Douglas A. Ducey Governor February 19 , 2015
Mr. Jared Blumenfeld Regional Administrator 

### ARI ZONA DEPA RTMENT OF 

### EN V I RONMEN T AL QU A LITY

U.S

. Environmental Protection Agency Region 9 75 Hawthorne Street San Francisco , California 941 05 

## ::h'f t.d
- Dear Mr)3-k1 m; nfeld : Henry R. Darwin Director

On May 13,2014, the Arizona Department ofEnvironmental Quality (ADEQ) submitted the "Arizona State Implementat ion Plan Revision to the Arizona Regional Haze Plan for Arizona Electric Power Cooperative, Incorporated , Apache Generat ing Station" (Apache SIP Revi sion) to the U.S. Environmental Protection Agency (EPA). The Apache SIP Revision includes an addendum to Apache's Operating Permit (Significant Revision No. 59195 to Air Quality Control Permit No. 55412) , which incorporates by reference certain s tate regulations that establish an affirmative defense for malfunctions (R-1 8-2-1 01, paragraph 65; R 18-2-310, sections (A), (B), (D) and (E); and R 18-2

-310

.0 I). These provisions were previously approved by EPA into the Arizona SIP (40 CFR 52

. 120(c) (97))

. However, in a Supplemental Notice of Proposed RuJemaking published on September 17 , 2014 (79 FR 55920), EPA proposed to find R18

-2-310(B) and R18-2-310(C) substantially inadequate to meet Clean Air Act (CAA) requirements and to issue a S IP call with respect to these provisions. Based on subsequent conversations between EPA and ADEQ staff , ADEQ understands that EPA believes that, in light of the proposed SIP call, the affrrmative defense pr ovision of the Apache SIP Revision is not approvable. ADEQ is disappointed in EPA's belief that the affirmative defense provision of the Apache SIP Revision is not approvable. EPA's September 17,2014 proposal remains simply that, a proposal. EPA sought and received comments on its proposal, including a November 4, 2014 letter from ADEQ. A DEQ is unaware ofEPA 's response to its comments, a final rulemaking that would find Arizona's rules to be substanti ally inadequa te, or a S IP call with respect to the provisions in question. Yet, EPA appears to treat this proposed action as though it were final, essentially prejudging the outcome of the proposal without following appropriate administrative procedures by responding to the comments that had been submitted and then finalizing its rule. ADEQ contends that E PA has other options that will allow it to move forward with the full approval of the Apache SIP Revi sion before a final decision is made on the September 17 , 2014 proposal. One option could be to fully approve the Apache SIP Revision now and reconsider the

Main Office 1110 West Washington Street • Phoenix , AZ 85007 (602) 771
- 2300 Southe rn Regiona l Office 400 West Congress Street • Suite 433 <Tucs on, AZ 85701 (520) 628-6733 www.azdeq.gov printed on recycled paperPage 2 of2

approval of the malfunction provision should EPA make a future final decision regarding their adequacy. Another option would be to fully approve the Apache SIP Revision and include these newly approved requirements in any future SIP call that EPA may deem necessary. Both options are examples of how EPA could meet the goal of approving the Apache SIP Revision and maintain its authority to require a future SIP revision without prejudging the outcome of a completely separate, and as yet, incomplete proposed rulemaking. Notwithstanding these objections , ADEQ, in consultation with the Arizona Electric Power Cooperative, has decided that it is in the State's best interest to avoid unnecessary delay in EPA action on the remainder of the Apache SIP Revision. As a result, ADEQ requests that EPA not act on the provisions ofthe Apache SIP Revision regarding the affirmative defense for malfunctions in section V

. D of Significant Revision No. 59195 to Air Quality Control Permit No. 55412 at this time. It is our understanding that, should R 18-2-31 O(B) and R18-2-31 O(C) be found to be adequate in EPA's final rulemaking, that EPA will take up and act upon the incorporation of those provisions into the AEPCO SIP revision promptly thereafter. If you have any questions about this matter, please contact me at (602) 771-2288. Sincerely,