# REVISIONTO

STATE OFMICHIGAN

STATE IMPLEMENTATIONPLAN

for

Part 18. Prevention ofSignificantDeterioration (PSD) ofAir Quality

R 336. 2801, R 336.2816, and R 336.2830 (rescinded)

September2, 2011

Preparedby: Michigan DepartmentofEnvironmental Quality AirQualityDivision

P.

### 0. Box 30260 Lansing, Ml48909-7760 INTERNET: http://www.michigan.govldeqair

### TABLE OF CONTENTS Item Page
COMPLETENESS REVIEW
COMPLETENESS REVIEW CHECKLIST

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ATTACHMENTS
ATTACHMENT A Final form ofadopted rule(s), Part 18, effective June 29, 2011.
ATTACHMENT B Certificate ofAdoption from the Director ofthe Michigan Department of Environmental Quality (MDEQ), Dan Wyant, dated June 23, 2011.
Letter from MDEQ Director Dan Wyant to Office of Regulatory Reinvention (ORR) forwarding Certificate of Adoption, dated June 22, 2011.
ATTACHMENT C Delegation ofauthority from Governor Rick Snyder, letter dated March 24, 2011.
ATTACHMENT D Certificate ofapproval from Legislative Service Bureau, dated May 18, 2011.
Letter of certification of legality and authority from ORR to MDEQ, dated May 23, 2011.
ATTACHMENT E Secretary ofState's notice offiling Administrative Rules, dated June 29, 2011.
ATTACHMENT F Agency Report, dated March 18, 2011.
ATTACHMENT G Opening statementforAugust 11, 2010, public hearing.
ATTACHMENT H Newspaper affidavits dated June 6, 2010 Michigan Register

### notice dated June 15, 2010

### COMPLETENESS REVIEW
Administrative Materials

1. A formal letter of submittal from the governor or designee requesting EPA approval ofthe revision.
Cover letter from Dan Wyant, Director ofthe Michigan Department of Environmental Quality (MDEQ) to Ms. Susan Hedman, Regional Administrator, EPA Region 5, requesting approval ofSIP revision.



### 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 of adoption or final issuance as well as the effective date of the revision if differentfrom the adoption/issuance date.

The final form of the adopted rule in Part 18, which went into effect on June 29, 2011, is included in Attachment 

### A

The Certificate of Adoption dated June 22, 2011, signed by MDEQ Director Dan Wyant, is included in Attachment B.

A letter dated June 23, 2011, from MDEQ Director Dan Wyant to the Office of Regulatory Reinvention (ORR) is included in Attachment B.


### 3. Evidence that the state has the necessary legal authority understate law to adoptand implementthe revision.

A letter dated March 24, 2011, from Governor Rick Snyder to EPA Region 5 delegates authority to the Director of MDEQ to make any submittal, request, or application underthe Clean Air Act (Attachment C).

The letter dated May 23, 2011, from ORR to the MDEQ certifies that the rules are within the scope ofthe authority ofthe MDEQ (Attachment D).



### 4. A copy of the actual regulation 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 submittal should be a copy of the 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 of the regulation/document should, whenever possible, be indicated in the document itself.

The Secretary ofState's Notice of Filing Administrative Rules for Part 18, dated June 29, 2011 is included in Attachment E.The final form ofthe adopted rules, Part 18, with the effective date ofJune 29, 2011, is included in Attachment

### A

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

The ORR memo to the MDEQ, dated May 23, 2011, certifies that the rules are in conformity with the requirements of the Administrative Procedures Act, MCL 24.201 et seq. (Attachment D).


### 6. Evidence that public notice was given of the proposed change consistentwith procedures approved by EPA, including date of publication ofsuch notice.

The affidavits of publication from three newspapers that published the notice of public hearing on July 6, 2010, and the notice that was published in the Michigan Register on July 15, 2010, are included in Attachment H.



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

The May 23, 2011, memo from the ORR to the MDEQ certifies that the rules have been promulgated in conformity with the requirements ofthe Administrative Procedures Act (Attachment D).

The Opening Statement for the August 11, 2010, public hearing includes information on the notice of public hearing and instructions on how the hearing was to be conducted (Attachment G).


### 8. Compilation of public comments and state's response thereto.
Summaries ofthe comments received and the MDEQ responses are in Section 9 ofthe Agency Report (Attachment F).


### Technical support

1. Justification of rules revisions.
The "Purpose ofthe Proposed Rules and Background," Section 2, and "Summary of Proposed Rules," Section 3, of the Agency Report provides the purpose and justification ofthe proposed rules (Attachment F).DEPARTMENT OF ENVIRONMENTAL QUALITY

AIR QUALITY DIVISION

AIRPOLLUTION CONTROL

Filed with the Secretary ofState on June 29,2011

These rules become effective immediately upon filing with the Secretary ofState (By authority conferred on the director of the department of environmental quality by sections 5503 and 5512 of 1994 PA 451, MCL 324.5503 and MCL 324.5512, and Executive Reorganization Order Nos. 1995-16 and 2009-31, MCL 324.99903 and MCL 324.99919 and MCL 324.99919 and Executive OrderNo. 2011-1, 1969 PA 306, MCL 24.201 to 24.328.)

R 336. 2801 and R 336.2816 ofthe MichiganAdministrative Code are amended as follows:

PART 18. PREVENTION OF SIGNIFICANTDETERIORATION OF AIR QUALITY

R 336.2801 Definitions.

Rule 1801. The following definitions apply to 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 partonly.

(a) "Actual emissions" means the actual rate of emissions of a regulated new source review pollutant from 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, 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 of emissions, in tons per year, of a 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 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 duringthe consecutive 24-month period.

(C) For a regulated new source review pollutant, ifa project involves multiple emissions units, then only 1consecutive 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 1 0-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-yearperiod 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-monthperiod.

(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 orpromulgated 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 1consecutive 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 ofsuch unit shall equal zero; and thereafter, for all otherpurposes, 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) ofthis subdivision, for other existing emissions units under paragraph (ii) of this subdivision, and for a new emissions unit underparagraph (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)(l) (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 air quality impact equal to or greater than 1 microgram per cubic meter (annual average) of the pollutantfor which the minor source baseline date is established.(ii) Area redesignations under section 1 07(d)(1) (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 subjectto PSD regulations ornew 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 of available PM-10 increments, except that the baseline area shall not remain in effect ifthe department 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 actual emissions representative of sources in existence on the applicable minor
source baseline date.

(B) The allowable emissions of major 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 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 of physical 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 of underground pipework, and construction of permanent storage structures. "A change in method ofoperation" refers to those on-site activities, otherthan preparatory activities, which markthe 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 ortreatment
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 particular 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 of best available control technology. The standard shall, to the degree possible, set forth the emissions 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 1 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 theirprimary 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 sulfur 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% of the total cost ofthe demonstration project.

U) [Reserved] (k) "Commence," as applied to construction of a major stationary source or major modification, means thatthe owner or operatorhas 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 undertake a program of actual construction ofthe source to be completed within a reasonable time.

(1) "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, thatwould 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 if applicable, analyze, and provide a record of emissions on a continuous basis.(o) "Continuous emrsswns 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 of the equipment necessary to meetthe 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 113 of its 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, 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 if the replacement of components of an existing facility is to such an extentthat the fixed capital cost ofthe new components exceeds 50% ofthe fixed capital cost that would be required to construct a comparable entirely new facility orthe 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 from 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 of the 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, 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 possessingpower 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 lowercost 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 stringentrate ofemissions based onR 336.1112(f).

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

(A) A significant emissions increase ofa regulated new source reviewpollutant. (B) A significant netemissions increase ofthatpollutant from the major stationary source. (ii) A significant emissions increase from any emissions units or net emissions increase at
a major stationary source that is significant for volatile organic compounds shall be considered significantfor 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 orraw 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 curtailmentplan 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 ofaccommodating before January 6, 1975, unless such change would be prohibited under any federally enforceable permit condition which was established after January 6, 1975, underPSD regulations orR336.1201(1)(a).

(2) The source is approved to use under any permit issued under PSD regulations orunder R 336.1201(1)(a).

(F) An increase in the hours of operation 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 orR336.1201(1)(a).

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

(1) The state implementation plan.(2) Other requirements necessary to attain and maintain the national ambient air quality standards during the project and afterthe project 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 respectto a particularregulated 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 both ofthe following: (A) January 6, 1975, for particulate matter and sulfur dioxide. (B) February 8, 1988, for nitrogen dioxide. (ii) "Minor source baseline date" means the earliest date after the trigger date on which a major stationary source or a major modification subject to PSD regulations submits a complete application underthe relevantregulations. The trigger date is both ofthe following:

(A) August 7, 1977, for particulate matter and sulfur dioxide. (B) February 8, 1988, for nitrogen dioxide. (iii) The baseline date is established for each pollutant for which increments or other equivalentmeasures 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 1 07(d)(i) (D) or (E) ofthe clean air act for the pollutant on the 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 significantnet 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-10 increments, except that the department may rescind any minor source baseline date where it can be shown, to the satisfaction ofthe department, 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 of the following stationary sources of air pollutants which emits, or has the potential to emit, 100 tons peryear or more ofa regulated new source review pollutant:

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

(B) Coal cleaningplants with thermal dryers. (C) Kraftpulp mills. (D) Portland cementplants. (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 than 250 tons ofrefuse per day. (J) Hydrofluoric, sulfuric, and nitric acid plants. (K) Petroleum refineries. (L) Limeplants. (M) Phosphate rockprocessingplants. (N) Coke oven batteries. (0) Sulfur recovery plants. (P) Carbonblackplants (furnace process). (Q) Primary lead smelters. (R) Fuel conversion plants. (S) Sinteringplants. (T) Secondary metal production plants. (U) Chemical process plants. (V) Fossil fuel boilers, or combinations thereof, totaling more than 250 million British thermal units perhour 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 processingplants. (Z) Charcoal production plants. (ii) Any stationary source not listed in the previous subdivision which emits, or has the potentialto emit, 250 tons per year ormore ofa regulated new source reviewpollutant.

(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 shall be considered major for ozone.

(v) The fugitive emissions ofa stationary source shall not be included in determining, for any ofthe purposes of this 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 336.2801 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 amountby whichthe sum ofthe following exceeds zero:

(A) The increase in emissions from a particular physical change or change in the method ofoperation 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 particularchange only ifit occurs betweenthe following:

(A) The date 5 years before construction onthe particularchange commences.(B) The date thatthe 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(1)(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 of maximum 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 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) It has 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 particular pollutant. A replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, notto exceed 180 days.

(viii) The definition ofactual emissions in R 336.1101(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.

(hh) "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 orthe 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 determining the potential to emit ofa 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, poundsper hour) on a continuous basis.

### Qj) "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 336.2801a, or R 336.2801 to R 336.2819, R 336.2823 and R 336.2830. A permit issued under this program is a majorNSRpermit.

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

(11) "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 atthe 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 complianceplans under the state implementationplan.

(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 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 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 peryear, 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-yearperiod 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 atthe time 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 commencementofoperations 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. Forexample, volatile organic compounds are precursors for ozone.

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

(iii) A class I or II substance subjectto a standardpromulgated 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 1 of the following clean coal technologies:

(A) Atmospheric orpressurized fluidized bed combustion. (B) Integrated gasification combined cycle. (C) Magneto hydrodynamics. (D) Direct and indirectcoal-fired turbines. (E) Integrated gasification fuel cells. (F) A derivative of 1 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 of January 1, 1991, by the United States DepartmentofEnergy.

(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) "Secondaryemissions" 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 or major modification itself. For this rule, secondary emissions shall be specific, well defined, 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, from a train, or from 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 of the following pollutant emission rates:

(A) Carbon monoxide: 100 tons peryear. (B) Oxides ofnitrogen: 40 tons peryear. (C) Sulfur dioxide: 40 tons peryear. (D) Particulate matter: 25 tons peryear ofparticulate matter emissions; 15 tons peryear of PM-10 emissions; 10 tons peryearofPM2.5 emissions.

(E) Ozone: 40 tons peryearofvolatile organic compounds. (F) Lead: 0.6 tons peryear. (G) Fluorides: 3 tons peryear. (H) Sulfuric acid mist: 7 tons peryear. (I) Hydrogen sulfide: 10 tons peryear. (J) Total reduced sulfur, including hydrogen sulfide: 10 tons peryear. (K) Reduced sulfurcompounds, including hydrogen sulfide: 10 tons peryear. (L) Municipal waste combustor organics, measured as total tetra- through acta-chlorinated dibenzo-p-dioxins and dibenzofurans: 3.2 x 10-6megagrams per year or 3.5 x 10-6tons per year.

(M) Municipal waste combustormetals, measured as particulate matter: 14 megagrams per year or 15 tons peryear.

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

(0) Municipal solid waste landfill emissions, measured as nonmethane organic compounds: 45 megagramsperyear or 50 tons peryear.

(ii) In reference to a net emissions increase orthe potential ofa source to emit a regulated
new source reviewpollutantnot 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 10 kilometers ofa class I area, and have an impact on such area equal to or greater than 1 microgram per cubic meter (24- hour average).

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

(ss) "Stationary source" means any building, structure, facility, or installation which emits
ormay emita regulated new source reviewpollutant.

(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 maintainthe national ambient air quality standards during and afterthe project is terminated.

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

Rule 1816. (1) 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 ofthe permit.(2) Ifan applicant submits a permit application to the department for a the 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 department 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) the department shall not approve the permit application Ifthe 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 ofclass I lands, including visibility, notwithstanding that the change in air quality resulting from emissions from a major source or major modification would not
cause orcontribute 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 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 of Michigan's state implementation plan are otherwise met and 1ofthe 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 from a major source or major modification would cause or contribute to concentrations that would exceedthe maximum allowable increases for a class I area. The department 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 overminor source baseline concentrations

Pollutant Maximum allowable increase (micrograms percubic meter) Particulate matter: PM-10, annual arithmetic mean 17 PM-10, 24-hour maximum 30 Sulfur dioxide: Annual arithmetic mean 20 24-hour maximum 91 3-hourmaximum 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 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 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 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 managerdoes notconcur.

(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 of sulfur 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 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 orless for more than 18 days, notnecessarily consecutive, during any annual period.

Table 184 Maximum allowable sulfurdioxide increments Period ofexposure Maximum allowable increase (micrograms per cubic meter)

Terrain areas Low High 24-hourmaximum 36 62 3-hourmaximum 130 221RICK SNYDER GOVERNOR STATE OF MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY
LANSING



### CERTIFICATE OF ADOPTION DAN WYANT DIRECTOR



### I, Dan Wyant, Director ofthe Department of Environmental Quality, do formally adopt the attached administrative rules by amending R 336.2801 and R 336.2816 (Part 18) of the Michigan Administrative Code.

These rules are adopted pursuant to Sections 5503 and 5512 of Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended, and Executive Reorganization Order Nos. 1995-16 and 2011-1. 

# Le-lL--11

Da e

ORR 2009-055 EQ

CONSTITUTION HALL • 525 WEST ALLEGAN STREET• P.O. BOX 30473 • LANSING, MICHIGAN 48909-7973 www.michigan.gov/deq • (800) 662-9278RICK SNYDER GOVERNOR STATE OF MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY
LANSING

June 23, 2011

Ms. Norene Lind, Administrative Rules Manager Office of Regulatory Reinvention Department of Licensing and Regulatory Affairs 111 South Capitol Avenue -4th Floor Lansing, Michigan 48933-1070

Dear Ms. Lind: DAN WYANT DIRECTOR

SUBJECT: Certificate ofAdoption forAdministrative Rules Promulgated Pursuant to Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as Amended (Act 451), ORR 2009-055 EQ

The Certificate ofAdoption for the administrative rules promulgated pursuant to Part 55 of Act 451 is being forwarded to you, along with a reference copy ofthe administrative rules, in accordance with the provisions of Executive Order 2005-1 and the January 5, 1996, memorandum from the former Office of Regulatory Reform. Rule 1801 (R 336.2801) is being revised to meet the U.S. Environmental Protection Agency (EPA) regulations pertaining to the Prevention of Significant Deterioration (PSD) Program by adding requirements for particulate matter less that 2.5 microns in size (PM 2.5), specifically, a significance threshold. A significance threshold is established by the EPA to limit the applicability ofthe PSD regulations to larger sources, those above the significance level. PM 2.5 is a new standard with a new significance level. In addition, the EPA has proposed to disapprove Rule 1816 (R 336.2816) from Michigan's State Implementation Plan (SIP) submittal. Rule 1816 has been revised to be consistent with federal PSD regulations that require state PSD Programs to consult with federal land managers. With this change, the Department of Environmental Quality (DEQ) expects full SIP approval ofthe Michigan rules for the PSD.

The Legislative Service Bureau certified these rules on May 18, 2011, and your office formally approved the rules on May 13, 2011. These rules were delivered to the Joint Committee on Administrative Rules on May 23, 2011.

Ifyou have questions or comments regarding the rule changes, please contact Mr. Dave Fiedler, Regulatory Affairs Officer, at 517-335-6927, or you may contact me.

Enclosures

# ~QlQ_ce.**r~ly,** 

# .J

A 

# j_

# \~\ ·;w

an Wyant

# ~~ Director 517-373-7917

CONSTITUTION HALL • 525 WEST ALLEGAN STREET • P.O. BOX 30473 • LANSING, MICHIGAN 48909-7973 www.michigan.gov/deq • (800) 662-9278Ms. Norene Lind Page 2 June 23, 2011

cc: Mr. Jim Sygo, Deputy Director, DEQ Mr. G. Vinson Hellwig, DEQ Mr. Dave Fiedler, DEQ Ms. Susan Maul, DEQ Mr. Robert Irvine, DEQ Ms. Carrie Barr, DEQ Ms. Teresa Cooper, DEQ cc/enc: AQD File, ORR File ORR 2009-055 EQRICK SNYDER GOV::RNOR STATE OF MICHIGA.K EXECUTIVE OFFICE
LANSING



### March 24, 2011

Ms. Susan Hedman, Regional Administrator U.S. Environmental Protection Agency Region 5 77 West Jackson Boulevard (R-19J) Chicago, Illinois 60604-3507

Dear Ms. Hedman: BRIAN CALLEY LT. GOVERNOR



### The federal Clean Air Act requires Michigan to submit revisions to the State Implementation Plan and the Title V Program to the U.S. Environmental Protection Agency. It also provides an opportunity for the state to request delegations and make grant applications to fund air quality programs:
On January 4, 2011, Executive Order2011-1 was issued abolishing the Michigan Department of Natural Resources and Environment and establishing the Michigan Department of Environmental Quality (MDEQ) and the Michigan Department of Natural Resources.

I hereby delegate the Governor's authority to make any submittal, request, or application under the federal Clean AirAct to Mr. Dan Wyant, Director, MDEQ. This delegation is effective as of March 13, 2011.

Sincerely,

# ~~

cc: Mr. Dan Wyant, Director, iV1DEQ Rick Snyder Governor

Mr. Jim Sygo, Deputy Director, MDEQ Mr. G. Vinson Hellwig, MDEQ

GEORGE W. ROMNEY BUILDING • 111 SOUTH CAPITOL AVENUE • LANSING, MICHIGAN 48909 www.michigan.gov

### Legal Division
John C. Bollman, Director



### CERTIFICATE OF APPROVAL

Ihereby certifythatthe Legislative Service Bureauhas examinedthe

attachedproposedrules oftheDepartmentofEnvironmental Quality, datedMay
13, 2011, amendingR 336.2801 andR 336.2816 ofthe Department's rules entitled

"AirPollution Control, Part 18," and further certifythat, pursuantto section45 of

1969 PA 306, MCL 24.245, the Legislative ServiceBureau approvesthe rules as to
form, classification, and arrangement.

Dated: May 18, 2011

LEGISLATIVE SERVICEBUREAU

# By~/J<Mk Marg artm, MichiganLaw Compiler

Michigan Legislature 124 W. Allegan Street, 3rd Floor • P.O. Box 30036 • Lansing, MI48909-7536 • (517) 373-9425 • Fax: (517) 373-0171RICK SNYDER GOVERNOR STATE OF MICHIGAN DEPARTMENT OF LICENSING AND REGULATORYAFFAIRS LANSING



## LEGAL CERTIFICATION OFRULES STEVEN H. HILFINGER DIRECTOR



### I certifythatI have examinedthe attached administrativerules, datedMay 13, 2011, in whichtheDepartmentofEnvironmental Qualityproposes to modify aportion oftheMichigan Administrative Code entitled, 

### "AirPollution Control

- Part 18. Prevention ofSignificant Deterioration ofAir Quality," by:



### + AmendingR 336.2801 andR 336.2816

The Legislative ServiceBureauhas approvedtheproposedrules as to form, classification, and arrangement.


### I approve therules as to legalitypursuantto theAdministrative Procedures Act, MCL 24.201 

### etseq. andExecutive OrderNo. 2005-1. 

### Incertifyingtherules as to legality, I have determinedthattheyare withinthe scope ofthe authority ofthe agency, do not violate constitutionalrights, and are inconformitywiththerequirements ofthe Administrative Procedures Act.

Dated: 

# 5 -)3**~** 

## J..ol 1



### 2009-055 EQ Office ofRegulatoryReinvention

By:

# -~~~ll~Q::::::f==:::::r)_::..__,___ RobNederhood, DeputyDirector

OFFICE OF REGULATORY REINVENTION 111 S. CAPITOLAVENUE • P.O. BOX 30004 • LANSING, MICHIGAN 49809 (517) 335-8658 • www.michigan.gov/laraSTATE OF MICIDGAN RUTH JoHNsoN, SECRETARY oF STATE DEPARTMENT OF STATE

-- LANsiNG 

### June 29, 2011



### NOTICE OF FILING

ADMINISTRATIVE RULES

To: Secretary ofthe Semite Clerk ofthe House 

### of Representatives Joint Committee onAdministrative Rules State Office ofAdministrative**H~arings** 

### and Rules (Administrative Rule #2009-055-EQ) Legislative Service Bureau (Secretary ofState Filing#11-06-11) Department ofEnvironmental Quality

In accordance withtheprovisions ofSection46(1) ofAct 306, Public Acts of 1969, as amended, andExecutive Order 1995-6, this is to advise youthatthe MichiganDepartment of Environmental Quality andthe State·Office ofAdministrative Hearings andRules filed Administrative Rule #2009-055-EQ (Secretary ofState Filing#11-06-11) onthis date at4:22 P.M. for the Department ofEnvironmental Quality, entitled "Part 18, Prevention ofSignificant Deterioration ofAir Quality".

These rules become effective immediately uponfiling withthe Secretary ofState.

Sincerely,

RuthJohnson Secretary ofState \.\/

# gl(;b~'l\ 

# cl.\i**(}-\,l0~1_** )

# ~ Robin L_. Houston, Departmental Supervisor Office ofthe Great Seal

Enclosure

OFFICE OF THE GREAT SEAL 108 SOUTH WASHINGTON SQUARE, SUITE 1 • LANSING, MICHIGAN 48918 1-888-SOS-MICH (1-888-767-6424) www. Michigan.gov/sosAgency Reportto the JOINT COMMITTEE ON ADMINISTRATIVE RULES

This form must be completed by the department/agency that has the statutory authority for promulgating the rules. Please send an electronic copy of this form to the State Office of Administrative Hearings and Rules (SOAHR) at soahr_rules@michigan.gov. The SOAHRwill reviewthe document,the newspaperadvertisements, andthecorrespondingrulespriorto completing the legal certificationoftherules. Pleasebe sureto sendtothe SOAHRproofsofpublicationforthe threenewspaperadvertisementsrequiredbyMCL 24.242(1). Youmaymailthemorsendthemas a scanned attachment.

Department ofEnvironmental Quality (DEQ) (formerlyknown as Natural Resources and Environment DNRE

Title ofrules: AirPollution Control, Part 18, Prevention ofSignificantDeterioration ofAir Quality, and Part 19, New Source Review for Ma"or Sources Im actin NonattainmentAreas

Carrie Barr, Division Rule Liaison, DEQ, AQD, ConstitutionHall, 3r FloorNorth, Lansing, MI 48933; Phone: 517-373-7069; Fax: 517-373-1265; Email: barrel michi an. ov
2. Purpose for the proposed rules and background: The U.S. Environmental ProtectionAgency (EPA) has revised the federal regulations pertaining to the Prevention ofSignificantDeterioration (PSD) and nonattainmentNew Source Review (NSR) airpermittingprograms by adding requirements for particulate matter less than 2.5 microns in size (PM 2.5), specifically, a significance threshold. The EPA has established a significance threshold in orderto limitthe applicability ofthe PSD and NSRregulations to
sources with emissions above the significance level. To be consistent with the federal requirements, R 336.2801 and R 336.2901 needto be amendedto add the significance threshold for PM 2.5.

The EPA has proposedto disapproveR336.2816 from Michigan's State ImplementationPlan (SIP) submittal. By amending this rule, Michigan expects full SIP approval ofour state rules for PSD. Such approval would enable the State ofMichiganto fully carry outthe program, eliminating a federal appeals process that applies underthe current delegation offederal authority.

A recent courtruling has determined thatthe administrative appeal mechanisms found inR 336.2830 and R 336.2910 conflict with statutory provisions, whichprovide appeals exclusively through a court action. The only way to address this conflict is to rescind both R 336.2830 and R 336.2910.

R 336.2801 and R 336.2816 R 336.2801 and R 336.2816 are beingrevised to be consistent with federal and state requirements for the PSD ofair quality found in 40 CFR 51.166(p).

We propose to modify existing language in R 336.2801 to add a significance threshold for the PM 2.5 pollutant. The EPA has revised the regulations pertainingto the PSD program by adding requirements for PM 2.5, specifically, a significance threshold. The EPA has established a significancethresholdto limitthe applicability ofthe PSD regulations to sources with emissions above the significance level. The PM2.5 is a new standard with a new significance level. A revision toR 336.2801 is proposedto add the new threshold of 10 tons peryear.

We also proposeto modify existing language in R 336.2816 to be consistentwith the federal requirements for the PSD ofAir Quality, 40 CFR 51.166(p). The EPAhas proposedto disapproveR 336.2816 from Michigan's SIP submittal. With this change, Michigan expects full SIP approval ofour state rules for the PSD program.

R 336.2901 We propose to modify existing language in R 336.2901 to add a significancethreshold for PM 2.5. The EPA has revised the regulations pertainingto nonattainmentNSRby adding requirements for PM 2.5, specifically, a significance threshold. The EPA has established a significance threshold to limitthe applicability ofnonattainmentNSRregulations to sources with emissions above the significance level. The PM2.5 is a new standard with a new significance level. A revision toR 336.2901 is proposedto add the new threshold of 10 tons peryear.

R 336.2830 and R 336.2910 R 336.2830 and R 336.2910 provide an administrative appeal mechanism for the PSD and the nonattainmentNSRprograms. These rules are proposedto be rescinded because ofa recent courtruling that administrative appeals conflictwith statutoryprovisions that instead provide a circuitcourtvenue for a eals.

4. Name ofnewspapers and date ofpublication in newspapers (minimum 3 newspapers ofgeneral circulation, representing different parts ofthe state, one of which must be located in the UpperPeninsula): TheNotice ofPublic Hearing was published in the following newspapers on July 6, 2010:

• The Oakland Press
• Lansing State Journal
• The Mining Journal5. Time, date, location and duration ofpublic hearing: August 11,2010, from 10:05 a.m. to 10:26p.m. Brake Conference Room, Constitution Hall, Atrium South 525 WestAllegan Street, Lansing, Michigan

6. Date of ublication ofrules and ublic hearin July 15, 2010

7. Agency representative(s) attending hearing (include agency name and title of representative[s]): The following DEQ-AQD staffattended:

G. Vinson Hellwig, Division Chief Jerry Avery, Supervisor ofField Operations BrendaBlemaster, Administrative Rules Coordinator JeffRathbun, Environmental Engineer, Permit Section Robert Irvine, Supervisor ofthe StrategyDevelopmentUnit

8. Persons submittin letters, comments and testimon

9. Persons submittin letters, comments and testimon Letter submitted by: ShannonFisk SeniorAttorney Natural Resources Defense Council

Comments:

I. DNRE'sProposed PM2.5 Amendments AreIncomplete

Comment: ort:

osition:

The National Resources Defense Council (NRDC) submitted a commentthat stated, "One major goal ofthe ProposedAmendments is to add language regarding PM2.s to make the Michigan SIP consistentwith federal requirements. (StaffReport at 1 ). The Agency proposes to achieve this goal by inserting a PM25 significance threshold of 10 tons peryear (tpy) for boththe Prevention ofSignificantDeterioration ("PSD") and the Non-AttainmentNew Source Review ("NANSR") regulations. (See Proposed R 336.2801(qq)(i)(D) and 336.2901(gg)(i)(G)). Whilethe DNRE has properlyproposedto adopt the 10 tpy threshold for PM2

.5 setforth in federal regulations, Implementation oftheNew Source Review (NSR) Program for ParticulateMatter Less Than 2.5 Micrometers (PM2.s), 73 Fed. Reg. 28,321-02, 28,332-33 (May 16, 2008) ("2008 PM2

.5 Rule"), the ProposedAmendments improperly fails to incorporate significance thresholds for PM2.s precursors, as required by the 2008 PM2.5 Rule. 73 Fed. Reg. at 28,325-28."DNRE Response:

The DNRE is aware thatthere are other aspects oftheNSRPM2

.5 implementationprovisionsthat
are not being incorporated into this rulemaking. The focus ofthe PM2.s revisions was to include the PM2.s significance value only. Otherrelated revisions will be made in a future rulemaking. This will include rulemaking ofrevisions thatthe U.S. Environmental Protection Agency (EPA) has recently finalized, addressing all aspects oftheNSRPM2

.5provisions.

II. The Proposed Amendments Fail to Establish Rules That Satisfy Clean AirAct Requirements Regarding Federal Land Managers and Class I Areas.

Comment:

TheNRDC submitted a comment aboutR336.2816 with multiple concerns, summarized as follows. Even withthe proposed amendments, R 336.2816 (Rule 1816) still fails to provide an adequate Federal LandManager (FLM) consultation provision. Inparticular, while the rule providesthatthe DNREwill give the EPAnotice ofpermit applications and actions onthose applications, requires denial ofa permit application ifcertain findings are made by FLMs and concurred with by DNRE, and allows the issuance ofa permit for a source thatwould exceed certain impactthresholds ifthe FLMs and otherentities approve, Rule 1816 does nothing to "provide a mechanism" for ensuring thatthe FLMs and the public have a meaningful opportunity to raise such Class I area issues with the DNRE. Inparticular, even with the proposed amendments, Michigan's SIP continuesto fail to require the DNREto meet federal regulations by: (1) providing notice to an FLM, (2) presenting all relevant informationto the FLM, (3) considering an adverse impact finding made by an FLM, or(4) requiring public notice and an opportunityto comment on any DNRE rejection ofan FLM adverse impactfinding.

Withoutprovisions that specifically address the requirements of40 CFR §§ 51.166, 51.307, and 52.21, the SIP does not ensurethatFLMs are aware ofproposed sources and have the information needed to evaluate the impacts ofthose sources, that an FLM's adverse impact finding will actually be considered, orthatthe public has an opportunityto participate meaningfully in ensuring thatAQRVs in Class I Areas are fully protected. Since such steps are required by the Clean AirActand EPA'sregulations, the proposed amendments fail to ensure thatthe FLM and Class I Arearequirements in Michigan's SIP are adequate. As such, the DNRE shouldrevise the proposed amendments so thatRule 1816 satisfies all ofthe FLM consultationrequirements discussed above.

DNRE Response:

Federal regulations in 40 CFR 51.166 delineate the requirements for SIPs necessary to receive approval ofPSDprograms. Sincethe purpose ofDNRE adopting the Part 18 rules was to obtain approval ofMichigan's PSD program and change from being a delegated state to a SIP-approved state, we are attempting to address the requirements of40 CFR 51.166 in the proposedrule modifications. Rule 1816 has been written with the intentto incorporate all ofthe requirements under40 CFR 51.166(p), which identifies the necessary elements ofstate PSD SIPs for sources im actin Class I areas. In contrastto 51.166, 40 CFR52.21 describes the PSD re uirements instates thathave not adopted a PSD SIP (i.e., delegated states and those in which the EPA is administering the PSD program). Therefore only one ofthese regulations is applicable to a state's PSDprogram and 40 CFR 51.166 appropriately sets the requirements to be achieved in Rule 1816. 40 CFR 52.21 is not applicable.

40 CFR51.307 is partofSubpart P ofPart 51, which describes the required elements ofstate SIPs to address regional haze. 40 CFR 51.307 describes the new source reviewrequirements for regional haze. The provisions of51.307 were not included in the PSD SIP requirements of40 CFR 51.166 and thus are not currently addressed in Rule 1816. The DNRE will considerthe need to address 51.307 at a future time as an element ofMichigan'sregional haze SIP as opposedto a provision ofthe PSD SIP.
Additionally, the NRDC suggests thatthe DNREhas not incorporated a mechanism for the FLMs orthe public to have meaningful opportunityto raise such Class I issues with the agency. We agree thatproposedRule 1816 does not adequately "provide a mechanism" for the FLMto raise Class I issues, as is required by 40 CFR 51.166(p)(3).

While Rule 1816(3) requires an applicant to consultwith the FLM in certain situations, it is not comprehensive and does not identify the information thatwould be providedto the FLM in order to consider Class I issues nor include the FLM's findings as part ofthe permit application review. In response to the comment, the DNRE has added language in Rule 1816(2) and moved
some ofrule 1816(2) to a newparagraph (3) that will require applicants for all PSD permitsthat affect a Class I area to submit a demonstration to the department and the FLM, allow for the FLM to review the demonstration in consultationwith the department and then provide the FLM's findings to the department for review as apartofthe application. We believe these changes incorporate the mechanism for the FLMto raise Class I issues with the agency, as required by 51.166(p)(3).

The public will have a meaningful opportunity to raise issues with regards to the Class I issues during the public notice periodrequired for all PSD permitting in Michigan. Therefore, current Rule 1816 language is sufficient in this respect.

R 336.2816 Sources impacting federal class I areas; additional requirements. Rule 1816. (1) The department shall transmitto the United States environmental protection agency a copy ofeach permit application relating to amajor stationary source ormajormodification and provide notice to the United States environmental protection agency ofevery action related to the consideration ofthe permit.
(2) Ifan applicantsubmits a permitapplication to the departmentfor a theproposed major stationary source ormajormodification thataffects a federal class I area, the applicant must submit to the departmentand the federal land managercharged with directresponsibility for management ofclass I lands a demonstration ofthe impactthe emissions from the proposed
source ormodification would have on the airquality related values ofclass I lands, including visibili

. The de artment shall be availableto consult with and rovide additional information

# I to the federal land managerduring the federal land manager's review ofthe demonstration submitted by the applicant, ifnecessary, to complete the review ofthe demonstration.
(3) the department shall not approve the permit application Ifthe federal land manager's review of the applicant's demonstration results in a finding thatthe emissions from the proposed major source or majormodification would have an adverse impacton the airquality relatedvalues ofclass I lands, including visibility, notwithstandingthatthe 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.
(J4) Ifthe department determines thatthe emissions from a proposed major source ormajor modification would cause orcontribute to concentrations which would exceedthe 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 1ofthefollowing
occurs: (a) The applicant submits a written certificationthatthe applicanthas demonstratedto the federal land managerthatthe emissions from the proposed major source ormajormodificationwouldhave no adverse impact onthe airquality relatedvalues ofclass I lands, including visibility, notwithstanding thatthe change in air quality resulting from emissions from a major source ormajormodification would cause or contribute to concentrations thatwould exceedthe maximum allowable increases for a class I area. The departmentmay then, provided that applicable requirements are otherwise met, issue the permitwith emission limitations to assure that emissions ofsulfurdioxide, particulate matter, and oxides ofnitrogen would not exceedthe following maximum allowable increases overminor 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 Sulfur dioxide: Annual arithmetic mean 20 24-hour maximum 91 3-hourmaximum 325 Nitrogen dioxide: Annual arithmetic mean 25

(b) Ifthe department cannot approve the permit application underR 336.2816(J4)(a) due to sulfur dioxide emissions resulting in increases greaterthanthose specified in Table 183 for periods of24 hours or less, the applicantmay obtain approval by providing a written certification thatthe applicant has demonstratedto the federal land managerthatthe emissions from the proposed major source or majormodificationwouldhave no adverse impact on the air quality related values ofclass I lands,dioxide variance for the federal class I area on which variancethe public has received notice and opportunity for public hearing.
(c) Ifthe department cannot approve the permit application underR 336.2816(M)(a) due to sulfur dioxide emissions resulting in increases greaterthan those specified in Table 183 for periods of24 hours orless, and the department cannot approve the permit application underR**336.2816(~4)(b)** because the federal land manager does not concurwiththe governor's issuance ofa sulfur dioxide variance that is otherwise consistentwith R 336.2816(J4)(b), the applicant may obtain approval by providing a written certification thatthe applicanthas demonstratedto the presidentthat a sulfur dioxide variance is in the national interest and thepresidentconcurs withthe issuance ofthe sulfur dioxide varianceby the governor. The applicant shalltransferthe recommendations ofthe governorand the federal land managerto the presidentin anycasewhere thegovernor recommends a variancein which the federal land managerdoes notconcur. ( 45) The department will not issue a permit affecting a class I area in which a sulfurdioxide variance
was granted under R 336.2816(M)(b) or (c), unless the permit includes emission limitations necessary to assure that emissions ofsulfurdioxide from the major source ormajormodification would not, during any day on which the otherwise applicable maximum allowable increases are exceeded, cause orcontribute to concentrations which would exceedthe following maximum allowable increases over the baseline concentration and to assure thatemissions wouldnot cause orcontribute to concentrations which exceed the otherwise applicable maximum allowable increases for periods ofexposure of24 hours orless for more than 18 days, notnecessarily consecutive, during any annual period.

Table 184 Maximum allowable sulfur dioxide increments Period ofexposure

24-hour maximum

Name ofperson completing this report: 

# IRobertIrvine 

# I

Date report completed: 

## I 3-18-11

(SOAHR-JCARJune 2009) Maximum allowable increase (micrograms per cubic meter)

Terrain areas Low

36 High 62

### Department of Natural Resources and Environment Opening Statement By: Jerry Avery, Hearing Officer August 11, 2010

Introduction
Good morning. My name is JerryAvery, and I am the Supervisor ofthe Field Operations Section in the Air Quality Division at the Michigan Department of Natural Resources and Environment. Iwill be serving as the Hearing Officerfor this public hearing on the proposed administrative rule revisions to Part 18

- Prevention of Significant Deterioration ofAir Quality and Part 19

- New Source Review for Major Sources Impacting NonattainmentAreas.

With me are Brenda Blemaster, Administrative Rules Coordinatorfor the Air Quality Division; Vince Hellwig, Chief ofthe Air Quality Division, who is representing the Director ofthe Department, Rebecca Humphries, as the decision-maker on these administrative rules; and Jeff Rathbun from the Permit Section in 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 aboutwhy we are here. Then, we will describe the purpose ofthe hearing and how your comments will be used. Following 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 hearyour 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 amendments to Parts 18 and 19 ofthe administrative rules for Air Pollution Control, State Office ofAdministrative Hearings and Rules Nos. 2009-055 NE, 2010-005 SR, 2010-022 NE, and 2009-056 SR.

Jeff Rathbun will now briefly summarize the proposed revisions.



### 1

### Purpose of Public Hearing



### Thank you Jeff. Now Brenda Blemaster will describe the purpose oftoday's hearing and how your comments will be used.

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 maywant 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 6, 2010. This notice along with the proposed rules was also published in the Michigan Register on July 15, 2010. 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:

1. Mr. Avery, 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 ofthe cards have been completed, he will ask if anyone else would like to make a statement.

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



### 2

### 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 5:00p.m. today will be considered when the Department makes its decision. Following the public hearing, we will review all ofthe 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 four to five months to complete.

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



### 3

### Closing Statement

Thank 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.

Ifyou have any questions regarding the proposed rule revisions to Parts 18 and 19 of the Air Pollution Control Rules, Air Quality Division staffwill be available immediately following this hearing to answerthem.

The hearing is now closed. Thank you again.



### 4County of Oakland} STATE OF MICHIGAN, 

### ss

.



# .**L~.l~j-** 

# ..CS\-Q

..**~~\\.**

## .....................being duly sworn,
deposes and says that 

### I am the

### _\g.~-~-~.l.~-{L

### ........... of THE OAKLAND PRESS, a**newspap~**printed and circulated daily in Oakland County, Michigan and that 1 held such position during the publication of the notice hereto annexed· that a notice of ' 

### ········································································



### ......\).u.b\i.L

...**.\.\Q.t-:,.c.~**

## ..............................................of which the annexed notice is a true copy, was published in the said THE OAKLAND PRESS

### ··················································



### .....**O~c.:e**

### ................................... immediately preceding the 

## ::1

.. ofJ.Jv.\..i

... that the annexed printed copy of said notice
was taken fm'm the said newspaper. That the dates of
publication of said notice were

.................................................



## ..... J.v..\..

....**frJ.~.~l}.1**.. CJ.

......................................................... and**furt!Ylff-rJ~e>nonent** sayeth**~~~**

.....

# ~..................................................

...............................................................................................

Subscribed and sworn to before me this

.. ........ 

# fo.

........ day of

....................................................

# ~~~..A.D. 20

..

### 1.9

........

# ~~CA~ ································································································· NOTARY PUBLIC, OAKLAND COUNTY, MICHIGAN

TINA M. CROWN NOTARY_PUBLIC, STAlE OFMl COUI'llY OF lAPEER MY COMMISSION EXPIRES Mar30, 2Q1.i..{- I'ICTING IN COUNTY OF**~~** . :·' NOTICE OF PUBLIC HEARING DEPARTMENT OF NATURAL RESOURCESAND ENVIRONMENT

. AIR QUALITY DIVISION '

. Tlie Michigan Department of Natural Resource. and Environment (DNRE), :AirQualny Division, will conduct a public hearing on proposed administrative ruies promulgated pursuant to Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act,

.1994 PA451, as amended (Act451); R336,2801, R336,2816, R336.2830, R336.2901, and R336,2910. ·

·R336.2601 and R**336.290~** are being amendedto add the new federally promulgated sigriiflcancil threshold for PM 2.5. R336,.2816.ls being amended to match the federal requirements for Class· I areas. A recent court ruling has determined.that the administrative appeal process outlined In R336.2830 and.R336.2910 conflicts With statutory provisions. ' These rules Will be rescinded to'addrcils thiS c:onmct. · The pubhchearing Will be held on Wedrlesday,.August 11, 2010.'at10:00 a.m. in the Brake**Conferenc~** Room, ConsutuUon 11a11,Atriurn South, 525 WestAllegan Street,**~ansing,** Michigan

.. Copies ofthe proposed rules (SOAHR 2009,055 NE, 2009-056 SR, 2010-022 NE, and 2010·005 SR} can be doWnloaded from the lnter'n<it at:.. http://lwJw.michigan.gov/degair. These rules can also be downloaded from the internetthrough the slate QfllceatAdminislratlve Hearings and Rules at h\tp://www:mlchigan govisoahi:, Copies ofthe I)Jies may also be obtained brcontacting me lansingoffice at; .\ 1 • DNRE

- Air**Qual~y** Division·

. P.O: Box30260 Lansing, Michigan**4890~7760** Phone: 517-335-6984 ' 1 Fax: 517-241·7499. E-Mail: blemaSterb@mlchigan.gov ' 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 5:00. p.m.**'!~** August11, 2010. · · ,[
Persons needing accommodations foreffective participation in the meeting should contact the Air Quality**Divisionat517~335-6984** one week In advance to request mobility, visual, hearing, or.,· otherassistance. " · · This

### noUc~ of public

### heari~~**~ glv~~**  in accordan,;,

### ~th Sections 41 and 42 of

### Michigan'~. · AdminlsiraUve Procedures Act, 1969 PA 306, as amended, being Sections.24.241 and 24.242. ofthe Mlchlgan'Compiled Laws (MCL). Administration of the rules Is by aulhorHy conferred on, the Directorof**t~e** DNRE bysections 5503 and 5512.orAcl451, MCL 324.5503 and 324.5512, and .ExecuUve ·ReorganiZation Order Nos. 1995-18 and**2PD9~31,** MCL 324.99903 and MCL 324.99919:' Authority for promulgation of R336,2910 and R336.2830 is conferred upon the SlateOfllee·atAdministrative Hearings and Rules by ERO 2005'1, MCL445.2021.'.These**rule~**will become effeCtive immediately alterfifing with the Secretary ofState. . ' · .

PublishJuly6, 2010



# RECEIVED

JUL 0 9 

### 2010
AIR QUALITY DIV.**~ .r.u:..~** **lYJ.J.l~ J.l~**  U J V Ufl.1Yf\.L 

### UpperMichigan's LargestDaily Newspaper q'49 

### W. Washington St., 

### P.O. Box 430, Marquette, Michigan 49855. Phone (906)228-2500. Fax (906)228-3273



### AFFIDAVIT OF PUBLICATION STATE OFMICHIGAN

For the County of 

### MARQUETTE

In the matter of: Notice of Public Hearing Department of Natural Resources and Environment Air QualityDivision

Cost: $105.50

State of 

### MICHIGAN, County of Marquette ss.


### JAMES A. REEVS Beingduly sworn, says that he is


### PUBLISHER

of 

### THE MININGJOURNAL

a newspaperpublished 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 6, 2010

# ~~Ahl}bl)J JAMES A. REEVS 

# ,__) Subscribed and sworn 

### to before me this 7th day of July, 2010.

### ROB~ M. KINNUNEN Notary Public for Marquette County, Michigan Actingin the Countyof Marquette Mycommission expires: April 27, 2013 

### AFFIDAVIT OFPUBLICATION

NOTICE OF PUBLIC HEARING DEPARTMENTOF NA· TURAL RESOURCES --AND-ENVIRONMENT

AIR QUALITY DIVISION
The Michigan Depart·

mentof Natural Resources and En· vironment (DNRE), Air I Quality Division, will conduct a public hearing on proposed ad· ministrative rules promulgated pursuant to Part 55, Air Pollution Control, of the Natural Resources a.nd , EnVIronmental Protec- I tionAct.1994PA451, 1 as amended (Act , 451 ); R 336-2801, R 336.2816, R 336.2830, R 336.2901, and R 336.2910. R 336.2801 and R 336.2901 are being amended to add the newfederally promulgated signifi· cance threshold for PM 2.5. R 336.2816 is being amended to match the federal requirements for Class I areas. A recent court ruling has determined thatthe administrative appeal process outlined in R 336.2830 ·and R 336.2910 conflicts with statutory provisions. These rules will be rescinded to address this conflict
The public hearing will

be held on Wednes· day, August 11,2010, at 10:00 am. in the Brake Conference Room, Constitution Hall, Atrium South, 525 West Allegan

.

- $tree!, Lansing, Michl·

gan..

. . . Copies of the**propos~d**

rules (SOAHR 2009-055 NE, 2009-056 SA, 2010-022 NE, and 2010-005 SA) can be downloaded from the Internet at: http://www. michigan.gov/deqair.

These rules can also be downloaded from the Internetthrough the State Office ofAd· ministrative Hearings and Rules at http://www.michigan. gov/soahr. Copies ofthe

rules mayalso be ob· tained by contacting the Lansing office at:

DNRE• AirQuality Division P.O. Box 30260 Lansing, Michigan

48909-7760 Phone: 517·335-6984

.. FaX: 517-241-7499

E-Mail: blemasterb@ michigan.gov All interested persons are invited to attend and presenttheir views. It is requested thatall statements be submitted in writing for the hearing record. Anyone unable to attend maysubmit comments in writing to the address above. Written comments must be received by 5:00 p.m. on August 11, 2010.
Persons needing accommodations for effective participation in the meeting should contact the Air Quality Division at 517·335-6984 one week in advance to request mobility, visual, hearing, or other assistance.
This notice ofpublic

hearing is given in accordance with Sections 41 and 42 of Michigan' s Adminis· trative Procedures Act

· 1969 PA 306, as amended, being Sections 24.241 and 24.242 ofthe Michi· gan Compiled Laws (MCL). Administration ofthe rules is by authority conferred on the Director of the DNRE bySections 5503 and 5512 ofAct 451, MCL 324.5503 and 324.5512, and Executive Reorganization Order Nos. 1995-18 and 2009-31, MCL 324.99903 and MCL 324.99919. Authority for promulgation of R 336.2910 and R 336.2830 is confemid uponthe State Office ofAdministrative Hearings and Rules by ERO 2005·1, MCL 445.2021. These rules will become effective immediately after filing with the Secretary of State.
G. Vinson Hellwig Chief,Air-Quality Division
1time 7·6-2010

### ~ECEIVED 

## JUL 0 9 2010

AIR QUALITY DIV.AFFIDAVIT OFPUBLICATION COMMUNITYNEWSPAPERS, INC. 120 E. Lenawee. Lansing, MI48919 State ofMichigan, CountyofIngham

INTHE MATTER OF: NOTICE

DNREAIR QUALITYDIVISION

AnnaTrudell
Being duly sworn, says thathe/she is authorizedbythepublisher ofLansing StateJournal., to swearthat a certainnotice, a copyofwhichis annexedhere to, waspublished inthe followingpublication:

1. Publishedinthe English language forthe dissemination ofgeneral and/or legalnews, and 2. Has a bonfide list ofpayingcustomers orhas beenpublished at least once a weekinthe
same communitywithoutinterruption for at least 2 years, and 3. Hasbeen established, published and circulated at least once a weekwithoutinterruption for at least one (1) yearinthe communitywherethepublicationis to occur.

LANSING STATEJOURNAL 

# a**71~**

.

# IV~**t~** AnnaTrudell

SUBSCRIBED AND SWORNTOBEFOREMETHIS 6TH

DAY OFJULY, 2010

CARRIEA. SAVAGE NOTARYPUBLIC, STATE OFMICHIGAN, COUNTY OFEATON MY COMMISSIONEXPIRES: SEPTEMBER4, 2014 ACTINGINTHE COUNTY OFINGHAM

LE- 837394 

# /lansing StateJournal • Tuesday,July 6, 2010 • SC

NOTICE OF PUBLIC HEARING DEPARTMENT OF NATURAL RE

- SOURCESAND ENVIRONMENT

. AIR QUALITY DIVISION

.'·

The Michigan Departmentof Natural Resources and Enl(ironment (DNRE),. Air Quality Division, will conduct a public 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); R 336.2801, R 336.2816, R 336.2830, 'R 336.2901, and R 336.2910. R 336.:2801 and R 336.2901 are being amended to add the new federally promulgated significance. threshold for PM '2.5. R 336.2816 is being amended to match the. federal requirements for Class I areas: A recent court ruling lia5 determined that the administrative ·appeal process outlined In R 336.2830 and R 336.2910 conflicts with statutory provisions. These rules will be rescinded to address thls.confllct. The public hearing will be held qn Wednesday, August 11, 2010, at 10:.00 a.m. in the Brake Conference Room,· Constitution Hall, Atrium ·South, ·S25 West Allegan Street, Lansing, Michigan. Copies qf the proposed rules (SOAHR 2009-055 NE, 2009-056 SR,,2010-022 NE, and ' 2010-005 SR) can be downloaded from the Internet at: http:/ /www.mlchlgan.gov/deqair. These rules can also be downloaded from the Internet through, the state Office of Administrative Hearings and Rules at http:/ /www.michigan.gov/so;:thr. CopIes ofthe rules may also be obtained by contacting the Lansing office at:
DNRE

- Air Quality Division P.O. Box 30260 Lansing, Michigan 48909-7760 Phone: 517-335-6984 Fax: 517-241-7499 E-Mail: blemasterb@michigan.gov
All interested persons are invited to attend and present their views. 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 5:00 p.m. on August 11, 2010. Persons needing,·accommodations for effective participation in the meeting should contact the Air Quality Division at 517-335-6984 one week.in advance to ·request mobility, visual, hearing, orother 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 (MCL). Admlnistration of the rules is by authority conferred on the· Director of.the·DNRE by Sections 5503 and 5512 of Act 451, MCL 324.5503 and 324.5512, and Executive Reorganization Order Nos. 1995-18 and 2009-31, MCL 324.99903· and MCL 324.99919. Authority for promulgation of R 336.2910 and R 336.2830 is conferred upon the State Office ofAdministrative Hearings and Rules by ERO 2005-1, MCL 445.2021. These rules will become effective immediately· after filing with the Secretary ofState•

G. Vinson Hellwig,' Chief, Air Quality DIvision
LE·837394 7/6/10

# Michigan Register

Published pursuantto § 24.208 of TheMichigan Compiled Laws



## Issue No. 12-2010 (This issue, published July 15, 2010, contains documents filed from June 15,2010to July 1, 2010)



### Compiled and Publishedbythe 

# State Office ofAdministrative Hearings and RulesDepartment ofNatural Resources and Environment Air Quality Division (SOAHR # 2009-055) Part 18 Prevention ofSignificant Deterioration ofAir Quality

........................................ 133-145 HearingNotice

.................................................................................................................. 146-146 DepartmentofEnergy, Labor and Economic Growth State Office ofAdministrative Hearings andRules (SOAHR# 2009-056) Pa1i 19 New Source Review for Major Sources Impacting NonattainmentAreas

........... 147-148 Hearing Notice

.................................................................................................................: 146-146 DepartmentofEnergy, Labor and Economic Growth State Office ofAdministrative Hearings and Rules (SOAHR# 2010-005) Pmi 18 Prevention ofSignificant Deterioration ofAir Quality

........................................ 149-150 Hearing Notice

.................................................................................................................. 146-146 DepartmentofNatural Resources and Environment Air Quality Division (SOAHR

### # 2010-022) Pa1i 19 New Source Review for Major Sources Impacting NonattainmentAreas

........... 151-160 Hearing Notice

.......· ........................................................................................................... 146-146 Department ofAgriculture Pesticide and Plant Pest Management Division (SOAHR # 201 0-024) Regulation No. 628 Seed Potato Certification

.................................................................. 161-162 HearingNotice

.................................................................................................................. 163-163 Department ofEnergy, Labor and Economic Growth MIOSHA Occupational Health (SOAHR

### # 2010-028) Part 604 Chromium (IV) In Construction 44(2)

............................................................... 164-165 DepartmentofEnergy, Labor and Economic Growth MIOSHA General Industry (SOAHR# 2010-029) Pmi 315 Chromium (IV) In General Industry 44(2)

......................................................... 166-167
DepartmentofEnergy, Labor and Economic Growth Workers' Compensation Agency (SOAHR# 2010-030) Workers' Compensation Health Care Services Rules

...................................................... 168-178 Hearing Notice

.................................................................................................................. 179-179
CERTIFICATION OF NEED REVIEW STANDARDS
Department ofCommunityHealth Certificate ofNeed Review Standards for Bone Marrow Transplantation (BMT) Services

............................................................... 181-182 DepartmentofCommunityHealth Certificate ofNeed Review Standards for Heart/Lung and Liver Transplantation Services

............................................................... 183-1832010 MR. 12 -July 15,2010

PROPOSEDADMINISTRATIVE RULES

SOAHR2009-055

DEPARTMENT OF NATURALRESOURCES AND ENVIRONMENTAL QUALITY

AIRQUALITYDIVISION

AIRPOLLUTION CONTROL

Filed with the Secretary ofState on
This rule becomes effective immediatelyupon filing with the Secretary ofState unless adopted under sections 33, 44, 45a(6), or48 of 1969 PA 306. Rules adopted underthese sections become effective 7 days after filing with the Secretary ofState.
(By authority conferred on the director ofthe department ofnatural resources and environmental quality by sections 5503 and 5512 of 1994 PA 451, MCL 324.5503 and 324.5512, and Executive Reorganization OrderNos. 1995-18 and 2009-31, MCL 324.99903 and MCL 324.99919)

Draft 05/12/2010

R 336. 2801 and R 336.2816 ofthe MichiganAdministrative Code are amended as follows:

PART 18. PREVENTION OF SIGNIFICANTDETERIORATION OF AIR QUALITY

R 336.2801 Definitions.

Rule 1801. The following definitions apply to terms used in this part. Ifa term defined in this part is also defined elsewhere in the rules, then the definition containedhere applies for this partonly.

(a) "Actual emissions" means the actual rate ofemissions ofa regulated new sourcereviewpollutant from an emissions unit, as determined underR 336.1101(b), exceptthatthis definition shall not apply for calculating whether a significant emissions increase has occurred, orfor establishing a plantwide applicability limitunder R 336.2823. Instead, the terms "projected actual emissions" and "baseline actual emissions" shall apply for those purposes.

(b) "Baseline actual emissions" means therate ofemissions, in tons peryear, 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 peryear, at which the unit actually emittedthepollutant during any consecutive 24-month period selected by the owner or operatorwithinthe 5-yearperiod immediatelyprecedingwhen the
owner or operatorbegins actual construction ofthe project. The department shall allow the use ofa differenttime period upon a determination that it is more representative ofnormal source operation. All ofthe following provisions apply:

(A) The average rate shall include fugitive emissionsto the extentquantifiable, 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 thatwas legally enforceable during the consecutive 24-month period.

1332010 MR 12- July 15,2010

PROPOSED ADMINISTRATIVERULES

SOAHR2010-022

DEPARTMENT OF NATURALRESOURCESAND ENVIRONMENTAL QUALITY

AIRQUALITYDIVISION

AIRPOLLUTION CONTROL

Filed with the Secretary ofState on
This rule becomes effective immediately uponfiling 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 ofthe department ofnatural resources and environmental quality by sections 5503 and 5512 of 1994 PA451, MCL 324.5503 and 324.5512, and Executive Reorganization OrderNos. 1995-18 and 2009-31, MCL 324.99903 and MCL 324.99919)

Draft 04/08/2010

R 336.2901 ofthe Michigan Administrative Code is amended as follows:

PART 19. NEW SOURCEREVIEWFORMAJOR SOURCES IMPACTINGNONATTAINMENT AREAS

R 336.2901 Definitions.

Rule 1901. The following definitions apply to terms used in this part. Ifa term defined here is also defined elsewhere in these rules, then the definition containedhere supersedes for this partonly:

(a) "Actual emissions" meansthe actual rate ofemissions ofaregulated new source review pollutant from an emissions unit, as determined under R 336.1101(b), exceptthatthis definition shall not apply for calculatingwhether a significant emissions increase has occurred, orfor establishing a plantwide applicability limitunderR 336.2907. Instead, the terms "projected actual emissions" and "baseline actual emissions" shall apply for those purposes. (b) "Baseline actual emissions" means therate ofemissions, in tons peryear, ofaregulated new source reviewpollutant, as determined by the following: (i) For any existing electric utility steam generatingunit, baseline actual emissions means the average rate, in tons per year, at whichthe unit actually emittedthe pollutant during any consecutive 24-month period selected by the owner oroperator withinthe 5-yearperiod immediately precedingwhenthe
owner or operatorbegins actual construction ofthe project. The department shall allow the use ofa differenttime periodupon a determination that it is more representative ofnormal source operation. The following shall apply: (A) The average rate shall include fugitive emissions to the extentquantifiable, and emissions associated with startups, shutdowns, and malfunctions.

1512010 MR. 12- July 15, 2010



### NOTICE OFPUBLIC HEARING

NOTICE OF PUBLIC HEARING DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT AIR QUALITYDIVISION

The Michigan Department ofNatural Resources and Environment (DNRE), Air Quality Division, will conducta public hearing on proposed administrativerules promulgatedpursuantto Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (Act 451); R 336.2801, R 336.2816, R 336.2830, R 336.2901, and R 336.2910. R 336.2801 and R 336.2901 are being amended to add the new federally promulgated significancethreshold for PM 2.5. R 336.2816 is being amended to match the federal requirements for Class I areas. A recent court rulinghas determined thatthe administrative appeal process outlined in R 336.2830 and R 336.2910 conflicts with statutoryprovisions. These rules will be rescinded to address this conflict.

The public hearing will be held on Wednesday, August 11, 2010, at 10:00 a.m. in the Brake Conference Room, Constitution Hall, Atrium South, 525 WestAllegan Street, Lansing, Michigan. Copies ofthe proposedrules (SOAHR2009-055 NE, 2009-056 SR, 2010-022 NE, and 2010-005 SR) can be downloaded from the Internet at: http://www.michigai1.gov/deqair. These rules
can also be downloaded from the Internetthrough the State Office ofAdministrative Hearings and Rules athttp://,vww.michigan.gov/soahr. Copies ofthe rules may also be obtained by contactingthe Lansing office at:

DNRE- Air Quality Division P.O. Box 30260 Lansing, Michigan 48909-7760 Phone: 517-335-6984 Fax: 517-241-7499 E-Mail: blemasterb@michigan.gov

All interestedpersons are invited to attend and presenttheirviews. Itis requested that all statements be submitted in writing for the hearingrecord. Anyone unable to attend may submit comments in writing to the address above. Written comments must be received by 5:00p.m. on August 11, 2010.

Persons needing accommodations for effectiveparticipation in the meeting should contactthe Air QualityDivision at 517-335-6984 one week in advance to request mobility, visual, hearing, orother assistance.

This notice ofpublic hearing is given in accordance with Sections 41 and 42 ofMichigan's AdministrativeProcedures Act, 1969 PA 306, as amended, being Sections 24.241 and 24.242 ofthe Michigan Compiled Laws (MCL). Administration ofthe rules is by authority conferred on the Director ofthe DNREby Sections 5503 and 5512 ofAct451, MCL 324.5503 and 324.5512, and Executive Reorganization OrderNos. 1995-18 and 2009-31, MCL 324.99903 and MCL 324.99919. Authority for promulgation ofR336.2910 and R 336.2830 is conferred upon the State Office ofAdministrative Hearing and Rules by ERO 2005-1, MCL 445.2021. These rules will become effective immediately after filing with the Secretary ofState.

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