SS

- 7039 ( Ju ly 2010 ) 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. TCA Section 4

- 5

- 205

Agency/Board/Commission: Environment and Conservation

Division: Air Pollution 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@gov.tn

Revision Type (chec k 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 ( Ju ly 2010 ) RDA 1693 2 (Place substance of rules and other info here. Statutory authority must be given for each rule change. For information on formatting rules go to http://state.tn.us/sos/rules/1360/1360.htm )

Chapter 1200

- 03

- 09 Construction and Operating Permits

Amendments In Redline

Subpart (i) of part 24. of su bparagraph (b) of paragraph (4) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by adding a new item (XVII) as follows:

(XVII) PM 2.5 : 10 tpy of direct PM 2.5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless de monstrated not

to be a PM 2.5 precursor under 40 CFR 51.166 and/or 40 CFR 51.165.

Part 47 of s ubparagraph (b) of paragraph (4) of rule 1200

- 03

- 09

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

follows:

(i) Any pollutant for which a national ambient air quality standard has been promulgated and any pollutant identified under this part as a constituent or precursor to such pollutant. Precurso rs identified by the Administrator for purposes of NSR are the following:

(I) Volatile organic compounds and nitrogen oxides are precursors to ozone

in all attainment and unclassifiable areas.

(II) Sulfur dioxide is a precursor to PM 2.5 in all attainment and unc lassifiable

areas.

(III) Nitrogen oxides are presumed to be precursors to PM 2.5 in all attainment and unclassifiable areas, unless the State has demonstrated to the

satisfaction of the EPA Administrator or EPA demonstrates that emissions of nitrogen oxides from sources in a specific area are not a significant contributor to that area’s ambient PM 2.5 concentrations.

(IV) Volatile organic compounds are presumed not to be precursors to PM 2.5 in any attainment or unclassifiable area, unless the State has

demonstrated to the satisfaction of the EPA Administrator or EPA demonstrates that emissions of volatile organic compounds from sources in a specific area are not a significant contributor to that area’s ambient

PM 2.5 concentrations.

Part 47 of s ubparagraph (b) of parag raph (4) of rule 1200

- 03

- 09

- .01 Construction Permits is also amended by adding a new subpart (vi) as follows:

(vi) Particulate matter (PM) emissions, PM 2.5 emissions, and PM 10 emissions shall include gaseous emissions from a source or activity which cond ense to form particulate matter at ambient temperatures. On or after January 1, 2011, such condensable particulate matter shall be accounted for in applicability determinations and in establishing emissions limitations for PM, PM 2.5 , and PM 10SS

- 7039 ( Ju ly 2010 ) RDA 1693 3 in PSD permit s. Compliance with emissions limitations for PM, PM 2.5 , and PM 10 issued prior to this date shall not be based on condensable particulate matter unless required by the terms and conditions of the permit or the applicable implementation plan. Applicability d eterminations made prior to this date without accounting for condensable particulate matter shall not be considered in violation of this paragraph unless the applicable implementation plan required condensable particulate matter to be included.

Subpart (v i) of part 4 of subparagraph (c) of paragraph (4) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting the last sentence so that, as amended, the subpart shall read:

(vi) Hybrid test for projects that involve multiple types of emissions unit s. A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each emissions unit, using the method specified in subparts (c)4.(iii) through (iv) of this paragraph as applicable with

respe ct to each emissions unit, for each type of emissions unit equals or exceeds the significant amount for that pollutant (as defined in part (b)24. of this paragraph).

Subpart (iv) of part 6 of subparagraph (d) of paragraph (4) of rule 1200

- 03

- 09

- .01 Constr uction Permits is amended by deleting the period at the end of the subpart and adding a semicolon (;) followed by the word “or” so that, as amended, the subpart shall read:

(iv) The existing air pollutant levels are conservatively estimated to be less tha n the concentrations listed in subpart (i) of this part, and a monitoring network may not reliably measure the predicted background concentrations ; or

Part 6 of subparagraph (d) of paragraph (4) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by a dding a new subpart (v) as follows:

(v) The concentrations of the pollutant in the area that the source or modification would affect are less than the concentrations listed in subpart (d)6.(i) of this paragraph.

Item (I) of subpart (x) of part 1 of subpa ragraph (b) of paragraph (5) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by adding a new subitem VII as follows:

VII PM 2.5 : 10 tpy of direct PM 2.5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless

demonstr ated not to be a PM 2.5 precursor under 40 CFR 51.166

and/or 40 CFR 51.165.

Subpart (xlix) of part 1 of subparagraph (b) of paragraph (5) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting item (III) and replacing it with a new item (III) a nd (IV) as follows:

(III) Any pollutant that is a constituent or precursor of a general pollutant listed under items 1.(xlix)(I) or (II) of this subparagraph, provided that a constituent or precursor pollutant may only be regulated under NSR as part of re gulation of the general pollutant. Precursors for purposes of NSR are the following:

I Volatile organic compounds and nitrogen oxides are precursors

to ozone in all ozone nonattainment areas.

II Sulfur dioxide is a precursor to PM 2.5 in all PM 2.5 nonat tainment

areas.SS

- 7039 ( Ju ly 2010 ) RDA 1693 4 III Nitrogen oxides are presumed to be precursors to PM 2.5 in all

PM 2.5 nonattainment areas, unless the State demonstrates to the

satisfaction of the EPA Administrator or EPA demonstrates that emissions of nitrogen oxides from sources in a specific area are not a significant contributor to that areas ambient PM 2.5 concentrations.

IV Volatile organic compounds and ammonia are presumed not to be precursors to PM 2.5 in any PM 2.5 nonattainment area, unless

the State demonstrates to the satisf action of the EPA

Administrator or EPA demonstrates that emissions of volatile organic compounds or ammonia from sources in a specific area are a significant contributor to that area’s ambient PM 2.5 concentrations; or

(IV) PM 2.5 emissions and PM 10 emissio ns shall include gaseous emissions from a source or activity which condense to form particulate matter at ambient temperatures. On or after January 1, 2011, such condensable particulate matter shall be accounted for in applicability determinations

and in e stablishing emissions limitations for PM 2.5 and PM 10 in nonattainment major NSR permits. Compliance with emissions

limitations for PM 2.5 and PM 10 issued prior to this date shall not shall not be based on condensable particulate matter unless required by th e terms and conditions of the permit or the (Tennessee) State Implementation Plan. Applicability determinations made prior to this date without accounting for condensable particulate matter shall not be considered in

violation of this rule unless the State Implementation Plan required condensable particulate matter to be included.

Subpart (v) of part 2 of subparagraph (b) of paragraph (5) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by inserting a period after “Offsets”, adding language after the period, and adding a new item (X V ) so
that, as amended, the subpart shall read:

(v) Emissions Offsets . In meeting the emission offset requirements of this paragraph, the ratio of total actual emissions reductions to the emissions

increase shall be at lea st 1:1 unless an alternative ratio is provided for the applicable nonattainment area in items (III), (IV) and (XIV) of this subpart.

(I) Prior to the issuance of a permit under this sub

- part, legally enforceable

emission offsets shall be obtained from the same source or other

sources in the same non

- attainment area, except that such emissions reduction may be obtained from a source in another non

- attainment area

if:

I. The other area has an equal or higher non

- attainment

classification than the area in w hich the source is located; and,

II. Emissions from such other area contribute to a violation of an air quality standard in the non

- attainment area in which the proposed new or modified source would construct.

(II) By the time that the new or modified s ource commences operation, such reductions shall be in place such that the total tonnage of emissions of any applicable non

- attainment air contaminant allowed from the proposed new source, or net emissions increase from the modification, shall be offset by an equal or greater reduction, as applicable, in the

actual emissions of such air contaminant from the same or other

sources.SS

- 7039 ( Ju ly 2010 ) RDA 1693 5 (III) In meeting the requirements of item (v)(II) of the sub

- part for ozone non

attainment areas that are subject to subpart 2, part D, title I of the Clean
Air Act, the ratio of total actual emission reductions of Volatile Organic Compounds and/or Nitrogen Oxides to the net emissions increase of Volatile Organic Compounds and/or Nitrogen Oxides shall be as follows:

I. In any Mar ginal non

- attainment area for ozone

- at least 1.1 to 1;

II. In any Moderate non

- attainment area for ozone

- at least 1.15 to
1;

III. In any Serious non

- attainment area for ozone

- at least 1.2 to 1;

IV. In any Severe non

- attainment ar ea for ozone

- at least 1.3 to 1;

V. In any Extreme non

- attainment area for ozone

- at least 1.5 to 1.

(IV) Within an ozone transport region that is subject to subpart 2, part D, title I

of the Clean Air Act , for any area designated for ozone attainment, unclassified, or Marginal non

- attainment, the ratio of total actual emission reductions of Volatile Organic Compounds and/or Nitrogen Oxides to net emissions increase of Volatile Organic Compounds and/or Nitrogen

Oxides shall be at least 1. 1 5 to 1.

(V) I. Emissions reduct ions achieved by shutting down an existing

emission unit or curtailing production or operating hours may be generally credited for offsets if they meet the requirements in

sections IA and B of this item.

A. Such reductions are surplus, permanent, quantifi able, and federally enforceable.

B. The shutdown or curtailment occurred after the last day of the base year for the SIP planning process. For purposes of this paragraph, the Technical Secretary may choose to consider a prior shutdown or curtailment to

ha ve occurred after the last day of the base year if the projected emissions inventory used to develop the attainment demonstration explicitly includes the emissions from such previously shutdown or curtailed emission units. However, in no event may credit b e given for shutdowns that occurred before August 7,

1977.

II. Emissions reductions achieved by shutting down an existing emissions unit or curtailing production or operating hours and that do not meet the requirements in section IB of this item may be ge nerally credited only if:

A. The shutdown or curtailment occurred on or after the date the construction permit application is filed; or

B. The applicant can establish that the proposed new emissions unit is a replacement for the shutdown orSS

- 7039 ( Ju ly 2010 ) RDA 1693 6 curtailed e missions unit, and the emissions reductions achieved by the shutdown or curtailment met the requirements of section IA of this item.

(VI) With respect to a proposed increase in VOC emissions, no emissions credit shall be allowed for reductions in any orga nic compound specifically excluded from the definitions of “VOC” in this Division 1200

- 3.

(VII) Credit for an emissions reduction may be claimed to the extent that the reduction has not been relied on in any permit already issued under regulations approve d pursuant to 40 CFR Parts 51, 52, and 70,(July 1, 1993) or the State has not relied on it in demonstrating attainment or reasonable further progress. Incidental emissions reductions which are not otherwise required under the federal Clean Air Act (As ame nded November 15, 1990) may be credible as emissions reductions for such purposes if such emissions reductions meet the applicable requirements of this part.

(VIII) Procedures relating to the permissible locations of offsetting emissions

shall be followed which are at least as stringent as those set out in 40 CFR Part 51, Appendix S, Section IV.D. (July 1, 1993 ).

(IX) Reserved.

(X) Reserved.

(XI) The total tonnage of increased emissions, in tons per year, resulting from a major modification that must b e offset in accordance with section 173 of the Federal Clean Air Act shall be determined by summing the difference between the allowable emissions after the modification (as defined by sub

- part 1.(xi) of this subparagraph) and the actual emissions

before t he modification (as defined in sub

- part 1.(xiii) of this subparagraph) for each emissions unit.

(XII) Where the emissions limit under this division 1200

- 0 3 allows greater emissions than the potential to emit of the source, emissions offset credit

will be allowed only for control below this potential;

(XIII) For an existing fuel combustion source, credit shall be based on the

allowable emissions under this division 1200

- 0 3 for the type of fuel being burned at the time the application to construct is filed. If the existing source commits to switch to a cleaner fuel at some future date, emissions offset credit based on the allowable (or actual) emissions for the fuels involved is not acceptable, unless the permit is conditioned to require the use of a specified alte rnative control measure which would achieve the same degree of emissions reduction should the source switch back to a dirtier fuel at some later date. The Technical Secretary shall ensure that adequate long

- term supplies of the new fuel are

available befor e granting emissions offset credit for fuel switches

(XIV) Within an ozone non

- attainment area that is subject to subpart 1, part D, title I of the Clean Air Act (but is not subject to subpart 2, part D, title I of the Act, including 8

- hour ozone non

- attainment areas subject to 40 CFR 51.902(b)), the ratio of total actual emissions reductions of either volatile organic compound or nitrogen oxides to the emissions increase of either volatile organic compounds or nitrogen oxides shall be at least 1:1.SS

- 7039 ( Ju ly 2010 ) RDA 1693 7 (XV) In m eeting the emissions offset requirements of this subpart for fine particulate matter (PM 2.5 ), the emissions offsets obtained shall be for the same regulated NSR pollutant unless interprecursor trading is allowed in the approved State Implementation Plan (S IP) for the affected PM 2.5 nonattainment area. For those nonattainment areas in which interprecursor trading is allowed by the approved SIP, the offset requirements for direct PM 2.5 emissions or emissions of precursors of

PM 2.5 to may be satisfied by offse tting reductions in direct PM 2.5 emissions or emissions of any PM 2.5 precursor identified under item (b)1.(xlix)(III) of this paragraph if such offsets comply with the interprecursor trading hierarchy and ratio established in the approved

SIP for the affec ted nonattainment area.

Subpart (xvii) of part 2 of subparagraph (b) of paragraph (5) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting the last sentence so the subpart reads as follows:

(xvii) Hybrid test for projects that involve mul tiple types of emissions units. A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each emissions unit, using the method specified in subparts 2.(xiv) through (xv) of this subparag raph as applicable with respect to each emissions unit, for each type of emissions unit equals or exceeds the significant amount for that pollutant (as defined in subpart 1.(x) of this subparagraph).

Authority: T.C.A. §§68

- 201

- 105SS

- 7039 ( Ju ly 2010 ) RDA 1693 8 * If a roll

- c all vote was necessary, the vote by the Agency on these rulemaking hearing rules was as follows:



### Board Member Aye No Abstain Absent Signature (if required)



### Michael Atchison

Dr. J. Ronald Bailey

Tracy R. Carter

Dr. Brian

Christman

Dr. Wayne T.

Davis

Dr. Mary English

Stephen R.

Gossett

Honorable Mayor Tommy Green, Jr.

Dr. Shawn A.

Hawkins

Helen S. Hennon

Richard M.

Holland

John R. Roberts,

Sr.

Alicia M. Wilson

Honorable Mayor

Larr y Waters

I certify that this is an accurate and complete copy of rulemaking hearing rules, lawfully promulgated and adopted by the Air Pollution Control (board/commission/ other authority) on 12/ 08 /2010 (mm/dd/yyyy), and is in compliance with the p rovisions of TCA 4

- 5

- 222.SS

- 7039 ( Ju ly 2010 ) RDA 1693 9 I further certify the following:

Notice of Rulemaking Hearing filed with the Department of State on: (09/22/10 )

Rulemaking Hearing(s) Conducted on: (add more dates). ( 11/17/10 )

Date:

Signature:

Name of Officer: Barry R . Stephens, P.E.

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 Repo rter of the State of Tennessee and are approved as to legality pursuant to the provisions of the Administrative 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 Department of State on:

Effective on:

______________________________ Tre Hargett Secretary of State

Rm 09

-

. 01c9redline .docSS

- 7039 ( Ju ly 2010 ) RDA 1693 10 Public Heari ng Comments

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

- 5

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

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

Commenter: The proposed revision to 1200

- 3

- 9

- .01(5)(b)2(v)(XV) does not allow emissions of sulfur dioxide or

nitrogen oxides (determined by EPA to be precursors to PM2.5) to be used as offsets for

increa ses in direct PM 2.5 emissions as allowed by 40 CFR 51.165(a)(11). Eastman believes the SIP should include the option to offset direct PM 2.5 emissions with sulfur dioxide or nitrogen oxide

emissions.

Response: The Division has revised the proposed rule a s follows: In meeting the emissions offset

requirements of this subpart for fine particulate matter (PM 2.5 ), the emissions offsets obtained shall be for the same regulated NSR pollutant unless interprecursor trading is allowed in the approved State Implem entation Plan (SIP) for the affected PM 2.5 nonattainment area. For those nonattainment areas in which interprecursor trading is allowed by the approveed SIP, the offset requirements for direct PM 2.5 emissions or emissions of precursors of PM 2.5 to may be s atisfied by offsetting reductions in direct PM 2.5 emissions or emissions of any PM 2.5 precursor identified under item (b)1.(xlix)(III) of this paragraph if such offsets comply with the interprecursor trading hierarchy and ratio established in the approved SIP for the affected nonattainment area.

Commenter: On Page 23, item (i)(IV) for the definition of "regulated NSR pollutant", in the last sentence

-

"...specific area are not a significant contributor..." please revise the sentence so it reads, “...spe cific area are a significant contributor..."

Response: This change has been made.

Commenter: The new items (4)(b)24.(i)(XVII) and (5)(b)1.(x)(I)VII on pages 15 and 60 respectively,

reference “ 40 CFR 51.166 and/or 40 CFR 51.165.” We suggest referencin g Tennessee’s corresponding provision for attainment and nonattainment areas as follows: (XVII)PM 2.5 : 10 tpy of direct PM 2.5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide

emissions unless demonstrated not to be a PM 2.5 precursor under 40 CFR 51.166 and/or 40

CFR 51.165 47.(i)(III) of this subparagraph (b). (VII) PM 2.5 : 10 tpy of direct PM 2.5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless demonstrated not to be a PM2.5 precursor under 40 CFR 51.166 and/or 40 CFR 51.165 1.(xlix)(III)III of this subparagraph (b).

Response: These changes have been made.

Commenter: In the Notice of Proposed rulemaking, (bottom of page 4) it states “Subpart (xlix) of part 1 of

subparagraph (b) of paragraph (5) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting item (III) and replacing it with a new item (III) as follows:.” Please note that a new item (IV) was also added.

Response: This was noted at the public hearing.SS

- 7039 ( Ju ly 2010 ) RDA 1693 11 Commenter: On Pa ge 72, item (5)(b)1.(xlix)(III)III, for the definition of "regulated NSR pollutant” bottom of the

page, p lease correct the typographical error by changing the second use of the word “areas” to the possessive form "area's"

.

Response: Corrected.

Commente r: On Page 72, item (IV) for the definition of "regulated NSR pollutant", please correct the

typographical error by deleting the duplicate "shall not" in the sentence that begins with "Compliance with emissions..."

Response: Corrected.

:

Commenter: The Chamber supports the comments submitted by Eastman Chemical Company dated

November 3, 2010.

Response: See the response to the comments from Eastman Chemical Company.SS

- 7039 ( Ju ly 2010 ) RDA 1693 12 Regulatory Flexibility Addendum

Pursuant to T.C.A. § 4

- 5

- 401 through 4

- 5

- 404 , prior to i nitiating 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.

Small businesses considered to be minor sources under the New Source Review regulations in this chapter will not be impacted by these revisions.SS

- 7039 ( Ju ly 2010 ) RDA 1693 13 Impact on Local Governments

Pursuant to T.C.A. 4

- 5

- 220 and 4

- 5

- 228 “any rule proposed to be promulgated shall state i n 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)

Most local government sources are considered to be minor sources under the New Source Review regulations in this chapter and will not be impacted by these revisions. If a local gover nment source is considered major under these provisions, minimal impact is anticipated.SS

- 7039 ( Ju ly 2010 ) RDA 1693 14 Additional Information Required by Joint Government Operations Committee

All agencies, upon filing a rule, must also submit the following pursuant to TCA 4

- 5

- 226(i)(1 ).

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

This rule amendment incorporates the changes required by the United States Environmental Protection Agency

to insure that Tennessee can attain and maintain the National Ambient Air Quality Standards for fine particulate matter (PM 2.5 ). The PM 2.5 Implementation Rule was promulgated by the EPA on May 16, 2008. This amendment

defines PM 2.5 precursor and establishes offset requirements fo r major sources of PM2.5 that wish to construct or modify their sources in a non

- attainment area.

(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 guid elines relevant thereto;

40 CFR 51.165(a)(2)(i) and (ii) and 40 CFR 51.166(a)(7)(iv) . These federal regulations require states to submit State Implementation Plans showing how they will attain and maintain the National Ambient Air Quality

Standards. These specific requirements were published in the Federal Register on May 16, 2008.

(C) Identification of persons, organizations, corporations or governmental 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 this rule. C omments received were

addressed to the satisfaction of the commenters.

(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 decrease 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 impact is more than two percent (2%) of the agency's annual budget or five hundred thousand dollars ($500,000), whichever is less;

Minimal

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

Lacey J. Hardin

Division of Air Pollution Control

9 th Floor, L & C Annex

401 Church Street
Nashville, Tennessee 37243

- 1531

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

Alan M. Leiserson Legal Services Dir ector Department of Environment and conservationSS

- 7039 ( Ju ly 2010 ) RDA 1693 15 (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; and

Office of General Counsel Depa rtment of Environment and conservation

20 th Floor L & C Tower
Nashville, Tennessee 37243

- 1548 (615) 532

- 0131

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

The Department is not aware of any.SS

- 7039 ( Ju ly 2010 ) 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. TCA Section 4

- 5

- 205

Agency/Board/Commission: Environment and Conservation

Division: Air Pollution 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@gov.tn

Revision Type (chec k 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 ( Ju ly 2010 ) RDA 1693 2 (Place substance of rules and other info here. Statutory authority must be given for each rule change. For information on formatting rules go to http://state.tn.us/sos/rules/1360/1360.htm )

Chapter 1200

- 03

- 09 Construction and Operating Permits

Amendments

Subpart (i) of part 24. of subparagraph (b) of paragraph (4) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by adding a new item (XVII) as follows:

(XVII) PM 2.5 : 10 tpy of direct PM 2.5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless demonstrated not

to be a PM 2.5 precursor under 40 CFR 51.166 and/or 40 CFR 51.165.

Part 47 of subparagraph (b) of paragraph (4) of rule 1200

- 03

- 09

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

follows:

(i) Any pollutant for which a national ambient air quality standard has been promulgated and any pollutant identified under this part as a constituent or precursor to such pollutant. Precursors identified by the Administrator for purposes of NSR are the following:

(I) Volatile organic compounds and nitrogen oxides are precursors to ozone

in all attainment and unclassifiable areas.

(II) Sulfur dioxide is a precursor to PM 2.5 in all attainment and unclassifiable

a reas.

(III) Nitrogen oxides are presumed to be precursors to PM 2.5 in all attainment and unclassifiable areas, unless the State has demonstrated to the

satisfaction of the EPA Administrator or EPA demonstrates that emissions of nitrogen oxides from sources in a specific area are not a significant contributor to that area’s ambient PM 2.5 concentrations.

(IV) Volatile organic compounds are presumed not to be precursors to PM 2.5 in any attainment or unclassifiable area, unless the State has

demonstrated to the satisfac tion of the EPA Administrator or EPA demonstrates that emissions of volatile organic compounds from sources in a specific area are not a significant contributor to that area’s ambient

PM 2.5 concentrations.

Part 47 of subparagraph (b) of paragraph (4) of r ule 1200

- 03

- 09

- .01 Construction Permits is also amended by adding a new subpart (vi) as follows:

(vi) Particulate matter (PM) emissions, PM 2.5 emissions, and PM 10 emissions shall include gaseous emissions from a source or activity which condense to form particulate matter at ambient temperatures. On or after January 1, 2011, such condensable particulate matter shall be accounted for in applicability determinations and in establishing emissions limitations for PM, PM 2.5 , and PM 10 in PSD permits. Compliance with emissions limitations for PM, PM 2.5 , and PM 10 issued prior to this date shall not be based on condensable particulate matterSS

- 7039 ( Ju ly 2010 ) RDA 1693 3 unless required by the terms and conditions of the permit or the applicable implementation plan. Applicability determinations made prior to this date without accounting for condensable particulate matter shall not be considered in violation of this paragraph unless the applicable implementation plan required condensable particulate matter to be included.

Subpart (vi) of part 4 of subparagraph (c) of paragraph (4) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting the last sentence so that, as amended, the subpart shall read:

(vi) Hybrid test for projects that involve multiple types of emissions units. A signifi cant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each emissions unit, using the method specified in subparts (c)4.(iii) through (iv) of this paragraph as applicable with respect to each em issions unit, for each type of emissions unit equals or exceeds the significant amount for that pollutant (as defined in part (b)24. of this paragraph).

Subpart (iv) of part 6 of subparagraph (d) of paragraph (4) of rule 1200

- 03

- 09

- .01 Construction Permit s is amended by deleting the period at the end of the subpart and adding a semicolon (;) followed by the word “or” so that, as amended, the subpart shall read:

(iv) The existing air pollutant levels are conservatively estimated to be less than the

concent rations listed in subpart (i) of this part, and a monitoring network may not reliably measure the predicted background concentrations; or

Part 6 of subparagraph (d) of paragraph (4) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by adding a

new s ubpart (v) as follows:

(v) The concentrations of the pollutant in the area that the source or modification would affect are less than the concentrations listed in subpart (d)6.(i) of this paragraph.

Item (I) of subpart (x) of part 1 of subparagraph (b) o f paragraph (5) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by adding a new subitem VII as follows:

VII PM 2.5 : 10 tpy of direct PM 2.5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless

demonstrated not to b e a PM 2.5 precursor under 40 CFR 51.166

and/or 40 CFR 51.165.

Subpart (xlix) of part 1 of subparagraph (b) of paragraph (5) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting item (III) and replacing it with a new item (III) and (IV) as fo llows:

(III) Any pollutant that is a constituent or precursor of a general pollutant listed under items 1.(xlix)(I) or (II) of this subparagraph, provided that a constituent or precursor pollutant may only be regulated under NSR as part of regulation of t he general pollutant. Precursors for purposes of NSR are the following:

I Volatile organic compounds and nitrogen oxides are precursors

to ozone in all ozone nonattainment areas.

II Sulfur dioxide is a precursor to PM 2.5 in all PM 2.5 nonattainment

area s.

III Nitrogen oxides are presumed to be precursors to PM 2.5 in all

PM 2.5 nonattainment areas, unless the State demonstrates to the

satisfaction of the EPA Administrator or EPA demonstrates thatSS

- 7039 ( Ju ly 2010 ) RDA 1693 4 emissions of nitrogen oxides from sources in a specific ar ea are not a significant contributor to that areas ambient PM 2.5 concentrations.

IV Volatile organic compounds and ammonia are presumed not to be precursors to PM 2.5 in any PM 2.5 nonattainment area, unless

the State demonstrates to the satisfaction of the EPA

Administrator or EPA demonstrates that emissions of volatile organic compounds or ammonia from sources in a specific area are a significant contributor to that area’s ambient PM 2.5 concentrations; or

(IV) PM 2.5 emissions and PM 10 emissions shall incl ude gaseous emissions from a source or activity which condense to form particulate matter at ambient temperatures. On or after January 1, 2011, such condensable particulate matter shall be accounted for in applicability determinations and in establishing e missions limitations for PM 2.5 and PM 10 in nonattainment major NSR permits. Compliance with emissions

limitations for PM 2.5 and PM 10 issued prior to this date shall not shall not be based on condensable particulate matter unless required by the terms

and c onditions of the permit or the (Tennessee) State Implementation Plan. Applicability determinations made prior to this date without accounting for condensable particulate matter shall not be considered in violation of this rule unless the State Implementati on Plan required condensable particulate matter to be included.

Subpart (v) of part 2 of subparagraph (b) of paragraph (5) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by inserting a period after “Offsets”, adding language after the period, and adding a new item (XV) so that, as amended, the subpart shall read:

(v) Emissions Offsets. In meeting the emission offset requirements of this paragraph, the ratio of total actual emissions reductions to the emissions

increase shall be at least 1:1 unless an alternative ratio is provided for the applicable nonattainment area in items (III), (IV) and (XIV) of this subpart.

(I) Prior to the issuance of a permit under this sub

- part, legally enforceable

emission offsets shall be obtained from the same source or other

sources in the same non

- attainment area, except that such emissions reduction may be obtained from a source in another non

- attainment area

if:

I. The other area has an equal or higher non

- attainment

classification than the area in which the sour ce is located; and,

II. Emissions from such other area contribute to a violation of an air quality standard in the non

- attainment area in which the proposed new or modified source would construct.

(II) By the time that the new or modified source commenc es operation, such reductions shall be in place such that the total tonnage of emissions of any applicable non

- attainment air contaminant allowed from the proposed new source, or net emissions increase from the modification, shall be offset by an equal or greater reduction, as applicable, in the

actual emissions of such air contaminant from the same or other

sources.

(III) In meeting the requirements of item (v)(II) of the sub

- part for ozone non

attainment areas that are subject to subpart 2, part D, title I of the CleanSS

- 7039 ( Ju ly 2010 ) RDA 1693 5 Air Act, the ratio of total actual emission reductions of Volatile Organic Compounds and/or Nitrogen Oxides to the net emissions increase of Volatile Organic Compounds and/or Nitrogen Oxides shall be as follows:

I. In any Marginal non

- att ainment area for ozone

- at least 1.1 to 1;

II. In any Moderate non

- attainment area for ozone

- at least 1.15 to
1;

III. In any Serious non

- attainment area for ozone

- at least 1.2 to 1;

IV. In any Severe non

- attainment area for ozone

- at least 1.3 to 1;

V. In any Extreme non

- attainment area for ozone

- at least 1.5 to 1.

(IV) Within an ozone transport region that is subject to subpart 2, part D, title I of the Clean Air Act, for any area designated for ozone attainment, unclassified, or Marginal non

- attainment, the ratio of total actual emission reductions of Volatile Organic Compounds and/or Nitrogen Oxides to net emissions increase of Volatile Organic Compounds and/or Nitrogen

Oxides shall be at least 1.15 to 1.

(V) I. Emissions reductions achieved by shutting down an existing

emission unit or curtailing production or operating hours may be generally credited for offsets if they meet the requirements in

sections IA and B of this item.

A. Such reductions are surplus, permanent, quantifiable,

and fed erally enforceable.

B. The shutdown or curtailment occurred after the last day of the base year for the SIP planning process. For purposes of this paragraph, the Technical Secretary may choose to consider a prior shutdown or curtailment to

have occurred a fter the last day of the base year if the projected emissions inventory used to develop the attainment demonstration explicitly includes the emissions from such previously shutdown or curtailed emission units. However, in no event may credit be given for s hutdowns that occurred before August 7,

1977.

II. Emissions reductions achieved by shutting down an existing emissions unit or curtailing production or operating hours and that do not meet the requirements in section IB of this item may be generally credi ted only if:

A. The shutdown or curtailment occurred on or after the date the construction permit application is filed; or

B. The applicant can establish that the proposed new emissions unit is a replacement for the shutdown or

curtailed emissions unit , and the emissions reductions achieved by the shutdown or curtailment met the requirements of section IA of this item.SS

- 7039 ( Ju ly 2010 ) RDA 1693 6 (VI) With respect to a proposed increase in VOC emissions, no emissions credit shall be allowed for reductions in any organic compound specifically excluded from the definitions of “VOC” in this Division 1200

- 3.

(VII) Credit for an emissions reduction may be claimed to the extent that the reduction has not been relied on in any permit already issued under regulations approved pursuant to 40 CFR Parts 51, 52, and 70,(July 1, 1993) or the State has not relied on it in demonstrating attainment or reasonable further progress. Incidental emissions reductions which are not otherwise required under the federal Clean Air Act (As amended

November 15, 1990) may be credible as emissions reductions for such purposes if such emissions reductions meet the applicable requirements of this part.

(VIII) Procedures relating to the permissible locations of offsetting emissions

shall be followed which are at least as stringent as those set out in 40 CFR Part 51, Appendix S, Section IV.D. (July 1, 1993 ).

(IX) Reserved.

(X) Reserved.

(XI) The total tonnage of increased emissions, in tons per year, resulting from a major modification that must be offset in a ccordance with section 173 of the Federal Clean Air Act shall be determined by summing the difference between the allowable emissions after the modification (as defined by sub

- part 1.(xi) of this subparagraph) and the actual emissions

before the modificati on (as defined in sub

- part 1.(xiii) of this subparagraph) for each emissions unit.

(XII) Where the emissions limit under this division 1200

- 03 allows greater emissions than the potential to emit of the source, emissions offset credit will be allowed only for control below this potential;

(XIII) For an existing fuel combustion source, credit shall be based on the

allowable emissions under this division 1200

- 03 for the type of fuel being burned at the time the application to construct is filed. If the existing

sou rce commits to switch to a cleaner fuel at some future date, emissions offset credit based on the allowable (or actual) emissions for the fuels involved is not acceptable, unless the permit is conditioned to require the use of a specified alternative contr ol measure which would achieve the same degree of emissions reduction should the source switch back to a dirtier fuel at some later date. The Technical Secretary shall ensure that adequate long

- term supplies of the new fuel are available before granting em issions offset credit for fuel switches

(XIV) Within an ozone non

- attainment area that is subject to subpart 1, part D, title I of the Clean Air Act (but is not subject to subpart 2, part D, title I of the Act, including 8

- hour ozone non

- attainment areas subjec t to 40 CFR 51.902(b)), the ratio of total actual emissions reductions of either volatile organic compound or nitrogen oxides to the emissions increase of either volatile organic compounds or nitrogen oxides shall be at least 1:1.

(XV) In meeting the emis sions offset requirements of this subpart for fine particulate matter (PM 2.5 ), the emissions offsets obtained shall be for the same regulated NSR pollutant unless interprecursor trading is allowed in the approved State Implementation Plan (SIP) for the aff ected PM 2.5SS

- 7039 ( Ju ly 2010 ) RDA 1693 7 nonattainment area. For those nonattainment areas in which interprecursor trading is allowed by the approved SIP, the offset requirements for direct PM 2.5 emissions or emissions of precursors of

PM 2.5 to may be satisfied by offsetting reduction s in direct PM 2.5 emissions or emissions of any PM 2.5 precursor identified under item (b)1.(xlix)(III) of this paragraph if such offsets comply with the interprecursor trading hierarchy and ratio established in the approved

SIP for the affected nonattainme nt area.

Subpart (xvii) of part 2 of subparagraph (b) of paragraph (5) of rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting the last sentence so the subpart reads as follows:

(xvii) Hybrid test for projects that involve multiple types of em issions units. A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each emissions unit, using the method specified in subparts 2.(xiv) through (xv) of this subparagraph as applicabl e with respect to each emissions unit, for each type of emissions unit equals or exceeds the significant amount for that pollutant (as defined in subpart 1.(x) of this subparagraph).

Authority: T.C.A. §§68

- 201

- 105SS

- 7039 ( Ju ly 2010 ) RDA 1693 8 * If a ro ll

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



### Board Member Aye No Abstain Absent Signature (if required)



### Michael Atchison

Dr. J. Ronald Bailey

Tracy R. Carter

Dr. Brian

Christman

Dr. Wayne T.

Davis

Dr. Mary English

Stephen R.

Gossett

Honorable Mayor Tommy Green, Jr.

Dr. Shawn A.

Hawkins

Helen S. Hennon

Richard M.

Holland

John R. Roberts,

Sr.

Alicia M. Wilson

Honorable Mayor Larry Waters

I certify that this is an accurate and complete copy of rulemaking hearing rules, lawfully promulgated and adopted by the Air Pollution Control (board/commission/ other authority) on 12/ 08 /2010 (mm/dd/yyyy), and is in compliance with t he provisions of TCA 4

- 5

- 222.SS

- 7039 ( Ju ly 2010 ) RDA 1693 9 I further certify the following:

Notice of Rulemaking Hearing filed with the Department of State on: ( 09/22/10 )

Rulemaking Hearing(s) Conducted on: (add more dates). ( 11/17/10 )

Date:

Signature:

Name of Officer: Bar ry R. Stephens, P.E.

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 Administrative 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 Department of State on:

Effective on:

______________________________ Tre Hargett Secretary of State

Rm 09

-

. 01c9 .docSS

- 7039 ( Ju ly 2010 ) RDA 1693 10 Public Hearing Com ments

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

- 5

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

can be summarized. No letters o f inquiry from parties questioning the rule will be accepted. When no comments are received at the public 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.

Commenter: The proposed revision to 1200

- 3

- 9

- .01(5)(b)2(v)(XV) does not allow emissions of sulfur dioxide or

nitrogen oxides (determined by EPA to be precursors to PM2.5) to be used as offsets for

increases in direct PM 2.5 emissions as allowed by 40 CFR 51.165(a)(11). Eastman believes the SIP should include the option to offset direct PM 2.5 emissions with sulfur dioxide or nitrogen oxide

emissions.

Response: The Division has revised the proposed rule as foll ows: In meeting the emissions offset

requirements of this subpart for fine particulate matter (PM 2.5 ), the emissions offsets obtained shall be for the same regulated NSR pollutant unless interprecursor trading is allowed in the approved State Implementati on Plan (SIP) for the affected PM 2.5 nonattainment area. For those nonattainment areas in which interprecursor trading is allowed by the approveed SIP, the offset requirements for direct PM 2.5 emissions or emissions of precursors of PM 2.5 to may be satisfi ed by offsetting reductions in direct PM 2.5 emissions or emissions of any PM 2.5 precursor identified under item (b)1.(xlix)(III) of this paragraph if such offsets comply with the interprecursor trading hierarchy and ratio established in the approved SIP fo r the affected nonattainment area.

Commenter: On Page 23, item (i)(IV) for the definition of "regulated NSR pollutant", in the last sentence

-

"...specific area are not a significant contributor..." please revise the sentence so it reads, “...specific area are a significant contributor..."

Response: This change has been made.

Commenter: The new items (4)(b)24.(i)(XVII) and (5)(b)1.(x)(I)VII on pages 15 and 60 respectively,

reference “ 40 CFR 51.166 and/or 40 CFR 51.165.” We suggest referencing Tenn essee’s corresponding provision for attainment and nonattainment areas as follows: (XVII)PM 2.5 : 10 tpy of direct PM 2.5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide

emissions unless demonstrated not to be a PM 2.5 precursor under 40 CFR 51.166 and/or 40

CFR 51.165 47.(i)(III) of this subparagraph (b). (VII) PM 2.5 : 10 tpy of direct PM 2.5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless demonstrated not to be a PM2.5 precursor under 40 CFR 5 1.166 and/or 40 CFR 51.165 1.(xlix)(III)III of this subparagraph (b).

Response: These changes have been made.

Commenter: In the Notice of Proposed rulemaking, (bottom of page 4) it states “Subpart (xlix) of part 1 of

subparagraph (b) of paragraph (5) o f rule 1200

- 03

- 09

- .01 Construction Permits is amended by deleting item (III) and replacing it with a new item (III) as follows:.” Please note that a new item (IV) was also added.

Response: This was noted at the public hearing.SS

- 7039 ( Ju ly 2010 ) RDA 1693 11 Commenter: On Page 72 , item (5)(b)1.(xlix)(III)III, for the definition of "regulated NSR pollutant” bottom of the

page, p lease correct the typographical error by changing the second use of the word “areas” to the possessive form "area's".

Response: Corrected.

Commenter: On Page 72, item (IV) for the definition of "regulated NSR pollutant", please correct the

typographical error by deleting the duplicate "shall not" in the sentence that begins with "Compliance with emissions..."

Response: Corrected.

:

Commenter: The Cham ber supports the comments submitted by Eastman Chemical Company dated

November 3, 2010.

Response: See the response to the comments from Eastman Chemical Company.SS

- 7039 ( Ju ly 2010 ) RDA 1693 12 Regulatory Flexibility Addendum Pursuant to T.C.A. § 4

- 5

- 401 through 4

- 5

- 404, prior to initia ting 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.

Small businesses considered to be minor sources under the New Source Review regulations in this chapter will not be impacted by these revisions.SS

- 7039 ( Ju ly 2010 ) RDA 1693 13 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 s imple 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)

Most local government sources are considered to be minor sources under the New Source Review regulations in this chapter and will not be impacted by these revisions. If a local government source is considered major under these provisions, minimal impact is anticipated.SS

- 7039 ( Ju ly 2010 ) RDA 1693 14 Additional Information Required by Joint Government Operations Committee

All agencies, upon filing a rule, must also submit the following pursuant to TCA 4

- 5

- 226(i)(1).

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

This rule amendment incorporates the changes required by the United States Environmental Protection Agency

to insure that Tennessee can attain and maintain the National Ambient Air Quality Standards for fine particulate matter (PM 2.5 ). The PM 2.5 Implementation Rule was promulgated by the EPA on May 16, 2008. This amendment

defines PM 2.5 precursor and establishes offset requirements for maj or sources of PM2.5 that wish to construct or modify their sources in a non

- attainment area.

(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 guideline s relevant thereto;

40 CFR 51.165(a)(2)(i) and (ii) and 40 CFR 51.166(a)(7)(iv) . These federal regulations require states to submit State Implementation Plans showing how they will attain and maintain the National Ambient Air Quality Standards. These spec ific requirements were published in the Federal Register on May 16, 2008.

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

Owners and operators of major sources of air pollution are affected by this rule. C omments received were

addressed to the satisfaction of the commenters.

(D) Identification of any opinions of the a ttorney 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 decrease 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 impact is more than two percent (2%) of the agency's annual budget or five hundred thou sand dollars ($500,000), whichever is less;

Minimal

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

Lacey J. Hardin

Division of Air Pollution Control

9th Fl oor, L & C Annex

401 Church Street
Nashville, Tennessee 37243

- 1531

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

Alan M. Leiserson Legal Services Director Department of Environment and conservationSS

- 7039 ( Ju ly 2010 ) RDA 1693 15 (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; and

Office of General Counsel Departmen t of Environment and conservation

20 th Floor L & C Tower
Nashville, Tennessee 37243

- 1548 (615) 532

- 0131

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

The Department is not aware of any.