# ADEQ

A R K A N S A S Department of Environmental Quality September 12, 2014 Wren Stenger Director Multimedia Planning and Permitting Division U.S. Environmental Protection Agency Region 6 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733 RE: Memorandum ofAgreement for Implementation and Enforcement ofStandards Delegatedunder Section 112 ofthe CleanAir Act Dear Ms. Stenger: Enclosed is the Memorandum ofAgreement (MOA) regarding the Delegation ofCleanAir Act Section 112 Standards. The development and negotiationMOA has been closely coordinated with Region 6personnel, primarily Richard Bartley and Richard Barrett. Itis our understanding that with the signature ofthe MOA, the Delegation ofSection 112 Standards previously requested by the Arkansas Department ofEnvironmental Quality can proceedto approval and publication in the Federal Register. Ifthere should be any questions regarding this matter, please do not hesitate to contact me. Sincerely,

# u~ Mike Bates Chief Air Division Encl Cc: Tammy Harrelson, Interim Deputy Director Stuart Spencer, Legal PolicyAdvisor Tony Davis, Planning Branch Manager, Air Division ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY 5301 NORTHSHORE DRIVE I NORTH LITTLE ROCK I ARKANSAS 72118-5317 I TELEPHONE 501-682-0744 I FAX 501-682-0880 www.adeq.stote.or.us

### Memorandum ofAgreementbetweenthe Arkansas Department ofEnvironmental Quality and the United StatesEnvironmental ProtectionAgency, Region 6 Regardingthe Implementation and Enforcement ofStandards Delegated Under Section 112 ofthe CleanAir Act The purpose ofthis Memorandwn ofAgreement (MOA) is to facilitate the straight delegation by the United States Environmental Protection Agency (EPA), Region 6, to the Arkansas Department of Environmental Quality (ADEQ) of certain standards promulgated by EPA under Section 112 of the Clean Air Act (CAA). This MOA sets forth specific expectations and responsibilities of EPA and ADEQ, and describes the mechanism to be used by ADEQ for the implementation and enforcement of the delegated standards. It also describes the procedure for cooperative information sharing between ADEQ and EPA Region 6. ADEQ and EPA recognize that timely implementation and enforcement of the delegated standards is vital to the success ofboththe Section 112 andTitle V programs. ADEQ and EPA Region 6 affirm their commitmentto an effective partnership and agree to review this MOA as the need arises. ADEQ has requested EPA's delegation of authority and approval of the mechanism used for the implementation and enforcement ofcertain emission standards and other requirements promulgated by EPA under CAA section 112 (codified at 40 C.F.R. Part 63, hereinafter referred to as "Part 63 standards"). ADEQ has not requested, and at this time does not intend to request, delegation ofthe accidental release program under CAA section 112(r) nor Part 63 standards applicable to area sources not required to obtain a Title Vpermit. This MOA addresses only those provisions and responsibilities for which ADEQ has requestedEPA'sapproval. Background CAA section 112 requires EPA to develop National Emission Standards for Hazardous Air Pollutants (NESHAPs), and CAA section 112(1) authorizes EPA to delegate the authority for the enforcement and implementation ofPart 63 standards promulgated under CAA section 112 to any State that applies for such delegation which demonstrates that it has in place a program that meets the criteria set forth in CAA section 112(1) and its implementingregulations at40 C.F. R. § 

### 63.91. In a Federal Register notice dated September 8, 1995, EPA Region 6promulgatedfinal interim approval ofthe Arkansas Operating Permit Program. 

### See 60 Fed. Reg. 46771. EPA granted full approval ofthe Arkansas Operating Permit Program onOctober 9, 2001. 

### See 66 Fed. Reg. 51312. As such, ADEQ met the up-front approval criteria for delegation ofunchanged Part 63 standards, as set forth in 40 C.F.R. § 63.9l(d). By letter dated July 7, 2010, ADEQ requested EPA's delegation ofauthority and approval ofthe mechanism it intends to use to implement and enforce the delegated Part 63 standards

- that is, through its EPA-approved Title V Operating Permit Program (the effective date ofthe latest approved revision is November 8, 2004; see 40 C.F.R. Part 70, Appendix A). The Operating Permit Program incorporates all applicable CAA requirements and designated State-only requirements within onepermit (hereinafter referred to as the "Title V permit"). As such, ADEQ has requested EPA's approval ofits mechanism to implement and enforce Part 63 standards applicable to Title V sources (hereinafter, "delegated Part 63 standards"), by including such standards in Title V permits when they are issued or updated, as more specifically described in this MOA. The authority to act on ADEQ's request has been delegated to the Director ofthe MultimediaPlanning and PermittingDivisionin EPA Region 6. 1Policy Statement ADEQ and EPA Region 6 hereby establish a process for the implementation and enforcement ofthe delegated Part 63 standards. ADEQ plans to implement and enforce the delegated Part 63 standards pursuant to this MOA through its EPA-approved Title V Operating Permit Program. Pursuant to Arkansas Code Annotated § 8-4-302 etseq., ADEQ has authority to include Part 63 standards in Title V permits for existing sources and new sources. Both ADEQ and EPA Region 6 recognize that ADEQ's ability to implement and enforce a delegated Part 63 standard in a timely manner will depend upon its having access to information regarding such standard prior to the final promulgation of such standard. Therefore, the process should be an interactive, information-sharing process that will begin priorto the promulgation by EPA ofany new or revised Part 63 standard. EPA Region 6 retains responsibility for implementation and enforcement ofPart 63 standards for nonTitle V sources, and Title V sources for which ADEQ may decline to accept implementation and enforcement authority orrelinquish that authority. ADEQ must ensure that all applicable Part 63 standards are included in the appropriate federally enforceable permit. EPA Region 6 and ADEQ agree to implementthe following procedures: I. Within 180 days offinal signature ofthis MOA, EPA Region 6 intends to send a Direct Final Rule and a Proposed Rule to the office ofthe Federal Register in regard to EPA's delegation ofauthority and approval ofADEQ's implementation and enforcement mechanism for the delegated Part 63 standards. II. Prior to final promulgation ofa new or revised Part 63 standard, EPA Region 6 agrees to provide ADEQ with any available information regarding the potential timing for issuance specificto such standard. Ill. Withinforty-five ( 45) days ofEPA'sfinal promulgation ofa new orrevised Part 63 standard, ADEQ shall notify EPA Region 6 if it does not intend to implement and enforce such standard, as it applies to sources subject to the EPA-approved Title V Operating Permit Program in Arkansas. IV. Following final promulgation by EPA ofa new or revised Part 63 standard, EPA Region 6 agrees to provide ADEQ with: A. All applicable forms and other supporting resources, ifavailable; and B. Access to the applicable Maximum Achievable Control Technology (MACT) database. See www.epa.gov/ttn/atw/eparules.html V. Implementation and Enforcement. The implementation and enforcement ofthe delegated Part 63 standards will be carried out as follows: A. Afterthe effective date ofthe federal rulemaking referenced in I. above, ADEQ will have the authority to implement and enforce the delegated Part 63 standards upon incorporation into a source's Title V permit. The existing Part 63 standards for which 2ADEQhasrequested EPA's approval to implement and enforce are attached as Appendix Atothis MOA. B. Upon EPA'spromulgationofa new orrevised Part 63 standard that is applicable to Title V sources, the implementation and enforcement of such standard shall be automatically delegated to ADEQ upon incorporation ofsuch standard into the source's Title V permit, consistent with the timeframe specified in Arkansas Pollution Control & Ecology CommissionReg. No. 26.1011 for reopening and revising pennits. Revisions to theTitle V pennits by ADEQ shall be made no later than the ftrst compliance date of that standard. C. For the construction ofa new source that will be subject to an existing Part 63 standard, ADEQ will incorporate the Part 63 standard into the applicable federally-enforceable pennit. D. For all existing sources subject to delegated Part 63 standards that have already been promulgated as of the date ofthis MOA, ADEQ shall incorporate the requirements of such standards into the source's Title V pennit. ADEQ agrees to use its best efforts to issue all Title V pennits for sources subject to 2, 4, 7, and existing 1 0-year MACT standards six (6) months from the effective date oftheFinal Rule addressed at I. above. VI. Timing and Scope. The issuance of the Title V pennit incorporating a delegated Part 63 standard is the mechanism whereby ADEQ's implementation and enforcement authority for the delegated standard becomes effective for that source. The implementation and enforcement authorities for delegated Part 63 standards include those provisions found in 40 C.F.R. § 63.9!(g), as amended by 65 Fed. Reg. 55810 (September 14, 2000), and by any subsequentamendmentsthereto which are identifiedas Category IAuthorities. VII. Relinquishing Authority. Upon written notification to EPA Region 6, ADEQ may relinquish the implementation and enforcement authority for a delegated Part 63 standard or portion thereof. ADEQ relinquishment ofsuch authority may include, but is not limited to: EPA's amendment of the delegated Part 63 standard; resource constraints; and changes in EPA policy orinterpretation ofthe delegated Part 63 standard. ADEQ shall provide EPA Region 6 a reasonable period oftime betweenthe written notice andthe date thatADEQ relinquishes its authority, and this periodoftime should be no less than 30days. VIII. ADEQ shall be responsible for implementing and enforcing the delegated Part 63 standards throughout the State of Arkansas. Such implementation and enforcement shall include, as appropriate: A. Distributionofinitial notificationfonns provided by EPA Region 6to potentially affected sources; B. Receivinginitialnotifications andcompliance certifications from affected sources; C. Issuing orrevisingTitle Vpennits for affected sources as needed to include Part 63 standards; D. Specifying Part 63 standards as the underlying authority for penni!tenns and conditions, and assuring compliance with the same through implementation ofthe EPA-approved Title V OperatingPenni!Program for affected sources; 3E. Pursuing timely and appropriate enforcement actions, including the assessment of civil penalties, for violations ofthe delegated Part 63 standards included in Title V permits issuedby ADEQ; F. ADEQ shall renew the Title V permits in a timely manner so as not to allow any time period during which a source subject to a delegated Part 63 standard will be without a permit containing the requirements of the delegated Part 63 standard. ADEQ shall immediately notify EPA Region 6 in writing in the event that ADEQ is not able to timely reissue a Title Vpermit; G. After a delegated Part 63 standard has been incorporated into a source's Title V permit, all of the information required pursuant to the general provisions and the relevant subparts ofthe delegated Part 63 standards should be submitted by sources directly to the ADEQ. The ADEQ is the primary point of contact with respect to delegated Part 63 standards which have been incorporated in a source's Title V permit. For delegated Part 63 standards incorporated into a source's Title V permit, Region 6 waives the requirement that notifications and reports be submitted to EPA, in addition to ADEQ, in accordance with 40 C.F.R. §§ 63.9(a)(4)(ii) and 63.10(a)(4)(ii). Until a delegated Part 63 standardhas been incorporated into a source's Title Vpermit, the source mustcontinue to submit all appropriate informationto EPA; and H. Following the effective date of this delegation, ADEQ will only need to periodically submit a written request to EPA, Region 6, to update its approval ofthe delegation of authority to implement and enforce neworrevised Part 63 standardsthrough its approved Title V permitting program. In such request, ADEQ will reference the previous up-front approval demonstration and reaffirm that it still meets the up-front approval criteria. EPA will respond in writing to the request and take action in the Federal Register to inform the public and affected sources of EPA's decision and to update 40 C.F.R. 

### § 63.99(a)(4), amending the Arkansas table of delegated Part 63 standards being implemented and enforcedby ADEQ. IX. Following delegation of authority to ADEQ by EPA, nothing in this MOA or in any delegation of Part 63 standards or requirements shall prohibit EPA from enforcing any applicable emission standard orrequirementunderthe CAA. X. ADEQ will obtain concurrence from EPA Region 6 on any matter involving interpretation of Section 112 ofthe CAA or40 C.F.R. Part 63, to the extentthat interpretation, administration, or enforcement of those provisions are not covered by current EPA determinations or guidance. XI. At the request of the ADEQ on a case-by-case basis following the effective date of this agreement, EPA Region 6 shall use its best effortsto submitto ADEQ, in electronic format, a copy ofeach report, notification, or written request thathas been submittedto EPA Region 6 by a facility in Arkansas in accordance with a Part 63 standard. EPA Region 6 will also use its bestefforts to submitto ADEQ, at the request ofADEQ on a case-by-case basis following the effective date ofthis MOA, a copy ofany written response made by EPA Region 6 to aforementionedreports, notifications, or writtenrequests.

4The above agreement is effective upon the date the last signature required by this document is affixed. Any modifications ofthis document shall be made in writing only and upon approval by EPA Region 6 and ADEQ. This agreement does not create any right or benefit, substantive or procedural, enforceable by law or equity, by persons who are not party to this agreement, against ADEQ or EPA, their officers or employees, or any other person. This agreement does not direct or apply to any person outside ofADEQ and the EPA. Nothing in this agreement shall be construed to restrict in any way the authority ofthe EPA orADEQ to fulfill theirrespective responsibilities under State and/or Federal law.

Wren Stenger I Director MultimediaPlanning and

PermittingDivision United States Environmental ProtectionAgency

# ck~~ Teresa Marks Director Arkansas Department ofEnvironmental Quality Date

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### APPENDIXA DELEGATION STATUSFORPART 63 STANDARDS

- STATE OF ARKANSAS' The symbol "X"in the Table belowrepresents the40 C.F.R. Part 63 subparts for which ADEQis requesting delegation ofauthority to implement and enforce for sources subjectto the Title Vpermitting requirements. SUBPART SOURCECATEGORY ADEQ2

A General Provisions X F Hazardous Organic NESHAP (HON)

- Synthetic Organic Chemical X Manufacturing Industry (SOCMI) G HON

- SOCMIProcessVents, StorageVessels, TransferOperations and X Wastewater H HON -EquipmentLeaks X I HON- Certain Processes Negotiated EquipmentLeak Regulation X J Polyvinyl Chloride and Copolymers Production 

## ' K (Reserved) ........ L Coke Oven Batteries X M Perchloroethylene DryCleaning X N Chromium Electroplating and Chromium AnodizingTanks X 0 Ethylene Oxide Sterilizers X p (Reserved) 

### ........ 6

### Q Industrial ProcessCoolingTowers X R Gasoline Distribution X 

## s Pulp and PaperIndustry X T Halogenated Solvent Cleaning X 

## u Group TPolymersand Resins X 

## v (Reserved) 

### ........ 

## w EpoxyResins Production and Non-Nylon Polyamides Production X X SecondaryLead Smelting X y Marine TankVessel Loading X 

### z (Reserved) 

### .. ' ... '" AA PhosphoricAcid Manufacturing Plants X 

### BB Phosphate Fertilizers Production Plants X 

### cc PetroleumRefineries X DD Off-Site Waste and Recovery Operations X EE MagneticTape Manufacturing X FF (Reserved) ......... GG AerospaceManufacturingand Rework Facilities X lUI Oil andNatural GasProduction Facilities X

II Shipbuilding and ShipRepair Facilities X

7JJ Wood Furniture Manufacturing Operations X KK Printingand Publishing Industry X LL PrimaryAluminum Reduction Plants X MM Chemical Recovery Combustion Sources atKraft, Soda, Sulfide, and Stand- X Alone Semichemical Pulp Mills 

### NN (Reserved) 

### ......... 00 Tanks-Level I X 

### PP Containers X 

### QQ Surface Impoundments X RR Individual Drain Systems X 

## ss Closed Vent Systems, Control Devices, Recovery Devices and Routingto a Fuel X Gas System ora Process TT Equipment Leaks

- Control Level I X 

### uu EquipmentLeaks- Control Level 2 Standards X 

## vv Oil- Water Separatorsand Organic- Water Separators X 

## ww StorageVessels Cranks)- Control Level 2 X XX EthyleneManufacturing Process Units HeatExchange Systems and Waste X Operations 

### YY Generic MaximumAchievable Control Technology Standards X ZZ-BBB (Reserved) 

### .........

8CCC Steel Pickling- HCI ProcessFacilities and Hydrochloric Acid Regeneration X 

### DDD Mineral Wool Production X 

### EEE Hazardous Waste Combustors X FFF (Reserved) 

### ......... GGG Pharmaceuticals Production X HHH Natural GasTransmission and Storage Facilities X

Ill Flexible Polyurethane Foam Production X JJJ Group IV Polymers and Resins X KKK (Reserved) 

### ........ LLL Portland Cement Manufacturing X MMM Pesticide Active IngredientProduction X NNN Wool FiberglassManufacturing X 000 Amino/Phenolic Resins X ppp PolyetherPolyols Production X 

### QQQ Primary Copper Smelting X RRR SecondaryAluminum Production X 

## sss (Reserved) 

### .......... TTT PrimaryLead Smelting X 

## uuu Petroleum Refineries- Catalytic Cracking Units, CatalyticReforming Units and X SulfurRecovery Plants 9

## vvv PubliclyOwnedTreatmentWorks (POTW) X 

## www (Reserved) 

### ......... XXX Ferroalloys Production: Ferromanganese and Silicomanganese X AAAA Municipal Solid Waste Landfills X 

## ecce Nutritional YeastManufacturing X DODD Plywoodand Composite Wood Products 

## x' EEEE OrganicLiquids Distribution X FFFF Misc. Organic Chemical Production and Processes (MON) X GGGG SolventExtraction forVegetable Oil Production X 

### HHHH Wet Formed Fiberglass MatProduction X

!III Auto& LightDutyTruck (Surface Coating) X JJJJ Paperand other Web (SurfaceCoating) X KKKK Metal Can (Surface Coating) X MMMM Misc. Metal Parts and Products (Surface Coating) X NNNN Surface CoatingofLarge Appliances X 

### 0000 FabricPrinting Coatingand Dyeing X

pppp SurfaceCoatingofPlasticPartsand Products X 

### QQQQ SurfaceCoatingofWood BuildingProducts X RRRR SurfaceCoating ofMetal Furniture X

10

## ssss Surface CoatingofMetal Coil X TTIT LeatherFinishing Operations X 

## uuuu Cellulose Products Manufacturing X 

## vvvv BoatManufacturing X 

# wwww Reinforced Plastic Composites Production X



## xxxx Rubber Tire Manufacturing X yyyy Stationary Combustion Turbines X 

## zzz:z Reciprocating Internal Combustion Engines (RJCE) X AAAAA Lime Manufacturing Plants X BBBBB SemiconductorManufacturing X 

## ccccc Coke Ovens: Pushing, Quenchingand Battery Stacks X 

### DDDDD Industrial/CommerciaVInstitutional Boilers and Process Heaters 

## x' EEEEE Iron and Steel Foundries X FFFFF Integrated Iron and Steel X 

### GGGGG Site Remediation X HHHHH MiscellaneousCoating Manufacturing X IIIII MercuryCell Chlor-Alkali Plants X JJJJJ Brickand Structural ClayProducts Manufacturing 6 KKKKK Clay Ceramics Manufacturing 6

11LLLLL Asphalt Roofing and Processing X MMMMM Flexible Polyurethane Foam Fabrication Operation X

NNNNN Hydrochloric Acid Production, Fumed Silica Production X 00000 (Reserved) ..........

PPPPP Engine Test Facilities X 

### QQQQQ Friction Products Manufacturing X RRRRR Taconite Iron Ore Processing X 

## sssss Refractory Products Manufacture X TTTTT Primary Magnesium Refining X 

### uuuuu Coal and Oil-Fired Electric Utility Steam Generating Units 

## x' vvvvv (Reserved) 

### ......... 

## wwwww Hospital Ethylene Oxide Sterilizers 

### .........

XXXXX (Reserved) .......... 

### yyyyy Electric Arc Furnace Steelmaking Area Sources X 

## zzzzz Iron and Steel Foundries Area Sources 

### ......... AAAAAA (Reserved) .. " 

### ...... BBBBBB Gasoline Distribution Bulk Terminals, Bulk Plants, and Pipeline Facilities " 

### ....... CCC CCC Gasoline Dispensing Facilities 

### ......... DDDDDD Polyvinyl Chloride and Copolymers Production Area Sources ··········

12

### EEEEEE PrimaryCopper SmeltingArea Sources X 

### FFFFFF Secondary Copper SmeltingArea Sources X GGGGGG PrimaryNonferrous Metals Area Sources: Zinc, Cadmium, and Beryllium X 

### HHHHHH Paint Strippingand Miscellaneous Surface CoatingOperations atArea Sources 

## ......... IIIIII (Reserved) 

### .......... JJJJJJ Industrial, Commercial, and Institutional Boilers: Area Sources 

### ......... KKKKKK (Reserved) 

### ...... ". 

### LLLLLL Acrylic and Modacrylic Fibers Production Area Sources 

### ......... MMMMMM Carbon Black Production Area Sources X

NNNNNN Chemical Manufacturing Area Sources: Chromium Compounds X 000000 Flexible Polyurethane Foam Productionand FabricationArea Sources 

### ...... ".

pppppp Lead Acid BatteryManufacturingArea Sources 

### ......... 

### QQQQQQ WoodPreservingArea Sources ......... RRRRRR ClayCeramics Manufacturing Area Sources 

### .........



## ssssss Glass ManufacturingArea Sources X TTTTTT SecondaryNonferrous MetalsProcessing Area Sources 

## ········· uuuuuu (Reserved) 

### ......... 

## vvvvvv ChemicalManufacturingAreaSources X WWV.'WWW Plating and Polishing Operations Area Sources 

### .........

13

## xxxxxx Nine Metal Fabrication and FinishingCategories Area Sources ......... yyyyyy Ferroalloys Production Facilities Area Sources 

### .........



## zzzzzz Aluminum, Copper, and OtherNonferrous Foundries Area Sources 

### .......... AAAAAAA Asphalt Processing and Asphalt Roofing ManufacturingArea Sources 

### .......... BBBBBBB Chemical Preparations Industry Area Sources ""

### ...... 

## ccccccc Paints and Allied Products Manufacturing Area Sources 

### .......... DDDDDDD Prepared Feeds Manufacturing Area Sources ..........

EEEEEEE Gold Mine Ore Processing and Production Area Sources .......... FFFFFFF Reserved 

### .......... GGGGGGG Reserved 

### .......... HHHHHHH Polyvinyl Chloride and Copolymers Production X

1Program delegationto be carried out by Arkansas Department ofEnvironmental Quality (ADEQ) 2Authorities which may not be delegated include: §63.6(g), Approval ofAlternative Non-Opacity Emission Standards; §63.6(h)(9), Approval ofAlternative Opacity Standards; §63.7(e)(2)(ii) and (f), Approval ofMajor Alternativesto TestMethods; §63.8(f), Approval ofMajorAlternatives to Monitoring; §63.1O(f), Approval of MajorAlternativesto Recordkeeping and Reporting; and all authorities identified in the subparts (e.g., under "Delegation ofAuthority")thatcannot be delegated. 3 This subpartwas vacated and remanded to EPA bythe United States Court ofAppeals for the District of ColumbiaCircuit. See, Mossville EnvironmentalActionNetworkv. EPA, 370 F. 3d 1232 (D.C. Cir. 2004). 4 This subpartwas issued a partial vacatur on October29,2007 (72 FR 61060) by the United States Courtof Appeals for the District ofColumbia Circuit. 5 Final Rule. See 78 FR7138 (January 31, 2013). 6 This subpartwas vacated and remanded to EPA by the United States Court ofAppeals for the District of ColumbiaCircuit. See, Sierra Club v. EPA, 479 F. 3d 875 (D.C. Cir. 2007). 7Initial Final Rule, 77 FR9304 (February 16, 2012). Final on reconsideration ofcertain new source issues, 78 FR24073 (April24, 2013). Portions ofthis subpart are in proposed reconsideration pending final action. See 78 FR38001 (June 25, 2013). 14