STATE 

### OF ARKANSAS 

### MIKE BEEBE GOVERNOR December 17,2007
Richard Greene, Regional Administrator United States EPA, Region VI 1445 Ross Avenue, Suite 1200 Dallas,TX 75202-2733

Dear Mr. Greene:
The Arkansas Department of Environmental Quality submits this document in response to the requirements of Sections 110(a)(l) and (2) of the Clean Air Act (CAA). This document is a revision to the Arkansas State Implementation Plan (SIP) to address interstate transport of air pollution under CAA Section 1 1 O(a)(2)(D)(i). The information contained in this document demonstrates that Arkansas sources do not significantly contribute to the interstate transport of pollutants that impact nonattainment in, or interfere with maintenance by, any other state with respect to the 8-hour ozone and National Ambient Air Quality Standards (NAAQS) and demonstrates that Arkansas meets the required prevention of significant deterioration of air quality and protection of visibility provisions of the law.

In July of 1997, the U.S. Environmental Protection Agency (EPA) issued the NAAQS for 8-hour ozone and particulate matter less than 2.5 micrometers in diameter (PM2.5). Section llO(a)(l) of the CAA requires states to submit SIPSwithin three years following the promulgation of new or revised standards. Litigation delayed implementation of the standards and created uncertainty over how states were to proceed. On March 10, 2005, EPA entered into a Consent Decree with Earth Justice to address the interstate transport of these pollutants under CAA Section 1 1 O(a)(2)(D)(i). On April 25, 2005, EPA published "Finding of Failure to Submit Section 110 State Implementation Plans for Interstate Transport for the National Ambient Air Quality Standards for 8-Hour Ozone and 70 FR 21 147. The April 25, 2005, finding started a 24-month clock for EPA to either issue a final Federal Implementation Plan (FIP) to address the requirements of Section llO(a)(2)(D)(i) or to approve a SIP that addresses these requirements.

.... Each state must submit a SIP that contains adequate provisions "prohibiting any source or other type ofemissions activity within the State from emitting any air pollutant inamounts which will: 1 I>< 

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### contribute significantly to nonattainment in, or interfere with maintenance by, any other State with respect to any national primary or secondary air-quality standard, or (11) 

### interfere with measures required to be included in the applicable implementation plan for any other State toprevent significant deterioration or toprotect visibility. " EPA published its "SIP Guidance on Section 1lO(a)(2)(D)(i) Findings of Failure to Submit" on August 11, 2006. The guidance outlines four points that states must address in their 1lO(a)(2)(D)(i) SIPS 

### 'Iprohibitingany source or other type ofemissions activity within ihe State from 

### emitting any air pollutant in amounts which will -


### I. Contribute significantly to nonattainment ofthe NAAQS for areas in another State;
2. Interfere with maintenance of the NAAQS by any other State;



### 3. Interfere with measures required to meet implementation plan for any other State related to Prevention of Significant Deterioration (PSD);



### 4. Interfere with measures required to meet the implementation plan for any other State related to Regional Haze and Visibility.
This letter addresses each of these four points. Points one and two can be addressed using the Clean Air Interstate Rule (CAIR) and associated air-quality modeling that EPA performed. CAIR will control the interstate transport ofNOxand SO2emitted by fossilfuel fired Electric Generating Units (EGUs) by creating an interstate cap and trade program. CAIR has three programs: Annual NO,, Ozone Season NO,and a year-round SO2program. Ofthe three programs in CAIR, EPA demonstrated through modeling that Arkansas would only participate inthe Ozone SeasonNOxprogram. EPA published "Guidance for State Implementation Plan (SIP) Submissionsto Meet Current Outstanding Obligations Under Section 1lO(a)(2)(D)(i) for the 8-Hour Ozone and PM2.5 National Ambient Air Quality Standards" on August 15,2006. That guidance ,states that "States within the CAIR region need not submit a SIP revision to satisfy CAIR."
To determine which States impact nonattainment in other States, EPA performed ozone-contribution modeling using both source-apportionment modeling and zero-out 2modeling, using the CAM-x model techniques for 31 States in the East (including Arkansas) and in the District of Columbia. (See Final CAIR Preamble at, 70 FR 25249, May 12, 2005). EPA determined that Arkansas contributes to ground-level ozone formation in Texas. Arkansas submitted a SIP to the EPA to address the transport of oxides of nitrogen (NO,) from Arkansas sources in the form of a CAIR SIP. EPA published their approval ofthe SIPon September 26,2007, and it was final on November 26,2007.

In addition to the ozone modeling, 37 States were modeled for potential inclusion inthe final CAIR by EPA to addressPM2.5. Fourteen ofthese States, including Arkansas,
were not included in the CAIR, because they did not contribute at least 0.2 uglm3 to downwind nonattainment. (See Final CAIR Preamble at, 70 FR 25246, May 12, 2005). Since it was found that Arkansas does not significantly contribute to downwind PM2.5 nonattainment areas, there is no requirement that Arkansas submit regulation changes and a SIP to address this.
Each SIP must include a preconstruction-review program for major sources to satisfy the requirements of section 1 1 O(a)(2)(D)(i) of the CAA. For nonattainment areas, this is the Nonattainment New Source Review (NNSR) program, and in attainment areas this is the PSD program. The PSD requirements in Item 3 can be, and have been, addressed in an existing Arkansas SIP and related regulatory language that has been approved by EPA. The August 2006 guidance states that "[b]ecause all areas are currently subject to some form of preconstruction-permitting program for ozone and PM2,5, it isnot necessary, at thistime, for Statesto make a SIP submission containing rule changes or modeling demonstration to address section 1 lO(a)(2)(D)(i)(II)."
This SIP revision certifies that Arkansas has EPA-approved PSD and NNSR programs in place to prevent significant deterioration of air quality in Arkansas and neighboring States. Major sources in Arkansas are currently subject to PSD and NNSR permitting programs that implement the 8-hour ozone and PM2.5 standards. PSD regulatory language can be found in Chapter 9 of the Arkansas Pollution Control and Ecology Commission Regulation 19, Regulations of the Arkansas Plan of Implementation for Air Pollution Control. NNSR regulatory language can be found in Arkansas Pollution Control and Ecology Commission Regulation 31, Nonattainment New

,Source Review Requirements.
There was a deadline of June 15, 2007, for States to submit SIPSthat incorporate the requirements of the phase I1 ozone implementation rule into their PSD and NNSR programs. It was not necessary for Arkansas to make changes to the regulatory language 3to address these requirements, because EPA has not found the Arkansas PSD program to be deficient and all of the existing Arkansas NNSR program requirements address the requirements.

Arkansas has met the requirements for item four regarding the protection of visibility in section llO(a)(2)(D)(i). On October 15, 2007, the Arkansas Pollution Control and Ecology Commission adopted Chapter 15 of Regulation 19, which established regional-haze-program requirements. The regulation was effective on the date of adoption. At this time, it is not possible to assess whether there is any interference with measures in the applicable SIP for another State designed to protect visibility for the 8-hour ozone and PM25 NAAQS until Arkansas's regional haze SIP is submitted and approved by EPA.

The State of Arkansas hereby submits to the EPA that it has met the requirements for section 1lO(a)(2)(D)(i) ofthe CAA for the 8-hour ozone and PM2.~ NAAQS and does

, not significantly contribute to nonattainrnent or interfere with maintenance of the

NAAQS in other States.
I look forward to your prompt approval of this SIP submission. If you have any questions, please contact Mike Bates at (501) 682-0750 or bates@adeq.state.ar.us. Thank you for your attention to this matter.

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