### DEPT. OF ENVIRONMENTAL CONSERVATION

OFFICE OF THE COMMISSIONER

October 4, 2010

Mr. Dennis McLerran U.S. EPA, Region 10 Regional Administrator's Office, RA-140 1200 Sixth Avenue, Suite 900 Seattle, WA 98101

Dear Mr. McLerran:

EPA's recent “Action To Ensure Authority To Issue Permits Under the Prevention of Significant Deterioration (PSD) Program to Sources of Greenhouse Gas Emissions: Finding of Substantial Inadequacy and SIP Call” (Federal Register/Vol. 75, No. 170/Thursday

, September 2, 2010) includes Alaska on the list of states whose State Implementation Plans (SIPs) are substantially inadequate to meet Clean Air Act (CAA) requirements related to PSD requirements for GHG-emitting sources. EPA has requested that states submit information by October 4, 2010 on their plans for implementing the rule. The State of Alaska, Department of Environmental Conservation (ADEC) through this letter fulfills this request and provides the following information regarding the Division of Air Quality's plan for implementation of the GHG Tailoring Rule by January 2, 2011.

At the present time, ADEC’s regulations revision which includes the adoption by reference of the GHG Tailoring Rule have been adopted and are undergoing review by the Alaska Department of Law. Upon completion of the Department of Law review, the regulations will be filed by the Lieutenant Governor and will take effect 30 days later. The applicable subsection of Title 18 Chapter 50 of the Alaska Administrative Code being revised is 18 AAC 50.040(h), wherein 40 C.F.R. 51.166 and 40 C.F.R. 52.21 - 40 C.F.R. 52.22 as revised through the federal register notice of June 3, 2010, are being adopted by reference. This incorporation will allow the state to comply with the federal rules regarding the permitting of greenhouse gas

emissions.

At this time, ADEC anticipates that the state regulations will be in effect by January 2, 2011, which will allow ADEC to implement the federal rule. Given the short timeframes, ADEC is formally requesting that EPA initiate the process to approve Alaska’s SIP revisions based on the state regulations now undergoing legal review. Our hope is that the EPA approval process can proceed in parallel with the final steps of the state rulemaking process. We will provide the state regulations as soon as possible. We anticipate being able to submit our final SIP revisions to EPA SEAN PARNELL, GOVERNOR

410 Willoughby Avenue, Suite 303

Post Office Box 111800 Juneau, Alaska 99811-1800

Phone: 907-465-5066

Fax: 907-465-5070

www.dec.state.ak.usDennis McLerran 2 October 4, 2010

G:\COMM\WP\2010\10.217 CO to EPA re GHG SIP 100410.docx Region 10 before December 22, 2010. Upon submittal, ADEC asks that Alaska be dropped from the SIP call list.

ADEC requests that EPA Region 10 keep us informed of its progress in taking action on Alaska’s SIP revision. If it appears that timing will not allow for full EPA approval of Alaska’s revised program prior to the January 2, 2011 deadline, we ask that you notify us so we can collectively determine what alternatives are available to avoid any restrictions to issuing approvable permits to Alaskan facilities.

Your staff may contact Alice Edwards at (907) 465-5109 or John Kuterbach at (907) 465-5103 for additional information, if necessary. As always, I would be pleased to discuss any of this with you.

Sincerely,

Larry Hartig

Commissioner

cc: EPA Docket ID No. EPA-HQ-OAR-2010-0107 Rick Albright, Director, Office of Air Waste and Toxics, EPA Dave Bray, EPA Region 10 Alice Edwards, Acting Director, Division of Air Quality, DEC John Kuterbach, Air Permits Program Manager, Division of Air Quality, DEC