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R 336.2901 and R 336.2910 (Rescinded) 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 of Environmental Quality 

Air Quality Division 

P. 0. Box 30260 

Lansing, Ml48909-7760 

INTERNET: http://www. michigan. govldeqair 
TABLE OF CONTENTS 

Item Page 

COMPLETENESS REVIEW 

COMPLETENESS REVIEW CHECKLIST ................................................. 1 

ATTACHMENTS 

ATTACHMENT A Final form of adopted rule(s), Part 19, effective June 29, 

2011. 

ATTACHMENT B Certificate of Adoption from the Director of the 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 of filing 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 Register notice 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 of the adopted rule in Part 19, which went into effect on June 29, 

2011, is included in Attachment A 

The Certificate of Adoption 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 under state 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 of the 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 of the 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 of the adopted rules, Part 19, with the effective date of June 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 of the 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 

of such 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), if applicable. 

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 of the comments received and the MDEQ responses are in Section 9 

of the Agency Report (Attachment F). 

Technical support 

1. Justification of rules revisions. 

The "Purpose of the Proposed Rules and Background," Section 2, and "Summary 

of Proposed Rules," Section 3, of the Agency Report provides the purpose and 

justification of the proposed rules (Attachment F). 

DEPARTMENT OF ENVIRONMENTAL QUALITY 

AIR QUALITY DIVISION 

AIR POLLUTION CONTROL 

Filed with the Secretary of State on June 29, 2011 

These rules become effective immediately upon filing with the Secretary of State. 

(By authority conferred on the director of the department of environmental quality by 

sections 5503 and 5512 of 1994 PA 451, MCL 324.5503 and MCL 324.5512, and Executive 

Reorganization Order Nos. 1995-16 and 2009-31, MCL 324.99903 and MCL 324.99919 and 

Executive· Order No. 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 FOR MAJOR SOURCES IMPACTING 

NONATTA~TAREAS 

R 336.2901 Definitions. 

Rule 1901. The following definitions apply to terms used in this part. If a 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 of emissions of a regulated new source 

review pollutant from an emissions unit, as determined under R 336.11 01(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 of emissions, in tons per year, of a 

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-year period 

immediately preceding when the owner or operator begins actual construction of the project. 

The department shall allow the use of a different time period upon a determination that it is 

more representative of normal 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. 

03114/2011 
2 

(C) 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. 

(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 if required by paragraph (i)(B) of this 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 of the 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, if an emission limitation is part of a maximum 

achievable control technology standard that the United States environmental protection 

agency proposed or promulgated under 40 C.F.R. part 63, then the baseline actual emissions 

need only be adjusted if the 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 if required by subparagraphs (B) and (C) of this paragraph. 

(iii) For a new emissions unit, the baseline actual emissions for purposes of determining 

the emissions increase that will result from the initial construction and operation of such 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) of this subdivision, for other existing emissions units under paragraph (ii) of 

this subdivision, and for a new emissions unit under paragraph (iii) of this subdivision. 

(c) "Begin actual construction" means, in general, initiation of physical on-site 

construction activities on an emissions unit which are of a permanent nature. Such activities 

include, but are not limited to, installation of building supports and foundations, laying of 
3 

underground pipework, and construction of permanent storage structures. "A change in 

method of operation" refers to those on-site activities other than preparatory activities which 

mark the initiation of the change. 

(d) "Best available control technology" or "BACT'' means an emissions limitation, 

including a visible emissions standard, based on the maximum degree of reduction 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 of production processes or 

available methods, systems, and techniques, including fuel cleaning or treatment or 

innovative fuel combustion techniques for control of such pollutant. Application of best 

available control technology shall not result in emissions of any 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. If the department determines that technological or 

economic limitations on the application of measurement methodology to a particular 

emissions unit would make the imposition of an 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 of BACT. 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 of the 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 of the same person, or persons under 

common control, except the activities of any vesseL PoJlutant-emitting activities are part of 

the same industrial grouping if they 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, or post-combustion stage, at a new or existing facility which 

will achieve significant reductions in air emissions of sulfur dioxide or oxides of nitrogen 

associated with the utilization of coal in the generation of electricity, or process 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 of energy-clean coal technology," up to a total 

amount of $2,500,000,000 for commercial demonstration of clean 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% of the total 

cost of the demonstration project. 

(h) [Reserved] 

(i) "Commence" as applied to construction of a major stationary source or major 

modification means that the owner or operator has all necessary preconstruction approvals or 

permits and has either of the following: 
4 

(i) Begun, or caused to begin, a continuous program of actual on-site construction of the 

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 of the source to be completed within a reasonable time. 

G) "Construction" means any physical change or change in the method of operation, 

including fabrication, erection, installation, demolition, or modification of an emissions unit, 

that would result in a change in emissions. 

(k) "Continuous emissions monitoring system" or "CEMS" means all of the equipment 

that may be required to meet the data acquisition and availability requirements of this rule, to 

sample, condition, if applicable, analyze, and provide a record of emissions on a continuous 

basis. 

(l) "Continuous emissions rate monitoring system" or "CERMS" means the total 

equipment required for the determination and recording of the pollutant mass emissions rate, 

in terms of mass per unit of time. 

(m) "Continuous parameter monitoring system" or "CPMS" means all of the equipment 

necessary to meet the data acquisition and availability requirements of this 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 of supplying more than 1/3 of its potential electric output 

capacity and more than 25 megawatts electrical output to 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 of the affected facility. 

( o) "Emissions unit'' means any part of a 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 of a 

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 of the following: 

(A) The emissions unit is a reconstructed unit as defmed within R 336.1118(b) or the 

emissions unit completely takes the place of an 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 of the process unit. 

(D) The replaced emissions unit is permanently removed from the major stationary 

source, otherwise permanently disabled, or permanently barred from operation by a permit 

that is enforceable as a practical matter. If the 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 of the 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 of flares during startup, shutdown, or malfunction permitted under 

such a standard, or a flare that serves to control emissions of waste streams comprised 

predominately of hydrocarbons 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 of emissions based on either of the following: 

(i) The most stringent emissions limitation that is contained in the implementation plan of 

any state for the same class or category of stationary 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 of stationary 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 of the term shall not permit a proposed new or modified stationary 

source to emit any pollutant in excess of the 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 of operation of a major stationary 

source that would result in both of the following: 

(A) A significant emissions increase of a regulated new source review pollutant. 

(B) A significant net emissions increase of that 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 of operation shall not include any of the 

following: 

(A) Routine maintenance, repair, and replacement. 

(B) Use of an alternative fuel or raw material by reason of an order under sections 2 (a) 

and (b) of the energy supply and environmental coordination act of 1974, 15 U.S.C. §792 et 

seq., or any superseding legislation, or by reason of a natural gas curtailment plan under the 

federal power act of 1995, 16 U.S.C. §791 -'828c et seq. 

(C) Use of an alternative fuel by reason of an order or rule under section 125 of the clean 

air act. 

(D) Use of an alternative fuel at a steam generating unit to the extent that the fuel is 

generated from municipal solid waste. 

(E) Use of an alternative fuel or raw material by a stationary source which meets either of 

the following: 

(1) The source was capable of accommodating before December 21, 1976, unless the 

change would be prohibited under any federally enforceable permit condition that was 

established after December 12, 197 6, under prevention of significant deterioration of air 

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 of operation 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 of a temporary clean coal technology 

demonstration project, provided that the project complies with both of the 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 of applying the requirements ofR 336.2902(8) to modifications at 

major stationary sources of nitrogen oxides located in ozone nonattainment areas or in ozone 

transport regions, whether or not subject to subpart 2, part D, title 1 of the clean air act, any 

significant net emissions increase of nitrogen oxides is considered significant for ozone. 

(vi) Any physical change in, or change in the method of operation of, a major stationary 

source of volatile organic compounds that results in any increase in emissions of volatile 

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, if the major stationary source is located in an extreme ozone 

nonattainment area that is subject to subpart 2, part D, title 1 of the clean air act. 

(t) "Major stationary source" means all of the following: 

(i) Any of the following: 

(A) Any stationary source of air pollutants that emits or has the potential to emit 100 tons 

per year or more of any regulated new source review pollutant, except that lower emissions 

thresholds shall apply in areas subject to subpart 2, subpart 3, or subpart 4 of part D, title 1 of 

the clean air act, according to the following: 

(1) In any serious ozone nonattainment area, 50 tons per year of volatile organic 

compounds. 

(2) In an area within an ozone transport region except for any severe or extreme ozone 

nonattainment area, 50 tons per year of volatile organic compounds. 

(3) In any severe ozone nonattainment area, 25 tons per year of volatile organic 

compounds. 

(4) In any extreme ozone nonattainment area, 10 tons per year of volatile 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 of carbon monoxide. 

(6) In any serious nonattainment area for PM-10, 70 tons per year ofPM-10. 

(B) For the purposes of applying the requirements of R 336.2902(8) to stationary sources 

of nitrogen 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 of 
7 

nitrogen oxide emissions, except that the following emission thresholds shall apply in areas 

subject to subpart 2 of part D, title 1 of the clean air act: 

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

or more of nitrogen 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 of nitrogen oxides. 

(3) In any area designated under section 107(d) of the clean air act as attainment or 

unclassifiable for ozone that is located in an ozone transport region, 100 tons per year or 

more of nitrogen oxides. 

( 4) In any serious nonattainment area for ozone, 50 tons per year or more of nitrogen 

oxides. 

(5) In any severe nonattainment area for ozone, 25 tons per year or more of nitrogen 

oxides. 

( 6) In any extreme nonattainment area for ozone, 10 tons per year or more of nitrogen 

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, if the 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 of a stationary source shall not be included in determining for 

any of the purposes of this paragraph whether it is a major stationary source, unless the 

source belongs to 1 of the following categories of stationary sources: 

(A) Coal cleaning plants, with thermal dryers. 

(B) Kraft pulp mills. 

(C) Portland cement plants. 

(D) Primary zinc smelters. 

(E) Iron and steel mills. 

(F) Primary aluminum ore reduction plants. 

(G) Primary copper smelters. 

(H) Municipal incinerators capable of charging more than 250 tons of refuse 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 of more than 250 million British thermal units 

per hour heat input. 

(AA) Any other stationary source category which, as of August 7, 1980, is being regulated 

under section 111 or 112 of the 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 of the following: 

(i) With respect to any regulated new source review pollutant emitted by a major 

stationary source, the amount by which the sum of the following exceeds zero: 

(A) The increase in emissions from a particular physical change or change in the method 

of operation 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 of baseline actual 

emissions, except that subdivisions (b)(i)(C) and (b)(ii)(D) of this rule shall not apply. 

(ii) An increase or decrease in actual emissions is contemporaneous with the increase 

from the particular change only if it occurs before the date that the increase from the 

particular change occurs. The contemporaneous period must meet all of the 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 if all of the following 

occur: An increase or decrease in actual emissions is creditable only if the 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 of a creditable, contemporaneous 

increase in actual emissions is determined by the amount that the new level of actual 

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 of the contemporaneous increase. Baseline actual 

emissions shall be determined as provided in the definition of baseline actual emissions, 

except that paragraphs (b)(i)(C) and (b)(ii)(D) of this subdivision shall not apply. 

(v) A contemporaneous decrease in actual emissions is creditable only to the extent that 

all of the following occur: 
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(A) The old level of actual emission or the old level of allowable emissions, whichever is 

lower, exceeds the new level of actual emissions. The magnitude of a creditable 

contemporaneous decrease is determined by the lower of the following: 

(1) The amount by which the emission unit's baseline emissions prior to the decrease 

exceed the level of actual allowable emissions following the decrease. 

(2) The amount by which the emission unit's allowable emissions prior to the decrease 

exceed the level of actual allowable emissions following the decrease. 

(3) In determining the magnitude of a creditable contemporaneous decrease, actual 

allowable emissions and baseline actual emissions are determined from the date of the 

contemporaneous decrease. Baseline actual emissions shall be determined as provided in the 

definition of baseline actual emissions except that paragraphs (b)(i)(C) and (b)(ii)(D) of this 

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) It has 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 of actual emissions in R 336.1101 (b) shall not apply for determining 

creditable increases and decreases after a change, instead the definitions of the terms 

"projected actual emissions" and "baseline emissions" shall be used. 

(w) ''Nonattainment major new source review" or ''NSR" program means the 

requirements of this rule, R 336.1220, orR 336.1221. A permit issued under any of these 

rules is a major new source review permit. 

(x) [Reserved] 

(y) [Reserved] 

(z) "Potential to emit" means the maximum capacity of a stationary source to emit a 

pollutant under its physical and operational design. Any physical or operational limitation on 

the capacity of the source to emit a pollutant, including air pollution control equipment and 

restrictions on hours of operation or on the type or amount of material com busted, stored, or 

processed, shall be treated as part of its design only if the limitation or the effect it would 

have on emissions is federally legally enforceable. Secondary emissions do not count in 

determining the potential to emit of a stationary source. 

(aa) "Predictive emissions monitoring system" or "PEMS" means all of the 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 of significant deterioration" or "PSD" permit means any permit that is 

issued under R 336.2802 or the prevention of significant deterioration of air 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 of operation 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 of the 5 12-month periods 

following the date the unit resumes regular operation after the project, or in any 1 of the 10 

12-month periods following that date, if the project involves increasing the emissions unit's 

design capacity or its potential to emit of that regulated new source review pollutant and full 

utilization of the unit would result in a significant emissions increase or a significant net 

emissions increase at the major stationary source. 

(ii) In determining the projected actual emissions before beginning actual construction, 

the owner or operator of the 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 of business 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 of the 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 of this 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 of the following: 

(i) Nitrogen oxides of nitrogen or any volatile organic compounds. 

(ii) Any pollutant for which a national ambient air quality standard has been promulgated. 

Ozone, sulfur dioxide, oxides of nitrogen, PM-10, lead, and carbon monoxide. 

(iii) Any pollutant that is a constituent or precursor of a general pollutant listed under 

paragraphs (i) or (ii) of this subdivision, provided that a constituent or precursor pollutant 

may only be regulated under new source review as part of regulation of the general pollutant. 

(ff) "Secondary emissions" means emissions that would occur as a result of the 

construction or operation of a major stationary source or major modification, but do not come 

from the major stationary source or major modification itself. For the purpose of this 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 of the construction or operation of the 

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 of a 

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 of a 

source to emit any of the following pollutants at a rate of emissions that would equal or 

exceed any of the following pollutant emission rates: 

(A) Carbon monoxide: 100 tons per year. 

(B) Nitrogen oxides of nitrogen: 40 tons per year. 
11 

(C) Sulfur dioxide: 40 tons per year. 

(D) Ozone: 40 tons per year of volatile organic compounds or of nitrogen oxides. 

(E) Lead: 0.6 tons per year. 

(F) PM-1 0: 15 tons per year of PM-1 0. 

(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 of volatile organic compounds that would result from any 

physical change in, or change in the method of operation of, a major stationary source 

located in a serious or severe ozone nonattainment area that is subject to subpart 2, part D, 

title 1 of the clean air act, if such emissions increase of volatile organic compounds exceeds 

25 tons per year. 

(iii) For the purposes of applying the requirements of R 336.2902(8) to modifications at 

major stationary sources of nitrogen 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 of carbon monoxide that would result 

from any physical change in, or change in the method of operation of, a major stationary 

source in a serious nonattainment area for carbon monoxide if such increase equals or 

exceeds 50 tons per year, 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 of volatile organic compounds from any 

emissions unit at a major stationary source of volatile organic compounds located in an 

extreme ozone nonattainment area that is subject to subpart 2, part D, title 1 of the 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 of 5 years or less, and that 

complies with the state implementation plan and other requirements necessary to attain and 

maintain the national ambient air quality standards during the project and after it is 

terminated. 
0 

0 
STATE OF MICHIGAN 

DEPARTMENT OF ENVIRONMENTAL QUALITY 

LANSING 

DE€! 

RICK SNYDER 

GOVERNOR 

CERTIFICATE OF ADOPTION 

DAN WYANT 

DIRECTOR 

I, Dan Wyant, Director of the Department of Environmental Quality, do formally adopt 

the attached administrative rules by amending R 336.2901 (Part 19) of the 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) 662-9278 
RICK 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 of Adoption 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 of the Michigan rules for the PSD and non attainment 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. 

If you have questions or comments regarding the rule changes, please contact Mr. Dave 

Fiedler, Regulatory Affairs Officer, at 517-335-6927, or you may contact me. 

rei 0 ,tf 

a Wyant [j Director I 

517-373-7917 

Enclosures 

CONSTITUTION HALL • 525 VIlEST ALLEGAN STREET • P.O. BOX 30473 • LANSING. MICHIGAN 48909-7973 

www.michlgan.gov/deq • (BOO) 662-9278 
Ms. 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 EQ 

RICK 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 Air Act 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 proposed rule of the Department ofEnvironmental Quality, dated March 

14, 2011, amending R 336.2901 of the Department's rules entitled "Air Pollution 

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) 373-0171 
RICK 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 of Environmental Quality proposes to modify a portion of the Michigan 

Administrative Code entitled, "Air Pollution Control- Part 19. New Source Review for 

Major Sources Impacting Nonattainment Areas," by: 

• Amending R 336.2901 

The Legislative Service Bureau has approved the proposed rules as to form, 

classification, and arrangement. 

I approve the rules as to legality pursuant to the Administrative Procedures Act, MCL 

24.201 et seg. and Executive Order No. 2005-1. In certifying the rules as to legality, I have 

determined that they are within the scope of the authority of the agency, do not violate 

constitutional rights, and are in conformity with the requirements of the Administrative 

Procedures Act 

Dated: 5-1.~ -..l_o) ( 

2010-022 EQ 

Office of Regulatory 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 OF FILING 

ADMINISTRATIVE RULES 

Clerk of the House ofRepresentatives 

Joint Committee on Administrative Rules 

State Office of Administrative Hearings and Rules (Administrative Rule #2010-022-EQ) 

Legislative Service Bureau (Secretary of State Filing # 11-06-08) 

Department of Environmental Quality 

In accordance with the provisions of Section 46( 1) of Act 3 06, 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 of Administrative Hearings-and Rules filed 

Administrative Rule #2010-022-EQ (Secretary of State Filing #11-06-08) on this date at 4:16 

P.M. for the Department of Environmental Quality, entitled "Part 19, New Source Review For 

Major Sources Impacting Nonattainment Areas". 

These rules become effective immediately upon filing with the Secretary of State. 

Sincerely, 

Ruth Johnson 

Secretary of State 

grqb\J() ~ . \1CJU~kl\ JiL_ 

Robin L. Houston, Departmental Super\risor 

Office of the 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/sos 

Agency 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 SOAHR will 

review the document, the newspaper advertisements, and the corresponding rules prior to completing 

the legal certification of the rules. Please be sure to send to the SOAHR proofs of publication for the 

three newspaper advertisements required by MCL 24.242(1 ). You may mail them or send them as a 

scanned attachment. 

Department of Environmental Quality (DEQ) (formerly known as Natural Resources and 

Environment DNRE 

and 2010-005 MH 

Title of rules: 

Air Pollution Control, Part 18, Prevention of Significant Deterioration of Air 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 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 the PSD and NSR regulations 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 of our state rules for 

PSD. Such approval would enable the State of Michigan to fully carry out the program, 

eliminating a federal appeals process that applies under the current delegation of federal 

authority. 

A recent court ruling has determined that the administrative appeal mechanisms found in 
R 336.2830 and R 336.2910 conflict with statutory provisions, which provide appeals 

exclusively through a court action. The only way to 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 of air 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 of the 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 of Air 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 of our 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 nonattainment NSR by adding 

requirements for PM 2.5, specifically, a significance threshold. The EPA has established a 

significance threshold to limit the applicability of nonattainment NSR 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 new threshold 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 

nonattainment NSR programs. These rules are proposed to be rescinded because of a recent 

court ruling that administrative appeals conflict with statutory provisions that instead provide a 

circuit court venue for a eals. 

4. Name of newspapers and date of publication in newspapers (minimum 3 

newspapers of general circulation, representing different parts of the state, one of 

which must be located in the Upper Peninsula): 

The Notice of Public 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 of public 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 of rules and ubJic hearin 

July 15, 2010 

7. Agency representative(s) attending hearing (include agency name and title of 

representative[s]): 

The following DEQ-AQD staff attended: 

G. Vinson Hellwig, Division Chief 

Jerry Avery, Supervisor ofField Operations 

Brenda Blemaster, Administrative Rules Coordinator 

Jeff Rathbun, Environmental Engineer, Permit Section 

Robert Irvine, Supervisor of the 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 of the Proposed Amendments is to add language regarding PM2.5 to make the Michigan SIP 

consistent with federal requirements. (Staff Report at 1 ). The Agency proposes to achieve this 

goal by inserting a PMz.s significance threshold of 10 tons per year (tpy) for both the Prevention 

of Significant Deterioration ("PSD") and the Non-Attainment New Source Review (''NANSR") 

regulations. (See Proposed R 336.2801(qq)(i)(D) and 336.2901(gg)(i)(G)). While the DNRE 

has properly proposed to 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 of the NSR PM2.s implementation provisions that 

are not being incorporated into this rulemaking. The focus of the 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 of revisions that the U.S. Environmental Protection Agency (EPA) 

has recently fmalized, addressing all aspects of the NSR PM2.5 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 of permit applications and actions on those 

applications, requires denial of a permit application if certain findings are made by FLMs and 

concurred with by DNRE, and allows the issuance of a 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. In particular, 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 of an FLM adverse impact finding. 

Without provisions that specifically address the requirements of 40 CFR §§ 51.166, 51.307, and 

52.21, the SIP does not ensure that FLMs are aware of proposed sources and have the 

information needed to evaluate the impacts of those sources, that an FLM's adverse impact 

finding will actually be considered, or that 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 of the 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 of Michigan's PSD program and change from being a delegated state to a SIP-approved 

state, we are attempting to address the requirements of 40 CFR 51.166 in the proposed rule 

modifications. Rule 1816 has been written with the intent to incorporate all of the requirements 

under 40 CFR 51.166(p ), which identifies the necessary elements of state PSD SIPs for sources 

impacting Class I areas. In contrast to 51.166,40 CFR 52.21 describes the PSD r~uirements in 
states 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 of these 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 of Subpart P of Part 51, which describes the required elements of state 

SIPs to address regional haze. 40 CFR 51.307 describes the new source review requirements for 

regional haze. The provisions of 51.307 were not included in the PSD SIP requirements of 40 

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 of Michigan's regional haze SIP as 

opposed to a provision of the 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 of the permit application 

review. In response to the comment, the DNRE has added language in Rule 1816(2) and moved 

some of rule 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 of the 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 of each permit application relating to a major stationary source or major modification and provide 

notice to the United States environmental protection agency of every action related to the consideration 

of the permit. 

(2) If an 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 of class I lands a demonstration of the impact the emissions from the proposed 

source or modification would have on the air quality related values of class I lands, including 

visibili . The de artment shall 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, if necessary, to complete the review ofthe demonstration. 

(3) the de~&rt!Beftt shall aet ~~Fen the ~ermit ~~lieatiea If the federal land manager's review of 

the applicant's demonstration results in a finding that the emissions from the proposed major source 

or major modification would have an adverse impact on the air quality related values of class I lands, 

including visibility, notwithstanding that the change in air quality resulting from emissions from a 

major source or major modification would not cause or contribute to concentrations that would exceed 

the maximum allowable increases for a class I area, and if the department concurs with such 

finding, then the department shaD not approve the permit application. 

(;.4) If the department determines that the emissions from a proposed major source or major 

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 of Michigan's state implementation plan are otherwise met and 1 of the following 

occurs: 

(a) The applicant submits 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 of class I lands, including visibility, notwithstanding 

that the change in air quality resulting from emissions from a major source or major 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 of sulfur dioxide, particulate matter, and 

oxides of nitrogen 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-I 0, 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) If the 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 of class I lands, 
dioxide variance for the federal class I area on which variance the public has received notice and 

opportunity for public hearing. 

(c) If the 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 of 24 

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 of a 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 of the sulfur 

dioxide variance by the governor. The applicant shall transfer the recommendations of the 

governor and the federal land manager to 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 of sulfur dioxide from the major source or major modification would not, 

during any day on which the otherwise applicable maximum allowable increases are exceeded, cause 

or contribute to concentrations which would exceed the following maximum allowable increases over 

the baseline concentration and to assure that emissions would not cause or contribute to concentrations 

which exceed the otherwise applicable maximum allowable increases for periods of exposure of 24 

hours or less for more than 18 days, not necessarily consecutive, during any annual period. 

Table 184 

Maximum allowable sulfur dioxide increments 

Period of exposure 

24-hour maximum 

Name of person completing this report: 

I Robert 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 of the 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 of Air 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 of the Air Quality Division, who is representing the 

Director of the 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 of the 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 of today's time listening to those comments. At 

the end of the 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, of the 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 of the administrative rules for Air Pollution Control, State Office of Administrative 

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 of today'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 of Administrative 

Hearings and Rules' procedures. 

The purpose of today'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 of you 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 

of the Notice of Public Hearing, Regulatory Impact Statements, proposed rules, and 

summary of the 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 if you 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 of the cards have been completed, he will ask if anyone 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 of the 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 of the 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 of those 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. 

If you have any questions regarding the proposed rule revisions to Parts 18 and 19 of 

the Air Pollution Control Rules, Air Quality Division staff will be available immediately 

following this hearing to answer them. 

The hearing is now closed. Thank you again. 

4 

County 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 

COUNTY OF lAPEER 

MV COMMISSION EXPIRES Mar 30, 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 OF PUBLICATION 

STATE OF MICHIGAN 

For the County of MARQUETTE 

In the matter of: Notice of Public Hearing 

Department of Natural Resources and Environment 

Air Quality Division 

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 Court Rule; 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 

DEPARTMENT OF NA· 

lUAAl RESOURC,fS ·-AND-eMRONMENT 

·AlA QU.A,UTY DIVISION 

~~~- j Resources and Enmmment (ONREJ, Air I 

Quaily Divlaion, wil ; conduct "II pttJic hilar- ; '"II 00 proposed ad- 1 

rninls1ratiYe rules ; 

~~~ I lion Conlrol, of the. Na1 1lon Act, 1994 PA 451' I ·as amended (Act · · 

<461 ); R 336-2801, R i 

336.2816; R . I 

336..283l,'fl 

3:38.2901 , and A . 336.2910. A 336.2801 I 

and A 336.2901 11111 ' 

being amendad tl · . I add 1he ,_ lederaly 

prornulgal8d .sigri!tcanc:e 'fraslioJij lor . i 

beino PM 2.5. amerided A 336.2816 to . . Is I ·.· maiCh lhe·lederal ,. 

· qUlrements tor Class I 

eras. A recent cOurt · . ·ruling has dllletmined 1 "that 1he lldminislrallve 

appeal process out-. . .I 

lned In A 336.2830 · · 1 "ih"d A 3:l6.2910 con- j llicla with Slalulory pre-· . 

visions. :n-ruleS 

wtRbe.resOOdedtJ 

adi:lrass 1hls conlllct: 

The pubDi: h8.ina ·will 

beheldooWeanes-

·day, Ailgusn 1, 2010, 

at 10:00 a.m. In 1he 

Bnlk8CooflllllllC!i 

Room, ConslltutJon Hal~ Afun Sou1h, 

525 West Alegan • 

-;::~· / 1\Aes(SOAHR 

2009-055 NE, 

2009-056 SR. 201 G-022 NE. ai!d · , 20:1 o.oos SR) can be J 

downloaded Iran 1he 

lntemet at hllp://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 of 1he 

nMs may also be ob-

~~ 

DNAE • Nr Quarrty · . 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 ptesant 1heir 

w.ws. It Is raqueslad 

thai~ slaloments be 

suanitiBd In writing lor 

1he hearing record. 1 

Anyone unable 1o at- tend may submH com- ments in Miting to 1he 

address above. Writ· . lan canmenls must be 

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

Ptnons naeding accom- . modallons tor effective 

participation in 1he · 

rneeUng_should con-

· 517,335-6984 =:~ one week it advance lo 11t- I . ;quest rnobillly, W!ual, . 

heari\g. or either as: 

sJstance, 

This nolic8 ol ptmlic . hearing 1:; ~ In ac- .cadance wi1h Sec- ·, lions 41 and 42 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 by au-· 1horily conferred on the Director of fie 

ONRE by Sections 

5503 and 5512 of "Act 

451, MCL324.5503 

and 324.5512, and 

ExeculiYe Reorganization Order Nos. 1995-18 and 

2009-31, MCL 324.99903 and MCL 

'324.99919. Aulhority 

for promulgation ol f\ 

336.2910 and A 

336.2830 Is confemid 

~Oifice 

Heati1gs ll!1d RJies 

by ERO 2005-1, MCL . 445.2021 .. Thes& ruJas 

wtJJ become elfeclive 

irt111111Cia1ely after ti1119 

wi1h the Secretary of 

State. 

G. VInson He1Jwl9 

Chla!, -Air"Ouanty OMsion 

11m& 

7-6:-2010 

~ECEIVED 

JUL 0 9 2010 

AIR QUALITY DIV. 
AFFIDAVIT OF PUBLICATION 

COMMUNTIY NEWSPAPERS, 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 by the publisher of Lansing State Journal., to swear that a 

certain notice, a copy of which is annexed here to, was published in the following publication: 

1. Published in the English language for the dissemination of general and/or legal news, and 

2. Has a bonfide list of paying customers or has been published at least once a week in the 

same community without 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 community where the publication is to occur. 

LANSING STATE JOURNAL ~ 7/6/10 

Anna Trudell 

rt/~I~ 

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: SEPTEMBER 4, 2014 

ACTING IN THE COUNTY OF INGHAM 

LE- 837394 
~kl!J state Journal•· .lllesc:lay, July&.. 2010 ··:lsc t' ".; 

. . . ~ 

:\ ·'I ;··;,·. ·:: "l'·- ~·~: .. :.\! ... ;_; .' • :a~:-;:... l , " · · ·-.?: · ·. 

The Michigan 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; of the' .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,IIJ~ ~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:·,Rf-'~: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 of ttie'"roles·;may.a,lso.bi!·:Obtalned b_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- ••: celved by 5:00 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"' . requa$t'mo\jlllt;V.'vlsi.Jal,.he~lng, .or o1A, ·, · .,·~· ~r 8.sslstanp~.:. ~·,:. .1 .. -i:: \~"'· >_ • !· :.. ; ·. 

This. notrce: 4?,f·pu'bllc hearll,lg J!> glven In ,

7 .:•; 1 a.ccordar~c& .wlth Sectlons 4l. and'42 of 

·,,,,1 ,Micl't!gan•s Mmlnl~~\1.~~ pr~~~~u~e~ • . A~. 19~?lJ. ·~~ ,,;}()6[~a.5. arrepded1> oeJng, \. . ,

1 $ectf<?!l~ 24.~41 a,n~.24.242. Qf th¢'Mlcl;ilr. , ~ 

•· · 'gan COm~>;IJ~i:!~Law~·(r~f;.~ •. f\d/1')(fllstr.a7. 1 

tlon of the; r\ll~:;lJs !l,Y.:a:~)1orlty:_corife'r· • red qn the· Dlrl!ctor of:tlielbNRE'by.·-s~-: - >. 

t!ons. S50,3.,and . .SS12-1o.f,.Act;.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 State Office 9f Admlnlstra:-

~~i.t.!:s~~ ~~e~1~1~: ~~f~!~1~ . _;·. 

0., effei:tlve.'lmm.edlatel0iaftet•flllng with . th.e Seer~~ of"Statec . r .:'> . 

:·'d :; .::i)..; !'i ~,}. ~!fi ~; , - l ' •. : . . • . I 

· ' · G. vrnson Hellwig;' chlef.''Air Q\!<llrty· bl-

:- . ~.~..~· ~~r ·'"'" ;._. . · .. ~:1· .:-... Jt· __ , . • • · 

:··" tl,".-!:'·''t:-..".1 ' l:~· .:.~.,C ·l' ,~11: •" ;,."''1"' "t 1:£~, .. ..,.. . ·"l:·'f'..t<<!(1: Jo<: .. !,.r .~· ' ~ ,., u 

.. , .. , .• ,.. ..... ,... . ..... i•j ~~ : ' f . "'.l l ) 

- ·""""' ~ ........ :-~ ~."~.. .. !l ~ - ~ :..:.· :::.··· - .. _,_·,:::.· ... • --~--...,...--. 

.' 
Michigan 

Register 

Published pursuant to§ 24.208 of 

The Michigan 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 of Administrative Hearings and Rules 
Department of Natural Resources and Environment 

Ait.Quality Division (SOAHR # 2009-055) 

Part 18 Prevention of Significant Deterioration of Air Quality ........................................ 133-145 

Hearing Notice .................................................................................................................. 146-146 

Department of Energy, Labor and Economic Growth 

State Office of Administrative Hearings and Rules (SOAHR # 2009-056) 

Part I9 New Source Review for Major Sources Impacting Nonattainment Areas ........... l47-148 

Hearing Notice ................................................................................................................. : 146-146 

Department of Energy, Labor and Economic Growth 

State Office of Administrative Hearings and Rules (SOAHR # 201 0-005) 

Part 18 Prevention of Significant Deterioration of Air Quality ........................................ I 49-I 50 

Hearing Notice .................................................................................................................. 146-146 

Department of Natural Resources and Environment 

Air Quality Division (SOAHR # 2010-022) 

Part I 9 New Source Review for Major Sources Impacting Nonattainment Areas ........... 151-I 60 

Hearing Notice ....... · ........................................................................................................... 146-146 

Department of Agriculture 

Pesticide and Plant Pest Management Division (SOAHR # 20I 0-024) 

Regulation No. 628 Seed Potato Ce1tification .................................................................. 161-162 

Hearing Notice .................................................................................................................. 163-163 

Department of Energy, Labor and Economic Growth 

MIOSHA Occupational Health (SOAHR # 201 0-028) 

Part 604 Chromium (IV) In Construction 44(2) ............................................................... 164-165 

Department of Energy, Labor and Economic Growth 

MIOSHA General Industry (SOAHR # 2010-029) 

Part 315 Chromium (IV) In General Industry 44(2) ......................................................... 166-167 

Department of Energy, 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 of Community Health 

Certificate of Need Review Standards for 

Bone Marrow Transplantation (BMT) Services ............................................................... 181-182 

Department of Community Health 

Certificate ofNeed Review Standards for 

Heart/Lung and Liver Transplantation Services ............................................................... 183-183 
2010l\.1R 12-July 15,2010 

PROPOSED ADMINISTRATIVE RULES 

SOAHR 2010-022 

DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTAL QUALITY 

AIR QUALITY DIVISION 

AIR POLLUTION CONTROL 

Filed with the Secretary of State on 

This rule becomes effective immediately upon filing with-the Secretary of State 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 of State. 

(By authority conferred on the director of the department of natural 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 of the Michigan Administrative Code is amended as follows: 

PART 19. NEW SOURCE REVIEW FOR MAJOR SOURCES IMPACTING NONATTAINMENT 

AREAS 

R 336.2901 Definitions. 

Rule 1901. The following definitions apply to terms used in this part. If a 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 of emissions of a 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 of emissions, in tons per year, of a 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-year period immediately preceding when the 

owner or operator begins actual construction of the project. The department shall allow the use of a 

different time period upon a determination that it is more representative of normal 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. 

151 
2010 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 of State on 

This rule becomes effective immediately upon filing with the Secretary of State 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 of State. 

(By authority conferred on the director of the department of natural 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. If a 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 of emissions of a 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 of emissions, in tons per year, of a 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 operator begins actual construction of the project. The department shall allow the use of a 

different time period upon a detennination that it is more representative of nonnal source operation. All 

of the 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. 

133 
2010 MR. 12 -July 15,2010 

NOTICE OF PUBLIC HEARING 

NOTICE OF PUBLIC HEARING 

DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT 

AIR QUALITY DMSION 

The Michigan Department of Natural 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 that the 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 ofthe proposed 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 of Administrative Hearings and Rules 

at http://www.michi2"an.gov/soahr. Copies of the 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 of public hearing is given in accordance with Sections 41 and 42 of Michigan's 

Administrative Procedures Act, 1969 PA 306, as amended, being Sections 24.241 and 24.242 of the 

Michigan Compiled Laws (MCL). Administration of the rules is by authority conferred on the Director 

of the DNRE by Sections 5503 and 5512 of Act 451, 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 of Administrative 

Hearing and Rules by ERO 2005-1, MCL 445.2021. These rules will become effective immediately 

after filing with the Secretary of State. 

146