STATE OF MICHIGAN
DEPARTMENT OF ENVIRONMENTAL QUALITY

LANSING

# DE~

RICK SNYDER

GOVERNOR


### August 9, 2013

Dr. Susan Hedman, Regional Administrator United States Environmental Protection Agency Region 5 77 West Jackson Boulevard (R-19J) Chicago, Illinois 60604-3590

Dear Dr. Hedman: DAN WYANT
DIRECTOR



### SUBJECT: Michigan State Implementation Plan (SIP) Submittal for Revisions to Part 18 Prevention of Significant Deterioration (PSD) ofAir Quality Rules

Pursuant to Section 110 ofthe federal Clean Air Act, the Michigan Department of Environmental Quality (MDEQ) is submitting the promulgated revisions to "Part 18. Prevention of Significant Deterioration ofAir Quality" rules for United States Environmental Protection Agency (USEPA) review and approval for inclusion in the Michigan SIP.

Revisions have been made to the following Michigan Air Pollution Control Rules promulgated under Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended: R 336.2801 Definitions, R 336.2803 Ambient air increments, R 336.2809 Exemptions, and R 336.2816 Sources impacting federal class I areas; additional requirements.

The MDEQ is submitting revisions toR 336.2801, R 336.2803, and R 336.2816 for inclusion in the Michigan SIP. These revisions are designed to satisfy federal requirements for a PSD program.

R 336.2809 addresses Significant Monitoring Concentrations (SMC) established under 40 CFR 51.166 (i)(5)(i)(c) and 40 CFR 52.21(i)(5)(i)(c), which were vacated by the Washington, DC, Circuit Court on January 22, 2013, after changes to Michigan's Part 18 rules were promulgated. Because ofthis, the MDEQ is also submitting R 336.2809 for inclusion in the Michigan SIP with the exception ofthe language in R 336.2809(5)(a)(iii) that refers to fine particulates (PM2

.5) 

### as it was added to address SMC. We request that this language in R 336.2809 be ignored.

The revisions to these rules were adopted to comply with revisions to federal requirements 40 CFR 51.100, 51.165, and 51.166 for new definitions and provisions pertaining to PM2

.5

. 

### These rule revisions should also be considered in the USEPA's review of Michigan's infrastructure authorities under Section 110(a)(1) and (2) of the Clean Air Act for the 2006 PM2

.5 

### and 2008 Lead National Ambient Air Quality Standards and supplement Michigan's infrastructure submittals ofAugust 24, 2011, and April 3, 2012.

CONSTITUTION HALL • 525Vv'EST ALLEGAN STREET • P.O. BOX 30473 • LANSING, MICHIGAN 48909-7973 www.mlchJgan.gov/deq • (800) 662-9278

### Dr. Susan Hedman Page 2 August 9, 2013

An opportunity for public comment and hearing was provided, both for the promulgation ofthese rule revisions and for their submittal for approval to the Michigan SIP. The submittal consists of one hard copy ofthe required documentation. An electronic version ofthe submittal in PDF format, identical to the hard copy, has been sent to Mr. Andy Chang at the USEPA, Region 5 office. To assist with your review ofthe SIP submission, a list of supporting documents is attached.

We ask that the USEPA approve this revision to the Michigan SIP. Questions on the submittal may be directed to Mr. G. Vinson Hellwig, Chief, Air Quality Division, at 517-373-7069; hellwigv@michigan.gov; or MDEQ, P.O. Box 30260, Lansing, Michigan 48909-7760; oryou may contact me.

Attachments Dan Wyant Director 517-373-791

cc/att: Mr. Andy Chang, USEPA, Region 5 Mr. Jim Sygo, Deputy Director, MDEQ Mr. G. Vinson Hellwig, MDEQ Ms. Mary Maupin, MDEQ

# DE**~** 

# ii.i.

DAN WYANT DIRECTOR



## REVISION TO STATE OF MICHIGAN STATE IMPLEMENTATION PLAN ·

FOR

PART 18. PREVENTION OF SIGNIFICANT DETERIORATION (PSD) OF AIR QUALITY

R 336.2801, R 336.2803, R 336.2809 and R 336.2816

August9,2013

Preparedby:

Michigan Department ofEnvironmental Qualily Air QualilyDivision

P. 0. Box 30260 Lansing, Ml 48909-7760 INTERNET: http:llwww.michiqan.gov/deqairTABLE OF CONTENTS

COMPLETENESS REVIEW

Completeness Review Checklist

ATTACHMENTS

Attachment A

Attachment 8

Attachment C

Attachment D

Attachment E

Attachment F

Attachment G Final form ofadopted rule(s), Part 18, effective November 30, 2012.

Strikethrough/bold version of the rule changes as submitted for approval.

A letter and Certificate ofAdoption dated October 19, 2012, signed by MDEQ Director Wyant to the Michigan Department of Licensing and Regulatory Affairs, Office of Regulatory Reinvention (ORR).

Section 5512 of Part 55, Air Pollution Control, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended, gives the MDEQ the authority to promulgate the revised rules.

Michigan Department of State's Notice of Filing ofAdministrative Rules for Part 18 dated November 30, 2012.

Notice of Public Hearing held on August 9, 2012. Newspaper affidavits dated July 9, 2012. Michigan Registernotice dated August 1, 2012.

Opening statement for August 9, 2012, public hearing. Staff Report dated July 31, 2012. USEPA comments dated July 31, 2012, and Michigan's response.
Agency Report dated September 10, 2012.COMPLETENESS REVIEW

Administrative Materials

1. Formal letter ofsubmittal from the Governor or designee requesting EPA approval ofthe revision.

A cover letter from Mr. Dan Wyant, Director, Michigan Department of Environmental Quality (MDEQ), to Dr. Susan Hedman, Regional Administrator, United States Environmental Protection Agency (USEPA), Region 5, requesting approval of Part 18 SIP revision.

A letter dated March 24, 2011, from Governor Rick Snyder, State of Michigan, to the USEPA Region 5, delegating authority to the MDEQ Director to make any submittal, request, or application under the federal Clean Air Act. A copy of the letter is available upon request.

2. Evidence that the state has adopted the revision in the state code or body of regulations; or Issued the permit, order, or consent agreement (hereafter "document") in final form. That evidence should include the date ofadoption or final issuance as well as the effective date ofthe revision ifdifferentfrom the adoption/issuance date.

The final form of the adopted rule in Part 18, that went into effect on November 30, 2012, is included in Attachment

### A

A letter and Certificate ofAdoption dated October 19, 2012, signed by MDEQ Director Wyant to the Michigan Department of Licensing and Regulatory Affairs, Office of Regulatory Reinvention (ORR), are included in Attachment B.

3. Evidence that the state has the necessary legal authority under state law to adopt and implement the revision.

Section 5512 of Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended, gives the MDEQ the authority to promulgate the revised rules. A copy is included in Attachment C.

4. A copy ofthe actual reg1,1lation or document submitted for approval and incorporation by reference into the SIP, including Indication ofthe changes made to the existing approved SIP, where applicable. The submltli!l should be a copy ofthe official state regulation/document signed, stamped, and dated by the appropriate state official indicating that It is fully enforceable by the state. The effective date ofthe regulation/document should, whenever possible, be Indicated in the document Itself.

The final form of the adopted rules, Part 18, with the effective date of November 30, 2012, is included in Attachment A The strikethrough/bold version of the rule changes, as submitted for ORR approval, is also included in Attachment A

5. Evidence that the state followed all ofthe requirements of its administrative procedures act (or equivalent) in conducting and completing the adoption/issuance ofthe revision.

The Michigan Department of State's Notice of Filing ofAdministrative Rules for Part 18 dated November 30, 2012, is included in Attachment D.6. Evidence that public notice was given ofthe proposed change consistent with procedures approved by EPA, including date of publication of such notice.

The affidavits of publication from three newspapers in the state of Michigan, in which the notice of public hearing was published on July 9, 2012, and the notice that was published in the Michigan Registeron August 1, 2012, are included in Attachment E.

7. Certification that public hearings were held In accordance with the information provided in the public notice and the state's administrative procedures act (or equivalent), ifapplicable.

The opening statement for the Part 18 public hearing includes information on the notice of public hearing and instructions on how the hearing was to be conducted. The opening statement and

# a staff report are included in Attachment F.

8. Compilation of public comments and state's response thereto.

No public comments were received by the MDEQ. The USEPA comments and Michigan's response are included in Attachment F.

Technical Support

1. Justification of rules revisions

The "Purpose for the proposed rules and background," Item 2, and "Summary of proposed rules," Item 3, of the Agency Report provide the purpose and justification ofthe proposed rules, which is included in Attachment G.

# ATTACHMENT A

### MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

AIR QUALITY DIVISION

PART 18. PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY

Filed with the Secretary ofState on November 30, 20 12

These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, 45a(6), or 48 of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary ofState.

(By authority conferred on the director ofenvironmental quality by Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, MCL 324.550I to 324.5542)

R 336.2801, R 336.2803, R 336.2809 and R 336.2816 ofthe Michigan Administrative Code

are amended to read as follows:

R 336.280I Definitions.

Rule 180I. The following definitions apply to terms used in this pa1t. Ifa term defined in this part is also defined elsewhere in the rules, then the definition contained here applies for this part only.

(a) "Actual emissions" means the actual rate ofemissions ofa regulated new source review pollutant Jiom an emissions unit, as determined under R 336.110!(b), except that this definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a plantwide applicability limit under R 336.2823. Instead, the
terms "projected actual emissions" and "baseline actual emissions" shall apply for those purposes.

(b) "Baseline actual emissions" means the rate ofemissions, in tons per year, ofa regulated

new source review pollutant, as determined by the following:

(i) 

### For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-year period immediately preceding when the owner or operator begins actual construction ofthe project. The department shall allow the use ofa different time period upon a determination that it is

more representative ofnormal source operation. All ofthefollowing provisions apply:

(A) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with stmtups, shutdowns, and malfimctions.

(B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period.

(C) For a regulated new source review pollutant, ifa project involves multiple emissions units, then only I consecutive 24-month period shall be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period may be used for each regulated new source review pollutant.(D) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount ifrequired by paragraph (i)(B) ofthis subdivision.

(ii) For an existing emissions unit, other than an electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive 24-month period selected by the

owner or operator within the 10-year period immediately preceding either the date the owner

or operator begins actual construction of the project, or the date a complete permit application is received by the department for a permit required by R 336.1201, whichever is earlier, except that the 10-year period shall not include any period earlier than November 15, 1990. All ofthe following provisions apply: (A) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions.

(B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period.

(C) The average rate shall be adjusted downward to exclude emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. However, if an emission limitation is part of a maximum achievable control technology standard that the United States environmental protection agency proposed or promulgated under 40 C.F.R. part 63, then the baseline actual emissions need only be adjusted ifthe state has taken credit for such emissions reductions in

an attainment demonstration or maintenance plan submitted to the U.S. environmental protection agency. The provisions of 40 C.F.R. part 63 are adopted by reference in R 336.2801a.



### (D) For a regulated new source review pollutant, ifa project involves multiple emissions units, then only 1 consecutive 24-month period shall be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period
may be used for each regulated new source review pollutant.

(E) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount ifrequired by subparagraphs (B) and (C) ofthis paragraph.

(iii) For a new emissions unit, the baseline actual emissions for purposes ofdetermining the emissions increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to emit.

(iv) For a plantwide applicability limit for a stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units under paragraph (i) of this subdivision, for other existing emissions units under paragraph (ii) ofthis subdivision, and for a new emissions unit under paragraph (iii) ofthis subdivision.

(c) "Baseline area" means all ofthe following: (i) Any intrastate area, and every part thereof, designated as attainment or unclassifiable under section 107(d)(1) (D) or (E) ofthe clean air act in which the major source or major modification establishing the minor source baseline date would construct or would have an annual average air quality impact equal to or greater than 1 microgram per cubic meter for sulfur dioxide, oxides ofnitrogen, orPM-10, or 0.3 microgram per cubic meter for PM 2.5 of the pollutant for which the tninor source baseline date is established.

### (ii) Area redesignations under section I07(d)(!) (D) or (E) ofthe clean air act shall not intersect or be smaller than the area of impact of any major stationary source or major modification which does either ofthe following:

(A) Establishes a minor source baseline date. (B) Is subject to PSD regulations or new source review for major sources in nonattainment

areas regulations.

(iii) Any baseline area established originally for the total suspended particulates increments shall remain in effect and shall apply for purposes ofdetermining the amount ofavailable PM-I0 increments, except that the baseline area shall not remain in effect ifthe depmiment rescinds the corresponding minor source baseline date under subdivision (bb)(iv) ofthis rule.

(d) "Baseline concentration" means the value derived using the following procedures: (i) The ambient concentration level that exists in the baseline area at the time of the applicable minor source baseline date. A baseline concentration is determined for each pollutant for which a minor source baseline date is established and shall include both ofthe following:

(A) The aetna! emissions representative of sources in existence on the applicable minor source baseline date.

(B) The allowable emissions of major stationary sources that cmmnenced construction before the major source baseline date, but were not in operation by the applicable minor source baseline date.

(ii) The following shall not be included in the baseline concentration and shall affect the applicable maximum allowable increase:

(A) Actual emissions from any major stationary source on which construction commenced after the major source baseline date.

(B) Actual emissions increases and decreases at any stationary source occurring after the minor source baseline date.

(e) "Begin actual construction" means, in general, initiation ofphysical on-site construction activities on an emissions unit which are ofa permanent nature. Such activities include, but

are not limited to, installation ofbuilding supports and foundations, laying ofunderground pipework, and construction of permanent storage structures. "A change in method of operation" refers to those on-site activities, other than preparatory activities, which mark the initiation ofthe change.

(f) 

### "Best available control technology" or "BACT" means an emissions limitation, including a visible emissions standard, based on the maximum degree ofreduction for each regulated new source review pollutant, which would be emitted from any proposed major stationary source or major modification which the department

-- on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs

-- determines is achievable for such source or modification through application ofproduction processes or available methods, systems, and techniques, including fuel cleaning or treatment

or innovative fuel combination techniques for control ofthe pollutant. Application ofbest available control technology shall not result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 C.F.R. parts 60 and 61, adopted by reference in R 336.2801a. If the department determines that technological or economic limitations on the application of measurement methodology to a pa11icular emissions unit would make the imposition ofan emissions standard infeasible, then a design, equipment, work practice, operational standard or combination thereof, may be prescribed instead to satisfY the requirement for the application ofbest available control technology. The

### standard shall, to the degree possible, set forth the em1sswns reduction achievable by implementation ofthe design, equipment, work practice or operation, and shall provide for compliance by means which achieve equivalent results.

(g) "Building, structure, facility, or installation" means all of the pollutant-emitting activities which belong to the same industrial grouping, are located on l or more contiguous

or adjacent properties, and are under the control of the same person, or persons under

common control, except the activities ofany vessel. Pollutant-emitting activities are part of the same industrial grouping ifthey have the same 2-digit major group code associated with their primary activity. Major group codes and primary activities are described in the standard industrial classification manual, 1987. For assistance in converting north American industrial classification system codes to standard industrial classification codes see http://www.census.gov/epcd/naics02/.

(h) "Clean coal technology" means any technology, including technologies applied at the precombustion, combustion, or post-combustion stage, at a new or existing facility which will achieve significant reductions in air emissions of sulfhr dioxide or oxides of nitrogen associated with the utilization ofcoal in the generation ofelectricity, or process steam which

was not in widespread use as ofNovember 15, 1990.

(i) 

### "Clean coal technology demonstration project" means a project using funds appropriated under the heading "Department ofEnergy-- Clean Coal Technology," up to a total amount of $2,500,000,000 for commercial demonstration ofclean coal technology, or similar projects funded through appropriations for the United States Environmental Protection Agency. The federal contribution for a qualifying project shall be at least 20% ofthe total cost of the demonstration project.



### G) [Reserved] (k) "Cmmnence," as applied to construction of a major stationary source or major modification, means that the owner or operator has all necessary preconstruction approvals or permits and has done either ofthe following:

(i) Begun, or caused to begin, a continuous program ofactual on-site construction ofthe
source, to be completed within a reasonable time.

(ii) 

### Entered into binding agreements or contractual obligations, which cannot be canceled

or modified without substantial loss to the owner or operator, to unde11ake a program of actual construction ofthe source to be completed within a reasonable time.

(!) 

### "Complete" means, in reference to an application for a permit, that the application contains all the information necessary for processing the application. Designating an application complete for purposes of permit processing does not preclude the department from requesting or accepting additional information.

(m) "Construction" means any physical change or change in the method of operation, including fabrication, erection, installation, demolition, or modification ofan emissions unit, that would result in a change in emissions.

(n) "Continuous emissions monitoring system" or "CEMS" means all ofthe equipment that may be required to meet the data acquisition and availability requirements ofthese rules, to sample, condition ifapplicable, analyze, and provide a record ofemissions on a continuous basis.

(o) "Continuous emissions rate monitoring system" or "CERMS" means the total equipment required for the determination and recording ofthe pollutant mass emissions rate in terms ofmass per unit oftime.

### (p) "Continuous parameter monitoring system" or "CPMS" means all ofthe equipment necessaty to meet the data acquisition and availability requirements ofthese rules, to monitor process and control device operational parameters (for example, control device secondaty voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide concentrations), and to record average operational parameter value or values

on a continuous basis.

(q) "Electric utility steam generating unit" means any steam electric generating unit that is constructed for supplying more than 1/3 ofits potential electric output capacity and more than 25 megawatt electrical output to any utility power distribution system for sale. Steam supplied to a steam distribution system for providing steam to a steam-electric generator that would produce electrical energy for sale is also considered in determining the electrical energy output capacity ofthe affected facility.

(r) "Emissions unit" means any patt of a stationary source that emits or would have the potential to emit any regulated new source review pollutant and includes an electric utility
steam generating unit. Both ofthe following are types ofemissions units:

(i) A new emissions unit is any emissions unit that is, or will be, newly constructed and that has existed for less than 2 years from the date the emissions unit first operated.

(ii) An existing emissions unit is any emissions unit that does not meet the definition ofa
new emissions unit. A replacement unit is an existing emissions unit and no creditable emission reductions shall be generated from shutting down the existing emissions unit that is replaced. A replacement unit shall meet all ofthe following criteria:

(A) The emissions unit is a reconstructed unit ifthe replacement of components of an existing facility is to such an extent that the fixed capital cost ofthe new components exceeds 50% ofthe fixed capital cost that would be required to construct a comparable entirely new facility or the emissions unit completely takes the place ofan existing emissions unit.

(B) 

### The emissions unit is identical to or functionally equivalent to the replaced emissions unit.

(C) 

### The replacement does not alter the basic design parameters ofthe process unit. (D) 

### The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred fi·om operation by a permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it shall constitute a new emissions unit.

(s) "Federal land manager" means, with respect to any lands in the United States, the secretary ofthe department with authority over such lands.

(t) "High terrain" means an area having an elevation 900 feet or more above the base ofthe stack ofa source.

(u) "Hydrocarbon combustion flare" means either a flare used to comply with an applicable

new source performance standard or maximum achievable control technology standard, including uses of flares during startup, shutdown, or malfunction permitted under such a standard, or a flare that serves to control emissions of waste streams comprised predominately of hydrocarbons and containing not more than 230 milligrams per dry standard cubic meter hydrogen sulfide.

(v) "Indian reservation" means any federally recognized reservation established by treaty, agreement, executive order, or act ofcongress.

(w) "Indian governing body" means the governing body of any tribe, band, or group of Indians subject to thejurisdiction ofthe United States and recognized by the United States as possessing power ofself-government.(x) "Innovative control technology" means any system ofair pollution control that has not been adequately demonstrated in practice, but may have a substantial likelihood ofachieving greater continuous emissions reduction than any control system in current practice or of achieving at least comparable reductions at lower cost in terms ofenergy, economics, or nonair quality environmental impacts.

(y) "Low terrain" means any area other than high terrain. (z) "Lowest achievable emission rate" or "LAER", for any source, means the more stringentrate ofemissions based on R 336.1112(f).

(aa) "Majormodification" means any ofthe following: (i) Physical change in or change in the method ofoperation ofa major stationary source that would result in both ofthe following:

(A) A significant emissions increase ofa regulated new sourcereview pollutant. (B) A significant netemissions increase ofthat pollutant from the major stationary somce. (ii) A significant emissions increase from any emissions units ornet emissions increase at a major stationary source that is significant for volatile organic compounds or oxides of nitrogen shall be considered significant for ozone.

(iii) Physical change or change in the method of operation shall not include any of the following:

(A) Routine maintenance, repair, and replacement. (B) Use ofan alternative fuel or raw material by reason ofany order under section 2(a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 or by reason of a natural gas curtaihnent plan under the Federal PowerAct.

(C) Use ofan alternative fuel by reason ofan order or rule under section 125 ofthe clean air act.

(D) Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste.

(E) Use ofan alternative fuel or raw material by a stationary source which meets either of the following:

(1) The source was capable of accommodating before Jam1my 6, 197 5, unless such change wouldbeprohibitedunder any federally enforceablepermit condition which was established afterJanumy 6, 1975, underPSD regulations orR336.1201(1)(a).

(2) T11e source is approved to use under anypermit issued under PSD regulations or under R 336.1201(J)(a).

(F) An increase in the hours ofoperation or in the production rate, unless the change would be prohibited under any federally enforceable permit condition which was established after January 6, 1975, underPSD regulations orR 336.1201(l)(a).

(G) Any change in ownership at a stationary source. (H) [Reserved] (I) The installation, operation, cessation, or removal ofa temporary clean coal technology demonstration project, provided that the project complies with both ofthe following:

(1) The state implementationplan. (2) Other requirements necessary to attain andmaintain the national ambient air quality standards during theprojectandafter theproject is terminated.

(J) The installation or operation of a permanent clean coal technology demonstration project that constitutes repowering, provided that the project does not result in an increase in the potential to emit of any regulated pollutant emitted by the unit. This exemption shall apply on a pollutant-by-pollutant basis.(K) The reactivation ofa very clean coal-fired electric utility steam generating unit. (iv) This definition shall not apply with respect to a particular regulated new source review pollutant when the major stationary source is complying with the requirements for an actuals PAL for that pollutant. Instead, the definition ofPAL major modification in R 336.2823 shall apply.

(bb) All ofthe following apply to major and minor source baseline dates: (i) "Major source baseline date" means all ofthe following: (A) January 6, 1975, for particulate matter and sulfur dioxide. (B) February 8, I988, for nitrogen dioxide. (C) October 20,2010 for PM2.5 (ii) "Minor source baseline date" means the earliest date after the h·igger date on which a major stationary source or a major modification subject to PSD regulations submits a complete application under the relevant regulations. Thetrigger date is all ofthe following:

(A) August 7, I977, for particulate matter and sulfur dioxide. (B) February 8, 1988, for nitrogen dioxide. (C) October 20, 20 I I for PM 2.5 (iii) The baseline date is established for each pollutant for which increments or other equivalent measures have been established ifboth ofthe following occur:

(A) The area in which the proposed source or modification would constmct is designated as attainment or unclassifiable under section 107(d)(i) (D) or (E) of the clean air act for the pollutant onthe date ofits complete application under R 336.1201 and PSD regulations.

(B) Ifa major stationary source, the pollutant would be emitted in significant amounts, or, ifa major modification, there would be a significant net emissions increase ofthe pollutant.

(iv) Any minor source baseline date established originally for the total suspended particulates increments shall remain in effect and shall apply for determining the amount of available PM-I0 increments, except that the department may rescind any minor source baseline date where it can be shown, to the satisfaction ofthe depatiment, that the emissions increase from the major stationary source, or the net emissions increase from the major modification, responsible for triggering that date did not result in a significant amount of PM-10 emissions.

(cc) "Major stationary source" means any ofthe following: (i) Any ofthe following stationmy sources ofair pollutants which emit, or has the potential
to emit, I00 tons per year or more ofa regulated new source review pollutant:

(A) Fossil fuel-fu·ed steam electric plants ofmore than 250 million British thermal units per hour heat input.

(B) Coal cleaning plants with thermal dtyers. (C) Kraft pulp mills. (D) Portland cement plants. (E) Primary zinc smelters. 

### (F) Iron and steel mill plants. (G) Primary aluminum ore reduction plants. (H) Primary copper smelters. (I) Municipal incinerators capable ofcharging more than250 tons ofrefuse per day. (J) Hydrofluoric, sulfuric, and nitric acid plants. (K) Petroleum refineries. (L) Lime plants. (M) Phosphate rock processing plants.(N) Coke oven batteries. (0) Sulfur recovery plants. (P) Carbon black plants (furnace process). (Q) Primary lead smelters. (R) Fuel conversion plants. (S) Sintering plants. (T) Secondary metal production plants. (U) Chemical process plants. The term chemical process plant shall not include ethanol production facilities that produce ethanol by natural fermentation included in N01ih American Industrial Classification System codes 325193 or 312140.

(V) Fossil fuel boilers, or combinations thereof, totaling more than 250 million British thermal units per hour heat input.

(W) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels.

(X) Taconite ore processing plants. (Y) Glass fiber processing plants. (Z) Charcoal production plants. (ii) Any stationary source not listed in the previous subdivision which emits, or has the potential to emit, 250 tons per yearormore ofa regulated new source review pollutant.

(iii) Any physical change that would occur at a stationary source not otherwise qualifYing under subdivision (cc) of this subrule, as a major stationary source if the change would constitute a major stationary source by itself.

(iv) A major source that is major for volatile organic compounds or oxides ofnitrogen shall be considered major for ozone.

(v) The fugitive emissions ofa stationary source shall not be included in determining, for any ofthe purposes ofthis rule, whether it is a major stationary source, unless the source belongs to 1ofthe categories ofstationary sources listed is paragraph (i) ofthis subdivision.

(dd) "Necessary preconstruction approvals or permits" means a permit issued under R 336.1201(1)(a) that is required by R 336.280I toR 336.2819, R 336.2823, and R 336.2830 or R 336.1220.

(ee) "Net emissions increase" means all ofthe following: (i) For any regulated new source review pollutant emitted by a major stationary source, the
amount by which the sum ofthe following exceeds zero: ·

(A) The increase in emissions from a pmiicular physical change or change in the method of operation at a stationary source as calculated under R 336.2802(4).

(B) Any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases under this paragraph shall be determined as provided in the definition ofbaseline actual emissions, except that paragraphs (b)(i)(C) and (b)(ii)(D) ofthis rule shall not apply.

(ii) An increase or decrease in actual emissions is contemporaneous with the increase from the pmiicular change only ifit occurs between the following:

(A) The date 5 years before construction on the particular change commences. (B) The date that the increase from the particular change occurs. (iii) An increase or decrease in actual emissions is creditable only ifthe department has not relied on it in issuing a permit under R 336.1201(l)(a) orR 336.1214a, which permit is in effect when the increase in actual emissions from the particular change occurs.(iv) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, or oxides ofnitrogen that occurs before the applicable minor source baseline date is creditable only if it is required in calculating the amount ofmaximum allowable increases remaining available.

(v) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level.

(vi) A decrease in actual emissions is creditable only to the extent that it meets all ofthe following criteria:

(A) The old level ofactual emissions or the old level ofallowable emissions, whichever is lower, exceeds the new level ofactual emissions.

(B) It is enforceable as a practical matter at and after the time that actual constmction on the particular change begins.

(C) It has approximately the same qualitative significance for public health and welfare as that attributed to the increase fi·om the patiicular change.

(vii) An increase that results from a physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. A replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days.

(viii) The definition ofactual emissions in R 336.110I(b) shall not apply for determining creditable increases and decreases after a change, instead the definitions of the terms "projected actual emissions" and "baseline emissions" shall be used.

(ff) [Reserved] (gg) "Pollution prevention" means any activity that through process changes, product reformulation or redesign, or substitution of less polluting raw materials, eliminates or reduces the release ofair pollutants, including fugitive emissions, and other pollutants to the environment before recycling, treatment, or disposal. Pollution prevention does not mean recycling, other than certain "in-process recycling" practices, energy recovery, treatment, or disposal.



### (!ill) "Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. A physical or operational limitation on the capacity ofthe source to emit a pollutant, including air pollution control equipment and restrictions on hours ofoperation or on the type or amount ofmaterial combusted, stored, or processed, shall be treated as part ofits design ifthe limitation or the effect it would have on emissions is legally enforceable and enforceable as a practical matter by the state, local air pollution control agency, or United States environmental protection agency. Secondary emissions do not count in detetmining the potential to emitofa stationary source.

(ii) "Predictive emissions monitoring system" or "PEMS" means all of the equipment
necessary to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide concentrations), and calculate and record the mass emissions
rate (for example, pounds perhour) on a continuous basis.



### (jj) "Prevention of significant deterioration" or "PSD" program means the major source preconstruction permit program required by 40 C.F.R. §52.21, adopted by reference in R 336.280la, orR 336.2801 toR 336.2819, R 336.2823 and R 336.2830. A permit issued under this program is a major NSR permit.

(kk) "Project" means a physical change in, orchange in method ofoperation of, an existing major stationary source.

### (II) "Projected actual emissions" means all ofthe following: (i) The maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated new source review pollutant in any 1 ofthe 

### 5 years (12-month period) following the date the unit resumes regular operation after the project, or in any 1 of the 10 years following that date, ifthe project involves increasing the emissions unit's design capacity or its potential to emit that regulated new source review pollutant, and full utilization ofthe unit would result in a significant emissions increase, or a significant net emissions increase at the major stationary source.

(ii) In determining the projected actual emissions, before beginning actual construction, the

owner or operator ofthe major stationary source shall do all ofthe following:

(A) Consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected business activity and the company's highest projections of business activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the state implementation plan.

(B) Include fugitive emissions to the extent quantifiable and emissions associated with startups, shutdowns, and malfunctions.

(C) Exclude, in calculating any increase in emissions that results fi-om the particular project, that portion ofthe unit's emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions and that are also unrelated to the particular project, including any increased utilization due to product demand growth.

(iii) The owner or operator of a major stationary source may use the emissions unit's potential to emit, in tons per year, instead ofcalculating projected actual emissions.

(mm) "Reactivation ofa very clean coal-fired electric utility steam generating unit" means any physical change or change in the method of operation associated with the
commencement of commercial operations by a coal-fired utility unit after a period of discontinued operation where the unit meets all ofthe following criteria:

(i) The unit was not in operation for the 2-year period before the enactment ofthe clean air
act amendments of 1990, and the emissions from the unit continue to be carried in the department's emissions inventory at thetime ofenactment.

(ii) The unit was equipped before shutdown with a continuous system ofemissions control that achieves a removal efficiency for sulfur dioxide of not less than 85% and a removal efficiency for particulates ofnot less than 98%.

(iii) The unit was equipped with low-oxides of nitrogen burners before the time of
commencement ofoperations following reactivation.

(iv) The unit otherwise complies with the requirements ofthe clean air act. (nn) "Regulated new source review pollutant," for purposes ofthis rule, means all ofthe following:

(i) A pollutant for which a national ambient air quality standard has been promulgated and any constituents orprecursors for the pollutants identified by the United States environmental protection agency. For example, volatile organic compounds and oxides of nitrogen are precursors for ozone, and oxides ofnitrogen and sulfurdioxide are precursors for PM 2.5.

(ii) A pollutant that is subject to any standard promulgated under section 111 ofthe clean air act.

(iii) A class I or II 

### substance subject to a standard promulgated under or established by title VI ofthe clean air act.

### (iv) A pollutant that otherwise is subject to regulation under the clean air act; except that any or all hazardous air pollutants either listed in section 112 ofthe clean air act or added to the list under section 112(b)(2) of the clean air act, which have not been delisted under section 112(b)(3) ofthe clean air act, are not regulated new source review pollutants unless the listed hazardous air pollutant is also regulated as a constituent or precursor ofa general pollutant listed under section 108 ofthe clean air act.

(oo) "Repowering" means all ofthe following: (i) Replacement of an existing coal-fired boiler with I of the following clean coal technologies:

(A) Atmospheric or pressurized fluidized bed combustion. (B) Integrated gasification combined cycle. (C) 

### Magneto hydrodynamics. (D) Direct and indirect coal-fired**h~tbines.** 

### (E) Integrated gasification fuel cells. (F) 

### A derivative of I or more ofthese technologies, and any other technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance of technology in widespread commercial use as of November 15, 1990, as determined by the United States environmental protection agency, in consultation with the Secretary ofEnergy.

(ii) Repowering shall also include any oil and/or gas-fired unit which has been awarded clean coal technology demonstration funding as ofJanuary I, 1991, by the United States Department ofEnergy.

(iii) The department shall give expedited consideration to permit applications for any

source that satisfies the definition ofrepowering and is granted an extension under section 409 ofthe clean air act.

(pp) "Secondary emissions" means emissions which occur as a result ofthe construction or operation ofa major stationary source or majormodification, but do not come from the major stationary source or major modification itself. For this rule, secondary emissions shall be specific, well defmed, quantifiable, and impact the same general areas the stationary source modification which causes the secondary emissions. Secondary emissions include emissions from any offsite support facility which would not be constructed or increase its emissions except as a result ofthe construction or operation ofthe major stationary source or major modification. Secondary emissions do not include any emissions which come directly from a mobile source, such as emissions from the tailpipe ofa motor vehicle, fi·om a train, or fi·om a vessel.

(qq) "Significant" means: (i) In 

### reference to a net emissions increase or the potential ofa source to emit any ofthe following pollutants, a rate of emissions that would equal or exceed any ofthe following pollutant emission rates:

(A) Carbon monoxide: 100 tons per year. (B) Oxides ofnitrogen: 40 tons peryear. (C) 

### Sulfur dioxide: 40 tons per year. (D) Particulate matter: 25 tons per year ofparticulate matter emissions. (E) PM-10: 15 tons per year ofPM-10 emissions. (F) 

### PM 2.5: 10 tons per year of PM 2.5 emissions; 40 tons per year of sulfur dioxide emissions; 40 tons per year ofoxides ofnitrogen emissions.(G) Ozone: 40 tons per year ofvolatile organic compounds or oxides ofnitrogen. (H) Lead: 0.6 tons peryear. (I) Fluorides: 3 tons peryear. (J) Sulfuric acid mist: 7 tons per year. (K) Hydrogen sulfide: I0 tons per year. (L) Total reduced sulfur, including hydrogen sulfide: I0 tons per year. (M) Reduced sulfur compounds, including hydrogen sulfide: 10 tons peryear. (N) Municipal waste combustor organics, measured as total tetra- through octa-chlorinated dibenzo-p-dioxins and dibenzofurans: 3.2 x 10-6megagrams peryear or 3.5 x 10-6tons per year.

(0) Municipal waste combustor metals, measured as patticulate matter: 14 megagrams per year or 15 tons per year.

(P) Municipal waste combustor acid gases, measured as sulfur dioxide and hydrogen chloride: 36 megagrams per year or 40 tons per year.

(Q) Municipal solid waste landfill emissions, measured as nonmethane organic compounds: 45 megagrams per year or 50 tons per year.

(ii) In reference to a net emissions increase or the potential ofa source to emit a regulated

new sourcereview pollutant not listed in this definition, any emissions rate.

(iii) Any emissions rate or any net emissions increase associated with a major stationary

source or major modification, which would construct within I0 kilometers ofa class I area, and have an impact on such area equal to or greater than I microgram per cubic meter (24- hour average).

(rr) "Significantemissions increase" means, for a regulated new source review pollutant, an increase in emissions that is significant for that pollutant.

(ss) "Stationary source" means any building, structure, facility, or installation which emits

or may emit a regulated new sourcereview pollutant.

(tt) "Temporary clean coal technology demonstration project" means a clean coal technology demonstration project that is operated for a period of5 years or less, and which complies with the state implementation plan and other requirements necessary to attain and maintain the national ambient air quality standards during and after the project is terminated.

R 336.2803 Ambient air increments

Rule 1803. In areas designated as class I, II, or Ill, increases in pollutant concentration over the baseline concentration shall be limited to all ofthe following:

Table 182

Ambient Air Increments

Pollutant Maximum Allowable Increase (micrograms per cubic meter) CLASS I ·. Particulate matter:

PM-I0, annual arithmetic mean 4 PM-10, 24-hour maximum 8 PM 2.5, annual arithmetic mean I PM 2.5, 24-hour maximum 2Pollutant Maximum Allowable Increase (micrograms per cubic meter) CLASS I

. . Sulfur dioxide:

Annual arithmetic mean 2 24-hour maximum 5 3-hourmaximum 25 Nitrogen dioxide:

Annual arithmetic mean 2.5

CLASS II Particulate matter:

PM-10, annual arithmetic mean 17 PM-10, 24-hour maximum 30

PM 2.5, annual arithmetic mean 4 PM 2.5, 24-hour maximum 9
Sulfur dioxide:

Annual aritlnnetic mean 20 24-hour maximum 91 3-hourmaximum 512 Nitrogen dioxide:

Annual arithmetic mean 25

CLASS III Particulate matter:

PM-10, annual arithmetic mean 34 PM-10, 24-hour maximum 60 PM 2.5, annual arithmetic mean 8 PM 2.5, 24-hour maximum 18
Sulfur dioxide:

Annual arithmetic mean 40 24-hour maximum 182 3-hour maximum 700 Nitrogen dioxide:

Annual arithmetic mean 50

For any period other than an atmual period, the applicable maximum allowable increase may be exceeded during I period per year at any I location.

R 336.2809 Exemptions.

Rule 1809. (I) The requirements ofR 336.2810 toR 336.2818 do not apply to a particular major stationary source or major modification ifeither ofthe following occurs:

### (a) The major stationary source would be a nonprofit health or nonprofit educational institution or a major modification that would occur at such an institution.

(b) The source or modification would be a major stationary source or major modification only if fugitive emissions, to the extent quantifiable, are considered in calculating the potential to emit ofthe stationary source or modification and the source is not required to include fugitives in its potential to emit under R 336.2801(cc)(v).

(c) The source or modification is a portable stationary source which has previously received a permit under R 336.2810 toR336.2818, ifall ofthe following occur:

(i) The source proposes to relocate and emissions ofthe source at the new location would be temporary.

(ii) The emissions fi·om the source would not exceed its allowable emissions. (iii) The emissions from the source would not impact a class I area or an area where an applicable increment is known to be violated.

(iv) Reasonable notice is given to the department before the relocation identifying the proposed new location and the probable duration of operation at the new location. Notice shall be given to the department not less than 10 days in advance ofthe proposed relocation unless a different time duration is previously approved by the department.

(2) The requirements of R 336.2810 to R 336.2818 do not apply to a major stationary

source or major modification with respect to a particular pollutant ifthe owner or operator demonstrates that, as to that pollutant, the source or modification is subject to new source review for major sources in nonattainment areas regulations.

(3) The requirements of R 336.2811, R 336.2813, and R 336.2815 do not apply to a proposed major stationary source or major modification with respect to a particular pollutant, ifthe allowable emissions ofthat pollutant from a new source, or the net emissions increase ofthat pollutant from a modification, would be temporary and would not impact a class I

area or an area where an applicable increment is known to be violated.

(4) The requirements of R 336.2811, R 336.2813, and R 336.2815, as they relate to any maximum allowable increase for a class II area, do not apply to a modification ofa major stationary source that was in existence on March I, 1978, if the net increase in allowable emissions of each regulated new source review pollutant fi·om the modification after the application ofbest available control technology would be less than 50 tons per year.

(5) The department may exempt a proposed major stationary source or major modification from R 336.2813, with respect to monitoring for a particular pollutant, ifany ofthe following

occur:

(a) The emissions increase of the pollutant from a new stationary source or the net emissions increase ofthe pollutant from a modification would cause, in any area, air quality impacts less than the following amounts:

(i) Carbon monoxide-- 575 micrograms per cubic meter, 8-hour average. (ii) Nitrogen dioxide

-- 14 micrograms per cubic meter, annual average. (iii) Particulate matter

-- 10 micrograms per cubic meter ofPM-10, 24-hour average. 4 micrograms per cubic meter ofPM 2.5, 24-hour average.

(iv) Sulfur dioxide-- 13 micrograms per cubic meter, 24-hour average. (v) Ozone -There is no de minimis air quality level for ozone. However, any net increase of 100 tons per year or more ofvolatile organic compounds or oxides ofnitrogen subject to PSD would be required to perform an ambient impact analysis, including the gathering of ambient air quality data.

(vi) Lead

-- 0.1 micrograms per cubic meter, 3-month average.

### (vii) Fluorides

-- 0.25 micrograms per cubic meter, 24-hour average. (viii) Total reduced sulfur-- I0 micrograms per cubic meter, !-houraverage. (ix) Hydrogen sulfide

-- 0.2 micrograms per cubic meter, !-houraverage. (x) Reduced sulfur compounds

-- 10 micrograms per cubic meter, !-hour average. (b) The concentrations ofthe pollutant in the area that the source or modification would affect are less than the concentrations listed in subdivision (a) ofthis submle.

(c) The pollutant is not listed in subdivision (a) ofthis submle.

R 336.2816 Sources impacting federal class I areas; additional requirements.

Rule 1816. (I) The department shall transmitto the United States environmental protection agency a copy of each permit application relating to a major stationary source or major modification and provide notice to the United States environmental protection agency of every action related to the consideration ofthepermit.

(2) If an applicant submits a permit application to the department for a proposed major stationary source or major modification that affects a federal class I area, the applicant must submit to the department and the federal land manager charged with direct responsibility for management ofclass I lands a demonstration ofthe impact the emissions from the proposed

source or modification would have on the air quality related values ofclass I lands, including visibility. The depmtment shall be available to consult with and provide additional information to the federal land manager during the federal land manager's review of the demonstration submitted by the applicant, if necessary, to complete the review of the demonstration.

(3) If the federal land manager's review of the applicant's demonstration results in a finding that the emissions from the proposed major source or major modification would have

an adverse impact on the air quality related values of class I lands, including visibility, notwithstanding that the change in air quality resulting from emissions fi·om a major source

or major modification would not cause or contribute to concentrations that would. exceed the maximum allowable increases for a class I area, and if the department concurs with such finding, then the department shall not approve the permit application.

(4) Ifthe department determines that the emissions from a proposed major source or major modification would cause or contribute to concentrations which would exceed the maximum allowable increases for a class I area, the department shall not approve a permit application unless the applicable requirements ofMichigan's state implementation plan are otherwise
met and I ofthe following occurs:

(a) The applicant submits a written certification that the applicant has demonstrated to the federal land manager that the emissions from the proposed major source or major modification would have no adverse impact on the air quality related values ofclass I lands, including visibility, notwithstanding that the change in air quality resulting from emissions fi·om a major source or major modification would cause or contribute to concentrations that would exceed the maximum allowable increases for a class I area. The depa1tment may then, provided that applicable requirements are otherwise met, issue the permit with emission limitations to assure that emissions of sulfur dioxide, particulate matter, and oxides of nitrogen would not exceed the following maximum allowable increases over minor source baseline concentration for the pollutants:Table 183



### Maximum allowable increases over minor source baseline concentrations

Pollutant Maximum Allowable Increase (micrograms per cubic meter) Particulate matter:

PM-10, annual arithmetic mean 17 PM-10, 24-hour maximum 30 PM 2.5, annual arithmetic mean 4 PM 2.5, 24-hour maximum 9 Sulfur dioxide:

Annual arithmetic mean 20 24-hour maximum 91 3-hour maximum 325 Nitrogen dioxide:

Annual arithmetic mean 25

(b) Ifthe department cannot approve the permit application under R 336.2816(4)(a) due to sulfur dioxide emissions resulting in increases greater than those specified in table 183 for periods of 24 hours or less, the applicant may obtain approval by providing a written certification that the applicant has demonstrated to the federal land manager that the emissions from the proposed major source or major modification would have no adverse impact on the air quality related values ofclass I lands, including visibility, and that both the governor and the federal land manager have granted a sulfur dioxide variance for the federal class I area on which variance the public has received notice and opportunity for public hearing.

(c) Ifthe depmiment cannot approve the permit application under R 336.2816(4)(a) due to sulfur dioxide emissions resulting in increases greater than those specified in table 183 for periods of24 hours or less, and the department cannot approve the permit application under R 336.2816(4)(b) because the federal land manager does not concur with the governor's issuance ofa sulfur dioxide variance that is otherwise consistentwith R 336.2816(4)(b), the applicant may obtain approval by providing a written certification that the applicant has demonstrated to the president that a sulfur dioxide variance is in the national interest and the president concurs with the issuance of the sulfur dioxide variance by the governor. The applicant shall transfer the recommendations ofthe governor and the federal land manager to the president in any case where the governor recommends a variance in which the federal land manager does not concur.

(5) The depa1iment will not issue a permit affecting a class I area in which a sulfur dioxide variance was granted under R 336.2816(4)(b) or (c), unless the permit includes emission limitations necessary to assure that emissions of sulfur dioxide fi·mn the major source or major modification would not, during any day on which the otherwise applicable maximum allowable increases are exceeded, cause or contribute to concentrations which would exceed the following maximum allowable increases over the baseline concentration and to assure that emissions would not cause or contribute to concentrations which exceed the otherwiseapplicable maximum allowable increases for periods ofexposure of24 hours or less for more than 18 days, not necessarily consecutive, during any annual period.

Table 184

Maximum Allowable Sulfur Dioxide Increments

Period OfExposure Maximum Allowable Increase (Micrograms PerCubic Meter) Terrain Areas Low High 24-hour maximum 36 62 3-hour maximum 130 221MICHIGAN DEPARTMENT OFENVIRONMENTAL QUALITY

AIR QUALITY DIVISION

PART 18. PREVENTION OF SIGNIFICANTDETERIORATION OFAIR QUALITY

Filed with the Secretary ofState on

Filed with the Secretary ofState on

These rules become effective immediately upon filing with the Secretary ofState unless adopted under sections 33, 44, 45a(6), or 48 of 1969 PA 306. Rules adopted underthese sections become effective 7 days after filing with the Secretary ofState.

(By authority conferred on the director ofenvironmental quality by Part 55, Air Pollution Control, ofthe Natural Resources and Envirorunental Protection Act, 1994 PA 451, as amended MCL 324.5501 to 324.5542)

R 336.2801, R 336.2803, R 336.2809 and R 336.2816 ofthe Michigan Administrative Code

are amended to read as follows:

R 336.280I Definitions.

Rule 180 

### I. The following definitions applyto terms used in this part. Ifa term defined in this part is also defined elsewhere in the rules, then the definition contained here applies for this part only.

(a) "Actual emissions" means the actual rate ofemissions ofa regulated new sourcereview pollutant fi·om an emissions unit, as determined under R 336.1101(b), except that this definition shall not apply for calculating whether a significant emissions increase has occurred, orfor establishing a plantwide applicability limit under R 336.2823. Instead, the
terms "projected actual emissions" and "baseline actual emissions" shall apply for those
purposes.

(b) "Baseline actual emissions" means the rate ofemissions, in tons per year, ofa regulated

new source review pollutant, as determined by the following:

(i) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-yearperiod immediately preceding when the owner or operator begins actual construction ofthe project. The department shall allow the use ofa different time period upon a determination that it is

more representative ofnormal source operation. All ofthe following provisions apply:

(A) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions.

(B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period.

(C) For a regulated new source review pollutant, ifa project involves multiple emissions units, then only I consecutive 24-month period shall be used to determine thebaseline actual emissions for the emissions units being changed. A different consecutive 24-monthperiod
may be used for each regulated new source review pollutant.

9/10/12

### 2

(D) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount ifrequired by paragraph (i)(B) ofthis subdivision.

(ii) For an existing emissions unit, other than an electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during anyconsecutive 24-month period selected bythe

owner oroperator within the I0-year period inunediately preceding either the date the owner

or operator begins actual construction ofthe project, or the date a complete permit application is received by the depmiment for a permitrequired by R 336.1201, whichever is earlier, except that the 1 0-year period shall not include any period earlier than November 15, 1990. All ofthe following provisions apply:

(A) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions.

(B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period.

(C) The average rate shall be adjusted downward to exclude emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. However, ifan emission limitation is part ofa maximum achievable control technology standard that the United States environmental protection agency proposed or promulgated under 40 C.F.R. pmi 63, then the baseline actual emissions need only be adjusted ifthe state has taken credit for such emissions reductions in

an attainment demonstration or maintenance plan submitted to the U.S. environmental protection agency. The provisions of40 C.F.R. part 63 are adopted by reference in R 336.2801a.

(D) Fora regulated new source review pollutant, ifa project involves multiple emissions units, then only 1consecutive 24-month period shall be used to determine thebaseline actual emissions for the emissions units being changed. A different consecutive 24-month period
may be used for each regulated new source review pollutant.

(E) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount ifrequired by subparagraphs (B) and (C) ofthis paragraph.

(iii) For a new emissions unit, the baseline actual emissions for purposes ofdetermining the emissions increase that will result from the initial constmction and operation ofsuch unit shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to emit.

(iv) For a plantwide applicability limit for a stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units under paragraph (i) of this subdivision, for other existing emissions units under paragraph (ii) ofthis subdivision, and for a new emissions unit under paragraph (iii) ofthis subdivision.

(c) "Baseline area" means all ofthe following: (i) Any intrastate area, and every pmi thereof, designated as attainment orunclassifiable under section 107(d)(1) (D) or (E) ofthe clean air act in which the major source ormajor modification establishing the minor source baseline date would constmct or would have an annual average air quality impact equal to orgreater than 1microgram per cubic meter for sulfur dioxide, oxides ofnitrogen, orPM-10, or 0.3 microgram per cubic meter for PM 2.5 

### taAAilal avemge) ofthe pollutant for which the minor source baseline date is established.

### 3

(ii) Area redesignations under section 107(d)(l) (D) or (E) ofthe clean air act shall not intersect or be smaller than the area ofimpact ofany major stationary source or major modification which does either ofthe following:

(A) Establishes a minor source baseline date. (B) Is subject to PSD regulations or new source review for major sources in nonattainment

areas regulations.

(iii) Any baseline area established originally for the total suspended pmiiculates increments shall remain in effect and shall apply for purposes ofdetermining the amount ofavailable PM-10 increments, except that the baseline area shall not remain in effect ifthe depmiment rescinds the corresponding minor source baseline date under subdivision (bb)(iv) ofthis rule.

(d) "Baseline concentration" means the value derived using the following procedures: (i) The ambient concentration level that exists in the baseline area at the time ofthe applicable minor source baseline date. A baseline concentration is determined foreach pollutant for which a minor source baseline date is established and shall include both ofthe following:

(A) The actual emissions representative ofsources in existence on the applicable minor

source baseline date.

(B) The allowable emissions ofmajor stationary sources that commenced construction before the major source baseline date, but were not in operation by the applicable minor

source baseline date.

(ii) The following shall not be included in the baseline concentration and shall affect the applicable maximum allowable increase:

(A) Actual emissions Ji'01n any major stationary source on which construction commenced after the major source baseline date.

(B) 

### Actual emissions increases and decreases at any stationary source occurring after the minor source baseline date.

(e) "Begin actual construction" means, in general, initiation ofphysical on-site construction activities on an emissions unit which m·e ofapermanent nature. Such activities include, but

are not limited to, installation ofbuilding supports and foundations, laying ofunderground pipework, and construction ofpermanent storage structures. "A change in method of operation" refers to those on-site activities, other than preparatory activities, which mark the initiation ofthe change.

(f) "Best available control technology" or "BACT" means an emissions limitation, including a visible emissions standard, based on the maximum degree ofreduction for each regulated new source review pollutant, which would be emitted from any proposed major stationary source ormajor modification which the department-- on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs-- determines is achievable for such source or modification through application ofproduction processes or available methods, systems, and techniques, including fuel cleaning or treatment

or innovative fuel combination techniques for control ofthepollutant. Application ofbest available control technology shall not result in emissions ofany pollutant which would exceed the emissions allowed by any applicable standard under 40 C.P.R. parts 60 and 61, adopted by reference in R 336.280la. Ifthe department determines that technological or economic limitations on the application ofmeasurement methodology to a pmiicular emissions unit would make the imposition ofan emissions standard infeasible, then a design, equipment, work practice, operational standard or combination thereof, may be prescribed instead to satisfY the requirement for the application ofbest available control technology. The

### 4

standard shall, to the degree possible, set forth the emissions reduction achievable by implementation ofthe design, equipment, work practice oroperation, and shall provide for compliance by means which achieve equivalent results.

(g) "Building, structure, facility, or installation" means all ofthe pollutant-emitting activities which belong to the same industrial grouping, are located on I or more contiguous

or adjacent propetties, and are under the control ofthe sameperson, orpersons under

common control, exceptthe activities ofany vessel. Pollutant-emitting activities are part of the same industrial grouping ifthey have the same 2-digit major group code associated with their primary activity. Major group codes and primary activities are described in the standard industrial classification manual, 1987. For assistance in converting north American industrial classification system codes to standard industrial classification codes see http://www.census.gov/epcd/naics02/.

(h) "Clean coal technology" means any technology, including technologies applied atthe precombustion, combustion, or post-combustion stage, at a new or existing facility which will achieve significantreductions in air emissions ofsulfhrdioxide or oxides ofnitrogen associated with the utilization ofcoal in the generation ofelectricity, orprocess steam which

was not in widespread use as ofNovember 15, 1990.

(i) "Clean coal technology demonstration project" means a project using funds appropriated under the heading "Department ofEnergy-- Clean Coal Technology," up to a total amount of $2,500,000,000 for commercial demonstration ofclean coal technology, or similar projects ftmded through appropriations for the United States Environmental Protection Agency. The federal contribution for a qualifYing project shall be at least 20% ofthe total cost ofthe demonstration project.



### G) [Reserved] (k) "Commence," as applied to construction ofa major stationary source or major modification, means that the owner oroperator has all necessary preconstruction approvals or permits and has done either ofthe following:

(i) Begun, or caused to begin, a continuous program ofactual on-site construction ofthe
source, to be completed within a reasonable time.

(ii) Entered into binding agreements or contractual obligations, which cannot be canceled

ormodified without substantial loss to the owner or operator, to undertake a program of actual construction ofthe source to be completed within a reasonable time.

(I) "Complete"means, in reference to an application for a permit, that the application contains all the information necessary for processing the application. Designating an application complete for purposes ofpennitprocessing does not preclude the department from requesting or accepting additional information.

(m) "Construction" means any physical change or change in the method ofoperation, including fabrication, erection, installation, demolition, or modification ofan emissions unit, that would result in a change in emissions.

(n) "Continuous emissions monitoring system" or "CEMS" means all ofthe equipment that
may berequired to meet the data acquisition and availability requirements ofthese rules, to sample, condition ifapplicable, analyze, and provide a record ofemissions on a continuous basis.

(o) "Continuous emissions rate monitoring system" or "CERMS"means the total equipmentrequired for the determination and recording ofthepollutant mass emissions rate in terms ofmass per unit oftime.

### 5

(p) "Continuous parameter monitoring system" or "CPMS" means all ofthe equipment necessary to meet the data acquisition and availability requirements ofthese rules, to monitor
process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide concentrations), and to record average operational parameter value or values

on a continuous basis.

( q) "Electric utility steam generating unit" means any steam electric generating unit that is constructed for supplying more than 1/3 ofits potential electric output capacity and more than 25 megawatt electrical output to any utility power distribution system for sale. Steam supplied to a steam distribution system for providing steam to a steam-electric generator that would produce electrical energy for sale is also considered in determining the electrical energy output capacity ofthe affected facility.

(r) "Emissions unit" means any part ofa stationary source that emits or would have the potential to emit any regulated new source review pollutant and includes an electric utility
steam generating unit. Both ofthe following are types ofemissions units:

(i) A new emissions unit is any emissions unit that is, orwill be, newly constructed and that has existed for less than 2 years from the date the emissions unit first operated.

(ii) An existing emissions unit is any emissions unit that does not meet the definition ofa

new emissions unit. A replacement unit is an existing emissions unit and no creditable emission reductions shall be generated from shutting down the existing emissions unit that is replaced. A replacement unit shall meet all ofthe following criteria:

(A) The emissions unit is a reconstructed unit ifthe replacement ofcomponents ofan existing facility is to such an extent that the fixed capital cost ofthenew components exceeds 50% ofthe fixed capital costthat would be required to construct a comparable entirely new facility or the emissions unit completely takes the place ofan existing emissions unit.

(B) The emissions unit is identical to orfunctionally equivalent to the replaced emissions unit.

(C) Thereplacement does not alter the basic design parameters ofthe process unit. (D) The replaced emissions unit is permanently removed fi·mn the major stationary source, otherwise permanently disabled, or permanently barred from operation by a permit that is enforceable as a practical matter. Ifthe replaced emissions unit is brought back into operation, it shall constitute a new emissions unit.

(s) "Federal land manager" means, with respect to any lands in the United States, the secretary ofthe department with authority over such lands.

(t) "High terrain" means an area having an elevation 900 feet ormore above the base ofthe stack ofa source.

(u) "Hydrocarbon combustion flare" means either a flare used to comply with an applicable

new source performance standard or maximum achievable control technology standard, including uses offlares during startup, shutdown, ormalfunction permitted under such a standard, ora flare that serves to control emissions ofwaste streams comprised predominately ofhydrocarbons and containing not more than 230 milligrams per dry standard cubic meterhydrogen sulfide.

(v) "Indian reservation" means any federally recognized reservation established by treaty, agreement, executive order, oract ofcongress.

(w) "Indian governing body" means the governing body ofany tribe, band, orgroup of Indians subject to thejurisdiction ofthe United States and recognized by the United States as possessing power ofself-government.

### 6

(x) "Innovative control technology" means any system ofair pollution control that has not been adequately demonstrated in practice, but may have a substantial likelihood ofachieving greater continuous emissions reduction than any control system in current practice orof achieving at least comparable reductions at lower cost in terms ofenergy, economics, or nonair quality environmental impacts.

(y) "Lowterrain" means any area otherthan high terrain. (z) "Lowest achievable emission rate" or "LAER", for any source, means the more stringent rate ofemissions based on R 336.1112(f).

(aa) "Majormodification" means any ofthe following: 

### (i) Physical change in orchange in the method ofoperation ofa major stationary source that would result in both ofthe following:

(A) A significant emissions increase ofa regulated new source review pollutant. (B) A significant net emissions increase ofthat pollutant fi·om the major stationary source. (ii) A significant emissions increase fi·om any emissions units ornet emissions increase at a major stationary.source that is significant for volatile organic compounds or oxides of nitrogen shall be considered significant for ozone.

(iii) Physical change or change in the method ofoperation shall not include any ofthe following:

(A) Routine maintenance, repair, and replacement. (B) Use ofan alternative fuel orraw material by reason ofany order under section 2(a) and (b) ofthe Energy Supply and Environmental Coordination Act of 1974 or by reason ofa natural gas curtailmentplan under the Federal Power Act.

(C) Use ofan alternative fuel byreason ofan order or rule under section 125 ofthe clean air act.

(D) Use ofan alternative 

### fuel at a steam generating unit to the extentthatthe**fi~el** is generated from municipal solid waste.

(E) Use Ofan alternative fuel orraw material by a stationary source which meets either of the following:

(1) The source was capable of accommodating beforeJanuary 6, 197 5, unless such change wouldbeprohibitedunder any federally enforceablepermitcondition which was established afterJanuwy 6, 1975, underPSD regulations orR336.1201(J)(a).

(2) T11e source is approvedto use underanypermit issuedunderPSD regulations or under R 336.1201(J)(a).

(F) An increase in the hours ofoperation or in the production rate, unless the change would be prohibited under any federally enforceable permit condition which was established after January 6, 1975, under PSD regulations orR 336.1201(l)(a).

(G) Any change in ownership at a stationary source. (H) [Reserved] (I) The installation, operation, cessation, or removal ofa temporaryclean coal technology demonstration project, provided that the project complies with both ofthe following:

(1) The state implementationplan. (2) Other requirements necessOIJ'IO attain andmaintain/he national ambient airquality standards during theprojectandafter theproject is terminated.

(J) The installation oroperation ofa permanent clean coal technology demonstration project that constitutes repowering, provided that the project does not result in an increase in the potential to emit ofany regulated pollutant emitted by the unit. This exemption shall apply on a pollutant-by-pollutant basis.

### 7

(K) The reactivation ofa very clean coal-fired electric utility steam generating unit. (iv) This definition shall not apply with respect to a particular regulated new source review pollutant when the major stationary source is complying with the requirements for an actuals PAL for that pollutant. Instead, the definition ofPAL major modification in R 336.2823 shall apply.

(bb) All ofthe following apply to major and minor source baseline dates: (i) "Major source baseline date" means betltall ofthe following: (A) January 6, 1975, for particulate matter and sulfur dioxide. (B) February 8, 1988, for nitrogen dioxide. 

### (C) 

### October20, 2010 for PM2.5 (ii) "Minor source baseline date" means the earliest date after the trigger date on which a mlUor stationary source or a major modification subject to PSD regulations submits a complete application under the relevant regulations. Thetrigger date is betltall ofthe following:

(A) August 7, 1977, for particulate matter and sulfur dioxide. (B) February 8, 1988, for nitrogen dioxide. 

### (C) 

### October20, 2011 for PM2.5 (iii) The baseline date is established for each pollutant for which increments or other equivalent measures have been established ifboth ofthe following occur:

(A) The area in which the proposed source or modification would construct is designated as attainment or unclassifiable under section 107(d)(i) (D) or (E) ofthe clean air act for the pollutant on the date ofits complete application underR 336.120I and PSD regulations.

(B) Ifa major stationary source, the pollutantwould be emitted in significant amounts, or, ifa major modification, there would be a significant net emissions increase ofthe pollutant.

(iv) Anyminor source baseline date established originally for thetotal suspended particulates increments shall remain in effect and shall apply for determining the amount of available PM-I0 increments, except thatthe department may rescind any minor source baseline date where it can be shown, to the satisfaction ofthe department, that the emissions increase fi·om the major stationary source, or the net emissions increase from the major modification, responsible for triggering that date did not result in a significant amount of PM-I0 emissions.

(cc) "Major stationmy source" means any ofthe following: (i) Any ofthe following stationary sources ofair pollutants which emit, orhas the potential
to emit, I00 tons per year or more ofa regulated new source review pollutant:

(A) Fossil fuel-fired steam electric plants ofmore than 250 million British thermal units per hour heat input.

(B) Coal cleaning plants with thermal dryers. 

### (C) Kraft pulp mills. (D) Portland cementplants. (E) Prirnmy zinc smelters. (F) Iron and steel.mill plants. (G) Primary aluminum ore reduction plants. (H) Primary copper smelters. (I) Municipal incinerators capable ofcharging more than250 tons ofrefuse per day. (J) Hydrofluoric, sulfuric, and nitric acid plants. (K) Petroleum refineries. (L) Lime plants.(M) Phosphate rock processing plants. (N) Coke oven batteries. (0) Sulfur recovery plants. (P) Carbon black plants(furnace process). (Q) Primary lead smelters. (R) Fuel conversion plants. (S) Sintering plants. (T) Secondary metal production plants. 

### 8

(U) Chemical process plants. The term chemical process plantshall not includeethanol production facilities that produce ethanol by natural fermentation included in North American Industrial Classification System codes 325193 or 312140.

(V) Fossil fuel boilers, orcombinations thereof, totaling more than 250 million British thermal units per hour heat input.

(W) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels.

(X) Taconite ore processing plants. (Y) Glass fiber processing plants. (Z) Charcoal production plants. (ii) Any stationary source not listed in the previous subdivision which emits, or has the potential to emit, 250 tons per year or more ofa regulated new source review pollutant.

(iii) Anyphysical change that would occur at a stationary source not otherwise qualifying under subdivision (cc) ofthis subrule, as a major stationary source ifthe change would constitute a major stationary source by itself.

(iv) A major source that is major for volatile organic compounds or oxides ofnitrogen shall be considered major for ozone.

(v) The fhgitive emissions ofa stationary source shall not be included in determining, for
any ofthe purposes ofthis rule, whether it is a major stationary source, unless the source belongs to I ofthe categories ofstationary sources listed is paragraph (i) ofthis subdivision.

(dd) "Necessarypreconstruction approvals or permits" means a permit issued under R 336.120l(l)(a) that is required by R 336.2801 toR 336.2819, R 336.2823, and R 336.2830 or R 336.1220.

(ee) "Netemissions increase" means all ofthe following: (i) For any regulated new source review pollutant emitted by a major stationary source, the
amount by which the sum ofthe following exceeds zero:

(A) The increase in emissions fi·om a particular physical change orchange in the method of operation at a stationary source as calculated underR 336.2802(4).

(B) Any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases underthis paragraph shall be determined as provided in the definition ofbaseline actual emissions, except that paragraphs (b)(i)(C) and (b)(ii)(D) ofthis rule shall not apply.

(ii) An increase ordecrease in actual emissions is contemporaneous with the increase fi·om the pmticular change only ifit occurs between the following:

(A) The date 5 years before construction on the pmticular change cmmnences. (B) The date that the increase from the particular change occurs.

### 9

(iii) An increase ordecrease in actual emissions is creditable only ifthe depmiment has not relied on it in issuing a permit under R 336.1201(I)(a) orR 336.1214a, which permit is in effect when the increase in actual emissions from the particular change occurs.

(iv) An increase ordecrease in actual emissions ofsulfur dioxide, particulate matter, or oxides ofnitrogen that occurs before the applicable minor source baseline date is creditable only ifit is required in calculating the amount ofmaximum allowable increases remaining available.

(v) An increase in actual emissimis is creditable onlyto theextentthatthe new level of actual emissions exceedsthe old level.

(vi) A decrease in actual emissions is creditable onlyto the extent that it meets all ofthe following criteria:

(A) The old level ofactual emissions orthe old level ofallowable emissions, whichever is lower, exceeds the new level ofactual emissions.

(B) It is enforceable as a practical matter at and after the time that actual construction on the particular change begins.

(C) Ithas approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change.

(vii) An increase that results from a physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a pmiicular pollutant. A replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days.

(viii) Thedefinition ofactual emissions in R 336.110l(b) shall not apply for determining creditable increases and decreases after a change, instead the definitions ofthe terms "projected actual emissions" and "baseline emissions" shall be used.

(fi) [Reserved] (gg) "Pollution prevention" means any activity that through process changes, product reformulation or redesign, or substitution ofless polluting raw materials, eliminates or reduces the release ofair pollutants, including fugitive emissions, and otherpollutants to the enviromuent before recycling, treatment, ordisposal. Pollution prevention does not mean recycling, other than certain "in-process recycling" practices, energyrecovery, treatment, or disposal.

(hh) "Potential to emit"means the maximum capacity ofa stationary source to emit a pollutant under its physical and operational design. A physical or operational limitation on the capacity ofthe source to emit a pollutant, including air pollution control equipment and restrictions on hours ofoperation oron the type or amount ofmaterial combusted, stored, or processed, shall be treated as pa11 ofits design ifthe limitation orthe effect it would have on emissions is legally enforceable and enforceable as a practical matter bythe state, local air pollution control agency, orUnited States environmental protection agency. Secondary emissions do not count in determining the potential to emit ofa stationary source.

(ii) "Predictive emissions monitoring system" or "PEMS" means all ofthe equipment
necessary to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen orcarbon dioxide concentrations), and calculate and record the mass emissions
rate (for example, pounds perhour) on a continuous basis.

(jj) "Prevention ofsignificant deterioration" or "PSD"program means the major source preconstruction permitprogram required by 40 C.F.R. §52.21, adopted byreference in R

### 10

336.2801a, orR 336.2801 toR 336.2819, R 336.2823 and R 336.2830. A permit issued under this program is a majorNSR permit.

(kk) "Project" means a physical change in, or change in method ofoperation of, an existing major stationary source.

(II) "Projected actual emissions" means all ofthe following: (i) The maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated new source review pollutant in any I ofthe 5 years (12-month period) following the date the unit resumes regular operation after the project, or in any I of the 10 years following that date, ifthe project involves increasing the emissions unit's design capacity or its potential to emit that regulated new source review pollutant, and full utilization ofthe unit would result in a significant emissions increase, or a significant net emissions increase at the major stationary source.

(ii) In determining the projected actual emissions, before beginning actual constmction, the

owner or operator ofthe major stationary source shall do all ofthe following:

(A) Consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected business activity and the company's highest projections ofbusiness activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the state implementation plan.

(B) Include fugitive emissions to the extent quantifiable and emissions associated with startups, shutdowns, and malfunctions.

(C) Exclude, in calculating any increase in emissionsthatresults from the particular project, that portion ofthe unit's emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline aetna! emissions and that are also unrelated to the particular project, including any increased utilization due to product demand growth.

(iii) The owner or operator ofa major stationary source may use the emissions unit's potential to emit, in tons per year, instead ofcalculating projected actual emissions.

(mm) "Reactivation ofa very clean coal-fired electric utility steam generating unit" means any physical change orchange in the method ofoperation associated with the
commencement ofcommercial operations by a coal-fired utility unit after a period of discontinued operation where the unit meets all ofthe following criteria:

(i) The unit was not in operation for the 2-year period before the enactment ofthe clean air
act amendments of 1990, and the emissions from the unit continue to be carried in the depmiment's emissions inventmy atthe time ofenactment.

(ii) The unit was equipped before shutdown with a continuous system ofemissions control that achieves a removal efficiency for sulfur dioxide ofnot less than 85% and a removal efficiency for particulates ofnot less than 98%.

(iii) The unit was equipped with low-oxides ofnitrogen burners before the time of
commencement ofoperations following reactivation.

(iv) The unit otherwise complies with the requirements ofthe clean air act. (nn) "Regulated new source review pollutant," for purposes ofthis mle, means all ofthe following: ·

(i) A pollutant for which a national ambient air quality standard has been promulgated and any constituents orprecursors for the pollutants identified by the United States environmental protection agency. For example, volatile organic compounds and oxides ofnitmgen are precursors for ozone, and oxides ofnitrogen and sulfur dioxide are precursors for PM 

### 2.5.

### 11

(ii) A pollutant that is subject to any standard promulgated under section Ill ofthe clean air act.

(iii) A class I or II substance subject to a standard promulgated under or established by title VI ofthe clean air act.

(iv) A pollutant that otherwise is subject to regulation under the clean air act; exceptthat
any orall hazardous air pollutants either listed in section 112 ofthe clean air act or added to the list under section 112(b)(2) ofthe clean air act, which have not been delisted under section 112(b)(3) ofthe clean air act, are not regulated new sourcereview pollutants unless the listed hazardous air pollutant is also regulated as a constituent orprecursor ofa general pollutant listed under section 108 ofthe clean air act.

(oo) "Repowering"means all ofthe following: (i) Replacement ofan existing coal-fired boiler with I ofthe following clean coal technologies:

(A) Atmospheric orpressurized fluidized bed combustion. (B) Integrated gasification combined cycle. (C) Magneto hydrodynamics. (D) Direct and indirect coal-fired turbines. (E) Integrated gasification fuel cells. (F) A derivative of I or more ofthese technologies, and any other technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance oftechnology in widespread commercial use as ofNovember 15, 1990, as determined by the United States environmental protection agency, in consultation withthe Secretary ofEnergy.

(ii) Repowering shall also include any oil and/or gas-fired unit which has been awarded clean coal technology demonstration funding as ofJanuary I, 1991, by the United States Depmtment ofEnergy.

(iii) The department shall give expedited consideration to permit applications for any

source that satisfies the definition ofrepoweringand is granted an extension under section 409 ofthe clean air act.

(pp) "Secondary emissions" means emissions which occur as a result ofthe construction or operation ofa major stationary source ormajor modification, but do not come from the major stationary source ormajor modification itself. Forthis mle, secondary emissions shall be specific, well defined, quantifiable, and impact the same general areas the stationary source modification which causes the secondaryemissions. Secondaryemissions include emissions fi·om any offsite support facility which would not be constructed or increase its emissions except as a result ofthe construction or operation ofthe major stationary source or major modification. Secondary emissions do not include any emissions which come directly fi·otn a mobile source, such as emissions from the tailpipe ofa motor vehicle, from a train, or from a vessel.

(qq) "Significant"means: (i) In reference to a net emissions increase orthe potential ofa sourceto emit any ofthe following pollutants, a rate ofemissions that would equal orexceed any ofthe following pollutant emission rates:

(A) Carbon monoxide: I00 tons per year. (B) Oxides ofnitrogen: 40 tons per year. (C) Sulfur dioxide: 40 tons per year.

### 12

(D) Particulate matter: 25 tons per year ofparticulate matter emissions; 15 tons Jler year of PM Hl emissions; Hl tons Jler year ofPM 2.5 emissions.

(E) PM-10: 15 tons peryear ofPM-10 emissions. (F) PM2.5: 10 tons peryear ofPM2.5 emissions; 40 tons peryear ofsulfur dioxide emissions; 40 tons peryearofoxides ofnitrogen emissions.**(G)~** Ozone: 40 tons peryear ofvolatile organic compounds or oxides ofnitrogen.

(H)(FJ Lead: 0.6 tons peryear.**(I)~** Fluorides: 3 tons per year. (J)f!B Sulfhric acid mist: 7 tons peryear. (K)Elj Hydrogen sulfide: I0 tons per year. (L)fB Total reduced sulfur, including hydrogen sulfide: I0 tons per year. (M)fKt Reduced sulfur compounds, including hydrogen sulfide: I0 tons per year. (N)fb) Municipal waste combustor organics, measured as total tetra- through octachlorinated dibenzo-p-dioxins and dibenzofurans: 3.2 x 10-6 megagrams per year or 3.5 x I0-6 tons per year.**(0)~** Municipal waste combustor metals, measured as particulate matter: 14 megagrams per year or 15 tons per year.

(P)tN) Municipal waste combustor acid gases, measured as sulfur dioxide and hydrogen chloride: 36 megagrams per year or40 tons peryear.**(Q)~** Municipal solid waste landfill emissions, measm·ed as nonmethane organic compounds: 45 megagrams per year or 50 tons peryear.

(ii) In reference to a net emissions increase or the potential ofa source to emit a regulated

new source review pollutant not listed in this defmition, any emissions rate.

(iii) Anyemissions rate or any net emissions increase associated with a major stationary

source or major modification, which would construct within I0 kilometers ofa class I area, and have an impact on such area equal to or greater than I microgram per cubic meter (24- hour average).

(rr) "Significantemissions increase" means, for a regulated new sourcereview pollutant, an increase in emissions that is significant for that pollutant.

(ss) "Stationary source" means any building, structure, facility, or installation which emits

or may emit a regulated new source review pollutant.

(tt) "Temporary clean coal technology demonstration project" means a clean coal technology demonstration project that is operated for a period of5 years or less, and which complies with the state implementation plan and other requirements necessaryto attain and maintain the national ambient air quality standards during and afterthe project is terminated.

R 336.2803 Ambient air increments

Rule 1803. In areas designated as class I, II, or·lll, increases in pollutant concentration over the baseline concentration shall be limited to all ofthe following:

Pollutant

CLASS I Table 182

Ambient Air Increments



# IMaximum Allowable Increase

(micrograms per cubic meter)

### 13

Pollutant Maximum Allowable Increase (micrograms per cubic meter) CLASS I Particulate matter:

PM-I0, annual arithmetic mean 4 PM-10, 24-hour maximum 8 PM 2.5, annual arithmetic mean 1 PM 2.5, 24-hour maximum 

### 2 Sulfur dioxide:

Annual aritiunetic mean 2 24-hour maximum 5 3-hour maximum 25 Nitrogen dioxide:

Annual arithmetic mean 

## I 2.5

CLASS II Pa1ticulate matter:

PM-10, annual aritlunetic mean 17 PM-I0, 24-hour maximum 30

PM 2.5, annual arithmetic mean 4 PM 2.5, 24-hour maximum 9
Sulfur dioxide:

Annual arithmetic mean 20 24-hour maximum 91 3-hour maximum 512 Nitrogen dioxide:

Annual arithmetic mean 125 

## I CLASS III Pa1ticulate matter:

PM-I0, annual arithmetic mean 34 PM-I0, 24-hour maximum 60 PM 2.5, annual arithmetic mean 8 PM2.5, 24-hour maximum 18
Sulfur dioxide:

Atmual aritlunetic mean 40 24-hour maximum 182 3-hour maximum 700 Nitrogen dioxide:

Annual aritlunetic mean 

## Iso

Forany period other than an annual period, the applicable maximum allowable increase
may be exceeded during I period per year at any I location.

### 14

R 336.2809 Exemptions.

Rule 1809. (I) The requirements ofR 336.2810 toR 336.2818 do not apply to a particular major stationary source ormajor modification ifeither ofthe following occurs:

(a) The major stationary source would be a nonprofit health or nonprofit educational institution ora major modification that would occur at such an institution.

(b) The source or modification would be a major stationary source or major modification only iffugitive emissions, to the extent quantifiable, are considered in calculating the potential to emit ofthe stationary source ormodification and the source is not required to include fugitives in its potential to emit under R 336.280l(cc)(v).

(c) The source or modification is a pmtable stationary source which has previously received a permit under R 336.2810 toR 336.2818, ifall ofthe following occur:

(i) The source proposes to relocate and emissions ofthe source at the new location would be temporary.

(ii) The emissions fi·om the source would not exceed its allowable emissions. (iii) The emissions from the source would not impact a class I area or an area where an applicable increment is known to be violated.

(iv) Reasonable notice is given to the department before the relocation identifYing the proposed new location and the probable duration ofoperation at the new location. Notice shall be given to the department not less than 10 days in advance ofthe proposed relocation unless a different time duration is previously approved by the department.

(2) The requirements ofR 336.2810 toR 336.2818 do not apply to a major stationary

source or major modification with respect to a particular pollutant ifthe owner oroperator demonstrates that, as to that pollutant, the source or modification is subject to new source review for major sources in nonattainment areas regulations.

(3) The requirements ofR 336.2811, R 336.2813, and R 336.2815 do not apply to a proposed major stationary source ormajor modification with respect to a particular pollutant, ifthe allowable emissions ofthat pollutant from a new source, or the net emissions increase ofthat pollutant from a modification, would be temporary and would not impact a class I

area oran area where an applicable increment is known to be violated.

(4) The requirements ofR 336.2811, R 336.2813, and R 336.2815, as they relate to any maximum allowable increase for a class II area, do not apply to a modification ofa major stationary source that was in existence on March I, 1978, ifthe net increase in allowable emissions ofeach regulated new source review pollutant fi·om the modification after the application ofbest available control technology would be less than 50 tons per year.

(5) The department may exempt a proposed major stationary source ormajor modification from R 336.2813, with respect to monitoring for a pmticular pollutant, ifany ofthe following

occur:

(a) The emissions increase ofthe pollutant fi·om a new stationary source orthe net emissions increase ofthe pollutant from a modification would cause, in any m·ea, air quality impacts less than the following amounts:

(i) Carbon monoxide

-- 575 micrograms per cubic meter, 8-hour average. (ii) Nitrogen dioxide-- 14 micrograms percubic meter, annual average. (iii) Particulate matter-- 10 micrograms per cubic meter ofPM-10, 24-hour average. 

### 4 micrograms per cubic meter ofPM2.5, 24-hour 

### average.

(iv) Sulfur dioxide-- 13 micrograms per cubic meter, 24-hour average.

### 15

(v) Ozone- There is no de minimis air quality level for ozone. However, any net increase of 100 tons per year ormore ofvolatile organic compounds or oxides ofnitrogen subject to PSD would be required to perform an ambient impact analysis, including the gathering of ambient air quality data.

(vi) Lead

-- 0.1 micrograms per cubic meter, 3-month average. (vii) Fluorides-- 0.25 micrograms per cubic meter, 24-hour average. (viii) Total reduced sulfur-- I0 micrograms per cubic meter, !-houraverage. (ix) Hydrogen sulfide-- 0.2 micrograms per cubic meter, !-hour average. (x) Reduced sulfur compounds

-- 10 micrograms per cubic meter, !-hour average. (b) The concentrations ofthe pollutant in the area that the source ormodification would affect are less than the concentrations listed in subdivision (a) ofthis subrule.

(c) The pollutant is not listed in subdivision (a) ofthis subrule.

R 336.2816 Sources impacting federal class I areas; additional requirements.

Rule 1816. (1) The department shall transmit to the United States environmental protection
agency a copy ofeach permit application relating to a major stationary source ormajor modification and provide notice to the United States envirornnental protection agency of
every action related to the consideration ofthe permit.

(2) Ifan applicant submits a permit application to the department for a proposed major stationary source ormajor modification that affects a federal class I area, the applicant must submit to the department and the federal land manager charged with direct responsibility for management ofclass I lands a demonstration ofthe impactthe emissions from the proposed

source ormodification would have on the air quality related values ofclass I lands, including visibility. The depmtment shall be available to consult with and provide additional information to the federal land manager during the federal land manager's review ofthe demonstration submitted by the applicant, ifnecessary, to complete the review ofthe demonstration.

(3) Ifthe federal land manager's review ofthe applicant's demonstration results in a finding that the emissions from the proposed major source or major modification would have

an adverse impact on the air quality related values ofclass I lands, including visibility, notwithstanding that the change in air quality resulting from emissions from a major source

ormajor modification would not cause or contribute to concentrations that would exceed the maximum allowable increases for a class I area, and ifthe department concurs with such finding, then the department shall not approve the permit application.

(4) Ifthe department determines that the emissions from a proposed major source or major modification would cause orcontribute to concentrations which would exceed the maximum allowable increases for a class 

### I area, the department shall not approve a permit application unless the applicable requirements ofMichigan's state implementation plan are otherwise
met and I ofthe following occurs:

(a) The applicant submits a written ce1tification that the applicant has demonstrated to the federal land manager that the emissions from the proposed major source ormajor

. modification would have no adverse impact on the air quality related values ofclass I lands, including visibility, notwithstanding thatthe change in air quality resulting fi·om emissions from a major source or major modification would cause orcontribute to concentrations that would exceed the maximum allowable increases for a class I area. The department maythen, provided that applicable requirements are otherwise met, issue the permit with emission limitations to assure that emissions ofsulfur dioxide, particulate matter, and oxides of

### 16

nitrogen would not exceed the following maximum allowable increases over minor source baseline concentration for the pollutants:

Table 183

Maximum allowable increases over minor source baseline concentrations

Pollutant Maximum Allowable Increase (micrograms per cubic meter)
Particulate matter:

PM-I0, aunual arithmetic mean 17 PM-I0, 24-hour maximum 30 PM2.5, annual arithmetic mean 4 PM2.5, 24-hour maximum 

### 9 Sulfur dioxide:

Annual arithmetic mean 20 24-hour maximum 91 3-hour maximum 325 Nitrogen dioxide:

Aunual arithmetic mean \25

(b) Ifthe department cannot approve the permit application underR 336.2816(4)(a) due to sulfur dioxide emissions resulting in increases greater than those specified in table 183 for periods of24 hours or less, the applicant may obtain approval byproviding a written cettificationthat the applicant has demonstrated to the federal land manager that the emissions fi·om the proposed major source or major modification would have no adverse impact on the air quality related values ofclass I lands, including visibility, and that both the
governor and the federal land manager have granted a sulfur dioxide variance for the federal class I area on which variance the public has received notice and opportunity for public hearing.

(c) Ifthe department cannot approve the permit application under R 336.2816(4)(a) due to sulfur dioxide emissionsresulting in increases greater than those specified in table 183 for periods of24 hours or less, and the department cannot approve the permit application under R 336.2816(4)(b) because the federal land manager does not concur with the governor's issuance ofa sulfur dioxide variance that is otherwise consistent with R 336.2816(4)(b), the applicant may obtain approval by providing a written certification that the applicant has demonstrated to the president that a sulfur dioxide variance is in the national interest and the president concurs with the issuance ofthe sulfur dioxide variance by the governor. The applicant shall transfer the recommendations ofthe governor and the federal land manager to the president in any case where the governor recommends a variance in which the federal land manager does not concur.

(5) The department will not issue a permit affecting a class I area in which a sulfur dioxide variance was granted under R 336.2816(4)(b) or (c), unless the permit includes emission limitations necessary to assure that emissions ofsulfur dioxide from the major source or major modification would not, during any day on which the otherwise applicable maximum allowable increases are exceeded, cause or contribute to concentrations which would exceed

### 17

the following maximum allowable increases over the baseline concentration and to assure that emissions would not cause or contribute to concentrations which exceed the otherwise applicable maximum allowable increases for periods ofexposure of24 hours or less for more than 18 days, not necessarily consecutive, during any annual period.

Table 184

Maximum Allowable Sulfur Dioxide lucrements

Period OfExposure Maximum Allowable Increase (Micrograms Per Cubic Meter) Terrain Areas Low High 24-hour maximum 36 62 3-hour maximum 130 221

# ATTACHMENT BS'fATE 01' MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

LANSING 

# DEC

RICK SNYDER

GOVER.'lOR


### October 19, 2012

Ms. Deldre O'Berry Office of Regulatory Reinvention Department of Licensing and Regulatory Affairs George W. Romney Building, 4th Floor 111 South Capitol Avenue Lansing, Michigan 48933

Dear Ms. O'Berry:

SUBJECT: Certificate ofAdoption forAdministrative Rules, ORR 2011-035 EQ DAN WYANT DIRECTOR



### The Certificate ofAdoption for the administrative rules promulgated pursuant to Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended, is being f01warded to you, along with a reference copy of the administrative rules, in accordance with the provisions of Executive Order 2011-5.

Revisions to R336.2801, R336.2803, R336.2809 and R 336.2816 to address PM 2.5 and ozone precursors are necessary for the United States Environmental Protection Agency (U.S. EPA) to approve the Air Quality Division's (AQD) permitting rules. PM 2.5 is a new National Ambient Air Quality Standard for which new emission thresholds, ambient increments, and definitions are being added to the rules. Oxides of nitrogen
are a precursor of ozone and need to be added to the Prevention of Significant Deterioration rules.

All of these changes adopt language strictly from federal regulations. We are updating
our rules in order to maintain U.S. EPA approval of our major source New Source Review State Implementation Plan.

Ifyou have questions or comments regarding the rule changes, please contact Mr. David Fiedler, Regulatory Affairs Officer, Department of Environmental Quality (DEQ), at 517-335-6927 or fiedlerd@mlchigan.gov, oryou may contact me.

Enclosures

# ~,~~0 

# J\_ 

# JdWyant 

# I.J0\

Director 517-373-7917

CONSTITUTION HALL• 525WESTALLEGAN STREET• P.O. BOX 30473 • LANSING, MICHIGAN46909·7973 www.mlchlgao.gov/deq • (600)662-9278 Rev. 01/2012Ms. Deidre O'Berry Page2 October 19, 2012

cc: Mr. Jim Sygo, Deputy Director, DEQ Ms. Madhu Anderson, Director of Policy, DEQ Mr. G. Vinson Hellwig, DEQ cc/enc: Mr. David Fiedler, Regulatory Affairs Officer, DEQ Ms. Carrie Barr, DEQ Mr. Bob Irvine, DEQ AQD, ORR 2011-035 EQ File

# IJ '

'**~** 

# . RICK SNYDER

GOVERNOR STATE OF MICHIGAN
DEPARTMENT OF ENVIRONMENTAL QUALITY

LANSING

CERTIFICATE OF ADOPTION 

# DE€l

DAN WYANT

DIRECTOR



### I, Dan Wyant, Director ofthe Department of Environmental Quality, do formally adopt the attached administrative rules, by amending R 336.2801, R 336.2803, R 336.2809 and R 336.2816 ofthe Michigan Administrative Code.

These rules are adopted pursuant to Section 5512 of Part 55, Air Pollution Control, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended, and Executive Order 1995-18, as amended by Executive Order 2011-1.

Date

ORR 2011-035 EQ

CONSTITUTION I-IALL • 626WESTAllEGAN STREET• P.O.I30X30473 • LANSING, MICHIGAN 46909-7973 www.mlch!gan.gov/deq •(800) 662-9278 Rev. 01/2012

# ATTACHMENT CNATURAL RESOURCES AND ENVIRONMENTALPROTECTIONACT (EXCERPT) Act 451 of 1994

324.5512 Rules. Sec. 5512. (I) The department shall promulgate mles for purposes ofdoing all ofthe following: (a) Controlling orprohibiting airpollution. (b) Complying with the clean airact. (c) Controlling any mode oftransportation that is capable ofcausing or contributing to air pollution. (d) Reviewing proposed locations ofstationaryemission sources. (e) Reviewing modifications ofexisting emission sources. (f) Prohibiting locations or modifications ofemission sources that impair the state's ability to meet federal ambient airquality standards. (g) Establishing suitable emission standards consistent with federal ambient air quality standards and factors including, but not limited to, conditions ofthe terrain, wind velocities and directions, land usage ofthe region, and the anticipated characteristics and quantities ofpotential air pollution sources. This part does not prohibit the department from denying orrevoking a permit to operate a source, process, orprocess equipment that would adversely affect humanhealth or otherconditions important to the life ofthe community. (h) Implementing sections 5505 and 5506. (2) Unless otherwise provided in this part, each mle, permit, or administrative order promulgated or issued under this part prior to November 13, 1993 shall remain in effect according to its terms unless the mle or order is inconsistent with this part or is revised, amended, or repealed. (3) Section 11522 applies to open burning. History: 1994, Act 451, Eff. Mar. 30, 1995;-Am. 2012, Act 102, lmd. Eff. Apr. 19,2012. Popular name: Act 451 Popular name: NREPA Administrathre rules: R336.1101 et seq.; R336.1122; and R336.1201 et seq, ofthe Michigan Administrative Code,

Rendered Wednesday, July 31, 2013 © Legislalive Council, Slate ofMichigan Page 1 Michigan Comp!Jed lawsComplete Through PA 106 of 2013 Courtesyofwww.legislature.mi.gov

# ATTACHMENT DSTATB OF MICHIGAN**RUTHJo~~N.S~YOFSTIUE** DEPARTMENT OF STATE LANSINo November 30, 2012

NOTICE OFFILING

ADMINISTRATIVERULES

To; Secretary ofthe Senate Clerk ofthe House ofRepresentatives Joint Committee on Administrative Rules State Office ofRegulatory Reinvention (Administrative Rule #2011-035-EQ) Legislative Service Bureau (Secretary ofState Filing #12-11-16) Department ofEnvironmental Quality

Inaccordance withthe provisions ofSection 46(1) ofAct 306, Public Acts of 1969, as amended, and Executive Order 1995-6, this is to advise you that the Michigan Department ofLicensing and Regulatory Affairs and the State Office ofRegulatory Reinvention flied Administrative Rule #2011-035-EQ (Secretary ofState Filing #12-11-16) on this date at 4:43P.M. for the Department ofEnvironmental Quality, entitled 10Part 18, Prevention ofSignificantDeterioration ofAir Quality".

This rules become effective immediately upon filing with the Secretary ofState unless adopted under sections 33, 44, 45a(6), or 48 of1969 PA 306. Rules adopted under these sections become effective 7days after filing with the Secretary ofState.
Sincerely,

RuthJohnson

# ?;;;::s~**~~ ~**  Robin L. Houston, Departmental Supervisor Office ofthe Great Seal

Enclosure

OFFICE OF THE GREAT SEAL 108 SOOTH WASHINGTON SQUARE, SUITE 1 • lANSING, MICHIGAN 48918 1-888·SOS-MICH (1-888-767-8424) 'fiWW,M]Ch]gI 1'1,gOV/303

# ATTACHMENT ERICK SNYDER GOVERNOR STAT!l OF MICHIGAN 

### DEPARTMENT OF ENVIRONMENTAL QUALITY

LANSING



### NOTICE OF PUBLIC HEARING DEPARTMENT OF ENVIRONMENTAL QUALITY AIR QUALITY DIVISION 

# DEn

DAN WYANT

DIRECTOR



### The Michigan Department of Environmental Quality (DEQ), Air Quality Division, will conduct a public comment period and hearing on proposed administrative rules promulgated pursuant to Part 55, Air Pollution Control, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (Act 451) for the following rule revisions:

Air Pollution Control Rule (ORR 2011-012 EQ) Part 1to modify the existing definition In Air Pollution Control RuleR 336.1119 (e) "Significant", to add a significance threshold for the new PM2.5 pollutant, and amend the existing definition in R336.1122 (f) 

### "Volatile organic compound" by adding to the list of compounds with negligible reactivity.

Air Pollution Control Rule (ORR 2011-031 EQ) Part 6, to modify existing language in Air Pollution Control Rule 336.1618 to clarify the requirements for use of cutback asphalts In paving and patching operations during the May 1to September 30 ozone season In the state of Michigan, Including adding provisions for emulsified asphalts that have very low volatile organic compound content.

Air Pollution Control Rules (ORR 2011-035 EQ) Part 18 to modify existing language In Air Pollution Control Rules R336.2801, R336.2803, R 336.2809, R336.2816 to be consistent with the federal requirements for the Prevention of Significant Deterioration of Air Quality, Title 40 of the Code of Federal Regulations, Section 51.166.

Air Pollution Control Rules (ORR 2011-036 EQ) Part 19 to modify existing language in Air Pollution Control Rules R336.2901, R336.2903, R 336.2908 to be consistent with the federal requirements for the New Source Review permltllng program, Title 40 ofthe Code of Federal Regulations, Section 51.165.

The public hearing will be held on Thursday, August 9, 2012 at 9:00a.m. in the Lillian Hatcher conference room, Constitution Hall, 3'd floor south, 525 Allegan Street, Lansing, Michigan.
Copies of the proposed rules can be downloaded from the Internet at: http://www.michigan.gov/deq/alr/lawsandrules/alrpollutionlaws.gov. These rules can also be downloaded from the Internet through the Office of Regulatory Reinvention at http://www.michigan.gov/orr. Copies ofthe rules may also be obtained by contacting the Lansing office at:

Air Quality Division Michigan Department of Environmental Quality P.O. Box 30260 Lansing, Michigan 48909-7760 Phone: 517-373-7069

Fax: 517-335-4729

All Interested persons are invited to attend and present theirviews. It is requested that all statements be submitted in writing for the hearing record. Anyone unable to attend may submit comments in writing to the address above. Written comments must be received by 5:00p.m., Thursday, August 9, 2012.

CONSTITUTION HALL • 525WESTALLEGAN STREET • P.O. BOX30473 • LANSING, MICHIGAN 48909·7973 www.mlchlgan.gov/deq • {800)662·9276

### Persons needing accommodations for effective participation In the meeting should contact the Air Quality Division at 517-373-7069 one week In advance to request mobility, visual, hearing, or other assistance.

This notice of public hearing Is given In accordance with Sections 41 and 42 of Michigan's Administrative Procedures Act, 1969 PA 306, as amended, being Sections 24.241 and 24.242 ofthe Michigan Compiled Laws. Administration of the rules Is by authority conferred on the Director of the DEQ by Section 5512 of Act 451 and Executive Order No. 2011-1. These rules will become effective Immediately after filing with the Secretary of State.

G. Vinson Hellwig, Chi Air Quality Division

-2-

### AFFIDAVIT OF PUBLICATION Lansing StateJournal 120 E. Lenawee ...**~**... -.111_w V W'l, 1"'111.11 VIlifY



# r:·ati8irii;:Mfi!s9·t9' · ···· ···· -··· ··· .... ,.. : ··

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### State ofMichjgan, County ofingham

IN THE MATTER OF: Notice ofPublicHearing

Michigan Depat1mentofEnvironmental Quality (DEQ), Air QualityDivision


### Kelly Page
Being duly sworn, saysthathe/sheis authorized by thepublisher ofthe Lansing StateJournal, to swearthat a certain notice, acopy ofwhichis amtexed hereto, was publishedin the following publication:

I. Published inthe Englishlanguage for the dissemination ofgeneral and/or legal news, and 2. Has abonfide list ofpaying customers orhas beenpublished atleastonce aweekinthe

same community withoutintelTuptionfor at least2years, and 3. Has been established, published and circulated atleastonce aweek withoutinterruption for atleastone (1) yearinthe community wherethepublication is to occur. Lansing StateJournal 7/9/2012

# ~~~~ Kelly Pag

SUBSCRIBED AND SWORNTO BEFOREMETHIS 14th

DAY OF SEPTEMBER2012

LISA SHOOLTZ NOTARY PUBLIC, STATE OF MICHIGAN, COUNTY OF SHIAWASSEE MY COMMISSION EXPIRES: DECEMBER 17,2017 ACTING IN THE COUNTY OF INGHAM

LSJ 1016292**c:;~:;?,** £11 JP that**:~le­** :thof ::web· t.aticn is rest.!lts**:-~tci-** .•**"'~ r~l!.:\'l:rx** **~~~** "JSH•JWI



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'--·'-·**l•tt~,_:,..~.,** l:f!CI'>:0.,-:::;.1**.lmc;~S:w·per.sc.ns** ar':.**inv/i:~~** tc·**l,t;.en(i~** present tii;fr**vl~ws.** Iti•**r:or.ve.~ted ,.~** ..ti syc.\eme;'lts be suomim:d**~~; v:~tino** **~f~,!** f,earlng. re:::orO. Anyone unable to zite 1 \t:i

1**sv~mlt** comr,1ents. in**writin~** to the aci/

. J:·c.bove;. Written**comme~ts** must be re·j',**,~d** by •.00**~.m.,** Thurso:c.y, Avgust S,l ·' I ' <-ons neecli_ng acc-ommodations for dfec·l participatiOn In the meeting s'hOu/d con.1 the AirQuality Division at**Slf-.373-JO<=~/** weelc In advance to reC'ue.st mobility 

### ui;. it.atlng, or otherassistance. ' · 

### 1 .
notice of public hea_ring Js given In acance with Sections 41 and 42 of Michl·l ; Administrative ProC-!di!H!S Act, l%S .06'..as**ar~ended',** belnr} Sectlons 24,241 1**l~.t42** ofrhe Michigan Complied lawc nlstratlon of the roles Is by authorlh 1 ;rred on the Director ofthe DEQ b)• 52;.**1Sl~** ofl:ct 451 and Executive Order No. !. I**hes~** rules will become eH<!cUve fm-**~tely** atte.r flUng with the Secretary of

!SOn Hellwl9, Chief 

### l**~)!~~~·~'----------~V~S/~20~l!2**__ 

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# r ICountyofOakland}STATEOFMICHIGAN,ss....:..:.....beingdulyS\NOrn.deposesandsaysthatIamthe.......................ofTHEOAKLANDPRESS,anewspaperdailyinOaklandCounty,.andthatIheldsuchpositionduringthepublicationofthenoticeheretoannexed;thatanoticeof............,......................."...•....,................................................................ofwl1ichtheannel\ednoticeisatruecopy,waspublishedinthesaidTHEOAKLANDPRESS.....................................................................................,immediatelyprecedingthe.9..of.•.......thattheannexedprintedcopyofsaidnoticewa$tanfr,thesaidnewspaper.Thatthedatesofpublicationofsai.B.1........................andfurther.1(·.\.tJ.._!J1'{fl.)J'-.J-1·············'-=-··'·iT'................................................:................................y........................................................................Subscribedandswornt()-l;l.eforemethis........9..........dayoff7NOTARYPUSUC,OAKLANDCOUNTY.MlCHIGANTINAM.CROWN1\\0TAAYPUBUC,STALE0!=MiCOUNTYOFLAPEERMYC()MMI$SIONEXPIRESMarSO.2014ACTING!NGOUNTYOFliRICKSNYDeR-sY.A"'tEOFil.ltl¢aiG.ANDB>JUITMEM"i"Oil'ENVli'<ONMIEOIYALQUALnntLANSINGNOTICEOFi>UBUCHEAIUNGD!E!>ARTMENT01"EiiiVIROi\lt.IEN"i"ALAIRQUAUTV0111l'ISIOM,g;;J......,""'CM'M'm'l"-..TheMlcb.iJ;3nDcp:u"tmentot"En.vironme:nt:alQaality<DEQ),AirDivisicn,willeocductapubliceomruentperiod3.ndhearingonndn1inUtr3tiverule:spromulgatedplll'S\Ul.nttoP:lrt55.Ail'Polluti011ConLrol,oftheNatw-;,.1Resourees:mdEnvironmenb.lProtectionPA451.:LSCAcL4Sl)forlbefollowiCltrulerevisions:·.'AirPollutionControlRule(ORR2011-012EQ)Pll.rtltomodifythedeinltioll.inAirPoUutloo.Con.irolRuleR336.1119(e)tothresholdforthenewPM2.5poUuunL,.nndnmendthe{!Xistingdefini.ti.cminR.330.ll:l2(!)org::l.niccompound..byadding'tOlb.elistorcompoundswilh.c.egligihleAirPollutionContl'olRuleCORR20ll..o3lEQ>PartS,tomodifYexistin&iuAi'rPollulionCo.1trolRule336.1618tocl.arit;ythe1'«1uircnentsforuseoreutfxlekasplultsinPAving:$dP:llehingoperationsdurin.\:"theMay1toSeptemOOr30o:z:one:se:LSOnillthestnteo[Miehiean,includingaddingprovisionsforcnu.il.si6edb:.wevery!owvolatileorcnrUecompou'¥icontent.AirPotlutionControlRUlesCORR2Gll..03SEQ)Part18tomodifyexistingl:!Jlgutll':ClnAirPoUuliOJlContl·otRulesR.336.2801,R336..28:03,R336.2809,R336.2816tobeconsistentwit.hlhefedei:llrequirement::forthePreventionorSigni.G.=tDeteriol':l.tionof.Ai:rQun!ity,Title40oftheCodeorFeder:11Re.culutions.Sectionsuss.AirPollutionControlRules(ORR2:011-036EQ>h.rtISto·raodi.IyeXistinginAirPoHufie»\ControlR336.2901.R336.2$03.R330.2900tobewiththetoderalrequirementsrorlheNC:WSourceReviewt>ennittini::l)rocrnzn.Title40oftbeCodeofFederalRegut3.ti!)ns,Sectioll51.165.'l'bepublic.hc::uinewillbeheldonThursday,August9..9:00n.m.intheI'I:ltcberconferenec-"rOOm,ConstitutionBall,3t'dfloor.south,S2SStr.::et,.L:lnsing,Mkblg:m.CopiesoftheproposedrulescanbedownloadedL"''mtheInt<::rc.«at'I'hcscrulese:analsobedownloadedr."VmtheInternetthroughtheOmeeReinventionCopiosorthem:tYbeobtainedbyL:u:tslng:officeut:DivisionM'iehiganQualityP.O.Box30260L:l.11$ing,ilficb.lga.n4$09-7760Phone:517-373-7069FllX:517-335-4.729Allintere.skd.petSOns:1reinvitedto.andpresenttheirviews.Iti::t:Lhatan:MLemenlsbesubmittedinwrilingf'Ol:'theWl:lbleto;rncysubmiteomrucntsillWl'itint:Lolheabove.Writtc:neomm.ents:mustbereceived.byS:OOp.m..,Thursd.ay,Aut<wt!),2012.Pel"SSnsneedingaeeommodati.onsf'ol:'ertectiveP<u"ticipaUoninthesbonldAh·QualityDivisiononeweekintoreQUestmobility,visual,he::u-io.g,01"c.therThis.c.otleeorpublich0nri.cgisgivenin:.ceord=eewithSections4142orAdn'linisl.l':llivcProceduresAct.1969PA3(16,as:unCDded,being:Soetions24.241nnd24.242oftheMiehlJ:!MJ...nws.Admin.lstrationortherulesisbyauthorityeonf¢ttedontheDircetorortheDEQbyS"'ction5512orAet.:1.51E'xeeutiveOrdel:'No.:!Oll-1.Theseruleswillbeeomeeffectiveimnleili:JotelY:illc•·fillrl{.:wilhLhcScc1·<:b.ryofSbte.G..ViwsoraC:t-nDei·A.ilfQuaUUit"IJ8.2:012

# The Mining Journar

. Upper Michigan's Largest Da!ll'**Ne~·spaper·** 249 W. Washington St., P.O. Box 430, Marquette, Mlchlgan49855. Phone (906)228-2500. Fax (906)228·3273. AFFIDAVIT OF PUBLICATION

STATE OF MICHIGAN

For the·County 

### oi MARQUETTE

In the matter of: Notice of Public Hearing Department &f**Environm~nt~l** Quality Air Quality IJivision · ·, Administrative Rules··Air Pollution Control

Cost: $130.50

State of MICHIGAN, Count)• of Marquette ss.

JAMES A. REEl'S
being duly sworn, Sa)'S that he is

PUBLISHER

of THE MINING JOURNAL

a newspaper published and circulated in said county and otherwise qualified according to Supreme Court Rule; that annexed hereto is a printed copy of a notice which was published in said newspaper on the following date, or dates, to-wit

July 9, 2012

# ;~ .**"\.\~** JAMES 

### A. REEVS

·.. :

### Sub~Z;ibed and sworn to before me this 9'" da)' ofJuly, 2012.

'· AMYL. BOI:ID Notary-Public for Marquette County, Michigan Acting In the County of Marquette My commission expires: Jul\• 3, 2013. AFFIDAVIT OF PUBLICATION



### .. :

# I 

# l ·. ·· The Mining Journal 

## 78

NOTICB 01' IJUBLIO

HEARING**D~PART•** MENT OF ENVIRON• MENTAL QUALITY AIR QUAIJTY DJ\'Io SION
The Mlchklan Depart•

ment ol**EnWonm~lal** Quality- {QEO), Air OUaJil)' oMsloit, vm eornl'uct a P\il:lo ccm· n'.ent period end heu· log oo pcOf!osed admlnlstraUve rule$ J'{cmuJgatOO pU!.suant to Pact 6S, A.'r Pd!u· t1on CMtrot of !he Na· tural Reroorce.s and EnWonmental Pcotec· lion**h~** 1994 PA 451,

.. anwded (Ad 451) lot 1M f01b'Mng Me re\isbru:

Air ·Pollution Control

Rote (ORA 2011.012 EO) Put 1 to mo<lly \he eldsllog defNforl In Nr Po!ui¢11**eon•~** Role R 00$.1119 (o)**·s~nr,** to acM a**&.'$ill~ant:&** Uveshold lot**~** MN PM2.5 P:QI•**fu!an~** end amend· lhe e:dsr-fl9 def'J1J(oo ln A 3:l8.f122 (I) 'Volafle O<!lM!c to/1'9<)\Uld'**~,** adi.rm lo lh& R$1 cl**~Mthnesl·** gible ftat!Mtf,
Atr Pollullon Coi1UOI**R~o** (ORR 2<111.001

.

EO) Put 6, to mcdly ex!stllg 1-ago In AJt P<*tul!-)f'l ContcoC Rule :)38.1618 to eta!· fly the**r~u!rentenl$** fol use of**cti~** as· phaJ"t. !tl paW!g and**~atchlng o~arallons**  durlnQ lhe May 1 to Septe1nbef 30 OZOfi& UILSOCI In the**~tala** fll Mfet\lgan, Including A<1<Jn9 p<O'oislol!l$ IO< emuls!llad asphaUs that haVe Vef/ tow volat1o Of9Mb**~ poundeont~L**  AJt Poilutfon Control

R!l..es {OM 2011-035 EO) P.vt 16 lo**modi~** eldsll'og language In Nt Polu!OO Ccottot Ru'M R**~2SOI,** R a3o.geoa, A**:)36~009**•.A**G36~616** kl ba CCM-ts!en1 Wh lhtt

-federal require· ments fur Qle Prevenllon of Slgnll/oanl Oe!elloradon_. _of f'Jr**a~.** lit's 40 

### or the

. c«fio ·'oi•Fe<fti>l' R"**gu\allo~~'·~\~:.~~.IJ~-~** Air Po!lullon Control Rl4s {OAR 2011-036 EO) Put 19 I<> mo<lf'/ •l<htllg lanQ<Jage In Alf PoDuUori Control Ru!es A 336.2001, A 33G.2003, R 3.'36'.ma (() be IX'Mis.fenl Wf"th the federal req_u!le· monts -for lhs New Source RaY.ew per·**~** program,**Trt.~** -40 Of tho

.Code <ll

- Federal Regulations, Settoo 61.1&5,
'Tho**~ ~;.,rtog**  v.<J

be held oo ll!wsday, Augu$1 9, 2012.a1 900 a.m. ln lhe UH!an Hal¢her coflferenco

.room, · Conslllullon Hall', $td flOO{ ·&OO!h, 626**Afl_eg~ry** $tree!,**l~lng,~an.- Ccp!_~** ·of the**p~cpOs,jd** itJm -can 00 c:loWn· Joaded !ron\ 'lh8 ln!M· •.natal:htlp:IMwH..rnlml oanQ<lY(d«i'u.lam<M ·**~"'·** goy •

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. 

## r4;o:! of

### ·~·.tieS-**rna~**

""" be obla!!led by COII!.?oc'lflll ihe U..in9 C>liY:eal: •

.. M <;mll(OM$\lit ' · Mkhlgai) O_epartmenl of

EnW«tmen!al Qual'lty P.O."Box00260 Laoelng, Mtchlgan

l$909·7160

. Phone: 617-373-7000 Fcre 617-335--4729
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. \'tWI !he Sffie!aly "Of State.

## -t~~~i:i;r~~Y~tlr::, 1time 07--09·2012

# Michigan Register

Published pursuant to § 

## 24.208 of The Michigan Compiled Laws



## lssueNo.I3-2012 (This issue, published August I, 2012, contains documents filed from July 1, 2012 to July 15, 20 12)



### Compiled and Published by the 

# Office ofRegulatory Reinvention

## CONTENTS

PROPOSED ADMINISTRATIVE RULES, NOTICES OFPUBLIC HEARINGS

Department ofEnvironmental Quality Air Quality Division (20 11-012) Part I General Provisions

.................................................................................................2-12 Hearing Notice

.................................................................................................................. 13-14

Department ofEnvironmental Quality Air Quality Division (2011-031) Pmi 6 Emission Limitation and Prohibitions Existing Sources of Volatile Organic Compound Emissions

............................................................................ 15-16 Hearing Notice

.................................................................................................................. 17-18

Department ofEnvironmental Quality Air Quality Division (20 11-035) Pmi 18 Prevention ofSignificant Deterioration ofAir Quality

........................................ 19-34 Hearing Notice

..................................................................................................................35-36

Department ofEnvironmental Quality Air Quality Division (20 11-036) Part 19 New Source Review for Major Sources Impacting Nonattainment Areas ........................................................................................................ 37-49 Hearing Notice

..................................................................................................................50-51

.MICHIGAN ADMINISTRATIVE CODETABLE

Table (2012 Session)

............................................................................................,.......................53-57

CUMULATIVE INDEX

Cumulative Index (2012)

..............................................................................................................58-60

BILLS SIGNED INTO LAW ORVETOED

Appendix Table I (20 12 Session) (Legislative Service Bureau Pages (1-29)

..............................61-61

# ATTACHMENT FDepartment of Environmental Quality

Opening Statement By: Mike Jackson, Hearing Officer

August9, 2012

Introduction

Good morning. My name is Mike Jackson, and I am the Supervisor ofthe Administrative Section in the Air Quality Division at the Michigan Department of Environmental Quality. I will be serving as the Hearing Officer for this public hearing on the proposed administrative rule revisions to:

ORR 2011-012 EQ Part 1- General Provisions;

ORR 2011-012 EQ Part 6- Emission Limitations and Prohibitions- Existing Sources of Volatile Organic Compound Emissions;

ORR 2011-035 EQ Part 18

- Prevention of Significant Deterioration ofAir Quality; and,

ORR 2011-036 EQ Part 19- New Source Review for Major Sources Impacting Nonattainment Areas.

With me are Carrie Barr, Administrative Rules Coordinator for the Air Quality Division, and Vince Hellwig, Chief ofthe Air Quality Division, who is representing the Director of the Department, Dan Wyant, as the decision-maker on administrative rules. I would also like to introduce Bob Irvine from the Air Quality Division, who has been instrumental in developing the proposed revisions to these administrative rules.

Hearing Agenda

First, we will begin with some background information about why we are here. Then,

we will describe the purpose ofthe hearing and how your comments will be used. Fallowing that, we will outline the procedures underwhich we will take your comments and describe what will happen after today's hearing. Then, it will be time to hear your comments. We will spend the majority oftoday's time listening to those comments. At the end ofthe hearing, we will provide a short summary and closing.

Background Information

The Air Quality Division is responsible for protecting Michigan's air resources. The law governing those responsibilities is Sections 5503 and 5512 of Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended. We are here for a public hearing on proposed revisions to:



### 1ORR 

### 2011-012 EQ Part 

### 1 - General Provisions;

ORR 

### 2011-031 EQ) Part 

### 6- Emission Limitations and Prohibitions- Existing Sources ofVolatile Organic Compound Emissions;

ORR 

### 2011-035 EQ) Part 

### 18- Prevention of Significant Deterioration ofAir Quality; and,

ORR 

### 2011-036 EQ) Part 

### 19- New Source Review for Major Sources Impacting NonattainmentAreas.

Bob Irvine will now briefly summarize the proposed revisions.

Purpose of Public Hearing

Thank you Bob. Now, Carrie Barrwill describe the purpose oftoday's hearing and how your comments will be used.

Carrie: In orderfor rule promulgation to occur, the Department must follow the procedures set forth in the Administrative Procedures Act of 

### 1969 and the State Office ofAdministrative Hearings and Rules' procedures.

The purpose oftoday's hearing is to give anyone interested in the proposed rules an opportunity to provide information that the Department can use in making its decision. Please recognize that we can only use the information you provide if it relates to the criteria that the Department must use in making a decision. Some ofyou may want to simply express your support or opposition to the proposed rules. We will be happy to make note ofyour position, but please understand that the Department is, by law, not allowed to base our decision on whether or not there is widespread support or opposition to the proposed rules.

Procedures

The Notice of Public Hearing was published in the Oakland Press, Lansing State Journal, and Marquette Mining Journal on July 

### 2 - 9, 2012. This notice along with the proposed rules was also published in the Michigan Register on July 

### 15, 2012. Copies ofthe Notice of Public Hearing, Regulatory Impact Statements, proposed rules, and summary ofthe proposed rules were made available to those interested and are available today.

As you came in, you were given an opportunity to fill out a public comment card. We request that everybody fill out a card and indicate ifyou wish to make comments. We will use these cards to maintain a record of people who are interested in the proposed rules and to call upon those who want to make a statement today. To ensure that the hearing is conducted in a fair manner, we will follow these steps:



### 2

### 1. Mr. Jackson, our Hearing Officer, will call on those who have indicated on the cards that they would like to speak, in the general order in which the cards were turned in. When all of the cards have been completed, he will ask ifanyone else would like to make a statement.

2. When your name is called, please approach the table and give your statement. Ifyou have written comments or materials that you would like to present, please hand them to Mr. Jackson as you come to the table. Before you begin your comments, please state your name and any group or association you may represent.

Note: The hearing officercan decide before the hearing ifItem 3 and the following paragraph can be deleted due to fewpeople in attendance.



### 3. Each person will be given five minutes to make their comments. Mr. Jackson will indicate to you when you have one minute left. At that time, please begin wrapping up your comments and end within the allotted time. If need be, Mr. Jackson will indicate when your time has ended. If you need additional time to complete your statement, your name will be added to the end of the list for those wishing to speak, and you will be called upon a second time to complete your statement.

We ask everyone to be courteous and respectful to one another during this public hearing.

How the Information Will be Used



### This hearing is being recorded and your comments will become a part ofthe information that the Department will consider when making its decision on the proposed rules. The public comment period for the proposed rules ends today at 5:00 p.m. Any and all comments received by 5:00 p.m. today will be considered when the Department makes its decision.
Following the public hearing, we will review all of the comments and prepare an Agency Report, which includes the response to comments. The Agency Report will be available
on the Department's website or by contacting the Air Quality Division office. The proposed rules and the Agency Report will be submitted to the State Office of Administrative Hearings and Rules and the Joint Committee on Administrative Rules. Once approved, the rules will be filed with the Secretary of State and become effective immediately. It is estimated that this process will take approximately two months to complete.

Thank you Carrie. Iwill now begin calling the names of those who have indicated that they would like to make a statement.

Closing Statement



### 3Thank you for your comments and cooperation. We appreciate that you have shown an interest in these proposed rule revisions by taking the time to be here today.

As previously mentioned, the public comment period ends today at 5:00p.m.

If you have any questions regarding the proposed rule, Air Quality Division staffwill be available immediately following this hearing to answer them.

The hearing is now closed. Thank you again.

(NOTE: If no one present hearing may be closed at 1 hour mark.)



### 4

### MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY AIR QUALITY DIVISION

PROPOSED AMENDMENTS TO AIR POLLUTION CONTROL RULES ORR 2011-012 EQ, ORR 2011-031 EQ, ORR 2011-035 EQ, ORR 2011-036 EQ

SUBJECT

The Department of Environmental Quality (DEQ), Air Quality Division (AQD), is proposing to amend administrative rules under the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (MCL 324.101 to 324.901 06), by amending the following: Part 1, General Provisions, rules R 336.1116, R 336.1119, and R 336.1122; Part 6, Emission Limitations and Prohibitions

- Existing Sources of Volatile Organic Compound Emissions, ruleR 336.1618; Part 18, Prevention of Significant Deterioration ofAir Quality, rules R 336.2801, R 336.2803, R 336.2809, and R 336.2816, and; Part 19, New Source Review for Major Sources Impacting Nonattainment Areas, rules R 336.2901, R 336.2903, and R 336.2908.

PURPOSE FOR THE PROPOSED RULES AND BACKGROUND

Part 1 revisions The revisions to R 336.1116 and R 336.1119 (e) to address fine particulate matter (PM2
.5) 

### and revise the definition of PM 10 

### are necessary for the United States Environmental Protection Agency (USEPA) to approve the DEQ's permitting rules. A
new fine particulate standard, PM2
.5, 

### has been set by the USEPA and new significance levels and definitions are being added to these rules.

R 336.1122 

### (f), the definition of "Volatile Organic Compound" (VOC) is being modified. The definition contains a list of compounds with negligible reactivity in the formation of

ozone. The DEQ periodically updates this definition to conform to the list in the USEPA's VOC definition.

Part 6 revision The purpose ofthe revisions toR 336.1618 is to clarify the type of asphalt materials that

are subject to the rule. Existing R 336.1618 prohibits the use of cutback asphalt for paving or patching of roads during the ozone season, which is May 1 - September 30.

The rule has been in place since the early 1980s. Over the years, the asphalt road paving and patching industry has evolved such that the asphalt materials being used today have some differences from those used when R 336.1618 was originally developed. This has led to confusion both by the regulated industry and AQD compliance staff in terms ofwhat materials are subject to the rule and what VOC limits apply. The proposed changes more clearly define the kind of asphalt materials subject to the rule. The asphalt user's revisions are not expected to result in additional emissions reductions except for those sources that are exceeding the industry norm of VOC content for the affected materials.Part 18 revisions Revisions toR 336.2801, R 336.2803, R 336.2809 and R 336.2816 to address PM2

_ 5 and ozone precursors are necessary for the USEPA to approve the DEQ's permitting rules. PM2

_ 5 is a new National Ambient Air Quality Standard (NAAQS) for which new emission thresholds, ambient increments, and definitions are being added to the rules. Oxides of nitrogen are a precursor of ozone and need to be added to the Prevention of Significant Deterioration (PSD) rules.

All of these changes adopt language strictly from federal regulations, updating our rules in order to maintain the USEPA's approval of our major source New Source Review State Implementation Plan.

Part 19 revisions Revisions to rules R 336.2901, R 336.2903 and R 336.2908 to address PM 2

_ 5 are necessary for the USEPA to approve DEQ's permitting rules. PM2
.5 is a new NAAQS for which new emission and ambient thresholds and definitions are being added to the rules.



### SUMMARY OF THE PROPOSED RULES

Part 1 revisions R 336.1116 is being revised by adding the definition of PM2
.5, including condensable emissions in the definition of PM 10, and changing the definition of chemical process plant.

The existing definition in R 336.1119 (e) for "Significant" is being revised to add a significance threshold for the new PM2
.5 pollutant.

R 336.1122 (f) is being revised to amend the existing definition of "Volatile Organic Compound" by adding five compounds to the list of compounds with negligible reactivity in the formation of ozone.

Part 6 revision R 336.1618 prohibits the manufacture, mixing, storage, use, or application of cutback paving asphalts during the ozone season for the purpose of reducing VOC emissions into the air. The revisions toR 336.1618 redefine the asphalt materials subject to the prohibition from use. This is done through definitions added to the rule defining "asphalt," "cutback paving asphalt," and "emulsified paving asphalt," and the addition of emulsified paving asphalt to the applicability portion of the rule. Also included is a VOC limit for defining applicable materials and a test method for determining VOC content. Recordkeeping requirements also have been added to the rule.

Part 18 revisions R 336.2801 is being revised by amending several definitions to reflect changes in federal PSD regulations to include the new PM 2

_ 5 standard. R 336.2801(c)(i) defines baseline areas for PM 10, PM2

_ 5 and PM2
.5 precursors (sulfur dioxide and nitrogen dioxide). R 336.2801(aa)(ii) and R 336.2801(cc)(iv) add oxides of nitrogen as a precursor for ozone. R 336.2801 (bb)(i) and (ii) add the baseline dates for major and minor PM2.5 sources. R 336.2801(nn)(i) adds the PM2

_ 5 precursors of sulfur dioxide and

### nitrogen dioxide and oxides of nitrogen as a precursor for ozone to the definition of regulated new source review pollutants. R 336.2801 (qq)(i) defines "significant" for the net emission increases for PM 2
.5 

### precursors (sulfur dioxide and nitrogen dioxide) and

ozone precursors (oxides of nitrogen).

R 336.2803 modifies the ambient air increment maximum allowable increases to add those for the annual and 24-hour PM 2

_ 5 

### NAAQS for Class I, Class II and Class Ill areas.

R 336.2809 modifies the rules to allow exemptions for minimal air quality impacts for

new sources that are below the threshold for the 24-hour PM2
.5 

### standard and adds oxides of nitrogen above the threshold for ozone.

R 336.2816 modifies the rules for additional requirements in Class I areas by indicating maximum allowable increases from the minor source baseline concentration for the annual and 24-hour PM2
.5 

### standards.

Part 19 revisions R 336.2901 (ee) defines "regulated new source review pollutant" and adds PM2
.5 

### to the list of pollutants included.

R 336.2901 (gg) (i) defines "significant" and adds the net emission increases for PM 2

.5 

### precursors (sulfur dioxide and nitrogen dioxide).

R 336.2903 adds the PM2

_ 5 

### concentration values for the annual and 24-hour averaging times that would be considered a significant impact in a PM2
.5 

### nonattainment area.

R 336.2908 is modified to include PM2
.5 

### precursors in requirements for major stationary

sources and major modifications in nonattainment areas.



### ACTIONS FOLLOWING THE PUBLIC HEARING

Following the public hearing, the AQD staffwill review the comments received and make appropriate changes to the proposed rules. The proposed rule package will then be submitted to the Office of Regulatory Reinvention, the Legislative Service Bureau, and the Joint Committee on Administrative Rules as prescribed by the Administrative Procedures Act, 1969 PA 306, as amended. Next, the rules will go into effect immediately after filing with the Secretary of State's office.

The final rules will be submitted to the USEPA as a revision to the State Implementation Plan.

Prepared by: Robert Irvine, Supervisor Strategy Development Unit Air Quality Evaluation Section Air Quality Division, DEQ July 31, 2012UN!Tf'fl STI\ IT'.S EN\IIHONMHffAL PfWTEGT!ON AGENCY liEGIONl>

Carrie Barr Air Quality Division ll WES I ,JIIGI<c;ON fl0UU:VAI1D CHICt\GD, IL 1>0601-:3[)!)0



# JUL 3 12012

Michigan Department ofEnvironmental Quality P.O. Box 30260 Lansing, Michigan 48909

Dear Ms. Ban:

We have reviewed the draft amendments to the prevention ofsignificant deterioration (PSD) rules from the Michigan Department ofEnvironmental Quality (MDEQ). We have the following comments, specilic to the explicit identification ofnitrogen oxides (NOx) as a precursorto

ozone, consistent with EPA's "Final Rule to Implement tl1e 8-Hour OzoneNational Ambient Air Quality Standard- Phase 2; Final Rule to Implement Certain Aspects ofthe 1990 Amendments Relating to New Source Review and Prevention ofSignificant Deterioration as They Apply in Carbon !v!onoxide, Particulate Maller, and Ozone NAAQS; Final Rule for Refommlated Gasoline" (Phase 2 Rule).

TI1e Phase 2 Rule obligated states, including Michigan, to revise their PSD programs to explicitly identifY NOx as a precursorto ozone. Thisrequirement, codified in 40 CFR 51.I66 and 40 CFR 52.21, consisted ofthe following:

40 CFR 51.166 (b)(l)(ii): A 1111\ior source that is major for volatile organic compounds

orNOx shall be considered major for ozone;

40 CFR 51.166 (b)(2)(ii): Any significant emissions increase (as defined at paragraph (b)(39) ofthis section) from any emissions units or net emissions increase (as defined in paragraph (b)(3) ofthis section) at a major stationary source that is significant for volatile organic compounds or NOx shall beconsidered significantfor ozone;

40 CFR 51.166 (b)(23)(i): Significantmeans, in reference to a netemissions increase or the potential ofa source to emit any ofthe following pollutants, a rate ofemissions that would equal or exceed any ofthe following rates:

Ozone: 40 tons per year ofvolatile organic compounds or nitrogenoxides;40 CFR 51.166 (b)(49)(i): Anypollutant for which a national ambient air quality standard has been promulgated and any constituents orprecursors for such pollutants identified by the Administrator (e.g., volatile organic compounds andNOx) are precursors for ozone; and

40 CFR51.166 (i)(S)(i)(e) footnote 1: No de minimis air quality level is provided for

ozone. However, any net emissions increase of 100 tons per year or more ofvolatile organic compounds or nitrogen oxides subject to PSD would berequired to perform an ambient impact analysis, including the gathering ofairquality data.

EPA observes that MDEQ'sMay 8, 2012, draft PSD regulations contain revisions addressing each ofthe Phase 2 Rule'srequirements, exceptfor the requirement associatedwith 40 

### CFR 51.166(b)(23)(i). Thedefinition of"Significant" includes 40 tons per year or more ofvolatile organic compounds orNOx. We recommend that MDEQ revise the definition contained in R 336.2801 (qq) (i) (G) to read: "Inreference to a net emissions increase orthe potential ofa source to emit any ofthe following pollutants, a rate ofemissions that would equal or exceed any ofthe following pollutant emission

rates: Ozone: 40 tonsperyear ofvolatile organic compounds ornitrogen oxides."

Ifyou have further questions, please contactAndy Chang, ofmy staff, at (312) 886-0258.

Sincerely,

Douglas Aburano Chief Attainment Planning and Maintenance Section

### PublicHearing Comments and AQD Response

During the public comment period and after the public hearing no comments were received from the industry or any concerned citizen, except EPA.

After the Public Hearing the following comments were received from EPA:

The U.S. EPA submitted a comment suggesting adding the tetm "or nitrogen oxides" as an ozone precursor along with volatile organic compound in R 336.280l(qq)(i)(G).

AQD Response: The AQD agrees with this change. A similar change has been made in otherplaces in this patt, but was missed in R 336.280l(qq)(i)(G).

# ATTACHMENT GAgency Repmt to the JOINT COMMITTEE ONADMINISTRATIVERULES

This form must be completed by the department/agency that has the statutory authority for promulgating the rules. Please send an electronic copy ofthis form to the Office ofRegulatory Reinvention at orr@michigan.gov. The ORR will review the document, the newspaper advertisements, and the corresponding rules priorto completing the legal certification ofthe rules. Please be sure to send to the ORR proofs ofpublication for the three newspaper advertisements required by MCL 24.242(1). You may mail them or send them as a scanned attachment.

Title ofrules: 

# IPart 18. Prevention ofSignificantDeterioration ofAir Quality

1. Name, address, FAX and phone numbers ofagency contact person: Bob Irvine, 517-373-7042 or irviner@michigan.gov Mary Maupin, 517-373-7039 ormaupinm@michigan.gov AQD, DEQ, Constitution Hall, 3'd Floor North, 525 WestAllegan Street, Lansing, MI 48933 Fax: 517-373-1265

2. Pur ose for the ro osed rules and back round: To modifY the existing language in R 336.280I, R 336.2803, R 336.2809, and R 336.2816 to be consistent with the federal re uirements.



### 3. Summary ofproposed rules: ModifY existing language in R 336.2801, R 336.2803, R 336.2809, and R 336.2816 to be consistent with the federal requirements for the Prevention ofSignificant Deterioration of

### Air Quality, Title 40 ofthe Code ofFederal Regulations, Section 51.166.

4. Nameofnewspapers and date ofpublication in newspapers (minimum 3
newspapers ofgeneral circulation, representing different parts ofthe state, one of which must be located in theU erPeninsula : 

### The MiningJoumal, July 9, 2012; 

### The OaklandPress, July 9, 2012; and 

### LansingState Joumal, Jul 9,2012.

### 5. Time, date, location and duration of ublic hearin Au ust 9, 2012; 9:30amto 10:00 am.

6. 

### Dateof ublication ofrules and August I, 2012.

7. Agency representative(s) attending hearing (include agency name and title of representative[s]): Vince Hellwig, Chief, AQD; Bob Irvine, AQD; MaryMaupin, AQD; Asad Khan, AQD; Carrie Barr, Rule Liaison, AQD; Mike Jackson, Chief, Administration Section, AQD; and Dave Fiedler, Regulatory Affairs Officer, DEQ.

None.

The United States Enviromnental Protection Agency (U.S. EPA) submitted a comment

su estin a sli htrevision toR 336.2801.

The U.S. EPA submitted a comment suggesting adding the term "or nitrogen oxides" as an ozone precursor along with volatile organic compound in R 336.280l(qq)(i)(G).

AQD Response: The AQD agrees with this change. A similar change has been made in other

laces in this art, but was missed in R 336.2801( i G.

Date reportcompleted: 

# ISeptember 10, 2012

(ORR-JCAR May 20II)