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

Dear Administrator 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) of Air 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 of the

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 of the 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) 662·9278
Ms. Lynn Buhl Page 2 September 30, 2008

We appreciate your attention to this matter. If you 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, MDEQ
State ofMichigan

DEPARTMENT OF ENVIRONMENTAL QUALITY

Protecting Michigan's Environment, Ensuring Michigan's Future

Environmental Assistance Center 800-662-9278

REVISION TO THE MICHIGAN

STATE IMPLEMENTATION PLAN

FOR

PART 18. PREVENTION OF

SIGNIFICANT DETERIORATION OF

AIR QUALITY

R 336.2801, R 336.2816, AND R 336.2818

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/degair

REVISION To THE MICHIGAN SIP FOR PART 18: PREVENTION OF SIGNIFICANT DETERIORAnON OFAIR 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 of the adopted rules, Part 18, with the effective date of

September 11, 2008.

ATTACHMENT B: August 13, 2008 Letter from MDEQ Director Steven E. Chester to

Ms. Norene Lind, State Office of Administrative Hearings and Rules

(SOAHR), forwarding the MDEQ Certificate of Adoption.

The Certificate of Adoption 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 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 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 Officer for June 19,

2008, public hearing.

Staff Statement by Jeff Rathbun, Chemical Process Unit of the Air

Quality Division.

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 Michigan

Register, Issue No. 8-2008, on May 15, 2008.

Table of Contents Page 2 of 70

REVISION To THE MICHIGAN SIP FOR PART 18: PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY

COMPLETENESS REVIEW

ADMINISTRATIVE MATERIALS

1. A formal letter of submittal from the governor or designee requesting EPA

approval of the revision.

Cover letter from Steven E. Chester, Director of the 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 of the adopted rules, Part 18, with the effective date of

September 11, 2008 (Attachment A).

August 13, 2008 letter from MDEQ Director Chester to Ms. Norene Lind,

SOAHR, forwarding the MDEQ Certificate of Adoption (Attachment B).

The Certificate of Adoption 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 Air Act (Attachment C).

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

the rules are within the scope of the authority of the MDEQ (Attachment D).

4. A copy of the actual regulation or document submitted for approval and

incorporation by reference into the SIP, including indication of the changes

made to the existing approved SIP, where applicable. The submittal should be

a copy of the official state regulation/document signed, stamped, and dated by

the appropriate state official indicating that it is fully enforceable by the state.

The effective date of the regulation/document should, whenever possible, be

indicated in the document itself.

The Secretary of State's Notice of Filing Administrative Rules for Part 18, dated

September 11, 2008 (Attachment A)

The final form of the adopted rules, Part 18, with the effective date of

September 11,2008 (Attachment A).

Completeness Review Page 3 0'70
REVISION To THE MICHIGAN SIP FOR PART 18: PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY

5. Evidence that the state followed all of the requirements of its administrative

procedures act (or equivalent) in conducting and completing the

adoption/issuance of the revision.

The Certificate of Approval 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 of the rules in conformity with the requirements of the

Administrative Procedures Act, MCl 24.201 et seq. (Attachment D).

The letter from 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 of the proposed change consistent with

procedures approved by EPA, including date of publication of such notice.

The 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 (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 of the 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 of the

Agency Report (Attachment E).

TECHNICAL SUPPORT

1. Justification of rules revisions.

The Agency Report's Section 2, "Purpose of the Proposed Rules and

Background," and Section 3, "Summary of Proposed Rules," provides the

purpose and justification of the proposed rules (Attachment E).

Completeness Review Page 4 of 70
REVISION To THE MICHIGAN SIP FOR PART 18: PREVENTION OF SIGNIFICANT DETERIORATION OF AIR 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.

Attachment A Page 50f70
Revision to the Michigan StP for Part 18:Ionof Significant Deterioration of Air Quality

STATE OF MICHIGAN

TERRI LYNN LAND, SECRETARY OF STATE

DEPARTMENT OF STATE

LANSING

September 11, 2008

NOTICE OF FILING

ADMINISTRATIVE RULES

To: Secretary ofthe Senate

Clerk ofthe House ofRepresentatives

Joint Committee on Administrative Rules

State Office of Administrative Hearings and Rules (08-09-02)

Legislative Service Bureau (2007-017-EQ)

Department ofEnvironmental Quality

In accordance with the provisions of Section 46(1) ofAct 306, Publi-c Acts of 1969, as amended,

and Executive Order 1995-6 this is to advise you that the Michigan Department ofLabor and

Economic Growth, State Office ofAdministrative Hearings and Rules filed at 3:42 P.M. this

date, administrative rule (08-09-02) for the Department ofEnvironmental Quality "Part 18.

Prevention ofSignificant Deterioration of.A.ir;.Quality';. i

Tliis rule becomes effective immediately upon filing with the Secretary of State unless adopted

under sections 33,44, 45a(6), or 48 of 1969 PA 306. Rules adopted under these sections become

effective 7 days after filing with the Secretary of State.

Sincerely,

Terri Lynn Land

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

Attachment A Page 6 of 70
Revision to the Michigan SIP for Part 18: Prevention of Significant Deterioration ofAir Quality

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 after filing with the Secretary of State.

(By authority conferred on the director of the 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, of the Michigan Administrative Code are

amended as follows:

PART 18. PREVENTION OF SIGNIFICANT DETERIORATION OF AIR QUALITY

R 336.2801 Definitions.

Rule 1801. The following definitions apply to terms used in this part. If a 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 per year, at which the unit actually emitted the

pollutant during any consecutive 24-month period selected by the owner or operator

within the 5-year period immediately preceding when the owner or operator begins

actual construction of the project. The department shall allow the use of a different

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

operation. All of the following provisions apply:

(A) The average rate shall include fugitive emissions to the extent quantifiable, and

emissions associated with startups, shutdowns, and malfunctions.

4/21/2008

Attachment A Page 70f70
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(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) of this subdivision.

(ii) For an existing emissions unit, other than an electric utility steam generating

unit, baseline actual emissions means the average rate, in tons per year, at which

the emissions unit actually emitted the pollutant during any consecutive 24-month

period selected by the owner or operator within the 1O-year period immediately

preceding either the date the owner or operator begins actual construction of the

project, or the date a complete permit application is received by the department for a

permit required by R 336.1201, whichever is earlier, except that the 10-year period

shall not include any period earlier than November 15, 1990. All of the following

provisions apply:

(A) The average rate shall include fugitive emissions to the extent quantifiable, and

emissions associated with startups, shutdowns, and malfunctions.

(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 if the 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 of 40 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) of this

paragraph.

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

determining the emissions increase that will result from the initial construction and

Attachment A Page 8 of 70
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-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) of this subdivision, for other existing emissions units under paragraph

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

subdivision.

(c) "Baseline area" means all of the following:

(i) Any intrastate area, and every part thereof, designated as attainment or

unclassifiable under section 107(d)(1) (0) or (E) of the 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 greater than 1

microgram per cubic meter (annual average) of the pollutant for which the minor

source baseline date is established.

(ii) Area redesignations under section 107(d)(1) (0) or (E) of the 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 of the 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 if the department rescinds the corresponding minor source baseline

date under subdivision (bb)(iv) of this 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 of the 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 after the major source baseline date.

(B) Actual emissions increases and decreases at any stationary source occurring

after the 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

Attachment A Page 9 of 70
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structures. "A change in method of operation" refers to those on-site activities, other

than preparatory activities, which mark the initiation of the 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. If the department determines that

technological or economic limitations on the application of measurement

methodology to a particular emissions unit would make the imposition of an

emissions standard infeasible, then a design, equipment, work practice, operational

standard or combination thereof, may be prescribed instead to satisfy the

requirement for the application of best available control technology. The standard

shall, to the degree possible, set forth the emissions reduction achievable by

implementation of the 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 of the pollutant-emitting

activities which belong to the same industrial grouping, are located on 1 or more

contiguous or adjacent properties, and are under the control of the same person, or

persons under common control, except the activities of any vessel. Pollutantemitting activities are part of the same industrial grouping if they have the same 2-

digit major group code associated with their primary activity. Major group codes and

primary activities are described in the standard industrial classification manual,

1987. For assistance in converting north American industrial classification system

codes to standard industrial classification codes see

http://www.census.gov/epcd/naics02/.

(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 of the demonstration project.

U) [Reserved]

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(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 of the following:

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

of the source, to be completed within a reasonable time.

(ii) Entered into binding agreements or contractual obligations, which cannot be

canceled or modified without substantial loss to the owner or operator, to undertake

a program of actual construction of the source to be completed within a reasonable

time.

(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 of these 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 of time.

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

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 of the 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 of the 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

Attachment A Page 11 of 70
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existing emissions unit that is replaced. A replacement unit shall meet all of the

following criteria:

(A) The emissions unit is a reconstructed unit if the replacement of components of

an existing facility is to such an extent that the fixed capital cost of the new

components exceeds 50% of the 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 or functionally equivalent to the replaced

emissions unit.

(C) The replacement does not alter the basic design parameters of the 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. If the 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 of the department with authority over such lands.

(t) "High terrain" means an area having an elevation 900 feet or more above the

base of the 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 of flares during startup, shutdown, or

malfunction permitted under such a standard, or a flare that serves to control

emissions of waste streams comprised predominately of hydrocarbons and

containing not more than 230 milligrams per dry standard cubic meter hydrogen

sulfide.

(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 of the 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 of the following:

(i) Physical change in or change in the method of operation of a major stationary

source that would result in both of the following:

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

(8) A significant net emissions increase of that pollutant from 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 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) of the Energy Supply and Environmental Coordination Act of

1974 or by reason of a natural gas curtailment plan under the Federal Power Act.

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

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 of the 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 of the

following:

(1) The state implementation plan.

(2) Other requirements necessary to attain and maintain the national ambient air

quality standards during the project and after the 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 of the following apply to major and minor source baseline dates:

(i) "Major source baseline date" means both of the following:

(A) January 6, 1975, for particulate matter and sulfur dioxide.

(8) February 8, 1988, for nitrogen dioxide.

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(ii) "Minor source baseline date" means the earliest date after the trigger date on

which a major stationary source or a major modification subject to PSO regulations

submits a complete application under the relevant regulations. The trigger date is

both of the 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 of the 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) of the

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 of the 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 of the

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 of the following:

(i) Any of the 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.

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(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 per year 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) of this subrule, as a major stationary source if the

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 of this rule, whether it is a major stationary

source, unless the source belongs to 1 of the 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 of the following:

(i) For any regulated new source review pollutant emitted by a major stationary

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

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

method of operation at a stationary source as calculated under R 336.2802(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) of this rule shall not apply.

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

increase from the particular change only if it occurs 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 if the

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

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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

of the 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 of the 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 of the source to emit a pollutant, including air pollution

control equipment and restrictions on hours of operation or on the type or amount of

material combusted, stored, or processed, shall be treated as part of its design if the

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 of the

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.

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(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 of the 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 of the 5 years

(12-month period) following the date the unit resumes regular operation after the

project, or in any 1 of the 10 years following that date, if the project involves

increasing the emissions unit's design capacity or its potential to emit that regulated

new source review pollutant, and full utilization of the unit would result in a significant

emissions increase, or a significant net emissions increase at the major stationary

source.

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

construction, the owner or operator of the major stationary source shall do all of the

following:

(A) Consider all relevant information, including but not limited to, historical

operational data, the company's own representations, the company's expected

business activity and the company's highest projections of business activity, the

company's filings with the state or federal regulatory authorities, and compliance

plans under the 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

of discontinued 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 of the clean air act.

(nn) "Regulated new source review pollutant," for purposes of this rule, means all

of the 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

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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 of the

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 of the clean

air act or added to the list under section 112(b)(2) of the clean air act, which have

not been delisted under section 112(b)(3) of the 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 of the clean

air act.

(00) "Repowering" means all of the 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 of these 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 of technology 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 of the clean air act.

(pp) "Secondary emissions" means emissions which occur as a result of the

construction or operation of a major stationary source or major modification, but do

not come from the major stationary source or major modification itself. For 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:

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(i) In reference to a net emissions increase or the potential of a source to emit any

of the following pollutants, a rate of emissions that would equal or exceed any of the

following pollutant emission rates:

(A) Carbon monoxide: 100 tons per year.

(B) Oxides of nitrogen: 40 tons per year.

(C) Sulfur dioxide: 40 tons per year.

(0) Particulate matter: 25 tons per year of particulate matter emissions; 15 tons

per year of PM-1 0 emissions.

(E) Ozone: 40 tons per year of volatile 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 per year.

(J) Total reduced sulfur, including hydrogen sulfide: 10 tons per year.

(K) Reduced sulfur compounds, including hydrogen sulfide: 10 tons per year.

(L) Municipal waste combustor organics, measured as total tetra- through octachlorinated dibenzo-p-dioxins and dibenzofurans: 3.2 x 10-6 megagrams per year

or 3.5 x 10-6 tons per year.

(M) Municipal waste combustor metals, measured as particulate matter: 14

megagrams per year or 15 tons per year.

(N) Municipal waste combustor acid gases, measured as sulfur dioxide and

hydrogen chloride: 36 megagrams peryear or 40 tons per year.

(0) Municipal solid waste landfill emissions, measured as nonmethane organic

compounds: 45 megagrams per year or 50 tons per year.

(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 greater than 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 after the 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 of the permit.

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(2) If the proposed major stationary source or major modification affects a federal

class 1 area, the department shall not approve the permit application if the

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) 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 of the following occurs:

(a) The applicant submits a written certification that the applicant has

demonstrated to the federal land manager that the emissions from the proposed

major source or major modification would have no adverse impact on the air quality

related values of class I lands, including visibility, notwithstanding that the change in

air quality resulting from emissions from a major source or major modification would

cause or contribute to concentrations that would exceed the maximum allowable

increases for a class I area. The department may then, provided that applicable

requirements are otherwise met, issue the permit with emission limitations to assure

that emissions of sulfur dioxide, particulate matter, and oxides of nitrogen would not

exceed the following maximum allowable increases over minor source baseline

concentration for the pollutants:

Table 183

Maximum allowable increases over minor source baseline concentrations

Pollutant Maximum allowable increase

(micrograms per cubic meter)

Particulate matter:

PM-10, annual arithmetic mean 17

PM-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) 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 of 24 hours or less, the applicant may obtain

approval by providing a written certification that the applicant has demonstrated to

the federal land manager that the emissions from the proposed major source or

major modification would have no adverse impact on the air quality related values of

class I lands, including visibility, and that both the governor and the federal land

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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) 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 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 concur with 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 of the 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 of the

responsibility to comply fully with applicable provisions of the 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 after August 7, 1980, on the capacity of the 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 of the 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

Attachment A Page 21 of 70
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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 of the project, the owner or operator shall

document and maintain a record of all of the following information:

(i) A description of the project.

(ii) Identification of the emissions unit or units whose emissions of a regulated new

major source review pollutant may be affected by the project.

(iii) A description of the 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) If the 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) of this subrule to the department. This

subdivision does not require the owner or operator of the unit to obtain any

determination from the department before beginning actual construction.

(c) The owner or operator shall monitor the emissions of a regulated new source

review pollutant that could increase as a result of the project and that is emitted by

any emissions unit identified in subdivision (a)(ii) of this subrule; and calculate and

maintain a record of the 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 if the project increases the design capacity or potential to emit of that

regulated new major source review pollutant at the emissions unit.

(d) If the 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) of this subrule setting

out the unit's annual emissions during the calendar year before submission of the

report.

(e) If the 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 if the 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 differ from 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 of the following:

(i) The name, address, and telephone number of the major stationary source.

(ii) The annual emissions as calculated under subdivision (c) of this 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 differ from the

preconstruction projection.

(f) A reasonable possibility occurs when the owner or operator calculates the

project to result in either of the following:

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(i) A projected actual emissions increase of at least 50% of the 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% of the 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 of the major source shall make the information required

to be documented and maintained under this rule available for review upon request

for inspection by the department or the general public under MCl 324.5516(2).

Attachment A Page 23 of 70

REVISION To THE MICHIGAN SIP FOR PART 18: PREVENTION OF SIGNIFICANT DETERIORATION OFAIR 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.

Attachment B Page 24 0(70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

ti~rr D S-rATF OF MICHIGAN

DEPARTMENT OF E~A~~N~NMENTALQUALITY 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 of Adoption for Administrative Rules Promulgated Pursuant to

Part 55, Air Pollution Control, of the Natural Resources and Environmental

Protection Act, 1994 PA 451, as Amended (Act 451), SOAHR 2007-017EQ

The Certificate of Adoption for the administrative rules promulgated pursuant to Part 55

of Act 451 is being forwarded to you, along with a reference copy of the administrative

rules, in accordance with the provisions of Executive Order 2005-1 and the January 5,

1996, memorandum from the former Office of Regulatory Reform" These rules are

being proposed to address deficiencies noted by the U,S" Environmental Protection

Agency (EPA) in their December 2007 conditional approval of the 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 of the EPA for the Prevention of Significant Deterioration SIP,

The rules were certified by the 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.

If you 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-hmfmt B Page 25 of 70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

.~:.~ "~.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 of the Department of Environmental Quality, do formally

adopt the attached administrative rules by amending R 336.2801, R 336.2816, and

R 336.2818 of the Michigan Administrative Code"

These rules are adopted pursuant to Sections 5503 and 5512 of Part 55, Air Pollution

Control, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as

amended, and Executive 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

Attachment B Page 26 of 70

REVISION To THE MICHIGAN SIP FOR PART 18: PREVENTION OF SIGNIFICANT DETERIORATION OF AIR 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.

Attachment C Page 270(70
Revision to the Michigan SIP for Part 18: Prevention of Significant Deterioration ofAir Quality

STATE OF MICHIGAN

OFFICE OF THE GOVl!:RNOF!

JENNIFER M. 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

Dear Mr. Skinner:

.'

Attachment C

The federal Clean Air Act (CAA) requires Michigan to submit revisions to the

State Implementation Plan. It also provides an opportUnity for the state to request

delegations and make grant applications to fund air quality programs.

I hereby delegate my authority to make any submittal, request, or application

under the CAA to Director Steven E. Chester of the 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, Deputy Director,MDEQ

,,_U,c.o- C1' ",e,c~(o h"ttl

Page 28 of 70
REVISION To THE MICHIGAN SIP FOR PART 18: PREVENTION OF SIGNIFICANT DETERIORATlON OF AIR 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.

Attachment D Page 29 0'70
I.iZJ\lU~1 \1\),

o8/1 ~~tPJio~EFol'Ne2Micflt§aiN;tP%r'dP:it f§!'"Prev~~FfoW1>f Significant Deterioration ofAir Quality

THIS COpy TO BE FILE[)

WITH

SECRETARY OF STATE

. EGISLAT1VE

ERVICE

REAU'

Since 1941

.......... _....--CERTIFICA'f-E-·QF·APPROVALu.

Legal Division

John C. Bollman. Director

I hereby certify that the Legislative Service Bureau has examined the

attached proposed'r~reso1 th(;·Depa.rt.ment-oiE~vironmental Quality, dated April..

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

rules entitled ~(Air Pollution Control," and further certify that, pursuant to section

45 of 1969 PA 306, MeL 24.245, the Legislative S~rvice Bureau approves the

rules as to form, classification, and arrangement.

. Dated: August 6, 2008

LEGISLATIVESER~CEBUREAU

By 7f1u1;t!hdtiltn .~ Elliott Smith, Director'

Michigan Legislature

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

Attachment D Page 30 of 70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

STATE

•

OF MICHIGAN

JENNIFERM. GRANHOLM STATE OFFICE OF ADMINISTRATIVE HEARINGS AND RULES PETERL. PLUMMER

GOVERNOR EXECUTIVE DIRECTOR

LEGAL CERTIFICATION OF RULES

I certify that I have examined the attached administrative rules~ dated April 21, 2008, in

which the Department ofEnvironmental Quality proposes to modify a portion ofthe Michigan

Administrative Code entitled, "Air Pollution Control - Part 18. Prevention of Significant

Deterioration ofAir Quality," by:

• Amending R 336.2801, R 336.2816, and R 336.2818.

The Legislative Service Bureau has approved the proposed rules as to fonn~

classification, and arrangement.

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

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

detennined that they are within the scope ofthe authority ofthe agency, do not violate

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

Procedures Act.

Dated: <6:-d-- {} CO

State Office ofAdministrative Hearings and Rules

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

Attachment D Page 31 of 70
PETER L PLUMMER

EXECUTIVE DIRECTOR

Revision to the Michigan SIP for Part 18: Prevention of Significant Deterioration ofAir Quality

IZ

~)

.

. _.-:.:.

STATE Of' MICHIGAN

STATE OFFICE OF ADMINISTRATIVE HEARINGS AND RUl€S

LANSING

JENNIFER M. GRANHOLM

GOVERNOR

August 8, 2008

Ms. Colleen Curtis

Joint Committee on Administrative Rules

Boji Tower; 4th Floor - 124 W. Allegan

P.O. 30036

Lansing, Michigan 48909-7536

Dear Ms. Curtis:

On behalfofthe State Office ofAdministrative Hearings and Rules, I hereby submit the

following rule set for consideration by the Joint Committee on Administrative Rules:

(2007-0017 EQ)

Pollution

Part 18. New Source Review for Major Source of Air

Enclosed, you will fmd copies ofthe following:

1. I copy ofthe LSB fonnal certificate.

2. I copy ofthe SOAHR fonnal certificate.

3. I copy ofthe Regulatory Impact Statement.

4. 1 copy ofthe draft rules.

5. 1 copy ofthe leAR Agency Report.

Please let me know ifyou have any questions. r can be reached at 1-1671..

Thanks.

Sincerely,

Deidre O'Berry, Rules Analyst

State Office ofAdministrative Hearings and Rules

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

Attachment D Page 32 of 70
Revision to the Michigan SIP fo~ Pari:' 1'"8: 'P,;;ention of Signiii~ntD~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'

of Remaining Sessioll DilY$

Peter 1. Plummer, BxccutiVt; Director

State Office ofAdministrative IIearit,g~ und Ruh:1:(

Norene Lind. Administrative Rul~ Mnnetgl:l'

Stato Office ofAdminislrntivc Hearings tlnd Rulc~

Secretary of the SemIte

Clerk. ofthe House

SenatorJohn Pappagc<lrgc, Chair

Representative Pudlcy Spade, Alternate Chair

September 11, 200R

RECEIVED

SEP 1 1. LUU~

STATE OFFICE OF AOMINISTRATIVE

HEARI~lCS &RULES

The Joint CoinInittee on Administr'ltive l~ulc!\ hns hy a eoncurrc·nt majority vote. waived the remaining

sessioll dayc•.purSUI11lt to MCL 24.245fi(I), for the proposed rule sc.I dat.ed April 21,2008 as follows:

Department otEnvrronmental Quality···.. Air Quality Divil>lo!l·'· Air Polhll:ion Control··-Part18.

l'revention ofSignificant Deterioration fir Air Quality (2()07-017 EQ) (JCAR # 08-43).

According to MeL 24.245a(2), ifthe CommitLce waiveI' the remaining session days, the State Office of

Administrative Hearings and Rules may immediately file Il,e rule.

Sincerely.

.(A lJ· 1bt2&- Jn~r~DLEY SPADE

Ahl.-mate Chair

n~(:'I"od

Pap.l

ttachment 0

Page 33 of 70

REVISION To THE MICHIGAN SIP FOR PART 18: PREVENTION OF SIGNIFICANT DETERIORATlON OFAIR QUALITY:

ATTACHMENT E:

AGENCY REPORT, DATED APRIL 1, 2008.

Attachment E Page 34 of 70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

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 SOARR will

review the document, the newspaper advertisements, and the corresponding rules priorto completing

the legal certification ofthe rules. Please be sure to send to the SOARRproofs ofpublication for the

three newspaper advertisements required by MeL 24.242(1). You may mail them orsend them as a

scanned attachment.

Department

I Environmental Quality

Rule set number

2007-017EQ

Title of rules:

Michigan Air Pollution Control Rules; Part 18, Prevention of Significant Deterioration of Air

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 Air Act 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 December 21, 2006. During the EPA's review of Michigan's SIP submittal, the

EPA found 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 of the 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 of suggestions 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 currently written,

Michigan's rule is more stringent than the newiy amended federal requirement.

Attachment E Page 35 of 70
Revision to the Michigan SIP for Part 18: Prevention of Significant Deterioration ofAir Quality

- 2 -

3. Summary of proposed rules:

Each of the 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. Under this 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 currently written, 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 of the 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 matter by the state, local air pollution 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 New Source Review reform rules.

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

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

must be located in the Upper Peninsula):

The notice was published May 6, 2008, in the following newspapers:

Lansing State Joumal

Oakland Press

Marquette Mininq Journal

Attachment E Page 36 of 70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

- 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 of rules and ublic hearin notice in Michi an Re 'ster:

7. Agency representative(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 Quality Analyst, AQD

Bryce Feighner, Supervisor, Chemical Process Unit, Pennit Section, AQD

Karen Beauchamp, Environmental Engineer, Water Bureau

Lois Elliott Graham, Environmental Quality Analyst, Water Bureau

Debbie Ostrander, Environmental Quality Analyst, Water Bureau

Susan Maul, Regulatory Affairs Officer, DEQ

8. Names, organizations and (complete) addresses of persons attending the hearing:

Roger storm, Trailway Acquisition Specialist, DNR, P.O. Box 30448, 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 of person completing this report:

I Jane Permoda I

Attachment E

osition:

Page 37 of 70
Revision to the Michigan SIP for Part 18: Prevention of Significant Deterioration of Air Quality

-4-

Date report completed:

I June 27, 2008

(SOARR-JeAR June 2005)

Attachment E Page 38 of 70

REVISION To THE MICHIGAN SIP FOR PART 18: PREVENTION OF SIGNIFICANT DETERIORATlON OF AIR 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.

Attachment F Page 39 0'70
Revision to the Michigan SIP for Part 18: Prevention of Significant Deterioration ofAir Quality

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 of the Administration Section in the Air Quality Division of

the Michigan Department of Environmental Quality. I will be serving as the

Hearing Officer for this public hearing on the revision of Parts 8 and 18 of

the Air Pollution Control Rules.

With me today are other DEQ staff who will be assisting with this hearing.

Seated with me on my right are Teresa Walker of the Strategy

Development Unit, and Jeffrey Rathbun of the Permit Section, who

prepared the rule revisions, and on my left Vince Hellwig, Chief of the Air

Quality Division, who is representing the Director of the 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 of the 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 after today's hearing. It will then be

lHf:Jrhml3nf F Page 40 of 70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

- 2 -

your time to provide comments, and we will spend the majority of time

today listening to those comments. At the end of the 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,

of the 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 of today'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

Attachment F Page 41 of 70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

- 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 of your

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 of this 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 of the hearing notice, Regulatory Impact Statement,

proposed rules, and summary of the 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.

Attachment F Page 42 of 70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

-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. If you 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.

Attachment F Page 43 of 70
Revision to the Michigan SIP for Part 18: Prevention of Significant Deterioration ofAir Quality

- 5 -

Following the public hearing, the DEQ staff will 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 of Administrative 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 of those

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 of the hearing, the closing date of the 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.

Attachment F Page 44 of 70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

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 of the 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] of Air Quality, R 336.2801 to R 336.2819 and R

336.2823 (1) to (14), promulgated pursuant to Part 55, Air Pollution Control, of the

Natural Resources and Environmental Protection Act, 1994 PA 451, as amended. Our

letter requested EPA approval of the 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 of the 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 later than 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 of the

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 under the MDEQ's

nonattainment NSR rules.

Attachment F Page 45 of 70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

- 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 of the

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.

Attachment F Page 46 of70
REVISION To THE MICHIGAN SIP FOR PART 18: PREVENTION OF SIGNIFICANT DETERIORAnON OF AIR 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 MICHIGAN REGISTER, ISSUE No. 8-2008,

ON MAY 15, 2008.

Attachment G Page 47 0'70
legals

Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

AFFIDAVIT OF PUBLICATION

COMMUNITY NEWSPAPERS, INC.

120 E. Lenawee.

Lansing, MI48919

State ofMichigan, County ofIngham

IN THE MATTER OF: NOTICE

MICH DEPARTMENT OF ENVIR QUALITY

Rachelle Franklin

1.

2.

3.

SUBSCRIBED AND SWORN TO BEFORE ME THIS 6TH

DAY OF MAY, 2008

CARRIE A. SAVAGE

NOTARY PUBLIC, STATE OF MICHIGAN, COUNTY OF EATON

MY COMMISSION EXPIRES: SEPTEMBER 4,2014

ACTING IN THE COUNTY OF EATON

LSJ- 585968

Attachment G Page 48 of 70
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THE OAKLAND PRESS,a newspaper printed and circulated

rtaily in Oakland County. Michigan. and thatI hold such

position during the publication or the notice hereto annexed;

that <l notice of ..

..R~~~.. Of

which the annexed nolice isa ttue copy. was published in the

!;aid TIlE OAKLAND PRESS.

..·..~T..·....··..·..·..·..· immediately preceding the

~l of .I.. .J.. that the annexed printed copy of said notice

was t<1kl1l1 from the sairl newspaper. That the dates of

ruhrication ot said nalice were...@M...lf.l~ ........

Jnt

.... ;.:-:-:-:-:

her depOnen'..'aiEL.

Sub:;cribcd and swarn to before me this7 day of

....................................... A.D.20°l.

.. Cunv--- .........................................................................................

NOTARY PlIAUC. OAKLAND COUNTY, MICHIGAN

TINA M. CROWN

NOl'AAVPU8UC. $TATE OF MI

COUNT'( OF lAPEER

MY COMMISSION !xpIRe5 Mar 30. 2Q14

ACTING IN COUNTY OF

1il''I\lo.Iii.._a..E1 Vi "-<L.-

MAY 2 7 Z008

QUALITY DIV.

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0::(
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

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

For the County of MARQUETTE

In the matter of: Notice of Public Hearing

Michigan Department of 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 .. ...:.'.. . .~. : :. • ,', -:. ,', -.' •.. " • . -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 of a

notice which was published in said

newspaper on the following date, or

dates, to-wit

May 6,2008

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

\·~Xkzd AMYL. B D.... , ..,

Nqtarx·Public for fv1arquette'County,Michigan

Acting In the 'County of Marquette .' .

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

Attachment G Page 50 of 70
Revision to the Michigan SIP for Part 18: Prevention of Significant Deterioration ofAir Quality

Michigan

Register

Issue No. 8- 2008 (Published May 15,2008)

Attachment G Page 51 of 70
Revision to the Michigan SIP for Part 18: Prevention of Significant Deterioration ofAir Quality

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 Published by the

State Office ofAdministrative Hearings and Rules

Attachment G Page 52 of 70
Revision to the Michigan SIP for Part 18: Prevention ofSignificant Deterioration ofAir Quality

CONTENTS

ADMINISTRATIVE RLJLES FILED

\VITl1 SECRETARY OF STATE

Department of Management and Budget

State Employees' Retirement Board (SOAHR # 2004-056)

(Jeneral H.ules 2-9

Department ofLabor and Economic Growth

State Office of Administrative 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 of Gaseous and Liquefied Hydrogen Systems 14-90

Department of State Police

Michigan Commission on Law Enforcement Standards (SOAHR # 2006-074)

Law Enforcement Standards and Training 91-98

Department of State Police

Michigan Commission on Law Enforcement Standards (SOAHR # 2007-054)

Basic Law Enforcement Training Programs 99-99

Department of State Police

Michigan Commission on Law Enforcement Standards (SOAHR # 2007-055)

Preservice Basic Training Programs 100-100

PROPOSED ADMINISTRATIVE RULES,

NOTICES OF PUBLIC HEARINGS

Department of Environmental Quality

Air Quality Division (SOAHR # 2007-017)

Pm1 18 Prevention of Significant Deterioration of Air Quality 102-117

Department of Environmental Quality

Air Quality Division (SOAHR # 2007-038)

Part 8 Emission Limitations and Prohibitions-Oxides of Nitrogen 118-146

Department of Environmental Quality

OUice of Geological Survey (SOAHR # 2007-046)

Mineral Wells 147-150

Attachment G Page 53 of 70
Revision to the Michigan SIP for Part 18: Prevention of Significant Deterioration of Air Quality

Department of Treasury

Board of Directors (SOAHR # 2007-051)

Michigan Education Trust 151-153

Department of Community Health

Health Policy Regulations & Professions Administration (SOAHR # 2008-006)

Requests for Declaratory Ruling 154-158

OTHER OFFICAL INFORMATION

Department of Labor and Economic Growth

OOice of Financial and Insurance Regulation

Electronic Rate ,md Form Filing and Amendment of 97-010 M

Exemption Order (Notice of Public 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

Attachment G Page 54 of 70
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2008 MR 8- May 15, 2008

PROPOSED ADMINISTRATIVE RULES

SOAHR 2007-017

DEPARTMENT OF ENVIRONMENTAL QUALITY

AIR QUALITY DIVISION

AIR POLLUTION CONTROL

Filed with the Secretary of State on

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

after filing 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. If a 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 per year, at which the unit actually emitted the pollutant during any consecutive 24-month

period selected by the owner or operator within the 5-year period immediately preceding when the

owner or operator begins actual construction 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.

(B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred

while the source was operating above an emission limitation that was legally enforceable during the

consecutive 24-month period.

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(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

ifrequired by paragraph (i)(B) ofthis subdivision.

(ii) For an existing emissions unit, other than an electric utility steam generating unit, baseline actual

emissions means the average rate, in tons per year, at which the emissions unit actually emitted the

pollutant during any consecutive 24-month period selected by the owner or operator within the 10-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.

(B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred

while the source was operating above an emission limitation that was legally enforceable during the

consecutive 24-month period.

(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 of 40 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 I consecutive 24-month period shall be used to determine the baseline actual emissions for the

emissions units being changed. A different consecutive 24-month period may be used for each regulated

new source review pollutant.

(E) The average rate shall not be based on any consecutive 24-month period for which there is

inadequate information for determining annual emissions, in tons per year, and for adjusting this amount

ifrequired by subparagraphs (B) and (C) ofthis paragraph.

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

increase that will result from the initial construction and operation ofsuch unit shall equal zero; and

thereafter, for all other purposes, shall equal the unit's potential to emit.

(iv) For a plantwide applicability limit for a 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) ofthis 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) (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 greater than

1 microgram per cubic meter (annual average) ofthe pollutant for which the minor source baseline date

is established.

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(ii) Area redesignations under section 107(d)(l) (D) or (E) ofthe clean air act shall not intersect or be

smaller than the area ofimpact of any major stationary source or major modification which does either

ofthe following:

(A) Establishes a minor source baseline date.

(B) Is subject to PSD 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 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 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 after the

major source baseline date.

(B) Actual emissions increases and decreases at any stationary source occurring after the 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 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 ofreduction for each regulated new source review

pollutant, which would be emitted from any proposed major stationary source or major modification

which the department -- on a case-by-case basis, taking into account energy, environmental, and

economic impacts and other costs -- determines is achievable for such source or modification through

application of production processes or available methods, systems, and techniques, including fuel

cleaning or treatment or innovative fuel combination techniques for control ofthe 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 336.2801a. Ifthe department determines that technological or economic

limitations on the application ofmeasurement 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

104

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2008 MR 8- May 15,2008

vessel. Pollutant-emitting 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 ofsulfur 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% ofthe total cost ofthe demonstration project.

(j) [Reserved]

(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 of

the 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 ofthe

source to be completed within a reasonable time.

(1) "Complete" means, in reference to an application for a permit, that the application 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 ofthe 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 ofthe pollutant mass emissions rate in terms of mass per unit of

time.

(p) "Continuous parameter monitoring system" or "CPMS" means all ofthe equipment necessary to

meet the data acquisition and availability requirements ofthese 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.

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(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 existing emissions unit that is replaced. A

replacement unit shall meet all of the following criteria:

(A) The emissions unit is a reconstructed unit if the replacement of components of an existing

facility is to such an extent that the fixed capital cost of the new components exceeds 50% of the

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.

(B) The emissions unit is identical to or functionally equivalent to the replaced emissions unit.

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

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

otherwise permanently disabled, or permanently barred from operation by a permit that is

enforceable as a practical matter. 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 of

flares during startup, shutdown, or malfunction permitted under such a standard, or a flare that serves to

control emissions of waste streams comprised predominately of hydrocarbons and containing not more

than 230 milligrams per dry standard cubic meter hydrogen sulfide.

(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 ofIndians subject

to the jurisdiction ofthe United States and recognized by the United States as possessing power ofselfgovernment.

(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.

(B) A significant net emissions increase ofthat pollutant from 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 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 ofthe following:

(A) Routine maintenance, repair, and replacement.

(B) 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 under the Federal Power Act.

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

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

municipal solid waste.

(E) Use of an alternative fuel or raw material by a stationary source which meets either 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 PSD regulations or R 336.1201(l)(a).

(2) The source is approved to use under any permit issued under PSD regulations or under

R 336.1201(l)(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 PSD regulations or R 336.1201(l)(a).

(G) Any change in ownership at a stationary source.

(H) [Reserved]

(I) The installation, operation, cessation, or removal of a temporary clean coal technology

demonstration project, provided that the project complies with both 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 after the project is terminated.

(1) 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.

(B) February 8, 1988, for nitrogen dioxide.

(ii) "Minor source baseline date" means the earliest date after the trigger date on which a major

stationary source or a major modification subject to PSD regulations submits a complete 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 pollutant for which increments or other equivalent

measures have been established if both ofthe following occur:

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(A) The area in which the proposed source or modification would construct is designated as attainment

or unclassifiable under section I07(d)(i) (D) or (E) ofthe clean air act for the pollutant on the date of its

complete application under R 336.1201 and PSD 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-I 0

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-I 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 ofmore than 250 million British thermal units per hour heat

input.

(B) Coal cleaning plants with thermal dryers.

(C) Kraft pulp mills.

(D) 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 ofrefuse per day.

(1) 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.

(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.

(2) Charcoal production plants.

(ii) Any stationary source not listed in the previous subdivision which emits, or has the potential to

emit, 250 tons per year 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.

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(v) The fugitive emissions of a stationary source shall not be included in 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 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

subdivision 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 not more than 5 years before the date that the 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 if both ofthe follo\ving occur:

(A) It occurs vlithin a 5 year period.

---fBt--the 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 ofsulfur dioxide, particulate matter, or oxides of

nitrogen that occurs before the applicable minor source baseline date is creditable only ifit 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.

(B) 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 provisions definition of actual emissions in R 336.11 01(b) shall not apply for determining

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

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

(ft) [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

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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 ofmaterial combusted, stored, or processed, shall be treated as part ofits design if

the 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.

OJ) "Prevention ofsignificant deterioration" or "PSD" program means the major source

preconstruction permit program required 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 under this program is a major

NSRpermit.

(kk) "Project" means a physical change in, or change in method of operation of, an existing major

stationary source.

(11) "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 (l2-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 under the state implementation plan.

(B) Include fugitive emissions to the extent quantifiable and emissions associated with startups,

shutdowns, and malfunctions.

(C) Exclude, in calculating any increase in emissions that results from the particular project, that

portion ofthe unit's emissions following the project that an existing unit could have accommodated

during the consecutive 24-month period used to establish the baseline actual emissions 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 of discontinued operation where the unit meets all of

the following criteria:

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(i) The unit was not in operation for the 2-year period before 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 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 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 ofthe

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 ofthe following clean coal technologies:

(A) Atmospheric or pressurized fluidized bed combustion.

(B) 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 ofNovember 15, 1990, as determined by the United States environmental protection

agency, in consult~tion 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 ofJanuary 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 ofrepowering 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 ofthe construction or operation ofthe 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:

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(i) In reference to a net emissions increase or the 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 per year.

(C) Sulfur dioxide: 40 tons per year.

(D) Particulate matter: 25 tons per year of particulate matter emissions; IS tons per year of PM-I 0

emiSSIOns.

(E) Ozone: 40 tons per year of volatile 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 per year.

(1) Total reduced sulfur, including hydrogen sulfide: 10 tons per year.

(K) Reduced sulfur compounds, including hydrogen sulfide: 10 tons per year.

(L) Municipal waste combustor organics, measured as total tetra- through octa-chlorinated dibenzo-pdioxins and dibenzofurans: 3.2 x 10-6 megagrams per year or 3.5 x 10-6 tons per year.

(M) Municipal waste combustor metals, measured as particulate matter: 14 megagrams per year or IS

tons per year.

(N) Municipal waste combustor acid gases, measured as sulfur dioxide and hydrogen chloride: 36

megagrams per year or 40 tons per year.

(0) Municipal solid waste landfill emissions, measured as nonmethane organic compounds: 45

megagrams per year or 50 tons per year.

(ii) Significant means, 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) Significant also means 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 greater than I 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 after the 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.

(2) Ifthe proposed major stationary source or major 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 if the 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 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 of the following occurs:

(a) The applicant submits a written certification that the applicant has demonstrated to the federal

land manager that the emissions from the proposed major source or major modification would have no

adverse impact on the air quality related values of class I lands, including visibility, notwithstanding that

the change in air quality resulting from emissions from a major source or major modification would

cause or contribute to concentrations, '",hich that would exceed the maximum allowable increases for a

class I area. The department may then, provided that applicable requirements are otherwise met, issue

the permit with emission limitations to assure that emissions ofsulfur dioxide, particulate matter, and

oxides 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-la, annual arithmetic 17

mean

PM-la, 24-hour maximum 30

Sulfur dioxide:

Annual arithmetic mean 20

24-hour maximum 91

3-hour maximum 325

Nitrogen dioxide:

Annual arithmetic mean 25

Eb) A written certification that both the governor and the federal land manager have granted a sulfur

dioxide variance for the federal class I area.

Ec) A written certification that both the governor and the president have granted a sulfur dimcide

variance for the federal class I area.

(b) Ifthe 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

of 24 hours or less, the applicant may obtain approval by providing a written certification that the

applicant has demonstrated to the federal land manager that the emissions from the proposed

major source or major modification would have no adverse impact on the air quality related

values of class I lands, 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 greater than those specified in Table 183 for periods

of 24 hours or less, and the department cannot approve the permit application under R

336.2816(3)(b) because the federal land manager does not concur with the governor's issuance of a

sulfur dioxide variance that is otherwise consistent with R 336.2816(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 of the 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 under R 336.2816(3)(b) or (c), unless the permit includes emission limitations necessary to

assure that emissions ofsulfur 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 (micrograms per cubic meter)

exposure 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 after

August 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 ofR 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) 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 of the

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 of a 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 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 (ll)(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 ofthe 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 monitor the 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 ofregular operations

after the change, or for a period of 10 years following resumption ofregular 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 ifsuch emissions differ from the preconstruction projection. The owner or

operator shall submit the report to the department within 60 days after the end ofsuch 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 differ from the preconstruction projection.

(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 of at least 50% of the 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(1l)(ii)(C), sums to at least 50% of the 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 ofR 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.

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(4) The owner or operator ofthe major source shall make the information required to be documented

and maintained under this rule available for review upon request for inspection by the department or the

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 of Environmental Quality (DEQ), Air Quality Division, will conduct a public

hearing on proposed administrative rules promulgated pursuant to Part 55, Air Pollution Control, of the

Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (Act 451); Part 18,

Prevention of Significant Deterioration (PSD) of Air Quality, R 336.1801, R 336.1816, and R 336.1818.

These amendments are being proposed to meet the requirements of the 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 West Allegan 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 of Administrative Hearings and Rules at http://www.michigan.gov/soahr. Copies of the

rules may also be obtained by contacting the Lansing office at:

Air Quality Division

Michigan Department of Environmental 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 present their views. It is requested that all statements be

submitted in writing for the hearing record. Anyone unable to attend may submit comments in writing

to the address above. Written comments must be received by 5:00 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 of the rules is by authority conferred on the Director of the

DEQ by Sections 5503 and 5512 of Act 451, being Sections 324.5503 and 324.5512 of the Michigan

Compiled Laws, and Executive Order 1995-18. These rules will become effective immediately after

filing with the Secretary of State.

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