State of Wisconsin 

DEPARTMENT OF NATURAL RESOURCES 

101 S. Webster Street 

Box 7921 

Madison WI 53707-7921 

Scott Walker, Governor 

Cathy Stepp, Secretary 

Telephone 608-266-2621 

Toll Free 1-888-936-7463 

TTY Access via relay- 711 DEPT. OF NATURAL RESOURCES 

August 8, 2016 

Mr. Robett Kaplan 

Acting Regional Administrator 

USEPA-Region V (R-19J) 

77 West Jackson Boulevard 

Chicago IL 60604-3507 

Subject: Wisconsin State Implementation Plan (SIP) Revision- PM2.5 Increment and Various PSD 

Program Changes 

Dear Mr. Kaplan: 

The information contained in this SIP Revision request serves to address several issues for which Wisconsin's 

1997 and 2006 PM25 Infrastructure SIPs, 1997 ozone Infrastructure SIP, and Wisconsin's Prevention of 

Significant Deterioration (PSD) program were partially disapproved. This request replaces the request submitted 

on February 8, 2016 requesting parallel processing because the rule associated with this SIP revision request is 

now final. 

Changes in this rule package address the following disapprovals and findings of failure: 

I. June 15, 2012 Federal Register (77 FR 35870) Final disapproved ofnarrow portions of Wisconsin's SIP 

related to identification ofNOx as a precursor to ozone under the PSD permit program. This notice also 

covered narrow disapproval of 1997 8-hour ozone NAAQS and 1997 24-hour PM25 NAAQS infrastructure 

SIPs for identification ofNOx as a precursor to ozone (EPA Docket ID EPA-R05-0AR-2007-1179) 

2. August II, 2014 Federal Register (79 FR 46704) Final Finding of Failure to Submit a PSD State 

Implementation Plan Revision for PM25 (EPA Docket ID EPA-R05-0AR-2014-0517) 

3. December 10 2015 Federal Register (80 FR 76637) Final Disapproval of Infrastructure SIP With Respect to 

Oxides of Nitrogen as a Precursor to Ozone Provisions for the 2006 PM25 NAAQS (EPA Docket ID EPAR05-0AR-2009-0805) 

This submittal also serves to supplement infrastructure SIPs previously submitted for which the PSD portions 

have not yet been acted on, including the 2008 lead, 2008 ozone, 2010 Nitrogen Dioxide, 2010 Sulfur Dioxide, 

and 2012 PM25 NAAQS. This supplement is necessary to show that Wisconsin's PSD permitting program 

incorporates all federal requirements including the requirement to properly regulate NOx as a precursor to ozone. 

The WDNR in DNR Board Order AM -15-14 has completed rulemaking to address these deficiencies including 

identifying NOx as a precursor to ozone, adding PM25 increment values, modifying select definitions inch. NR 

405, and changing the PM25 significant monitoring concentration. The sections of AM-15-14 that address the 

deficiencies noted above include: 

dnr.wi.gov 

wisconsin.gov 

. · • . :Soard Onler Se~tion. . ···.· · .. · .•... ·· .. •·· .. ·. ·.. .· ... :Oefici<incy 

Section 3, amending NR 404.05(2) (intra), PM25 increment 

Section 4, creating NR 404.05(2)(am) PM25 increment 

Section 5, amending NR 404.05(3)(intro ), PM2.5 increment 

Section 6, creating NR 404.05(3)(am) PM2.5 increment 

Naturally WISCONSIN 

.. .. 

PR/111£0 

ONRE"CYCI.£0 

PAPER 
Page 2 

' 

Board Order Section ' Deficiency < ,' 

',, 

Section 7, amending NR 404.05( 4) (intro ), PM25 increment 

Section 8, creating NR 404.05(4)(am), PM25 increment 

Section 9, amending NR 405.02(3),(21)(a), Changes to "Baseline area", "major 

modification", and "Major source baseline and (21m)( a) date" definitions 

Section 10, creating NR 405.02(21m)(c) Changes to "Major source baseline date" 

defmition 

Section 11, amending NR 405.02(22)(b) Changes to address NOx as a precursor to 

ozone and changes to "Minor source baseline and (22m)( a)!. and (b)l., date" 

Section 12, creating NR 405.02(22m)(a)3 Changes to "Minor source baseline date" 

Section 13, creating NR 405.02(27)(a)6., Changes to address NOx as a precursor to 

ozone 

Section 14, amending NR 405.07(8)(a)3m., PM2.s Significant Monitoring Concentration 

Section 15, creating NR 405.07(8)(a)3m. PM2.s Significant Monitoring Concentration (Note) 

Section 16, amending NR Changes to address N Ox as a precursor to 

405 .07(8)( a)5.(Note) ozone 

Wisconsin requests a SIP revision for only these sections of Board Order AM-15-14. AM-15-14 also contains 

amendments to the definition of volatile organic compounds in NR 400, changes to the rule language in NR 420, 

and repeal of several outdated code sections related to the vapor recovery program. Wisconsin is not requesting a 

SIP revision for these additional proposed rule changes at this time. 

In February of2016, we had requested parallel processing of this SIP revision so that EPA could be ready for 

rulemaking when the changes to chs. NR 404 and NR 405, Wis. Adm. Code were fmalized, and to assist 

Wisconsin in meeting the 2-year timeframe to rectify the noted deficiencies. Now that this rule is final we are 

replacing the previous submittal with this request. Attachments submitted with the February 2016letter included 

a promulgation schedule for the fmal rules. We are now supplying EPA with additional information to fmalize 

this request. In accordance with EPA's final rule on CAA Section 110 submission requirements effective March 

16,2015 [ 80 FR 7336], this SIP is being submitted using EPA's electronic SIP (eSIP) submission system. 

Please contact Ralph Patterson at 608-267-7546 if you have any questions. 

Sincerely, 

jkLL '{" /~o-vz{ Gail Good, 

Air Management Program Director 

Cc: Doug Aburano, USEPA-Region V (AR-18J), 77 West Jackson Boulevard, Chicago, IL 60604-3507 

Ralph Patterson, WDNR 

Kristin Hmt, WDNR 

Attachments 
Page 3 

I. The January 2016 Natural Resources Rule Package (also known as the Green Sheet Package) 

containing a background memo, fiscal estimate and economic impact analysis, and rule AM-15-14 

2. Final Adopted Rule AM-15-14 

3. SIP Checklist 

4. AM-15-14 Public Hearing notice- DNR did not receive any comments on AM-15-14 at the November 

5, 2015 public hearing 

5. Newspaper tare sheet showing Class I public hearing notice 

6. SIP celiification 

THIS FORM WAS GENERATED BY THE eSIPS SYSTEM 

1

eSIPS (electronic State Implementation Plan Submission) Summary Report

Note: This report is a summary of your submission to the electronic SIP (eSIPS) system and is not to be used as the official 

record for your SIP submission.

Date of Report 08/09/2016 6:50:45

Form Status Complete

eSIP SUBMISSION INFORMATION

Submission Title WIDNR_PM25PSD_08092016

Pollutants Affected Pb (2008), Ozone (8 hr 2008), SO2 (2010), PM2.5 (2012 Annual)

Submittal Category/Categories ISIP - Infrastructure SIP - The plan which addresses any of the 

infrastructure elements and any related regulations submitted to 

satisfy the requirements of that specific NAAQS, PSD - Permitting 

Regulations (PSD/NNSR)

Other Submittal Category

Submittal Category Description Includes information to address disapprovals and findings of 

failure in 77 FR 35870, 79 FR 46704, 80 FR 76637.

Geographic Area Affected Statewide

Are you requesting parallel processing for this SIP 

Revision?

No

eSIP PARALLEL PROCESSING

Not applicable

eSIP ADMINISTRATIVE EVIDENCE COMPLETENESS 

CHECKLIST 

 1. Submittal letter from Governor or designee requesting approval of the plan or revision.

 2. Evidence of adoption.

Date adopted 1/6/2015

Date effective 8/1/2016

 3. Evidence of legal authority to adopt and implement revision.

 3(a). Copy of final adopted plan and/or rule.

 3(b). Indication of changes to existing plan and/or rule if applicable.

 4. Evidence that state followed procedural requirements for adoption/issuance of plan.

 4(a). Evidence of public notice.

Date Public Notice Provided 9/28/2015
THIS FORM WAS GENERATED BY THE eSIPS SYSTEM 

2

5. Was a public hearing requested and/or held? Yes

5(a). Date of first public hearing. 11/5/2015

Date of second public hearing

Date of third public hearing

 5(b). Evidence that public hearing was held. 

6. Were public comments received? Yes

 6(a). Compilation of public comments and state responses or declaration that no comments were received.

eSIP ADMINISTRATIVE EVIDENCE – SUPPORTING 

DOCUMENTATION

Attachment File Description

GreenSheet.pdf DNR Board Rule Information

AM1514Augustsubmittalletter.pdf August 2016 Transmittal Information

PublicHearingNotice.pdf Public Hearing Notice

SIPCert.pdf SIP Certification

Additional Information regarding this submittal:

Please enter any additional information regarding this 

submittal.

Wisconsin Register Publication go to 

https://docs.legis.wisconsin.gov/code/register/2016/727B/register 

and click on CR-077

eSIP TECHNICAL SUPPORT DOCUMENT INFORMATION – AS 

APPLICABLE

Are there Technical Support Documents included in this 

submittal?

No

The Technical Support Document should contain the following (if applicable):

 List of Pollutants affected by plan

 Location of sources affected by plan

 Quantification of allowable emissions

 Demonstrate change meets NAAQS, PSD, RFP and/or visibility requirements

 Modeling information supporting the revision

 Evidence reductions are based on continuous emissions reduction technology

 Emission limits, work practices, record keeping, etc.

 Compliance with enforcement strategies

 Special economic and technological justifications per applicable EPA policies

 Other
THIS FORM WAS GENERATED BY THE eSIPS SYSTEM 

3

Please describe all other Technical Support 

Documents

eSIP TECHNICAL SUPPORT – ADDITIONAL 

DOCUMENTATION

Attachment File Description

This SIP submission includes additional documentation 

(e.g., large modeling files) that is not submitted through 

this electronic system?

No

This information will be provided to EPA via:
Form 1100-001P (Rev. 09/15) Wisconsin Department of Natural Resources 

Natural Resources Board Agenda Item 

Item No. 3 • A. 1 • 

SUBJECT: 

Request that the Board adopt AM-15-14, proposed rules affecting chapters NR 172, 400, 404, 405, 420, 425, 439, 484, 

and 494 related to consistency with Federal rules and repeal of obsolete rules. 

FOR: January, 2016 Board meeting 

PRESENTER'S NAME AND TITLE: Kristin Hart, Chief, Air Permit and Stationary Source Modeling Section 

SUMMARY: 

Changes to rules implementing major source air pollution control construction permitting are proposed and are necessary 

to assure consistency with corresponding U.S. EPA regulations. In addition, repeal is proposed for obsolete rules 

requiring the control of vapors resulting from vehicle refueling activity at gasoline stations (Stage 2 Vapor Recovery). 

The proposed changes to rules addressing consistency with U.S. EPA regulations include: 

- Explicitly naming oxides of nitrogen (NOx) as a precursor to ozone. 

- Adopting U.S. EPA increment concentrations for particulate matter with an aerodynamic diameter of 2.5 

micrometers or less (PM2.s). 

- Including PM2.5 in certain definitions. 

- Changing the significant monitoring concentration for PM2.5 to 0. 

- Updating the definition of volatile organic compounds (VOC) to exclude certain chemicals determined by EPA to 

have negligible photochemical reactivity in forming ground level ozone. 

The proposed repeal of obsolete rules includes: 

- Repeal of ch. NR 172 covering grants previously provided by the Department to assistance gasoline station owners 

with the installation of Stage 2 Vapor Recovery equipment. 

- Repeal of s. NR 420.045 and related rules implementing the Stage 2 Vapor Recovery requirements. 

The proposed rule changes are not expected to be controversial. Some concern was raised in the response to the 

solicitation for information on the economic impacts of the rule, that adopting the PM2.6 increment could be costly to some 

sources. While adoption of the PM2•

5 increment will require some additional analysis the Department does not anticipate 

that this additional analysis will cause noticeable delays in permit Issuance times and therefore, will not result in any 

siqnificant impact to the affected businesses. 

The board last acted on this rule on January 28, 2015, approving the scope statement and authorizing hearings. The rule 

is not expected to have a negative economic impact on small business. 

RECOMMENDATION: That the Board adopt AM-15-14. 

LIST OF ATTACHED MATERIALS (check all that are applicable): 

181 Background memo 

181 Fiscal estimate and economic Impact analysis (EIA) form 

0 Response summary 

Approved by 

Gail Good, Air Program Director 

Patrick Stevens, Environmental 

Management Division Administrator 

Cathy Stepp, Secretary 

cc: Board Liaison - AD/8 

0 Attachments to background memo 

D Environmental assessment or impact statement 

181 Board order/rule 

Date 

Department rule officer- LS/8 
State of Wisconsin CORRESPONDENCE/MEMORANDUM-------------

DATE: December 18,2015 

TO: All Members of the Natural Resources Board 

FROM: Cathy Stepp, Secretary 

SUBJECT: Background memo on request for Board adoption of Order AM-15-14, proposed rules 

affecting chapters NR 172, 400, 404, 405, 420, 425, 439, 484, and 494, relating to 

consistency with Federal rules and repeal of obsolete rules. 

1. Why is the rule being proposed? 

This rule package contains changes that are necessary to resolve several U.S. EPA deficiency notices on 

our state implementation plan. (see Finding of Failure to Submit a PSD State Implementation Plan 

Revision for PM25, published at 79 Fed. Reg. 46703 (August 11, 2014); Disapproval oflnfrastructure SIP 

With Respect to Oxides ofNitrogen as a Precursor to Ozone Provisions for the 2006 PM25 NAAQS, 

published at 80 Fed. Reg. 76637 (December 10, 2015)). The Department is also required to promulgate 

the PM25 increment section of this rule by no later than March 31, 2017 under the May 21, 2015 

Stipulation and Order for Judgment for Midwest Environmental Defense Center, Inc. v Wisconsin 

Department of Natural Resources, Dane County Case No. 14-CV-3366. 

2. Summary of the rule. 

The objective of this rule is twofold; to address changes needed to maintain consistency with U.S. 

Environmental Protection Agency (EPA) regulations and to repeal obsolete rule provisions. 

The portion of the rule addressing consistency with EPA rules includes the following: 

• explicitly names oxides of nitrogen (NOx) as a precursor to ozone, 

• adopts federal increment concentrations for particulate matter with an aerodynamic diameter of 

2.5 micrometers or less (PM2.5), 

• includes PM2.5 in certain definitions inch. NR 405, 

• changes the significant monitoring concentration for PM2.5 to 0 and 

• updates the definition of Volatile Organic Compounds (VOC's) to exclude certain chemicals with 

negligible photochemical reactivity. 

The portion of the rule that repeals obsolete rules includes: 

• repeal of ch. NR 172 covering grants for installation of state 2 vapor recovery, and 

• repeal of s. NR 420.045 and related rules concerning implementation of stage 2 vapor recovery. 

Stage 2 vapor recovery rules required gasoline vapor recovery equipment to be installed at gas stations in 

Southeastern Wisconsin. The EPA authorized states to remove these rules from state implementation 

plans because, since 1998 model year, cars have contained on-board vapor recovery systems. The stage 2 

vapor recovery equipment has been shown to interfere with the operation of on-board systems. The 

proposed rule also contains the repeal of the now obsolete NR 172 which authorized the Department to 

implement a grant program to assist gas station owners with the installation of stage 2 vapor recovery 

equipment. 

3. How does this proposal affect existing policy? 

Page 1 of 4 Printed on 

RI'!CvcleJ 

Paper 
This rule fulfills existing department policy to assure consistency of the major source air permit program 

with EPA regulations. Other portions of this rule do not affect air program policy. 

4. Hearing Synopsis and Comment Summary. 

A notice of public hearings on the proposed rule was published on October 5, 2015. A hearing was held 

on November 5, 2015. No one attended the public hearing. The public comment period closed on 

November 12, 2015. 

A comment was received from U.S. Environmental Protection Agency (EPA) Region V staff pointing out 

a typo in one of the chemicals being excluded from the list ofVOC's. No other comments from the public 

were received. 

The Legislative Council Rules Clearinghouse recommended changes related to clarity, grammar, 

punctuation and use of plain language. All recommended changes were accepted and appropriate changes 

made, except for a question raised concerning whether the phrase "24 hour average," should be retained 

in the significant monitoring concentration for PM2.5 ins. NR 405.07(8)(a)3m. Since the EPA 

regulation, in 40 CPR 51.166, does not include the phrase, the Department did not retain the phrase in 

order to maintain consistency and thereby avoid any potential confusion. 

5. Has Board dealt with these issues before? 

Yes, the board approved the scope statement and authorized hearings on January 28,2015. 

6. Who will be impacted by the proposed rule? How? 

The proposed rule could potentially impact several different types of business. The portion of the rule 

that is being proposed to assure consistency with EPA rules applies mostly to major sources of air 

pollution that are being constructed or undergoing modification. However, the state implements the 

major source construction permit program according to EPA rules immediately upon their promulgation 

in federal law and so, facilities undergoing major new source review should see no effect from this rule. 

Another portion of the rule includes adding chemicals to the list of those excluded from being considered 

a volatile organic compound (VOC). These chemicals are used predominantly by manufacturers of 

refrigerants and refrigeration equipment, hot water heaters, and waste heat recovery equipment, 

manufactures of aerosol propellants, blowing agents for insulating foams, and fire suppressants, and in the 

manufacture of pigments used in water-based coatings, additives in metalworking fluids and in food 

contact paper, neutralizers in personal care products, and intermediates in chemical synthesis. EPA 

excluded these chemicals from their regulatory definition ofVOC because they have very low 

photochemical reactivity and therefore, do not participate in ground level ozone formation. Adopting this 

rule into state law will clarifY requirements and remove these chemicals from being regulated as a VOC. 

The portion of the rule that proposes to repeal regulations concerning stage 2 vapor recovery at gas 

stations and the stage 2 vapor recovery grant rule, affects the owners and operators of gas stations in 

Southeastern Wisconsin. Beginning with 1998 model year vehicles, EPA began requiring auto 

manufacturers to equip new vehicles with on-board gasoline vapor recovery systems. Stage 2 vapor 

recovery at the gas pump became obsolete as these rules were implemented. Since the on-board vapor 

recovery systems serve the same purpose as the stage 2 vapor recovery equipment at the gas stations, the 

EPA authorized states to remove stage 2 vapor recovery rules from their ozone state implementation plans 

(SIP) making the rules covering stage 2 vapor recovery and the stage 2 vapor recovery grant rule obsolete. 

Page 2 of 4 
7. Soliciting public input on economic impact analysis. 

An analysis of the economic impacts of this proposed rule was prepared after information was obtained 

through a request concerning potential economic impacts of the proposed rule. The request for 

information was sent to all air permit holders in the state, representatives of local units of government, 

representatives of business, and the Air Management Study Group which includes members from 

environmental advocacy groups, environmental consultants, environmental law attorneys, utilities, and 

representatives of large and small businesses. 

The Department received eleven responses to the request for information on economic impacts. Nine of 

the responses indicated that the proposed rule would have no economic impact or wrote in support of the 

new rules as positive to business. Two responders indicated that implementation ofPM2.5 increment 

would have a negative economic impact on their businesses if the Department requires testing to 

determine PM2.5 emissions in order to ascertain compliance with increment. The Department continues 

to believe that impacts of adopting the PM2.5 increment will be minimal to businesses because the 

Department has proposed a new approach for determining whether a new project will comply with PM2.5 

increment. This new approach treats PM2.5 as a regional pollutant and does not rely on emissions data 

from individual businesses. 

8. Environmental Analysis. 

The promulgation of permanent administrative rules under ch. 227, Wis. Stats., is considered an 

equivalent analysis action under s. NR 150.20 (2) (a) 23., Wis. Adm. Code, and does not require 

additional environmental analysis under ch. NR 150, Wis. Adm. Code, because under emergency rule 

EmR1517 in effect through March 5, 2016 and published in the current Wisconsin Register, a detailed 

environmental analysis and public disclosure are conducted as part of the Department programmatic 

procedure. 

9. Small Business Analysis. 

The changes proposed in this rule addressing consistency with EPA rules are not expected to have an 

adverse economic impact on small businesses. Small businesses are usually not major sources for 

purposes of the major source air pollution control construction permit program (PSD program) because 

they tend not to have large amounts of emissions. Since the Department is already implementing the PSD 

program, as required by U.S. EPA, the consistency changes being proposed in this rule will not have any 

additional economic impacts. 

The adoption of the PM2.5 increment may require additional analysis by the Department during the air 

construction permit review for some small businesses constructing or expanding in certain parts of the 

state. The Department does not anticipate that this additional analysis will cause noticeable delays in 

permit issuance times and therefore, will not result in any significant impact to the affected small 

businesses. 

The portion of the rule that proposes to exclude certain compounds from the definition of volatile organic 

compounds (VOC) to make the rule consistent with the definition in federal regulations will provide 

clarity to businesses in how to calculate and report VOC emissions and on the applicability of regulations. 

Page 3 of4 
The proposed repeal of the stage 2 vapor recovery program and related implementing rules will clarifY 

applicable requirements for the affected small businesses and is not expected to have an adverse impact 

on them. This rule is expected to positively impact owners and operators of gas stations in Southeastern 

Wisconsin, most of which are considered small businesses. This rule repeals outdated rule language 

making the regulations easier to understand. 

Page 4 of 4 
STATE OF WISCONSIN 

DEPARTMENT OF ADMINISTRATION 

DOA-2049 (R03/2012) 

ADMINISTRATIVE RULES 

DIVISION OF EXECUTIVE BUDGET AND FINANCE 

101 EAST WILSON STREET, 10TH FLOOR 

P.O. BOX 7864 

MADISON, WI 53707-7864 

FAX: (608} 267-0372 

Fiscal Estimate & Economic Impact Analysis 

1. Type of Estimate and Analysis 

18] Original D Updated 0Corrected 

2. Administrative Rule Chapter, Title and Number 

Chapters NR 172, 400, 404, 405, 420, 425, 439, 484, and 494. 

3. Subject 

Proposed rules related to consistency with U. S. Environmental Protection Agency air pollution regulations and repeal of 

obsolete rules. 

4. Fund Sources Affected 

D GPR D FED [g) PRO D PRS D SEG D SEG-S 

6. Fiscal Effect of Implementing the Rule 

[gJ No Fiscal Effect D Increase Existing Revenues 

D Indeterminate D Decrease Existing Revenues 

7. The Rule Will Impact the Following (Check All That Apply) 

5. Chapter 20, Stats. Appropriations Affected 

NA 

D Increase Costs 

D Could Absorb Within Agency's Budget 

D Decrease Cost 

D State's Economy [g) Specific Businesses/Sectors 

D Local Government Units D Public Utility Rate Payers 

18] Small Businesses (if checked, complete Attachment A) 

8. Would Implementation and Compliance Costs Be Greater Than $20 million? 

DYes [g) No 

9. Policy Problem Addressed by the Rule 

The objective ofthis rulemaking is twofold; to address changes needed to maintain consistency with U.S. Environmental 

Protection Agency (EPA) regulations and to repeal obsolete rule provisions. 

The Department is the approved authority in the state to implement and enforce many of the federal regulations under the 

Clean Air Act. This authority is based on a State Implementation Plan submitted to and approved by U.S. EPA. In order 

to maintain a sufficient State Implementation Plan, the proposed changes to chs. NR 404 and 405 addressed by this rule 

package are required by U.S. EPA. 

10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that 

may be affected by the proposed rule that were contacted for comments. 

The Department anticipates that some portions of the proposed rule could potentially impact any air permit holder in the 

state. Other entities that may have an interest in the economic impacts of the proposed rule include organizations that 

represent business in the state including the Small Business Environmental Council, the Printing Council, the Wisconsin 

Transportation Builders Association, Wisconsin Manufacturers and Commerce, the Wisconsin Paper Council, and the 

American Council of Engineering Companies of Wisconsin. The Public Service Commission of Wisconsin and 

organizations representing local units of government including the League of Wisconsin Municipalities and the 

Wisconsin Counties Association may also have an interest. In addition, the Wisconsin the Air Management Study 

Group, the Air Program's stakeholder working group, may be interested in the economic impacts of this proposed rule. 

This group includes members representing Clean Wisconsin, Sierra Club, environmental law attorneys, utilities, and 

representatives of large and small businesses. The Department contacted all these entities, and others, for information on 

the economic impacts of the proposed rule changes. 

11. Identify the local governmental units that participated in the development of this EIA. 

No local governmental units asked to pm1icipate in, or did participate, in preparation of the final economic impact 

analysis. 

12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local 

Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be 

1 
STATE OF WISCONSIN 

DEPARTMENT OF ADMINISTRATION 

DOA-2049 (R03/2012) 

ADMINISTRATIVE RULES 

DIVISION OF EXECUTIVE BUDGET AND FINANCE 

101 EAST WILSON STREET, 10TH FLOOR 

P.O. BOX 7864 

MADISON, WI 53707-7864 

FAX: (608) 267-0372 

Fiscal Estimate & Economic Impact Analysis 

Incurred) 

Fiscal Impacts on the Department's Air Management Program 

The Department does not anticipate that this proposed rule will have a fiscal impact on the Air Management Program or 

any other DNR programs. 

Economic Impacts on Private Sector Businesses 

Sections 3 through 10 and 12 of the board order for AM-15-14 propose rules to adopt the federally established ambient 

air increment for PM25 . The Department expects that this proposed rule change will have no economic impact for most 

private sector businesses. An ambient air increment is the maximum increase in the concentration of a pollutant above a 

base line amount that is allowed to occur. Significant deterioration in air quality is said to occur when the amount of 

new pollution would exceed the applicable ambient air increment. It is important to note that the National Ambient Air 

Quality Standard for a pollutant may not be exceeded even where the increase in the concentration of the pollutant is 

lower than the ambient air increment. The Department may not issue a permit and a business may not begin the 

construction project until the Department determines that the emissions from the construction project will not cause or 

exacerbate a violation of an ambient air standard or increment. The Department does not expect that adopting the 

federally established ambient air increment for PM25 will have a significant effect on the approvability of construction 

permits in Wisconsin, and therefore should not have an economic impact on private sector businesses. PM2.5 is not 

emitted directly from most industrial operations. High temperature operations such as fuel burning, engine testing, and 

metal melting, may emit PM25 directly. When reviewing minor source construction permit applications for these types of 

sources, the Department has taken a weight of evidence approach and demonstrated that potential direct emitters of PM25 

have not caused or exacerbated a violation of an ambient air quality standard or the ambient air increment and have 

therefore not required individual source modeling analyses to make this determination. The Department does not 

anticipate that a business would have to make design changes or purchase emission control equipment for PM2.5 as a 

result of the proposal to adopt the federal PM25 ambient air increments. 

The Department began including PM2.5 increment analyses in major source air construction permit reviews (PSD 

permits) when U.S. EPA first adopted the new increment. Applications for major source construction permits in affected 

areas, must include an increment analysis which requires knowledge of emissions of the affected pollutant from nearby 

minor sources. Because of the Department's decision to no longer use individual source dispersion modeling to evaluate 

increment at minor sources, there may be a slight increase in the time required to prepare a major source application to 

include information on PM25 from those nearby minor sources. However, the Department believes this workload would 

be slight because, aside from combustion units whose emissions are easily estimated, very few sources directly emit 

PM2.s· 

Sections 14 and 15 of the board order for AM-15-14, the portion ofthe rule that removes the significant monitoring 

concentration for PM2.5, will not result in any change to the method of reviewing air permits in Wisconsin, and therefore 

is not anticipated to have any economic impact. One requirement for major source construction pmmit applicants is to 

provide an estimate of pre-construction air quality, including up to one-year of site specific ambient air monitoring data. 

The significant monitoring concentration was originally established in federal law to allow a dispersion modeling 

analysis to be used to demonstrate that the potential increase of ground level pollutant concentration is small enough that 

site specific pre-construction monitoring is not required. The U. S. EPA removed the significant monitoring 

concentration for PM2.

5 from its rules and the Department now is proposing this change to maintain consistency with 

federal law. Removal of the significant monitoring concentration will not have an effect on major source construction 

2 
STATE OF WISCONSIN 

DEPARTMENT OF ADMINISTRATION 

DOA-2049 (R03/2012) 

ADMINISTRATIVE RULES 

DIVISION OF EXECUTIVE BUDGET AND FINANCE 

101 EAST WILSON STREET, 10TH FLOOR 

P.O. BOX 7864 

MADISON, WI 53707-7864 

FAX: (608) 267-0372 

Fiscal Estimate & Economic Impact Analysis 

permit applicants as Wisconsin maintains a wide spread, federally compliant network of PM2.5 ambient monitors that are 

used to assess pre-construction air quality for major source construction permit applicants in all parts of the state. 

Sections 11 and 13 and 16 of the board order is the portion of the rule that specifically names oxides of nitrogen (NOx) 

as a precursor to ozone. Because the Department recognizes NOx as an ozone precursor under cunent rules and 

considers NOx emissions when reviewing federally required permits, the proposed rules do not constitute a change in 

Depmiment policy or procedures and therefore the proposed rules will not have any economic impact. 

Section 1 of the board order for AM-15-14, the pmiion of the rule that proposes to amend the definition of volatile 

organic compounds (VOCs) to exclude additional substances, will align the state and federal definitions ofVOC. 

Coating, painting, printing and other types of businesses that use organic compounds will no longer be required to count 

the listed substances as VOCs. This proposed change will not have a negative economic impact and may, in fact, have an 

economic benefit to businesses that emit VOCs, including being able to quality for construction and operation permit 

exemptions or to show the business qualifies for coverage under a general or registration permit. 

Sections 17 through 24 of the board order for AM-15-14 involve repealing the stage 2 vapor recovery regulations and 

related grant rules in ch. NR 172 for gas stations in Southeastern Wisconsin. These changes will not have any economic 

impact on businesses in Wisconsin because the state has not been implementing the rule since 2012, as required under s. 

285.31, Wis. Stats. The U.S. EPA authorized states to remove these rules from state implementation plans, which 

Wisconsin did in 2013. Grant funding for removal of Stage 2 Vapor Recovery systems was available through the end of 

the 2 year budget cycle ending on June 30, 2015. This proposed rule is simply the last stage of cleaning up these now 

obsolete requirements. 

Economic Impacts on local governments and public entities 

The Department does not anticipate that local governments and public entities will be economically impacted by the 

implementation of the proposed rules. 

13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule 

This rule change was undertaken to align state regulations with Clean Air Act regulations. The Department is the 

approved authority in the state to implement Clean Air Act permit programs and Department rules must be consistent 

with U.S. EPA regulations to maintain that authority. Ifthe state does not make the proposed rule changes, the U.S. EPA 

may potentially disapprove portions ofthe state's permit program and could take over review and issuance of permits. 

The Department believes that it is better equipped at this time than U.S. EPA to efficiently and effectively issue quality 

air permits in the state without causing undue delays to business needs. This is a significant benefit of adopting these 

proposed rule changes. 

14. Long Range Implications of Implementing the Rule 

The Department does not anticipate any long tenn fiscal or economic implications to implementing the rule. 

15. Compare With Approaches Being Used by Federal Government 

All of the changes being proposed in this rule are necessmy to align state rules with federal regulations. 

16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota) 

Illinois and Minnesota are direct delegated states, implementing the federal prograiTI immediately after federal rules are 

effective, and are not implementing their programs through a State Implementation Plan (SIP) as Wisconsin does. Iowa 

and Michigan, similar to Wisconsin, are SIP approved states, so they are also implementing a federal program, but 

through their own state rules. It is the goal of SIP-approved states to implement federal programs in accordance with the 

regulations set out in federal code. This proposed rule implements changes needed to align with federal regulations and, 

3 
STATE OF WISCONSIN 

DEPARTMENT OF ADMINISTRATION 

DOA-2049 (R03/2012) 

ADMINISTRATIVE RULES 

DIVISION OF EXECUTIVE BUDGET AND FINANCE 

101 EAST WILSON STREET, 10TH FLOOR 

P.O. BOX 7864 

MADISON, WI 53707-7864 

FAX: (608) 267-0372 

Fiscal Estimate & Economic Impact Analysis 

thus, result in rules similar to those in neighboring states. 

17. Contact Name 

Kristin Hart 

18. Contact Phone Number 

60 8/266-6 87 6 

This document can be made available in alternate formats to individuals with disabilities upon request. 

4 
STATE OF WISCONSIN 

DEPARTMENT OF ADMINISTRATION 

DOA-2049 (R03/2012) 

ADMINISTRATIVE RULES 

DIVISION OF EXECUTIVE BUDGET AND FINANCE 

101 EAST WILSON STREET, 10TH FLOOR 

P.O. BOX7864 

MADISON, WI 53707-7864 

FAX: (608) 26HJ372 

Fiscal Estimate & Economic Impact Analysis 

ATTACHMENT A 

1. Summary of Rule's Economic and Fiscal Impact on Small Businesses (Separately for each Small Business Sector, Include 

Implementation and Compliance Costs Expected to be Incurred) 

The proposed rule is expected to have no impact for many businesses and it may create, for small businesses that 

regularly emit VOCs such as printers, coaters, spray painting operations, and autobody repair shops, an economic 

benefit. Because emissions of ce11ain compounds will no longer be considered VOC emissions, small business emitting 

these compounds may be able to qualify for construction and operation pennit exemptions or may become eligible for 

coverage under a more streamlined permit option such as a general or registration permit. 

2. Summary of the data sources used to measure the Rule's impact on Small Businesses 

Because the Department does not expect a negative economic impact on small businesses, no data sources were 

examined for this analysis. 

3. Did the agency consider the following methods to reduce the impact of the Rule on Small Businesses? 

D Less Stringent Compliance or Reporting Requirements 

D Less Stringent Schedules or Deadlines for Compliance or Reporting 

D Consolidation or Simplification of Reporting Requirements 

D Establishment of performance standards in lieu of Design or Operational Standards 

D Exemption of Small Businesses from some or all requirements 

D Other, describe: 

4. Describe the methods incorporated into the Rule that will reduce its impact on Small Businesses 

No special methods are being incorporated into the rule to reduce impacts. The Department does not believe there will 

be negative economic impacts to small business. 

5. Describe the Rule's Enforcement Provisions 

NA 

6. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form) 

DYes [gl No 

5 
ORDER OF THE STATE OF WISCONSIN NATURAL RESOURCES BOARD 

REPEALING, AMENDING, AND CREATING RULES 

The Wisconsin Natural Resources Board proposes an order to repeal NR 172, 420.02 (8m), (26), (32), and 

(38m), 420.045,425.035,439.06 (3) (i), 484.05 (4) and (5), and 494.04; to amend NR 404.05 (2) (intro.), 

(3) (intro.), (4) (intro.), 405.02 (3), (21) (a), (21m) (a), (22) (b), (22m) (a) 1. and (b) 1., and (27) (a) 6., 

405.07 (8) (a) 3m. and 5. (Note), 420.02 (39), 420.03 (4) (b) 3., and 420.04 (1) (b) 4. and (3) (c) 1.; and to 

create NR 400.02 (162) (a) 53. to 60., 404.05 (2) (am), (3) (am), (4) (am), 405.02 (21m) (c), (22m) (a) 3., 

405.07 (8) (a) 3m. (Note) relating to consistency with U.S. Environmental Protection Agency air pollution 

control regulations and the repeal of obsolete rules, and affecting small business. 

AM-15-14 

Analysis Prepared by the Department of Natural Resources 

1. Statute interpreted: 

Sections 285.11 (1) and (6), Stats. The State Implementation Plan developed under s. 285.11(6), Stats., 

will be revised. 

2. Statutory authority: 

Sections 285.11 (1), (6), (16), and (17), 285.17 (l)(a), 285.21 (2) and (4), 285.25 (1), and 285.31 (5), 

Wis. Stats., establish the authority for promulgation of the proposed rules. 

3. Explanation of agency authority: 

(A) Section 285.11 (1), Wis. Stats., requires that the Department promulgate rules implementing 

and consistent with ch. 285, Wis. Stats., and thereby establishes authority for the proposed changes to ch. 

NR 405, Wis. Adm. Code, related to the prevention of significant deterioration permit program as affected 

by ss. 285.60, 285.61, and 285.63, Wis. Stats. More specific authority for these proposed changes is 

established as follows: 

(1) Section 285.11 (16), Wis. Stats., requires that the Department promulgate rules, consistent with 

but no more restrictive than the federal Clean Air Act, that specifY the amounts of emissions that result in a 

stationary source being classified as a major source and limit the classification of a major source to specific 

air contaminants. Section 285.11 (17), Wis. Stats requires the Department to promulgate rules, consistent 

with the federal Clean Air Act, that modifY the meaning of the term "modification" as it relates to specific 

air contaminants. These statutory provisions support the Department's proposed changes to ch. NR 405, 

Wis. Adm. Code, to identifY nitrogen oxides (NOx) as a precursor to ozone formation is consistent with 

federal Clean Air Act requirements regarding what contaminants to consider when determining whether a 

source is a major source and describe when an increase in a given air contaminant is considered a 

modification. 

(2) Section 285.17 (1) (a), Wis. Stats., requires the Department to classifY by rule the level of an 

air contaminant source that may cause or contribute to air pollution. This statute supports the proposed 

change to the significant monitoring concentration for PM2.5 which is established as a threshold below 

which major source construction permit applicants are not required to provide pre-construction air quality 

monitoring data. 

(3) Section 285.21 (2) and (4), Wis. Stats., supports the Depatiment's proposed change to 

establish ambient air increments for PM2.5. These statutory provisions require that the Department 

promulgate by rule ambient air increments for air contaminants consistent with, and not more restrictive 

than, those under the federal Clean Air Act for attainment areas. The Department must keep these rules 

consistent with any modifications to these increments made under the Clean Air Act. 

(4) Section 285.25 (1), Wis. Stats., supports the Department's proposed changes to add PM2.5 to 

select definitions inch. NR 405, Wis. Adm. Code, related to a pollutant's baseline concentration. This 

statute requires that the Department promulgate rules designating procedures and criteria to determine the 

1 
allocation of available air resources in an attainment area. The terms affected are used in these procedures 

and the proposed inclusion of PM 2.5 in the relevant definitions is necessary and appropriate when the 

Depmtment dete1mines the allocation of air resources for PM2.5. 

(B) Section 285.11 (6), Wis. Stats., establishes authority for the proposed change to the definition 

ofvolatile organic compounds (VOC), by adding compounds to the list of those excluded from the 

definition. This statute requires that the Department develop a plan for the prevention, abatement, and 

control of air pollution. For control of atmospheric ozone, the plan, with limited exceptions, must conform 

to the federal Clean Air Act. Since VOC are a precursor to ozone, the addition of the proposed compounds 

to the list ofthose excluded from the defmition ensures that the state definition ofVOC conforms to the 

federal defmition. 

(C) The proposed repeal of s. NR 420.045, Wis. Adm. Code, along with other rules related to its 

implementation are consistent with the legislature's mandate under s. 285.31 (5), Wis. Stats., to terminate 

the further implementation of stage 2 vapor recover equipment requirements. 

4. Related statute or rule: 

Related to the proposed repeal of s. NR 420.045, the state legislature promulgated s. 285.31 (5), 

Wis. Stats., effective Aprill7, 2012, terminating the further implementation of stage 2 vapor recover 

equipment requirements under s. NR 420.045, Wis. Adm. Code. 

5. Plain language analysis: 

The Department has two main objectives in proposing these rules; to address changes needed to maintain 

consistency with U.S. Environmental Protection Agency (EPA) regulations and to repeal obsolete rule 

provisions. 

(A) Consistency. 

(1) Chapter NR 405, Wis. Adm. Code, establishes requirements and procedures for reviewing and 

issuing air pollution control construction permits for any new major stationary source and any major 

modification to an existing stationary source located in areas designated as in attainment with national 

ambient air quality standards or as unclassifiable. This permit program is referred to as prevention of 

significant deterioration or PSD and is based on U.S. EPA regulations in 40 CPR 51.166. The Department 

is the approved authority in the state to implement and enforce many of the federal regulations under the 

Clean Air Act. This authority is based on a State Implementation Plan submitted to and approved by U.S. 

EPA. In order to maintain a sufficient State Implementation Plan, the proposed changes to cbs. NR 404 

and 405 addressed by this rule package are required. 

The Department is proposing changes to maintain consistency with existing U. S. EPA regulations 

in three areas: a., identifying nitrogen oxides as a precursor to ozone; b., updating requirements concerning 

particulate matter with an aerodynamic diameter less than or equal to 2.5 micrometers (PM2.5); and c., 

amending the definition of volatile organic compound by adding 8 compounds to the list of compounds 

with negligible photochemical reactivity. These are each described further below: 

a. Sections NR 405.02 (21) (a), (22) (b), (27) (a) (6) and 405.07 (8) (a) 5., Wis. Adm. Code, to 

specifically identify that, in addition to volatile organic compounds, nitrogen oxides (NOx) are a precursor 

to ozone formation consistent with U.S. EPA requirements in 40 CPR 51.166 (b) and (i). 

b. 1. Section NR 404.05, Wis. Adm. Code, to adopt ambient air increments for PM2.5. Ambient 

air increments for pollutants with national ambient air quality standards, including PM2.5, are established 

by the U.S. EPA in 40 CPR 51.166 (c), and 

2. Section NR 405.02 (3), (21m), and (22m), Wis. Adm. Code, to include PM2.5 in the definitions 

of"baseline area", "major source baseline date", and "minor source baseline date", respectively. These 

terms are defined by the U.S. EPA in 40 CPR 51.166 (b) (14) (i) and (ii) and (15) (i). 

3. Section NR 405.07 (8) (a) 3m. to change the significant monitoring concentration for PM2.5 to 

zero in accordance with Sierra Club v. EPA, 706 F.3d 428 (D.C. Cir. 2013). 

c. Chapter NR 400, Wis. Adm. Code, establishes definitions for terms commonly used throughout 

chs. NR 401 to 499, Wis. Adm. Code. A definition for the term 'volatile organic compounds' or 'VOC' is 

included in s. NR 400.02 (162), Wis. Adm. Code. In the ambient air these compounds can participate in 

2 
photochemical reactions to produce ozone, more commonly referred to as smog, and are therefore subject 

to emission control requirements and may trigger the need to obtain a construction or operation permit. The 

U.S. EPA has determined that certain organic compounds have negligible photochemical reactivity in the 

atmosphere and therefore excludes them from the federal definition ofVOC in 40 CFR 51.100 (s). To 

maintain consistency with federal rule, the Depmtment proposes to add these eight compounds to the list of 

excluded compounds in the state definition. These compounds are: 

1. Trans-1,3,3,3-tetrafluoropropene (HF0-1234ze). 

2. HCF20CF2H (HFE-134). 

3. HCF20CF20CF2H (HFE-236cal2). 

4. HCF20CF2CF20CF2H (HFE-338pcc13). 

5. HCF20CF20CF2CF20CF2H (H-Galden 1040X or H-Galden ZT 130 (or 150 or 180). 

6. Trans-1-chloro-3,3,3-trifluoroprop-1-ene (SolsticeTM 1233zd(E)). 

7. 2,3,3,3-tetrafluoropropene (HF0-1234yf). 

8. 2-amino-2-methyl-1-propanol (AMP; CAS number 124-68-5). 

(B) Obsolete Rules. 

In addition to the changes described above to maintain consistency with U.S. EPA regulations, the 

Department is also proposing to repeal the stage 2 vapor recovery regulations ins. NR 420.045 and make 

clean-up changes to associated rules provisions, including the repeal of grant rules in ch. NR 172 for gas 

stations in Southeastern Wisconsin. Stage 2 vapor recovety equipment captures volatile organic 

compounds that evaporate into the air when vehicle gasoline tanks are filled and returns the vapors to the 

underground gasoline storage tank where they condense. Beginning with 1998 model year vehicles, the 

U.S. EPA began requiring manufactures to equip new vehicles with on-board gasoline vapor recovery 

systems. These systems serve the same purpose as the stage 2 vapor recovery equipment at gasoline 

dispensing facilities. The U.S. EPA authorized states to remove stage 2 vapor recovery equipment 

requirements from their ozone state implementation plan (SIP) which Wisconsin did, effective December 

4, 2013. 

6. Summary of, and comparison with, existing or proposed federal statutes and regulations: 

The Department is proposing changes inch. NR 405, Wis. Adm. Code, to address changes needed 

to maintain consistency with U. S. EPA regarding rules for issuing construction permits for any new major 

stationary source and any major modification to an existing stationary source located in areas designated as 

in attainment with national ambient air quality standards or as unclassifiable. These changes are needed to 

conform with federal requirements in three areas: identifying nitrogen oxides as a precursor to ozone 

consistent with 40 CFR 51.166; updating the ambient air increment and the significant monitoring 

concentration for PM2.5 consistent with 40 CFR 51.166; and adding 8 compounds to the list of 

compounds with negligible photochemical reactivity consistent with the federal definition ofVOC in 40 

CFR 51.100 (s) 

To address consistency with U.S. EPA regarding nitrogen oxides (NOx) as a precursor to ozone, 

the Department is proposing changes to Sections NR 405.02 (21) (a), (22) (b), (27) (a) (6) and 405.07 (8) 

(a) 5., Wis. Adm. Code, to specifically identify that, in addition to volatile organic compounds, NOx 

emissions are a precursor to ozone fmmation consistent with U.S. EPA requirements in 40 CFR 51.166 (b) 

and (i). 

To address consistency with U.S. EPA regarding particulate matter with an aerodynamic diameter 

less than or equal to 2.5 micrometers (PM2.5), the Department is proposing rule changes in three areas: 

(A) Section 404.05 to add the Class I, Class II, and Class ill increment values to ch. NR 404 as 

established in 40 CFR 51.166 (c); 

(B) Section 405.02 (3), (21m), and (22m), to include PM2.5 in the definitions of"baseline area", 

"major source baseline date", and "minor source baseline date", consistent with federal regulations in 40 

CFR 51.166 (b); and 

(C) Section 405.07 (8) (a) 3m., to adopt the significant monitoring concentration for PM2.5 of 

zero (0) as required in 40 CFR 51.166 (i) (5) (i) (c); 

3 
To address consistency with U. S. EPA regarding the definition ofVOC, the Department proposes 

to add eight compounds to the list of excluded compounds in the state definition in s. NR 400.02 (162), 

Wis. Adm. Code. This is consistent with the federal definition ofVOC in 40 CFR 51.100 (s). 

7. Comparison with similar rules in adjacent states (Illinois, Iowa, Michigan and Minnesota): 

This proposed rule implements changes needed to assure consistency between state and federal 

rules and thus, result in rules similar to those in neighboring states. Illinois and Minnesota are direct 

delegated states, meaning that they are implementing directly the federal program and are not 

implementing their programs through a State Implementation Plan (SIP), as Wisconsin does. Iowa and 

Michigan, similar to Wisconsin, are SIP-approved states, so they are implementing the same federal 

programs, but through their own state rules. It is the goal of SIP-approved states to implement federal 

programs in accordance with the regulations set out in federal code. This results in similar requirements 

fi·om state to state. 

8. Summary of factual data and analytical methodologies used and how any related findings 

support the regulatory approach chosen: 

Since the Department is proposing rules consistent with federal regulations, making consistency 

and clarification changes, and repealing rules as directed by the state legislature, the Department did not 

make use of any factual data or analytical methodologies in the rule development. 

9. Analysis and supporting documents used to determine the effect on small business or in 

preparation of an economic impact report: 

The economic impact ofthe proposed rule is expected to be minimal. When U.S. EPA adopts 

changes to the federal major air pollution control construction permit program, the Department 

immediately implements those changes through the state's construction permitting program. For this 

reason, the consistency changes being proposed, that specifically name NOx as a precursor to ozone, will 

not have any additional economic impact on facilities obtaining major source air pollution construction 

permits (PSD permits). 

The adoption of the PM2.5 increment will require additional analysis during the air construction 

permit reviews for minor sources (which may be small businesses) wishing to expand in areas where 

increment must be analyzed. However, because the Department has developed a weight of evidence 

approach to evaluate PM2.5 emissions against the increment, the Department does not anticipate that this 

additional analysis will cause noticeable delays in minor source permit issuance times and therefore, will 

not result in any significant impact to small businesses. 

The Department has not been implementing the stage 2 vapor recovery program since 2012 when 

the state legislature terminated further implementation. Repeal of these outdated rules clarifies applicable 

requirements for the affected businesses and is not expected to have an adverse economic impact on them. 

As noted above, U.S. EPA already approved the removal ofthese requirements from Wisconsin's SIP. 

The portion of the rule that proposes to change the definition of volatile organic compounds 

(VOC) to make the rule consistent with the definition in federal regulations will provide clarity to 

businesses in how to calculate and report VOC emissions and on the applicability of regulations. This 

change is not expected to have a negative economic impact on businesses and, since the proposed change 

is specifically to exclude some organic compounds from the definition ofVOC, the rule change could have 

a small, positive economic impact on certain facilities that use the excluded compounds. 

10. Effect on small business (initial regulatory flexibility analysis): 

The changes proposed in this rule are not expected to have an adverse economic impact on 

businesses, including small businesses. Small businesses are usually not major sources for purposes of the 

major source air pollution control construction permit program (PSD program) because they tend not to 

have large amounts of emissions. Since the Department is already implementing the PSD program, as 

required by U.S. EPA, the consistency changes being proposed in this rule will not have any additional 

economic impacts. 

4 
The adoption of the PM2.5 increment will require some additional analysis during the air 

construction permit review for some small businesses expanding in ce11ain pmis of the state, however, the 

Department does not anticipate that this additional analysis will cause noticeable delays in permit issuance 

times and therefore, will not result in any significant impact to the affected businesses. 

The portion of the rule that proposes to change the definition of volatile organic compounds 

(VOC) to make the rule consistent with the definition in federal regulations will provide clarity to 

businesses in how to calculate and report VOC emissions and on the applicability of regulations. Small 

businesses affected include coating facilities, paint shops, autobody shops, and printing operations. This 

change is not expected to have a negative economic impact on these businesses however, because the 

proposed change is specifically to exclude some organic compounds from the definition ofVOC. In fact, 

the rule change could have a positive economic impact on small businesses that use the compounds 

proposed to be excluded. 

Many gasoline dispensing facilities are small businesses. The proposed repeal of the stage 2 vapor 

recovery program and related implementing rules will clmity applicable requirements for the affected small 

businesses and is not expected to have an adverse economic impact on them. 

11. Agency contact person: 

Kristin Hmi, Chief, Pe1mits and Stationary Source Modeling Section 

Phone: 608.266.6876 

Fax: 608.267.0560 

Email: Kristin.Hart@wisconsin.gov 

SECTION 1. NR 172 is repealed. 

SECTION 2. NR 400.02 (162) (a) 53. to 60. are created to read: 

NR 400.02 (162) (a) 53. Trans-1,3,3,3-tetrafluoropropene (HF0-1234ze). 

54. HCF20CF2H (HFE-134). 

55. HCF20CF20CF2H (HFE-236cal2). 

56. HCF20CF2CF20CF2H (HFE-338pcc13). 

57. HCF20CF20CF2CF20CF2H (H-Galden 1040X or H-Galden ZT 130 (or 150 or 180)). 

58. Trans-1-chloro-3,3,3-trifluoroprop-1-ene (SolsticeTM 1233zd(E)). 

59. 2,3,3,3-tetrafluoropropene (HF0-1234yf). 

60. 2-amino-2-methyl-1-propanol (AMP; CAS number 124-68-5). 

SECTION 3. NR 404.05 (2) (intro.) is amended to read: 

NR 404.05 (2) (intro.) CLASS I INCREMENTS. In any area of this state classified under the 

federal olean air act Act as a class I area, the ambient air increments of particulate matter measured as for 

PM10, PM .s~ sulfur dioxide~ and nitrogen dioxide may not exceed the following amounts: 

SECTION 4. NR 404.05 (2) (am) is created to read: 

NR 404.05 (2) (am) PMu 

1. Annual arithmetic mean 1 microgram per cubic meter 

5 
2. Twenty-four hour maximum 2 micrograms per cubic meter 

SECTION 5. NR 404.05 (3) (intro.) is amended to read: 

NR 404.05 (3) (intro.) CLASS II INCREMENTS. In any area of this state classified under the aet 

Act as a class II area, the ambient air increments of particulate matter measured as for PM10, PM25, sulfur 

dioxide, and nitrogen dioxide may not exceed the following amounts: 

SECTION 6. NR 404.05 (3) (am) is created to read: 

NR 404.05 (3) (am) PM2.5-

I. Annual arithmetic mean 

2. Twenty-four hour maximum 

4 micrograms per cubic meter 

9 micrograms per cubic meter 

SECTION 7. NR404.05 (4) (intro.) is amended to read: 

NR 404.05 ( 4) (intro.) CLASS III INCREMENTS. In any area of this state classified under the aet 

Act as a class III area, the ambient air increments ofpartieulate matter measured as for PM10, PM2.5, sulfur 

dioxide, and nitrogen dioxide may not exceed the following amounts: 

SECTION 8. NR 404.05 (4) (am) is created to read: 

NR 404.05 (4) (am) PM2.5. 

I. Annual arithmetic mean 

2. Twenty-four hour maximum 

8 micrograms per cubic meter 

18 micrograms per cubic meter 

SECTION 9. NR 405.02 (3), (21) (a), and (21m) (a) are amended to read: 

NR 405.02 (3) "Baseline area" means any intrastate area, and every part thereof, designated as 

attainment or unclassifiable under section 107 (d) (I) (D) or (E) (A) (ii) or (iii) ofthe Act (42 USC 7407 

(d) (I) (D) or (E) (A) (ii) or (iii)) in which the major source or major modification establishing the minor 

source baseline date would construct or would have an air quality impact for the pollutant for which the 

baseline date is established equal to or greater than I J.tg/m3 (annual average) of the air eontaminant for 

which the minor souree baseline date is established for SOb N02, or PM10, or equal to or greater than 

0.31Jg/m3 (annual average) for PM2.

5. Area redesignations under section I 07 (d) (I) (D) or (E) (A) (ii) or 

(iii) of the Act ( 42 USC 7 407 (d) (1) (A) (ii) or (iii)) cannot intersect or be smaller than the area of impact 

of any major stationary source or major modification which either establishes a minor source baseline date 

or is subject to this chapter. 

(21) (a) Any significant emissions increase from any emissions units or net emissions increase at a 

major stationary source that is significant for volatile organic compounds or nitrogen oxides shall be 

considered significant for ozone. 

6 
(21m) (a) In the case of particulate matter PM10 and sulfur dioxide, January 6, 1975. 

SECTION 10. NR 405.02 (21m) (c) is created to read: 

NR 405.02 (21m) (c) In the case ofPM2.5, October 20, 2010. 

SECTION 11. NR 405.02 (22) (b) and (22m) (a) 1. and (b) 1. are amended to read: 

NR 405.02 (22) (b) A major source that is major for volatile organic compounds or nitrogen 

oxides shall be considered major for ozone. 

(22m) (a) 1. In the case ofpatiiculate matter PM.ill and sulfur dioxide, August 7, 1977. 

(b) 1. The area in which the proposed source or modification would construct is designated as 

attainment or unclassifiable under section 107 (d) (1) (D) or (E) (A) (ii) or (iii) of the Act (42 USC 

7407(d)(l)(D) or (E) (A)(ii) or (iii)) for the air contaminant on the date of its complete application under 

40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.166. 

SECTION 12. NR 405.02 (22m) (a) 3. is created to read: 

NR 405.02 (22m) (a) 3. In the case ofPM2.5, October 20, 2011. 

SECTION 13. NR 405.02 (27) (a) 6. is amended to read: 

NR 405.02 (27) (a) 6. Ozone: 40 tpy of volatile organic compounds or nitrogen oxides. 

SECTION 14. NR 405.07 (8) (a) 3m. is amended to read: 

NR 405.07 (8) (a) 3m. PM2.5 -H Q f.Lg/m3

, 24 hour average~ 

SECTION 15. NR 405.07 (8) (a) 3m. (Note) is created to read: 

NR 405.07 (8) (a) 3m. (Note) In accordance with Sierra Club v. EPA, 706 F.3d 428 (D.C. Cir. 

2013), no exemption is available with regard to PM2.5• 

SECTION 16. NR 405.07 (8) (a) 5. (Note) is amended to read: 

NR 405.07 (8) (a) 5. (Note) No de minimis air quality level is provided for ozone. However, any 

source with a net increase of 100 tons per year or more of volatile organic compounds or nitrogen oxides 

subject to regulation under this chapter would be required to perform an ambient impact analysis, 

including the gathering of ambient air quality data. 

SECTION 17. NR 420.02 (8m), (26), (32), and (38m) are repealed. 

7 
SECTION 18. NR 420.02 (39) is amended to read: 

NR 420.02 (39) "Vapor recovery system" or "vapor control system" meaH-S mean a system that 

gathers organic compound vapors released during the operation of any transfer, storage, or process 

equipment and processes the vapors so as to prevent their emission into the ambient air. 

SECTION 19. NR420.03 (4) (b) 3. is amended to read: 

NR 420.03 (4) (b) 3. All gauging and sampling devices are vapor tight vapor tight except when 

gauging or sampling is taking place. 

SECTION 20. NR 420.04 (1) (b) 4. and (3) (c) 1. are amended to read: 

NR 420.04 (1) (b) 4. All loading and vapor lines are equipped with fittings which make 

vapor tight vapor tight connections and which close automatically when disconnected. 

(3) (c) 1. vapor balance system with a vapor tight vapor tight vapor return line from the storage 

tank to the delivery vessel and a system that will ensure the vapor line is connected before gasoline can be 

transferred into the storage tank. 

SECTION 21. NR 420.045 is repealed. 

SECTION 22. NR 425.035 is repealed. 

SECTION 23. NR 439.06 (3) (i) is repealed. 

SECTION 24. NR 484.05 (4) and (5) are repealed. 

SECTION 25. NR 494.04 is repealed. 

SECTION 26. EFFECTIVE DATE. This rule shall take effect on the first day ofthe month following 

publication in the Wisconsin administrative register as provided ins. 227.22 (2) (intro.), Stats. 

SECTION 27. BOARD ADOPTION. This rule was approved and adopted by the State of Wisconsin 

Natural Resources Board on ------------~------

8 
Dated at Madison, Wisconsin ---------------------------

STATE OF WISCONSIN 

DEPARTMENT OF NATURAL RESOURCES 

By __________________________ __ 

Cathy Stepp, Secretary 

(SEAL) 

9 
BEFORE THE 

DEPARTMENT OF NATURAL RESOURCES 

NOTICE OF PUBLIC HEARING 

Natural Resources Board Order AM-15-14 

NOTICE IS HEREBY GIVEN That pursuant toss. 227.16 and 227.17, Wis. Slats, the Department of 

Natural Resources will hold a public hearing to consider and accept comment on proposed permanent 

revisions to chs. NR 172, 400, 404, 405, 420, 425, 439, 484, and 494, Wis. Adm. Code, relating to 

consistency with U.S. Environmental Protection Agency air pollution control regulations and the repeal of 

obsolete rules, on the date and at the time and location listed below. 

NOTICE IS FURTHER GIVEN that the public hearing als\) concerns the proposed revision of 

Wisconsin's State Implementation Plan (SIP) which is required under the Clean Air Act and developed 

under s. 285.11 (6), Wis. Stats. The Department will accept comment on the proposed submittal of final 

roles affecting chs. NR 400, 404, 405, 420, 425, 439, and 484, Wis. Adm. Code, and promulgated under 

this rulemaking, to the United States Environmental Protection Agency (EPA) for approval and 

incorporation into Wisconsin's SIP. While the proposed rulemaking for state purposes will affect chs. NR 

172 and 494, Wis. Adm. Code, the Department is not proposing to include the changes to these chapters 

in its request to the U.S. EPA for revision of Wisconsin's SIP at this time. 

This public hearing notice and request for comments satisfies requirements inch. 227, Wis. Stats., for 

state rulernaking and 40 CFR Part 51.102 for submittal of final roles to the United States EPA as a 

revision to Wisconsin's SIP. 

Hearing Information 

Date and Time 

Thursday, November 5, 2015 

1:00PM 

Location 

Natural Resources State Office Building 

101 South Webster Street 

Madison, Wisconsin 

Room 713 

Availability ofthe Proposed Rules 

The proposed rule revisions along with the fiscal estimate a\ld economic impact analysis may be viewed , r I .f 

and downloaded at https://health.wisconsin.gov/admrules/pliblic/Rmo?nRmold=l 0843 . ' "'· 

Accessibility 

The hearing location has an entrance accessible to individuals with disabilities. Reasonable 

accommodations, including the provision of informational material in an alternative format, will be 

provided for qualified individuals with disabilities upon request. Contact Robert Eckdale in writing at the 

Department ofNatural Resources, Bureau of Air Management (AM/7), 101 S. Webster St., Madison, WI 

53703; by email to Robert.Eckdale@wisconsin.gov; or by calling (608) 266-2856. A request must 

include specific information and be received at least I 0 days before the date of the scheduled hearing. 

Submitting Comments 

Comments on the proposed rules and proposed revision to Wisconsin's SIP must be received on or 

before November 12,2015. Oral statements may be presented at the hearing. Written comments may be 

submitted at the hearing, by U.S. mail, fax, email, or through the internet and will have the same weight 

and effect as oral statements presented at the public hearing. Written comments and any questions on the 

proposed mles should be addressed to: 

'·'· 
Kristin Hart 

Department ofNatural Resources 

Bureau of Air Management (AM/7) 

101 S Webster St, Madison, WI 53703 

Phone; 

Fax: 

E-mail: 

Internet: 

(608) 266-6876 

(608) 267-0560 

Kristin.Hart@wisconsin.gov 

Use the page for this ru1emaking on Administrative Rules System Website to comment 

(requires registration to comment) at • 

https://health.wisconsin.gov/admrules/public!Rmo?nRmoid~l8483. 

Initial Regulatory Flexibility Analysis 

Prior to the preparation of an economic impact analysis for this proposed mle, the Department widely 

solicited information and advice from business, business sectors, associations representing businesses, 

local governmental units, and individuals that could be affected. No information or responses were 

received that identified affected small businesses or gave any indication that small businesses would be 

directly affected. 

The Small Business Regulatory Coordinator may be contacted at Smal!Business@dnr.state.wi.us, or by 

calling (608) 266-1959. 

Dated at Madison, Wisconsin: September 28, 2015 

STATE OF WISCONSIN 

DEPARTMENT OF NATURAL RESOURCES 

By~-' Cathy Stepp, Sec etary 4t_ 
WISCONSIN DEPARTMENT OF NATURAL RESOURCES 

BUREAU OF AIR MANAGEMENT 

\l 

STATE IMPLEMENT ATIONPLAN REVISION 

CERTIFICAT1bN 

Pursuant to the requirements of 40 CFR s. 51.1 02(f), I hereby certify that the Wisconsin 

Department of Natural Resources held the hearing described below; that the hearing was 

held in accordance with the public notice (copy attached), as required by 40 CFR s. 

51.1 02( d); and that I was the presiding officer at the hearing. 

Subject: 

Revisions to SIP for proposed permanent rule revisions to chs. NR 172, 400, 404, 405, 

420, 425, 439, and 484, and 494, Wis. Adm. Code, relating to consistency with U.S. 

Environmental Protection Agency air pollution control regulations and the repeal of 

obsolete rules. 

Hearing held: 

Thursday November 5, 2015 in Madison,;Wjsconsin. ' ' '·. \ 

\'·I 

Written comments were received until November 1'2, 2015. 

Subscribed and sworn to before me 

This~ day of Jao\Aa<c-1 , 2016 

' 

Notary Public, State of Wi onsin 

My commission is permanent. 

\(.QncN\1\ ~ _ (Y~G~ Kendra L. Fisher 

BUREAU OF LEGAL SERVICES