STAll:: OF MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY LANSING

JENNIFER M. GRANHOLM GOVERNOR
September',2008 

### RECEIVED STEVEN E. CHESTER DIRECTOR

Ms. Lynn Buhl, Regional Administrator U.S. Environmental Protection Agency Region 5 77 West Jackson Boulevard (R-19J) Chicago, Illinois 60604-3507
DearAdministrator Buhl:**~.** 

# I: OCT 0R

## 2008 AI

We are submitting the enclosed revision to Michigan's State Implementation Plan (SIP) and request your approval of the revised SIP. The submittal consists of revisions to three rules in Part 18, Prevention of Significant Deterioration (PSD) ofAir Quality, of Michigan's Air Pollution Control Rules, R 336.2801 (Rule 1801), R 336.2816, and R 336.2818. These revisions incorporate all the corrections requested in response to two Federal RegisterNotices: (1) Final Conditional Approval, 73 FR 53366; and (2) Proposed Disapproval, 73 FR 53401. These changes are necessary to obtain a full and final approval of our Part 18 PSD rules promulgated as a SIP.
The revisions consist of modifications to Rules 1801 (r)(ii), 1801(hh), and 1816 ofthe Part 18 rules at the request of the U.S. Environmental Protection Agency (EPA). The requested revision to Rule 1801 (r)(ii) adds the definition of "replacement unit" to the definition of "emissions unit" to be consistent with 40 CFR 51.166(b)(32). The requested revision to Rule 1801 (hh) further clarifies the intent ofthe rule corresponding to 40 CFR 51.166(b)(4), except instead of "federally enforceable," the state PSD rules use the term "legally enforceable and enforceable as a practical matter by the state, local air pollution control agency, or U.S. EPA." The requested revisions to Rule 1816 include changes to Rule 1816(2) through (4) so that the rules more closely comport with 40 CFR 51.166(p)(1) through (7).
An additional revision to Rule 1801 (ee), "net emissions increase," is the result of comments received during the public comment period on the same term under the Michigan Department of Environmental Quality's (MDEQ's) nonattainment New Source Review (NSR) rules. Rule 1801 (ee) was also revised to make the rule no more stringent than the federal requirement in 40 CFR 52.21

.. The revisions to Rule 1818(3) and (3)(f) were not requested, but were suggested by both the EPA and the stakeholders to implement the EPA's recently promulgated rules that clarify the "reasonable possibility" recordkeeping and reporting requirements associated IN!th the 2002 NSR**n:~fnrm rrJIF~s** 

CONSTITUTION HALL· 525 WEST ALLEGAN STREET· P.O. BOX 30473 • LANSING, MICHIGAN 48909·7973 www.michigan.gov • (800) 662·9278Ms. Lynn Buhl Page 2 September 30, 2008

We appreciate your attention to this matter. Ifyou have any questions regarding this submittal, please contact Mr. Robert Irvine, Air Quality Division, MDEQ, at 517-373-7042.

Steven

. Chester Director 517-373-7917
Enclosure cc: Ms. Cheryl Newton, EPA Region 5 Mr. John Mooney, EPA Region 5 Ms. Laura Cossa, EPA Region 5 Ms. Pam Blakley, EPA Region 5 Mr. G. Vinson Hellwig, MDEQ Mr. Robert Irvine, MDEQState ofMichigan DEPARTMENTOFENVIRONMENTAL QUALITY Protecting Michigan's Environment, Ensuring Michigan's Future
EnvironmentalAssistance Center 800-662-9278



# REVISION TO THE MICHIGAN STATE IMPLEMENTATION PLAN
FOR 

# PART 18. PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY

R336.2801, R336.2816, AND 

### R336.2818

SEPTEMBER 

### 26, 2008

PREPARED BY: MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY 

### AIR QUALITY DIVISION P.o. Box 30260

- LANSING, MI48909 PHONE: 517-373-7023

- FAX: 517-241-7499 INTERNET ADDRESS: http://www.michigan.gov/degairREVISION To THEMICHIGAN SIPFOR PART18: PREVENTIONOFSIGNIFICANTDETERIORAnONOFAIR QUALITY 

### TABLE OF CONTENTS
COMPLETENESS REVIEW PAGE Administrative Materials 1 Technical Support 2
ATTACHMENTS ATTACHMENT A: Secretary of State's Notice of Filing Administrative Rules for Part 18, dated September 11, 2008. Final form ofthe adopted rules, Part 18, with the effective date of September 11, 2008. ATTACHMENT B: August 13, 2008 Letterfrom MDEQ Director Steven E. Chesterto Ms. Norene Lind, State Office ofAdministrative Hearings and Rules (SOAHR), forwarding the MDEQ Certificate ofAdoption. The Certificate ofAdoption signed by MDEQ Director Chester, dated August 15, 2008. ATTACHMENT C: A letter dated February 22,2003, from Governor Jennifer M. Granholm to EPA Region 5 delegating authority to the Director of MDEQ. ATTACHMENT 

### 0: Certificate ofApproval from Legislative Service Bureau, dated August 6,2008. Legal Certification of Rules from SOAHR, dated August 8, 2008. Letter from SOAHR submitting rules to the Joint Committee on Administrative Rules (JCAR) for consideration, dated August 8, 2008. September 11, 2008 memo from Senator John Pappageorge, Chair, waving the remaining legislative session days. ATTACHMENT E: Agency Report, dated Apri/1, 2008. ATTACHMENT F: Opening statement by Marion Hart, Hearings Officerfor June 19, 2008, public hearing. Staff Statement by Jeff Rathbun, Chemical Process Unit ofthe Air Quality Division. ATTACHMENT G: NewspaperAffidavits of Publication from the Lansing State Journal, Oakland Press, and The Mining Journal which published the public hearing notice on May 6, 2008. Proposed rules and public hearing notice published in the Michigan Register, Issue 

### No. 8-2008, on May 15, 2008.

Table ofContents Page 2 of70REVISION To THEMICHIGAN SIP FOR PART18: PREVENTION OFSIGNIFICANTDETERIORATION OFAIR QUALITY 

### COMPLETENESS REVIEW

ADMINISTRATIVE MATERIALS
1. A formal letter of submittal from the governor or designee requesting EPA approval of the revision. Cover letterfrom Steven 

### E. Chester, Director ofthe MDEQ to Ms. Lynn Buhl, 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 adoptionlissuance date. Secretary of State's Notice of Filing Administrative Rules for Part 18, dated September 11, 2008 (Attachment A). The final form ofthe adopted rules, Part 18, with the effective date of September 11, 2008 (Attachment A). August 13, 2008 letterfrom MDEQ Director Chester to Ms. Norene Lind, SOAHR, forwarding the MDEQ Certificate ofAdoption (Attachment B). The Certificate ofAdoption signed by MDEQ Director Chester, dated August 15, 2008 (Attachment B). 3. Evidence that the state has the necessary legal authority under state law to adopt and implement the revision. A letter dated February 22,2003, from Governor Jennifer M. Granholm to EPA Region 5 delegating authority to the Director of MDEQ to make any submittal, request, or application under the Clean AirAct (Attachment C). The Legal Certification of Rules from SOAHR dated August 8,2008, certifies that the rules are within the scope ofthe authority ofthe MDEQ (Attachment D).
4. A copy of the actual regulation or document submitted for approval and incorporation by reference into the SIP, including indication ofthe changes made to the existing approved SIP, where applicable. The submittal should be a copy of the official state regulation/document signed, stamped, and dated by the appropriate state official indicating that it is fully enforceable by the state. The effective date of the regulation/document should, whenever possible, be indicated in the document itself. The Secretary of State's Notice of Filing Administrative Rules for Part 18, dated September 11, 2008 (Attachment A) The final form ofthe adopted rules, Part 18, with the effective date of September 11,2008 (Attachment A).

Completeness Review Page 3 0'70REVISION To THEMICHIGAN SIP FOR PART18: PREVENTIONOF SIGNIFICANTDETERIORATIONOFAIR QUALITY
5. Evidence that the state followed all ofthe requirements of its administrative procedures act (or equivalent) in conducting and completing the adoption/issuance ofthe revision. The Certificate ofApproval from legislative Service Bureau, dated August 6, 2008, certifies the rules as to form, classification, and arrangement, pursuant to Section 45 of 1969 Public Act 306, MCl 24.245 (Attachment D). The legal Certification of Rules from SOAHR, dated August 8,2008, certifies that the legality ofthe rules in conformity with the requirements ofthe Administrative Procedures Act, MCl 24.201 et seq. (Attachment D). The letterfrom SOAHR submitting rules to JCAR for consideration, dated August 8, 2008 (Attachment D). The September 11, 2008 memo from Senator John Pappageorge, Chair, waving the remaining legislative session days, pursuant to MCl 24.245a(1) and (2) (Attachment D). 6. Evidence that public notice was given ofthe proposed change consistent with procedures approved by EPA, including date of publication of such notice. The newspaperAffidavits of Publication from the lansing State Journal, Oakland Press, and The Mining Journal which published the public hearing notice on May 6, 2008 (Attachment G) The proposed rules and public hearing notice published in the Michigan Register, Issue No. 8-2008, on May 15, 2008 (Attachment G). 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 Opening Statement and Staff Statement for the June 19, 2008 public hearing includes information on the notice of public hearing and instructions on how the hearing was to be conducted (Attachment F).

, The legal Certification of Rules from SOAHR dated August 8,2008, certifies that

the rules are in conformity with the requirements ofthe Administrative Procedures Act, MCl 24.201 et seq. (Attachment D). 8. Compilation of public comments and state's response thereto. There were no comments received. Information is located in Section 11 ofthe Agency Report (Attachment E).
TECHNICAL SUPPORT 1. Justification of rules revisions. The Agency Report's Section 2, "Purpose ofthe Proposed Rules and Background," and Section 3, "Summary of Proposed Rules," provides the purpose and justification ofthe proposed rules (Attachment E).

Completeness Review Page4 of 70REVISION To THEMICHIGAN SIP FOR PART18: PREVENTION OFSIGNIFICANTDETERIORATION OFAIR QUALITY



# ATTACHMENT A:

SECRETARY OF STATE'S NOTICE OF FILING ADMINISTRATIVE RULES FOR PART 

# 18, DATED SEPTEMBER 

# 11, 2008.

FINAL FORM OF THE ADOPTED RULES, PART 

# 18, WITH THE EFFECTIVE DATE OF SEPTEMBER 

# 11, 2008.

AttachmentA Page 50f70Revision

# to the Michigan StP forPart18:

# IonofSignificantDeterioration

# ofAirQuality

STATE OF MICHIGAN TERRI LYNN LAND, SECRETARY OF STATE DEPARTMENT OF STATE LANSING

September 11, 2008



### NOTICE OFFILING ADMINISTRATIVE RULES

To: Secretaryofthe Senate Clerkofthe House ofRepresentatives JointCommittee on AdministrativeRules State Office ofAdministrativeHearings andRules (08-09-02) Legislative Service Bureau (2007-017-EQ) DepartmentofEnvironmental Quality



### In accordancewith theprovisions ofSection46(1) ofAct 306, Publi-c Acts of 1969, as amended, andExecutive Order 1995-6 this is to adviseyouthatthe Michigan DepartmentofLabor and Economic Growth, State Office ofAdministrative Hearings andRules filed at 3:42 P.M. this date, administrative rule (08-09-02) fortheDepartmentofEnvironmental Quality "Part 18. Prevention ofSignificantDeterioration of.A.ir;.Quality';.
i Tliis rulebecomes effectiveimmediatelyupon filing withthe SecretaryofStateunless adopted under sections 33,44, 45a(6), or48 of1969 PA 306. Rules adopted underthese sections become effective 7 days afterfiling withthe Secretary ofState. Sincerely,
Terri LynnLand

# R~~~\1L~~~ Robin Houston, Office Supervisor Office ofthe Great Seal
Enclosure

OFFICE OF THE GREAT SEAL 108 SOUTH WASHINGTON saUARE. SUITE 1· LANSING, MICHIGAN 48918 1·888·S0S·MICH (1-888·767-6424) www.Michigan.gov/sos AttachmentA Page 6 of70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality



### DEPARTMENT OF ENVIRONMENTAL QUALITY
AIR QUALITY DIVISION
AIR POllUTION CONTROL

Filed with the Secretary of State on September 11, 2008 These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6) of 1969 PA 306. Rules adopted under these sections become effective 7 days afterfiling with the Secretary of State. (By authority conferred on the director ofthe department of environmental quality by sections 5503,5505(4), and 5512 of 1994 PA 451, MCl 324.5503,324.5505(4), and 324.5512, and Executive Reorganization Order No. 1995-18, MCl 324.99903)

R 336.2801, R 336.2816, and R 336.2818, ofthe Michigan Administrative Code are amended as follows:

PART 18. PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY
R 336.2801 Definitions.

Rule 1801. The following definitions apply to terms used in this part. Ifa term defined in this part is also defined elsewhere in the rules, then the definition 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 determined under R 336.1101 (b), except that this definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a plantwide applicability limit under R 336.2823. 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 determined by the following:

(i) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons peryear, 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 ofthe project. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. All ofthe following provisions apply:

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

4/21/2008 AttachmentA Page 70f70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality -2-
(8) 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.

(C) For a regulated new source review pollutant, if a project involves multiple emissions units, then 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)(8) ofthis subdivision.

(ii) For an existing emissions unit, other than an electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 1O-year period immediately preceding either the date the owner or operator begins actual construction ofthe project, or the date a complete permit application is received by the department for a permit required by R 336.1201, whichever is earlier, except that the 10-year period shall not include any period earlier than November 15, 1990. All ofthe following provisions apply:

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

(8) 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.

(C) The average rate shall be adjusted downward to exclude emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such 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 ifthe state has taken credit for such emissions reductions in an attainment demonstration or maintenance plan submitted to the U.S. environmental protection agency. The provisions of40 C.F.R. part 63 are adopted by reference in R 336.2801a.

(D) For a regulated new source review pollutant, if a project involves multiple emissions units, then 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 (8) and (C) ofthis 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

AttachmentA Page 8 of70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality 

### -3-
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 stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units under paragraph (i) ofthis subdivision, for other existing emissions units under paragraph (ii) ofthis subdivision, and for a new emissions unit under paragraph (iii) of this subdivision.

(c) "Baseline area" means all ofthe following: (i) Any intrastate area, and every part thereof, designated as attainment or unclassifiable under section 107(d)(1) 

### (0) or (E) ofthe clean air act in which the major source or major modification establishing the minor source baseline date would construct or would have an air quality impact equal to or greaterthan 1 microgram per cubic meter (annual average) ofthe pollutant for which the minor source baseline date is established.

(ii) Area redesignations under section 107(d)(1) (0) or (E) ofthe clean air act shall not intersect or be smaller than the area of impact of any major stationary source or major modification which does either ofthe following:

(A) Establishes a minor source baseline date. (B) Is subject to PSO regulations or new source review for major sources in nonattainment areas regulations.

(iii) Any baseline area established originally for the total suspended particulates increments shall remain in effect and shall apply for purposes of determining the amount of available PM-10 increments, except that the baseline area shall not remain in effect ifthe department rescinds the corresponding minor source baseline date under subdivision (bb)(iv) ofthis rule.

(d) "Baseline concentration" means the value derived using the following procedures:

(i) The ambient concentration level that exists in the baseline area at the time of the applicable minor source baseline date. A baseline concentration is determined for each pollutant for which a minor source baseline date is established and shall include both ofthe following:

(A) The actual emissions representative of sources in existence on the applicable minor source baseline date.

(B) The allowable emissions of major stationary sources that commenced construction before the major source baseline date, but were not in operation by the applicable minor source baseline date.

(ii) The following shall not be included in the baseline concentration and shall affect the applicable maximum allowable increase:

(A) Actual emissions from any major stationary source on which construction commenced afterthe major source baseline date.

(B) Actual emissions increases and decreases at any stationary source occurring afterthe minor source baseline date.

(e) "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 underground pipework, and construction of permanent storage

AttachmentA Page 9 of 70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality 

### -4-

structures. "A change in method of operation" refers to those on-site activities, other than preparatory activities, which mark the initiation ofthe change.

(f) "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 combination techniques for control of the 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. parts 60 and 61, adopted by reference in R 336.2801 a. Ifthe 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 best available control technology. 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.

(g) "Building, structure, facility, or installation" means all ofthe pollutant-emitting activities which belong to the same industrial grouping, are located on 1 or more contiguous or adjacent properties, and are under the control ofthe same person, or persons under common control, except the activities of any vessel. Pollutantemitting activities are part ofthe same industrial grouping ifthey have the same 2- digit major group code associated with their primary activity. Major group codes and primary activities are described in the standard industrial classification manual, 1987. For assistance in converting north American industrial classification system codes to standard industrial classification codes see http://www.census.gov/epcd/naics02/.

(h) "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 of November 15, 1990.

(i) "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 ofthe demonstration project.

U) [Reserved]

AttachmentA Page 10 of70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality -5-
(k) "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 done either ofthe following:

(i) Begun, or caused to begin, a continuous program of actual on-site construction ofthe source, to be completed within a reasonable time.

(ii) Entered into binding agreements or contractual obligations, which cannot be canceled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time.

(I) "Complete" means, in reference to an application for a permit, that the applica,tion contains all the information necessary for processing the application. Designating an application complete for purposes of permit processing does not preclude the department from requesting or accepting additional information.

(m) "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.

(n) "Continuous emissions monitoring system" or "CEMS" means all of the equipment that may be required to meet the data acquisition and availability requirements ofthese rules, to sample, condition if applicable, analyze, and provide a record of emissions on a continuous basis.

(0) "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 oftime.

(p) "Continuous parameter monitoring system" or "CPMS" means all ofthe equipment necessary to meet the data acquisition and availability requirements of these rules, to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide concentrations), and to record average operational parameter value or values on a continuous basis.

(q) "Electric utility steam generating unit" means any steam electric generating unit that is constructed for supplying more than 1/3 of its potential electric output capacity and more than 25 megawatt electrical output to any utility power distribution system for sale. Steam supplied to a steam distribution system for providing steam to a steam-electric generator that would produce electrical energy for sale is also considered in determining the electrical energy output capacity ofthe affected facility.

(r) "Emissions unit" means any part of a stationary source that emits or would have the potential to emit any regulated new source review pollutant and includes an electric utility steam generating unit. Both ofthe following are types of emissions units:

(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

AttachmentA Page 11 of70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality 

### -6-
existing emissions unit that is replaced. A replacement unit shall meet all ofthe following criteria:

(A) The emissions unit is a reconstructed unit ifthe replacement of components of an existing facility is to such an extent that the fixed capital cost ofthe new components exceeds 50% ofthe fixed capital cost that would be required to construct a comparable entirely new facility or the emissions unit completely takes the place of an existing emissions unit.

(8) The emissions unit is identical to orfunctionally equivalent to the replaced emissions unit.

(C) The replacement does not alter the basic design parameters ofthe process unit.

(0) 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. Ifthe replaced emissions unit is brought back into operation, it shall constitute a new emissions unit.

(s) "Federal land manager" means, with respect to any lands in the United States, the secretary ofthe department with authority over such lands.

(t) "High terrain" means an area having an elevation 900 feet or more above the base ofthe stack of a source.

(u) "Hydrocarbon combustion flare" means either a flare used to comply with an applicable new source performance standard or maximum achievable control technology standard, including uses offlares during startup, shutdown, or malfunction permitted under such a standard, or a flare that serves to control emissions ofwaste streams comprised predominately of hydrocarbons and containing not more than 230 milligrams per dry standard cubic meter hydrogen sulfide.

(v) "Indian reservation" means any federally recognized reservation established by treaty, agreement, executive order, or act of congress.

(w) "Indian governing body" means the governing body of any tribe, band, or group of Indians subject to the jurisdiction ofthe United States and recognized by the United States as possessing power of self-government.

(x) "Innovative control technology" means any system of air pollution control that has not been adequately demonstrated in practice, but may have a substantial likelihood of achieving greater continuous emissions reduction than any control system in current practice or of achieving at least comparable reductions at lower cost in terms of energy, economics, or non-air quality environmental impacts.

(y) "Low terrain" means any area other than high terrain. (z) "Lowest achievable emission rate" or "LAER", for any source, means the more stringent rate of emissions based on R 336.1112(f).

(aa) "Major modification" means any ofthe following: (i) Physical change in or change in the method of operation of a major stationary source that would result in both ofthe following:

(A) A significant emissions increase of a regulated new source review pollutant. (8) A significant net emissions increase ofthat pollutant from the major stationary source.

AttachmentA Page 12 of 70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality -7-
(ii) A 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 considered significant for ozone.

(iii) Physical change or change in the method of operation shall not include any of the following:

(A) Routine maintenance, repair, and replacement. (8) Use of an alternative fuel or raw material by reason of any order under section 2(a) and (b) ofthe Energy Supply and Environmental Coordination Act of 1974 or by reason of a natural gas curtailment plan underthe Federal PowerAct.

(C) Use of an alternative fuel by reason of an order or rule under section 125 ofthe clean air act.

(0) 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 ofthe following:

(1) The source was capable of accommodating before January 6, 1975, unless such change would be prohibited under any federally enforceable permit condition which was established after January 6, 1975, under PSO regulations or R 336.1201(1)(a).

(2) The source is approved to use under any permit issued under PSO regulations or under R 336.1201(1)(a).

(F) An increase in the hours of operation or in the production rate, unless the change would be prohibited under any federally enforceable permit condition which was established after January 6, 1975, under PSO regulations or R 336.1201(1)(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 ofthe following:

(1) The state implementation plan. (2) Other requirements necessary to attain and maintain the national ambient air quality standards during the project and afterthe project is terminated.

(J) The installation or operation of a permanent clean coal technology demonstration project that constitutes repowering, provided that the project does not result in an increase in the potential to emit of any regulated pollutant emitted by the unit. This exemption shall apply on a pollutant-by-pollutant basis.

(K) The reactivation of a very clean coal-fired electric utility steam generating unit. (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 for an actuals PAL for that pollutant. Instead, the definition of PAL major modification in R 336.2823 shall apply.

(bb) All ofthe following apply to major and minor source baseline dates: (i) "Major source baseline date" means both ofthe following: (A) January 6, 1975, for particulate matter and sulfur dioxide. (8) February 8, 1988, for nitrogen dioxide.

AttachmentA Page 13 of70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality -8-


### (ii) "Minor source baseline date" means the earliest date afterthe trigger date on which a major stationary source or a major modification subject to PSO regulations submits a complete application underthe relevant regulations. The trigger date is both ofthe following:

(A) August 7, 1977, for particulate matter and sulfur dioxide. (B) February 8, 1988, for nitrogen dioxide. (iii) The baseline date is established for each pollutant for which increments or other equivalent measures have been established if both ofthe following occur:

(A) The area in which the proposed source or modification would construct is designated as attainment or unclassifiable under section 107(d)(i) (0) 

### or (E) ofthe clean air act for the pollutant on the date of its complete application under R 336.1201 and PSO regulations.

(B) If a major stationary source, the pollutant would be emitted in significant amounts, or, if a major modification, there would be a significant net emissions increase ofthe pollutant.

(iv) Any minor source baseline date established originally for the total suspended particulates increments shall remain in effect and shall apply for determining the amount of available PM-10 increments, except that the department may rescind any minor source baseline date where it can be shown, to the satisfaction ofthe department, that the emissions increase from the major stationary source, or the net emissions increase from the major modification, responsible for triggering that date did not result in a significant amount of PM-1 0 emissions.

(cc) "Major stationary source" means any ofthe following: (i) Any ofthe following stationary sources of air pollutants which emits, or has the potential to emit, 100 tons per year or more of a regulated new source review pollutant:

(A) Fossil fuel-fired steam electric plants of more than 250 million British thermal units per hour heat input.

(B) Coal cleaning plants with thermal dryers. (C) Kraft pulp mills. (0) 

### Portland cement plants. (E) Primary zinc smelters. (F) Iron and steel mill plants. (G) Primary aluminum ore reduction plants. (H) Primary copper smelters. (I) Municipal incinerators capable of charging more than 250 tons of refuse per day.

(J) 

### Hydrofluoric, sulfuric, and nitric acid plants. (K) Petroleum refineries. (L) Lime plants. (M) Phosphate rock processing plants. (N) Coke oven batteries. (0) 

### Sulfur recovery plants. (P) Carbon black plants (furnace process). (Q) 

### Primary lead smelters. (R) Fuel conversion plants.

AttachmentA Page 14 of 70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality 

### -9-
(S) Sintering plants. (T) Secondary metal production plants. (U) Chemical process plants. (V) Fossil fuel boilers, or combinations thereof, totaling more than 250 million British thermal units per hour heat input.

(W) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels.

(X) Taconite ore processing plants. (Y) Glass fiber processing plants. (Z) Charcoal production plants. (ii) Any stationary source not listed in the previous subdivision which emits, or has the potential to emit, 250 tons peryear or more of a regulated new source review pollutant.

(iii) Any physical change that would occur at a stationary source not otherwise qualifying under subdivision (cc) ofthis subrule, as a major stationary source ifthe change would constitute a major stationary source by itself.

(iv) A major source that is major for volatile organic compounds shall be considered major for ozone.

(v) The fugitive emissions of a stationary source shall not be included in determining, for any of the purposes ofthis rule, whether it is a major stationary source, unless the source belongs to 1 ofthe categories of stationary sources listed is paragraph (i) of this subdivision.

(dd) "Necessary preconstruction approvals or permits" means a permit issued under R 336.1201(1)(a) that is required by R 336.2801 to R 336.2819, R 336.2823, and R 336.2830 or R 336.1220.

(ee) "Net emissions increase" means all ofthe following: (i) For any regulated new source review pollutant emitted by a major stationary source, the amount by which the sum ofthe following exceeds zero:

(A) The increase in emissions from a particular physical change or change in the method of operation at a stationary source as calculated under R 336.2802(4).

(B) Any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases under this paragraph shall be determined as provided in the definition of baseline actual emissions, except that paragraphs (b)(i)(C) and (b)(ii)(D) ofthis rule shall not apply.

(ii) An increase or decrease in actual emissions is contemporaneous with the increase from the particular change only if it occurs between the following:

(A) The date 5 years before construction on the particular change commences. (B) The date that the increase from the particular change occurs. (iii) An increase or decrease in actual emissions is creditable only ifthe department has not relied on it in issuing a permit under R 336.1201(1)(a) or R 336.1214a, which permit is in effect when the increase in actual emissions from the particular change occurs.

(iv) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, or oxides of nitrogen that occurs before the applicable minor source baseline

AttachmentA Page 15 of70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality -10-

date is creditable only if it is required in calculating the amount of maximum allowable increases remaining available.

(v) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level.

(vi) A decrease in actual emissions is creditable only to the extent that it meets all ofthe following criteria:

(A) The old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions.

(8) It is enforceable as a practical matter at and after the time that actual construction on the particular change begins.

(C) It has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change.

(vii) 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. A replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days.

(viii) 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 ofthe terms "projected actual emissions" and "baseline emissions" shall be used.



### (ff) [Reserved] (gg) "Pollution prevention" means any activity that through process changes, product reformulation or redesign, or substitution of less polluting raw materials, eliminates or reduces the release of air pollutants, including fugitive emissions, and other pollutants to the environment before recycling, treatment, or disposal. Pollution prevention does not mean recycling, other than certain "in-process recycling" practices, energy recovery, treatment, or disposal.

(hh) "Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. A physical or operational limitation on the capacity ofthe source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design ifthe limitation or the effect it would have on emissions is legally enforceable and enforceable as a practical matter by the state, local air pollution control agency, or United States environmental protection agency. Secondary emissions do not count in determining the potential to emit of a stationary source.

(ii) "Predictive emissions monitoring system" or "PEMS" means all ofthe equipment necessary to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide concentrations), and calculate and record the mass emissions rate (for example, pounds per hour) on a continuous basis.



## Uj) "Prevention of significant deterioration" or "PSO" program means the major source preconstruction permit program required by 40 C.F.R. §52.21, adopted by reference in R 336.2801 a, or R 336.2801 to R 336.2819, R 336.2823 and R 336.2830. A permit issued under this program is a major NSR permit.

AttachmentA Page 16 of 70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality -11-
(kk) "Project" means a physical change in, or change in method of operation of, an existing major stationary source.

(II) "Projected actual emissions" means all ofthe following: (i) The maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated new source review pollutant in any 1 ofthe 5 years (12-month period) following the date the unit resumes regular operation after the project, or in any 1 ofthe 10 years following that date, ifthe project involves increasing the emissions unit's design capacity or its potential to emit that regulated new source review pollutant, and full utilization ofthe 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 ofthe major stationary source shall do all ofthe 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 underthe state implementation plan.

(8) 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 and that are also unrelated to the particular project, including any increased utilization due to product demand growth.

(iii) The owner or operator of a major stationary source may use the emissions unit's potential to emit, in tons per year, instead of calculating projected actual emissions.

(mm) "Reactivation of a very clean coal-fired electric utility steam generating unit" means any physical change or change in the method of operation associated with the commencement of commercial operations by a coal-fired utility unit after a period ofdiscontinued operation where the unit meets all of the following criteria:

(i) The unit was not in operation for the 2-year period before the enactment of the clean air act amendments of 1990, and the emissions from the unit continue to be carried in the department's emissions inventory at the time of enactment.

(ii) The unit was equipped before shutdown with a continuous system of emissions control that achieves a removal efficiency for sulfur dioxide of not less than 85% and a removal efficiency for particulates of not less than 98%.

(iii) The unit was equipped with low-oxides of nitrogen burners before the time of commencement of operations following reactivation.

(iv) The unit otherwise complies with the requirements ofthe clean air act. (nn) "Regulated new source review pollutant," for purposes ofthis rule, means all ofthe following:

(i) A pollutant for which a national ambient air quality standard has been promulgated and any constituents or precursors for the pollutants identified by the

AttachmentA Page 17 of70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality -12-

United States environmental protection agency. For example, volatile organic compounds are precursors for ozone.

(ii) A pollutant that is subject to any standard promulgated under section 111 ofthe clean air act.

(iii) A class I or II substance subject to a standard promulgated under or established by title VI of the clean air act.

(iv) A pollutant that otherwise is subject to regulation under the clean air act; except that any or all hazardous air pollutants either listed in section 112 ofthe clean air act or added to the list under section 112(b)(2) ofthe clean air act, which have not been delisted under section 112(b)(3) ofthe clean air act, are not regulated new source review pollutants unless the listed hazardous air pollutant is also regulated as a constituent or precursor of a general pollutant listed under section 108 ofthe clean air act.

(00) "Repowering" means all ofthe following: (i) Replacement of an existing coal-fired boiler with 1 of the following clean coal technologies:

(A) Atmospheric or pressurized fluidized bed combustion. (8) Integrated gasification combined cycle. (C) Magneto hydrodynamics. (D) Direct and indirect coal-fired turbines. (E) Integrated gasification fuel cells. (F) A derivative of 1 or more ofthese technologies, and any other technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance oftechnology in widespread commercial use as of November 15, 1990, as determined by the United States environmental protection agency, in consultation with the Secretary of Energy.

(ii) Repowering shall also include any oil and/or gas-fired unit which has been awarded clean coal technology demonstration funding as of January 1, 1991, by the United States Department of Energy.

(iii) The department shall give expedited consideration to permit applications for any source that satisfies the definition of repowering and is granted an extension under section 409 ofthe clean air act.

(pp) "Secondary emissions" means emissions which occur as a result ofthe 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 this rule, secondary emissions shall be specific, well defined, quantifiable, and impact the same general areas the stationary source modification which causes the secondary emissions. Secondary emissions include emissions from any offsite support facility which 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 which come directly from a mobile source, such as emissions from the tailpipe of a motor vehicle, from a train, or from a vessel.

(qq) "Significant" means:

AttachmentA Page 18 of70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality -13-
(i) 

### In reference to a net emissions increase orthe potential of a source to emit any ofthe following pollutants, a rate of emissions that would equal or exceed any ofthe following pollutant emission rates:

(A) Carbon monoxide: 100 tons per year. (B) Oxides of nitrogen: 40 tons peryear. (C) Sulfur dioxide: 40 tons per year. (0) 

### Particulate matter: 25 tons peryear of particulate matter emissions; 15 tons peryear of PM-1 0 emissions.

(E) Ozone: 40 tons per year ofvolatile organic compounds. (F) Lead: 0.6 tons per year. (G) Fluorides: 3 tons per year. (H) Sulfuric acid mist: 7 tons per year. (I) Hydrogen sulfide: 10 tons peryear. (J) 

### Total reduced sulfur, including hydrogen sulfide: 10 tons peryear. (K) Reduced sulfur compounds, including hydrogen sulfide: 10 tons peryear. (L) Municipal waste combustor organics, measured as total tetra- through octachlorinated dibenzo-p-dioxins and dibenzofurans: 3.2 x 

### 10-6 megagrams peryear or 3.5 x 

### 10-6 tons per year.

(M) Municipal waste combustor metals, measured as particulate matter: 14 megagrams peryear or 15 tons peryear.

(N) Municipal waste combustor acid gases, measured as sulfur dioxide and hydrogen chloride: 36 megagrams peryear or40 tons per year.

(0) 

### Municipal solid waste landfill emissions, measured as nonmethane organic compounds: 45 megagrams peryear or 50 tons peryear.

(ii) 

### In reference to a net emissions increase or the potential of a source to emit a regulated new source review pollutant not listed in this definition, any emissions rate.

(iii) Any emissions rate or any net emissions increase associated with a major stationary source or major modification, which would construct within 10 kilometers of a class I area, and have an impact on such area equal to or greaterthan 1 microgram per cubic meter (24-hour average).

(rr) "Significant emissions increase" means, for a regulated new source review pollutant, an increase in emissions that is significant for that pollutant.

(ss) "Stationary source" means any building, structure, facility, or installation which emits or may emit a regulated new source review pollutant.

(tt) "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 which complies with the state implementation plan and other requirements necessary to attain and maintain the national ambient air quality standards during and afterthe project is terminated.
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 ofthe permit.

AttachmentA Page 19 of 70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality 

### -14-
(2) Ifthe proposed major stationary source or major modification affects a federal class 1 area, the department shall not approve the permit application ifthe department concurs with a demonstration provided by the federal land manager that the emissions from the proposed major source or major modification would have an adverse impact on the air quality related values of class Ilands,inciuding 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.

(3) Ifthe 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 1 ofthe following occurs:

(a) The applicant submits a written certification that the applicant has demonstrated to the federal land managerthat 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-10, 24-hour maximum 30 Sulfur dioxide:

Annual arithmetic mean 20 24-hour maximum 91 3-hour maximum 325 Nitrogen dioxide:

Annual arithmetic mean 25 (b) Ifthe department cannot approve the permit application under R 336.2816(3)(a) due to sulfur dioxide emissions resulting in increases greaterthan 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 managerthat 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, and that both the governor and the federal land

AttachmentA Paqe 20 of 70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality -15-



### manager have granted a sulfur dioxide variance for the federal class I area on which variance the public has received notice and opportunity for public hearing.

(c) Ifthe department cannot approve the permit application under R 336.2816(3)(a) due to sulfur dioxide emissions resulting in increases greaterthan those specified in Table 183 for periods of 24 hours or less, and the department cannot approve the permit application under R 336.2816(3)(b) because the federal land manager does not concurwith the governor's issuance of a sulfur dioxide variance that is otherwise consistent with R 336.2816(3)(b), the applicant may obtain approval by providing a written certification that the applicant has demonstrated to the president that a sulfur dioxide variance is in the national interest and the president concurs with the issuance ofthe sulfur dioxide variance by the governor.

(4) The department will not issue a permit affecting a class I area in which a sulfur dioxide variance was granted under R 336.2816(3)(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
Maximum Allowable Increase Period of exposure (micrograms per cubic meter) Terrain areas Low High 24-hour maximum 36 62 3-hour maximum 130 221


### R 336.2818 Source obligation.

Rule 1818. (1) Approval to construct shall not relieve an owner or operator ofthe responsibility to comply fully with applicable provisions ofthe state implementation plan and any other requirements under local, state, or federal law.

(2) If a particular major source or major modification becomes a major stationary source or major modification solely by virtue of a relaxation in any enforceable limitation which was established afterAugust 7, 1980, on the capacity ofthe major source or major modification otherwise to emit a pollutant, such as a restriction on hours of operation, then the requirements of R 336.2810 to R 336.2819 shall apply to the major source or major modification as though construction had not yet commenced on the major source or major modification.

(3) All ofthe following provisions apply to any regulated new source review pollutant emitted from projects at existing emissions units at a major stationary source, other than projects at a major source with a plantwide applicability limit, where there is a reasonable possibility, as defined in R 336.2818(3)(f), that a project

AttachmentA Page 21 of 70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality -16-

that is not a part of a major modification may result in a significant emissions increase of such pollutant, and the owner or operator elects to use the method specified in R 336.2801 (1I)(ii)(A) to (C) for calculating projected actual emissions:

(a) Before beginning actual construction ofthe project, the owner or operator shall document and maintain a record of all ofthe following information:

(i) A description ofthe project. (ii) Identification ofthe emissions unit or units whose emissions of a regulated new major source review pollutant may be affected by the project.

(iii) A description ofthe applicability test used to determine that the project is not a major modification for any regulated new source review pollutant, including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded under R 336.2801 (1I)(ii)(C) and an explanation for why such amount was excluded, and any netting calculations, if applicable.

(b) Ifthe emissions unit is an existing electric utility steam generating unit, then before beginning actual construction, the owner or operator shall provide a copy of the information required by subdivision (a) ofthis subrule to the department. This subdivision does not require the owner or operator ofthe unit to obtain any determination from the department before beginning actual construction.

(c) The owner or operator shall monitorthe emissions of a regulated new source review pollutant that could increase as a result ofthe project and that is emitted by any emissions unit identified in subdivision (a)(ii) ofthis subrule; and calculate and maintain a record ofthe annual emissions, in tons per year on a calendar year basis, for a period of 5 years following resumption of regular operations after the change, or for a period of 10 years following resumption of regular operations after the change ifthe project increases the design capacity or potential to emit ofthat regulated new major source review pollutant at the emissions unit.

(d) Ifthe unit is an existing electric utility steam generating unit, then the owner or operator shall submit a report to the department within 60 days after the end of each year during which records are generated under subdivision (c) ofthis subrule setting out the unit's annual emissions during the calendar year before submission ofthe report.

(e) Ifthe unit is an existing unit other than an electric utility steam generating unit, then the owner or operator shall submit a report to the department ifthe annual emissions, in tons per year, from the project exceed the baseline actual emissions by a significant amount for that regulated new source review pollutant, and if such emissions differfrom the preconstruction projection. The owner or operator shall submit the report to the department within 60 days after the end of such year. The report shall contain all ofthe following:

(i) The name, address, and telephone number ofthe major stationary source. (ii) The annual emissions as calculated under subdivision (c) ofthis subrule. (iii) Any other information that the owner or operator wishes to include in the report; for example, an explanation as to why the emissions differfrom the preconstruction projection.

(f) A reasonable possibility occurs when the owner or operator calculates the project to result in either ofthe following:

AttachmentA Page 22 of 70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality -17-
(i) A projected actual emissions increase of at least 50% ofthe amount that is a significant emissions increase, as defined in R 336.2801 (rr), without reference to the amount that is a significant net emissions increase for the regulated new source review pollutant.

(ii) A projected actual emissions increase that, added to the amount of emissions excluded under R 336.2801 (1I)(ii)(C), sums to at least 50% ofthe amount that is a significant emissions increase, as defined in R 336.2801 (rr), without reference to the amount that is a significant net emissions increase for the regulated new source review pollutant. For a project for which a reasonable possibility occurs only within the meaning of R 336.2818(3)(f)(ii), and not also within the meaning of R 336.2818(3)(f)(i), then the provisions of R 336.2818(3)(b) to (e) do not apply to the project.

(4) The owner or operator ofthe major source shall make the information required to be documented and maintained underthis rule available for review upon request for inspection by the department or the general public under MCl 324.5516(2).

AttachmentA Page 23 of 70REVISION To THEMICHIGAN SIPFOR PART18: PREVENTIONOF SIGNIFICANTDETERIORATIONOFAIR QUALITY:



# ATTACHMENT 

# B:

AUGUST 

## 13, 2008 LETTER FROM MDEQ DIRECTOR STEVEN E. CHESTER TO Ms. NORENE LIND, SOAHR, FORWARDING THE MDEQ CERTIFICATE OF ADOPTION.

THE CERTIFICATE OF ADOPTION SIGNED BY MDEQ DIRECTOR CHESTER, DATED AUGUST 

## 15, 2008.

AttachmentB Page 24 0(70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality**ti~rr** S-rATF OF MICHIGAN 

# D
DEPARTMENT OF

### E~A~~N~NMENTAL QUALITY 

# DEii:\

JENNIFER M. GRANHOLM GOVERNOR August 13, 2008 STEVEN E. CHESTER DIRECTOR

Ms, Norene Lind, Administrative Rules Manager State Office of Administrative Hearings and Rules Department of Labor and Economic Growth Ottawa Building

- Fourth Floor 611 West Ottawa Lansing, Michigan 48933-1070 Dear Ms. Lind: SUBJECT: Certificate ofAdoption for Administrative Rules Promulgated Pursuant to Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as Amended (Act 451), SOAHR 2007-017EQ The Certificate ofAdoption forthe administrative rules promulgated pursuantto Part 55 of Act 451 is being forwarded to you, along with a reference copy ofthe 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" These rules are being proposed to address deficiencies noted bythe U,S" Environmental Protection Agency (EPA) in their December2007 conditional approval ofthe Department of Environmental Quality's original Michigan State Implementation Plan (SIP) submitted to EPA in July of 2007, The revisions to Part 18 are being proposed to meet the requirements ofthe EPA forthe Prevention of Significant Deterioration SIP, The rules were certified bythe Legislative Service Bureau on August 6, 2008, and were formally approved by your office on August 8, 2008" The rules were delivered to the Joint Committee on Administrative Rules on August 8, 2008. Ifyou have questions or comments regarding the rule changes, please contact Ms" Susan Maul, Acting Regulatory Reform Officer, at 517-241-1552, or you may contact me,

Steven E, Chester Director 517-373-7917 Enclosures cc: Mr. Jim Sygo, Deputy Director, DEQ Mr. G, Vinson Hellwig, DEQ Ms, Susan Maul, Acting Regulatory Reform Officer, DEQ Ms. Sheila Blais, DEQ Mr" Jeffrey Rathbun, DEQ 

### celene: AQD, SOAHR 2007-017EQ File

CONSTITUTION HALL· 525 WEST ALLEGAN STREET· PO BOX 30473 • LANSING MICHIGAN 48909-7973 www michigan gOI/

.. (800) 662-9278 Attar-hmfmtB Page 25 of70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality**"~**

# . J\... STATF Of MICllIGJ\N**.~:.~** ".. 

# »**~>** 

### 'J DEPARTMENT OF ENVIRONMENTAL QUALITY \} LANSING

# DE~ 

# -d:

JENNIFER M. GRANHOLM GOVERNOR



### CERTIFICATE OF ADOPTION STEVEN E CHESTER DIRECTOR



### I, Steven 

### E. Chester, Director ofthe Department of Environmental Quality, do formally adopt the attached administrative rules by amending R 336.2801, R 336.2816, and R 336.2818 ofthe Michigan Administrative Code"
These rules are adopted pursuant to Sections 5503 and 5512 of Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended, and Executive Order 1995-18"

SOAHR 2007-017EQ

CONSTITUTION HAll- 525 WEST ALLEGAN STREET· P.O. BOX 30473

- LANSING MICHIGAN 48909-7973 www michigan gOY • (800) 662-9278 AttachmentB Page 26 of70REVISION To THEMICHIGAN SIPFOR PART18: PREVENTIONOF SIGNIFICANTDETERIORATIONOFAIR QUALITY:



# ATTACHMENT 

# C:

A LETTER DATED FEBRUARY 

## 22, 2003, FROM GOVERNOR JENNIFER M. GRANHOLM TO EPA REGION 

## 5

DELEGATING AUTHORITY TO THE DIRECTOR OF MDEQ.

AttachmentC Page 270(70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality

STATE OF MICHIGAN OFFICE OF THE GOVl!:RNOF!

JENNIFERM. GRANHOLM
GOIIERNOA February 22, 2003



### Mr. Thomas V.**Skinn~r,** Regional Administrator U.S. Environmental Protection Agency Region 5 77 WestJackson Boulevard (R-19J) Chicago. illinois 60604-3507
DearMr. Skinner: .'

AttachmentC The federal Clean AirAct (CAA) requires Michigan to submit revisions to the StateImplementation Plan. It also provides an opportUnity for the state to request delegations andmake grant applications to fund airqualityprograms.
I hereby delegate my authority to make any submittal, request, or application underthe CAA to DirectorStevenE. Chesterofthe Michigan Department of Environmental Quality (1vIDEQ). This delegation was effective on January 1,2003. Sincerely,

cc: Mr. Steven

### :E;. Chester. birector, MDEQ 

### Mr. Stanley

### F. Pruss, DeputyDirector,MDEQ



# C1' ,,_U,c.o-**",e,c~(o** h"ttl
Page 28 of 70REVISION To THEMICHIGAN SIPFOR PART18: PREVENTIONOF SIGNIFICANTDETERIORA TlON OFAIR QUALITY:



# ATTACHMENT 

# D:

CERTIFICATE OF ApPROVAL FROM

LEGISLATIVE SERVICE BUREAU, DATED AUGUST 

## 6, 2008.

LEGAL CERTIFICATION OF RULES FROM SOAHR, DATED AUGUST 

## 8, 2008.

LETTER FROM SOAHR SUBMITTING RULES TO JCAR FOR CONSIDERATION, DATED AUGUST 

## 8, 2008.

SEPTEMBER 

## 11, 2008 MEMO FROM SENATOR JOHN PAPPAGEORGE, CHAIR, WAVING THE REMAINING LEGISLATIVE SESSION DAYS.

AttachmentD Page 29 0'70**I.iZJ\lU~1** \1\), 

### o

8/1

### ~~tPJio~EFo l'Ne 2Micflt§aiN;tP%r'd

## P 

# :it**f§!'"Prev~~FfoW1>f** SignificantDeterioration ofAirQuality 

### THIS COpyTO BE FILE[) 

### WITH SECRETARY OFSTATE



### . EGISLAT1VE

ERVICE



### REAU'

Since 1941



### ..........
_ ....--CERTIFICA'f-E-·QF·APPROVALu. LegalDivision John C. Bollman. Director



### IherebycertifythattheLegislativeServiceBureauhas examinedthe attached**proposed'r~reso1** 

# th(;·Depa.rt.ment**-oiE~vironmental** 

### Quality, datedApril

.. 21,2008, amending R336.2801, R336.2816, andR336.2818 ofthe Department's 

## rules entitled**~(Air** 

### PollutionControl," 

## andfurther certifythat, pursuant

## to section
45 of1969 PA 306, MeL

### 24.245, the

### Legislative**S~rvice** 

### Bureau approvesthe rules as toform, classification, andarrangement.

. Dated: August6, 2008**LEGISLATIVESER~CEBUREAU**



### By 

# 7 

# f1u1;t!hdtiltn**.~** ElliottSmith,Director'

MichiganLegislature 124 W. Allegan Street, 3'" Floor. P.O. Box 30036 • tansiDg. Ml48909.-7536 • (517)**37~94?5** •**F~.)o:~** (5!7)**3?3-5~2**

AttachmentD Page 30 of 70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality 

# •

STATE OF MICHIGAN JENNIFERM. GRANHOLM STATE OFFICE OF ADMINISTRATIVE HEARINGS AND RULES PETERL. PLUMMER GOVERNOR EXECUTIVE DIRECTOR



## LEGAL CERTIFICATION OFRULES

I certify thatI have examined the attached administrative**rules~** 

### datedApril 21, 2008, in whichthe DepartmentofEnvironmental Qualityproposes to modify aportion ofthe Michigan Administrative Codeentitled, "AirPollution Control

- Part 

### 18. Prevention ofSignificant Deterioration ofAir Quality," by:

• AmendingR 336.2801, R 336.2816, and R336.2818.

TheLegislative Service Bureauhas approvedtheproposedrules as to**fonn~** 

### classification, andarrangement.
I approve therules as to legalitypursuantto theAdministrativeProcedures Act, MeL 24.201 etseq. 

### and Executive OrderNo. 2005-1. Incertifying therules as to legality, Ihave detenninedthatthey are within the scope ofthe authorityofthe agency, do not violate constitutional rights, and are inconformity

### withthe requirements oftheAdministrative Procedures Act.

Dated: 

# <6:-d-- {}CO
State Office ofAdministrative Hearings andRules

2007-017 EQ

STATE OFFICE OF ADMINISTRATIVE HEARINGS AND RULES 611 W. OTTAWA STREET. P.O. BOX 30695 • LANSING, MICHIGAN 48909-8195 www.michlgan.gov • (517) 335·2484

AttachmentD Page 31 of 70PETER L PLUMMER EXECUTIVE DIRECTOR Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality

# IZ**~)**

. . _.-:.:.

STATE Of' MICHIGAN STATE OFFICE OF ADMINISTRATIVE HEARINGS AND RUl€S LANSING JENNIFER M. GRANHOLM GOVERNOR



### August 8, 2008

Ms. ColleenCurtis JointCommitteeonAdministrativeRules Boji Tower; 4th

### Floor

- 124 W. 

### Allegan P.O. 30036 Lansing, Michigan 48909-7536
Dear

### Ms. Curtis:
Onbehalfofthe StateOfficeofAdministrative Hearings andRules, Ihereby submitthe following rule setforconsiderationbytheJointCommitteeonAdministrativeRules: (2007-0017 EQ) Pollution Part 18. New Source Review for Major Source of Air


### Enclosed, youwill fmd copies ofthefollowing:
1. 

### I copyoftheLSB fonnal certificate. 2. I copyofthe SOAHRfonnal certificate. 3. I copy oftheRegulatoryImpactStatement. 4. 1copyofthe draftrules. 5. 1copyofthe

### leARAgencyReport.
Pleaseletmeknowifyouhave any questions. 

## rcanbe

### reachedat 1-1671

.. Thanks. Sincerely,

DeidreO'Berry, RulesAnalyst State OfficeofAdministrativeHearings andRules enclosures

State Office ofAdministrative Hearings and Rules 611 W. Ottawa St.. P.O. BOX 30695. Lansing. Michigan 48909-8195 www.michlgan.gov • (517) 335-2484 AttachmentD Page 32 of 70

### Revision to theMichigan

# SIP**fo~** Pari:'1'"8: 

### 'P,;;ention of

## Signiii~nt**D~te;i~,atio~**-oiAI,

## Q~~/it;' - 

# 4

TO:

FROM:

DATE: .,'


### .**~\** 

### THE L

### ~'I"br4TURE

## LANS~~~'~:~~~IGAN J:'1iC'

.**~" 16~1~'**  (t '. :.' .JOINT COlVlMlTTE"; ON AUMIN1S'1'RA'I'IVE RULES
P.O. BOX :lUD)o LANSINC.**f,il1(~llIGAN ~KM97S'&**  (6171**~7a** 6471i· rClL:PHONI! (6171**~7:l66111'** FAX

Wnivcl' ofRemaining Sessioll DilY$

Peter1. Plummer, BxccutiVt; Director StateOffice ofAdministrative**IIearit,g~** undRuh:1:( NoreneLind. Administrative**Rul~** Mnnetgl:l' Stato Office ofAdminislrntivc Hearings tlnd**Rulc~** Secretary ofthe SemIte Clerk. ofthe House
SenatorJohn Pappagc<lrgc, Chair RepresentativePudlcy Spade, Alternate Chair September 11, 200R 

# RECEIVED
SEP 1 1.**LUU~** STATE OFFICE OFAOMINISTRATIVE**HEARI~lCS** &RULES

TheJointCoinInitteeon Administr'ltive**l~ulc!\** hns hy aeoncurrc·nt majorityvote. waived theremaining sessiolldayc•.purSUI11ltto MCL 24.245fi(I), fortheproposedrule sc.I dat.edApril 21,2008 as follows: DepartmentotEnvrronmental Quality···

..AirQualityDivil>lo!l·'· AirPolhll:ion Control··-Part18. l'reventionofSignificantDeterioration firAir Quality (2()07-017 EQ) (JCAR #08-43). 

### Accordingto 

### MeL24.245a(2), iftheCommitLcewaiveI' theremaining session days, theState Office of 

### AdministrativeHearings 

### and Rules may immediately file Il,e rule.
Sincerely. 

# .(A 

# lJ
· 1bt2&-**Jn~r~DLEY** SPADE Ahl.-mate 

### Chair**n~(:'I"od** Pap.l 

### ttachment0 

### Page 33 of 70REVISION To THEMICHIGAN SIP FOR PART18: PREVENTIONOF SIGNIFICANTDETERIORA TlONOFAIR QUALITY:



# ATTACHMENT 

# E:

AGENCY REPORT, DATED APRIL 

# 1, 2008.

AttachmentE Page 34 of 70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality

Agency Report to the 

### JOINT COMMITTEE 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 (SOARR) at 

### soahr_fules@michigan.gov. The SOARRwill reviewthedocument, thenewspaperadvertisements, and thecorrespondingrulespriortocompleting the legalcertificationoftherules. Pleasebe sureto sendtothe SOARRproofs of publicationforthe threenewspaperadvertisementsrequiredby

### MeL24.242(1). Youmaymailthemorsendthemas a scanned attachment. 

### Department 

# I Environmental Quality



### Rule setnumber 2007-017EQ


### Title ofrules: Michigan Air Pollution Control Rules; Part 18, Prevention of Significant Deterioration ofAir Qualit

2. 

### Purpose for the proposed rules and back2found: Rule package SOAR 2007-Q17EQ contains five revisions to the Part 18 state rules which will allow Michigan to obtain a full federal Clean AirAct New Source Review State Implementation Plan (SIP). Current state rules address the Prevention of Significant Deterioration (PSD) federal program. These rules were submitted to the U.S. En\1ronmental Protection Agency(EPA) for SIP approval on December21, 2006. During the EPA's review of Michigan's SIP submittal, the EPAfound that three rules did not match the federal requirements. Therefore, until Michigan makes this correctio.n, the EPA will only conditionally approve Michigan's SIP. Also, a fourth change is proposed because it was determined that one ofthe Part 18 rules definitions was more stringent than the federal requirement. This was not Michigan's intent.
The fifth change to the Part 18 rules is a result ofsuggestions made by both EPA and stakeholders. A term that was previously stayed by a court decision can now be added to the Part 18 Rules because EPA has recently amended the federal requirement. As currentlywritten, Michigan's rule is more stringent than the newiy amended federal requirement.

AttachmentE Page 35 of70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality
- 2 -

3. Summary of proposed rules: Each ofthe draft Part 18 rules are summarized as follows:
R 336.2801 Definitions Rule 1801 replaced 40 CFR §52.21 (b), which contains the definitions for the federal rule that is currently effective in Michigan. This rule contains definitions for terms used in Part 18's PSD permitting program. Underthis proposed rule package, Rules 1801 (r)(ii), 1801 (ee) and 1801 (hh) are being revised.
The EPA requested a revision to Rule 1801 (r)(ii) to be consistent IArith 40 CFR §51.166(b)(32). Michigan agreed to add the definition of "replacement unit" to the definition of "emissions unit" in Rule 1801 (r).
The revision to Rule 1801 (ee) is being made to make the rule no more stringent than the federal requirement in 40 CFR §52.21. To further clarify, as currentlywritten, the rule can be interpreted to be more stringent than the federal requirements and that was not Michigan's intent.
The EPA requested a revision to Rule 1801 (hh) to further clarify the intent ofthe rule corresponding to 40 CFR §51.166(b)(4), except instead of using the term "federally enforceable," the state PSD rules use the term "legally enforceable." Consistent with the EPA "Interim Policy on Federally Enforceable Requirements for Limitations on Potential to Emit,"dated January 22, 1996 (Interim Policy), Michigan will change the term "legally enforceable" to "legally enforceable and enforceable as a practical matterby the state, local airpollution control agency, or U.S. EPA."
R 336.2816 Sources impacting federal class I areas; additional requirements. EPA requested revisions to Rule 1816. Those revisions consist of changes to Rule 1816(2) through (4) so that the rules more closely comport with 40 CFR §51.166(p)(1) through (7). As currently written, Rule 1816 is not as stringent as the federal requirements it was intended to mirror.
R 336.2818 Source obligation.
The revisions to Rule 1818(3) were not requested; this was more of a suggestion from both EPA and the stakeholders. The revisions include changes to 1818(3) and 1818(3)(f) to implement the EPA's recently promulgated rules that clarify the "reasonable possibility" recordkeeping and reporting requirements associated with the 2002 NewSource Review reform rules.



### 4. Name ofnewspapers and date ofpublication in newspapers (minimum3 newspapers ofgeneral circulation, representing differentparts ofthe state, one ofwhich mustbe locatedin the UpperPeninsula): The notice was published May 6, 2008, in the following newspapers: Lansing State Joumal Oakland Press Marquette Mininq Journal

AttachmentE Page 36 of70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality


### - 3 -

5. Time, date, location and duration of ublic hearin : June 19, 2008,10:00-10:35 a.m.; Constitution Hall, 525 West Aile an Street, Lansin



### ublication ofrules and ublic hearin notice in

### Michi an Re 'ster:

7. Agencyrepresentative(s) attending hearing (include agency name and title of representative[s): The following attended from the Michigan Department of Environmental Quality: G. Vinson Hellwig, Division Chief, AQD Jane Permoda, Acting Administrative Rules Coordinator, AQD Marion Hart, Supervisor, Administration Section, AQD Jeffrey Rathbun, Engineer, Permit Section, AQD Teresa Walker, Environmental QualityAnalyst, AQD Bryce Feighner, Supervisor, Chemical Process Unit, Pennit Section, AQD Karen Beauchamp, Environmental Engineer, Water Bureau Lois Elliott Graham, Environmental QualityAnalyst, Water Bureau Debbie Ostrander, Environmental QualityAnalyst, Water Bureau Susan Maul, RegulatoryAffairs Officer, DEQ



### 8. Names, organizations and (complete) addresses ofpersons attending the hearing: Roger storm, Trailway Acquisition Specialist, DNR, P.O. Box30448, Lansing, Michigan 48909-7948



### 9. Persons submittin letters comments and testimon No letters or comments were received.



### 10. Persons submittin letters, comments and testimon No letters or comments were received.



### Name ofperson completing this report: 

# I Jane Permoda 

# I

AttachmentE 

### osition:

Page 37 of 70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality
-4-

Date report completed: 

# I June 27, 2008

(SOARR-JeAR June 2005)

AttachmentE Page 38 of 70REVISION To THEMICHIGAN SIPFOR PART18: PREVENTION OFSIGNIFICANTDETERIORA TlON OFAIR QUALITY:



# ATTACHMENT 

# F:

OPENING STATEMENT BY MARION HART, HEARINGS OFFICER FOR THE JUNE 

## 19, 2008 PUBLIC HEARING.

STAFF STATEMENT BY JEFF RATHBUN, CHEMICAL PROCESS UNIT OF THE AIR QUALITY DIVISION.

AttachmentF Page 39 0'70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality



### Department of Environmental Quality Opening Statement By: Marion Hart, Hearings Officer
June 19, 2008

Introduction Good morning ladies and gentlemen. My name is Marion Hart, and I am the Supervisor ofthe Administration Section in the Air Quality Division of the Michigan Department of Environmental Quality. I will be serving as the Hearing Officerfor this public hearing on the revision of Parts 8 and 18 of the Air Pollution Control Rules.

With me today are other DEQ staffwho will be assisting with this hearing. Seated with me on my right are Teresa Walker ofthe Strategy Development Unit, and Jeffrey Rathbun ofthe Permit Section, who prepared the rule revisions, and on my left Vince Hellwig, Chief ofthe Air Quality Division, who is representing the Director ofthe Department of Environmental Quality, the decision-maker on administrative rules.
Hearing Agenda

To describe how this is going to work today, I will begin with some background information about why we are here today. I will then describe the purpose ofthe hearing and how your comments will be used. Following that, I will outline the procedures under which we will take your comments and then describe what will happen aftertoday's hearing. It will then be

lHf:Jrhml3nf F Page 40 of70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality 

### - 2 -



### your time to provide comments, and we will spend the majority oftime today listening to those comments. At the end ofthe hearing, I will provide
a short summary and closing.


### Background Information
By way of background information, the Air Quality Division is responsible for protecting_Michigan's air resources. The law governing those responsibilities is Sections 5503 and 5512 of Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451,
as amended

.. We are here today for a public hearing on amendments to Parts 8 and 18 to the administrative rules for Air Pollution Control, SOAHR Nos. 2007-017EQ and 2007-038EQ.

I will now ask Jeffrey Rathbun and Teresa Walker to briefly summarize the proposed revisions.



### Purpose of Public Hearing

In order for rule promulgation to occur, the DEQ must follow the procedures set forth in the Administration Procedures Act of 1969 and the State Office of Administrative Hearings and Rule's procedures.

The purpose oftoday's hearing is to give anyone interested in the proposed rules an opportunity to provide information that the DEQ can use in making the decision. Please recognize that the DEQ can only use the information

AttachmentF Page 41 of 70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality 

### - 3 -


### you provide if it relates to the criteria that the DEQ must use in making a decision. Some of you may want to simply express your support or opposition to the proposed action. We will be happy to make note ofyour position, but please understand that the DEQ is, by law, not allowed to base our decision on whether or not there is widespread support or opposition to the proposed action.

Procedures

In just a minute, I will outline the procedures we will use in taking your comments today. Before I do so, however, I need to mention that the notice ofthis hearing was published in the Oakland Press, Lansing State Journal, and Marquette Mining Journal on May 6, 2008. The notice and proposed rules were also published in the Michigan Register on May 15, 2008. Copies ofthe hearing notice, Regulatory Impact Statement, proposed rules, and summary ofthe proposed rules were made available to those interested and are available here today.

As you came today, 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 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. I 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.

AttachmentF Page42 of70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality 

### -4-


### When all the cards have been completed, I will ask if anyone else would like to make a statement.

2. When your name is called, please come to the microphone, face me, and make your statement. Ifyou have written comments or materials you would like to present, please hand them to me as you come to the microphone. As you begin your comments, please state your
name and any group or association you may represent.

3. Each person will be given five minutes to make their comments. I will indicate to you when you have one minute left. Please begin wrapping up your comments and end within the allotted time. If need be, 

### I will indicate when your time has ended.

I ask that we all be courteous and respectful to one another today. Only
one person should be speaking at a time. Please do not interrupt a speaker and please also recognize that the DEQ staff are here today to provide a fair opportunity for you to express your comments on the proposed rules and to listen to those comments.



### How the Information Will be Used

This hearing is being recorded and your comments will be a part of the information the DEQ will consider in making its decision on the proposed rules. The public comment period for the proposed rules ends today at 5:00 p.m.

AttachmentF Page 43 of 70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration of AirQuality 

### - 5 - 

### Following the public hearing, the DEQ staffwill review all comments and prepare an Agency Report, which includes the response to comments. The Agency Report will be available on the DEQ website or by contacting the Air Quality Division office. The proposed rules and the Agency Report will be submitted to the State Office ofAdministrative Hearings and Rules and the Joint Committee on Administrative Rules. Following JCAR, the rules will be filed with the Secretary of State and become effective immediately. It is estimated this process will take approximately four to five months.

Thank you for your attention. I will now begin calling the names ofthose who have indicated they would like to make a statement.

Closing Statement



### Thank you for your comments and cooperation today. We appreciate your interest inJhese proposed rules and that you took the time to be here today.

As indicated at the beginning ofthe hearing, the closing date ofthe public comment period is today at 5:00 p.m. and an Agency Report will be prepared.

The hearing is now closed. Thank you again.

AttachmentF Page44 of70Revision to the Michigan SIPforPart 18: Prevention ofSignificantDeterioration ofAirQuality



### Staff Statement By: Jeff Rathbun, Chemical Process Unit June 19, 2008



### SUBJECT: A Public Hearing for amendments to Part 18 of the Air Pollution Control Rules (SOAHR No. 2007-017EQ)
The Department of Environmental Quality (DEQ), Air Quality Division, is proposing amendments of administrative rules to the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (MCl 324.101 to 324.90106) by amending Part 18, R 336.2801, R 336.2816 and R 336.2818. Purpose ofthe Proposed Revisions On December 21,2006, the Michigan Department of Environmental Quality (MDEQ) submitted a revision to Michigan's New Source Review (NSR) State Implementation Plan (SIP) to the U.S. Environmental Protection Agency (EPA). The submittal consisted of a new addition to Michigan's Air Pollution Control Rules, Part 18, Prevention of Significant Deterioration [PSD] ofAir Quality, R 336.2801 to R 336.2819 and R 336.2823 (1) to (14), promulgated pursuant to Part 55, Air Pollution Control, ofthe Natural Resources and Environmental Protection Act, 1994 PA 451, as amended. Our letter requested EPA approval ofthe revised SIP. Following numerous conversations with EPA Region 5 staff, the MDEQ has submitted a letter as a commitment to address the changes necessary to obtain a full and final approval of our Part 18 PSD rules promulgated as a SIP pursuant to Michigan's Air Pollution Control Rules.
The submittal ofthe revised rules will address concerns raised pursuant to Title 40 of the Code of Federal Regulations (CFR), Part 51, Requirements for Preparation, Adoption, and Submittal of Implementation Plans, Sections 51.166(b)(4), 51.166(b)(32), 51.166(p), 51.166(r)(6) and 52.21. The MDEQ is revising the rules under RFR 2007- 017EQ. The revisions will be completed no laterthan one year after EPA's approval of the SIP.
I will now summarize each rule change: 2007-017EQ. Part 18 Rules Amendments The revisions consist of modifications to Rules 1801 (r)(ii), 1801 (hh), and 1816 ofthe Part 18 rules at the request of EPA. Rule 1818(3) is being revised at the suggestion of both EPA and stakeholder comments even though the rule, as currently written, would be acceptable by EPA because it is more stringent than the federal requirement. An additional revision to Rule 1801 (ee), "Net emissions increase," is the result of comments received during the public notice period on the same term underthe MDEQ's nonattainment NSR rules.

AttachmentF Page 45 of 70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality 

### - 2 -

Rule 1801 Definitions The requested revision to Rule 1801 (r)(ii) is being made to be consistent with 40 CFR 51.166(b)(32). Michigan agreed to add the definition of "replacement unit" to the definition of "Emissions Unit" in Rule 1801 (r).
The revision to Rule 1801 (ee) is being made to make the rule no more stringent than the federal requirement in 40 CFR 52.21. To further clarify, as currently written, the rule can be interpreted to be more stringent than the federal requirements and that was not Michigan's intent.
The requested revision to Rule 1801 (hh) will be made to further clarify the intent ofthe rule corresponding to 40 CFR 51.166(b)(4) except instead of "federally enforceable," the state PSD rules use the term "legally enforceable." Consistent with the EPA "Interim Policy on Federally Enforceable Requirements for Limitations on Potential to Emit" dated January 22, 1996 (Interim Policy), Michigan will change the term "legally enforceable" to "legally enforceable and enforceable as a practical matter by the state, local air pollution control agency or U.S. EPA." Rule 1816 Sources Impacting Federal Class I areas; additional requirements The requested revisions to Rule 1816 shall include changes to Rule 1816(2) through (4) so that the rules more closely comport with 40 CFR 51.166(p)(1) through (7). Rule 1818 Source Obligation The revisions to Rule 1818(3) were not requested, this was more of a suggestion from both EPA and the stakeholders. The revisions shall include changes to 1818(3) and 1818(3)(f) to implement the EPA's recently promulgated rules that clarify the "reasonable possibility" recordkeeping and reporting requirements associated with the 2002 New Source Review reform rules.

AttachmentF Page46 of70REVISION To THEMICHIGAN SIPFOR PART18: PREVENTION OFSIGNIFICANTDETERIORAnON OFAIR QUALITY:



# ATTACHMENT 

# G:

NEWSPAPER AFFIDAVITS OF PUBLICATION FROM THE LANSING STATE JOURNAL, OAKLAND PRESS, AND THE MINING JOURNAL WHICH PUBLISHED THE PUBLIC HEARING NOTICE ON MAY 

## 6, 2008.

PROPOSED RULES AND PUBLIC HEARING NOTICE PUBLISHED IN THE MICHIGANREGISTER, ISSUE No. 

## 8-2008, ON MAY 

## 15, 2008.

AttachmentG Page47 0'70legals Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality

AFFIDAVIT OF PUBLICATION COMMUNITYNEWSPAPERS, INC. 120 E. Lenawee. Lansing, MI48919 State ofMichigan, County ofIngham

IN THE MATTER OF: NOTICE
MICH DEPARTMENT OFENVIR QUALITY
Rachelle Franklin

1. 2. 

### 3.

SUBSCRIBED AND SWORN TO BEFOREME THIS 6TH
DAY OF MAY, 2008
CARRIEA. SAVAGE NOTARY PUBLIC, STATE OF MICHIGAN, COUNTY OF EATON MY COMMISSION EXPIRES: SEPTEMBER4,2014 ACTING 

### IN THE COUNTY OF EATON
LSJ- 585968

AttachmentG Page48 of 70

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# ~~~ of THE OAKLAND PRESS, a newspaper printed and circulated rtaily in Oakland County. Michigan. and that I hold such position during the publication or the notice hereto annexed; that <l notice of

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......................................................................................... NOTARY PlIAUC. OAKLANDCOUNTY, MICHIGAN
TINAM. CROWN NOl'AAVPU8UC. $TATEOFMI COUNT'(OF lAPEER MYCOMMISSION !xpIRe5Mar30. 2Q14 ACTING IN COUNTYOF 1il''I\lo.Iii.._a..E1 Vi "-<L.- 

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### E ..c: u 0::(Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality 

# The lVIining Journal

Upper Michigan's Largest Daily Newspaper 249 W. Washington St., P.O. Box 430, Marquette, Michigan 49855. Phone (906)228-2500. Fax (906)228-3273.
AFFIDAVIT OF PUBLICATION

STATE OF MICHIGAN
AFFIDAVIT OF PUBLICATION
Forthe County of MARQUETTE In the matterof: Notice of Public Hearing Michigan Departmentof Environmental Quality Air Quality Division

Cost: $105.50

State of MICHIGAN, County of Marquette ss. JAMES A. REEVS being duly sworn, says that he is
PUBLISHER of THE MINING JOURNAL

.. ...:.'..

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• ,', -:. ,', -.' •.. " •

. -j',.,' 1" C!.ne.wspaper'publishe'c(al1d circuiated in. said countY and oth'erWlse"qualified

... according to Supreme'Court Rule;that annexed hereto is a printed copy ofa notice which was published in said newspaperon the following date, or dates, to-wit May 6,2008

# ~E~KbWJ SUbscribed and sworn to before me this 27th dayof May, 2008.

# \·~Xkzd AMYL. B D.... , .., Nqtarx·Publicfor fv1arquette'County, Michigan Acting In the'County

## of Marquette .'

. My commission expires: .July 3. 2013 "'.', ,", " , .

AttachmentG Page 50 of 70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality 

# Michigan Register

Issue No. 8- 2008 (Published May 

### 15,2008)

AttachmentG Page 51 of70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality 

# Michigan Register

Published pursuant to 

## § 24.208 of The Michigan Compiled Laws



## Issue No. 8- 2008 (This issue, published May 15, 2008, contains documents filed from April 15, 2008 to May 1, 2008)



### Compiled and Publishedby the 

# State Office ofAdministrative Hearings and Rules

AttachmentG Page 52 of70Revision to the Michigan SIP forPart 18: Prevention ofSignificantDeterioration ofAirQuality



## CONTENTS

ADMINISTRATIVE RLJLES FILED

\VITl1 SECRETARY OF STATE Department ofManagement and Budget State Employees' Retirement Board (SOAHR# 2004-056) (Jeneral H.ules 2-9 Department ofLabor and Economic Growth State Office ofAdministrative Hearings and Rules (SOAHR # 2006-046) State Retirement Board- General Hearing Rules 10-13 Department ofEnvironmental Quality Waste and Hazardous Materials (SOAHR # 2006-063) Storage and Handling ofGaseous and Liquefied Hydrogen Systems 14-90 Department ofState Police Michigan Commission on Law Enforcement Standards (SOAHR# 2006-074) Law Enforcement Standards and Training 91-98 Department ofState Police Michigan Commission on Law Enforcement Standards (SOAHR # 2007-054) Basic Law Enforcement Training Programs 99-99 Department ofState Police Michigan Commission on Law Enforcement Standards (SOAHR # 2007-055) Preservice Basic Training Programs 100-100
PROPOSED ADMINISTRATIVE RULES, NOTICES OF PUBLIC HEARINGS Department ofEnvironmental Quality Air Quality Division (SOAHR# 2007-017) Pm1 18 Prevention ofSignificantDeterioration ofAir Quality 102-117 Department ofEnvironmental Quality Air Quality Division (SOAHR# 2007-038) Part 8 Emission Limitations and Prohibitions-Oxides ofNitrogen 118-146 Department ofEnvironmental Quality OUice ofGeological Survey (SOAHR # 2007-046) Mineral Wells 147-150

AttachmentG Page 53 of 70Revision to the Michigan SIP forPart 18: Prevention of SignificantDeterioration ofAirQuality

Department ofTreasury Board ofDirectors (SOAHR# 2007-051) Michigan Education Trust 151-153 Department ofCommunity Health Health Policy Regulations & Professions Administration (SOAHR# 2008-006) Requests for Declaratory Ruling 154-158
OTHER OFFICAL INFORMATION Department ofLabor and Economic Growth OOice ofFinancial and Insurance Regulation Electronic Rate ,md Form Filing and Amendment of97-010 M Exemption Order (Notice ofPublic Hearing) 160-161
ENROLLED SENATE AND HOUSE BILLS SIGNED INTO LAW OR VETOED
Table (2008 Session) 163-178
MICHIGAN ADMINISTRATIVE CODE TABLE

Table (2008 Session) 180-183
CUMULATIVE INDEX
Cumulative Index (2008) 184-186

AttachmentG Page 54 of70Revision to the Michigan SIP forPart18: Prevention ofSignificantDeterioration ofAirQuality 2008 MR 8- May 15, 2008

PROPOSED ADMINISTRATIVE 

### RULES
SOAHR 2007-017
DEPARTMENT OF ENVIRONMENTAL QUALITY
AIR QUALITY DIVISION
AIRPOLLUTION CONTROL
Filed with the Secretary ofState on These rules become effective immediately upon filing with the Secretary ofState unless adopted under sections 33, 44, or45a(6) of1969 PA 306. Rules adopted underthese sections become effective 7 days after filing with the Secretary ofState. (By authority conferred onthe director ofthe department ofenvironmental quality by sections 5503, 5505(4), and 5512 of 1994 PA 451, MCL 324.5503, 324.5505(4), and 324.5512, and Executive Reorganization OrderNo. 1995-18, MCL 324.99903)

R 336.2801, R 336.2816, and R 336.2818, 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. Ifaterm defined in this part is also defined elsewhere in the rules, then the definition contained here applies for this part only.

(a) "Actual emissions" means the actual rate ofemissions ofaregulated new source reviewpollutant from an emissions unit, as determined under R 336.1101(b), exceptthat this definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing aplantwide applicability limitunder R 336.2823. Instead, the terms "projected actual emissions" and "baseline actual emissions" shall apply for those purposes.

(b) "Baseline actual emissions" means the rate ofemissions, in tons peryear, ofaregulated 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 peryear, atwhich the unit actually emittedthe pollutant during any consecutive 24-month period selected by the owner or operatorwithin the 5-yearperiod immediately preceding when the owneror operatorbegins actual construction ofthe project. The department shall allow the use ofa differenttime period upon a determination that it is more representative ofnormal source operation. All ofthe following provisions apply:

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

(B) The average rate shall be adjusted downward to exclude any noncompliantemissions that occurred while the source was operating above an emission limitationthat was legally enforceable during the consecutive 24-monthperiod.

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### (C) For aregulated new source reviewpollutant, ifaproject involves multiple emissions units, then only 1 consecutive 24-month period shall be usedto determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-monthperiod may be used for each regulated new source review pollutant.

(D) The average rate shall notbe based on any consecutive 24-monthperiod for which there is inadequate information for determining annual emissions, intons peryear, and for adjusting this amount ifrequired by paragraph (i)(B) ofthis subdivision.

(ii) Foran existing emissions unit, otherthan an electric utility steam generating unit, baseline actual emissions means the average rate, intons peryear, at whichthe emissions unit actually emittedthe pollutant during any consecutive 24-monthperiod selectedby the owner or operatorwithin the 10-year period immediately preceding eitherthe date the owner or operatorbegins actual construction ofthe project, orthe date a complete permit application is received by the department for apermitrequired by R 336.1201, whichever is earlier, exceptthat the 10-yearperiod shall not include any period earlierthan November 15, 1990. All ofthe following provisions apply:

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

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

(C) The average rate shall be adjusted downward to exclude emissions that would have exceeded an emission limitation with which the major stationary source mustcurrently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-monthperiod. However, ifan emission limitation is part ofamaximum achievable control technology standardthatthe United States environmental protection agency proposed orpromulgated under40 C.F.R. part 63, then the baseline actual emissions need only be adjusted ifthe state has taken credit for such emissions reductions in an attainment demonstration or maintenance plan submitted to the U.S. environmental protection agency. The provisions of40 C.F.R. part 63 are adopted by reference in R 336.2801a.

(D) Foraregulated new source reviewpollutant, ifaprojectinvolves multiple emissions units, then only I consecutive 24-monthperiod shall be usedto determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-monthperiod may be used for eachregulated new source review pollutant.

(E) The average rate shall not be based on any consecutive 24-monthperiod for whichthere is inadequate information for determining annual emissions, intons peryear, and for adjusting this amount ifrequired by subparagraphs (B) and (C) ofthis paragraph.

(iii) For anew emissions unit, the baseline actual emissions for purposes ofdetermining the emissions increase thatwill result from the initial construction and operation ofsuch unit shall equal zero; and thereafter, for all otherpurposes, shall equal the unit's potential to emit.

(iv) For aplantwide applicability limitfor a stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units underparagraph (i) ofthis subdivision, for other existing emissions units underparagraph (ii) ofthis subdivision, and for anew emissions unit underparagraph (iii) ofthis subdivision.

(c) "Baseline area" means all ofthe following: (i) Any intrastate area, and every partthereof, designated as attainment or unclassifiable under section 107(d)(1) (D) or (E) ofthe clean air act in which the major source or major modification establishing the minor source baseline date would construct or would have an air quality impact equal to or greaterthan 1 microgramper cubic meter (annual average) ofthe pollutant for whichthe minor source baseline date is established.

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(ii) Arearedesignations under section 107(d)(l) (D) or (E) ofthe clean air act shall not intersect orbe smallerthan the area ofimpact ofany major stationary source ormajor modification which does either ofthe following:

(A) Establishes a minor source baseline date. (B) Is subjectto PSD regulations ornew source review for major sources in nonattainment areas regulations.

(iii) Any baseline area established originally for the total suspendedparticulates increments shall remain in effect and shall apply for purposes ofdetermining the amount ofavailable PM-10 increments, exceptthatthe baseline area shall notremain in effect ifthe department rescinds the corresponding minor source baseline date under subdivision (bb)(iv) ofthis rule.

(d) "Baseline concentration" means the value derived using the following procedures: (i) The ambient concentration level that exists in the baseline area atthe time ofthe applicable minor source baseline date. A baseline concentration is determined for each pollutant for which a minor source baseline date is established and shall include both ofthe following:

(A) The actual emissions representative ofsources in existence onthe applicable minor source baseline date.

(B) The allowable emissions ofmajor stationary sources that commenced construction before the major source baseline date, butwere not in operation by the applicable minor source baseline date.

(ii) The following shall not be included in the baseline concentration and shall affectthe applicable maximum allowable increase:

(A) Actual emissions from any major stationary source on which construction commenced after the major source baseline date.

(B) Actual emissions increases and decreases at any stationary source occurring afterthe minor source baseline date.

(e) "Begin actual construction" means, in general, initiation ofphysical on-site construction activities on an emissions unitwhich are ofa permanent nature. Such activities include, but are not limited to, installation ofbuilding supports and foundations, laying ofundergroundpipework, and construction of permanent storage structures. "A change in method ofoperation" refers to those on-site activities, other than preparatory activities, which markthe initiation ofthe change.

(f) "Best available control technology" or "BACT" means an emissions limitation, including avisible emissions standard, based on the maximum degree ofreduction for each regulated new source review pollutant, which would be emitted from any proposed major stationary source or major modification which the department

-- on a case-by-case basis, taking into account energy, environmental, and economic impacts and othercosts

-- determines is achievable for such source ormodification through application ofproductionprocesses or available methods, systems, and techniques, including fuel cleaning ortreatment orinnovative fuel combination techniques for control ofthe pollutant. Application ofbestavailable control technology shall notresult in emissions ofany pollutantwhich would exceedthe emissions allowed by any applicable standard under 40 C.F.R. parts 60 and 61, adopted by reference in R 336.2801a. Ifthe departmentdetermines thattechnological or economic limitations onthe application ofmeasurement methodology to aparticular emissions unit would make the imposition ofan emissions standard infeasible, then a design, equipment, workpractice, operational standard orcombinationthereof, may be prescribed instead to satisfY the requirement for the application ofbest available control technology. 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 equivalentresults.

(g) "Building, structure, facility, orinstallation" means all ofthe pollutant-emitting activities which belong to the same industrial grouping, are located on 1 or more contiguous or adjacentproperties, and are under the control ofthe same person, orpersons undercommon control, exceptthe activities ofany

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vessel. Pollutant-emitting activities are part ofthe same industrial grouping ifthey have the same 2- digit major group code associated with theirprimary 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/.

(h) "Clean coal technology" means any technology, including technologies applied atthe precombustion, combustion, orpost-combustion stage, at a new or existing facility which will achieve significantreductions in air emissions ofsulfurdioxide oroxides ofnitrogen associated with the utilization ofcoal in the generation ofelectricity, or process steamwhich was not in widespread use as ofNovember 15,1990.

(i) "Clean coal technology demonstration project" means a projectusing funds appropriated underthe heading "Department ofEnergy

-- Clean Coal Technology," up to a total amount of$2,500,000,000 for commercial demonstration ofclean coal technology, or similarprojects funded through appropriations for the United States Environmental Protection Agency. The federal contribution for a qualifying project shall be at least 20% ofthe total cost ofthe demonstration project.

(j) [Reserved] (k) "Commence," as applied to construction ofa major stationary source or majormodification, means thatthe owner or operatorhas all necessary preconstruction approvals orpermits and has done either of the following:

(i) Begun, or causedto begin, a continuous program ofactual on-site construction ofthe source, to be completed within areasonable 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 ofactual construction ofthe source to be completed within a reasonable time.

(1) "Complete" means, in reference to an application for a permit, thatthe application contains all the information necessary for processing the application. Designating an application complete for purposes ofpermitprocessing does notpreclude the department from requesting or accepting additional information.

(m) "Construction" means any physical change or change in the method ofoperation, including fabrication, erection, installation, demolition, or modification ofan emissions unit, that wouldresult in a change in emissions.

(n) "Continuous emissions monitoring system" or "CEMS" means all ofthe equipmentthat may be required to meetthe data acquisition and availability requirements ofthese rules, to sample; condition if applicable, analyze, and provide a record ofemissions on a continuous basis.

(0) "Continuous emissions rate monitoring system" or "CERMS" means the total equipmentrequired for the determination and recording ofthe pollutantmass emissions rate in terms ofmass per unit of time.

(p) "Continuous parameter monitoring system" or "CPMS" means all ofthe equipmentnecessary to meetthe data acquisition and availability requirements ofthese rules, to monitorprocess and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide concentrations), and to record average operational parametervalue or values on a continuous basis.

(q) "Electric utility steam generating unit" means any steam electric generating unitthat is constructed for supplying more than 1/3 ofits potential electric output capacity and more than 25 megawatt electrical outputto any utility power distribution system for sale. Steam suppliedto a steam distribution system for providing steamto a steam-electric generatorthat would produce electrical energy for sale is also considered in determining the electrical energy output capacity ofthe affected facility.

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### (r) "Emissions unit" means any part ofa stationary source that emits or would have the potential to emit any regulated new source reviewpollutant and includes an electric utility steam generating unit. Both ofthe following are types ofemissions units:

(i) A new emissions unit is any emissions unitthat is, or will be, newly constructed and thathas 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 meetthe definition ofanew 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. A replacement unit shall meet all ofthe following criteria:

(A) The emissions unit is a reconstructed unit ifthe replacement ofcomponents ofan existing facility is to such an extent that the fixed capital cost ofthe new components exceeds 50% ofthe fixed capital cost thatwould be required to construct a comparable entirely new facility orthe emissions unit completely takes the place ofan existing emissions unit.

(B) The emissions unit is identical to or functionally equivalentto the replaced emissions unit. (C) The replacement does not alter the basic design parameters ofthe process unit. (D) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, orpermanently barred from operation by a permitthat is enforceable as a practical matter. If

### the replaced emissions unit is brought backinto operation, it shall constitute a new emissions unit.



### (s) "Federal land manager" means, with respect to any lands in the United States, the secretary ofthe department with authority over such lands.

(t) "High terrain" means an area having an elevation 900 feet or more above the base ofthe stack ofa source.

(u) "Hydrocarbon combustion flare" means either a flare usedto comply with an applicable new source performance standard or maximum achievable control technology standard, including uses of flares during startup, shutdown, or malfunctionpermitted under such a standard, ora flare that serves to control emissions ofwaste streams comprisedpredominately ofhydrocarbons and containing not more than 230 milligrams per dry standard cubic meterhydrogen sulfide.

(v) "Indian reservation" means any federally recognized reservation established by treaty, agreement, executive order, or act ofcongress.

(w) "Indian governing body" means the governing body ofany tribe, band, or group ofIndians subject to thejurisdiction ofthe United States and recognized by the United States as possessing powerofselfgovernment.

(x) "Innovative control technology" means any system ofairpollution control that has not been adequately demonstrated inpractice, butmay have a substantial likelihood ofachieving greater continuous emissions reduction than any control system in currentpractice or ofachieving at least comparable reductions at lower costinterms ofenergy, economics, or non-air quality environmental impacts.

(y) "Lowterrain" means any area other than highterrain. (z) "Lowest achievable emissionrate" or "LAER", for any source, means the more stringentrate of emissions based on R 336.1112(f).

(aa) "Majormodification" means any ofthe following: (i) Physical change in orchange in the method ofoperation ofa major stationary source that would result in both ofthe following:

(A) A significant emissions increase ofaregulated new source reviewpollutant. (B) A significantnet emissions increase ofthatpollutantfrom the major stationary source.

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### (ii) A significant emissions increase from any emissions units or net emissions increase at a major stationary source that is significantfor volatile organic compounds shall be considered significantfor ozone.

(iii) Physical change or change inthe method ofoperation shall not include any ofthe following: (A) Routine maintenance, repair, and replacement. (B) Use ofan alternative fuel orraw material by reason ofany orderunder section 2(a) and (b) ofthe Energy Supply and Environmental CoordinationAct of 1974 orby reason ofanatural gas curtailment plan underthe Federal PowerAct.

(C) Use ofan alternative fuel by reason ofan order orrule under section 125 ofthe clean air act. (D) Use ofan alternative fuel at a steam generating unitto the extentthatthe fuel is generated from municipal solid waste.

(E) Use ofan alternative fuel orraw material by a stationary source which meets either ofthe following:

(1) The source was capable ofaccommodating before January 6,1975, unless such change wouldbe prohibitedunder any federally enforceablepermit condition which was established after January 6, 1975, underPSD regulations or R 336.1201(l)(a).

(2) The source is approved to use under any permitissued under PSD regulations orunder R 336.1201(l)(a).

(F) An increase inthe hours ofoperation or inthe production rate, unless the change would be prohibitedunder any federally enforceable permit condition which was established after January 6, 1975, underPSD regulations or R 336.1201(l)(a).

(G) Any change in ownership at a stationary source. (H) [Reserved] (I) 

### The installation, operation, cessation, orremoval ofatemporary clean coal technology demonstrationproject, providedthatthe project complies with both ofthe following:

(1) The state implementation plan. (2) Otherrequirements necessary to attain and maintainthe national ambient air quality standards during the project and afterthe project is terminated.

(1) 

### The installation or operation ofapermanent clean coal technology demonstrationprojectthat constitutes repowering, providedthat the project does notresult in an increase inthe potential to emitof any regulatedpollutant emittedby the unit. This exemption shall apply on apollutant-by-pollutantbasis.

(K) The reactivation ofa very clean coal-fired electric utility steam generating unit. (iv) This definition shall not apply with respectto aparticularregulated new source review pollutant when the major stationary source is complying withthe requirements for an actuals PAL for that pollutant. Instead, the definition ofPAL major modification in R 336.2823 shall apply.

(bb) All ofthe following apply to major and minor source baseline dates: (i) "Major source baseline date" means both ofthe following: (A) January 6, 1975, for particulate matter and sulfur dioxide. (B) February 8, 1988, for nitrogen dioxide. (ii) "Minor source baseline date" means the earliestdate afterthe trigger date on which amajor stationary source or amajor modification subjectto PSD regulations submits acomplete application under the relevant regulations. The trigger date is both ofthe following:

(A) August 7, 1977, for particulate matter and sulfur dioxide. (B) February 8, 1988, for nitrogen dioxide. (iii) The baseline date is established for each pollutantfor which increments or other equivalent measures have been established ifboth ofthe following occur:

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(A) The area in which the proposed source ormodification would construct is designated as attainment orunclassifiable under section I07(d)(i) (D) or (E) ofthe clean air act for the pollutant on the date ofits complete application underR 336.1201 and PSD regulations.

(B) Ifa major stationary source, the pollutant would be emitted in significantamounts, or, ifamajor modification, there would be a significantnetemissions increase ofthe pollutant.

(iv) Any minor source baseline date established originally for the total suspendedparticulates increments shall remain in effect and shall apply for determining the amount ofavailable PM-I0 increments, exceptthatthe department may rescind any minor source baseline date where it can be shown, to the satisfaction ofthe department, thatthe emissions increase from the major stationary source, orthe net emissions increase from the majormodification, responsible for triggering that date did not result in a significant amount ofPM-I0 emissions.

(cc) "Major stationary source" means any ofthe following: (i) Any ofthe following stationary sources ofairpollutants which emits, orhas the potential to emit, 100 tons peryear ormore ofaregulated new source reviewpollutant:

(A) Fossil fuel-fired steam electric plants ofmore than 250 million Britishthermal units perhourheat input.

(B) Coal cleaning plants with thermal dryers. (C) Kraftpulp mills. (D) Portland cementplants. (E) Primary zinc smelters. (F) Iron and steel mill plants. (G) Primary aluminum ore reduction plants. (H) Primary copper smelters. (I) Municipal incinerators capable ofcharging more than 250 tons ofrefuse per day. (1) Hydrofluoric, sulfuric, and nitric acidplants. (K) Petroleumrefineries. (L) Lime plants. (M) Phosphate rockprocessing plants. (N) Coke oven batteries. (0) Sulfurrecovery plants. (P) Carbon blackplants (furnace process). (Q) Primary lead smelters. (R) Fuel conversion plants. (S) Sintering plants. (T) Secondary metal productionplants. (U) Chemical process plants. (V) Fossil fuel boilers, or combinations thereof, totaling more than 250 million Britishthermal units perhour heat input.

(W) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels. (X) Taconite ore processing plants. (Y) Glass fiber processing plants. (2) Charcoal productionplants. (ii) Any stationary source not listed in the previous subdivision which emits, or has the potential to emit, 250 tons peryear ormore ofa regulated new source reviewpollutant.

(iii) Any physical change that would occur at a stationary source not otherwise qualifying under subdivision (cc) ofthis subrule, as a major stationary source ifthe change would constitute amajor stationary source by itself.

(iv) A major source that is major for volatile organic compounds shall be considered major for ozone.

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(v) The fugitive emissions ofa stationary source shall notbe includedin determining, for any ofthe purposes ofthis rule, whether it is a major stationary source, unless the source belongs to 1 ofthe categories ofstationary sources listed is paragraph (i) ofthis subdivision.

(dd) "Necessary preconstruction approvals orpermits" means a permit issued underR 336.1201(1)(a) that is required by R 336.2801 to R 336.2819, R 336.2823, and R 336.2830 or R 336.1220.

(ee) "Net emissions increase" means all ofthe following: (i) For any regulated new source review pollutantemitted by a major stationary source, the amount by which the sum ofthe following exceeds zero:

(A) The increase in emissions from aparticularphysical change or change inthe method ofoperation at a stationary source as calculated under R 336.2802(4).

(B) Any other increases and decreases in actual emissions atthe major stationary source that are contemporaneous with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases under this paragraph shall be determined as provided inthe definition ofbaseline actual emissions, exceptthatparagraphs (b)(i)(C) and (b)(ii)(D) ofthis subdivision rule shall not apply.

(ii) An increase or decrease in actual emissions is contemporaneous with the increase from the particularchange only ifit occurs notmore than 5 years before the date thatthe increase from the particular change occurs. between the following:

(A) The date 5 years before construction on the particular change commences. (B) The date that the increase from the particular change occurs. (iii) An increase or decrease in actual emissions is creditable only ifboth ofthe follo\ving occur: (A) It occurs vlithin a 5 yearperiod. ---fBt--the department has notrelied on it in issuing apermit under R 336.1201(1)(a) orR 336.1214a, which permit is in effect whenthe increase in actual emissions from the particular change occurs.

(iv) An increase ordecrease in actual emissions ofsulfurdioxide, particulate matter, or oxides of nitrogenthat occurs before the applicable minor source baseline date is creditable only ifit is required in calculating the amount ofmaximum allowable increases remaining available.

(v) An increase in actual emissions is creditable only to the extentthatthe new level ofactual emissions exceeds the old level.

(vi) A decrease in actual emissions is creditable only to the extentthat itmeets all ofthe following criteria:

(A) The old level ofactual emissions orthe old level ofallowable emissions, whichever is lower, exceeds the new level ofactual emissions.

(B) It is enforceable as a practical matter at and afterthe time that actual construction on the particular change begins.

(C) It has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change.

(vii) An increase that results from aphysical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particularpollutant. A replacementunitthat requires shakedown becomes operational only after a reasonable shakedown period, notto exceed 180 days.

(viii) The provisions definition ofactual emissions in R 336.1101(b) shall not apply for determining creditable increases and decreases after a change, instead the definitions ofthe terms "projected actual emissions" and "baseline emissions" shall be used.

(ft) [Reserved] (gg) "Pollutionprevention" means any activity thatthrough process changes, productreformulation or redesign, or substitution ofless polluting raw materials, eliminates orreduces the release ofair

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### pollutants, including fugitive emissions, and otherpollutants to the environmentbefore recycling, treatment, or disposal. Pollutionprevention does not meanrecycling, otherthan certain "in-process recycling" practices, energy recovery, treatment, or disposal.

(hh) "Potential to emit" means the maximum capacity ofa stationary source to emit apollutantunder its physical and operational design. A physical or operational limitation on the capacity ofthe source to emit apollutant, including airpollution control equipment and restrictions on hours ofoperation or on the type or amount ofmaterial combusted, stored, orprocessed, shall be treated as part ofits design if the limitation orthe effect it would have on emissions is legally enforceable and enforceable as a practical matter by the state, local air pollution control agency, orUnited States environmental protection agency. Secondary emissions do notcount in determining the potential to emit ofa stationary source.

(ii) "Predictive emissions monitoring system" or "PEMS" means all ofthe equipmentnecessary to monitorprocess and control device operational parameters (for example, control device secondary voltages and electric currents) and otherinformation (for example, gas flow rate, oxygen or carbon dioxide concentrations), and calculate and recordthe mass emissions rate (for example, pounds per hour) on a continuous basis.



## OJ) "Prevention ofsignificant deterioration" or "PSD" program means the major source preconstructionpermitprogramrequired by 40 C.F.R. §52.21, adopted by reference in R 336.280Ia, or R 336.2801 to R 336.2819, R 336.2823 and R 336.2830. A permit issued underthis program is amajor NSRpermit.

(kk) "Project" means aphysical change in, or change in method ofoperation of, an existing major stationary source.

(11) "Projected actual emissions" means all ofthe following: (i) The maximum annual rate, in tons peryear, atwhich an existing emissions unit is projected to emit aregulatednew source reviewpollutant in any 1 ofthe 5 years (l2-monthperiod) following the date the unitresumes regular operation after the project, or in any 1 ofthe 10 years following that date, ifthe projectinvolves increasing the emissions unit's design capacity orits potential to emitthatregulated new source reviewpollutant, and full utilization ofthe unit would result in a significantemissions increase, or a significantnet emissions increase at the major stationary source.

(ii) In determining the projected actual emissions, before beginning actual construction, the owner or operator ofthe major stationary source shall do all ofthe following:

(A) Consider all relevant information, including but not limitedto, historical operational data, the company's own representations, the company's expectedbusiness activity and the company's highest projections ofbusiness activity, the company's filings withthe state orfederal regulatory authorities, and compliance plans underthe state implementationplan.

(B) Include fugitive emissions to the extentquantifiable and emissions associated with startups, shutdowns, and malfunctions.

(C) Exclude, in calculating any increase in emissions thatresults from the particularproject, that portion ofthe unit's emissions following the projectthat an existing unit could have accommodated during the consecutive 24-monthperiod usedto establishthe baseline actual emissions and that are also unrelated to the particularproject, including any increased utilization due to product demand growth.

(iii) The owner or operator ofa major stationary source may use the emissions unit's potential to emit, intons peryear, instead ofcalculating projected actual emissions.

(mm) "Reactivation ofa very clean coal-fired electric utility steam generating unit" means any physical change or change in the method ofoperation associated withthe commencement ofcommercial operations by a coal-fired utility unit after aperiod ofdiscontinued operation where the unitmeets all of the following criteria:

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(i) The unitwas not in operation for the 2-yearperiodbefore the enactment ofthe clean air act amendments of 1990, and the emissions from the unit continue to be carried in the department's emissions inventory at the time ofenactment.

(ii) The unit was equipped before shutdown with a continuous system ofemissions control that achieves aremoval efficiency for sulfur dioxide ofnot less than 85% and aremoval efficiency for particulates ofnot less than 98%.

(iii) The unitwas equipped with low-oxides ofnitrogenburners before the time ofcommencementof operations following reactivation.

(iv) The unit otherwise complies withthe requirements ofthe clean air act. (nn) "Regulated new source review pollutant," for purposes ofthis rule, means all ofthe following: (i) A pollutantfor which a national ambient air quality standardhas beenpromulgated and any constituents orprecursors for the pollutants identified by the United States environmental protection agency. For example, volatile organic compounds are precursors for ozone.

(ii) A pollutantthat is subjectto any standardpromulgated under section 111 ofthe clean air act. (iii) A class I orII substance subjectto a standard promulgated under or established by title VI ofthe clean air act.

(iv) A pollutantthat otherwise is subjectto regulation underthe clean air act; exceptthat any or all hazardous airpollutants eitherlisted in section 112 ofthe clean air act or added to the list under section 112(b)(2) ofthe clean air act, whichhave notbeen delisted under section 112(b)(3) ofthe clean air act, are notregulated new source reviewpollutants unless the listed hazardous airpollutantis also regulated as a constituent orprecursor ofa general pollutantlisted under section 108 ofthe clean air act.

(00) "Repowering" means all ofthe following: (i) Replacement ofan existing coal-fired boilerwith 1 ofthe following clean coal technologies: (A) Atmospheric orpressurized fluidized bed combustion. (B) Integratedgasification combinedcycle. (C) Magneto hydrodynamics. (D) Directand indirect coal-firedturbines. (E) Integrated gasification fuel cells. (F) A derivative of 1 or more ofthese technologies, and any othertechnology capable ofcontrolling multiple combustion emissions simultaneously with improvedboiler or generation efficiency and with significantly greater waste reduction relative to the performance oftechnology in widespread commercial use as ofNovember 15, 1990, as determinedby the United States environmental protection agency, in**consult~tion** with the Secretary ofEnergy.

(ii) Repowering shall also include any oil and/orgas-fired unitwhichhas been awarded clean coal technology demonstration funding as ofJanuary 1, 1991, by the United States Department ofEnergy.

(iii) The department shall give expedited considerationto permit applications for any source that satisfies the definition ofrepowering and is granted an extension under section 409 ofthe clean air act.

(pp) "Secondary emissions" means emissions which occur as aresult ofthe construction oroperation ofa major stationary source or major modification, but do not come from the major stationary source or major modification itself. Forthis rule, secondary emissions shall be specific, well defined, quantifiable, and impactthe same general areas the stationary source modification which causes the secondary emissions. Secondary emissions include emissions from any offsite support facility which would notbe constructed or increase its emissions except as aresult ofthe construction or operation ofthe major stationary source or majormodification. Secondary emissions do not include any emissions which come directly from amobile source, such as emissions from the tailpipe ofa motor vehicle, from atrain, or from a vessel.

(qq) "Significant" means:

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(i) In reference to a net emissions increase or the potential ofa source to emit any ofthe following pollutants, a rate ofemissions that would equal or exceed any ofthe following pollutant emission rates:

(A) Carbon monoxide: 100 tons per year. (B) Oxides ofnitrogen: 40 tons peryear. (C) Sulfur dioxide: 40 tons peryear. (D) Particulate matter: 25 tons peryear ofparticulate matter emissions; IS tons per year ofPM-I0 emiSSIOns.

(E) Ozone: 40 tons peryear ofvolatile organic compounds. (F) Lead: 0.6 tons per year. (G) Fluorides: 3 tons per year. (H) Sulfuric acid mist: 7 tons peryear. (I) Hydrogen sulfide: 10 tons peryear. (1) Total reduced sulfur, including hydrogen sulfide: 10 tons per year. (K) Reduced sulfur compounds, including hydrogen sulfide: 10 tons peryear. (L) Municipal waste combustor organics, measured as total tetra- through octa-chlorinated dibenzo-pdioxins and dibenzofurans: 3.2 x 10-6 megagrams peryear or 3.5 x 10-6 tons peryear.

(M) Municipal waste combustormetals, measured as particulate matter: 14 megagrams peryear or IS tons peryear.

(N) Municipal waste combustor acid gases, measured as sulfur dioxide and hydrogen chloride: 36 megagrams peryear or40 tons peryear.

(0) Municipal solid waste landfill emissions, measured as nonmethane organic compounds: 45 megagrams peryear or 50 tons peryear.

(ii) Significant means, In reference to a net emissions increase or the potential ofa source to emit a regulated new source review pollutant not listed in this definition, any emissions rate.

(iii) Significant also means Any emissions rate or any net emissions increase associated with amajor stationary source ormajormodification, which would construct within 10 kilometers ofa class I area, and have an impact on such area equal to or greaterthan I microgramper cubic meter (24-hour average).

(rr) "Significant emissions increase" means, for aregulated new source reviewpollutant, an increase in emissions that is significant for thatpollutant.

(ss) "Stationary source" means any building, structure, facility, or installation which emits ormay emit aregulated new source reviewpollutant.

(tt) "Temporary clean coal technology demonstration project" means a clean coal technology demonstration projectthat is operated for aperiod of5 years or less, and which complies with the state implementationplan and otherrequirements necessary to attain and maintain the national ambient air quality standards during and afterthe project is terminated.
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 ofeachpermit application relating to a major stationary source ormajor modification andprovide notice to the United States environmental protection agency ofevery actionrelated to the consideration ofthe permit.

(2) Ifthe proposedmajor stationary source ormajor modification affects a federal class I area, the department shall not approve the permit application unless the applicant submits 1 ofthe follov/ing: 

### the department shall not approve the permit application ifthe department concurs with a demonstration provided by 

### the federal land manager that the emissions from the proposed major source or major modification would have an adverse impact on the air quality related values of

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### 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 thatwould exceed the maximum allowable increases for a class I area.

(3) 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 1 ofthe following occurs:

(a) The applicant submits awritten certificationthatthe applicant has demonstrated to the federal land managerthatthe emissions from the proposed major source ormajormodification wouldhave no adverse impact onthe air quality related values ofclass I lands, including visibility, notwithstanding that the change in air quality resulting from emissions from amajor source ormajor modification would cause or contribute to concentrations, '",hich that would exceed the maximum allowable increases for a class I area. The department may then, providedthat applicable requirements are otherwise met, issue the permit with emission limitations to assure that emissions ofsulfurdioxide, particulate matter, and oxides ofnitrogen would not exceedthe following maximum allowable increases overminor 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-la, annual arithmetic 17 mean

PM-la, 24-hour maximum 30 Sulfur dioxide:

Annual arithmetic mean 20 24-hourmaximum 91 3-hourmaximum 325 Nitrogen dioxide:

Annual arithmetic mean 25 Eb) A written certificationthat boththe governor andthe federal land manager have granted a sulfur dioxide variance for the federal class I area.

Ec) A written certificationthat boththe governor andthe presidenthave granted a sulfur dimcide variance for the federal class I area.

(b) If

### the department cannot approve the permit application under R 336.2816(3)(a) due to sulfur dioxide emissions resulting in increases greater than those specified in Table 183 for periods of24 hours orless, the applicant may obtain approval by providing a written certification that the applicant has demonstrated to the federal land manager that the emissions from the proposed major source or major modification would have no adverse impact on the air quality related values ofclass I lands, including visibility, and that both the governor and the federal land manager have granted a sulfur dioxide variance for the federal class I area on which variance the public has received notice and opportunity for public hearing.

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(c) Ifthe department cannot approve the permit application under R 336.2816(3)(a) due to sulfur dioxide emissions resulting in increases greaterthan those specified in Table 183 for periods of24 hours or less, and the department cannot approve the permit application under R 336.2816(3)(b) because the federal land manager does not concurwith the governor's issuance ofa sulfur dioxide variance that is otherwise consistentwith R 336.2816(3)(b), the applicant may obtain approval by providing a written certification that the applicant has demonstrated to the president that a sulfur dioxide variance is in the national interest and the president concurs with the issuance ofthe sulfur dioxide variance by the governor.

(dj(4) The department will not issue a permit affecting a class I area in which a sulfur dioxide variance was granted underR 336.2816(3)(b) or (c), unless the permit includes emission limitations necessary to assure that emissions ofsulfur dioxide from the major source ormajormodification 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 overthe baseline concentration and to assure that emissions would not cause or contribute to concentrations which exceed the otherwise applicable maximum allowable increases for periods ofexposure of24 hours or less for more than 18 days, not necessarily consecutive, during any annual period.
Table 184 Maximum allowable sulfur dioxide increments
Maximum Allowable Increase Period of (micrograms per cubic meter) exposure Terrain areas Low High 24-hour maximum 36 62 3-hourmaximum 130 221
R 336.2818 Source obligation.

Rule 1818. (1) Approval to construct shall notrelieve an owner or operator ofthe responsibility to comply fully with applicable provisions ofthe state implementation plan and any other requirements under local, state, or federal law.

(2) Ifa particular major source or majormodification becomes a major stationary source or major modification solely by virtue ofa relaxation in any enforceable limitation which was established after August 7, 1980, on the capacity ofthe major source ormajormodification otherwise to emit apollutant, such as a restriction on hours ofoperation, then the requirements ofR 336.2810 to R 336.2819 shall apply to the major source or major modification as though constructionhad notyet commenced on the major source or majormodification.

(3) l\:11 ofthe following apply to projects at eJcisting emissions units at a major stationary source, other than projects at a major source with a plantvlide applicability limit, where the ovmer or operator elects to use the method in R 336.2801(1l)(ii)(A) to (C) for calculating projected actual emissions. All ofthe following provisions apply to any regulated new source review pollutant emitted from projects at existing emissions units at a major stationary source, other than projects at a major source with a plantwide applicability limit, where there is a reasonable possibility, as defined in R 336.2818(3)(f), that a project that is not a part ofa major modification may result in a significant emissions increase ofsuch pollutant, and the owner or operator elects to use the method specified in R 336.2801(1l)(ii)(A) to (C) for calculating projected actual emissions:

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(a) Before beginning actual construction ofthe project, the owner or operator shall document and maintain arecord ofall ofthe following information:

(i) A description ofthe project. (ii) Identification ofthe emissions unit or units whose emissions ofa regulated new major source review pollutantmay be affected by the project.

(iii) A description ofthe applicability testused to determine thatthe project is not a major modification for any regulated new source review pollutant, including the baseline actual emissions, the projected actual emissions, the amount ofemissions excluded under R 336.2801 (ll)(ii)(C) and an explanation for why such amountwas excluded, and any netting calculations, ifapplicable.

(b) Ifthe emissions unit is an existing electric utility steam generating unit, then before beginning actual construction, the owner or operator shall provide a copy ofthe informationrequired by subdivision (a) ofthis subrule to the department. This subdivision does not require the owner or operatorofthe unitto obtain any determination from the departmentbefore beginning actual construction.

(c) The owner or operator shall monitor the emissions ofaregulated new source reviewpollutantthat could increase as aresult ofthe project and that is emitted by any emissions unit identified in subdivision (a)(ii) ofthis subrule; and calculate and maintain arecord ofthe annual emissions, in tons peryear on a calendaryear basis, for aperiod of5 years following resumption ofregular operations afterthe change, or for aperiod of 10 years following resumption ofregular operations afterthe change ifthe project increases the design capacity orpotential to emit ofthat regulated new major source reviewpollutant atthe emissions unit.

(d) Ifthe unit is an existing electric utility steam generating unit, then the owner oroperator shall submit areportto the departmentwithin 60 days after the end ofeach year during which records are generated under subdivision (c) ofthis subrule setting out the unit's annual emissions during the calendaryearbefore submission ofthe report.

(e) Ifthe unit is an existing unit otherthan an electric utility steam generating unit, then the owner or operator shall submit areportto the department ifthe annual emissions, in tons per year, from the project exceedthe baseline actual emissions by a significant amount for that regulated new source reviewpollutant, and ifsuch emissions differ from the preconstructionprojection. The owner or operator shall submitthe reportto the department within 60 days afterthe end ofsuchyear. The report shall contain all ofthe following:

(i) The name, address, and telephone number ofthe major stationary source. (ii) The annual emissions as calculated under subdivision (c) ofthis subrule. (iii) Any otherinformationthatthe owner or operator wishes to include in the report; for example, an explanation as to why the emissions differ from the preconstructionprojection.



### (f) A reasonable possibility occurs when the owner or operator calculates the project to result in either ofthe following:

(i) A projected actual emissions increase ofat least 50% ofthe amount that is a significant emissions increase, as defined in R 336.2801(rr), without reference to the amount that is a significant net emissions increase for the regulated new source review pollutant.

(ii) A projected actual emissions increase that, added to the amount ofemissions excluded under R 336.2801(1l)(ii)(C), sums to at least 50% ofthe amount that is a significantemissions increase, as defined in R 336.2801(rr), without reference to the amount that is a significant net emissions increase for the regulated new source review pollutant. For a project for which a reasonable possibility occurs only within the meaning ofR 336.2818(3)(f)(ii), and not also within the meaning ofR 336.2818(3)(f)(i), then the provisions ofR 336.2818(3)(b) to (e) do not apply to the project.

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### (4) The owner or operatorofthe major source shall make the information required to be documented and maintained underthis rule available for review upon request for inspection by the department orthe general public under MeL 

### 324.5516(2).

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### NOTICE OF PUBLIC HEARING

NOTICE OF PUBLIC HEARING DEPARTMENT OF ENVIRONMENTAL QUALITY AIR QUALITY DIVISION

The Michigan Department ofEnvironmental Quality (DEQ), Air Quality Division, will conduct apublic 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 (Act451); Part 18, Prevention ofSignificant Deterioration (PSD) ofAir Quality, R 336.1801, R 336.1816, and R 336.1818. These amendments are being proposed to meet the requirements ofthe U.S. Environmental Protection Agency for the PSD State Implementation Plan.
The public hearing will be held on June 19, 2008, at 10:00 a.m., in the Brake Conference Room, Constitution Hall, Atrium South, 525 WestAllegan Street, Lansing, Michigan. Copies of the proposed rules (SOAHR 2007-017EQ) can be downloaded from the Internet at: http://www.michigan.gov/deqair. These rules can also be downloaded from the Internet through the State Office ofAdministrative Hearings and Rules at http://www.michigan.gov/soahr. Copies ofthe rules may also be obtainedby contacting the Lansing office at:
Air Quality Division Michigan Department ofEnvironmental Quality P.O. Box 30260 Lansing, Michigan 48909-7760 Phone: 517-335-6989

Fax: 517-241-7499 E-Mail: blaiss@Michigan.gov
All interested persons are invited to attend and presenttheir views. It 

### is requestedthat 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 mustbe received by 5:00 p.m. on June 19,2008.
Persons needing accommodations for effective participation in the meeting should contact the Air Quality Division at 517-335-6989 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. Administration ofthe rules is by authority conferred on the Director ofthe DEQ by Sections 5503 and 5512 ofAct 451, being Sections 324.5503 and 324.5512 ofthe Michigan Compiled Laws, and Executive Order 1995-18. These rules will become effective immediately after filing withthe Secretary ofState.

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