Molly Joseph Ward Secretary of Natural Resources 

# COMMONWEALTH of VIRGINIA

DEPARTMENT OF ENVIRONMENTAL QUALITY

Street address : 629 East Main Street

, Richmond, Virginia 23219

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

Fax (804) 698-4500 TDD (804) 698

- 4021

www .deq. virginia

. gov



## J U N 1 8 

## 20 1 4

Ms. Diana Esher, Director

Air Protection Division (3APOO)

U.S. Environmental Protection Agency, Region III

1650 Arch Street Philadelphia, Pennsylvania 19103-2029 Dav i d K

. Paylor

Director

(804) 698-4020

1

- 800-592 -5 482

Reference: § 110(a)(2) Infrastructure Requirements for Sulfur

Dioxide (Revision KS)

Dear Ms. Esher:

Pursuant to the requirements of§ 110 of the Clean Air Act, we are officially requesting approval of a revision to the Commonwealth of Virginia State Implementation Plan (SIP) approved under the authority of§ 10.1-1185 of the Virginia Air Pollution Control Law and

submitted in accordance with the requirements of 40 CFR Part 51 (Requirements for Preparation, Adoption, and Submittal ofimplementation Plans).

This revision consists of a demonstration that the Commonwealth has met the

infrastructure requirements of§ 110(a)(2) of the federal Clean Air Act for the 2010 national

ambient air quality standard for sulfur dioxide.

Enclosed are the following:

1. § 110(a)(2) sulfur dioxide infrastructure demonstration

.

2

. Certification of public participation activities.3. Public participation record.

4. An electronic copy (CD) of the complete submittal. This electronic copy is an

exact duplicate of the hard copy.

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

DKP\kgs

TEMPLATES\SIP-PLAN\PLNOO
SIP\ASSESSMENT\KS-SIP.DOC

Enclosures David K. Paylor1 COMMONWEALTH OF VIRGINIA

§ 110(a)(2) REQUIREMENTS IN THE
VIRGINIA STATE IMPLEMENTATION PLAN
FOR THE 2010 SO 2 PRIMARY NAAQS

A State Implementation Plan (SIP) is a plan for each state that identifies how that state will attain and maintain the primary and secondary National Ambient Air Quality Standards (NAAQS). The SIP contains regulations, source

- specific requirements, non

regulatory items such as plans and inventories, and other types o f submittals designed to satisfy requirements promulgated by the U.S. Environmental Protection Agency (EPA). The initial SIPs for states were approved on May 31, 1972. SIPs may be revised by the state with EPA approval. The federally enforceable SIP for the Commonwealth of Virginia is compiled in Subpart VV of 40 CFR Part 52.

Section 110(a) of the federal Clean Air Act (CAA) requires that each SIP provide for the implementation, maintenance, and enforcement of the NAAQS. This section also requires that within three years of the promulgation of a NAAQS, a state must adopt and
submit such a plan to EPA. These infrastructure SIPs provide assurances of state
resources and authorities . W here necessary, the infrastructure SIPs establish the basic state prog rams to implement, maintain, and enforce new or revised standards. Often, these SIPs simply reaffirm that the appropriate framework exists for any new NAAQS. The requirements of § 110(a)(2) of the federal CAA relevant to the 20 10 sulfur dioxide (SO 2 ) NAAQS that are required to be in Virginia’s SIP are already cont ained in Virginia’s current SIP

, have been submitted to EPA , or are contained herein.

Not all requirements of § 110(a)(2) need to be addressed as part of the infrastructure
SIP submittal. In particular, three requirements are not included :

**•** Section 110(a)(2)(D)(i)(I): Since EPA has not yet quantified Virginia’s obligation, if any, regarding the 2010 S O 2 NAAQS, this submittal does not contain information regarding § 110(a)(2)(D)(i)(I).

**•** Section 110(a)(2)(I): Inf ormation regarding § 110(a)(2)(I) for nonattainment area pl an revisions is also not included. The specific plan submissions for designated nonattainment areas, as required under CAA title I part D, are subject to different submission schedules than those for § 110(a) infrastructure elements.
T herefore, EPA does not require infrastructure submissions to address § 110(a)(2)(I).

**•** Section 110(a)(2)(J), visibility: The promulgation of new or revised NAAQS do es not include new visibility protection requirements under the CAA, title I, part C

. Therefore , states are not required to implement visibility protection obligations pursuant to § 110(a)(2)(J) based on the promulgation of a new or revised NAAQS , and EPA does not require infrastructure submissions to address this requirement under § 110(a)(2)(J).2 The previous SO 2 NAAQS was established in 1971. The 1971 SO 2 NAAQS set primary standards of 0.14 ppm over 24 hours and 0.03 ppm annually

, as well as secondary standards of 0.05 ppm on a 3

- hour average and 0.02 ppm annually. In 1973, the secondary annual standard was revoked. On June 2 , 2010, th e primary standard was strengthened by establishing a new standard at the level of 75 ppb averaged over one
hour and calculated as the three

- year average of the 9 9 th percentile of the annual distribution of daily maximum one hour average concentrations. Both the annual and

24

- hour standards were revoked. The 2010 SO 2 primary NAAQS was subsequently published in the Federal Register on June 22, 2010 (75 FR 35520 ).

The CAA requires EPA to complete the initial designation process within two years of promulgating a new or revised NAAQS. If the Administrator has insufficient information to make these designations, EPA has the authority to extend the designation process by up to one year. On July 27, 2012, EPA extended the deadline for area designations and is required to complete initial designations by June 3, 2013.

Virginia submitted a designation recommen d ation letter to EPA on J une 2, 2011 , in which Virgin i a recommended a designation of unclassifiable for the entire
Commonwealth. This recommendation was based on an acknowledgement that monitored levels, which demonstrate healthy SO 2 air quality across the Commonwealth, may not be representative of specific major source impacts and other high emissions locations that are targeted by the designation and evaluation procedures that were promulgate d along with the new standard.

On February 6, 2013, EPA sent a letter to the Commonwealth noting the receipt of the
June 2, 2011 recommendations and advising Virginia t hat EPA was deferring action to designate areas in the Commonwealth u ntil additional data are gathered pursuant to a comprehensive implementation strategy.

The following describes each specific EPA requirement and how each requirement is being met by the Commonwealth.

**Section 110(a)(2)(A):** “Each such plan shall include enforceable emission limitations and other control measures, means, or techniques (including economic incentives such as fees, marketable permits, and auctions of emissions rights), as well as schedules
and timetable s for compliance, as may be necessary or appropriate to meet the applicable requirements of this Act;”

Virginia’s enforceable emission limitations and other control measures are those provisions of the following chapters that have been approved in Virginia’s SIP in 40 CFR 52.2420(c).

 9VAC5 Chapter 40 (Existing Stationary Sources)

 9VAC5 Chapter 45 (Commercial and Consumer Products)3  9VAC5 Chapter 50 (New and Modified Stationary So urces)

 9VAC5 Chapter 91 (Motor Vehicle Inspection and Maintenance Program for Northern Virginia )

 9VAC5 Chapter 140 (Emissions Trading)

**Section 110(a)(2)(B):** “Each such plan shall provide for establishment and operation of appropriate devices, methods, systems, and procedures necessary to – (i) monitor, compile, and analyze d a ta on ambient air quality, and (ii) upon request, make such data available to the Administrator;”

Virginia maintains and operates a n SO 2 monitoring network to measure ambient
concentrations within the Commonwealth for comparison to the NAAQS

. This

n etwork meets current federal requirements

. N etwork improvements needed to meet future federal requirements will be implemented using any updated procedures for siting and monitoring procurement.

All data are measured using EPA approved methods as either r eference or

e quivalent monitors ; all monitors are subject to the quality assurance requirements of 40 CFR Part 58 ; and all samplers are located at sites that have met the minimum siting requirements of 40 CFR Part 58. The data are submitted to EPA’s Air Quality System (AQS) in accordance with the schedule prescribed by 40 CFR Part 58.

In order to keep EPA informed of changes to the sampling ne twork, Virginia provides EPA Region III with prior notification of any planned changes to the network. As needed, details of these changes and anticipated approvals of the changes are communicated to EPA. On an annual basis, Virginia sends EPA a

summary of all past and projected changes to the network. This summary provides a description of each change, the reason for each change, and any other information relevant to the change. The most recent summary submitted for year 2012 has been approved by EPA. This summary will be updated as required by federal regulations and is currently updated on an annual basis.

Section 10.1

- 1306 of the Code of Virginia, Inspections, investigations, e tc.,

states:

The Board shall make, or cause to be made, such investigations and inspections and do such other things as are reasonably necessary to carry out the provisions of this chapter, within the limits of the appropriations, study grants, funds, or personnel whic h are available for the purposes of this chapter, including the achievement and maintenance of such levels of air quality as will protect human health, welfare and safety and to the greatest degree practicable prevent injury to plant and animal life and property

...4 This section of the Code of Virginia supports the development and maintenance of an adequate monitoring network to ensure the achievement and maintenance of healthy levels of air quality.

**Section 110(a)(2)(C):** “ Each such plan shall include a p rogram to provide for the enforcement of the measures described in paragraph (A), and regulation of the modification and construction of any stationary source within the areas covered by the plan as necessary to assure that national ambient air quality standards are achieved, including a permit program as required in parts C and D; ”

Enforcement provisions and permit provisions are found in those portio ns of Part V (Enforcement) of 9VAC 5 Chapter 170 (General Administration) and 9VAC 5 Chapter 80 (Permits for Stationary Sources) that are listed in 40 CFR 52.2420. Virginia has a minor new source review permitting program under 9VAC5

- 80

- 10 and 9VAC5

- 80

- 11 (Permits for New and Modified Stationary Sources). Article 8 ( Permits for Major Stationary Sources and Major Modifications Locating in
P revention of Significant Deterioration Areas ) of Part II of 9VAC5 Chapter 80 provides that construction and modification of major stationary sources in prevention of significant deterioration (PSD) areas will not cause or contribute to a violation of any NAAQS, including the 2010 SO 2 NAAQS. On August 1, 2012 (77 FR 45523), EPA proposed approval of Virginia’s most recent PSD SIP revision. Upon final approval of this revision, Virginia’s SIP will include a permit program as required to address this infrastructure element for the 2010 SO 2 NAAQS . Virginia’s PSD program applies to greenhouse gases through 9VAC5 Chapter 85, Permits for Stationary Sources of Pollutants Subject to Regulation

, which implements EPA’s greenhouse gas tailoring requirements . Other aspects for enforcement are found in the source monitoring, source testing and test methods, and record keeping and reporting provisions of 9VAC5 Chapters 40, 50, and 140 that are listed in 40 CFR 52.2420

.

**Section 110(a)(2) (D)(i)(II):**  “ Each such plan shall contain adequate provision s prohibiting, consistent with the provisions of this title, any source or other type of emissions activity within the State from emitting any air pollution in amounts which will
interfere with m easures required to be included in the applicable implementation plan for any other State under Part C to prevent significant deterioration of air quality or to protect visibility ”

Virginia 's PSD permitting program is regulated under Article 8 (Permits f or Major Stationary Sources and Major Modifications Locating in Prevention of Significant Deterioration Areas) of Part II of 9 VAC5 Chapter 80. This program provides that construction and modification of major stationary sources in PSD areas will not

cause or contribute to a violation of any NAAQS, including the 2010 SO 2 NAAQS . On August 1, 2012 (77 FR 45523), EPA proposed approval of Virginia’s5 most recent PSD SIP revision. Upon final approval of this revision, Virginia’s SIP will include a permit program as required to address this infrastructure element
for the 2010 SO 2 NAAQS . Virginia’s PSD program applie s to greenhouse gases through 9 VAC5 Chapter 85, Permits for Stationary Sources of Pollutants Su bject to Regulation , which implements EPA’s greenhouse gas tailoring requirements

. With respect to sources located in nonattainment areas and thus not subject to the PSD process, Virginia’s SIP includes a fully approved nonattainment permitting program under Article 9 ( Permits for Major Stationary Sources an d Major Modifications Locating in Nonattainment Areas or the Ozone Transport Region ) of Part II of 9VAC5 Chapter 80 (Permits for Major Stationary Sources).

On October 4, 2010, Virginia submitted a Regional Haze SIP r evision to meet the regulatory requirements of Subpart P of 40 CFR Part 51 and statutory requirements set forth at CAA §§ 169A and 169B. EPA granted limited approval of this SIP revision on June 13, 2012 (77 FR 35287). This Regional Haze SIP

r evision s at isfies Virginia's obligations regarding § 110(a)(2)(D)(i) (II)

. Additionally, the Clean Air Interstate Rule is an enforceable portion of Virginia’s
SIP under 9VAC5

- 140 (Regulation for Emissions Trading) Part II, Part III, and Part IV, and these requirements will help ensure that Virginia electrical generating unit emissions will not interfere with neighboring states’ reasonable progress towards visibility improvement in Class I areas.

**Section 110(a)(2)(D)(ii):** “ Each such plan shall contain adequate provisions insuring compliance with the applicable requirements of §§ 126 and 115 (relating to interstate and international pollution abatement) ”

Section 126(a) directs each SIP to include provisions requiring a new or modified source to notify neighboring stat es of potential impacts from that source. Major stationary sources of SO 2 in Virginia are currently subject to PSD NSR permitting programs. These provisions to implement Part C may be found in Article 8 (Permits for Major Stationary Sources and Major Modifications Locating in Prevention of Significant Deterioration Areas) of Part II of 9VAC5 Chapter 80, and in 9VAC5 Chapter 85 (Permits for Stationary Sources Subject to Regulation)

, which ha ve been approved in Virginia’s SIP in 40 CFR 52.2420(c). 9 VAC5

- 80

- 1775 specifically requires notification to local air pollution control agencies and any state whose lands may be affected by emissions from the source or modification. Virginia is not subject to any pending actions or petitions regarding
SO 2 under §§ 115, 126(b), or 126(c). No source or sources within Virginia are the subject of an active finding under § 126 with respect to any pollutant. There are no final findings under § 115 against Virg i nia with respect to any pollutant.

**Section 110(a)(2)(E)(i) :**  “ Each such plan shall provide necessary assurances that the State (or, except where the Administrator deems inappropriate, the general purpose local government or governments, or a regional agency designated by the State or general purpose local governments for such purpose) will have adequate personnel,6 funding, and authority under State (and, as appropriate, local) law to carry out such implementation plan (and is not prohibited by any provision of Federal or State Law from carrying out such implementation plan or portion thereof). ”

Code of Virginia

, Title 10.1

, Chapter 13, Air Pollution Control Board

, gives broad authority to develop, implement, and enforce the implementation plan. Section
10.1

- 1308 provides the board adequate legal authority to adop t emission standards and compliance schedules applicable to regulated entities. This section provides authority to adopt emission standards, limitations, and any other measures necessary for attainment and maintenance of national standards.
Sections 10.1

- 1307, 10.1

- 1307.3, 10.1

- 1309, 10.1

- 1316, 10.1

- 1320, and 10.1

- 1322 provide the board adequate legal authority to enforce applicable laws, regulations standards, and compliance schedules. The provisions also allow for injunctive re lief. In addition, § 10.1

- 1186 provides the department legal authority to enforce applicable laws, regulations, standards, and compliance schedules.

The resources to carry out the implementation plan are provided through general funds, Title V funds, and the §§ 103 and 105 g rant process.

Virginia's Title V fee requirements are located in Article 2 ( Permit Program
Emissions Fees for Stationary Sources ) of 9VAC5

- 80 (Permits for Stationary Sources). These regulations are part of Virginia’s federally approved Title V

program and are codified in Appendix A of 40 CFR Part 70, Approval Status of State and Local Operating Permits Programs. Additionally, Title V fees are collected under the authority of § 10.1

- 1322. Changes in future years to this funding mechanism would require changes to legal authority.

Virginia has adequate personnel to carry out the SIP with respect to SO 2 requirements. Should EPA determine that Virginia lacks adequate personnel to carry out the SIP, EPA may issue a finding with respect to that deficiency. Virginia would then have a legal obligation to correct that deficiency.

**Section 110(a)(2)(E)(ii):** “ Each such plan shall provide requirements such t hat the State comply with the requirements respecting State boards under § 128. ”

The board has the authority to approve regulations, enforcement actions, and permits. Section 10.1

- 1302 is as stringent as § 128(a)(1) of the Clean Air Act
and ensures that at least a majority o f the members of the board represent the public interest and do not d erive any significant portion of their income from persons subject to permits or enforcement orders of the board as required by § 128(a)(1) of the Clean Air Act. Se e Virginia’s SIP revision submitted on June 8, 2010 and approved by EPA on October 11, 2011 (76 FR 62635)

. In addition, the State or Local Government Conflict of Interests Act (§ 2.2

- 3100 et seq.) provides
the means f or disclosure of p otential conflicts o f interest as required by § 128(a)(2) of the Clean Air Act. Virginia's Regulation for General Administration7 (9VAC5

- 170) is in the process of being amended to ensure that this provision of the Clean Air Act is adequately addressed; these amendments will be submitted to EPA as a SIP revision as expeditiously as practical.

Section 110(a)(2)(E)(iii): “ Each such plan shall provide necessary assurances that, where the State has relied on a local or regional government, agency, or instrumentality for the implementation of any plan provision, the State has responsibility for ensuring adequate implementation of such plan provision ;”

Virginia does not rely on localities to implement SIP provisions regarding the
2010 SO 2 NAAQS

.

**Section 110(a)(2)(F)(i):** “ Each such plan shall require, as may be prescribed by the Administrator, the installation, maintenance, and replacement of equipment, and the implementation of other necessary steps, by owners or operators of stationary sources
to monitor emissions from such so urces ;”

These requirements are included in those provisions of 9VAC5 Chapters 20, 40

, 50 , and 80 that are approved in the SIP under 40 CFR 52.2420

. Additionally, Virginia’s SIP contains no provision preventing the use of any credible evidence.

**Secti on 110(a)(2)(F)(ii):**  “ Each such plan shall require, as may be prescribed by the Administrator, periodic reports on the nature and amounts of emissions and emissions

related data from such sources ;”

Requirements for periodic reports on the nature and amounts of emissions and
emissions

- related data are included in 9VAC5

- 20

- 160 ( Registration ) of 9VAC5 Chapter 20 (General Provisions)

. Such data are also required by Part I of 9VAC5 Chapter 40 (Existing Stationary Sources) as well as Parts I and II of
9VAC 5 Chapter 50 (New and Modified Stationary Sources)

. These SIP provisions are approved under 40 CFR 52.2420.

Compliance certification requirements and compliance assurance monitoring requirements applicable to Title V facilities are located in Article 1, Federal Operating Permits for Stationary Sources (9VAC5

- 80

- 50 et seq.) of 9VAC5

- 80 (Permits for Stationary Sources), and specifically at 9VAC5

- 80

- 80 and 9VAC5

- 80

- 110, respectively. These regulations are part of Virginia’s federally approved Title V progr am and are codified in Appendix A of 40 CFR Part 70, Approval Status of State and Local Operating Permits Programs.

Virginia meets all requirements of Subpart A of 40 CFR Part 51, Air Emissions Reporting Requirement. Should requirements for data submittals change as a8 result of the 2010 SO 2 NAAQS, Virginia has authority under 9VAC5

- 20

- 160 to request and gather that information.

**Section 110(a)(2)(F)(iii):** “ Each such plan shall require, as may be prescribed by the Administrator, correlation of such reports by the State agency with any emission limitations or standards established pursuant to this Act, which reports shall be available at reasonable times for public inspection;”

The correlation of such reports is included in Part I of 9VAC5 Chapter 40 and
Part II of 9VAC 5 Chapter 50. 9VAC5

- 170

- 60 (Availability of information) of Part II of 9VAC5 Chapter 170 (Regulation for General Administration) requires that these reports be publicly available. These SIP provisions are approved under 40 CFR 52.2420.

**S ection 110(a)(2)(G):**  “ Each such plan shall provide for authority comparable to that in § 303 and adequate contingency plans to implement such authority ;”

Section 10.1

- 1309 B under Code of Virginia

, Title 10.1, Chapter 1 3, Air Pollution Control Board

, authorize s the board to declare a state of emergency and issue without hearing an emergency special order directing the owner to cease such pollution immediately upon finding that any owner is unreasonably affecting the public health, safety or welfare; t he health of animal or plant life; or property

. Section 10.1

- 1309.1 authorize s the board to issue special orders requiring plans to abate, control, prevent, remove, or contain any substantial and imminent threat to public health or the environment that is reasonably likely to occur if such source ceases operations.

Virginia has appropriate general emergency powers to address SO 2 related episodes. All areas of Virginia are classified as Priority III areas except Eastern

Tennessee

- Southwestern Virginia Interstate Air Quality Control Region and National Capital Interstate Air Quality Control Region, which are classified as Priority I, and Hampton Roads Intrastate Air Quality Control Region, which is classified as Priority II. These priority classifications are described in Subpart H
of 40 CFR Part 51

, Prevention of Air Pollution Emergency Episodes

, and specified for Virginia in 40 CFR 52.2421. Virginia’s emergency plans are found in 9VAC5 Chapter 70 (Air Pollution Episode Prevention) and are approved in 40 CFR 52.2420. These plans meet all current requirements as promulgated in Subpart H of 40 CFR Part 51

, Prevention of Air Pollution Emergency Episodes

.

**Section 110(a)(2)(H)(i):** “

Each such plan shall provide for revision of such plan from time to time as may be necessary to take account of revisions of such national primary or secondary ambient air quality standard or the availability of improved or more expeditious methods of attaining such standard;”9 Virginia’s SIP is a compilation of regulations, plans, and submittals that act to improve and maintain ai r qua lit y at the national standards. The authority to develop or revise the SIP is based on the authority to adopt new regulation s

, revise existing regulations, and conduct business in a ma nner to meet the NAAQS. Co d e of Virginia

, Title 10.1

, Cha p ter 13, Air Pollution Control Board

, gives broad authority to perform these functions. Specifically § 10.1 -1 306 provides authority for the board to act reasonably to achieve and maintain levels of air quality that will protect human health, welfare, and safety. Also , § 10.1

- 1307 provides for the development of a comprehensive program for the study, abatement, and control of all sources of air pollution in the Commonwealth.
Section 10.1

- 1308 provides authority to promulgate regulations to abate, control, and prohibit air pollution throughout the Commonwealth in accordance with the provisions of Virginia’s Administrative Process Act.

**Section 110(a)(2)(H)(ii):** “ Each such plan shall provide for revision of such plan except as provided in paragraph (3)(c), whenever the Administrator finds on the basis of information available to the Administrator that the plan is substantially inadequate to attain the national ambient air quality standard which it implements or to otherwise comply with any additional requirement s established under this Act;”

As noted in the prior paragraph, § 10.1

- 1306 provides authority for the board to act reasonably to achieve and maintain levels of air quality that will protect human health, welfare, and safety. Virginia affirms that the state implementation plan may be revised should the Administrator find that the plan is substantially inadequate to attain a standard or to comply with any additional requirements
under the Act.

**Section 110(a)(2)(J):** “ Each such plan shall meet the applicable requirements of
section 121 (relating to consultation), section 127 (relating to public notification), and part C (relating to prevention of significant deterioration of air quality and visibility protection) ;”

Section 121: All SIP revisions undergo public notice and opportunity fo r public hearing, which provides for comment by the public and includ es local political subdivisions. Further, all regulations promulgated in Virginia are subject to the
Administrative Process Act ( Code of Virginia

, Title 2.2

, Administration of
Government , Chapter 40 ). Regulations promulgated by the State Air Pollution Control Board are also governed by 9VAC5 Chapter 5, Public Participation
Guidelines.

Virginia’s SIP also provides opportunity for consultation with f ederal l and

m anagers. Article 8 ( Permits for Major Stationary Sources and Major Modifications Locating in Prevention of Significant Deterioration Areas ) of Part II10 of 9VAC5 Chapter 80 (Permits for Stationary Sources) specifically provides for
consultation with fe deral l and m anagers in 9 VAC 5- 80

- 1765 ( Sources affecting
federal class I areas – additional requirements ) . The R egional H aze SIP, to which EPA granted limited approval on June 13, 2012 (77 FR 35287), commits Virginia to consultation processes with federal lan d ma nagers on the submittal of
the R egional H aze mid

- course review

.

Therefore, the Commonwealth’s public participation requirements and procedures fulfill the requirements of the § 121 consultation process.

Section 127: Air quality data from Virginia’s monitoring n etwork is published on the Department of Environmental Quality website. As part of the § 105 grant process, Virginia is required to s ubmit monitoring data to the AQS in a timely manner. Virginia publishes an annual summary of all m onitoring data on the DEQ website, including monitoring locations, exceedances, and violations of
standards.

Part C: Article 8 ( Permits for Major Stationary Sources and Major Modifications Locating in Prevention of Significant Deterioration Areas ) of P art II of 9VAC5 Chapter 80 (Permits for Stationary Sources) provides that construction and modification of major stationary sources will not cause or contribute to a violation of any NAAQS, including the 2010 SO 2 NAAQS. On August 1, 2012 (77 FR 45523) , EP A proposed approval of Virginia’s most recent PSD SIP revision

. Upon final approval of this revision, Virginia’s SIP will include a permit program as required to address this infrastructure element for the 2010 SO 2 NAAQS. Virginia’s PSD program applie s t o greenhouse gases through 9 VAC 5 Chapter 85 ( Permits for Stationary Sources of Pollutants S ubject to Regulation ) , which implements EPA’s greenhouse has tailoring requirements

.

**Section 110(a)(2)(K)(i) and (ii):** “ Each such plan shall provide for (i) the performance of such air quality modeling as the Administrator may prescribe for the purpose of predicting the effect on ambient air quality of any emission of any air pollutant for which the Administrator has established a national ambient air quality standard and (ii) the submission, upon request, of data related to such air quality modeling to the
Administrator ”

Article 8, Permits for Major Stationary Sources and Major Modifications Locating in Prevention of Significant Deterioration Areas (9VAC5

- 80

- 1605 et seq.) of
9VAC5

- 80 (Permits for Stationary Sources) contains requirements for pre

construction and post -c onstruction monitoring and modeling. 9VAC5

- 80 -1 715 (Source impact analysis), 9 VAC 5- 80

- 1725 (Air quality models) and 9 VAC 5- 80

- 1735 (Air quality analysis) provide detail on modeling requirements. This data is routinely provided to EPA upon request. Article 8 is included as part of the Virginia SIP as noted in 40 CFR 52.2420.11 Regional air quality modeling inputs and results have been provid ed in numerous SIP submittals. Virginia is a partner in multiple regional planning organizations and provides regional air quality modeling support to states in northeast , mid

Atlantic, and southeast planning organization s . Virginia will continue to share expertise and help create regional air quality models so long as the Commonwealth’s goals and resources allow.

**Section 110(a)(2)(L)(i) and (ii) :**  “ Each such plan shall require the owner or operator of each major stationary source to pay to the permitting authority, as a condition of any permit required under this Act, a fee sufficient to cover (i) the reasonable costs of reviewing and acting upon any application for such a permit, and (ii) if the owner or operator receives a permit for such source, the reasonable costs of implementing and enforcing the terms and conditions of any such permit (not including any court costs or other costs associated with any enforcement action), until such fee requirement is superseded with respect to such sources by the Administrator’s approval of a fee program under title V;”

These requirements are located in Article 2, Permit Program Fees for Stationary Sources (9VAC5

- 80

- 310 et seq.) of 9VAC5

- 80 (Permits for Stationary Sources). These regulations are part of Virginia’s federally approved Title V program and are codified in Appendix A of 40 CFR Part 70, Approval Status of S t ate and Local Operating Permits Programs.

**Section 110(a)(2)(M):** “ Each such plan shall provide for consultation and participation by local political subdivisions affected by the plan;”

All SIP revisions undergo public notice and opportunity for public hearing, which provides for comment by the public and includes local political subdivisions. Further, all regulations promulgated in Virginia are subject to the Administrative Process Act (Code of Virginia, Title 2.2, Administration of Government, Chapter 40). Regulations promulgated by the State Air Pollution Control Board are governed by 9VAC5 Chapter 5, Public Participation Guidelines. Consultation with affected localities for transportation conformity purposes is regulated by 9VAC5 Chapter 151 ( Regulation for Transportation Conformity). Additionally, the Code of Virg inia under § 10.1

- 1307A requires advising, consulting, and cooperating with all agencies of the Commonwealth, political subdivisions, private industries, and any other affected groups when developing programs to improve or maintain air quality. T he Commo nwealth’s public participation requirements and procedures fulfill the requirements for consultation with local political subdivisions affected by the SIP.

SIP \ ASSESSMENT \ KS

- SIP -1- proENCLOSURE 2

CERTIFICATION OF PUBLIC PARTICIPATION ACTIVITIES

As required by 40 CFR Part 51.102(a), the public was given notice of the opportunity to submit written comments concerning a proposed revision to the Commonwealth of Virginia State Implementation Plan. The notice was provided in the Virginia Register of Regulations, along with the location of the proposal for public inspection, on July 1,
2013 . The notice included the announcement of a public hearing pursuant to 40 CFR 51.102(d).

According ly, as required by 40 CFR Part 51.102(a) and (d)(1) and (2), the public was given notice of the hearing in the Virginia Register of Regulations, along with the location of the proposal for public inspection, on July 1, 2013. The attached copy of the
notice provides the evidence required by Section 2.1(f) of Appendix V of 40 CFR Part
51.

The hearing was held in the Second Floor Conference Room A, Department of Environmental Quality, 629 East Main Street, Richmond, Virginia, at 10:00 a.m. on July
31 , 2013. As required by 40 CFR 51.102(f) and Section 2.1(g) of Appendix V of 40 CFR Part 51, the hearing was held in accordance with the information found in the public notice, and according to the state's laws and the requirements of 40 CFR 51.102.

The Regional Administrator for the U.S. Environmental Protection Agency was notified of the hearing, as was each local air pollution control agency which will be significantly affected by the revision and is located in the affected Air Quality Control Regions. In
addi tion, the District of Columbia, Maryland and Tennessee, which share affected interstate Air Quality Control Regions with Virginia, were notified of the hearing. These notifications follow the requirements of 40 CFR Part 51.102(d)(3), (4) and (5).

TEMPLATES \ SIP

- REG \ REG02

- Pc
SIP \ ASSESSMENT \KS- SIP

- 2.DOC

## GENERAL NOTICES/ERRATA

Volume 29, Issue 22 Virginia Register of Regulations July 1, 2013

2718 GENERAL NOTICES/ERRATA STATE AIR POLLUTION CONTROL BOARD

State Implementation Plan Revision - Sulfur Dioxide

Notice of action: The Department of Environmental Quality (DEQ) is announcing an opportunity for public comment on a proposed plan to assure necessary authorities are contained in the state implementation plan (SIP) to allow areas to attain and maintain the national ambient air quality standard for sulfur dioxide (SO 2 ). The Commonwealth intends to submit the plan as a revision to the Commonwealth of Virginia SIP in accordance with the requirements of § 110(a) of the federal Clean Air Act. The SIP is the plan developed by the Commonwealth in order to fulfill its responsibilities under the
federal Clean Air Act to attain and maintain the ambient air quality standards promulgated by the U.S. Environmental Protection Agency (EPA) under the Act.

Purpose of notice: DEQ is seeking comment on the issue of whether the plan demonstrates the Commonwealth's compliance with federal Clean Air Act requirements related to general state plan infrastructure for controlling SO 2

. Public comment period: July 1, 2013, to August 1, 2013.

Public hearing: A public hearing will be conducted at the Department of Environmental Quality, 629 East Main Street, Second Floor Conference Room A, Richmond, Virginia, beginning at 10 a.m. on July 31, 2013.

Description of proposal: The proposed revision will consist of a demonstration of compliance with the general requirements of § 110(a)(2) of the federal Clean Air Act for the 2010

SO 2 national ambient air quality standard (NAAQS).

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

How to comment: DEQ accepts written comments by email, fax, and postal mail. In order to be considered, comments must include the full name, address, and telephone number of the person commenting and be received by DEQ on the last day of the comment period. All information received is part of the public record.

To review proposal: The proposal and any supporting documents are available on the DEQ Air Public Notices for

Plans website: http://www.deq.state.va.us/Programs/Air/PublicNotices/airpla nsandprograms.aspx . The documents may also be obtained by contacting the DEQ representative named below. The public may review the documents between 8:30 a.m. and 4:30 p.m. of each business day until the close of the public comment period at the following DEQ locations: 1) DEQ Main Street Office, 629 East Main Street, 8th Floor, Richmond, VA, telephone (804) 698-4070,

2) Southwest Regional Office, 355-A Deadmore Street, Abingdon, VA, telephone (276) 676- 48 00,

3) Blue Ridge Regional Office, Roanoke Location, 3019 Peters Creek Road, Roanoke, VA, telephone (540) 562- 6700,

4) Blue Ridge Regional Office, Lynchburg Location, 7705 Timberlake Road, Lynchburg, VA, telephone (434) 582- 5120,

5) Valley Regional Office, 4411 Early Road, Harrisonburg, VA, telephone (540) 574-7800,

6) Piedmont Regional Office, 4949-A Cox Road, Glen Allen, VA, telephone (804) 527-5020,

7) Northern Regional Office, 13901 Crown Court, Woodbridge, VA, telephone (703) 583-3800, and

8) Tidewater Regional Office, 5636 Southern Boulevard, Virginia Beach, VA, telephone (757) 518-2000.

Contact Information: Doris A. McLeod, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4197, FAX (804)

698 -4510, TDD (804) 698-4021, or email doris.mcleod@deq.virginia.gov.

STATE CORPORATION COMMISSION

Bureau of Insurance

May 20, 2013

Administrative Letter 2013- 05

To: All Insurers and Other Interested Parties

Re : Legislation Enacted by the 2013 Virginia General Assembly

We have attached for your reference summaries of certain statutes enacted or amended and re-enacted during the 2013 Session of the Virginia General Assembly. The effective date of these statutes is July 1, 2013, except as otherwise indicated in this letter. Each organization to which this letter is being sent should review the summaries carefully and see that notice of these laws is directed to the proper persons, including appointed representatives, to ensure that appropriate action is taken to effect compliance with these new legal requirements. Copies of individual bills may be obtained at http://lis.virginia.gov/lis.htm or via the links we have provided in the summary headings. You may enter the bill number (not the chapter number) on the Virginia General Assembly Home Page, and you will be linked to the Legislative Information System. You may also link from the Legislative Information System to any existing section of the Code of Virginia. All statutory references made in the letter

## GENERAL NOTICES/ERRATA

Volume 29, Issue 22 Virginia Register of Regulations July 1, 2013

2718 GENERAL NOTICES/ERRATA STATE AIR POLLUTION CONTROL BOARD

State Implementation Plan Revision - Sulfur Dioxide

Notice of action: The Department of Environmental Quality (DEQ) is announcing an opportunity for public comment on a proposed plan to assure necessary authorities are contained in the state implementation plan (SIP) to allow areas to attain and maintain the national ambient air quality standard for sulfur dioxide (SO 2 ). The Commonwealth intends to submit the plan as a revision to the Commonwealth of Virginia SIP in accordance with the requirements of § 110(a) of the federal Clean Air Act. The SIP is the plan developed by the Commonwealth in order to fulfill its responsibilities under the
federal Clean Air Act to attain and maintain the ambient air quality standards promulgated by the U.S. Environmental Protection Agency (EPA) under the Act.

Purpose of notice: DEQ is seeking comment on the issue of whether the plan demonstrates the Commonwealth's compliance with federal Clean Air Act requirements related to general state plan infrastructure for controlling SO 2

. Public comment period: July 1, 2013, to August 1, 2013.

Public hearing: A public hearing will be conducted at the Department of Environmental Quality, 629 East Main Street, Second Floor Conference Room A, Richmond, Virginia, beginning at 10 a.m. on July 31, 2013.

Description of proposal: The proposed revision will consist of a demonstration of compliance with the general requirements of § 110(a)(2) of the federal Clean Air Act for the 2010

SO 2 national ambient air quality standard (NAAQS).

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

How to comment: DEQ accepts written comments by email, fax, and postal mail. In order to be considered, comments must include the full name, address, and telephone number of the person commenting and be received by DEQ on the last day of the comment period. All information received is part of the public record.

To review proposal: The proposal and any supporting documents are available on the DEQ Air Public Notices for

Plans website: http://www.deq.state.va.us/Programs/Air/PublicNotices/airpla nsandprograms.aspx . The documents may also be obtained by contacting the DEQ representative named below. The public may review the documents between 8:30 a.m. and 4:30 p.m. of each business day until the close of the public comment period at the following DEQ locations: 1) DEQ Main Street Office, 629 East Main Street, 8th Floor, Richmond, VA, telephone (804) 698-4070,

2) Southwest Regional Office, 355-A Deadmore Street, Abingdon, VA, telephone (276) 676- 48 00,

3) Blue Ridge Regional Office, Roanoke Location, 3019 Peters Creek Road, Roanoke, VA, telephone (540) 562- 6700,

4) Blue Ridge Regional Office, Lynchburg Location, 7705 Timberlake Road, Lynchburg, VA, telephone (434) 582- 5120,

5) Valley Regional Office, 4411 Early Road, Harrisonburg, VA, telephone (540) 574-7800,

6) Piedmont Regional Office, 4949-A Cox Road, Glen Allen, VA, telephone (804) 527-5020,

7) Northern Regional Office, 13901 Crown Court, Woodbridge, VA, telephone (703) 583-3800, and

8) Tidewater Regional Office, 5636 Southern Boulevard, Virginia Beach, VA, telephone (757) 518-2000.

Contact Information: Doris A. McLeod, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4197, FAX (804)

698 -4510, TDD (804) 698-4021, or email doris.mcleod@deq.virginia.gov.

STATE CORPORATION COMMISSION

Bureau of Insurance

May 20, 2013

Administrative Letter 2013- 05

To: All Insurers and Other Interested Parties

Re : Legislation Enacted by the 2013 Virginia General Assembly

We have attached for your reference summaries of certain statutes enacted or amended and re-enacted during the 2013 Session of the Virginia General Assembly. The effective date of these statutes is July 1, 2013, except as otherwise indicated in this letter. Each organization to which this letter is being sent should review the summaries carefully and see that notice of these laws is directed to the proper persons, including appointed representatives, to ensure that appropriate action is taken to effect compliance with these new legal requirements. Copies of individual bills may be obtained at http://lis.virginia.gov/lis.htm or via the links we have provided in the summary headings. You may enter the bill number (not the chapter number) on the Virginia General Assembly Home Page, and you will be linked to the Legislative Information System. You may also link from the Legislative Information System to any existing section of the Code of Virginia. All statutory references made in the letter1 ENCLOSURE 3

PUBLIC PARTICIPATION RECORD

As required by 40 CFR 51.102(e), the complete record of the public comment period

, along with the text of the written comments , is located at the Air Division of the Department of Environmental Quality (DEQ) . The d epartment contact to access this information is the Director, Air Division

.

As required by Section 2.1(h) of Appendix V of 40 CFR Part 51, below is a summary of
the comments received and responses thereto. Included is a brief statement of the subject, the identification of the commenter, the summary of the comment and the response (analysis and action taken). Each issue is discussed in light of all of the
comments received that affect that issue. All comments have been reviewed and responses developed based on an evaluation of the issues raised in consideration of the overall goals and objectives of the air quality program and the intended purpose of
the document under review.

1. SUBJECT: Section 128(a)(2) of the Clean Air Act (CAA)

COMMENTER: U.S. EPA Region III

TEXT: EPA notes that element E(ii) requires states to have provisions approved into the state implementation plan (SIP) that address § 128(a)(2) relating to disclosure of potential conflicts of interest by members of boards that approve

p ermits or enforcement orders and the heads of executive agencies with similar

powers.

RESPONSE : DEQ is preparing a SIP submittal to address this issue and will submit that revision in final form to EPA as expeditiously as practical. The proposal was updated to reflect this information.

2. SUBJECT: Emission limitations within infrastructure SIPs

COMMENTER: Sierra Club

TEXT: The commenters assert that a variety of requirements exist that mandate
the inclusion of emission limitations within infrastructure SIPs. The commenters also assert that these limitations must prohibit NAAQS violations in areas not designated nonattainment. The commenters note that such specific emission limitations are required by the CAA, EPA regulations, EPA interpretations, supreme court opinions, and appellate court opinions2 RESPONSE: DEQ does not agree with this assertion. Infrastructure SIPs must demonstrate that Virginia’s SIP contains all necessary authority to ensure that air quality within the Commonwealth will meet any new NAAQS in a timely manner. The proposed revision to Virginia’s SIP does just that.

While some SIP revisions do contain unit

- specific and facility

- specific emission limitations, these SIP revisions are not infrastructure SIPs. For example, the infrastructure SIP revisions for Virginia pertaining to the 1997 ozone NAAQS (approved by EPA at 76 FR 62635 and 77 FR 45523) do not contain unit specific emission limitations. However, the RACT SIP revision submitted September 2000 and approved by EPA on December 14, 2000 (65 FR 78100) contained facility

- specific limits on the ozone season emissions of nitrogen oxides ( NO X ). The SIP revisions approved by EPA on January 26, 2012 (77 FR 3928) contained limitations on the volatile organic compound (VOC) contents of various products. These SIP revisions containing enforceable limits supported the attainment plan for the Northern Virginia area, which was also a SIP revision and was submitted to EPA on June 12, 2007 and was proposed for approval most recently on February 7, 2013 (77 FR 3928). Whether or not a particular SIP revision must include facility

- specific or unit

- specific emission limitations depends on the purpose of the SIP revision as well as on the federal guidance and regulations dealing with that particular type of SIP revision. The inclusion of emission limitations may also depend on the nature of the pollutant being addressed as well as regional factors such as meteorology and demographics.

This infrastructure SIP proposal is consistent with previous infrastructure SIP submittals that have supported a number of different NAAQS. See the table
below. None of these infrastructure SIP submittals contained unit -specific emission limitations, and all have either been approved by EPA or proposed for approval by EPA.

DEQ
Submittal
Identifier Content Submittal Date and EPA Action

ND certification that VA has met or intends to meet requirements of § 110(a)(2)(D)(i) related to interstate pollution transport for the 1997 8

- hour
ozone and PM 2.5 NAAQS Nov ember 13, 2007

proposed approval of § 110(a)(2)(D)(i)(II) portion 08/01/12 (77 FR 45523)
BS demonstration that VA has met the infrastructure requirements of § 110(a)(2) for the 1997 8

- hour ozone NAAQS December 10, 2007

proposed approval 7/14/11 (76 FR

4 1444)

final approval 10/11/11 (76 FR 62635)3 DEQ
Submittal
Identifier Content Submittal Date and EPA Action

PM demonstration that VA has met the infrastructure requirements of § 110(a)(2) for the 1997 PM 2.5 NAAQS July 10, 2008

proposed approval 7/14/11 (76 FR 41444)

final approval 10/11/11 (76 FR 62635)

proposed approval of § 110(a)(2)(D)(i)(II) portion 08/01/12 (77 FR 45523)
GS demonstration that VA has met the infrastructure requirements of § 110(a)(2) for the 2008 Pb NAAQS March 9, 2012

proposed approval of § 110(a)(2)(D)(i)(II) portion 08/01/12 (77 FR 45523)

proposed approval of all but "element I" 06/11/13 (78 FR 34970)
HS demonstration that VA has met the infrastructure requirements of § 110(a)(2) for the 2008 O 3 NAAQS July 23, 2012

proposed approval 07/02/13 (78 FR 39651)
JS demonstration that VA has met the infrastructure requirements of § 110(a)(2) for the 2010 NO 2 NAAQS May 30, 2013

proposed approval 08/05/13 (78 FR 47264)

This proposed infrastructure SIP for the 2010 SO 2 NAAQS meets all of EPA’s current guidance regarding such submittals.

No changes were made to the proposal due to these comments.

3. SUBJECT: Enforceable one

- hour SO 2 emission limitations assuring attainment
and maintenance of the 2010 SO 2 NAAQS

COMMENTER: Sierra Club

TEXT: The commenters assert that the infrastructure SIP for the 2010 SO 2 NAAQS must contain limitations for Chesapeake Energy Center and Yorktown Power Station units that burn coal. They assert that AERMOD modeling is the appropriate tool for evaluating infrastructure SIPs and ensuring attainment and
maintenanc e of the NAAQS. They also assert that limitations based on one

- hour averaging periods must be included for these facilities in the infrastructure SIP.4 RESPONSE: DEQ disagrees with these assertions, in context of the proposed infrastructure SIP. As noted in the response to Comment #2, infrastructure SIPs describe Virginia’s authority to implement and comply with various NAAQS in a timely manner. These submittals need not include enforceable limitations at the unit and facility level. Doing so would be extremely premature for a number of

reasons.

EPA is still in the process of formulating their strategy in regard to implementation of this NAAQS. See, for example, the February 13, 2013 presentation entitled, “Next Steps on Designating Areas and Implementing the 1

- Hour SO 2 Standard

- EPA Webinar for State, Local, and Tribal Air Agencies” ( http://www.epa.gov/apti/broadcast.html#so2des2013 ). This presentation notes that the EPA intends to propose an implementation rule at the end of 2013, with the intent to finalize that rule by the end of 2014. Additionally, EPA’s technical analysis documents (TADs) supporting this NAAQS are still draft. The latest draft TADs were published in May of 2013, and these documents superseded the guidance EPA set forth in the March 24, 2011 memorandum on the subject. Without these final documents informing the process, the imposition of any limitation on specific units would be based on conjecture.

DEQ agr ees that air dispersion modeling is one of the available tools for evaluating the short

- term impacts of large sources of SO 2 . However, DEQ also supports the use of ambient monitoring data in the case of a NAAQS assessment for existing sources. DEQ appreciates the efforts made by the commenters to develop modeling results for Virginia facilities, and this information will be considered along with all other data and analyses that any interested parties may present to DEQ regarding final requirements for fac ilities or units, area designations, and source specific impacts as the technical development process moves forward. DEQ will perform this process in accordance with EPA’s timelines and with guidelines set forth in their final TAD and final implementation rulemaking for the 2010 SO 2 NAAQS.

At this time, DEQ believes determining or requiring any type of unit -specific limitations, whether the limitations be based one

- hour averaging times or other metrics, is premature, given the uncertainty regarding what information the final guidance and regulation will contain.

No changes were made to the proposal due to these comments.

4. SUBJECT: Causing or contributing to nonattainment or interference with
maintenance of the 2010 SO 2 NAAQS in another state.

COMMEN TER: Sierra Club5 TEXT: The commenters assert that the infrastructure SIP for the 2010 SO 2 NAAQS must contain limitations for Chesapeake Energy Center to ensure that emissions from the facility do not cause or contribute to a violation of the 2010
SO 2 NA AQS in North Carolina. The commenters also assert that since the Sierra Club’s modeling exercise precisely identifies the contribution to nonattainment by this facility, the Homer City decision does not apply.

RESPONSE: DEQ does not agree with these ass ertions. EPA is still in the process of establishing how to address interstate transport. Until that time, Virginia cannot address the good neighbor provisions of the CAA in § 110(a)(2)(D). While DEQ appreciates the Sierra Club’s efforts to provide
mode ling information concerning the impact of any Virginia facility upon another state, this information cannot stand in place of an EPA determination that was made in accordance with final TAD and final rulemaking.

No changes were made to the proposal due to these comments.

TEMPLATES \ SIP

- PLAN \ PLN03
SIP \ ASSESSMENT \KS- SIP

- 3.DOC