# REVISION TO STATE OF MICHIGAN STATE IMPLEMENTATION PLAN for Part 19. New Source Review for Major Sources Impacting Nonattainment Areas

R 336.2901 and R 336.2910 (Rescinded)

September 2, 2011

Prepared by: Michigan Department ofEnvironmental Quality Air Quality Division

P. 

### 0. Box 30260 Lansing, Ml48909-7760 INTERNET: http://www. michigan. govldeqairTABLE OF CONTENTS Item Page COMPLETENESS REVIEW COMPLETENESS REVIEW CHECKLIST

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ATTACHMENTS ATTACHMENT A Final form of adopted rule(s), Part 19, effective June 29, 2011. ATTACHMENT B Certificate ofAdoption from the Director ofthe Michigan Department of Environmental Quality (MDEQ), Dan Wyant, dated June 23, 2011. Letter from MDEQ Director Dan Wyant to Office of Regulatory Reinvention (ORR) forwarding Certificate of Adoption, dated June 23, 2011. ATTACHMENT C Delegation of authority from Governor Rick Snyder, letter dated March 24, 2011. ATTACHMENT D Certificate of approval from Legislative Service Bureau, dated May 18, 2011. Letter of certification of legality and authority from ORR to MDEQ, dated May 23, 2011. ATTACHMENT E Secretary of State's notice offiling Administrative Rules, dated June 29, 2011. ATTACHMENT F Agency Report, dated March 18, 2011. ATTACHMENT G Opening statement for August 11, 2010, public hearing. ATTACHMENT H Newspaper affidavits dated June 6, 2010 Michigan Registernotice dated June 15, 2010

### COMPLETENESS REVIEW Administrative Materials 1. A formal letter of submittal from the governor or designee requesting EPA approval of the revision. Cover letter from Dan Wyant, Director of the Michigan Department of Environmental Quality (MDEQ) to Ms. Susan Hedman, Regional Administrator, EPA Region 5, requesting approval of SIP revision. 2. Evidence that the state has adopted the revision in the state code or body of regulations; or issued the permit, order, or consent agreement (hereafter document) in final form. That evidence should include the date of adoption or final issuance as well as the effective date of the revision if different from the adoption/issuance date. The final form ofthe adopted rule in Part 19, which went into effect on June 29, 2011, is included in Attachment 

### A The Certificate ofAdoption dated June 23, 2011, signed by MDEQ Director Dan Wyant, is included in Attachment B. A letter dated June 23, 2011, from MDEQ Director Dan Wyant to the Office of Regulatory Reinvention (ORR) is included in Attachment B. 3. Evidence that the state has the necessary legal authority understate law to adopt and Implement the revision. A letter dated March 24, 2011, from Governor Rick Snyder to EPA Region 5 delegates authority to the Director of MDEQ to make any submittal, request, or application under the Clean Air Act (Attachment C). The letter dated May 23, 2011, from ORR to the MDEQ certifies that the rules are within the scope ofthe authority of the MDEQ (Attachment D). 4. A copy of the actual regulation or document submitted for approval and incorporation by reference into the SIP, including indication ofthe changes made to the existing approved SIP, where applicable. The submittal should be a copy of the official state regulation/document signed, stamped, and dated by the appropriate state official indicating that it is fully enforceable by the state

. The effective date of the regulation/document should, whenever possible, be indicated in the document itself. The Secretary of State's Notice of Filing Administrative Rules for Part 19, dated June 29, 2011 is included in Attachment 

### E.The final form ofthe adopted rules, Part 19, with the effective date ofJune 29, 2011, is included in Attachment A. 

### 5. Evidence that the state followed all of the requirements of its administrative procedures act (or equivalent) in conducting and completing the adoption/issuance ofthe revision. The ORR memo to the MDEQ, dated May 23, 2011, certifies that the rules are in conformity with the requirements of the Administrative Procedures Act, MCL 24.201 et seq
. (Attachment D). 

### 6. Evidence that public notice was given of the proposed change consistent with procedures approved by EPA, including date of publication ofsuch notice. The affidavits of publication from three newspapers that published the notice of public hearing on July 6, 2010, and the notice that was published in the Michigan Register on July 15, 2010, are included in Attachment H

. 

### 7. Certification that public hearings were held in accordance with the information provided in the public notice and the state's administrative procedures act (or equivalent), ifapplicable. The May 23, 2011, memo from the ORR to the MDEQ certifies that the rules have been promulgated in conformity with the requirements of the Administrative Procedures Act (Attachment D). The Opening Statement for the August 11, 2010, public hearing includes information on the notice of public hearing and instructions on how the hearing was to be conducted (Attachment G). 

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

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

Filed with the Secretary ofState on June 29, 2011 These rules become effective immediately upon filing with the Secretary ofState. (By authority conferred on the director ofthe department ofenvironmental quality by sections 5503 and 5512 of 1994 PA 451, MCL 324.5503 and MCL 324.5512, and Executive Reorganization OrderNos. 1995-16 and 2009-31, MCL 324.99903 and MCL 324.99919 and Executive· OrderNo. 2011-1, 1969 PA 306, MCL 24.201 to 24.328)

R 336.2901 ofthe Michigan Administrative Code is amended as follows: PART 19. NEW SOURCE REVIEW FORMAJOR SOURCES IMPACTING**NONATTA~TAREAS** R 336.2901 Definitions.

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

(a) "Actual emissions" means the actual rate ofemissions ofa regulated new source review pollutant from an emissions unit, as determined under R 336.1101(b), except that this definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a plantwide applicability limit under R 336.2907. Instead, the terms "projected actual emissions" and "baseline actual emissions" shall apply for those purposes. (b) "Baseline actual emissions" means the rate ofemissions, in tons per year, ofa regulated new source review pollutant, as determined by the following: (i) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-yearperiod immediately preceding when the owner oroperator begins actual construction ofthe project. The department shall allow the use ofa different time period upon a determination that it is more representative ofnormal source operation. The following shall apply: (A) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (B) The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while the source was operating above any emission limitation that was legally enforceable during the consecutive 24-month period.

03114/20112 (C) For a regulated new source review pollutant, when a project involves multiple emissions units, only 1consecutive 24-month period shall be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period may be used for each regulated new source review pollutant. (D) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount ifrequired by paragraph (i)(B) ofthis subdivision. (ii) For an existing emissions unit, other than an electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 1 0-year period immediately preceding either the date the owner or operator begins actual construction ofthe project, or the date a complete permit application is received by the department for a permit required under R 336.1201, whichever is earlier, except that the 1 0-year period shall not include any period earlier than November 15, 1990. All ofthe following shall apply: (A) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (B) The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period. (C) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had the major stationary source been required to comply with the limitations during the consecutive 24-month period. However, ifan emission limitation is part ofa maximum achievable control technology standard thatthe United States environmental protection agency proposed or promulgated under 40 C.F.R. part 63, then the baseline actual emissions need only be adjusted ifthe department has taken credit for such emissions reductions in an attainment demonstration or maintenance plan. Title 40 C.F.R. part 63 is adopted by reference in R 336.2901a. (D) For a regulated new source review pollutant, when a project involves multiple emissions units, only 1 consecutive 24-month period shall be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period may be used for each regulated new source review pollutant. (E) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount ifrequired by subparagraphs (B) and (C) ofthis paragraph. (iii) For a new emissions unit, the baseline actual emissions for purposes ofdetermining the emissions increase that will result from the initial construction and operation ofsuch unit shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to emit. (iv) For a plantwide applicability limit for a major stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units under paragraph (i) ofthis subdivision, for other existing emissions units under paragraph (ii) of this subdivision, and for a new emissions unit under paragraph (iii) ofthis subdivision. (c) "Begin actual construction" means, in general, initiation ofphysical on-site construction activities on an emissions unit which are ofa permanent nature. Such activities include, but are not limited to, installation ofbuilding supports and foundations, laying of3 underground pipework, and construction ofpermanent storage structures. "A change in method ofoperation" refers to those on-site activities other than preparatory activities which mark the initiation ofthe change. (d) "Best available control technology" or "BACT'' means an emissions limitation, including a visible emissions standard, based on the maximum degree ofreduction for each regulated new source review pollutant which would be emitted from any proposed major stationary source or major modification which the department, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for such source or modification through application ofproduction processes or available methods, systems, and techniques, including fuel cleaning ortreatment or innovative fuel combustion techniques for control ofsuch pollutant. Application ofbest available control technology shall not result in emissions ofany pollutant which would exceed the emissions allowed by any applicable standard under 40 C.F.R. part 60 or 61, adopted by reference in R 336.2901a. Ifthe department determines that technological or economic limitations on the application ofmeasurement methodology to a particular emissions unit would make the imposition ofan emissions standard infeasible, then a design, equipment, work practice, operational standard, or combination thereof, may be prescribed instead to satisfy the requirement for the application ofBACT. The standard shall, to the degree possible, set forth the emissions reduction achievable by implementation ofthe design, equipment, work practice or operation, and shall provide for compliance by means which achieve equivalent results. (e) "Building, structure, facility, or installation" means all ofthe pollutant-emitting activities which belong to the same industrial grouping, are located on 1 or more contiguous or adjacent properties, and are under the control ofthe same person, or persons under common control, except the activities ofany vesseL PoJlutant-emitting activities are part of the same industrial grouping ifthey have the same 2-digit major group code associated with their primary activity. Major group codes and primary activities are described in the standard industrial classification manual, 1987. For assistance in converting north American industrial classification system codes to standard industrial classification codes see http://www.census.gov /epcd/naics02/. 

### (f) "Clean coal technology" means any technology, including technologies applied at the precombustion, combustion, orpost-combustion stage, at a new or existing facility which will achieve significant reductions in air emissions ofsulfur dioxide or oxides ofnitrogen associated with the utilization ofcoal in the generation ofelectricity, orprocess steam which was not in widespread use as ofNovember 15, 1990. (g) "Clean coal technology demonstration project" means a project using funds appropriated under the heading "department ofenergy-clean coal technology," up to a total amount of$2,500,000,000 for commercial demonstration ofclean coal technology, or similar projects funded through appropriations for the United States environmental protection agency. The federal contribution for a qualifying project shall be at least 20% ofthe total cost ofthe demonstration project. (h) [Reserved] (i) "Commence" as applied to construction ofa major stationary source or major modification means that the owner or operator has all necessary preconstruction approvals or permits and has either ofthe following:

### 4 (i) Begun, or caused to begin, a continuous program ofactual on-site construction ofthe source, to be completed within a reasonable time. (ii) Entered into binding agreements or contractual obligations, which cannot be canceled or modified without substantial loss to the owner or operator, to undertake a program of actual construction ofthe source to be completed within a reasonable time. G) "Construction" means any physical change or change in the method ofoperation, including fabrication, erection, installation, demolition, or modification ofan emissions unit, that would result in a change in emissions. (k) "Continuous emissions monitoring system" or "CEMS" means all ofthe equipment that may be required to meet the data acquisition and availability requirements ofthis rule, to sample, condition, ifapplicable, analyze, and provide a record ofemissions on a continuous basis. (l) "Continuous emissions rate monitoring system" or "CERMS" means the total equipment required for the determination and recording ofthe pollutant mass emissions rate, in terms ofmass per unit oftime. (m) "Continuous parameter monitoring system" or "CPMS" means all ofthe equipment necessary to meet the data acquisition and availability requirements ofthis rule, to monitor process and control device operational parameters and other information, and to record average operational parameter values on a continuous basis. (n) "Electric utility steam generating unit" means any steam electric generating unit that is constructed for the purpose ofsupplying more than 1/3 ofits potential electric output capacity and more than 25 megawatts electrical outputto any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam to a steam-electric generator that would produce electrical energy for sale is also considered in determining the electrical energy output capacity ofthe affected facility. (o) "Emissions unit'' means any part ofa stationary source that emits or would have the potential to emit any regulated new source review pollutant. The term emissions unit includes an electric steam generating unit. Each emissions unit can be classified as either new or existing based on the following: (i) A new emissions unit is any emissions unit that is, or will be, newly constructed and that has existed for less than 2 years from the date the emissions unit first operated. (ii) An existing emissions unit is any emissions unit that does not meet the definition ofa new emissions unit. A replacement unit is an existing emissions unit and no creditable emission reductions shall be generated from shutting down the existing emissions unit that is replaced. Replacement unit means all ofthe following: (A) The emissions unit is a reconstructed unit as defmed within R 336.1118(b) or the emissions unit completely takes the place ofan existing emissions unit. (B) The emissions unit is identical to or functionally equivalent to the replaced emissions unit. (C) The replacement does not alter the basic design parameters ofthe process unit. (D) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, orpermanently barred from operation by a permit that is enforceable as a practical matter. Ifthe replaced emissions unit is brought back into operation, it shall constitute a new emissions unit. (p) "Federal land manager" means, with respect to any lands in the United States, the secretary ofthe department with authority over such lands.

### 5 (q) "Hydrocarbon combustion flare" means either a flare used to comply with an applicable new source performance standard or maximum achievable control technology standard, including uses offlares during startup, shutdown, or malfunction permitted under such a standard, or a flare that serves to control emissions ofwaste streams comprised predominately ofhydrocarbons and containing not more than 230 milligrams per dry standard cubic meter hydrogen sulfide. (r) "Lowest achievable emission rate" or "LAER" means, for any source, the more stringent rate ofemissions based on either ofthe following: (i) The most stringent emissions limitation that is contained in the implementation plan of any state for the same class or category ofstationary source, unless the owner or operator of the proposed stationary source demonstrates that the limitations are not achievable. (ii) The most stringent emissions limitation that is achieved in practice by the same class or category ofstationary sources. This limitation, when applied to a modification, means the lowest achievable emissions rate for the new or modified emissions units within a stationary source. Application ofthe term shall not permit a proposed new or modified stationary source to emit any pollutant in excess ofthe amount allowable under an applicable new source performance standard. (s) "Major modification" means the following: (i) Any physical change in or change in the method ofoperation ofa major stationary source that would result in both ofthe following: (A) A significant emissions increase ofa regulated new source review pollutant. (B) A significant net emissions increase ofthat pollutant from the major stationary source. (ii) Any significant emissions increase from any emissions units or net emissions increase at a major stationary source that is significant for volatile organic compounds shall be**~onsidered** significant for ozone. (iii) A physical change or change in the method ofoperation shall not include any ofthe following: (A) Routine maintenance, repair, and replacement. (B) Use ofan alternative fuel or raw material by reason ofan order under sections 2 (a) and (b) ofthe energy supply and environmental coordination act of 1974, 15 U.S.C. §792 et seq., or any superseding legislation, or by reason ofa natural gas curtailment plan under the federal power act of 1995, 16 U.S.C. §791 -'828c et seq. (C) Use ofan alternative fuel by reason ofan order or rule under section 125 ofthe clean air act. (D) Use ofan alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste. (E) Use ofan alternative fuel or raw material by a stationary source which meets either of the following:

(1) The source was capable ofaccommodating before December 21, 1976, unless the change would be prohibited under any federally enforceable permit condition that was established after December 12, 1976, under prevention ofsignificant deterioration ofair quality regulations or new source review for major sources in nonattainment areas regulations.

(2) The source is approved to use under any permit issued under R 336.1201(l)(a).

### 6 (F) An increase in the hours ofoperation or in the production rate, unless such change is prohibited under any federally enforceable permit condition that was established after December 21, 1976, under R 336.1201(l)(a). (G) Any change in ownership at a stationary source. (H) [Reserved] (I) The installation, operation, cessation, or removal ofa temporary clean coal technology demonstration project, provided that the project complies with both ofthe following:

(1) The state implementation plan. (2) Other requirements necessary to attain and maintain the national ambient air quality standard during the project and after it is terminated. (iv) This definition shall not apply with respect to a particular regulated new source review pollutant when the major stationary source is complying with the requirements of R 336.2907 for a plantwide applicability limit for that pollutant. Instead, the definition in R 336.2907(1)(h) shall apply. (v) For the purposes ofapplying the requirements ofR 336.2902(8) to modifications at major stationary sources ofnitrogen oxides located in ozone nonattainment areas or in ozone transport regions, whether or not subject to subpart 2, part D, title 1 ofthe clean air act, any significant net emissions increase ofnitrogen oxides is considered significant for ozone. (vi) Any physical change in, or change in the method ofoperation of, a major stationary source ofvolatile organic compounds that results in any increase in emissions ofvolatile organic compounds from any discrete operation, emissions unit, or other pollutant emitting activity at the source shall be considered a significant net emissions increase and a major modification for ozone, ifthe major stationary source is located in an extreme ozone nonattainment area that is subject to subpart 2, part D, title 1 ofthe clean air act. (t) "Major stationary source" means all ofthe following: (i) Any ofthe following: (A) Any stationary source ofair pollutants that emits or has the potential to emit 100 tons per year or more ofany regulated new source review pollutant, except that lower emissions thresholds shall apply in areas subject to subpart 2, subpart 3, or subpart 4 ofpart D, title 1 of the clean air act, according to the following:

(1) In any serious ozone nonattainment area, 50 tons per year ofvolatile organic compounds.

(2) In an area within an ozone transport region except for any severe or extreme ozone nonattainment area, 50 tons per year ofvolatile organic compounds.

(3) In any severe ozone nonattainment area, 25 tons per year ofvolatile organic compounds.

(4) In any extreme ozone nonattainment area, 10 tons per year ofvolatile organic compounds.

(5) In any serious nonattainment area for carbon monoxide, where the department has determined that stationary sources contribute significantly to carbon monoxide levels in the area, 50 tons per year ofcarbon monoxide.

(6) In any serious nonattainment area for PM-10, 70 tons per year ofPM-10. (B) For the purposes ofapplying the requirements ofR 336.2902(8) to stationary sources ofnitrogen oxides located in an ozone nonattainment area or in an ozone transport region, any stationary source which emits, or has the potential to emit, 1 00 tons per year or more of7 nitrogen oxide emissions, except that the following emission thresholds shall apply in areas subject to subpart 2 ofpart D, title 1 ofthe clean air act:

(1) In any ozone nonattainment area classified as marginal or moderate, 100 tons per year or more ofnitrogen oxides.

(2) In any ozone nonattainment area classified as a transitional, submarginal, or incomplete or no data area, when such area is located in an ozone transport region, 1 00 tons per year or more ofnitrogen oxides.

(3) In any area designated under section 107(d) ofthe clean air act as attainment or unclassifiable for ozone that is located in an ozone transport region, 100 tons per year or more ofnitrogen oxides.

(4) In any serious nonattainment area for ozone, 50 tons peryear or more ofnitrogen oxides.

(5) In any severe nonattainment area for ozone, 25 tons per year or more ofnitrogen oxides.

(6) In any extreme nonattainment area for ozone, 10 tons per year or more ofnitrogen oxides. (C) Any physical change that would occur at a stationary source not qualifying under R 336.2901(t)(i)(A) or (B) as a major stationary source, ifthe change would constitute a major stationary source by itself. (ii) A major stationary source that is major for volatile organic compounds shall be considered major for ozone. (iii) The fugitive emissions ofa stationary source shall not be included in determining for any ofthe purposes ofthis paragraph whether it is a major stationary source, unless the source belongs to 1 ofthe following categories ofstationary sources: (A) Coal cleaning plants, with thermal dryers. (B) Kraft pulp mills. (C) Portland cementplants. (D) Primary zinc smelters. (E) Iron and steel mills. (F) Primary aluminum ore reduction plants. (G) Primary copper smelters. (H) Municipal incinerators capable ofcharging more than 250 tons ofrefuse per day. (I) Hydrofluoric, sulfuric, or nitric acid plants. (J) Petroleum refineries. (K) Lime plants. (L) Phosphate rock processing plants. (M) Coke oven batteries. (N) Sulfur recovery plants. (0) Carbon black plants, furnace process. (P) Primary lead smelters. (Q) Fuel conversion plants. (R) Sintering plants. (S) Secondary metal production plants. (T) Chemical process plants. (U) Fossil-fuel boilers, or combination thereof, totaling more than 250 million British thermal units per hour heat input.8 (V) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels. (W) Taconite ore processing plants. (X) Glass fiber processing plants. (Y) Charcoal production plants. (Z) Fossil fuel-fired steam electric plants ofmore than 250 million British thermal units per hour heat input. (AA) Any other stationary source category which, as ofAugust 7, 1980, is being regulated under section 111 or 112 ofthe clean air act. (u) ''Necessary preconstruction approvals or permits" means a permit issued under R 336.1201(1)(a) that is required by R 336.2802 orR 336.2902. (v) "Net emissions increase" means all ofthe following: (i) With respect to any regulated new source review pollutant emitted by a major stationary source, the amount by which the sum ofthe following exceeds zero: (A) The increase in emissions from a particular physical change or change in the method ofoperation at a stationary source as calculated under R 336.2902(2). (B) Any other increases and decreases in actual emissions at the major stationary source that are occur within the contemporaneous period and are otherwise creditable. with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases shall be determined as provided in the definition ofbaseline actual emissions, except that subdivisions (b)(i)(C) and (b)(ii)(D) ofthis rule shall not apply. (ii) An increase or decrease in actual emissions is contemporaneous with the increase from the particular change only ifit occurs before the date that the increase from the particular change occurs. The contemporaneous period must meet all ofthe following: (A) Begins on the date 5 years before construction on the particular change commences. (B) Ends on the date that the increase from the particular change occurs. (iii) An increase or decrease in actual emissions is creditable only ifall ofthe following occur: An increase or decrease in actual emissions is creditable only ifthe department has not relied on it in issuing a permit under R 336.1201(l)(a) orR 336.1214a, which permit is in effect when the increase in actual emissions from the particular change occurs. (A) It occurs within a 5-year period. (B) The department has not relied on it in previously issuing a permit for the source under R 336.1201(l)(a) orR 336.1214a, which permit is in effect when the increase in actual emissions from the particular change occurs. (iv) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level. The magnitude ofa creditable, contemporaneous increase in actual emissions is determined by the amount that the new level ofactual allowable emissions following the increase exceeds the emissions unit's baseline actual emissions prior to the increase. This means actual allowable emissions and baseline actual emissions are determined from the date ofthe contemporaneous increase. Baseline actual emissions shall be determined as provided in the definition ofbaseline actual emissions, except that paragraphs (b)(i)(C) and (b)(ii)(D) ofthis subdivision shall not apply. (v) A contemporaneous decrease in actual emissions is creditable only to the extentthat all ofthe following occur:9 (A) The old level ofactual emission or the old level ofallowable emissions, whichever is lower, exceeds the new level ofactual emissions. The magnitude ofa creditable contemporaneous decrease is determined by the lower ofthe following:

(1) The amount by which the emission unit's baseline emissions prior to the decrease exceed the level ofactual allowable emissions following the decrease.

(2) The amount by which the emission unit's allowable emissions prior to the decrease exceed the level ofactual allowable emissions following the decrease.

(3) In determining the magnitude ofa creditable contemporaneous decrease, actual allowable emissions and baseline actual emissions are determined from the date ofthe contemporaneous decrease. Baseline actual emissions shall be determined as provided in the definition ofbaseline actual emissions except that paragraphs (b)(i)(C) and (b)(ii)(D) ofthis subdivision shall not apply. (B) It is enforceable as a practical matter at and after the time that actual construction on the particular change begins. (C) The department has not relied on it in issuing any permit under R 336.1201(1)(a) or R 336.1214a. (D) Ithas approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. (vi) An increase that results from a physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days. (vii) The definition ofactual emissions in R 336.1101(b) shall not apply for determining creditable increases and decreases after a change, instead the definitions ofthe terms "projected actual emissions" and "baseline emissions" shall be used. (w) ''Nonattainment major new source review" or ''NSR" program means the requirements ofthis rule, R 336.1220, orR 336.1221. A permit issued under any ofthese rules is a major new source review permit. (x) [Reserved] (y) [Reserved] (z) "Potential to emit" means the maximum capacity ofa stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity ofthe source to emit a pollutant, including air pollution control equipment and restrictions on hours ofoperation or on the type or amount ofmaterial combusted, stored, or processed, shall be treated as part ofits design only ifthe limitation or the effect it would have on emissions is federally legally enforceable. Secondary emissions do not count in determining the potential to emit ofa stationary source. (aa) "Predictive emissions monitoring system" or "PEMS" means all ofthe equipment necessary to monitor process and control device operational parameters and other information and calculate and record the mass emissions rate on a continuous basis. (bb) "Prevention ofsignificant deterioration" or "PSD" permit means any permit that is issued under R 336.2802 or the prevention ofsignificant deterioration ofair quality regulations or under 40 C.F.R. §52.21, adopted by reference in R 336.290la. (cc) "Project" means a physical change in, or change in the method ofoperation of, an existing major stationary source. (dd) "Projected actual emissions" means the following:

### 10 (i) The maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated new source review pollutant in any 1 ofthe 5 12-month periods following the date the unit resumes regular operation after the project, or in any 1 ofthe 10 12-month periods following that date, ifthe project involves increasing the emissions unit's design capacity or its potential to emit ofthat regulated new source review pollutant and full utilization ofthe unit would result in a significant emissions increase ora significant net emissions increase at the major stationary source. (ii) In determining the projected actual emissions before beginning actual construction, the owner or operator ofthe major stationary source shall do the following: (A) Consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected business activity and the company's highest projections ofbusiness activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the approved state implementation plan. (B) Include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (C) Exclude, in calculating any increase in emissions that results from the particular project, that portion ofthe unit's emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions ofthis rule and that are also unrelated to the particular project, including any increased utilization due to product demand growth. (D) Elect to use the emissions unit's potential to emit in tons per year instead of calculating projected actual emissions. (ee) "Regulated new source review pollutant" means any ofthe following: (i) Nitrogen oxides ofnitrogen or any volatile organic compounds. (ii) Any pollutant for which a national ambient air quality standard has been promulgated. Ozone, sulfur dioxide, oxides ofnitrogen, PM-10, lead, and carbon monoxide. (iii) Any pollutant that is a constituent or precursor ofa general pollutant listed under paragraphs (i) or (ii) ofthis subdivision, provided that a constituent or precursor pollutant may only be regulated under new source review as part ofregulation ofthe general pollutant. (ff) "Secondary emissions" means emissions that would occur as a result ofthe construction or operation ofa major stationary source or major modification, but do not come from the major stationary source or major modification itself. For the purpose ofthis rule, secondary emissions shall be specific, well defined, quantifiable, and impact the same general area as the stationary source or modification which causes the secondary emissions. Secondary emissions include emissions from any off-site support facility that would not be constructed or increase its emissions except as a result ofthe construction or operation ofthe major stationary source or major modification. Secondary emissions do not include any emissions that come directly from a mobile source such as emissions from the tailpipe ofa motor vehicle, from a train, or a vessel. (gg) "Significant" means all ofthe following: (i) "Significant" means, in reference to a net emissions increase or the potential ofa source to emit any ofthe following pollutants at a rate ofemissions that would equal or exceed any ofthe following pollutant emission rates: (A) Carbon monoxide: 100 tons per year. (B) Nitrogen oxides ofnitrogen: 40 tons per year.11 (C) Sulfur dioxide: 40 tons peryear. (D) Ozone: 40 tons peryear ofvolatile organic compounds or ofnitrogen oxides. (E) Lead: 0.6 tons peryear. (F) PM-10: 15 tons per year ofPM-10. (G) PM 2.5: 10 tons per year ofPM 2.5 (ii) Notwithstanding the significant emissions rate for ozone in R 336.2901(gg)(i)(D), significant means, in reference to an emissions increase or a net emissions increase, any increase in actual emissions ofvolatile organic compounds that would result from any physical change in, or change in the method ofoperation of, a major stationary source located in a serious or severe ozone nonattainment area that is subject to subpart 2, part D, title 1 ofthe clean air act, ifsuch emissions increase ofvolatile organic compounds exceeds 25 tons per year. (iii) Forthe purposes ofapplying the requirements ofR 336.2902(8) to modifications at major stationary sources ofnitrogen oxides located in an ozone nonattainment area or in an ozone transport region, the significant emission rates and other requirements for volatile organic compounds in R 336.2901(gg)(i)(D), R 336.2901(gg)(ii) and R 336.2901(gg)(v) shall apply to nitrogen oxides emissions. (iv) Notwithstanding the significant emissions rate for carbon monoxide in R 336.2901(gg)(i)(A), significant means, in reference to an emissions increase or a net emissions increase, any increase in actual emissions ofcarbon monoxide that would result from any physical change in, or change in the method ofoperation of, a major stationary source in a serious nonattainment area for carbon monoxide ifsuch increase equals or exceeds 50 tons peryear, provided that the United States environmental protection agency has determined that the stationary sources contribute significantly to carbon monoxide levels in that area. (v) Notwithstanding the significant emissions rates for ozone in R 336.2901(gg)(i)(D) and R 336.2901(gg)(ii), any increase in actual emissions ofvolatile organic compounds from any emissions unit at a major stationary source ofvolatile organic compounds located in an extreme ozone nonattainment area that is subject to subpart 2, part D, title 1 ofthe clean air act shall be considered a significant net emissions increase. (hh) "Significant emissions increase" means, for a regulated new source review pollutant, an increase in emissions that is significant for that pollutant. (ii) "Stationary source" means any building, structure, facility, or installation which emits or may emit a regulated new source review pollutant. (ij) "Temporary clean coal technology demonstration project" means a clean coal technology demonstration project that is operated for a period of5 years or less, and that complies with the state implementation plan and otherrequirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated.

# 0 

# 0STATE OF MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY LANSING 

# DE€!

RICK SNYDER

GOVERNOR



### CERTIFICATE OF ADOPTION DAN WYANT DIRECTOR



### I, Dan Wyant, Director ofthe Department of Environmental Quality, do formally adopt the attached administrative rules by amending R 336.2901 (Part 19) ofthe Michigan Administrative Code. These rules are adopted pursuant to Sections 5503 and 5512 of Part 55, Air Pollution Control, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended, and Executive Reorganization Order Nos. 1995-16 and 2011-1.

ORR 2010-022 EQ

CONSTITUTION HALL • 525 WEST ALLEGAN STREET• P

.O

. BOX 30473 • LANSING, MICHIGAN 48909-7973 www.michlgan.gov/deq • (800) 662-9278RICK SNYDER GOVERNOR STATE OF MICHIGAN DEPARTMENT OF ENViRONMENTAL QUALiTY LANSING

June 23, 2011

Ms. Norene Lind, Administrative Rules Manager Office of Regulatory Reinvention Department of Licensing and Regulatory Affairs 111 South Capitol Avenue -4th Floor Lansing, Michigan 48933-1070 Dear Ms. Lind: DAN WYANT DIRECTOR**SUB~IECT:** Certificate ofAdoption for Administrative Rules Promulgated Pursuant to Part 55, Air Pollution Control, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as Amended (Act 451), ORR 2010-022 EQ The Certificate of Adoption for the administrative rules promulgated pursuant to Part 55 of Act 451 is being forwarded to you, along with a reference copy of the administrative rules, in accordance with the provisions of Executive Order 2005-1 and the January 5, 1996, memorandum from the former Office of Regulatory Reform. Rule 1901 (R 336.2901) is being modified because the U.S. Environmental Protection Agency (EPA) has revised the federal regulations pertaining to the Prevention of Significant Deterioration (PSD) and nonattainment New Source Review (NSR) air permitting programs by adding requirements for particulate matter less than 2.5 microns in size (PM 2.5), specifically, a significance threshold. The EPA has established a significance threshold in order to limit the applicability of PSD and NSR regulations to sources with emissions above the significance level. To be consistent with the federal requirements, R 336.2901 needs to be amended to add the significance threshold for PM 2.5. By amending this rule, the Department of Environmental Quality (DEQ) expects full EPA approval ofthe Michigan rules for the PSD and nonattainment NSR. The Legislative Service Bureau certified these rules on May 18, 2011, and your office formally approved the rules on May 14, 2011. These rules were delivered to the Joint Committee on Administrative Rules on May 23, 2011. Ifyou have questions orcomments regarding the rule changes, please contact Mr. Dave Fiedler, Regulatory Affairs Officer, at 517-335-6927, or you may contact me. 

# rei0

# , tf

a Wyant 

# [ j
Director 

### I 517-373-7917 Enclosures

CONSTITUTIO N HALL • 525 VIlEST ALLEGAN STREET • P.O. BOX 30473 • LANSING

. MI CHIGAN 48909-7973 www.michlgan

.gov/deq • (BOO) 662
-9278Ms. Norene Lind Page 2 June 23, 2011

cc: Mr. Jim Sygo, Deputy Director, DEQ Mr. G. Vinson Hellwig, DEQ Mr. Dave Fiedler, DEQ Ms

. Susan Maul, DEQ Mr. Robert Irvine, DEQ Ms. Carrie Barr, DEQ Ms. Teresa Cooper, DEQ cc/enc: AQD File, ORR File ORR 2010-022 EQRICK SNYDER GOVERNOR 

# •
STATE OF MICHIG.A...N EXECUTIVE·OFFICE LANSING



### March 24, 2011 Ms. Susan Hedman, Regional Administrator U.S. Environmental Protection Agency Region 5 77 West Jackson Boulevard (R-19J) · Chicago, Illinois 60604-3507 Dear Ms. Hedman: 0

... -·

BRIAN CALLEY

LT. GOVERNOR



### The federal Clean Air Act requires Michigan to submit revisions to the State Implementation Plan and the Title V Program to the U.S. Environmental Protection Agency. It also provides an opportunity for the state to request delegations and make grant applications to fund air quality programs: On January 4, 2011, Executive Order 2011-1 was issued abolishing the Michigan · Department of Natural Resources and Environment and establishing the Michigan Department of Environmental Quality (MDEQ) and the Michigan Department of Natural Resources. I hereby delegate the Governor's authority to make any submittal, request, or application under the federal Clean AirAct to Mr. Dan Wyant, Director, MDEQ. This delegation is effective as of March 13, 2011.

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

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

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

# D

### Legal Division John C. Bollman, Director 

### CERTIFICATE OF APPROVAL I hereby certify that the Legislative Service Bureau has examined the attached proposedrule ofthe Department ofEnvironmental Quality, dated March 14, 2011, amending R 336.2901 ofthe Department's rules entitled "AirPollution Control, Part 19," and further certify that, pursuant to section 45 of 1969 PA 306, MCL 24.245, the Legislative Service Bureau approves the rule as to form, classification, and arrangement.

Dated: May 18, 20 11

LEGISLATIVE SERVICE BUREAU

Michigan Legislature 124 W. Allegan Street, 3nt Floor • P.O. Box 30036 • Lansing, MI 48909-7536 • (517) 373-9425 • Fax: (517) 373-0171RICK SNYDER GOVERNOR**STA~** OF MICHIGAN DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS LANSING


## LEGAL CERTIFICATION OF RULES STEVEN H. HILFINGER DIRECTOR



### I certify that I have examined the attached administrative rules, dated March 14, 2011, in which the Department ofEnvironmental Qualityproposes to modify a portion ofthe Michigan Administrative Code entitled, 

### "AirPollution Control- Part 19. New SourceReview for Major Sources ImpactingNonattainment Areas," by:

• Amending R 336.2901

The Legislative Service Bureauhas approved the proposed rules as to form, classification, and arrangement. 

### I approve the rules as to legalitypursuantto the Administrative Procedures Act, MCL 24.201 

### etseg. and Executive OrderNo. 2005-1. 

### In certifyingthe rules as to legality, I have determined that they are withinthe scope ofthe authority ofthe agency, do not violate constitutional rights, and are in conformity withthe requirements ofthe Administrative Procedures Act

Dated:

## 5-1.~ -..l_o) (

2010-022 EQ Office ofRegulatory Reinvention
By:

# ---L-.~~·1tV& 

# __ Rob Nederhood, Deputy Director

OFFICE OF REGULATORY REINVENTION 111 S. CAPITOLA VENUE • P.O. BOX 30004 • LANSING, MICHIGAN 49809 (517) 335-8658 • www.michigan.gov/lara

### To: Secretary ofthe Senate STATE oF M:rcmGAN RUTH JoHNSON. SECRETARY oF S'I:ATE DEPARTMENT OF STATE LANsiNG 

### !une 29, 2011


## NOTICE OFFILING
ADMINISTRATIVE RULES

Clerk ofthe House ofRepresentatives Joint Committee on Administrative Rules State Office ofAdministrative Hearings and Rules (Administrative Rule #2010-022-EQ) Legislative Service Bureau (Secretary ofState Filing # 11-06-08) Department ofEnvironmental Quality



### In accordance with the provisions ofSection 46(1) ofAct 306, Public Acts of 1969, as amended, and Executive Order 1995-6, this is to advise you that the Michigan Department of Environmental Quality and**th~** 

### State Office ofAdministrative Hearings

- and Rules filed Administrative Rule #2010-022-EQ (Secretary ofState Filing #11-06-08) on this date at 4:16 P.M. for the Department ofEnvironmental Quality, entitled "Part 19, New Source Review For Major Sources Impacting Nonattainment Areas". These rules become effective immediately upon filing withthe Secretary ofState.
Sincerely, Ruth Johnson Secretary ofState 

# grqb\J()

# ~.

# \1CJU~kl\

# JiL_

Robin 

### L. Houston, Departmental Super\risor Office ofthe Great Seal ·

, Enclosure ··

OFFICE OF THE GREAT SEAL 108 SOUTH WASHINGTON SQUARE, SUITE 1 • LANSING, MICHIGAN 48918 1-888-SOS-MICH (1-888-767-6424) www .Michigan .gov/sosAgency Report to the JOINT COMlV.UTTEE ON ADMINISTRATIVE RULES This form must be completed by the department/agency that has the statutory authority for promulgating the rules. Please send an electronic copy of this form to the State Office of Administrative Hearings and Rules (SOAHR) at soahr_rules@michigan.gov. The SOAHRwill reviewthe document, the newspaperadvertisements, and the correspondingrulespriorto completing the legal certification ofthe rules. Please be sure to sendto the SOAHRproofs ofpublicationforthe three newspaperadvertisementsrequired byMCL 24.242(1). You may mail them orsend them as a scanned attachment.
Department ofEnvironmental Quality (DEQ) (formerly known as Natural Resources and Environment DNRE

and 2010-005 MH Title ofrules: Air Pollution Control, Part 18, Prevention ofSignificant Deterioration ofAir Quality, and Part 19, New Source Review for Ma'or Sources 

### 1m actin Nonattainment Areas

2. Purpose for the proposed rules and bac(Q!round: The U.S. Environmental Protection Agency (EPA) has revised the federal regulations pertaining to the Prevention ofSignificant Deterioration (PSD) and nonattainment New Source Review (NSR) airpermitting programs by adding requirements for particulate matter less than 2.5 microns in size (PM 2.5), specifically, a significance threshold. The EPA has established a significance threshold in order to limit the applicability ofthe PSD and NSRregulations to sources with emissions above the significance level. To be consistent with the federal requirements, R 336.2801 and R 336.2901 need to be amended to add the significance threshold forPM2.5. The EPA has proposed to disapproveR 336.2816 from Michigan's State Implementation Plan (SIP) submittal. By amending this rule, Michigan expects full SIP approval ofour state rules for PSD. Such approval would enable the State ofMichigan to fully carry out the program, eliminating a federal appeals process that applies under the current delegation offederal authority. A recent court ruling has determined that the administrative appeal mechanisms found inR 336.2830 and R 336.2910 conflict with statutory provisions, which provide appeals exclusively through a court action. The only wayto address this conflict is to rescind both R 336.2830 and R 336.2910.

R 336.2801 and R 336.2816 R 336.2801 and R 336.2816 are being revised to be consistent with federal and state requirements for the PSD ofair quality found 

### in 40 CFR 51.166(p ). We propose to modify existing language in R 336.2801 to add a significance threshold for the PM 2.5 pollutant. The EPA has revised the regulations pertaining to the PSD program by adding requirements for PM 2.5, specifically, a significance threshold. The EPA has established a significance threshold to limit the applicability ofthe PSD regulations to sources with emissions above the significance level. The PM 2.5 is a new standard with a new significance level. A revision toR 336.2801 is proposed to add the new threshold of 10 tons per year. We also propose to modify existing language in R 336.2816 to be consistent with the federal requirements for the PSD ofAir Quality, 40 CFR 51.166(p). The EPA has proposed to disapproveR 336.2816 from Michigan's SIP submittal. With this change, Michigan expects full SIP approval ofour state rules for the PSD program. 

### R 336.2901 We propose to modify existing language in R 336.2901 to add a significance threshold for PM 2.5. The EPA has revised the regulations pertaining to nonattainmentNSR by adding requirements for PM 2.5, specifically, a significance threshold. The EPA has established a significance threshold to limit the applicability ofnonattainmentNSR regulations to sources with emissions above the significance level. The PM 2.5 is a new standard with a new significance level. A revision toR 336.2901 is proposed to add the newthreshold of 10 tons per year. R 336.2830 and R 336.2910 R 336.2830 and R 336.2910 provide an administrative appeal mechanism for the PSD and the nonattainmentNSR programs. These rules are proposed to be rescinded because ofa recent court ruling that administrative appeals conflict with statutory provisions that instead provide a circuit court venue for a eals. 

### 4. Name ofnewspapers and date ofpublication in newspapers (minimum 3 newspapers ofgeneral circulation, representing different parts ofthe state, one of which must be located in the Upper Peninsula): The Notice ofPublic Hearing was published in the following newspapers on July 6, 2010: • The Oakland Press • Lansing State Journal • The Mining Journal

### 5. Time, date, location and duration ofpublic hearin2: August II, 2010, from 10:05 a.m. to 1 0:26 p.m. Brake Conference Room, Constitution Hall, Atrium South 525 West Allegan Street, Lansing, Michigan 

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

### 7. Agency representative(s) attending hearing (include agency name and title of representative[s]): The following DEQ-AQD staffattended: G. Vinson Hellwig, Division Chief Jerry Avery, Supervisor ofField Operations Brenda Blemaster, Administrative Rules Coordinator JeffRathbun, Environmental Engineer, Permit Section Robert Irvine, Supervisor ofthe Strategy Development Unit



### 9. Persons submittin letters, comments and testimon Letter submitted by: Shannon Fisk Senior Attorney Natural Resources Defense Council Comments: 

### I. DNRE's Proposed PM2.5 Amendments Are Incomplete Comment: The National Resources Defense Council (NRDC) submitted a comment that stated, "One major goal ofthe Proposed Amendments is to add language regarding PM2
.5 to make the Michigan SIP consistent with federal requirements. (StaffReport at 1 ). The Agency proposes to achieve this goal by inserting a 

### PMz.s significance threshold of 10 tons peryear (tpy) for both the Prevention ofSignificant Deterioration ("PSD") and the Non-AttainmentNew Source Review (''NANSR") regulations. (See Proposed R 336.2801(qq)(i)(D) and 336.2901(gg)(i)(G)). While the DNRE has properly proposedto adopt the 10 tpy threshold for PM2.s set forth in federal regulations, Implementation of the New Source Review (NSR) Program for Particulate Matter Less Than 2.5 Micrometers (PM2.5), 73 Fed. Reg. 28,321-02,28,332-33 (May 16, 2008) ("2008 PM2.s Rule"), the Proposed Amendments improperly fails to incorporate significance thresholds for 

### PMz.s precursors, as required by the 2008 PM2.5 Rule. 73 Fed. Reg. at 28,325-28."DNRE Response: The DNRE is aware that there are other aspects ofthe NSR PM2

.s implementation provisions that are not being incorporated into this rulemaking. The focus ofthe PM2

.s revisions was to include the PM2
.5 significance value only. Other related revisions will be made in a future rulemaking. This will include rulemaking ofrevisions that the U.S. Environmental Protection Agency (EPA) has recently fmalized, addressing all aspects ofthe NSRPM2.5 provisions. 

### ll. The Proposed Amendments Fail to Establish Rules That Satisfy Clean Air Act Requirements Regarding Federal Land Managers and Class I Areas. Comment: The NRDC submitted a comment about R336.2816 with multiple concerns, summarized as follows. Even with the proposed amendments, R 336.2816 (Rule 1816) still fails to provide an adequate Federal Land Manager (FLM) consultation provision. In particular, while the rule provides that the DNRE will give the EPA notice ofpermit applications and actions on those applications, requires denial ofa permit application ifcertain findings are made by FLMs and concurred with by DNRE, and allows the issuance ofa permit for a source that would exceed certain impact thresholds ifthe FLMs and other entities approve, Rule 1816 does nothing to "provide a mechanism" for ensuring that the FLMs and the public have a meaningful opportunity to raise such Class I area issues with the DNRE. 

### Inparticular, even with the proposed amendments, Michigan's SIP continues to fail to require the DNRE to meet federal regulations by: (1) providing notice to an FLM, (2) presenting all relevant information to the FLM, (3) considering an adverse impact fmding made by an FLM, or (4) requiring public notice and an opportunity to comment on any DNRE rejection ofan FLM adverse impact finding. Withoutprovisions that specifically address the requirements of40 CFR §§ 51.166, 51.307, and 52.21, the SIP does not ensure that FLMs are aware ofproposed sources and have the information needed to evaluate the impacts ofthose sources, that an FLM's adverse impact finding will actually be considered, orthat the public has an opportunity to participate meaningfully in ensuring that AQRVs in Class I Areas are fully protected. Since such steps are required by the Clean Air Act and EPA's regulations, the proposed amendments fail to ensure that the FLM and Class I Area requirements 

### in Michigan's SIP are adequate

. As such, the DNRE should revise the proposed amendments so that Rule 1816 satisfies all ofthe FLM consultation requirements discussed above. DNRE Response: Federal regulations in 40 CFR 51.166 delineate the requirements for

.SIPs necessary to receive approval ofPSD programs. Since the purpose ofDNRE adopting the Part 18 rules was to obtain approval ofMichigan's PSD program and change from being a delegated state to a SIP-approved state, we are attempting to address the requirements of40 CFR 51.166 in the proposed rule modifications. Rule 1816 has been written with the intent to incorporate all ofthe requirements under 40 CFR 51.166(p), which identifies the necessary elements ofstate PSD SIPs for sources impacting Class I areas. In contrast to 51.166,40 CFR 52.21 describes the PSD**r~uirements** instates that have not adopted a PSD SIP (i.e., delegated states and those in which the EPA is administering the PSD program). Therefore only one ofthese regulations is applicable to a state's PSD program and 40 CFR 51.166 appropriately sets the requirements to be achieved in Rule 1816. 40 CFR 52.21 is not applicable. 40 CFR 51.307 is part ofSubpart P ofPart 51, which describes the required elements ofstate SIPs to address regional haze. 40 CFR 51.307 describes the new source review requirements for regional haze. The provisions of51.307 were not included in the PSD SIP requirements of40 CFR 51.166 and thus are not currently addressed in Rule 1816. The DNRE will consider the need to address 51.307 at a future time as an element ofMichigan's regional haze SIP as opposed to a provision ofthe PSD SIP. Additionally, the NRDC suggests that the DNRE has not incorporated a mechanism for the FLMs or the public to have meaningful opportunity to raise such Class I issues with the agency. We agree that proposed Rule 1816 does not adequately "provide a mechanism" for the FLM to raise Class I issues, as is required by 40 CFR 51.166(p)(3). While Rule 1816(3) requires an applicant to consult with the FLM in certain situations, it is not comprehensive and does not identify the information that would be provided to the FLM in order to consider Class I issues nor include the FLM's fmdings as part ofthe permit application review. In response to the comment, the DNRE has added language in Rule 1816(2) and moved some ofrule 1816(2) to a new paragraph (3) that will require applicants for all PSD permits that affect a Class I area to submit a demonstration to the department and the FLM, allow for the FLM to review the demonstration in consultation with the department and then provide the FLM's findings to the department for review as a part ofthe application. We believe these changes incorporate the mechanism for the FLM to raise Class I issues with the agency, as required by 51.166(p)(3). The public will have a meaningful opportunity to raise issues with regards to the Class I issues during the public notice period required for all PSD permitting in Michigan. Therefore, current Rule 1816 language is sufficient in this respect.

R 336.2816 Sources impacting federal class I areas; additional requirements. Rule 1816. (1) The department shall transmit to the United States environmental protection agency a copy ofeach permit application relating to a major stationary source or major modification and provide notice to the United States environmental protection agency ofevery action related to the consideration ofthe permit. (2) Ifan applicant submits a permit application to the department for a the proposed major stationary source or major modification that affects a federal class I area, the applicant must submit to the department and the federal land manager charged with direct responsibility for management ofclass I lands a demonstration ofthe impact the emissions from the proposed source or modification would have on the air quality related values ofclass I lands, including visibili

. The de artmentshall be available to consult with and rovide additional information

# I to the federal land manager during the federal land manager's review ofthe demonstration submitted by the applicant, ifnecessary, to complete the review ofthe demonstration. (3) the**de~&rt!Beftt** shall aet**~~Fen** the**~ermit ~~lieatiea**  Ifthe federal land manager's review of the applicant's demonstration results in a finding that the emissions from the proposed major source ormajor modification would have an adverse impact on the air quality related values ofclass I lands, including visibility, notwithstanding that the change in air quality resulting from emissions from a major source or major modification would not cause orcontribute to concentrations that would exceed the maximum allowable increases for a class I area, and ifthe department concurs with such finding, then the department shaD not approve the permit application. (;.4) Ifthe department determines thatthe emissions from a proposed major source ormajor modification would cause or contribute to concentrations which would exceed the maximum allowable increases for a class I area, the department shall not approve a permit application unless the applicable requirements ofMichigan's state implementation plan are otherwise met and 1 ofthe following occurs: (a) The applicant submits a written certification thatthe applicant has demonstrated to the federal land manager that the emissions from the proposed major source or major modification would have no adverse impact on the air quality related values ofclass I lands, including visibility, notwithstanding that the change in air quality resulting from emissions from a major source ormajor modification would cause or contribute to concentrations that would exceed the maximum allowable increases for a class I area. The department may then, provided that applicable requirements are otherwise met, issue the permit with emission limitations to assure that emissions ofsulfur dioxide, particulate matter, and oxides ofnitrogen would not exceed the following maximum allowable increases over minor source baseline concentration for the pollutants: Table 183 Maximum allowable increases over minor source baseline concentrations Pollutant Maximum allowable increase (micrograms per cubic meter) Particulate matter: PM-10, annual arithmetic mean 17 PM-I0, 24-hour maximum 30 Sulfur dioxide: Annual arithmetic mean 20 24-hour maximum 91 3-hour m. aximum 325 Nitrogen dioxide: Annual arithmetic mean 25 (b) Ifthe department cannot approve the permit application under R 336.2816(;.4)(a) due to sulfur dioxide emissions resulting in increases greater than those specified in Table 183 for periods of24 hours or less, the applicant may obtain approval by providing a written certification that the applicant has demonstrated to the federal land manager that the emissions from the proposed major source or major modification would have no adverse impact on the air quality related values ofclass I lands,dioxide variance for the federal class I area on which variance the public has received notice and opportunity for public hearing. (c) Ifthe department cannot approve the permit application under R**336.2816(~)(a)** due to sulfur dioxide emissions resulting in increases greater than those specified in Table 183 for periods of24 hours or less, and the department cannot approve the permit application under R**336.2816(~)(b)** because the federal land manager does not concur with the governor's issuance ofa sulfur dioxide variance that is otherwise consistent with R 336.2816(J-4)(b), the applicant may obtain approval by providing a written certification that the applicant has demonstrated to the president that a sulfur dioxide variance is in the national interest and the president concurs with the issuance ofthe sulfur dioxide variance by the governor. The applicant shall transfer the recommendations ofthe governor and the federal land managerto the president in any case where the governor recommends a variance in which the federal land manager does not concur. (45) The department will not issue a permit affecting a class I area in which a sulfur dioxide variance was granted under R**336.2816(~)(b)** or (c), unless the permit includes emission limitations necessary to assure that emissions ofsulfur dioxide from the major source ormajor modification would not, during any day on which the otherwise applicable maximum allowable increases are exceeded, cause orcontribute to concentrations which would exceed the following maximum allowable increases over the baseline concentration and to assure that emissions would not cause orcontribute to concentrations which exceed the otherwise applicable maximum allowable increases for periods ofexposure of24 hours or less for more than 18 days, not necessarily consecutive, during any annual period. Table 184 Maximum allowable sulfur dioxide increments Period ofexposure

24-hour maximum

Name ofperson completing this report: 

## IRobert Irvine 

## I

Date report completed: I 3-18-11

(SOAHR-JCAR June 2009) Maximum allowable increase (micrograms per cubic meter) Terrain areas Low

36 High 62

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

### 11, 2010

Introduction 

### Good morning. My name is Jerry Avery, and I am the Supervisor ofthe Field Operations Section in the Air Quality Division at the Michigan Department of Natural Resources and Environment. I will be serving as the Hearing Officer for this public hearing on the proposed administrative rule revisions to Part 

### 18- Prevention of Significant Deterioration ofAir Quality and Part 

### 19- New Source Review for Major Sources Impacting Nonattainment Areas. With me are Brenda Blemaster, Administrative Rules Coordinator for the Air Quality Division; Vince Hellwig, Chief ofthe Air Quality Division, who is representing the Director ofthe Department, Rebecca Humphries, as the decision-maker on these administrative rules; and Jeff Rathbun from the Permit Section in Air Quality Division, who has been instrumental in developing the proposed revisions to these administrative rules.
Hearing Agenda 

### First, we will begin with some background information about why we are here. Then, we will describe the purpose ofthe hearing and how your comments will be used. Following that, we will outline the procedures under which we will take your comments and describe what will happen after today's hearing. Then, it will be time to hear your comments. We will spend the majority oftoday's time listening to those comments. At the end ofthe hearing, we will provide a short summary and closing.
Background Information 

### The Air Quality Division is responsible for protecting Michigan's air resources. The law governing those responsibilities is Sections 

### 5503 and 

### 5512 of Part 

### 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 

### 1994 PA 

### 451, as amended. We are here for a public hearing on proposed amendments to Parts 

### 18 and 

### 19 ofthe administrative rules for Air Pollution Control, State Office ofAdministrative Hearings and Rules Nos. 

### 2009-055 NE, 

### 2010-005 SR, 

### 2010-022 NE, and 

### 2009-056 SR. Jeff Rathbun will now briefly summarize the proposed revisions.



### 1

### Purpose of Public Hearing Thank you Jeff. Now Brenda Blemaster will describe the purpose oftoday's hearing and how your comments will be used. In order for rule promulgation to occur, the Department must follow the procedures set forth in the Administrative Procedures Act of 1969 and the State Office ofAdministrative Hearings and Rules' procedures. The purpose oftoday's hearing is to give anyone interested in the proposed rules an opportunity to provide information that the Department can use in making its decision. Please recognize that we can only use the infonnation you provide if it relates to the criteria that the Department must use in making a decision. Some ofyou may want to simply express your support or opposition to the proposed rules. We will be happy to make note of your position, but please understand that the Department is, by law, not allowed to base our decision on whether or not there is widespread support or opposition to the proposed rules

.
Procedures The Notice of Public Hearing was published in the Oakland Press, Lansing State Journal, and Marquette Mining Journal on July 6, 2010. This notice along with the proposed rules was also published in the Michigan Register on July 15, 2010. Copies ofthe Notice of Public Hearing, Regulatory Impact Statements, proposed rules, and summary ofthe proposed rules were made available to those interested and are available today. As you came in, you were given an opportunity to fill out a public comment card

. We request that everybody fill out a card and indicate ifyou wish to make comments. We will use these cards to maintain a record of people who are interested in the proposed rules and to call upon those who want to make a statement today. To ensure that the hearing is conducted in a fair manner, we will follow these steps: 1. Mr. Avery, our Hearing Officer, will call on those who have indicated on the cards that they would like to speak, in the general order in which the cards were turned in

. When all ofthe cards have been completed, he will ask ifanyone else would like to make a statement. 2. When your name is called, please approach the microphone and give your statement. If you have written comments or materials that you would like to present, please hand them to Mr. Avery as you come to the microphone. Before you begin your comments, please state your name and any group or association you may represent.



### 2

### We ask everyone to be courteous and respectful to one another during this public hearing.

How the Information Will be Used 

### This hearing is being recorded and your comments will become a part ofthe information that the Department will consider when making its decision on the proposed rules. The public comment period for the proposed rules ends today at 5:00p.m. Any and all comments received by 5:00p.m. today will be considered when the Department makes its decision. Following the public hearing, we will review all ofthe comments and prepare an Agency Report, which includes the response to comments. The Agency Report will be available on the Department's website or by contacting the Air Quality Division office. The proposed rules and the Agency Report will be submitted to the State Office of Administrative Hearings and Rules and the Joint Committee on Administrative Rules. Once approved, the rules will be filed with the Secretary of State and become effective immediately. It is estimated that this process will take approximately four to five months to complete. Thank you Brenda. I will now begin calling the names ofthose who have indicated that they would like to make a statement.



### 3

### Closing Statement Thank you for your comments and cooperation. We appreciate that you have shown an interest in these proposed rule revisions by taking the time to be here today. As previously mentioned, the public comment period ends today at 5:00p.m. Ifyou have any questions regarding the proposed rule revisions to Parts 18 and 19 of the Air Pollution Control Rules, Air Quality Division staffwill be available immediately following this hearing to answer them. The hearing is now closed. Thank you again.



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

### ss.



## .

## .~j.. 

## Cs\.9

..**~~~\:**

## ....................belng duly sworn, deposes and says that I am the

### \g~~~**l.~p**

### .............. of THE OAKLAND PRESS, 

### a**newspap~**printed and circulated dally In Oakland County, Michigan and that 1 held such position during the publication of the notice hereto annexed; that a notice of

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



## ......**\).U b.~** **~**

## ....**oa.\:-~.cc...**

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

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



## .....0£\C..-e..

.................................. Immediately preceding the 

### ".1

..**ofJ ~.\.~** ... that the annexed printed copy of said notice was taken**f~m** the sald newspaper
. That the dates of publication of said notice were
.................................................



## ....**J.~.\.**

## ....**~t.OlO.l..O**.. .. ........ ...... .... ............. ... .. ............... .. and**fu ~f-rill;r.onent**  sayeth**~~**



### ....

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

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

### ··········································································· Subscribed and sworn to before me this

.......... 

# fa

........ day of

.... .......... .... ..................... ....... .... ... .... ..... . .A.D. 20

.

### .1.1?.

........

## ~ .................................................................................................. NOTARY PUBUC, OAKLAND COUNTY, MICHIGAN
TJNA M. CROWN NOTARY ..PUBLIC, STATe OJ Ml COUNTYOF lAPEER MV COMMISSION EXPIRESMar30,201Af ACTJNGINCOUNTYOF**~** 

## RECEIVED JUL 0 9 

## 2010 AIR

## OUALITY DIV..I.. .I...I..U l.l'.l..l..J..**~** .J.J.**~** '-.7 " 

### v u .£\.J. 'lllj 1'\....L 

### Upper Michigan's Largest Daily 

### Newspaper 24<9 

### W. Washington St

., 

### P.O. Box 4-SO, 

### Marquette, Michigan 49865. 

### Phone (906)228-2500. Fax (906)228-S27S 

### AFFIDAVIT OFPUBLICATION STATE OFMICHIGAN

Forthe County of 

### MARQUETTE In the matter of: Notice of Public 

### Hearing Department of Natural Resources and Environment Air QualityDivision

Cost: $105.50



### State of 

### MICIDGAN, County of Marquette ss. 

### JAMES A. REEVS Being duly sworn, says that he is 

### PUBLISHER of 

### THE MINING JOURNAL



### a newspaper published and circulated in said county and otherwise qualified according to Supreme CourtRule; that annexed hereto is a printed copy of a notice which was published in said newspaper on the following date or dates, to-wit
July 6, 2010

scribed and sworn to before me this 7th day of July, 2010.

I

# ,li~, Lhf /{tuuAfL-.-) ROB**M.~EN** 

### Notary Public for Marquette County, Michigan Acting in the County of Marquette My commission expires: April27, 201S 

### AFFIDAVIT OF PUBLICATION
NOTICE OF PUBUC HEARING DEPARTMENTOF NA· lUAAl RESOURC,fS

·-AND-eMRONMENT

· AlA QU.A,UTY DIVISION

### ~~~-**j**

Resources and Enmmment (ONREJ, Air 

### I Quaily Divlaion, wil ; conduct "II pttJichilar- ; '"II 00proposed ad- 1 rninls1ratiYe rules ;

### ~~~**I** lion Conlrol,ofthe

. Na### 1 1lon Act, 1994 PA 451' 

## I

·as amended (Act · · <461); R336-2801, R i 336.2816; R

. 

### I 336..283l,'fl 3:38.2901 , andA

. 336.2910

. A 336.2801 I andA 336.2901 11111 ' being amendadtl · . 

# I add 1he ,_lederaly prornulgal8d.sigri!tcanc:e 'fraslioJijlor

. i PM 2.5. A336.2816 Is 

# I beino amerided to
. . ·.· maiCh lhe·lederal ,. · qUlrements tor Class I

eras. ArecentcOurt ·

. ·ruling hasdllletmined 1 " that 1he lldminislrallve appealprocessout-
.. .I lnedIn A336.2830· · 1
" ih"d A3:l6.2910 con- j llicla with Slalulorypre-· . visions. :n- ruleS wtRbe.resOOdedtJ adi:lrass1hls conlllct: ThepubDi:h8.ina

· w

ill beheldooWeanes-

·day, Ailgusn 1, 2010, at 10:00 a.m. In 1he Bnlk8CooflllllllC!i Room, ConslltutJon**Hal~**Afun Sou1h, 525WestAlegan •

# -;::~·**/** 1\Aes(SOAHR 2009-055 NE, 2009-056 SR. 201G-022 NE. ai!d · , 20:1o.oos SR) can be J downloaded Iran 1he lntemet athllp://WwW.

. mlctllgan.gov/ deqalr'

. : These mes can also

## ~=**~** the State Offioe Of M- i l11inis1raiNe Heamgs and Rules at hllp:/N;w,v.mlt:Hgan. gov/soal1"

. CoPies of1he nMsmay also beob-

### ~~ DNAE • NrQuarrty

· . OMslon

. P.O

. Box 30260 Lansing, Mlctdgan

48909-neo Phone:**517~964**

- · FaX: 51

- 7-241-7499 E-Mail:blemastetMt mictligan.gov Allntllresled parsons are lnvtled to ilttend and ptesant1heir w.ws. ItIs raqueslad**thai~** slalomentsbe suanitiBd In writing lor 1hehearing record. 1 Anyone unable 1o at- tend maysubmH com- ments in Miting to 1he address above. Writ·

. lancanmenls must be roceMid by 5:00p.m. 00August 11,2010

. Ptnons naeding accom-

. modallons tor effective

participation in 1he· rneeUng

_ should con-

### =:~ · 517,335-6984 one

week itadvancelo 11t- I

. ;quest rnobillly, W!ual,

.

heari\g. oreitheras: sJstance, This nolic8 olptmlic

.

hearing 1:;**~** In ac-

.cadance wi1h Sec- ·, lions 41 and42 of •
.Mdllgan's Adrnlni&-

··lrallve Procedures Act,

. · 1969 PA 306,as

amended, beirg$eolions 24.241 and

· 24.242 of 1he Michl·

. 98'!Complied Laws·

·(MCL). Admilsration of the rules Is byau-· 1horily conferred on the Directorof fie ONRE bySections 5503and5512of"Act 451, MCL324.5503 and 324

.5512, and ExeculiYe Reorganization OrderNos. 1995-18and 2009-31, MCL 324.99903and MCL '324.99919. Aulhority for promulgation olf\ 336.2910 andA 336.2830 Is confemid**~Oifice** Heati1gs ll!1d RJies byERO 2005-1, MCL

. 445.2021

.. Thes&ruJas wtJJ become elfeclive i rt111111Cia1ely afterti1119 wi1h the Secretaryof State

. G

.VInsonHe1Jwl9 Chla!, -Air"Ouanty OMsion 11m& 7-6:-2010

## ~ECEIVED 

## JUL 0 9 2010 AIR QUALITY DIV.AFFIDAVIT OF PUBLICATION COMMUNTIYNEWSPAPERS, INC. 120 E. Lenawee. Lansing, MI 48919 State ofMichigan, County offugham

IN THE MATTER OF: NOTICE
DNRE AIR QUALITY DIVISION Anna Trudell Being duly sworn, says that he/she is authorized bythepublisher ofLansing State Journal., to swearthat a certain notice, a copy ofwhich is annexed here to, was published in the following publication:
1. Published in the English language for the dissemination ofgeneral and/or legal news, and 2. Has a bonfide list ofpaying customers orhas beenpublished at least once a week in the same communitywithout interruption for at least 2 years, and 

### 3. Has been established, published and circulated at least once a week without interruption for at least one 

### (1) year in the communitywhere the publicationis to occur. LANSING STATE JOURNAL

### ~ 7/6/10

# rt/~I~ Anna Trudell SUBSCRIBED AND SWORN TO BEFORE ME TillS 6TH DAY OF JULY, 2010 CARRIE A. SAVAGE NOTARY PUBLIC, STATE OF MICIDGAN, COUNTY OF EATON MY CO;MJVUSSION EXPIRES: SEPTEMBER4, 2014 ACTING IN THE COUNTY OF INGHAM
LE- 837394**~kl!J**stateJournal•· .lllesc:lay,July&.

. 2010

### ··:lsc t' ".;



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### .**~** :\ ·'I ;··;,· . ·::**"l'·- ~·** **~:**..:
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... ;_; .' •**:a~:-;:...** l , " · · ·-.?: · ·. TheMichigan DepartmentofNaturai.Re- sources**IUli:L.E)'\~Ir.o_nm,en( .<D~RE).,**  Air. ,,,**~ ~**  •.**~** QualitY Ojvlslor:r, will'**CO!'\dl.l~<i'** pa,bllc ·' .',

.

hear1Ag .on ·.{lrqposed**adi'nlnl~atlve** ,. rules prom\.algatea:'j:llirsuant.to**~·55,, ·:**  · Alr.·Pollirtlort CQritrol; ofthe'.Natu;al Resources·· and ·Eniilronmel)t;ir P.roteCtlon ' A

. ct. 1994 PA '451i'aS**iJlYI.~rided:(Act~45p;** R**3~6.2801 ,-** **. I'** **S36.2~l&;;iR •,3~~~831)i·IR**  336.2901;

- tand

.**R~336 2910.**  R 336.2801 il!;Od R**3~.2 ~1** **. ~~**  .f?.eln,.?

. amerded

. to • '!

.**agr;t~~;**f!riw,**fe.~er:li!Jll Pt-sitUilgate<l,I** **IJ~ ~ol**  ' " nlflciince"threshold for· ;PM'**~2.s:** ·R**~** • 336.2816 Is ·being amended to ·match**thei~f~deral reQ,I_!I~!ll.~nts** **J~r**

### ..class 1 • areas!

_ .A

.'rec.eot
. courj::1'\lll.ng**'1~** deter-· '!"
.mined

.. that

. th.e ad

. l'(llnlstrAtlve,'appeal ·**pr~s·** outlined**ln:·,R f-'** **~:3~,?830** 'and

. R •
. 336.291'0,**~17.fl~c.ts .**  with'**stab~tory .** provisions;**·Thes ~**  · rules·.'!VIII be rescinded to

. addresS:thls

. conflfct. ·..**'!?.,,..~.,** : , · ·.•
· The public hearing wlll.be.l:ittld .Qn'**Wed~ ~** **ne~ay,** Mgust·n,**.?o~o', ~~':l%oo'**  a.m. In

. the Bf;al(e ;**9.oriferen.~.e** . a,l:iom,<Constltu-

· : • tlon ·Hilll; Atrlurp · South; : 525 West , . Alletie,rl· Street.:Lansfng,**¥.1~1ll!l,aJJ-** · ,, Copies·qf .the proposed ruleS: (SOAHR · · . 2009;:,$5;NE;**'2009:;j}s;~::~~:, ~q1~22·**  NE: ' · and

. · . ·. ;: . ·....,. . -**2011Hl~5** SJ9·,can**b~** downloaded from the: · " · Internet

.,.,**~·** at; , http://.w.ww.m.lch**lo,a r:~** •**.o-<~i.r.LdeQJ!.lr, The~** **;** rules.**c~ .al~.o.** **be,,,do)Nnfoaded** ' frpr:n the Internet**tljr.ot.~glyt~e state** **of·** ., flee .of

.·.Admlnlst('atli!e

.. Hearings and : Rules.·

. ·. ;. · · · · )"**~.~ ~**  •,**~~**
, http://wWW.michlgan.go<t/soilhr, Cop·

.

les ofttie'" roles·;may.a,lso.bi!·:Obtalnedb_y'**C9!l~ctlng** the Lansing**of,fJ.c,~:** ot; ·

··: 

### . .. 

### .
1 • DNRE

-**.~lr** QualitY D.lvlslon

,, P.O. Box 30260

. ' •t ,,y;.'· ;;.·**~sing, Ml~hlgan** **48909:7.7.~0,** F

. 1 • , Phone:· 517:335-591}4 1
, Fax:.**517.-2tU~7.499** .; .

••• , 1 E-Mail:**biein¥;~~rb ®ryl,i<!J:llg.aJ1:goy**  '

.

## 't: ·· 1

:::·;**:AII.Irtt.e~~~. ·f:)** **ersons** '¥

. e**lnv!t~d to·~t~**  ·.**tel)~** and present tt:telr· ,ylews,

... It Is**r~** . quested**~\l,t(all** statements be ·submit•
·**,:~**..i ted lr(·wrltlng" for the-'hearlnfi

. recorCS..

.·

, :r

.. · Anyone unable.·to .atte.nd**~.w ·**  submit

comments· Jn

. vyi'ltlng ·to the'' address

,, above

. Written cqmments must be re- ••: celvedby5:00 p.m: Qn August

.ll,'2010.**Persdl;l~;jl~dln~ accommod~tlqQs** **:**fpr.

. i· etrectlv!i.•**))~91Jiatlon** ·Jn

..**th~ .** **meetlri~** , · • : should contact:the Alr:·.Quallty Olvlslo.h

- ,.. :;
· :.,. : at**5l1.~33~-6l)S;1 ~,!:le** **weektln~QIIarice-tv, :**  ,;. 4 .1r"'

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· ,,,,1 ,Micl't!gan•s**Mmlnl~~\1.~~ pr~~~~u~e~**  •

.**A~. 19~?lJ.** **·~~ ,,;}()6[~a.5.**  arrepded1>oeJng, \.

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. 451••**~CL** . 324;5503 !Pld' '324:5512,. and 'EXecutive Reorganization Order.Nos..**1995~18** and· 2009-31;·"MCL. -•324.99903--· a,rtd·· ·MCL

. ·1 324.99919.· A

. uthorlty: for promulgation

. ·Af R**336.2~~0** and· R**336,~~~ 1s-**  confer .,. red upon the StateOffice 9fAdmlnlstra:

-

### ~~i.t.!:s~~**~~e~1 ~1~:** **~~f~!~1~** . _ ;·. 0., effei:tlve.'lmm.edlatel0iaftet•flllng with

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# Michigan Register

Published pursuant to§ 24.208 of TheMichigan Compiled Laws



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



### Compiled and Published by the 

# State Office ofAdministrative Hearings and Rules

### Department ofNatural Resources and Environment Ait.Quality Division (SOAHR 

### # 2009-055) Part 18 Prevention ofSignificant Deterioration ofAir Quality

........................................ 133-145 Hearing Notice

.................................................................................................................. 146-146 

### Department ofEnergy, Labor and Economic Growth State Office ofAdministrative Hearings and Rules (SOAHR # 2009-056) Part I9 New Source Review for Major Sources Impacting Nonattainment Areas

........... l47-148 Hearing Notice

.................................................................................................................: 146-146 

### Department ofEnergy, Labor and Economic Growth State Office ofAdministrative Hearings and Rules (SOAHR # 201 0-005) Part 18 Prevention ofSignificant Deterioration ofAir Quality

........................................ I49- I50 Hearing Notice

.................................................................................................................. 146-146 

### Department ofNatural Resources and Environment Air Quality Division (SOAHR

### # 2010-022) Part I 9 New Source Review for Major Sources Impacting Nonattainment Areas

........... 151-I60 Hearing Notice

.......· ........................................................................................................... 146-146 

### Department ofAgriculture Pesticide and Plant Pest Management Division (SOAHR # 20I0-024) Regulation No. 628 Seed Potato Ce1tification

.................................................................. 161-162 Hearing Notice

.................................................................................................................. 163-163 

### Department ofEnergy, Labor and Economic Growth MIOSHA Occupational Health (SOAHR # 201 0-028) Part 604 Chromium (IV) In Construction 44(2)

............................................................... 164-165 

### Department ofEnergy, Labor and Economic Growth MIOSHA General Industry (SOAHR

### # 2010-029) Part 315 Chromium (IV) In General Industry 44(2)

......................................................... 166-167 

### Department ofEnergy, Labor and Economic Growth Workers' Compensation Agency (SOAHR # 2010-030) Workers' Compensation Health Care Services Rules

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

.................................................................................................................. 179-179 

### CERTIFICATION OF NEED REVIEW STANDARDS Department ofCommunity Health Certificate ofNeed Review Standards for Bone Marrow Transplantation (BMT) Services

............................................................... 181-182 

### Department ofCommunity Health Certificate ofNeed Review Standards for Heart/Lung and Liver Transplantation Services

............................................................... 183-1832010l\.1R 12-July 15,2010

PROPOSED ADMINISTRATIVE RULES SOAHR 2010-022 DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTAL QUALITY AIR QUALITY DIVISION AIRPOLLUTION CONTROL Filed with the Secretary ofState on This rule becomes effective immediately upon filing with- the Secretary ofState unless adopted under sections 33, 44, 45a(6), or 48 of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary ofState. (By authority conferred on the director ofthe department ofnatural resources and environmental quality by sections 5503 and 5512 of 1994 PA 451, MCL 324.5503 and 324.5512, and Executive Reorganization Order Nos. 1995-18 and 2009-31, MCL 324.99903 and MCL 324.99919) Draft 04/08/2010 R 336.2901 ofthe Michigan Administrative Code is amended as follows: PART 19. NEW SOURCE REVIEW FORMAJOR SOURCES IMPACTING NONATTAINMENT AREAS R 336.2901 Definitions.

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

(a) "Actual emissions" means the actual rate ofemissions ofa regulated new source review pollutant from an emissions unit, as determined under R 336.1101(b), except that this defmition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a plantwide applicability limit under R 336.2907. Instead, the terms "projected actual emissions" and "baseline actual emissions" shall apply for those purposes. (b) "Baseline actual emissions" means the rate ofemissions, in tons per year, ofa regulated new source review pollutant, as determined by the following: (i) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-yearperiod immediately preceding when the owner or operator begins actual construction ofthe project. The department shall allow the use ofa different time period upon a determination that it is more representative ofnormal source operation. The following shall apply: (A) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions.

1512010 MR. 12- July 15, 2010
PROPOSED ADMINISTRATIVE RULES SOAHR 2009-055 DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTt'\L QUALITY AIR QUALITY DMSION AIR POLLUTION CONTROL Filed with the Secretary ofState on This rule becomes effective immediately upon filing with the Secretary ofState unless adopted under sections 33, 44, 45a(6), or48 of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary ofState. (By authority conferred on the director ofthe department ofnatural resources and environmental qllfllity by sections 5503 and 5512 of 1994 PA 451, MCL 324.5503 and 324.5512, and Executive Reorganization Order Nos. 1995-18 and 2009-31, MCL 324.99903 and MCL 324.99919) Draft 05112/2010 R 336. 2801 and R 336.2816 ofthe Michigan Administrative Code are amended as follows: PART 18. PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY R 336.2801 Definitions.

Rule 1801. The following definitions apply to terms used in this part. 

### Ifa tenn defmed 

### in this part is also defined elsewhere in the rules, then the defmition contained here applies for this part only.

(a) "Actual emissions" means the actual rate ofemissions ofa regulated new source review pollutant from an emissions unit, as detennined under R 336.110l(b), except that this defmition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a plantwide applicability limit under R 336.2823. Instead, the terms "projected actual emissions" and "baseline actual emissions" shall apply for those purposes.

(b) "Baseline actual emissions" means the rate ofemissions, in tons per year, ofa regulated new source review pollutant, as detennined by the following:

(i) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-year period immediately preceding when the owner or operatorbegins actual construction ofthe project. The department shall allow the use ofa different time period upon a detennination that it is more representative ofnonnal source operation. All ofthe following provisions apply:

(A) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions.

(B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period.

1332010 MR. 12 -July 15,2010



### NOTICE OFPUBLIC HEARING

NOTICE OF PUBLIC HEARING DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT AIR QUALITY DMSION The Michigan Department ofNatural Resources and Environment (DNRE), Air Quality Division, will conduct a public hearing on proposed administrative rules promulgated pursuant to Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (Act 451); R 336.2801, R 336.2816, R 336.2830, R 336.2901, and R 336.2910. R 336.2801 and R 336.2901 are being amended to add the new federally promulgated significance threshold for PM 2.5. R 336.2816 is being amended to match the federal requirements for Class I areas. A recent court ruling has determined thatthe administrative appeal process outlined in R 336.2830 and R 336.2910 conflicts with statutory provisions. These rules will be rescinded to address this conflict. The public hearing will be held on Wednesday, August 11,2010, at 10:00 a.m. in the Brake Conference Room, Constitution Hall, Atrium South, 525 West Allegan Street, Lansing, Michigan. Copies oftheproposed rules (SOAHR. 2009-055 NE, 2009-056 SR, 2010-022 NE, and 2010-005 SR) can be downloaded from the Internet at: http://www.michigan.gov/deqair. These rules can also be downloaded from the Internet through the State Office ofAdministrative Hearings and Rules athttp://www.michi2"an.gov/soahr. Copies ofthe rules may also be obtained by contacting the Lansing office at: DNRE- Air Quality Division P.O. Box 30260 Lansing, Michigan 48909-7760 Phone: 517-335-6984 Fax: 517-241-7499 E-Mail: blemasterb@michigan.gov All interested persons are invited to attend and present their views. It is requested that all statements be submitted in writing for the hearing record. Anyone unable to attend may submit comments in writing to the address above. Written comments must be received by 5:00p.m. on August 11, 2010. Persons needing accommodations for effective participation in the meeting should contact the Air Quality Division at 517-335-6984 one week in advance to request mobility, visual, hearing, or other assistance. This notice ofpublic hearing is given in accordance with Sections 41 and 42 ofMichigan's Administrative Procedures Act, 1969 PA 306, as amended, being Sections 24.241 and 24.242 ofthe Michigan Compiled Laws (MCL). Administration ofthe rules is by authority conferred on the Director ofthe DNRE by Sections 5503 and 5512 ofAct451, MCL 324.5503 and 324.5512, and Executive Reorganization Order Nos. 1995-18 and 2009-31, MCL 324.99903 and MCL 324.99919. Authority for promulgation ofR 336.2910 and R 336.2830 is conferred upon the State Office ofAdministrative Hearing and Rules by ERO 2005-1, MCL 445.2021. These rules will become effective immediately after filing with the Secretary ofState.

146