Douglas A. Ducey 

Governor 

February 19, 2015 

Mr. Jared Blumenfeld 

Regional Administrator 

ARI ZONA DEPARTMENT 

OF 

ENVIRONMENTAL QUALITY 

U.S. Environmental Protection Agency 

Region 9 

75 Hawthorne Street 

San Francisco , California 941 05 

::h'ft.d- Dear Mr)3-k1m;nfeld: 

Henry R. Darwin 

Director 

On May 13,2014, the Arizona Department ofEnvironmental Quality (ADEQ) submitted the 

"Arizona State Implementation Plan Revision to the Arizona Regional Haze Plan for Arizona 

Electric Power Cooperative, Incorporated, Apache Generating Station" (Apache SIP Revision) 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 state 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 SIP 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 provision 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. ADEQ is unaware ofEPA's response to its comments, a final rulemaking 

that would find Arizona's rules to be substantially inadequate, or a SIP 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 EPA has other options that will allow it to move forward with the full 

approval of the Apache SIP Revision 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 

Southern Regional Office 

400 West Congress Street • Suite 433 <Tucson, AZ 85701 

(520) 628-6733 

www.azdeq.gov 

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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 of the 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,