October 23, 2015 

Shaun McGrath 

Regional Administrator 

U.S. Environmental Protection Agency, Region VIII 

1595 Wynkoop Street 

Denver, CO 80202-1129 

Dear Mr. McGrath: 

DEPARTMENT of ENVIRONMENT 

and NATURAL RESOURCES 

JOE FOSS BUILDING 

523 EAST CAPITOL 

PIERRE, SOUTH DAKOTA 57501-3182 

denr.sd.gov 

The Secretary of the Department of Environment and Natural Resources (DENR) has been 

delegated by the Governor of South Dakota as his designee for the Air Quality Program in South 

Dakota. In that capacity, I am amending South Dakota's Air Quality Program. 

The Board of Minerals and Environment approved changes to South Dakota's Air Quality 

Program during a public hearing on August 20, 2015. The changes were approved by the Interim 

Rules Committee on September 21, 2015, and became effective on October 13, 2015. I have 

enclosed a copy of the changes which you should attach to EPA's current version of the 

Administrative Rules of South Dakota (ARSD) 74:36 and supporting documentation to 

demonstrate the rules were revised in accordance with South Dakota's procedures for adopting 

rules. A copy of these finalized rules will be readily available on South Dakota's webpage at: 

http://legis.sd.gov/Rules/RulesList.aspx. 

DENR has and will continue to have adequate resources to implement and enforce South 

Dakota's Air Quality Program. I want to thank you in advance for your favorable consideration 

of these requests. Please contact Kyrik Rombough at ( 605) 773-3151, if you have any questions. 

Sincerely, 

~-· Steven M. Pirner 

Secretary 

Enclosures 
DESCRIPTION OF APPROVED RULE CHANGES 

Chapter 74:36:01 - Definitions 

Chapter 74:36:01 defines the terms used throughout Article 74:36 -Air Pollution Control 

Program. EPA approved sections 74:36:01 :01 through 74:36:01 :21 of this chapter into South 

Dakota's State Implementation Plan (SIP). The definitions in Chapter 74:36:01 are reviewed 

periodically to ensure they are up-to-date and consistent with the other Air Quality Program 

chapters. 

There are six definitions in Chapter 74:36:01 that reference federal regulations. The federal 

regulations are periodically updated to ensure these definitions are consistent with the federal 

regulations. For example, the definition of a volatile organic compound is revised periodically by 

EPA by adding compounds to the list of organic compounds that have negligible photochemical 

reactivity, and therefore, are not considered a volatile organic compound. The sections in 

Chapter 74:36:01 that require updating the reference date to the most current version of the 

federal reference as of July 1, 2014, involve the following: 

1. 74:36:01:01 (8); 

2. 74:36:01 :01(29); 

3 .. 74:36:01 :01(67); 

4. 74:36:01 :01(73); 

5. 74:36:01 :05; and 

6. 74:36:01 :20. 

Based on DENR's experience, certain modifications to existing operations at permitted facilities 

result in an insignificant increase in air pollution. As such, South Dakota regulations identified 

these sources as insignificant activities. Insignificant activities were not required to be included 

in an operating or construction permit. However, South Dakota's regulations contained a "catch 

all" clause that stated an emission unit that was applicable to a federal or state standard could not 

be considered insignificant regardless of its insignificant increase in air pollution. In the past few 

years, EPA has promulgated several federal regulations covering these small sources of air 

pollution (e.g. generators, boilers, gas dispensing facilities, etc.). As such, South Dakota's 

"catch all" clause is requiring these small sources of air pollutants to now be included in the air 

quality permits and to undergo the same permitting process as projects with significant increases 

in emissions of air pollutants. South Dakota's regulations as initial written were not intended to 

require these small sources to have to go through the same permitting process as projects with 

significant increases of air pollutants. 

In July 2011, EPA promulgated a federal minor source review program in Indian country, which 

does not require a construction permit for new sources or modifications to existing sources if 

emissions are below the minor New Source Review threshold in Table 1 of 40 CFR § 49.153. 

The federal program allows existing sources with permits to administratively amend its existing 

permit to include these small sources of air pollutants. 

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To be consistent with EPA and to streamline the process for insignificant increases in air 

pollution, the approved rules added "insignificant increase in allowable emissions" to the 

definition of "permit revision" in section 74:36:01(50) and an exception to the definition of 

"modification" in section 74:36:01: 10, which will allow construction projects to move forward if 

the air pollution increase meets the definition of an "insignificant increase in allowable 

emissions." DENR is proposing to add a definition for, "insignificant increase in allowable 

emissions," derived from Table 1 in 40 CPR§ 49.153. This process would still require a small 

source of air pollution to be covered by an air quality permit but would use a process similar to 

EPA's administrative amendment process. These sources have been and are expected to 

continue to be inconsequential to attainment or maintenance of the National Ambient Air Quality 

Standards. 

Chapter 74:36:02-Ambient Air Quality 

Chapter 74:36:02 establishes the air quality goals and ambient air quality standards for South 

Dakota. EPA approved sections 74:36:02:01 through 74:36:02:05 of this chapter into South 

Dakota's SIP: 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA's federal regulations as of July 1, 2014. The following sections in 

Chapter 74:36:02 involve this type of change: 

1. 74:36:02:02; 

2. 74:36:02:03; 

3. 74:36:02:04; and 

4. 74:36:02:05. 

Chapter 74:36:03 -Air Quality Episodes 

Chapter 74:36:03 identifies the contingency plan DENR will follow during an air pollution 

emergency episode. EPA approved sections 74:36:03:01 and 74:36:03:02 of this chapter into 

South Dakota's SIP. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA's federal regulations as of July 1, 2014. These changes involve 

74:36:03:01 and 74:36:03:02. 

Chapter 74:36:04 - Operating Permits for Minor Sources 

Chapter 74:36:04 is South Dakota's minor air quality operating permit program. EPA approved 

sections 74:36:04:01 through 74:36:04:33 of this chapter into South Dakota's SIP. 

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The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA's federal regulations as of July 1, 2014. This type of change involves 

section 74:36:04:04. 

Section 74:36:04:03 lists emission units that are exempt from inclusion in a minor air quality 

operating permit. Emission units may not be exempted if federally enforceable limits have been 

included in the permit to avoid other permits. The approved revisions clarify that any unit that is 

applicable to a federal rule in Chapter 74:36:07 - New Source Performance Standards and 

Chapter 74:36:08 - National Emission Standards for Hazardous Air Pollutants may not be 

exempted from inclusion in the minor air quality operating permit. This will ensure that the 

business understands and complies with all of the federal requirements. 

A definition for "insignificant increase in allowable emissions" was included to account for all of 

the new federal standards covering small sources of air pollutants, to stream line the permitting 

actions for these small sources, and to be consistent with the federal permitting requirements. As 

such, the revisions add section 74:36:04:21.01 which will identify procedures for processing an 

application for activities that are considered an "insignificant increase in allowable emissions." 

This process will allow construction projects to move forward if the air pollution increase meets 

the definition of an "insignificant increase in allowable emissions." 

Chapter 74:36:05 - Operating Permits for Part 70 Sources 

Chapter 74:36:05 is South Dakota's Title Vair quality operating permit program, which is also 

referred to as an Operating Permit for Part 70 Sources program. Title V air quality operating 

permit programs are not part of South Dakota's SIP; however, EPA has approved South 

Dakota's permit program. This program is located in section 74:35:05:01 through 74:35:05:52. 

The reference date for the federal regulation was updated to the most current version of the, 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA' s federal regulations as of July 1, 2014. These types of changes are in the 

following sections: 

I. 74:36:05:04; 

2. 74:36:05:06; and 

3. 74:36:05:16.01. 

Section 74:36:05:04.01 lists insignificant activities that are exempt from inclusion in a Title Vair 

quality operating permit. Emission units may not be exempted if federally enforceable limits 

have been included in the permit to avoid other permits. The approved rules clarify that any 

insignificant activity that is applicable to a federal rule in Chapter 74:36:07 - New Source 

Performance Standards and Chapter 74:36:08 -National Emission Standards for Hazardous Air 

Pollutants, be included in the Title V air quality operating permit. The approved rules ensure that 

businesses understand and comply with all of the federal requirements. 

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A definition for "insignificant increase in allowable emissions" was included to account for all of 

the new federal standards covering small sources of air pollutants, to stream line the permitting 

actions for these small sources, and to be consistent with the federal permitting requirements. As 

such, the approved rules add section 74:36:05:39.01 which will identify procedures for 

processing an application for activities that are considered an "insignificant increase in allowable 

emissions." This process will allow construction projects to move forward if the air pollution 

increase meets the definition of an "insignificant increase in allowable emissions." 

Chapter 74:36:07 - New Source Performance Standards 

Chapter 74:36:07 includes all of the federal new source performance standards DENR has 

adopted by reference to maintain delegation of this program However, the following three 

sections are not delegated but are included in South Dakota's SIP: 

I. 74:36:07:08 -Ash disposal requirements; 

2. 74:36:07:29- Operating requirements for wire reclamation furnaces; and 

3. 74:36:07:30 - Monitoring requirements for wire reclamation furnaces. 

The ash disposal requirements are for municipal waste combustors and reference Article 74:27, 

which are DENR's solid waste requirements. The sections on wire reclamation furnaces were 

developed to ensure existing wire reclamation furnaces were minimizing air emissions and 

conducting monitoring to ensure compliance. None of these sections are being revised at this 

time. 

This chapter was last updated in June 2013, when the federal regulations promulgated as of July 

1, 2012, were adopted by reference. The reference date for the federal regulation was updated to 

the most current version of the federal reference of July 1, 2014. This revision updates any 

minor inconsistency between South Dakota's rules and EPA's federal regulations as of July 1, 

2014. There are 98 sections in this chapter. All but five are impacted by this revision. 

EPA has promulgated new standards since the last update to this chapter. The following section 

was included in Chapter 74:36:07: · 

1. 74:36:07:94 - Standards of performance for crude oil and natural gas production, 

transmission and distribution 

This federal regulation establishes standards of performance for crude oil and natural gas 

production, transmission and distribution that commence construction, modification, or 

reconstruction after August 23, 2011. This standard is located in 40 CFR Part 60, subpart 0000 

(July 1, 2014). The approved rules adopt this standard by reference to ensure DENR has the 

proper regulations in place in case these federal rules are applicable in the future to the oil and 

natural gas industry in South Dakota. 

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Chapter 74:36:08 - National Emission Standards for Hazardous Air 

Pollutants 

Chapter 74:36:08 includes all of the federal regulations DENR has adopted by reference to 

maintain delegation of federal standards applicable to hazardous air pollutants. 

The revision process for chapter 74:36:08 is similar to the revision process for chapter 74:36:07. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's rules and EPA's federal regulations as of July 1, 2014. There are 138 sections in this 

chapter. All but the first section is being revised. 

Chapter 74:36:09 - Prevention of Significant Deterioration 

Chapter 74:36:09 is DENR's Prevention of Significant Deterioration preconstruction permit 

program for large sources in areas of the state that attain the federal National Ambient Air 

Quality Standards identified in Chapter 74:36:02. EPA approved the Prevention of Significant 

Deterioration preconstruction permit program in South Dakota's SIP. The Prevention of 

Significant Deterioration preconstruction permit program consists of sections 74:36:09:01 

through 74:36:09:03 of this chapter. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA's federal regulations as of July 1, 2014. 

These changes involve sections 74:36:09:02 and 74:36:09:03. 

According to the Clean Air Act, once a pollutant is regulated under any part of the Act, (as was 

the case with greenhouse gas emissions after the motor vehicle regulations were finalized in 

March 2010) major new sources or major modifications are subject to the PSD program and Title 

V air quality operating permit program. Under the Clean Air Act, PSD and Title V air quality 

operating permits are required for all sources that emit a regulated air pollutant above 100 or 

250 tons per year, depending on the source. This threshold, if applied to greenhouse gases, would 

greatly increase the number of facilities requiring a PSD review or Title V air quality operating 

permit. Based on administrative necessity, EPA increased these thresholds through the 

"Tailoring Rule." 

On May 13, 2010, EPA issued the final version of the "Tailoring Rule" for greenhouse gas 

emissions. The major source thresholds for greenhouse gases are listed below: 

1. New PSD source because of a criteria air pollutant, the major source threshold for 

greenhouse gases is 75,000 tons per year of carbon dioxide equivalent or more; 

2. New PSD source if greenhouse gas emissions are 100,000 tons per year of carbon dioxide 

equivalent or more; 

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3. For an existing PSD source because of a criteria air pollutant, a major modification for 

greenhouse gases is an increase of 75,000 tons per year of carbon dioxide equivalent or 

more; 

4. For an existing non-PSD source that has the potential to emit 100,000 tons per year of 

carbon dioxide equivalent emissions or more, a major modification for greenhouse gases 

is an increase of 75,000 tons per year of carbon dioxide equivalent or more; and 

5. In addition to subsection (2) and (4), a specific greenhouse gas, without calculating the 

carbon dioxide equivalent, also needs to emit greater than 100 or 250 tons per year, 

whichever is applicable, to be regulated. 

On June 24, 2014, the Supreme Court of the United States ruled that greenhouse gases may not 

be regulated under the PSD program unless the facility requires a PSD permit for the other 

regulated air pollutants. The Supreme Court ruling also changed the permitting requirements for 

greenhouse gases in Chapter 74:36:05. Therefore, the approved rules revised the greenhouse gas 

requirements for Chapter 74:36:05 and 74:36:09. 

Chapter 74:36:10 - New Source Review 

Chapter 74:36: 10 is DENR's New Source Review preconstruction permit program for large 

sources in areas of the state that are not attaining the federal National Ambient Air Quality 

Standards identified in Chapter 74:36:02. All of South Dakota is in attainment with the federal 

standards; therefore, there are no facilities that require a preconstruction permit under this 

program. EPA approved sections 74:36:10:01 through 74:36:10:08 of this chapter into South 

Dakota's SIP. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA's federal regulations as of July 1, 2014. These changes involve the 

following sections: 

I. 74:36: 10:02; 

2. 74:36:10:03.01; 

3. 74:36:10:05; 

4. 74:36: 10:07; and 

5. 74:36: 10:08. 

On December 24, 2003, several definitions for new source review were stayed indefinitely by a 

court order. On March 3 0, 2011, EPA extended the stay of the "Fugitive Emissions Rule" under 

the new source review program. The extension clarified the stay and revisions of specific 

paragraphs in the new source review program affected by the Fugitive Emissions Rule. The 

approved rules revised South Dakota's SIP to remove these references. These changes involve 

section 74:36: 10:02. 

On January 22, 2013, the United States Court of Appeals for the District of Columbia Circuit 

vacated the significant impact levels for particulate matter less than 2.5 microns (PM2.5) in the 

6 
new source review program. The approved rules removed the significant impact levels for PM2.5 

from South Dakota's SIP. These changes involve section 74:36:10:06. 

Chapter 74:36:11- Performance Testing 

Chapter 74:36: 11 identifies the performance testing requirements used by permitted facilities to 

demonstrate compliance with permit limits. EPA approved sections 74:36: 11 :01 through 

74:36: 11 :04 of this chapter into South Dakota's SIP. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA' s federal regulations as of July 1, 2014. These changes involve section 

74:36:11:01. 

Chapter 74:36:12 - Control of Visible Emissions 

Chapter 74:36: 12 identifies visible emission limits for units that emit air pollution. It also 

identifies exceptions to the limits for certain instances such as brief periods during soot blowing, 

startup, shutdown, and malfunctions. EPA approved sections 74:36:12:01 through 74:36:12:03 of 

this chapter into South Dakota's SIP. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA's federal regulations as of July 1, 2014. These changes involve sections 

74:36:12:01 and 74:36:12:03. 

Chapter 74:36:13 - Continuous Emission Monitoring Systems 

Chapter 74:36: 13 identifies the continuous emission monitoring requirements for sources 

required to install continuous monitoring equipment by the Secretary. EPA approved sections 

74:36:13:01 through 74:36:13:07 of this chapter into South Dakota's SIP. 

Section 74:36:13:08 is not part of South Dakota's SIP but was approved by EPA as part of South 

Dakota's Title V air quality operating permitting program noted in Chapter 74:36:05. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP, approved Title V permitting Program and EPA's federal regulations as of July 1, 

2014. These changes involve the following sections: 

1. 74:36:13:02; 

2. 74:36:13:03; 

3. 74:36: 13:04; 

4. 74:36:13:06; 

5. 74:36:13:07; and 

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6. 74:36:13:08. 

Chapter 74:36:16-Acid Rain Program 

South Dakota's Acid Rain Program is similar to Chapter 74:36:07 - New source performance 

standards and Chapter 74:36:08 - National emission standards for hazardous air pollutants. This 

chapter is delegated to South Dakota by EPA. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA' s federal regulations as of July 1, 2014. These changes involve the 

following sections: 

1. 74:36:16:01; 

2. 74:36:16:02; 

3. 74:36:16:04; and 

4. 74:36: 16:05. 

Chapter 74:36:18 - Regulations for State Facilities in the Rapid City Area 

Chapter 74:36:18 is part of South Dakota's SIP and EPA approved sections 74:36:18:01 through 

74:36:18:12 of this chapter into South Dakota's SIP. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA's federal regulations as of July 1, 2014. These changes involve section 

74:36:18:10. 

Chapter 74:36:20 - Construction Permits for New Sources or Modifications 

Chapter 74:36:20 requires an air quality construction permit for new businesses/facilities and 

existing businesses/facilities that modify their operations that do not meet the requirements for 

obtaining a preconstruction permit in Chapters 74:36:09 and 74:36: 10. DENR submitted Chapter 

74:36:20 to EPA for inclusion in South Dakota's SIP. EPA approved Chapter 74:36:20 in South 

Dakota's SIP on June 27, 2014, except for the phrase, "unless it meets the requirements in 

section 74:36:20:02.01,"and all of section 74:36:20:02.01. Section 74:36:20:02.01 allows small 

projects to start construction prior to receiving a construction permit but does not allow them to 

start operation until the construction permit has been issued. The intention of the language was 

to allow construction of small sources that would not impact South Dakota's ability to achieve 

and/or maintain the National Ambient Air Quality Standards because of South Dakota's relative 

short construction season due to ground freezing during our winter season or other inclement 

weather that could potentially and unnecessarily delay the construction project. 

The approved rules try to resolve the issue with EPA's disapproval of section 74:36:20:02.01 in 

South Dakota's SIP. Currently, EPA allows the construction of concrete foundations, below8 
ground plumbing, ductwork, or other infrastructure and/or excavation work prior to the issuance 

of the construction permit. The approved rules limit what can be constructed prior to the issuance 

of the construction permit to what EPA has allowed. After completion of these pre-permit 

activities there should be no anticipated increases in emissions ofregulated air pollutants 

associated with them. The changes would also minimize potential delays in the construction of 

an entire project due to South Dakota's limited construction season. These changes involve 

sections 74:36:20:02 and 74:36:20:02.01. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA's federal regulations as of July 1, 2014. These changes involve section 

74:36:20:05. 

A definition for "insignificant increase in allowable emissions" was included to account for all of 

the new federal standards covering small sources of air pollutants, to stream line the permitting 

actions for these small sources, and to be consistent with the federal permitting requirements. As 

such, the approved rules add section 74:36:20:05.01 which will identify procedures for 

processing an application for activities that are considered an "insignificant increase in allowable 

emissions". This process will allow construction projects to move forward if the air pollution 

increase meets the definition of an "insignificant increase in allowable emissions". 

Chapter 74:36:21 - Regional Haze Program 

Chapter 74:36:21 contains the requirements DENR agreed to as part of South Dakota's Regional 

Haze Program. EPA approved sections 74:36:21:01 through 74:36:21:12 of this chapter into 

South Dakota's SIP. 

The reference date for the federal regulation was updated to the most current version of the 

federal reference of July 1, 2014. This revision updates any minor inconsistency between South 

Dakota's SIP and EPA's federal regulations as of July 1, 2014. These changes involve sections 

74:36:21 :02; 74:36:21 :04; 74:36:21 :05; and 74:36:21 :09. 

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Supporting Documentation 

The enclosed CD contains the supporting documentation, which demonstrates the rules were 

revised in accordance with South Dakota's procedures for adopting rules, contains a copy of the 

following documents. The page number notes the page of the document file and not the page 

number listed at the bottom of the page. 

• Effective Rules as of October 13, 2015 (pages 1to129); 

• South Dakota's Procedure for adopting rules (pages 130 to 132); 

• Final Check List (page 133) 

• Admission of Service (page 134 ); 

• Authorization to Proceed (page 135); 

• Small business impact (pages 139 to 142); 

• Fiscal note (page 13 8); 

• Admission of Service signed by the Legislative Research Council (page 136); 

• Admission of Serviced signed by the Bureau of Finance and Management (page 13 7); 

• Draft Rules (pages 143 to 365) 

• Public notice (pages 366 to 367); 

• Affidavit of Publication (pages 368 to 382); 

• Interested Parties Affidavit (page 383); 

• List of interested parties (pages 3 84 to 3 93) 

• Comments (pages 394 to 398) 

• Minutes of the Board of Minerals and Environment's public hearing (pages 399 to 402); 

• Approval of Rules (pages 403 to 404); 

• Board of Minerals and Environment Approved Rules (pages 405 to 628); and 

• Interim Rules Admission of Service Affidavit (pages 629 to 630); 

• Interim Rules Committee Minutes (pages 631 to 634) 

• Chairman of Board of Minerals and Environment Certificate (page 635). 

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