder meetings and a rigorous public process. No changes were made to the originally proposed revisions as a result of comments received during this process. 2. Proposed regulation presentation to Commission's Regulations Committee for approval to proceed to public comment period.
Date: 12/02/2011 By: Mike Bates Comments/Approval: Committee recommended adoption of Petition to initiate rulemaking
3. Legal notice of proposed regulation and public hearing. publication dates of publication
Arkansas Democrat-Gazette 12/07/2011 and 12/08/2011
4. Provide Legislative Council with three copies of proposed regul ation and the legislative questionnaire at least ten days prior to the first public hearing.
Date Delivered: 11/18/2011

5. Hold public hearing(s) on the proposed regulation.
location date hearing chairman ADEQ Commission Room 1/17/2012 Stan Jorgensen

6. Date of final day of public comment period: 1/31/2012

7. Final proposed regulation and response to comments prepared by Department.
Date initiated: 3/23/2011 Date completed: 3/30/2012

8. Formal presentation to the Public Health & Welfare Committee of the Legislative Council.
Date: 5/17/2012 By: Teresa MarksComments/Approval: Approval received by Committee

9. Formal presentation of proposed final regulation to the Administrative Rules & Regulations Subcommittee of the Legislative Council (All Regs).
Date: 6/13/2012 By: Teresa Marks Comments/Approval: Approval received by Committee

10. Presentation of proposed final regulation to Commission's Regulations Committee.
Date: 6/22/2012 By: Mike Bates Comments/Approval: Committee recommended adoption of final rulemaking.

11. Provide Commission members with copy of proposed final regulation prior to Commission meeting.

Date Delivered: """6/,_,0:..=8,_/1'-=2=--------------------------

12. Present proposed final regulation to the Commission for adoption.
Date: 6/22/2012 By: Mike Bates Comments/Approval: Commission approved adoption of final rulemaking.

13. Send two copies of adopted regulation to Secretary of State (regulation will become effective July 12, 2012, "effective ten days after filing").
Date mailed: Upon final promulgation of Regulation.

14. Formally submit adopted regulation to EPA.
Date mailed: Upon final promulgation of Regulation.
PREPARED BY: ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY

By:

# ~klP-----'-'- 1

# ~~c...=:..=.=---<-. __ Mike Bates

2 of2 EXHIBIT D

# ARKANSAS REGISTER Transmittal Sheet
*Use only for FINAL and EMERGENCY RULES

For Office Use Only: Secretary of State 

### Mark Martin State Capitol, Suite 026 Little Rock, Arkansas 72201-1094 (501) 682-3527 

### www.sos.arkansas.gov

Effective Date Code Number

____________________________ __

Name of Agency Arkansas Department of Environmental Quality Department Arkansas Pollution Control & Ecology Commission**Con~ct** Mike Bates E-mail bates®adeq.state.ar.Pfr%ne (501) 682-0750 Statutory Authority for Promulgating Rules A. C. A. §8 -4-2 011 § 8-4-2 02 1 §8 -4-3 041 & §8 -4-311



### RuleTitle: Reg. No. 91 Permit Fee Regulations; Docket 11-007-R; MO 12-23

Intended Effective Date Date [Check One) 

## D Emergency (ACA 25-15-204) 

## D 30 Days After Filing (ACA 25-15-204) 

## D Other

____________________ _ Legal Notice Published
Final Date for Public Comment
Reviewed by Legislatice Council 1210712012
0113112012
0611312012 (Must be more than 30 days after filing date.) Adopted by State Agency 0 6 

### I 2 2 

### I 2 012

Electronic Copy of Rule submitted under ACA 25-15-218 by: Mike Bates bates®adeq.state.ar.us 0612912012

Contact Person E-mail Address 

### CERTIFICATION OF AUTHORIZED OFFICER I Hereby Certify That The Attached Rules Were Adopted In Compliance with Act 434 of 1967 the Arkansas Administrative Procedures Act. (ACA**~-15-201** et.**~.)** 

# L I VlU'l N

# ~ -jrT"l__.,. (_ 

### / i**:r::~!~-** c: 

### 'ilA.t-**~** 

## I**~.;,t·** ::2 Signature 1**~=?** :· - N ; ' \.0 (501) 682-7890 charles.moulton®arkansisag:gov**-~**

Phone Number E-mail Address · -" _-- ,) Administrativer Hearing Officer

## ~~-~-**~;_** 

# I I :i::>-2::- •• Ulrn c...n Title 0612912012 Date
Revised B/2011 to reflect new legislation passed tn 2011. Date



### ./;I



### - __, f'T1 rr1 

### :::oC a**~**For Office Use Only 

### Effective Date: 

# ARKANSAS STATE LIBRARY Agency Certification Fornt For Depositing Final Rules and Regulations At the Arkansas State Library

Documents Services • Arkansas State Library One Capitol Mall• Little Rock, AR 72201-1094 501-682-2326 Phone; 501-682-1532 FAX

Classification Number: Name of Agency: Arkansas Department of Environmental Quality : '**~·. ~"** **~.** (J**~** (J, (/,**~** rT) r**o~·** -..-,



# -- ;x:.. ;;c -<



### Contact Person: Mike Bates Telephone: (501) 682-0750 Statutory Authoriry for**Promu~atin_g** 

### Rules: A.C.A. §8-4-201,_§8-4-202, §8-4-304, and §8-4-311 f·

........... , '"'-;,
::



## .

- r-.,;, I..C
-ry ·--_ .... .: .) cr a



### Title of Rule:**R~ulation** 

### No 9, Permit Fee Re_gulations; Docket No 11-007-R; Minute Order No. 12-23. Rule Status Effective Date Status Effective Date 

## 0 New Rule/Regulation 

## 0 Emergency 

### [?SJ Amended Rule/Regulation 

### [g) 10 Days after filing July 9, 2012 

# D Repealed Rule/Regulation 

# D Other 

## 0 Order 

# D Repealed 

# 0 Emergency Rule/Regulation Adopted by State Agency



# D Rule above is proposed and will be replaced by final version 

### [8J Financial and/or Fiscal Impact Statement Attached



# Certification of Authorized Officer

I hereby certify that the attached rules were a? in compliance with Act 434 of 1967 as amended. 

### Signature:

# ~**~** L

# ::h/~Li Date: June

# 29~ 2012 Title: AdminiStrative Hearing Officer**~** v

1/14/99 ,,·· ..**~-··** --:,' (C: or. (/) r :;-'
.-_) •(,

### Tab H Public Participation

### GHG Tailoring Rule: Regulations 9, 19, and 26

- Public Notice Information - Public Hearing Sign-in Sheets
- Public Comments and Responsiveness Summaries

### NOTICE OF PUBLIC HEARI NG FOR REGULATION CHANGES
The Arkansas Pollution Control and Ecol ogy Commission (APC&EC) will hold a public hearing at North Little Rock January 17, 2012, to receive comments on proposed changes to Commission Regulation 9, which governs the permit fee program for the Arkansas Department of Environmental Quality (ADEQ). The h earing will begin at 2:00 p.m. in the ADEQ Commission Room at the agency headquarters building, 5301 Northshore Drive, North Little Rock. The deadline for submitting written comments on the proposed changes is 4:30 p.m. January 31, 2012. APC&EC authority to ame nd Regulation 9 is found in Arkansas Code Annotated Sections 8-4-201, 8-4-20 2, 8-4-304, and 8-4-311. In the event of inclement weather or othe r unforeseen circumstances, a decision may be made to postpone the hearing. If the hearing is postponed and rescheduled, a new legal notice will be published to announce the details of the new hearing date and comment period. The only substantive proposed change to Regul ation 9 is in Chapter 5, which deals with fees for permits issued by the ADEQ Air Di vision, and would exclude carbon dioxide and methane from being chargeable emissions under air permit fee formulas. Other proposed revisions to th e regulation involve corrections of typographical errors and formatting changes. Copies of the proposed changes to Regulati on 9 are available for public inspection during normal business hours at the ADEQ Public Outre ach and Assistance Division on the second floor of the headquarters building, or at ADEQ informa tion depositories located in public libraries at Arkadelphia, Batesville, Blytheville, Camden, Clin ton, Crossett, El Dorado, Fayetteville, Forrest City, Fort Smith, Harrison, Helena, Hope, Hot Sp rings, Jonesboro, Little Rock, Magnolia, Mena, Monticello, Mountain Home, Russellville, Pocahontas , Searcy, Stuttgart, Texarkana, and West Memphis; in campus libraries at the University of Arkansas at Pine Bluff and the University of Central Arkansas at Conway; and in the Arka nsas State Library, 900 W. Capitol, Suite 100, Little Rock. In addition, a copy of the proposed changes, along with related support documents, is available for viewing or downloading at the ADEQ’s Internet web site at www.adeq.state.ar.us

. Oral and written comments will be accepte d at the hearing, but written comments are preferred in the interest of accuracy. In addition, written or electronic mail comments will be accepted if submitted no later than 4:30 p.m. January 31, 2012. Written comments should be sent to Doug Szenher, Public Outreach and Assi stance Division, Arkansas Department of Environmental Quality, 5301 Northshore Drive, North Little Rock, AR 72118. Electronic mail comments should be sent to reg-comment@adeq.state.ar.us

. Published December 7 and 8, 2011, Teresa Marks, Director, Arkansas Department of Environmental Quality,

# Arkansas Democrat
STATEMENT OF LEGAL ADVERTISING

ADEQ 5301 N SHORE DR NORTH LITTLE ROCK AR 72118 ATTN: DATE 12/08/11 ACCT #: L844316

STATE OF ARKANSAS, COUNTY OF PULASKI, Fiscal Office INVOICE #: 2709831 P.O. #:

ss. I, Elizabeth Myers do solemnly swear that I am the Legal Billing Clerk of the Arkansas Democrat

- Gazette, a daily newspaper printed and published in said Count¥, State of Arkansas; that I was so related to th1s publication at and during the publication of the annexed legal advertisement in the matter of: public hearing pending in the Court, in said Count¥, and at the dates of the several publicat1ons of said advertisement stated below, and that during said periods and at said dates, said**news~aper** was printed and had a bona fide circulat1on in said Co\:mty; that said**news~aper** had been regularly printed and published 1n said County, and had a bona fide circulation therein for the period of one month before the date of the first publication of said advertisement; and that said advertisement was published in the regular daily issues of said newspaper as stated below.

DATE DAY LINAGE RATE 12/07 Wed 126 1.25 12/08 Thu 126 1.25 DATE DAY LINAGE RATE

TOTAL COST

----------------------- Billing Ad #: 70760031 315.00 REMIT TO: ARKANSAS DEMOCRAT-GAZETTE, INC.

. P.O. BOX 2221

LITTLE ROCK, AR 72203

BILLING QUESTIONS CALL378-3812



## AD COPY

### STATE OF ARKANSAS 

### **AMENDMENT to Purchase Order** Purchase Order

Vendor No. Contact Your reference 100049340 

## ACCOUNTS PAYABLE

LITTLE ROCK NEWSPAPERS INC ARKANSAS DEMOCRAT GAZETTE INC PO Box2221 LITTLE ROCK AR 72203

Send Invoice To: AR Dept. of Environmental Quality Attn.: Accounts Payable 5301 Northshore Dr. North Little Rock, AR 72118-5317 Ship To: ADEQ 5301 NORTHSHORE DRIVE NORTH LITTLE ROCK AR 72118-5317 PO No. 4501207023 Date 11/22/2011

Contact Irma G. Hill Telephone 501-682-0744 Fax 501-682-0933

Ourref. EL lncoterms FOB DESTINATION

Item Material/Description QuantityUM Net Price

0010 10111994 1 EA 315.00 ADVERTISEMENT,NEWSPAPER *** Net price changed *** *** Item completely delivered -· Net Value

Payment Terms: Net due in 15 days Total net item value USD**incl~ding** tax



## .

GENERAL CONDITIONS AND INSTRUCTIONS TO VENDOR:

All purchasing rules and regulations defined by the State of**Ark~risas** apply to this document.

Purchasing Official/Fiscal Officer

Department of Environmental Quality Page 1/1

Net Amount

$315.00

$315.00

$315.00

Date

### ARKANSAS DEPARTMENT OF PoLLUTION CoNTROL 

# & EcoLOGY HEARING/MEETING REGISTRATION 

# Name Address Please Prinll.eglbly Street 

### City Slate Zip

## hA~**~<TV\** 

# Arc l..u...-r**~fk<l{** I v

## 5~**J:r~~** 

## fc**~** 

# c J-lQ d. 

# -**oHt~** I \ 

## Organization Represented

Public bearing/meeting on:

## ___:_fh.:J--r~--1+----------- Date: f (t? / 

### r l Location: 

## ft Q 

## E & JJ 1 

### .s1 Page 

### t Of_/_

ACI-7739Page 1 of 3 EXHIBIT B 

### BEFORE THE ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION IN THE MATTER OF AMENDMENTS TO ) REGULATION NO. 9, PERMIT FEE REGULATIONS ) DOCKET NO. 11-007-R

RESPONSIVE SUMMARY FOR REGULATION NO. 9, PERM IT FEE REGULATIONS Pursuant to Ark. Code Ann. § 8-4-202(d)(4 )(C) and Regulation No. 8.815, a responsive summary groups public comments into similar categories and explains why the Arkansas Pollution Control and Ecology Comm ission (“Commission”) accepts or rejects the rationale for each category. On November 18, 2011, the Arkansas Department of Environmental Quality (“ADEQ” or “Department”) filed a Petition to Initiate Ru lemaking to Amend Regulation No. 9, Permit Fee Regulations. Commissioner Stan Jorgensen conducted a public hearing on January 17, 2012, and the public comment period ended January 31, 2012. One comment was received. The following is a summary of the comment regarding the proposed amendments to Regulation No. 9 along with the Commission’s response.

Comment 1: Title 42, Chapter 85, Subchapter V, Sec tion 7661(b)(3)(A), requi res that the owner or operator of “all sources” subject to the requ irement to obtain a permit pay an annual fee. Also, in 7661(b)(3)(B)(i), states must demonstrate the permitting program will result in the collection from “all sources” and from “each regulated pollutant” in order for the program to be approved. The only exceptions seem to be for a permit fee which is le ss than $25 per ton. By exempting two of the greenhouse gas pollutants from paying a permit fee, it appears that the cost of the permitting program is falling on the remaining greenhouse gas pollutants and is out of compliance with federal law.

Response: ADEQ disagrees that the proposed change s are in violation of federal law. The Clean Air Act requires that the state permit fees be sufficient to cover all reasonable costs to develop and administer the (title V) permit pr ogram. 42 U.S.C. § 7661a(b)(3)(A). Additionally, The Clean Air Act states that th e total amount of fees collected shall conf orm to the following:Page 2 of 3 EXHIBIT B 

### (i) The Administrator shall not approve a program as meeting the requirements of this paragraph unless the State demonstrates that, except as otherwise provided in subparagraphs (ii) through (v) of this subparagraph, the program will result in the collection, in the aggregate, from all sour ces subject to subparagraph (A), of an amount not less than $25 per ton of each regulated pollutant, or such other amount as the Administrator may determine adequa tely reflects the reasonable costs of the permit program. 42 U.S.C. § 7661a(b)(3)(B)(i).

Further, EPA promulgated regulations to impl ement the statutory requirements and provide directions for State Program approval at 40 CF R 70. In this regulation, EPA established the elements that State programs must satisfy in or der for the state program to be approved by EPA, including the establishment of a permitting fee system. 40 CFR §70.4 (7) & (8) and 40 CFR 70.9. Specifically, EPA states at 40 CFR §70.9 (b)(3):

“The State program’s fee schedule may includ e emission fees, application fees, servicebased fees or other types of fees, or any co mbination thereof, to meet the requirements of paragraph (b)(1) or (b)(2) of this section. Nothing in the provisions of this section shall require a permittin g authority to calculate fees on any particular basis or in the same manner for all part 70 sources, all classes or categories of part 70 sources, or all regulated air pollutants, provided the pe rmitting authority collect s a total amount of fees sufficient to meet th e program support requirements of paragraph (b)(1) of this section .” (Emphasis added.)

The federal Clean Air Act and the implementing re gulations, as noted above, provide significant discretionary authority for a State to craft its permitting fee system to the specific needs of the individual State.

EPA’s Tailoring Rule (Tailoring Ru le) did not require States to change permit fee requirements to address greenhouse gases nor di d it require States to submit a new permit fee demonstration under 40 CFR §70.9 for state program revisions re lated to permitting greenhouse gases. 75 FR 31584, June 3, 2010. The Tailoring Rule allows States to use their discretion related to fees forgreenhouse gases, so long as fee collections are adequate for the administration of the title V
program. EPA has previously determined that the Arkansas permit fee system is adequate and satisfies the federal requirements. 66 FR 51314, October 9, 2001. ADEQ believes that the fees currently collected for air permits, which do not include fees for carbon dioxide or methane emissions, are sufficient to fund the program at this time. ADEQ does not anticipate that permitting carbon dioxide or methane emissions will substantially increase costs incurred by the Department. In the event that permitting carbon dioxide or methane emissions increases costs to the agency such that the permit fees collected are inadequate to fund the program, then the Department will consider charging for carbon dioxide and methane emissions, as was stated in

our petition to initiate this rulemaking and as allowed in the Tailoring Rule.

No change to the proposed rule is necessary due to this comment.

Arkansas Department of Environmental Quality

By: Mike Ba,tes, Chief, Air Division

Page 3 of3 EXHIBITB