# Iowa State Implementation Plan Revision

For the 200 8 Ozone National Ambient Air Quality Standard s

Iowa Department of Natural Resources

Environmental Services Division

Air Quality Bureau

7900 Hickman Rd Suite 1 Windsor Heights , IA 5032 4

DATE

# Table of Contents

Background

................................ ................................ ................................ ................................ ...... 3 Statutory and Regulatory Requirements

................................ ................................ .......................... 5 Section 110(a)(2)(A) Emission limits and other control measures

................................ .............. 5 Section 110(a)(2)(B) Ambient air quality monitoring/data system

................................ ............. 6 Section 110(a)(2)(C) Program for enforcement of control measures

................................ .......... 7 Section 110(a)(2)(D) Interstate transport

................................ ................................ ..................... 8 Section 110(a)(2)(E) Adequate authority and resources

................................ .............................. 9 Section 110(a)(2)(F) Stationary source monitoring system

................................ ....................... 10 Section 110(a)(2)(G) Emergency power

................................ ................................ .................... 11 Section 110(a)(2)(H) Future SIP revisions

................................ ................................ ................ 12 Section 110(a)(2)(I) Nonattainment areas

................................ ................................ ................. 13 Section 110(a)(2)(J) Consultation with government officials; Public notification; PSD and visibility protection

................................ ................................ ................................ .................... 14

Se ction 110(a)(2)(K) Air quality modeling/data

................................ ................................ ....... 16 Section 110(a)(2)(L) Permitting fees

................................ ................................ ......................... 17 Section 110(a)(2)(M) Consultation/participation by affected local entities

.............................. 18 Legal Authority

................................ ................................ ................................ .............................. 19

455B.133 Dut ies.

................................ ................................ ................................ ....................... 19

455B.134 Director

— duties

— limitations.

................................ ................................ .............. 23 567 Iowa Administrative Code Chapters 20

- 29, 31, 33

- 34

................................ ....................... 27 Public Comment & Hearing

................................ ................................ ................................ ........... 28

APPE NDICES

................................ ................................ ................................ ............................... 29 Appendix A: Iowa’s 2008 Ozone NAAQS Adoption

................................ .............................. 30 Appendix B: Rulemaking and Public Participation Process

................................ ..................... 31

2

## Background

The Clean Air Act (CAA) requires the U.S. Environmental Protection Agency (EPA) to set National Ambient Air Quality Standards (NAAQS) for specific pollutants known as criteria pollutants. The law also requires EPA to periodically review and update the standards as

necessary to e nsure they provide adequate health and environmental protection.

Each time EPA establishes a new or revises an existing NAAQS each state must adopt and submit a State Implementation Plan (SIP) for the implementation, maintenance, and enforcement

of that NAAQS. The SIP must demonstrate that the state meet s the requirements of each applicable element of Section 110(a)(2) of the CAA. Since many of these elements pertain t o the

basic infrastructure of air quality management programs, such as having the nec essary legal authority and adequate resources, this SIP is often referred to as an “Infrastructure SIP.” The Infrastructure SIP is required by Section 110(a)(1) of the CAA and is due three years after any NAAQS is added or revised.

The ozone NAAQS was re vised on March 12 , 2008. 1 The ozone NAAQS began as a total photochemical oxidant standard in 1971. In 1979 the standard changed to ozone and was not revised again until 1997. In the 200 8 NAAQS revision the standard was lowered from 0.08 parts per millio n (ppm) to 0.075 ppm per 8

- hour average concentration. This decision was based upon the latest review of available scientific information linking health effects to ozone concentrations.

Instead of finalizing designations, o n September 16, 2009, EPA ann ounced it would reconsider

the 2008 ozone NAAQS . The infrastructure SIP submission was delayed from the March 2011 deadline to an anticipated deadline of three years following the completion of the 2008 ozone NAAQS reconsideration process. The proposed r evision was issued on January 6, 2010 and proposed a level within the range of 0.060

- 0.070 ppm. EPA anticipated finalizing the proposal by July 2011. EPA withdrew the rulemaking on September 2, 2011, based on comments by

President Obama. EPA will work i nstead on reviewing and potentially revising the 2008 ozone NAAQS as part of a periodic NAAQS review required by the CAA.

Following the President’s request to withdraw the reconsideration of the 2008 ozone NAAQS

EPA moved forward with the ozone designations process. The entire state of Iowa is designated

as Unclassifiable/Attainment for the 2008 8

- hour ozone NAAQS. The designation was published in the Federal Register on May 21, 2012 (77 FR 30088) and became effective July 20,

2012.

This doc ument is organized by addressing each pertinent section of CAA section 110 (a)(2) requirements and the DNR’s legal authorities and administrative rules. The appendices at the end of the document provide additional information on the administrative rule ad options for this

1 The revision date is defined as the promulgation date. Promulgation occurs when a NAAQS revision is signed by the EPA administrator and publicly disseminated. The final rule was signed on March 12, 2008. It was published on March 27, 2008, in 73 FR 16436. The effective date wa s May 27, 2008.

3SIP, the administrative rule process, public hearing information and the response to public

comments.

This SIP revision demonstrates that the DNR has the necessary plans, programs, and statutory authority to implement the requirements o f Section 110 of the CAA as they pertain to the 2008 ozone NAAQS . Under the current SIP and Iowa Code 455B.133 the state has the necessary infrastructure, resources

, and general authority to implement the 2008 ozone NAAQS

.

4

## Statutory and Regulatory Requir ements

**Section 110(a)(2)(A) Emission limits and other control measures**

“(A) include enforceable emission limitations and other control measures, means, or techniques (including economic incentives such as fees, marketable permits, and auctions of emissio ns rights), as well as schedules and timetables for compliance, as may be necessary or appropriate to meet the applicable requirements of this chapter;” (42 USC 7410(a)(2)(A)) 2

The DNR fulfills the requirements of 110(a)( 2)(A) through Iowa law, administrative rules, permits, and consent orders. The DNR is the designated agency to prevent, abate, or control air pollution (Iowa Code 455B.132). The Environmental Protection Commission (EPC) is the governing commission for th e environmental services portion of the DNR (Iowa Code 455A.6).

The EPC has the duty and authority to develop plans for the abatement, control, and prevention of air pollution, which includes emission limits and schedules for compliance. The EPC is required to adopt, amend

, or repeal rules as necessary to obtain approval of the state implementation plan (SIP) under section 110 of the federal C AA . Further, the EPC is charged with adopting, amending, or repealing ambient air quality standards neces sary to protect the public health and welfare. EPC also shall adopt, amend or repeal emissions limits relating to the maximum quantities of air contaminants that may be emitted from an air contaminant source (Iowa Code 455B.133(1

- 4)).

Administrative ru les establish procedures for compliance with emission limits and variance provisions (567 Iowa Administrative Code (IAC) Chapter 21). The 200 8 National Ambient Air Quality Standard s (NAAQS) for ozone was adopted by the EPC into 567 IAC Chapter 28 and

beca me effective on November 11, 2009. ( Appendix A ). The DNR has an established process for performing administrative rulemakings (Appendix B).

Iowa has statutory and regulatory authority to establish additional emissions limitations and other

measures, as necessary to address attainment and maintenance of the ozone standard. The Iowa SIP adequately addresses the requirements of section 110(a)(2)(A) for the 200 8 ozone NAAQS. Specific emissions limits or other control measures necessary to resolve ozone non attainment or monitored NAAQS violations are not part of and thus are not included in the infrastructure SIP.

2 The Clean Air Act was incorporated into the United States Code as Title 42, Chapter 85. More information about the Clean Air

Act is available at http://www.epa.gov/air/caa/

.

5

### Section 110(a)(2)(B) Ambient air quality monitoring/data system

“(B) provide for establishment and operation of appropriate devices, methods, systems, and procedures necessary to

— (i) monitor, compile, and analyze data on ambient air quality, and (ii) upon request, make such data available to the Administrator;” (42 USC 7410(a)(2)(B))

The DNR ambient air quality monitoring program meets the requirements of 110(a)(2)( B ) . The Iowa Code requires the DNR Director to monitor air quality (455B.134(4)). Ambient air monitoring is implemented with agreements with the University of Iowa’s State Hygienic Laboratory, the Linn County Local Program, and the Polk County Local Program. The ambient air quality monitoring program collects air monitoring data, quality assures the results, and reports the data. DNR submits an annual monitoring network plan to EPA for approval, including plans for its ozone m onitoring network, as required by 40 CFR 58.10. Prior to submission, Iowa provides the plans for public review on DNR’s web site at http://www.iowadnr.gov/InsideDNR/R egulatoryAir/MonitoringAmbientAir.aspx

.

The DNR operates monitors in the largest metropolitan statistical areas, 3 monitors to measure background concentrations, and transport (Figure 1). Iowa is currently in attainment with the

200 8 ozone standards.

Figure 1. 2011 Iowa O zone Monitoring Network

.

3 Maximum ozone concentrations are typically measured downwind of a metropolitan statistical area (MSA) . The

site intended to record the maximum ozone co ncentration resulting from a given MSA may be located outside the

MSA boundaries.

6

### Section 110(a)(2)(C) Program for enforcement of control measures

“(C) include a program to provide for the enforcement of the measures described in subparagraph (A), and regulation of the modification and construction of any stationary source within the areas covered by the plan as necessary to assure that national ambient air quality standards are achieved, including a permit program as required in parts C and D of this subchapter;” (42 USC 7410(a)(2)( C))

Iowa statute requires the DNR to enforce the requirements of control measures necessary to meet the requirements of Section 110(a)(2)(C). The EPC approves administrative rules that establish the schedule or range of civil penalties (Iowa Code 455B.10 9, 567 IAC Chapter 10). The DNR

Director has the duty and authority to issue orders consistent with administrative rules to control air pollution or ensure compliance with permit conditions (Iowa Code 455B.134(9); 455B.138).

The State of Iowa may seek ju dicial review and legal action to enforce the rules and regulations (Iowa Code 455B.140

- 141). Criminal penalties may also be sought by the State of Iowa (Iowa Code 455B.146A).

The DNR’s compliance program has staff in both the central office and six fiel d offices to ensure that industry, businesses, institutions

, and individuals are in compliance with state and federal air quality regulations.

DNR is required to implement a SIP approved pre

- construction permit and prevention of significant deterioratio n (PSD) program ( Iowa Code 455B.133(6); 37 FR 10842, 50 FR 37176,

and 72 FR 27056)

. The pre

- construction permit program reviews design and performance objectives for sources of air contaminants to determine their likely compliance with state and

federal r equirements. New facilities must be designed to meet emissions standards and shall not cause or contribute to a violation of ambient air quality standards. DNR is prohibited from issuing a permit if the project would result in violation of emission limit s or other provisions in the SIP (567 IAC Chapters 22

- 23 and 33).

The DNR also is required to implement a fully approved operating permit program (Iowa Code 455B.133(8), 567 IAC Chapter 22) which is commonly known as Title V. A Title V facility,

also referred to as a major stationary source of air pollutants , is a facility that has the potential to emit 100 tons per year (tpy) or more of any air pollutant subject to regulation ; or the potential to emit 10 tpy or more of any indiv i dual hazardous air pollutant; the potential to emit 25 tpy or more of any combination of hazardous air pollutants ; or the potential to emit equal to or greater
than 100,000 tpy CO2e, and 100 tpy GHGs mass basis

.

A Title V operating permit incorporates in to one document all of the pre

- construction permit s and state and federal regulatory requirements of the air quality program for each facility that is a major source of air pollution. The operating permit includes provisions describing how compliance with each requirement will be maintained on a continuous basis. Facilities are required to provide semi

- annual emissions monitoring reports and an annual compliance certification report. The Title V operating permit provides a comprehensive review of a

facil ity’s requirements under the Act.

7

### Section 110(a)(2)(D) Interstate transport

“(D) contain adequate provisions

— (i) prohibiting, consistent with the provisions of this subchapter, any source or other type of emissions activity within the State from emit ting any air pollutant in amounts which

will

— (I) contribute significantly to nonattainment in, or interfere with maintenance by, any other State with respect to any such national primary or secondary ambient air quality standard, or (II) interfere with measures required to be included in the applicable implementation plan for any other State under part C of this subchapter to prevent significant deterioration of air quality or to protect visibility, (ii) insuring compliance with the applicable requireme nts of sections 7426 and 7415 of this title (relating to interstate and international pollution abatement);” (42 USC 7410(a)(2)(D))

Iowa will address Section 110(a)(2)(D)(i)(I) in a manner consistent with the D

. C

. Circuit Court of Appeal’s decision in EME Homer City Generation, L.P v

. EPA

, No. 11

- 1302, issued August 21, 2012

.

The visibility requirements of section 110(a)(2)(D)(i)(II) are being addressed under the regional haze program . The DNR submitted the initial regional haze SIP to EPA in March 2008.

The Department’s implemen tation of the SIP approved pre

- construction review and PSD

program prevents source emissions in Iowa from interfering with any other state’s part C program ( as required by 110(a)(2)(D)(i)(II)) and fulfills the notification requirements of section 110(a)(2)(D)(ii).

8

### Section 110(a)(2)(E) Adequate authority and resources

“(E) provide (i) necessary assurances that the State (or, except where the Administrator deems inappropriate, the general purpose local government or governments, or a regional agency designated by the State or general purpose local governments for such purpose) will have adequate personnel, funding, and authority under State (and, as appropriate, local) law to carry out such implementation plan (and is not prohibited by any prov ision of Federal or State law from carrying out such implementation plan or portion thereof), (ii) requirements that the State comply with the requirements respecting State boards

under section 7428 of this title, and (iii) necessary assurances that, where the State has relied on a local or regional government, agency, or instrumentality for the implementation of any plan provision, the State has responsibilit y for ensuring adequate implementation of such plan provision;” ( 42 USC 7410(a)(2)(E))

The DNR has adequate personnel, funding

, and authority to fulfill the requirements of the SIP.

Detailed information o n authority is listed above in the portion on Section 110(a)(2)(A). There are no legal impediments to implementing the 200 8 ozone NAAQS. The program’s budget is funded by the State General Fund, the State Environment First Fund, EPA grant s authorized

under C AA section 103 and 105, and Title V fees. More information on Title V fees is provided

under CAA Section 110(a)(2)(L). EPA conducts periodic program reviews to ensure that the state has adequate resources and funding to implement the SIP.

As indicated earlier, the EPC was established in Iowa Co de 455A.6. Members of the EPC must comply with ethics, gift restrictions, and conflict of interest requirements as outlined in Iowa law (Iowa Code 68B, 69). The Governor’s Office provides annual training to new board and commission members to explain the requirements.

DNR has delegated the duties for the abatement, control, and prevention of air pollution to the Linn County Health Department Air Quality Division and the Polk County Public Works Air Quality Division , for each of their respective counties (Iowa Code 455B.144

- 146)

. Linn County and Polk County programs were initially approved into the SIP in 1989 (54 FR 33526, 54 FR 33528).

DNR and the Linn & Polk County Local Programs annually negotiate and sign comprehensive letters of agreement or contra cts. Program emphasis is placed on the collection and assessment of information regarding air quality, the permitting of sources of air emissions, the enforcement of emission limits and the attainment and maintenance of ambient air quality standards. Fun ding for activities in the scope of work under each contract is paid for by a portion of the DNR’s EPA grants under section s 103 and 105 of the C AA

, and Title V fees. DNR conducts biennial program reviews.

9

### Section 110(a)(2)(F) Stat **ionary source monitorin g system** 

“(F) require, as may be prescribed by the Administrator

— (i) the installation, maintenance, and replacement of equipment, and the implementation of other necessary steps, by owners or operators of stationary sources to monitor emissions from such sources, (ii) periodic reports on the nature and amounts of emissions an d emissions

- related data from such sources, and (iii) correlation of such reports by the State agency with any emission limitations or standards established pursuant to this chapter, which reports shall be available at reasonable times for public inspecti on;” (42 USC 7410(a)(2)(F))

Administrative rules (567 IAC Chapter 25) provide detailed requirements for owners or operators of stationary sources to monitor emissions. Stack testing observation (Iowa Code 455B.134(4)) ensures the quality of emissions data. The data quality may be assured through field test audits and reviewing test reports. The field audits consist of making sure the correct methodology is followed, approving on

- site variations, ensuring the tested emission so urce is operating in an acceptable manner, and answering questions posed by the testing group and the facility. The report review verifies the test results by checking the calculations and lab analysis. A stack test summary is generated and the compliance status of the emission point is determined.

DNR also receives and reviews annual compliance certification s and semi

- annual monitoring reports required under the Title V program (Iowa Code 455B.133(8), 567 IAC Chapter 22). Information collected though emi ssion inventories are submitted to EPA in accordance with the federal Air Emissions Reporting rule.

Iowa uses this information to track progress towards maintaining the NAAQS, developing control and maintenance strategies, identifying sources and general emission levels, and determining compliance with emission regulations and additional EPA requirements. The reports are available to the public at the DNR’s Records Center during normal business hours with some reports available electronically. DocDNA is the DNR’s electronic records system for many public records. A link to DocDNA and the access information is on our website at hww.iowadnr.gov/InsideDNR/RegulatoryA ir/PublicRecordsAirQuality.aspx . The information is at the bottom of the page under Online Searches, and DocDNA.

10

### Section 110(a)(2)(G) Emergency power

“(G) provide for authority comparable to that in section 7603 of this title and adequate contingency plans to implement such authority;” (42 USC 7410(a)(2)(G))

The DNR Director has the authority to issue an emergency order if any person is causing air pollutio n which requires immediate action to protect public health and safety (Iowa Code 455B.139). Administrative rules (567 IAC Chapter 26) have been developed to prevent the excessive buildup of air contaminants and have been previously approved into the SIP ( 74 FR 68761).

11

### Section 110(a)(2)(H) Future SIP revisions

“(H) provide for revision of such plan

— (i) from time to time as may be necessary to take account of revisions of such national primary or secondary ambient air quality standard or the availabilit y of improved or more expeditious methods of attaining such standard, and (ii) except as provided in paragraph (3)(C), whenever the Administrator finds on the basis of information available to the Administrator that the plan is substantially inadequate to attain the national ambient air quality standard which it implements or to otherwise comply with any additional requirements established under this chapter;” (42 USC 7410(a)(2)(H))

Iowa is required to adopt, amend

, or repeal rules pertaining to the evaluation, abatement, control

, and prevention of air pollution which may be necessary to ensure that Iowa complies with section 110 of the federal CAA (Iowa Code 455B.133(2)). This includes a requirement to revise

rules as necessary to respond to a revised NAAQS and to respond to EPA findings of substantial inadequacy.

12

### Section 110(a)(2)(I) Nonattainment areas

“(I) in the case of a plan or plan revision for an area designated as a nonattainment area, meet

the applicable requirements of part D of this subchapter (relating to nonattainment areas);” (42 USC 7410(a)(2)(I))

The EPC has the authority to meet the requirements of section 110(a)(2)(I) (Iowa Code 455B.133(1

- 2, 4)).

13

### Section 110(a)(2)(J) Consultation wi **th government officials; Public notification; PSD and visibility protection** 

“(J) meet the app licable requirements of section 7421 of this title (relating to consultation),

section 7427 of this title (relating to public notification), and part C of this su bchapter (relating to prevention of significant deterioration of air quality and visibility protection);” (42 USC 7410(a)(2)(J))

§ 7421. Consultation

“ In carrying out the requirements of this chapter requiring applicable implementation plans to contain

— (1) any transportation controls, air quality maintenance plan requirements or preconstruction review of direct sources of air pollution, or (2) any measure referred to

— (A) in part D of this subchapter (pertaining to nonattainment requirements), or (B) in part C of this subchapter (pertaining to prevention of significant deterioration), and in carrying out the requirements of section 7413 (d) [

... ] of this title (relating to certain enforcement orders), the State shall provide a satisfactory process of consultation with general purpose local governments, desig nated organizations of elected officials of local governments and any Federal land manager having authority over Federal land to which the State plan applies, effective with respect to any such requirement which is adopted more than one year after August 7 , 1977, as part of such plan. Such process shall be in accordance with regulations promulgated by the Administrator to assure adequate consultation. The Administrator shall update as necessary the original regulations required and promulgated under this se ction (as in effect immediately before November 15, 1990) to ensure adequate consultation. Only a general purpose unit of local government, regional agency, or council of governments adversely affected by action of the Administrator approving any portion o f a plan referred to in this subsection may petition for judicial review of such action on the basis of a violation of the requirements of this section. ” (42 USC 7421)

DNR has the duty and authority and resources to meet the requirements of section 7421

i ncluding consultation for transportation controls, air quality maintenance plan requirements, or preconstruction review. The DNR also is required to provide a satisfactory process of consultation with local government, designated organizations of elected officials of local governments such as council of governments, and applicable federal land managers to carry out the consultation requirements of section 7421 (455B.133(1,4)).

The DNR provides a copy of a PSD permit to EPA prior to the start of the public comment process. Public notifications of proposed PSD projects are published in the Des Moines Register’s Legal Publications and in the legal publication section of the newspaper with the largest circulation in the area of the PSD source. The notificati on contains the notice of application; preliminary determination; degree of increment consumption; opportunity for comment at a public hearing as well as written comment. A copy of the notice of public comment is then sent to the applicant; the regional E PA office, the DNR Field Office; and

14officials and agencies having an interest in the proposed construction. Examples of such officials and agencies include but are not limited to the following: chief executives of the city and county (i.e. mayor, city ad ministrator, board of supervisors, health department); any comprehensive regional land use planning agency; state or federal land manager and any Indian governing body whose lands may be affected by the emissions from the source or modification (567 Chapte r 33.3(17)).

§ 7427. Public notification

“ (a) Warning signs; television, radio, or press notices or information
Each State plan shall contain measures which will be effective to notify the public during any calendar 4 on a regular basis of instances or areas in which any national primary ambient air quality standard is exceeded or was exceeded during any portion of the preceding calendar year to advise the public of the health hazards associated with such pollution, and to enhance public awareness of the measures which can be taken to prevent such standards from being exceeded and the ways in which the public can participate in regulatory and other efforts to improve air quality. Such measures may include the posting of warning signs on interstate highway access points to metropolitan areas or television, radio, or press notices or information. ” (42 USC 7427(a))

DNR has the duty, authority, and resources to meet the requirements of section 7427 (a) to notify the public regarding exceedances of the NAAQS wh ich include public awareness measures which can be taken to prevent exceedances (455B.133(2), 455B.134(7)). The DNR utilizes press

release s , online reports, and list serves to notify the public of exceedances. Awareness messages

are included in these out reach methods as well as in public meetings.

DNR holds quarterly air quality client contact meetings to focus on current and upcoming air program issues and changes. The meetings provide an open forum for stakeholders and the general public to discuss n ew state and federal air quality rules or air program developments and are a good source of information for anyone who works with or has an interest in activities related to air quality.

The DNR’s Environmental Services Division (ESD) holds a monthly cl ient contact group meeting prior to the EPC meetings. The ESD client contact group is an open forum to discuss issues related to all of the department's environmental programs.

4 So in original. Probably should be “calendar year”. ( http://www.law.cornell.edu/uscode/html/uscode42/usc_sec_42_00007427

---- 000

- .html#FN

- 1 )

15

### Section 110(a)(2)(K) Air quality modeling/data

“(K) provide for

— (i) the p erformance of such air quality modeling as the Administrator may prescribe for the purpose of predicting the effect on ambient air quality of any emissions of any air pollutant for which the Administrator has established a national ambient air quality

stan dard, and (ii) the submission, upon request, of data related to such air quality modeling to the Administrator;” (42 USC 7410(a)(2)(K))

The DNR has the authority to conduct air dispersion modeling to comple te an ambient air impact analyse s (Iowa Code 455B.133 (1

- 2)). Air dispersion modeling analyses are used to predict ground level ambient air concentrations of pollutants and compare those levels to ambient air quality standards. DNR is prohibited from issuing a permit if the project would result in or significantly contribute to a violation of the ambient air quality standards (567 IAC 22.3(1)) or other provisions in the federally approved SIP (567 IAC Chapters 22

- 23 and 33).

Air dispersion modeling allows the impacts of the pollution fro m a proposed air pollution source to be determined before a source is constructed or modified. The air dispersion modeling is conducted with an EPA approved model that uses mathematical formulations and information about the source emissions along with th e local terrain and meteorological data to predict pollutant concentrations at locations selected by the user.

Modeling is conducted in accordance with Department’s modeling guidelines and with Appendix

W of 40 CFR Part 51. DNR has the authority to colle ct and report data to EPA, upon request (Iowa Code 455B.134 (5, 7)).

16

### Section 110(a)(2)(L) Permitting fees

“(L) require the owner or operator of each major stationary source to pay to the permitting authority, as a condition of any permit required under this chapter, a fee sufficient to cover

— (i) the reasonable costs of reviewing and acting upon any application for such a permit,

and (ii) if the owner or operator receives a permit for such source, the reasonable costs of implementing and enforcing the terms and conditions of any such permit (not including any court costs or other costs associated with any enforcement act ion),” (42 USC 7410(a)(2)(L))

The Title V progr am requires permit holders to pay a fee sufficient to cover all reasonable direct and indirect costs required to develop and administer the Title V program requirements (42 U.S.C. 7661a). The CAA (Section 50 2(b)(3)(A)) and the C ode of Federal R egulations (40 CFR 70.9) outlines expected Title V program activities and allows states some flexibility in how they design their Title V programs and fee schedules. DNR uses the EPA guid ance
, “Matrix of Title

V

- Relate d and Air Grant Eligible Activities” to determine which program activities are necessary for the development and implementation of a Title V operating permit program (455B.133(8)).

In Iowa, the Title V fee is currently based on the first 4,000 chargeable tons of each regulated air pollutant emitted each year from each major stationary source. No fees are paid for emissions in excess of 4,000 tons of each regulated air pollutant or on carbon monoxide or other pollutants exempt from fee s by IAC 22.100

. Fees are deposited into the air contaminant source fund (Iowa Code 455B.133B).

Each March the D NR presents an estimated or proposed budget to cover the reasonable cost of administering the Title V program to the E PC . Each May the EPC sets the Title V fee. T he

D NR calcu lates the Title V fee by dividing the estimated budget for the upcoming state fiscal

year by the chargeable emissions as reported by facilities each March 31. The annual fee must

be set at o r below the maximum Title V fee , which can be changed through administrative rulemaking (567 IAC 22.106(1)).

17

### Section 110(a)(2)(M) Consultation/participation by affected local
**entities**

“(M) provide for consultation and participation by local political subdivisions affected by the plan.” (42 USC 7410(a)(2)( M))

DNR has delegated authority to Linn County Health Department Air Quality Division and the Polk County Public Works Air Quality Division ( Local Progr ams ) to conduct programs for the abatement, control, and prevention of air pollution in their respective county (Iowa Code

455B.144

- 146)

.

The Local Programs are required to meet all the requirements of 567 IAC Chapter 27 to keep

their status. The Local P rograms issu e permits

, perform compliance inspections

, respond to air quality complaints

, and maintain a network of monitors for ambient air in each respective
county.

The Local Programs have adopted air quality ordinances to implement federal, state, and local air pollution control requirements. The ordinances cannot be less stringent than federal or state standards; however, they can be more stringent. The ordinances are incorporated into the SIP in the same manner that the IAC is incorporated into the SIP.

Each year DNR negotiates an agreement to pass through federal funds and provide Title V funds sufficient to implement the programs. Revenue from local fee systems provides additional funding and required match to a portion of the pass through feder al funds. The contracts are approved by the EPC for each new state fiscal year. DNR conducts biennial audits to ensure the Local Programs are meeting all requirements of the contract.

Both the DNR and the Local Programs’ administrative processes provide a public comment period. The comment period provides an opportunity for other local political subdivisions that may be affected by the plan to comment.

DNR frequently holds public meetings, like the quarterly air quality client contact meetings. T he

op en forum allows stakeholders and the general public to dialogue on a variety of topics. The DNR also communicates using press releases, online reports, and list serves. Rulemakings are also published on the DNR’s website and in the Iowa Administrative Bu lletin.

18

## Legal Authority

The DNR is the primary state agency responsible for protecting the environment, as indicated in the Iowa Code § 455A. The Environmental Protection Commission, established in the Iowa Code § 455A.6, is the governing commission fo r the environmental protection portion of the DNR. The DNR’s authority is provided under Iowa Code § 455B.133 and 455B.134 which are

listed below. Additional information on the Iowa Code is at http://www.legis.iowa.gov/IowaLaw/statutoryLaw.aspx

.



### 455B.133 Duties.

The commission shall:

1. Develop comprehensive plans and programs for the abatement, control, and prevention of air pollution in this state, recognizing varying requirements for different areas in the state. The plans may include emission limitations, schedules and timetables for compliance with the limitations, measures to prevent the significant deterioration of air quality and other measures as necessary to assure attainment and maintenance of ambient air quality standards.

2. Adopt, amend, or repeal rules pertaining to the evaluation, abatement, control, and prevention of air pollution. The rules may include those that are necessary to obtain approval of the state implementa tion plan under section 110 of the federal Clean Air Act as amended through January 1, 1991.

3. Adopt, amend, or repeal ambient air quality standards for the atmosphere of this state on the basis of providing air quality necessary to protect the public he alth and welfare and to reduce emissions contributing to acid rain pursuant to Tit. IV of the federal Clean Air Act Amendments

of 1990.

4. Adopt, amend, or repeal emission limitations or standards relating to the maximum quantities

of air contaminants tha t may be emitted from any air contaminant source. The standards or limitations adopted under this section shall not exceed the standards or limitations promulgated by the administrator of the United States environmental protection agency or the requirements of the federal Clean Air Act as amended through January 1, 1991. This does not prohibit the commission from adopting a standard for a source or class of sources for which the United States environmental protection agency has not promulgated a standard. This also does not prohibit the commission from adopting an emission standard or limitation for infectious medical waste treatment or disposal facilities which exceeds the standards or limitations promulgated by the

administrator of the United St ates environmental protection agency or the requirements of the

federal Clean Air Act as amended through January 1, 1991. The commission shall not adopt an

emission standard or limitation for infectious medical waste treatment or disposal facilities prior to January 1, 1995, which exceeds the standards or limitations promulgated by the administrator

of the United States environmental protection agency or the requirements of the federal Clean

Air Act, as amended through January 1, 1991, for a hospital, or a group of hospitals, licensed under chapter 135B which has been operating an infectious medical waste treatment or disposal facility prior to January 1, 1991.

19a. (1) The commission shall establish standards of performance unless in the judgment of

the comm ission it is not feasible to adopt or enforce a standard of performance. If it is not feasible to adopt or enforce a standard of performance, the commission may adopt a design, equipment, material, work practice or operational standard, or combination of

t hose standards in order to establish reasonably available control technology or the lowest achievable emission rate in nonattainment areas, or in order to establish best available control technology in areas subject to prevention of significant deteriorati on review, or in order to adopt the emission limitations promulgated by the administrator of the United States environmental protection agency under section 111 or 112 of the federal Clean Air Act as amended through January 1, 1991.

(2) If a person establ ishes to the satisfaction of the commission that an alternative means of emission limitation will achieve a reduction in emissions of an air pollutant at least equivalent to the reduction in emissions of the air pollutant achieved under the design, equipme nt, material, work practice or operational standard, the commission shall amend its rules to permit the use of the alternative by the source for purposes of compliance with this paragraph with respect to the pollutant.

(3) A design, equipment, material, work practice or operational standard promulgated under this paragraph shall be promulgated in terms of a standard of performance when it becomes feasible to promulgate and enforce the standard in those terms.

(4) For the purpose of this paragraph, the ph rase “not feasible to adopt or enforce a standard of performance” refers to a situation in which the commission determines that

the application of measurement methodology to a particular class of sources is not practicable due to technological or economic limitations.

b. If the maximum standards for the emission of sulfur dioxide from solid fuels have to be reduced in an area to meet ambient air quality standards, a contract for coal produced in Iowa and burned by a facility in that area that met the sulfu r dioxide emission standards in effect at the time the contract went into effect shall be exempted from the decreased requirement until the expiration of the contract period or December 31, 1983, whichever first occurs, if there is any other reasonable mea ns available to satisfy the ambient air quality standards. To qualify under this subsection, the contract must be recorded with the county recorder of the county where the burning facility is located within thirty days after the signing of the contract.

c

. The degree of emission limitation required for control of an air contaminant under an emission standard shall not be affected by that part of the stack height of a source that exceeds good engineering practice, as defined in rules, or any other dispersion technique. This paragraph shall not apply to stack heights in existence before December 30, 1970, or dispersion techniques implemented before that date.

5. Classify air contaminant sources according to levels and types of emissions, and other characteristics which relate to air pollution. The commission may require, by rule, the owner or operator of any air contaminant source to establish and maintain such records, make such reports, install, use and maintain such monitoring equipment or method s, sample such emissions in

20accordance with such methods at such locations and intervals, and using such procedures as the commission shall prescribe, and provide such other information as the commission may reasonably require. Such classifications may be for application to the state as a whole, or to any designated area of the state, and shall be made with special reference to effects on health, economic and social factors, and physical effects on property.

6. a. Require, by rules, notice of the construct ion of any air contaminant source which may cause or contribute to air pollution, and the submission of plans and specifications to the department, or other information deemed necessary, for the installation of air contaminant sources and related

control e quipment. The rules shall allow the owner or operator of a major stationary source to elect to obtain a conditional permit in lieu of a construction permit. The rules relating to a conditional permit for an electric power generating facility subject to cha pter 476A and other major stationary sources shall allow the submission of engineering descriptions, flow diagrams and schematics that quantitatively and qualitatively identify emission streams and alternative control equipment that will provide compliance with emission standards. Such rules shall not specify any particular method to be used to reduce undesirable levels of emissions, nor type, design, or method of installation of any equipment to be used to reduce such levels of emissions, nor the type, des ign, or method of installation or type of construction of any manufacturing processes or kinds of equipment, nor specify the kind or composition of fuels permitted to be sold, stored, or used unless authorized by subsection 4 of this section.

b. The commi ssion may give technical advice pertaining to the construction or installation of the equipment or any other recommendation.

7. Commission rules establishing maximum permissible sulfate content shall not apply to an expansion of an industrial anaerobic la goon facility which was constructed prior to February 22,

1979.

8. a. Adopt rules consistent with the federal Clean Air Act Amendments of 1990, Pub. L. No.

101

- 549, which require the owner or operator of an air contaminant source to obtain an operating

pe rmit prior to operation of the source. The rules shall specify the information required to be submitted with the application for a permit and the conditions under which a permit may be granted, modified, suspended, terminated, revoked, reissued, or denied. For sources subject to the provisions of Tit. IV of the federal Clean Air Act Amendments of 1990, permit conditions

shall include emission allowances for sulfur dioxide emissions. The commission may impose fees, including fees upon regulated pollutants e mitted from an air contaminant source, in an amount sufficient to cover all reasonable costs, direct and indirect, required to develop and administer the permit program in conformance with the federal Clean Air Act Amendments of 1990, Pub. L. No. 101

- 549. Affected units regulated under Tit. IV of the federal Clean Air Act Amendments of 1990, Pub. L. No. 101

- 549, shall pay operating permit fees in the same manner as other sources subject to operating permit requirements, except as provided in section 408 of the federal Act. The fees collected pursuant to this subsection shall be deposited in the air contaminant source fund created pursuant to section 455B.133B, and shall be utilized solely to cover all reasonable costs required to develop and administer the p rograms required by Tit. V of the federal Clean Air Act Amendments of 1990, Pub. L. No. 101

- 549, including the permit

21program pursuant to section 502 of the federal Act and the small business stationary source technical and environmental assistance program pursuant to section 507 of the federal Act.

b. Adopt rules allowing the department to issue a state operating permit to an owner or operator of an air contaminant source. The state operating permit granted under this paragraph may only

be issued at the r equest of an air contaminant source and will be used to limit its potential to emit to less than one hundred tons per year of a criteria pollutant as defined by the United States environmental protection agency or ten tons per year of a hazardous air pollu tant or twenty

- five tons of any combination of hazardous air pollutants.

c. Adopt rules for the issuance of a single general permit, after notice and opportunity for a public hearing. The single general permit shall cover numerous sources to the extent th at the sources are representative of a class of facilities which can be identified and conditioned by a single permit.

9. Adopt rules allowing asphalt shingles to be burned in a fire set for the purpose of bona fide training of public or industrial employ ees in fire fighting methods only if a notice is provided to the director containing testing results indicating that the asphalt shingles do not contain asbestos. Each fire department shall be permitted to host two fires per year as allowed under this

subs ection.

10. Adopt rules allowing a city to conduct a controlled burn of a demolished building subject to the requirements that are in effect for the proper removal of all asbestos

- containing materials prior to demolition and burning. The rules shall inclu de provisions that a burn site have controlled access, that a burn site be supervised by representatives of the city at all times, and that the burning be conducted only when weather conditions are favorable with respect to surrounding property. For a burn site located outside of a city, the rules shall include a provision that a city may undertake not more than one such controlled burn per day and that a burn site be

limited to an area located at least six

- tenths of a mile from any inhabited building. For burn sites located within a city, the rules shall include a provision that a city may undertake not more than one such controlled burn in every six

- tenths

- of

- a

- mile

- radius circle in each calendar year. The rules shall prohibit a controlled burn of a demoli shed building in Cedar Rapids, Marion, Hiawatha, Council Bluffs, Carter Lake, Des Moines, West Des Moines, Clive, Windsor Heights, Urbandale, Pleasant Hill, Buffalo, Davenport, Mason City, or any other area where area

- specific state implementation plans re quire the control of particulate matter.

[C71, §136B.4; C73, 75, 77, 79, 81, §455B.12; 82 Acts, ch 1124, §1] C83, §455B.133 91 Acts, ch 242, §1; 91 Acts, ch 255, §8; 92 Acts, ch 1163, §87

– 89; 93 Acts, ch 137, §3; 94 Acts, ch 1040, §1; 95 Acts, ch 2, §1; 2002 Acts, ch 1162, §45; 2002 Acts, 2nd Ex, ch 1003, §241, 262; 2004 Acts, ch 1138, §1; 2010 Acts, ch 1061, §180

22

### 455B.134 Director

**— duties** 

**— limitations.** 

The director shall:

1. Publish and administer the rules and standards established by the c ommission. The department shall furnish a copy of such rules or standards to any person upon request.

2. Provide technical, scientific, and other services required by the commission or for the effective administration of this division II and chapter 459, subchapter II.

3. Grant, modify, suspend, terminate, revoke, reissue or deny permits for the construction or operation of new, modified, or existing air contaminant sources and for related control equipment, and conditional permits for electric power gene rating facilities subject to chapter 476A and other major stationary sources, subject to the rules adopted by the commission. The department shall furnish necessary application forms for such permits.

a. No air contaminant source shall be installed, alte red so that it significantly affects emissions, or placed in use unless a construction or conditional permit has been issued for the source.

b. The condition of expected performance shall be reasonably detailed in the construction or conditional permit.

c. All applications for permits other than conditional permits for electric generating facilities shall be subject to such notice and public participation as may be provided by rule by the commission. Upon denial or limitation of a permit other than a cond itional permit for an electric generating facility, the applicant shall be notified of such denial and informed of the reason or reasons therefor, and such applicant shall be entitled to a hearing before the commission.

d. (1) All applications for conditi onal permits for electric power generating facilities shall be subject to such notice and opportunity for public participation as may be consistent with chapter 476A or any agreement pursuant thereto under chapter 28E. The applicant or intervenor may appea l to the commission from the denial of a conditional permit or any

of its conditions. For the purposes of chapter 476A, the issuance or denial of a conditional permit by the director or by the commission upon appeal shall be a

determination that the electr ic power generating facility does or does not meet the permit and licensing requirements of the commission. The issuance of a conditional permit shall not relieve the applicant of the responsibility to submit final and detailed construction plans and drawings and an application for a construction permit for control equipment

that will meet the emission limitations established in the conditional permit.

(2) In applications for conditional permits for electric power generating facilities, the applicant shall quantify the potential to emit greenhouse gas emissions due to the proposed project.

e. A regulated air contaminant source for which a construction permit or conditional permit has been issued shall not be operated unless an operating permit also ha s been issued for the source. However, if the facility was in compliance with permit conditions prior to the requirement for an operating permit and has made timely application for an operating permit, the facility may

23continue operation until the operatin g permit is issued or denied. Operating permits shall contain the requisite conditions and compliance schedules to ensure conformance with state and federal requirements including emission allowances for sulfur dioxide emissions for sources subject to

Tit . IV of the federal Clean Air Act Amendments of 1990. If construction of a new air contaminant source is proposed, the department may issue an operating permit concurrently with the construction permit, if possible and appropriate.

f. (1) Notwithstanding any other provision of division II of this chapter or chapter 459, subchapter II, the following siting requirements shall apply to anaerobic lagoons and

earthen waste slurry storage basins:

(a ) Anaerobic lagoons, constructed or expanded on or after June 2 0, 1979, but prior to May 31, 1995, or earthen waste slurry storage basins, constructed or expanded on or after July 1, 1990, but prior to May 31, 1995, which are used in connection with animal feeding operations containing less than six hundred twenty

- fiv e thousand pounds live animal weight capacity of animal species other than beef cattle or containing less than one million six hundred thousand pounds live animal weight capacity of beef cattle, shall be located at least one thousand two hundred fifty feet from a residence not owned by the owner of the feeding operation or from a public use area other than a public road. Anaerobic lagoons or earthen waste slurry storage basins, which are used in connection with animal feeding operations containing six hundr ed twenty

- five thousand pounds or more live animal weight capacity of animal species other than beef cattle or containing one million six hundred thousand pounds or more live animal weight capacity of beef cattle, shall be located at least one thousand eig ht hundred seventy

- five feet from a residence not owned by the owner of the feeding operation or from a public use area other than a public road. For the purpose of this paragraph the determination of live animal weight capacity shall be based on the avera ge animal weight capacity during a production cycle and the maximum animal capacity of the animal feeding operation.

(b) Anaerobic lagoons which are used in connection with industrial treatment of wastewater where the average wastewater discharge flow is one hundred thousand gallons per day or less shall be located at least one thousand two hundred fifty feet from a

residence not owned by the owner of the lagoon or from a public use area other than a public road. Anaerobic lagoons which are used in connec tion with industrial treatment of

wastewater where the average wastewater discharge flow is greater than one hundred thousand gallons per day shall be located at least one thousand eight hundred seventy

five feet from a residence not owned by the owner of the lagoon or from a public use area

other than a public road. These separation distances apply to the construction of new

facilities and the expansion of existing facilities.

(2) A person may build or expand an anaerobic lagoon or an earthen waste slurry storage basin closer to a residence not owned by the owner of the anaerobic lagoon or to a public use area than is otherwise permitted by subparagraph (1) of this paragraph, if the affected landowners enter into a written agreement with the anaerobic lago on owner to waive the separation distances under such terms the parties negotiate. The written agreement

24becomes effective only upon recording in the office of the recorder of deeds of the county

in which the residence is located.

g. All applications for construction permits or prevention of significant deterioration permits shall quantify the potential to emit greenhouse gas emissions due to the proposed project.

4. Determine by field studies and sampling the quality of atmosphere and the degree of air pollution in this state or any part thereof.

5. Conduct and encourage studies, investigations, and research relating to air pollution and its causes, effects, abatement, control, and prevention.

6. Provide technical assistance to political subdivisions o f this state requesting such aid for the furtherance of air pollution control.

7. Collect and disseminate information, and conduct educational and training programs, relating to air pollution and its abatement, prevention, and control.

8. Consider compla ints of conditions reported to, or considered likely to, constitute air pollution, and investigate such complaints upon receipt of the written petition of any state agency, the governing body of a political subdivision, a local board of health, or twenty

- f ive affected

residents of the state.

9. Issue orders consistent with rules to cause the abatement or control of air pollution, or to secure compliance with permit conditions. In making the orders, the director shall consider the

facts and circumstances be aring upon the reasonableness of the emissions involved, including but not limited to, the character and degree of injury to, or interference with, the protection of health and the physical property of the public, the practicability of reducing or limiting the emissions from the air pollution source, and the suitability or unsuitability of the air pollution source to the area where it is located. An order may include advisory recommendations for the

control of emissions from an air contaminant source and th e reduction of the emission of air

contaminants.

10. Encourage voluntary cooperation by persons or affected groups in restoring and preserving a reasonable quality of air within the state.

11. Encourage political subdivisions to handle air pollution prob lems within their respective jurisdictions.

12. Review and evaluate air pollution control programs conducted by political subdivisions of the state with respect to whether the programs are consistent with the provisions of division II of this chapter and chapter 459, subchapter II, and rules adopted by the commission.

13. Hold public hearings, except when the evidence to be received is confidential pursuant to section 455B.137, necessary to accomplish the purposes of division II of this chapter and chapte r 459, subchapter II. The director may issue subpoenas requiring the attendance of witnesses and

25the production of evidence pertinent to the hearings. A subpoena shall be issued and enforced in

the same manner as in civil actions.

14. Convene meetings not later than June 1 during the second calendar year following the adoption of new or revised federal ambient air quality standards by the United States environmental protection agency to review emission limitations or standards relating to the maximum quant ities of air contaminants that may be emitted from any air contaminant source as provided in section 455B.133, subsection 4. By November 1 of the same calendar year, the department shall submit a report to the governor and the general assembly regarding

re commendations for law changes necessary for the attainment of the new or revised federal

standards.

[C71, §136B.4, 136B.5; C73, 75, 77, 79, §455B.12, 455B.13; C81, §455B.13; 82 Acts, ch 1124, §2, 3] C83, §455B.134 86 Acts, ch 1245, §1899; 90 Acts, ch 1153, §2, 3; 91 Acts, ch 255, §11

- 13; 93 Acts, ch 137, §4; 95 Acts, ch 195, §14; 2007 Acts, ch 120, §2, 3; 2010 Acts, ch 1115, §1; 2011 Acts, ch 25, §49, 50 For regulations establishing separation distances between anaerobic lagoons or earthen manure st orage structures constructed or expanded on or after May 31, 1995, and various locations and objects, see chapter 459 For regulations governing the construction of earthen storage structures within agricultural drainage well areas, see chapter 460

Subsecti on 3, paragraph d, subparagraph (2) amended Subsection 3, paragraph g amended

26

### 567 Iowa Administrative Code Chapters **for Air Quality**

Chapters 20

- 29, 31, and 33

- 34 of 567 Iowa Administrative Code contain the administrative rules that allow for the implemen tation of the relevant air quality laws contained in Iowa statute and the CAA, including Section 110.

• Chapter 20 provides general definitions and rules of practice.

• Provisions for compliance schedules are found in Chapter 21.

• Standards and procedures for the permitting of emission sources, periodic monitoring, and requirements for nonattainment areas are found in Chapter 22.

• Air emission standards for contaminants are found in Chapter 23.

• Chapter 24 provides for the reporting of excess emissions an d the equipment maintenance and repair requirements.

• Testing and sampling requirements for new and existing sources are found in Chapter 25.

• Chapter 26 identifies air pollution emergency episodes and the preplanned abatement strategies for ozone

.

• Con ditions that political subdivisions must meet in order to secure acceptance of a local air pollution control program are set forth in Chapter 27.

• Chapter 28 identifies the state’s adopted ambient air quality standards.

• Qualifications for observers of visible emission are found in Chapter 29.

• Chapter 31 contains the conformity of general federal actions to the Iowa state implementation plan or federal implementation plan.

• Chapter 33 contains special regulations and co nstruction permit requirements for major stationary sources and includes the requirements for PSD.

• Provisions for air quality emissions trading programs are found in Chapter 34.

The Environmental Protection Commission adopted the 200 8 ozone NAAQS on Sep tember 15,

2009 . The final rule was published in the Iowa Administrative Bulletin on October 7, 2009 in

Volume XXXII, Number 8, ARC 8215B . The rule was effective on November 11, 2009 . A copy of this publication is in Appendix A

. The adoption of the 2008 ozone NAAQS is in item 18

of the final rule.

27

## Public Comment & Hearing

28

## APPENDICES

29

### Appendix **A :**  **Iowa’s 200**  **8 Ozone NAAQS Adoption** 

30

# ,2:$
$'0,1,675$7,9(

%8//(7,1

3XEOLVKHG %LZHHNO\ 92/80( ;;;,, 2FWREHU   180%(5  3DJHV  WR 



## &217(176 ,1 7+,6 ,668(

3DJHV  WR  LQFOXGH $5& % WR $5& % DQG $5& % WR $5& %

$// $*(1&,(6

$JHQF\ LGHQWL¿FDWLRQ QXPEHUV                   

&LWDWLRQ RI DGPLQLVWUDWLYH UXOHV                   6FKHGXOH IRU UXOH PDNLQJ                        

(&2120,& '(9(/230(17 ,2:$

'(3$570(17 2)>@ 1RWLFH (QGRZ ,RZD WD[ FUHGLWV

DPHQGPHQWV WR FK  $5& %               1RWLFH ,RZD EURDGEDQG GHSOR\PHQW

JRYHUQDQFH ERDUG FKV  WR 

$5& %                                 )LOHG ,QIRUPDWLRQ WHFKQRORJ\ WUDLQLQJ

SURJUDP DPHQGPHQWV WR FK 

$5& %

  )LOHG /HDQ PDQXIDFWXULQJ LQVWLWXWH

VXSSO\ FKDLQ GHYHORSPHQW SURJUDP UHVFLQG FK  DPHQG FK  $5& %      )LOHG 0DQDJHPHQW WDOHQW UHFUXLWPHQW

SURJUDP DPHQGPHQWV WR FK  $5& %    )LOHG &RPPXQLW\ DWWUDFWLRQ DQG WRXULVP

GHYHORSPHQW &$7' SURJUDPV     $5& %

  )LOHG (PHUJHQF\ ,RZD EURDGEDQG

GHSOR\PHQW JRYHUQDQFH ERDUG FKV 

WR  $5& %

 

('8&$7,21 '(3$570(17>@

1RWLFH $WWHQGDQFH FHQWHUV UHVFLQG FK 

$5& %                                 )LOHG 6HQLRU \HDU SOXV SURJUDP FK 

$5& %

  )LOHG 6XSSOHPHQWDU\ ZHLJKWLQJ SODQ

IRU RSHUDWLRQDO IXQFWLRQ VKDULQJ    3D ́  $5& %        (19,5210(17$/ 3527(&7,21 &200,66,21>@

1$785$/ 5(6285&(6 '(3$570(17>@3XPEUHOOD ́

)LOHG $LU TXDOLW\ DPHQGPHQWV WR FKV 

     $5& %

  )LOHG 5HPRYDO RI (3$ FOHDQ DLU PHUFXU\

UXOH &$05 SURYLVLRQV  

 WR  $5& %

  )LOHG :DWHU TXDOLW\ DQG HIÀXHQW

SUHWUHDWPHQW VWDQGDUGV DPHQGPHQWV WR FKV   $5& %

  )LOHG :DWHU TXDOLW\ VWDQGDUGV2UHYLVLRQV

WR VXUIDFH ZDWHU FODVVL¿FDWLRQV 

$5& %

 

+80$1 6(59,&(6 '(3$570(17>@

1RWLFH /RQJWHUP FDUH SDUWQHUVKLS

SURJUDP20HGLFDLG HOLJLELOLW\ 

$5& %                                 1RWLFH 0HGLFDLG HOLJLELOLW\  

$5& %                                 1RWLFH ,QWHUPHGLDWH FDUH

IDFLOLWLHV2LQÀDWLRQ IDFWRU IRU UHLPEXUVHPHQW   WR 

$5& %                                 1RWLFH &KLOG DEXVH DVVHVVPHQW LQWDNH

SURFHVV   $5& %          )LOHG ),3 DVVLVWDQFH SD\PHQWV 

$5& %

  )LOHG 0HGLFDLG2FRYHUDJH DQG IHHV IRU

DPEXODWRU\ VXUJLFDO FHQWHU VHUYLFHV   $5& %

 ,$%  ),/(' 

('8&$7,21 '(3$570(17>@FRQW¶G

IXQGLQJ DV SURYLGHG LQ ,RZD &RGH VHFWLRQ  7R TXDOLI\ DV D VHQLRU \ HDU SOXV FRXUVH D FRXUVH RIIHUHG WKURXJK WKH ,&1 PXVW FRPSO\ ZLWK WKH DSSURSULDWH SURYLVLRQV RI WKL V FKDSWHU 7KHVH UXOHV DUH LQWHQGHG WR LPSOHPHQW ,RZD &RGH FKDSWHU (

>)LOHG  HIIHFWLYH @ >3XEOLVKHG @

( ',725 ¶ 6 1 27(  )RU UHSODFHPHQW SDJHV IRU ,$& VHH ,$& 6XSSOHPHQW 



### $5& % ('8&$7,21 '(3$570(17>@

$GRSWHG DQG )LOHG

3XUVXDQW WR WKH DXWKRULW\ RI ,RZD &RGH VHFWLRQ  WKH 6WDWH %RDUG RI (GXFDWLRQ KHUHE\ DPHQGV &KDSWHU  36XSSOHPHQWDU\ :HLJKWLQJ ́ ,RZD $GPLQLVWUDWLYH &RGH  ,RZD $FWV FKDSWHU  GLYLVLRQ ,, FUHDWHG D QHZ FKDSWHU LQ WKH ,RZD &RGH FKDSWHU ( 36HQLRU <HDU 3OXV 3URJUDP ́ 7KH 6HQLRU <HDU 3OXV 3URJUDP HVWDEOLVKHG LQ OH JLVODWLRQ SURYLGHV ,RZD KLJK VFKRRO VWXGHQWV LQFUHDVHG DFFHVV WR DGYDQFHG SODFHPHQW FRXUVHZRUN D QG SRVWVHFRQGDU\ FUHGLW 7KH ¿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́ FODUL¿HV WKH RUGHU RI WKH DGMXVWPHQWV DQG SKDVHRXWV ,WHP  LV DPHQGHG WR JLYH PRUH ÀH[L ELOLW\ WR GLVWULFWV WKDW FDQQRW VKRZ VDYLQJV EHFDXVH WKH\ DUH FXWWLQJ FRVWV DFURVV DOO IXQFWLRQV L QFOXGLQJ FXWWLQJ LQVWUXFWLRQDO

VWDII 1RWLFH RI ,QWHQGHG $FWLRQ ZDV SXEOLVKHG LQ WKH 0DUFK   ,RZD $GPLQLV WUDWLYH %XOOHWLQ DV

$5& %  $ SXEOLF KHDULQJ ZDV KHOG 0DUFK   DQG SXEOLF FRPPHQWV ZHUH DOORZHG XQWLO FORVH RI EXVLQHVV RQ 0DUFK   1R ZULWWHQ RU RUDO FRPPHQWV ZHUH UHFHLYHG UHJ DUGLQJ WKHVH DPHQGPHQWV 7KHVH DPHQGPHQWV DUH LGHQWLFDO WR WKRVH SXEOLVKHG XQGHU 1RWLFH $Q DJHQF\ZLGH ZDLYHU SURYLVLRQ LV SURYLGHG LQ 2&KDSWHU  7KHVH DPHQGPHQWV DUH LQWHQGHG WR LPSOHPHQW ,RZD &RGH VHFWLRQ  DQ G ,RZD &RGH FKDSWHU

( 7KHVH DPHQGPHQWV ZLOO EHFRPH HIIHFWLYH 1RYHPEHU  

( ',725 ¶ 6 1 27(  3XUVXDQW WR UHFRPPHQGDWLRQ RI WKH $GPLQLVWUDWLYH 5XOHV 5HYLHZ &RPPLWWH H SXEOLVKHG LQ WKH ,RZD $GPLQLVWUDWLYH %XOOHWLQ 6HSWHPEHU   WKH WH [W RI WKHVH DPHQGPHQWV >   3D ́ @ LV EHLQJ RPLWWHG 7KHVH DPHQGPHQWV DUH LGHQ WLFDO WR WKRVH SXEOLVKHG XQGHU

1RWLFH DV $5& %  ,$%  >)LOHG  HIIHFWLYH @ >3XEOLVKHG @ >)RU UHSODFHPHQW SDJHV IRU ,$& VHH ,$& 6XSSOHPHQW @



### $5& % (19,5210(17$/ 3527(&7,21 &200,66,21>@

$GRSWHG DQG )LOHG

3XUVXDQW WR WKH DXWKRULW\ RI ,RZD &RGH VHFWLRQ % WKH (QYLURQPHQWD O 3URWHFWLRQ &RPPLVVLRQ KHUHE\ DPHQGV &KDSWHU  36FRSH RI 7LWOH2'H¿QLWLRQV2)RUPV25XOHV RI 3UD FWLFH ́ &KDSWHU  3&RQWUROOLQJ 3ROOXWLRQ ́ &KDSWHU  3(PLVVLRQ 6WDQGDUGV IRU &RQWDP LQDQWV ́ &KDSWHU  ),/(' ,$% 

(19,5210(17$/ 3527(&7,21 &200,66,21>@FRQW¶G

30HDVXUHPHQW RI (PLVVLRQV ́ &KDSWHU  3$PELHQW $LU 4XDOLW\ 6WDQGDUGV  ́ DQG &KDSWHU  36SHFLDO 5HJXODWLRQV DQG &RQVWUXFWLRQ 3HUPLW 5HTXLUHPHQWV IRU 0DMRU 6WDWLRQDU\ 6 RXUFHV23UHYHQWLRQ RI 6LJQL¿FDQW 'HWHULRUDWLRQ 36' RI $LU 4XDOLW\ ́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

$5& %  $ SXEOLF KHDULQJ ZDV KHOG RQ -XO\   1R RUDO RU ZULWWHQ FRPPHQWV ZHUH SUHVHQWHG DW WKH KHDULQJ 2QH VHW RI ZULWWHQ FRPPHQWV ZDV UHFHLYHG SULRU WR WKH FORVH R I WKH SXEOLF FRPPHQW SHULRG RQ -XO\   7KH VXEPLWWHG FRPPHQWV DQG WKH 'HSDUWPHQW¶V UHVSR QVH WR WKH FRPPHQWV DUH VXPPDUL]HG LQ D SXEOLF UHVSRQVLYHQHVV VXPPDU\ DYDLODEOH IURP WKH 'HSDUWP HQW 7KH 'HSDUWPHQW GLG QRW PDNH DQ\ FKDQJHV WR WKH DGRSWHG UXOHV IURP WKRVH SXEOLVKHG XQGHU 1RWLFH

 ,WHP  DPHQGV UXOH 2% WKH GH¿QLWLRQ RI 3YRODWLOH RUJDQLF FRP SRXQGV ́ RU 392& ́ (3$ UHPRYHG WZR FRPSRXQGV 3URS\OHQH &DUERQDWH &$6  DQG 'LPHW K\O &DUERQDWH &$6  IURP WKH GH¿QLWLRQ RI 92& LQ D ¿QDO UHJXODWLRQ SXEOLVKHG RQ -DQX DU\   (3$ KDV GHWHUPLQHG WKDW WKHVH WZR FRPSRXQGV DUH QHJOLJLEO\ UHDFWLYH ZKLFK PHDQV WKH\ FRQWULEXWH OLWWOH RU QRWKLQJ WR WURSRVSKHULF R]RQH IRUPDWLRQ )DFLOLWLHV ZLOO QRW EH UHTXLUHG WR UHSRUW 3URS\OHQH &DUERQDWH DQG 'LPHWK\O &DUERQDWH DV 92& LQ WKHLU DLU HPLVVLRQV LQYHQWRU\ IRU FDOHQGD U \HDU  ,WHP  DPHQGV UXOH 2% WR XSGDWH WKH =,3 FRGH IRU WKH 'HSDUWPHQW ¶V $LU 4XDOLW\ %XUHDX RI¿FHV 7KH $LU 4XDOLW\ %XUHDX RI¿FHV UHPDLQ LQ WKH FXUUHQW ORFDWLRQ +RZH YHU D =,3 FRGH FKDQJH IRU WKH FXUUHQW ORFDWLRQ WRRN HIIHFW RQ -XO\   ,WHP  DPHQGV VXEUXOH  E\ DGGLQJ SDUDJUDSK 3RR ́ ZKLFK SURYLGHV IRU DQ H[HPSWLRQ IURP FRQVWUXFWLRQ SHUPLWWLQJ IRU FHUWDLQ WHPSRUDU\ GLHVHO HQJLQHV XVHG LQ SHU LRGLF WHVWLQJ DQG PDLQWHQDQFH RI QDWXUDO JDV SLSHOLQHV 6HYHUDO WLPHV SHU \HDU QDWXUDO JDV SLSHOLQHV UHTX LUH SHULRGLF WHVWLQJ DQG UHSDLU %HFDXVH RI WKH OHDG WLPH IRU WKLV W\SH RI SURMHFW WKH RZQHU RU RSHUDWRU RI WK H SLSHOLQH RIWHQ GRHV QRW KDYH VXI¿FLHQW WLPH WR DSSO\ IRU DQG REWDLQ D FRQVWUXFWLRQ SHUPLW SULRU WR L QVWDOOLQJ WKH HQJLQH DQG PXVW LQVWHDG DSSO\ WR WKH 'HSDUWPHQW IRU D YDULDQFH IURP WKH SHUPLWWLQJ UHT XLUHPHQWV RI &KDSWHU  7KH 'HSDUWPHQW KDV FRQGXFWHG DQ DLU TXDOLW\ DVVHVVPHQW RI WKHVH SURMHFWV D QG KDV GHWHUPLQHG WKDW DQ H[HPSWLRQ IURP FRQVWUXFWLRQ SHUPLWWLQJ LV DSSURSULDWH 7KH H[HPSWLRQ FR QWDLQV FRQGLWLRQV WR HQVXUH WKDW HQJLQH HPLVVLRQV ZLOO QRW H[FHHG WKH HPLVVLRQ OLPLWV FXUUHQWO\ DOORZHG XQ GHU WKH VPDOO XQLW H[HPSWLRQ VSHFL¿HG LQ SDUDJUDSK 3Z ́ ,WHP  DPHQGV WKH LQWURGXFWRU\ SDUDJUDSK RI VXEUXOH  WR XSGDWH WKH = ,3 FRGH IRU WKH 'HSDUWPHQW¶V $LU 4XDOLW\ %XUHDX RI¿FHV DV H[SODLQHG SUHYLRXVO\ IRU ,WHP 

 ,WHP  DPHQGV WKH LQWURGXFWRU\ SDUDJUDSK RI VXEUXOH  WR XSGDWH WKH = ,3 FRGH IRU WKH 'HSDUWPHQW¶V $LU 4XDOLW\ %XUHDX RI¿FHV DV H[SODLQHG SUHYLRXVO\ IRU ,WHP 

 ,WHP  DPHQGV SDUDJUDSK 3H ́ WKH SURYLVLRQV IRU DSSO\LQJ IRU D SHUP LW E\ UXOH IRU VSUD\ ERRWKV 3%5 WR LQFOXGH QHZ FHUWL¿FDWLRQ UHTXLUHPHQWV UHJDUGLQJ 1DWLRQ DO (PLVVLRQ 6WDQGDUGV IRU +D]DUGRXV $LU 3ROOXWDQWV 1(6+$3 IRU PHWDO IDEULFDWLRQ DQG ¿QLVKLQJ DW D UHD VRXUFHV VHH ,WHP  IRU DQ H[SODQDWLRQ RI WKH 1(6+$3 7KH DPHQGPHQW LV EHLQJ SURSRVHG EHFDXVH WKH 1(6+$3 IRU PHWDO IDEULFDWLRQ DQG ¿QLVKLQJ GRHV QRW FRQWDLQ DQ\ GH PLQLPXV XVDJH OHYHO IRU PDWHULDOV XVHG LQ VSUD\ DSSOLFDWLRQV 7KLV DPHQGPHQW LV VLPLODU WR DQ DPHQGPHQW DGRSWHG HDU OLHU LQ  UHJDUGLQJ WKH 1(6+$3 IRU PLVFHOODQHRXV VXUIDFH FRDWLQJ DW DUHD VRXUFHV $V ZLWK WKH HDUO LHU DGRSWHG DPHQGPHQW WKH 'HSDUWPHQW LV PRGLI\LQJ WKH UHTXLUHG 3%5 QRWL¿FDWLRQ IRUP WR LQFOXGH T XHVWLRQV WKDW ZLOO DVVLVW WKH RZQHU RU RSHUDWRU ZLWK WKH 1(6+$3 UHTXLUHPHQWV IRU PHWDO IDEULFDWLRQ D QG ¿QLVKLQJ RSHUDWLRQV

7KH DPHQGPHQWV WR WKH 3%5 UXOHV DQG WKH UHYLVLRQV WR WKH 3%5 QRWL¿FDWLRQ IRU P ZLOO KHOS HQVXUH WKDW RZQHUV DQG RSHUDWRUV DUH DZDUH RI WKH 1(6+$3 UHTXLUHPHQWV DQG UHDOL]H WKDW DOO VSUD\ DSSOLFDWLRQV PXVW EH LQ FRPSOLDQFH ZLWK RU RWKHUZLVH EH H[HPSW IURP WKH 1(6+$3 E\ WKH DSSO LFDEOH FRPSOLDQFH

GDWHV ,WHP  DPHQGV VXEUXOH  WR XSGDWH WKH =,3 FRGH IRU WKH 'HSDUWPHQW¶V $L U 4XDOLW\ %XUHDX RI¿FHV DV H[SODLQHG SUHYLRXVO\ IRU ,WHP ,$%  ),/(' 

(19,5210(17$/ 3527(&7,21 &200,66,21>@FRQW¶G

,WHP  DPHQGV WKH LQWURGXFWRU\ SDUDJUDSK RI VXEUXOH  UHJDUGLQJ WKH UHTXLUHPHQWV IRU VXEPLWWLQJ D 7LWOH 9 RSHUDWLQJ SHUPLW DSSOLFDWLRQ DQG XSGDWHV WKH =,3 FRG H IRU WKH 'HSDUWPHQW¶V $LU 4XDOLW\ %XUHDX RI¿FHV DV H[SODLQHG SUHYLRXVO\ IRU ,WHP  :LWK WKH DGRSWHG DPHQGPHQW IDFLOLW\ RZQHUV DQG RSHUDWRUV VXEPLWWLQJ HOHFWURQLF 7LWOH 9 DSSOLFDWLRQV DUH QR OR QJHU UHTXLUHG WR DOVR VXEPLW KDUG FRS\ DSSOLFDWLRQV WR (3$ 5HJLRQ 9,, 7KH 'HSDUWPHQW KDV JLYHQ (3$ DFFH VV WR WKH 'HSDUWPHQW¶V GDWDEDVH VR WKDW (3$ PD\ UHYLHZ HOHFWURQLF FRSLHV RI 7LWOH 9 DSSOLFDWLRQV ,WHP  DPHQGV VXEUXOH  WR XSGDWH WKH =,3 FRGH IRU WKH 'HSDUWPHQW¶V $LU 4XDOLW\ %XUHDX RI¿FHV DV H[SODLQHG SUHYLRXVO\ IRU ,WHP  ,WHP  DPHQGV WKH LQWURGXFWRU\ SDUDJUDSK RI VXEUXOH  WR XSGDWH W KH =,3 FRGH IRU WKH 'HSDUWPHQW¶V $LU 4XDOLW\ %XUHDX RI¿FHV DV H[SODLQHG SUHYLRXVO\ IRU ,WHP 

 ,WHP  DPHQGV WKH LQWURGXFWRU\ SDUDJUDSK RI UXOH 2% WR XSG DWH WKH =,3 FRGH IRU WKH 'HSDUWPHQW¶V $LU 4XDOLW\ %XUHDX RI¿FHV DV H[SODLQHG SUHYLRXVO\ IRU ,WHP 

 ,WHP  DPHQGV WKH LQWURGXFWRU\ SDUDJUDSK RI SDUDJUDSK 3D ́ WR XS GDWH WKH =,3 FRGH IRU WKH 'HSDUWPHQW¶V $LU 4XDOLW\ %XUHDX RI¿FHV DV H[SODLQHG SUHYLRXVO\ IRU ,WHP 

 ,WHP  DPHQGV WKH LQWURGXFWRU\ SDUDJUDSK RI VXEUXOH  WR XSGDWH WKH =,3 FRGH IRU WKH 'HSDUWPHQW¶V $LU 4XDOLW\ %XUHDX RI¿FHV DV H[SODLQHG SUHYLRXVO\ IRU ,WHP 

 ,WHP  DPHQGV WKH LQWURGXFWRU\ SDUDJUDSK RI VXEUXOH  WKH SURYLVL RQV WKDW DGRSW E\ UHIHUHQFH WKH IHGHUDO 1HZ 6RXUFH 3HUIRUPDQFH 6WDQGDUGV 1636 FRQWDLQHG LQ  &)5 3D UW  2Q 'HFHPEHU   (3$ DPHQGHG WKH 1636 *HQHUDO &RQGLWLRQV 6XESDUW $ I RU DOWHUQDWLYH ZRUN SUDFWLFHV IRU HTXLSPHQW OHDN GHWHFWLRQ DQG UHSDLU 7KH DOWHUQDWLYH ZRUN S UDFWLFH LV DQ DOWHUQDWLYH WR WKH FXUUHQW OHDN GHWHFWLRQ DQG UHSDLU ZRUN SUDFWLFH ZKLFK LV QRW EHLQJ UHYLVH G 7KH ¿QDO UHJXODWLRQV DGG D UHTXLUHPHQW WR SHUIRUP PRQLWRULQJ RQFH SHU \HDU XVLQJ WKH FXUUHQW (3$ 0HW KRG  OHDN GHWHFWLRQ

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¶V UHVSRQVH WR SHWLWLRQV IRU UHFRQVLGHUDWLRQ RI WKH 1636 UHTXLUHPHQWV 2Q 0DUFK   (3$ DPHQGHG WKH 1636 IRU VWDWLRQDU\ FRPEXVWLRQ WXUELQHV 6XESDUW .... 7KHVH DPHQGPHQWV UHPRYH UHTXLUHPHQWV IRU DGGLWLRQDO VXOIXU GLR[LGH 62  HPLVVLRQ FRQWURO RQ WXUELQHV WKDW EXUQ PRUH WKDQ  SHUFHQW ELRJDV VXFK DV ODQG¿OO JDV DQG GLJHVWHU JDV DQG VHW D QHZ VXOIXU GLR[LGH 62  OLPLW RI  OE00EWX IRU WKHVH WXUELQHV ,Q ¿QDOL]LQJ WKHVH DPHQGPHQWV  (3$ VWDWHV WKDW LWV LQWHQW ZDV QRW WR UHTXLUH 62  FRQWURO RQ WXUELQHV WKDW EXUQ SUHGRPLQDQWO\ ELRJDV D IXHO ZLWK UHODWLYHO \ ORZ VXOIXU FRQWHQW %LRJDV WKDW LV QRW EXUQHG LQ D FRPEXVWLRQ WXUELQH LV XVX DOO\ ÀDUHG RU HPLWWHG GLUHFWO\ WR WKH DWPRVSKHUH ,WHP  DPHQGV WKH LQWURGXFWRU\ SDUDJUDSK RI VXEUXOH  WKH HPLVVLR Q VWDQGDUGV IRU KD]DUGRXV DLU SROOXWDQWV IRU VRXUFH FDWHJRULHV DOVR NQRZQ DV 1DWLRQDO (PLVVLRQ 6WD QGDUGV IRU +D]DUGRXV $LU 3ROOXWDQWV RU 31(6+$3 ́ WR DGRSW UHFHQW DPHQGPHQWV WKDW (3$ PDGH WR  &)5 3 DUW  2Q 'HFHPEHU   (3$ DPHQGHG WKH 1(6+$3 *HQHUDO &RQGLWLRQV IRU DOWHUQDWLYH ZRUN S UDFWLFHV IRU HTXLSPHQW OHDN GHWHFWLRQ DQG UHSDLU 7KH DPHQGPHQWV DUH WKH VDPH DV WKRVH GHVFULEHG L Q ,WHP  7KH QHZ 1(6+$3 EHLQJ DGRSWHG DUH GHVFULEHG LQ ,WHP  ,WHP  DPHQGV VXEUXOH  E\ DGRSWLQJ QHZ SDUDJUDSKV 3HZ ́ DQG 3H[ ́ 7K LV DPHQGPHQW DGRSWV E\ UHIHUHQFH WZR QHZ 1(6+$3 IRU QHZ DQG H[LVWLQJ DUHD VRXUFHV $UHD VRXUFHV DUH XVXDOO\ VPDOOHU FRPPHUFLDO RU LQGXVWULDO RSHUDWLRQV 6SHFL¿FDOO\ DUHD VRXUFHV KDYH SRW HQWLDO HPLVVLRQV OHVV WKDQ  WRQV SHU \HDU WS\ RI DQ\ VLQJOH KD]DUGRXV DLU SROOXWDQW +$3 DQG OHVV WKD Q  WS\ RI DQ\ FRPELQDWLRQ RI +$3 DQG DUH FODVVL¿HG DV PLQRU VRXUFHV IRU +$3 )DFLOLWLHV WKDW KDYH SRWH QWLDO +$3 HPLVVLRQV JUHDWHU WKDQ RU HTXDO WR WKHVH OHYHOV DUH FODVVL¿HG DV PDMRU VRXUFHV %HFDXVH RI WKH SRWHQWLDO LPSDFWV WR VPDOO EXVLQHVVHV DQG SUHYLRXVO\ XQUHJ XODWHG IDFLOLWLHV WKH 'HSDUWPHQW GHYHORSHG LPSOHPHQWDWLRQ VWUDWHJLHV LQ FRQMXQFWLRQ ZLWK WKL V UXOH PDNLQJ 7KH VWUDWHJLHV LQFOXGH FRRSHUDWLYH HIIRUWV ZLWK 8QLYHUVLW\ RI 1RUWKHUQ ,RZD2,RZD $LU (P LVVLRQV $VVLVWDQFH 3URJUDP ),/(' ,$% 

(19,5210(17$/ 3527(&7,21 &200,66,21>@FRQW¶G

81, ,RZD 'HSDUWPHQW RI (FRQRPLF 'HYHORSPHQW DQG WKH ORFDO DLU TXDOLW\ SURJUDPV RI /LQQ DQG 3RON &RXQWLHV WR SURYLGH RXWUHDFK HGXFDWLRQ DQG FRPSOLDQFH DVVLVWDQFH W R DIIHFWHG IDFLOLWLHV 7KH 'HSDUWPHQW¶V RXWUHDFK HIIRUWV EHJDQ LQ  DQG DUH FRQWLQXLQJ GXULQJ WKH UXOHPDNLQJ SURFHVV ,W LV KRSHG WKDW WKHVH QHZ UXOHV LQ FRQMXQFWLRQ ZLWK WKH 'HSDUWPHQW¶V RXWUHDFK H IIRUWV ZLOO UHVXOW LQ UHGXFWLRQV LQ DLU WR[LFV ZKLOH PLQLPL]LQJ WKH UHJXODWRU\ EXUGHQ WR VPDOO EXVLQHVVHV D QG RWKHU DIIHFWHG IDFLOLWLHV 2Q -XO\   (3$ ¿QDOL]HG WKH 1(6+$3 DUHD VRXUFH VWDQGDUGV IRU SODWLQJ D QG SROLVKLQJ RSHUDWLRQV 6XESDUW :::::: 7KH 1(6+$3 DIIHFWV DUHD VRXUFHV HQJDJHG LQ V SHFL¿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¿UVW WKUHH \HDUV DQG   IRU HDFK \HDU WKHUHDIWHU 7KH 'HSDUWPHQW HVWLPDWHV WKDW DSSUR[LPDWHO\  IDFLOLWLHV PD\ EH VXEMHFW WR WKH 1(6+$3 IRU SODWLQJ DQG SROLVKLQJ 7KH 'HSDUWPHQW LQ FRQMXQFWLRQ ZLWK 81, LV GHYHORSLQJ FRPSO LDQFH WRROV IRU DIIHFWHG EXVLQHVVHV DQG LV DOUHDG\ ZRUNLQJ GLUHFWO\ ZLWK VHYHUDO DIIHFWHG IDFLOLW LHV 2ZQHUV DQG RSHUDWRUV ZLOO KDYH XQWLO -XO\  WR FRPSO\ ZLWK WKH 1(6+$3 2Q -XO\   (3$ ¿QDOL]HG WKH 1(6+$3 IRU QLQH PHWDO IDEULFDWLRQ DQG ¿QL VKLQJ DUHD VRXUFH FDWHJRULHV 6XESDUW ;;;;;; 7KH 1(6+$3 DIIHFWV DUHD VRXUFHV WKDW XVH RU HPLW FDGPLXP FKURPLXP OHDG PDQJDQHVH RU QLFNHO DQG WKH IDFLOLW\ LV HQJDJHG LQ RQH RI W KH IROORZLQJ  HOHFWULFDO DQG HOHFWURQLF HTXLSPHQW ¿QLVKLQJ RSHUDWLRQV  IDEULFDWHG PHWDO SURG XFWV  IDEULFDWHG SODWH ZRUN ERLOHU VKRSV  IDEULFDWHG VWUXFWXUDO PHWDO PDQXIDFWXULQJ  KHDW LQJ HTXLSPHQW H[FHSW HOHFWULF  LQGXVWULDO PDFKLQHU\ DQG HTXLSPHQW ¿QLVKLQJ RSHUDWLRQV  LURQ DQG VWH HO IRUJLQJ  SULPDU\ PHWDO SURGXFWV PDQXIDFWXULQJ DQG  YDOYHV DQG SLSH ¿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¿QLVKLQJ 7KH 'HSDUWPHQW LQ FRQMXQFWLRQ ZLWK 81, LV GHYHO RSLQJ RXWUHDFK PDWHULDOV IRU DIIHFWHG EXVLQHVVHV DQG LV DOUHDG\ ZRUNLQJ GLUHFWO\ ZLWK D QXPEHU RI DIIHF WHG IDFLOLWLHV 2ZQHUV DQG RSHUDWRUV RI H[LVWLQJ IDFLOLWLHV ZLOO KDYH XQWLO -XO\  WR FRPSO\ ZLWK W KH 1(6+$3 ,WHP  DPHQGV SDUDJUDSK 3D ́ WR EHWWHU UHÀHFW WKH 'HSDUWPHQW¶V FXU UHQW SUDFWLFHV UHJDUGLQJ VWDFN WHVWLQJ QRWL¿FDWLRQV SUHWHVW PHHWLQJV DQG WHVW SURWRFROV 7KH DP HQGPHQWV SURYLGH FODULW\ DQG DOORZ PRUH ÀH[LELOLW\ ,WHP  DPHQGV UXOH 2% WR DGRSW E\ UHIHUHQFH QHZ 1DWLRQDO $PEL HQW $LU 4XDOLW\ 6WDQGDUGV 1$$46 (3$ UHFHQWO\ VWUHQJWKHQHG WKH 1$$46 IRU R]RQH DQG IRU O HDG WR PRUH DGHTXDWHO\ SURWHFW SXEOLF KHDOWK DQG ZHOIDUH (3$ LVVXHG ¿QDO UXOHV WR UHYLVH WKH 1$$4 6 IRU R]RQH RQ 0DUFK   (3$ LVVXHG ¿QDO UXOHV WR UHYLVH WKH 1$$46 IRU OHDG RQ 1RYHPEHU  

 ,WHP  DPHQGV VXEUXOH  WKH GH¿QLWLRQ IRU 3YRODWLOH RUJDQLF FRPSR XQGV ́ RU 392& ́ DV

GHVFULEHG LQ ,WHP  7KHVH DPHQGPHQWV DUH LQWHQGHG WR LPSOHPHQW ,RZD &RGH VHFWLRQ %,$%  ),/(' 

(19,5210(17$/ 3527(&7,21 &200,66,21>@FRQW¶G

7KHVH DPHQGPHQWV ZLOO EHFRPH HIIHFWLYH RQ 1RYHPEHU  

( ',725 ¶ 6 1 27(  3XUVXDQW WR UHFRPPHQGDWLRQ RI WKH $GPLQLVWUDWLYH 5XOHV 5HYLHZ &RPPLWWH H SXEOLVKHG LQ WKH ,RZD $GPLQLVWUDWLYH %XOOHWLQ 6HSWHPEHU   WKH WH [W RI WKHVH DPHQGPHQWV >DPHQGPHQWV WR &KV      @ LV EHLQJ RPLWWHG 7KHVH DPHQGPHQW V DUH LGHQWLFDO WR WKRVH SXEOLVKHG XQGHU 1RWLFH DV $5& %  ,$%  >)LOHG  HIIHFWLYH @ >3XEOLVKHG @ >)RU UHSODFHPHQW SDJHV IRU ,$& VHH ,$& 6XSSOHPHQW @



### $5& % (19,5210(17$/ 3527(&7,21 &200,66,21>@

$GRSWHG DQG )LOHG

3XUVXDQW WR WKH DXWKRULW\ RI ,RZD &RGH VHFWLRQ % WKH (QYLURQPHQWD O 3URWHFWLRQ &RPPLVVLRQ KHUHE\ DPHQGV &KDSWHU  3(PLVVLRQ 6WDQGDUGV IRU &RQWDPLQDQWV ́ &KDSWH U  30HDVXUHPHQW RI (PLVVLRQV ́ DQG &KDSWHU  33URYLVLRQV IRU $LU 4XDOLW\ (PLVVLRQV 7UDG LQJ 3URJUDPV ́ ,RZD

$GPLQLVWUDWLYH &RGH 7KH SXUSRVH RI WKH DGRSWHG DPHQGPHQWV LV WR UHPRYH IURP WKH VWDWH DLU TXDOLW \ UXOHV (3$¶V &OHDQ $LU 0HUFXU\ 5XOH &$05 SURYLVLRQV WKDW ZHUH YDFDWHG E\ WKH 8QLWHG 6WDWHV & RXUW RI $SSHDOV IRU WKH 'LVWULFW RI &ROXPELD &LUFXLW WKH '& &RXUW 7KH 'HSDUWPHQW LV DOVR DGGL QJ QHZ PHUFXU\ PRQLWRULQJ SURYLVLRQV WR WKH VWDWH DLU TXDOLW\ UXOHV 1RWLFH RI ,QWHQGHG $FWLRQ ZDV SXEOLVKHG LQ WKH ,RZD $GPLQLVWUDWLYH %XOOHW LQ RQ 0DUFK   DV

$5& %  $ SXEOLF KHDULQJ ZDV KHOG RQ $SULO   1R RUDO RU ZULWWHQ FRPPHQWV ZHU H SUHVHQWHG DW WKH KHDULQJ $W WKH UHTXHVW RI (3$ 5HJLRQ 9,, WKH 'HSDUWPHQW H[WHQGHG WK H SXEOLF FRPPHQW SHULRG $Q $PHQGHG 1RWLFH RI ,QWHQGHG $FWLRQ ZDV SXEOLVKHG LQ WKH ,RZD $GPLQLVWUDW LYH %XOOHWLQ RQ 0D\   DV $5& %  H[WHQGLQJ WKH SXEOLF FRPPHQW SHULRG WR 0D\   6HYHQ ZULWWHQ FRPPHQ WV ZHUH UHFHLYHG SULRU WR WKH FORVH RI WKH SXEOLF FRPPHQW SHULRG 7KH VXEPLWWHG FRPPHQWV DQG WKH 'HSDUWPHQW¶V UHVSRQVH WR WKH FRPPHQWV DUH V XPPDUL]HG LQ D SXEOLF UHVSRQVLYHQHVV VXPPDU\ DYDLODEOH IURP WKH 'HSDUWPHQW 7KH 'HSDUWPHQW UHFHLYHG FRPPHQWV LQ VXSSRUW RI UHVFLQGLQJ WKH IHGHUDO &$0 5 SURYLVLRQV WKDW ZHUH DGRSWHG E\ UHIHUHQFH LQWR VWDWH DLU TXDOLW\ UXOHV 7KH '& &RXUW IRXQG WKH UHJXODWLRQV WR EH XQDXWKRUL]HG XQGHU WKH &OHDQ $LU $FW &$$ RU RWKHUZLVH GH¿FLHQW $OWKRXJK WKH '& &RXU W YDFDWHG WKH IHGHUDO UHJXODWLRQV WKHVH UHJXODWLRQV ZHUH DGRSWHG E\ UHIHUHQFH DQG WKHUHIRUH Z HUH VWLOO LQ HIIHFW DQG HQIRUFHDEOH E\ WKH 'HSDUWPHQW 7KH &$05 SURJUDP ZDV LQWHQGHG WR UHGXFH PHUFXU\ HPLVVLRQV IURP FRDO¿UHG H OHFWULF XWLOLW\ VWHDP JHQHUDWLQJ XQLWV (*8V DW WKH QDWLRQDO OHYHO DQG ZDV EDVHG XSRQ WKH V WDWH¶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¿FDWLRQV 7KH 'HSDUWPHQW LV SURFHHGLQJ ZLWK DGRSWLQJ UXOHV WR UHTXLUH PHUFXU\ PRQLW RULQJ EHFDXVH WKH 'HSDUWPHQW KDV GHWHUPLQHG WKDW WKH DGGLWLRQDO GDWD FROOHFWHG ZLOO DOORZ I RU PRUH FXUUHQW DQG DFFXUDWH

### Appendix **B :**  **Rulemaking and Public Participation Process**

The DNR’s rulemaking process is governed by Iowa Code § 17A, also referred to as the Iowa Administrative Procedure Act (IAPA). The IAPA details the procedures and format of state agency rulemakings. All rulemakings must be adopted within 180 days followi ng either the published notice or the last date of the oral presentations on the proposed rule, whichever is later. Administrative rules are approved by the Environmental Protection Commission (EPC) as

authorized under Iowa Code 455A.6.

Additional requirements associated with the rulemaking process are contained in Executive Orders (EO) 71 and 80. EO 71 requires agencies to take steps to minimize the adverse impact on jobs and the development of new employment opportunities before propos ing a rule. Documentation of these steps is completed by submitting a Jobs Impact Statement to the

Administrative Rules Coordinator prior to publication of notice of intended action

. The Jobs Impact Statement is published as part of the preamble to the n otice of rulemaking in the Iowa

A dministrative B ulletin (IAB)

. Agenc ies accept comments and information from stakeholders to assist in preparing the Jobs Impact Statement.

EO 80 direct s agencies to create stakeholder groups for specific rulemaking acti vities if requested to do so by the agency director or the Administrative Rules Coordinator. Stakeholder

group members are determined by the agency in consultation with the Administrative Rules

Coordinator. Stakeholder groups are advisory and do not cons titute agencies for rulemaking

purposes. S takeholder groups solicit input from the public and submit formal recommendations

to the DNR.

An example of the rulemaking process is listed below:

1. EO80 S takeholder Group : Determine need for stakeholder group i n conjunction

with the DNR Director and the Administrative Rules Coordinator. Form and participate in the EO80 stakeholder group if the group is determined to be necessary.

2. Job Impact Statement & Informal Stakeholder Input : Gather stakeholder input

for t he Job Impact Statement (JIS) to comply with Executive Order 71. I nform the

EPC of plans associated with the proposed rulemaking.

3. Governor’s Office pre

- clearance : Submit the JIS and the draft Notice of Intended Action to the Governor’s office for approval.

4. Notice of Intended Action : After preclearance, the DNR proposes the rulemaking through a Notice of Intended Action. A fiscal impact statement is included with this document. If approved by the EPC, the proposed rulemaking will be published in the

IAB.

5. Public Comment Period and Public Hearing(s) : The IAB indicates the length of the comment period, the agency contact, and the details of the public hearing(s). The minimum amount of time for the public comment period and public hearing date is 30 days for rules that the DNR plans to submit in a SIP revision.

376. Initial Administrative Rules Review : At some point during the rulemaking process, the proposed rule is rev iewed by the Iowa General Assembly's Administrative Rules Review Committee (ARRC). The DNR provides an overview of the rulemaking and responds to questions at the ARRC’s public meeting.

7. Adopted and Filed : After the close of the public comment period, the DNR returns to the EPC to request adoption of the rulemaking. A summary of public comments and responses are included with the proposed rulemaking. If adopted, the rulemaking is published in the IAB.

8. Final Publication : The adopted and filed rulemaking wi ll be published in the IAB.

9. Final Administrative Rules Review : Upon publication of the final rulemaking, the ARRC conducts their final review at their public meeting. The ARRC does have the discretion to object to a rule. The ARRC may also delay the eff ective date of a proposed rule pending additional review by the Iowa General Assembly.

10. Rule Effective : Typically, the rulemaking becomes effective 35 days after final publication in the IAB. The DNR can propose a later effective date, if necessary.

38