### March 18,2014

Carl Daly DEPARTMENT OF ENVIRONMENT and NATURAL RESOURCES
JOE FOSS BUILDING

523 EAST CAPITOL PIERRE. SOUTH DAKOTA 57501-3182 denr.sd.gov



### Environmental ProtectionAgency (EPA), Region 8 Mailcode 8P-AR 1595 Wynkoop St. Denver, Colorado 80202-1129

Dear Mr. Daly:

In an email onFebruary 25, 2014, EPA requested SouthDakota clarify three portions ofits June 14, 2010 submittal to update our state implementationplan. EPA's three questions along with the Department ofEnvironment andNatural Resources' (DENR's) response are as follows:

• EPA Question#I - General Permits: The newconstruction permitprogram contains an exemption for new sources and modifications covered under a general permit. In addition, the general permitprovisions have been revised to allow for construction for sources covered under a general permit. Can the State clarify that the State applies the standard in 74:36:04:04 to issuance ofa general permit so that the general permit will not interfere with the NAAQS or other requirements ofthe CAA? Can the State also clarify that the discretion to require an individual constructionpermit under 74:36:04:33 includ.es the circumstance that construction ofthe source might interfere withthe NAAQS?**~** 

### The Secretary ofDENR currently issues coverage under a general permitfor asphalt plants, crushers, grain elevators, concrete plants, and for construction activities on state properties inRapid City, South Dakota. The general permits are allowed to be issued under Administrative Rules ofSouthDakota (ARSD) 74:36:04:32. The general permits may only be issued ifit has been determined that they will not interfere with the attainment ormaintenance ofan applicable National Ambient Air Quality Standard as notelinARSD 74:36:04:04.**~** 

### The Secretary ofDENRissues the general permit for a five year period. The general permit goes through a process to update and renew it at which time DENR considers the National Ambient Air Quality standard along with other applicable requirements when developing the general permit. Therefore, an applicant is only authorized to construct and/or operate under the general permit ifit meets the underlyingrequirements for the general permit. Ifan applicant does notmeet the underlying requirements, it is required to apply for an air quality construction or operating permit and during this review, DENR determines ifthe applicant meets all applicable requirements before issuingthe applicable general permit.

• EPA Question #2- Exemptions: For the following exemptions, canthe Stateprovide a statement clarifying whether or not the exemptions are considered to be de minimis, and if so, what the State's basis is?

1. 74:36:04:03(6) and 74:36:20:04(6) (Routine housekeeping or plant upkeep); and 2. The portion of74:36:20:03(4) that incorporates the exemptions in 74:36:05:04 (Residential wood heaters subjectto 40 CPRPart 60, SubpartAAA, and sources/units subject to 40 CPR § 61.145).



## >- Before South Dakota adopted the requirements for an air quality constructionpermit program, the construction and operating permitprograms were combined for those facilities not required to obtain a Prevention ofSignificant Deterioration preconstruction permit. These combinedprograms were found in ARSD 74:36:04 (operating permits for minor sources) and ARSD 74:36:05 (operating permits for major sources). The minor permit program is approved in SouthDakota's State Implementation Plan.



## >- Routine housekeeping and plantupkeep have been included in SouthDakota's Title V illr quality operating program since it was approved by EPA onJanuary 29, 1996. When DENR decided to separate thetwo programs, the insignificant activity list was identified inbothprograms. Routine housekeeping and plantupkeep were not originally listed inthe combine construction and operating permit program for minor
sources because these activities are considered fugitive sources which are not regulated under the minor source program. When DENR decided to separate the construction and operating permit program, it was decided to include routine housekeeping and plant upkeep inthe minor operating permitprogram since it was included in the constructionpermitprogram so itwould not be confusing.



## >- EPA has already approved the residential wood heaters in 40 CPR Part 60, Subpart AAA and demolition and renovationin40 CPR 

### § 165 when the construction and operating permits were combined. When DENR decided to splitthe construction and operating permitprogram, it adopted the same exemptions inbothprograms since they were already approved by EPA.

• EPA Question #3- In 74:36:10 (New Source Review), the June 14,2010 submittal updated· the incorporationbyreference (IBR) date to July 1, 2009. This IBR date was updated to July 1, 2012, in South Dakota's 2013 submittal. Canthe State clarify thatthis was notintended to include provisions in 40 CPR§ 51.165 that are marked as "stayed" inthe July 1, 2012 CPR?



## >- South Dakota currently does nothave a non-attainment area and did notintend to adopt those provisions in 40 CFR 

### § 51.165 that are marked as "stayed". Therefore,South Dakota is not requesting the federal provisions 

### that are stayed be part ofits state implementationplan.

Ifyou have any questions, please feel free to contact Kyrik Rombough ofmy staffat 605-773- 3151.
Sincerely,