SS

- 7039 ( October 2011 ) RDA 1693 1 Department of State

Division of Publications

312 Rosa L. Parks Avenue, 8th Floor Snodgrass/TN Tower
Nashville, TN 37243

Phone: 615

- 741

- 2650

Fax: 615

- 741

- 5133

Email: register.information@tn.gov For Department of State Use Only

Sequence Number:

Rule ID(s) :

File Date:

Effective Date:



# Rulemaking Hearing Rule(s) Filing Form

Rulemaking Hearing Rules are rules filed after and as a result of a rulemaking hearing. T

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Agency/Board/Commission: Environment and Conservation

Division: Air Pol lution Control

Contact Person: Lacey J. Hardin

Address: 9 th Floor L & C Annex

401 Church Street
Nashville, Tennessee Zip: 37243

- 1531

Phone: (615) 532

- 0545

Email: Lacey.Hardin@tn.gov

Revision Type (check all that apply):

X Amendment

New
Repeal

Rule(s) Revised ( A LL chapters and rules contained in filing must be listed here . If needed, copy and paste

additional tables to accommodate multiple chapters . Please enter only ONE Rule Number/Rule Title per row)

Chapter Number Chapter Title

1200

- 03

- 09 Construction and Operating Permits

Rule Number Rule Title

1200

- 03

- 09

- .01 Construction PermitsSS

- 7039 ( October 2011 ) RDA 1693 2 (Place substance of rules and other info here. Statutory authority must be given for each rule change. For

info rmation on formatting rules go to http://state.tn.us/sos/rules/1360/1360.htm )

Chapter 1200

- 03

- 09 Construction and Operating Permits

Amendments

Part 14 of subparagraph (b) of paragraph (4) of Rule 1200

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- 09

- .01 Construction Permits is amended by deleting the current part 14 and replacing it with a new part 14 so that, as amended, the new part shall read as

follows:

14. “Baseline area” means any intrastate area (and every part thereof) not designat ed as a nonattainment area in which the major source or major modification establishing the minor source baseline date would construct or would have an air quality impact for the pollutant for which the baseline date is established, as follows: equal Equal to or greater than 1 μg/m 3 (annual average) of the pollutant for which the minor source baseline date is

established for SO 2 , NO 2 , or PM 10 ; or equal to or greater than 0.3 μg/m 3 (annual average)

for PM 2.5

.

(i) Area redesignations under this Division, 12 00

- 03, cannot intersect or be smaller than the area of impact of any major stationary source or major modification which establishes a minor source baseline date or is subject to the regulations in this paragraph.

Part 15 of subparagraph (b) of paragraph (4) of Rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting the current part 15 and replacing it with a new part 15 so that, as amended, the new part shall read as

follows:

15. “Baseline date”:

(i) “Major source baseline date” means in the cas e of particulate matter PM 10 and sulfur dioxide, January 6, 1975; and in the case of nitrogen dioxide, February 8,

1988 ; and in the case of PM 2.5 , October 20, 2010

.

(ii) “Minor source baseline date” means the earliest date after the trigger date on

which a major stationary source or a major modification submits a complete application to the Technical Secretary or to the EPA administrator. The trigger

date is:

(I) In the case of particulate matter PM 10 and sulfur dioxide, August 7, 1977;

and

(II) In the cas e of nitrogen dioxide, February 8, 1988 ; and

(III) In the case of PM 2.5 , October 20, 2011

.

(iii) The baseline date is established for each pollutant for which increments or other equivalent measures have been established if:

(I) The area in which the pr oposed source or modification would construct is not designated as a nonattainment area for the pollutant on the date of its complete application.

(II) In the case of a major stationary source, the pollutant would be emitted in significant amounts, or, in the case of a major modification, there would be a significant net emissions increase of the pollutant.SS

- 7039 ( October 2011 ) RDA 1693 3 Item (III) of subpart (i) of part 6 of s ubparagraph ( d ) of paragraph (4) of R ule 1200

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- 09

- .01 Construction Permits is amended by deleting the curren t item (III) and replacing it with a new item (III) so that, as amended, the new

item shall read as follows:

( II I) Particulate matter:

10 μ g/m 3 of TSP, 24

- hour average

10 μ g/m 3 of PM10, 24

- hour average

4 μ g/m 3 of PM 2.5 , 24

- hour average ;

Subparagraph (f ) of paragraph (4) of Rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting the current subparagraph (f) and replacing it with a new subparagraph (f) so that, as amended, the new subparagraph

shall read as follows:

(f) Ambient Air Increments. I n areas designated as class I, II, or III, increases in pollutant concentration over the baseline concentration shall be limited to the following:

MAXIMUM ALLOWABLE INCREASE (Micrograms per cubic meter)

Class I

Pollutant μ g/m 3

PM 2.5 :

Annual ar ithmetic mean 1

24

- hour m aximum 2

PM 10 :

PM

- 10 , Annual arithmetic mean 4

PM

- 10 , 24

- hour maximum 8

Sulfur dioxide:

Annual arithmetic mean 2

24

- hour maximum 5

3

- hour maximum 25

Nitrogen dioxide:

Annual arithmetic mean 2.5

Class II

PM 2.5 :

Annual arithmetic mean 4

24

- hour maximum 9

PM 10:

Annual arithmetic mean 17SS

- 7039 ( October 2011 ) RDA 1693 4 24

- hour maximum 30

Sulfur dioxide:

Annual arithmetic mean 20

24

- hour maximum 91

3

- hour maximum 512

Nitrogen dioxide:

Annual arithmetic mean 25

Class III

PM 2.5 :

Annual arithmetic mean 8

24

- hour maximum 18

PM 10 :

Annual arithmetic mean 34

24

- hour maximum 60

Sulfur dioxide:

Annual arithmet ic mean 40

24

- hour maximum 182

3

- hour maximum 700

Nitrogen dioxide:

Annual arithmetic mean 50

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

Part 3 of subparagraph (n) of paragraph (4) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting the current part 3 and replacing it with a new part 3 so that, as amended, the new part shall read as follows:

3. Class I Variances

The owner or operator of a proposed source or modification may demonstrate to the Federal Land Manager that the emissions from such source or modification would have no adverse impact on the air quality related values of any such lands (including visibility), notwit hstanding that the change in air quality resulting from emissions from such source or modification would cause or contribute to concentrations which would exceed the maximum allowable increases for a Class I area. If the Federal Land Manager

concurs with s uch demonstration and he so certifies, the Technical Secretary, provided that the applicable requirements of this paragraph are otherwise met, may issue the permit with such emission limitations as may be necessary as approved by the Tennessee Air Pollutio n Control Board to assure that
emissions of sulfur dioxide, particulate matter PM 2.5 , PM 10 , and nitrogen oxides would not exceed the following maximum allowable increases over baseline concentration for such pollutants:SS

- 7039 ( October 2011 ) RDA 1693 5 Pollutant Maximum Allowable

Increase ug/m 3

PM 2.5 : Annual arithmetic mean 4

24

- hr maximum 9

PM 10 :
Annual arithmetic mean 17

24

- hr maximum 30

Sulfur dioxide:

Annual arithmetic mean 20

24

- hr maximum 91

3

- hr maximum 325 Nitrogen dioxide:

Annual arithmetic mean 25

Subpa rt (xix) of part 1 of s ubparagraph ( b) of paragraph (5 ) of rule 1200

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- 09

- .01 Construction Permits is amended by deleting the current subpart (xix) and replacing it with a new subpart (xix) so that, as amended, the new subpart shall read as follows:

(xix ) “Significantly impact” means the contribution by a new stationary source or modification to the air quality in a nonattainment area in concentrations equal to or greater than the amount as follows:

Pollutant Annual Averaging Time (hours)

24 8 3 1

SO 2 1.0 μg/m 3 5 μg/m 3 25 μg/m 3

PM 10 1.0 μg/m 3 5 μg/m 3

PM 2.5 0.3 μg/m 3 1.2 μg/m 3

NO 2 1.0 μg/m 3

CO 500 μg/m 3

0.5 mg/m 3 2000 μg/m 3

2 mg/m 3

Authority: T.C.A. §§ 68

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- 101 et seq. and 4

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- 201 et seq.SS

- 7039 ( October 2011 ) RDA 1693 6 * If a roll

- call vote was necessar y, the vote by the Agency on these rulemaking hearing rules was as follows:

Board Member Aye No Abstain Absent Signature (if required)

Dr. J. Ronald Bailey

Elaine Boyd

Dr. Brian

W.Christman

Karen Cisler

Dr. Wayne T. Davis

Stephen R. Gossett

Mayor Tommy

Green

Dr. Shawn A.

Hawkins

Helen Hennon

Richard M. Holland

John Roberts

Mayor Larry Waters

Jimmy West

Alicia M. Wilson

I certify that this is an accurate and co mplete copy of rulemaking hearing rules, lawfully promulgated and adopted by the Air Pollution Control Board on 12/12/2012 , and is in compliance with the provisions of T

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- 7039 ( October 2011 ) RDA 1693 7 I further certify the following:

Notice of Rulemaking Hearing fil ed with the Department of State on: 10/03/12

Rulemaking Hearing(s) Conducted on: (add more dates). 12/04/12

Date:

Signature:

Name of Officer: Barry R. Stephens

Title of Officer: Technical Secretary

Subscribed and sworn to before me on :

Notary Public Signature:

My commission expires on:

All rulemaking hearing rules provided for herein have been examined by the Attorney General and Reporter of the State of Tennessee and are approved as to legality pursuant to the provisions of the Administr ative Procedures Act, Tennessee Code Annotated, Title 4, Chapter 5.

______________________________ Robert E. Cooper, Jr. Attorney General and Reporter

______________________________ Date

Department of State Use Only

Filed with the Departmen t of State on:

Effective on:

______________________________ Tre Hargett Secretary of State

Rm09

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- 7039 ( October 2011 ) RDA 1693 8 Public Hearing Comments

One copy of a document containing responses to comments made at the public hearing must accomp any the filing pursuant to T.C.A. § 4

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- 222. Agencies shall include only their responses to public hearing comments,

which can be summarized. No letters of inquiry from parties questioning the rule will be accepted. When no comments are received at the p ublic hearing, the agency need only draft a memorandum stating such and include it with the Rulemaking Hearing Rule filing. Minutes of the meeting will not be accepted. Transcripts are not acceptable.

There were no official comments received during the pu blic comment period , but Twunjala Bradley with EPA Region 4 made some verbal comments

. We received a letter from Scott Davis, Chief of the Air Planning Branch at EPA Region 4, containing those comments formally after the close of the comment period, althou gh it was postmarked the last day of the comment period. Because the comments were relevant, the proposed rule was revised prior to the hearing and the changes were read into the official record. The comments are summarized

below.

Comment 1: The Class I v ariance provision at 1200

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- .01(4)(n)3 does not include the PM 2.5 increments pursuant to the provisions at 51.166(p)(4) regarding Class I variances. The EPA recommends that Tennessee revise the Class I variance regulations to include the PM2.5 maximum allowable increases to be consistent with the federal regulations. In addition, the Term “particulate matter” should be revised to read “PM2.5,

PM10.”

Response: These changes were made.

Comment 2: Regarding the definition of baseline date at 1200

- 03

- 09

-

. 01(4)(b)15(i) and (ii)(I), the EPA recommends that Tennessee revise the phrase “...in the case of particulate matter...” to “...in the case of

PM10...”

Response: These changes were made.

Comment 3: Regarding the revision at 1200

- 03

- 09

- .01(4)(d)6(i)(III) to adopt the SMC of 4 micrograms per cubic meter into the Tennessee SIP, TDEC explains that they are deleting the current item (III) and replacing it with a new item (III); however, the new item is incorrectly labeled as item (I).

Response: This correction has be en made.

Comment 4: Regarding the proposed state implementation plan (SIP) revision at 1200

- 03

- 09

- .01(5)(b)1(xix)

– Significantly Impact to adopt PM 2.5 SILs, the EPA’s authority to implement the PM2.5 SILS and SMC for PSD purposes as promulgated in the O ctober 20, 2010 ( Federal Register , sic), has been challenged by the
Sierra Club, Sierra Club v. EPA , Case No 10

- 1413 United States Court of Appeals for the District of Columbia. Due to the litigation, the EPA is not taking action to approve the PM 2.5 SILs into the SIP at this time.

Response: The Department has chosen to retain this provision in our state regulations with the understanding that EPA Region 4 will not take action to approve them into the SIP unless the referenced case is resolved in

EPA’s fav or.SS -7039 (October 2011) RDA 1693 9 Regulatory Flexibility Addendum Pursuant to T.C.A. §§ 4-5-401 through 4-5-404, prior to initiating the rule making process as described in T.C.A. § 4-5-202(a)(3) and T.C.A. § 4-5-202(a), all agencies shall conduct a review of whether a proposed rule or rule

affects small businesses.

The foregoing amendments to Rule 1200- 03

- 09

- .0 1 are to comply with § 110 and 172(c) of the federal Clean Air

Act

. These amendments relate to the New Source Review Program, which is a mandatory element of the required State Implementation Plan under the Clean Air Act, therefore, this rulemaking is exempt from the requirements of T.C.A. § 4-5-401 et seq.SS -7039 (October 2011) RDA 1693 10 Impact on Local Governments

Pursuant to T.C.A. §§ 4-5-220 and 4-5- 228 “any rule proposed to be promulgated shall state in a simple declarative sentence, without additional comments on the merits of the policy of the rules or regulation, whether the rule or regulation may have a projected impact on local governments.” (See Public Chapter Number 1070 (http://state.tn.us/sos/acts/106/pub/pc1070.pdf) of the 2010 Session of the General Assembly)

These proposed rule revisions will not have a projected impact on local governments.SS

- 7039 ( October 2011 ) RDA 1693 11 Additional Information Required by Joint Government Operations Committee

All agencies , upon filing a rule, must also submit the following pursuant to T

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(A) A brief summary of the rule and a description of all relevant changes in previous regulations effectuated by
such rule;

These revisions add fine particulate matter ( PM 2.5 ) increments to the requirements for New Source Review

. They also add maximum allowable increases of PM 2.5 over baseline concentration s for Class I variances and revise the current baseline dates for particulate matter to those for PM 10 . These changes are being made to make Tennessee’s New Source Review regulations consistent with the federal and other state regulations.

(B) A citation to and brief description of any federal law or regulation or any state law or regulation mandating promulgation of such rule or establishing guidelines relevant thereto;

Changes to Rule 1200

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- .01 Construction Permits are mandated by 40 CFR Part 51.165(a)(2)(i) and (ii) and 40 CFR Part 51.166(a)(7)(iv).

(C) Identification of persons, organizations, corporations or govern mental entities most directly affected by this rule, and whether those persons, organizations, corporations or governmental entities urge adoption or rejection of this rule;

Owners and operators of major sources of air pollution are affected by changes to Rule 1200

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- .01

Construction Permits.

(D) Identification of any opinions of the attorney general and reporter or any judicial ruling that directly relates to
the rule;

The Department is not aware of any.

(E) An estimate of the probable increase or decrea se in state and local government revenues and expenditures, if any, resulting from the promulgation of this rule, and assumptions and reasoning upon which the estimate is based. An agency shall not state that the fiscal impact is minimal if the fiscal impa ct is more than two percent (2%) of the agency's annual budget or five hundred thousand dollars ($500,000), whichever is less;

The Tennessee Air Pollution Control Board is not aware of any

.

(F) Identification of the appropriate agency representative or re presentatives, possessing substantial knowledge and understanding of the rule;

Lacey J. Hardin

Division of Air Pollution Control
9th Floor, L & C Annex

401 Church Street
Nashville, Tennessee 37243

- 1531

(G) Identification of the appropriate agency represe ntative or representatives who will explain the rule at a scheduled meeting of the committees;

Alan M. Leiserson Legal Services Director, Office of General Counsel Tennessee Department of Environment and Conservation

20 th Floor, L & C Tower
Nashville, T N 37243

- 1548

(H) Office address

, telephone number

, and email address of the agency representative or representatives who will explain the rule at a scheduled meeting of the committees; andSS -7039 (October 2011) RDA 1693 12 Legal Services Director, Office of General Counsel Tennessee Depa rtment of Environment and Conservation

20 th Floor, L & C Tower
Nashville, TN 37243

- 1548 (615) 532

- 0131 Alan.Leiserson@tn.gov

(I) Any additional information relevant to the rule proposed for continuation that the committee requests.

The Board is not aware of any.