1 

TECHNICAL SUPPORT DOCUMENT 

Arkansas CAIR NOX Ozone Season Trading Program 

SIP Revision 

Regulations of the Arkansas Plan of Implementation for 

Air Pollution Control 

Regulation 19 

Chapter 14 – CAIR NOx Ozone Season Trading 

Program General Provisions 

Sections 19.1401 and 19.1404 

March 24, 2014 

FOR FURTHER INFORMATION CONTACT: Ms. Adina Wiley, United States 

Environmental Protection Agency Region 6, Air Permits Section (6PD-R), 1445 Ross 

Avenue, Dallas, Texas, 75202-2733, (214) 665-2115 
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Subject: Review of Revisions to the Arkansas State Implementation Plan 

Regulation 19; Chapter 14 – Sections 19.1401 and 19.1404 

Contents: 

I. Executive Summary 

II. Background for State Submittal 

III. Summary of State Submittal 

IV. Technical Review 

A. Part 51, Appendix V Completeness Determination for the September 16, 2009, 

SIP Revision 

B. Evaluation of the September 16, 2009 Revision with Respect to the Arkansas 

SIP 

C. Evaluation of the Arkansas CAIR NOX Ozone Season Trading Program SIP 

Revision with respect to Section 110(l) of the Clean Air Act 

V. Conclusion 
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I. Executive Summary 

This technical support document (TSD) reviews proposed revisions to the Arkansas State 

Implementation Plan (SIP) concerning the Clean Air Interstate Rule (CAIR) Nitrogen 

Oxides (NOX) Ozone Season Trading Program. 

On December 5, 2008 and June 26, 2009, the Arkansas Pollution Control and Ecology 

Commission adopted revisions to the CAIR NOX Ozone Season Trading Program at 

Regulation 19, Chapter 14, Sections 19.1401 and19.1404. The Governor of Arkansas, 

Mike Beebe, submitted these provisions as a SIP revision in a letter dated September 16, 

2009. The adopted rule updates the incorporation by reference of the CAIR NOX Ozone 

Season Trading Program at 40 CFR part 96, subparts AAAA-HHHH (with the exception 

of subpart EEEE and all references to opt-in units) to include the correcting amendments 

published on October 19, 2007 (72 FR 52190). The adopted rule also corrects an 

abbreviation in the allowance allocation methodology at Section 19.1404(A). 

This review will determine if the revisions to Sections 19.1401 and 19.1404 comply with 

the Clean Air Act and EPA regulations and guidance. 
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II. Background for State Submittal 

Summary of the Clean Air Interstate Rule 

EPA published CAIR on May 12, 2005 (70 FR 25162). In CAIR, EPA determined that 

28 states and the District of Columbia contribute significantly to nonattainment and 

interfere with maintenance of the 1997 national ambient air quality standards (NAAQS) 

for fine particles (PM2.5) and/or the 1997 8-hour ozone NAAQS in downwind states in 

the eastern part of the country. As a result, EPA required those upwind states to revise 

their SIPs to include control measures that reduce emissions of sulfur dioxide (SO2), 

which is a precursor to PM2.5 formation, and/or nitrogen oxides (NOX), which is a 

precursor to both ozone and PM2.5 formation. For jurisdictions that contribute 

significantly to downwind PM2.5 nonattainment, CAIR sets annual state-wide emission 

reduction requirements (i.e., budgets) for SO2 and NOX. Similarly, for jurisdictions that 

contribute significantly to 8-hour ozone nonattainment, CAIR sets state-wide emission 

budgets for NOX for the ozone season (May 1st to September 30th). Under CAIR, states 

may implement these reduction requirements by participating in the EPA-administered 

cap-and-trade programs or by adopting any other control measures. 

 

Additionally, on April 28, 2006, EPA published two additional CAIR-related final rules 

that added the states of Delaware and New Jersey to the list of states subject to CAIR for 

1997 PM2.5 and announced EPA’s final decisions on reconsideration of five issues, 

without making any substantive changes to the CAIR requirements. On October 19, 

2007, EPA amended CAIR to clarify the definition of “cogeneration unit” and, thus, the 

applicability of the CAIR trading program to cogeneration units. 

 

EPA was sued by a number of parties on various aspects of CAIR, and on July 11, 2008, 

the DC Circuit Court found CAIR unlawful. North Carolina v. EPA, 531 F.3d 896 (DC 

Cir. 2008). The Court's original decision vacated CAIR. Id. at 929-30. However, the 

Court subsequently remanded CAIR to EPA without vacatur because it found that 

allowing CAIR to remain in effect until it is replaced would preserve the environmental 

values covered by CAIR. On August 8, 2011, EPA finalized its Cross State Air Pollution 

Rule (Transport Rule) intended to replace the remanded CAIR. However, on August 21, 

2012, the D.C. Circuit issued a decision vacating the Transport Rule. EME Homer City 

Generation, L.P. v. EPA, 696 F.3d 7 (D.C. Cir. 2012). The Court again ordered EPA to 

continue implementing CAIR in the interim pending promulgation of a replacement rule. 

Subsequently, the Supreme Court granted the United States' petition for certiorari and 

agreed to review the D.C. Circuit's decision in EME Homer City, and held oral arguments 

on December 10, 2013. A decision is currently pending. In the meantime, EPA intends to 

act in accordance with the D.C. Circuit’s instruction in EME Homer City to continue 

implementing CAIR. CAIR requirements are in place, its regional control programs are 

operating while EPA develops replacement rules in response to the pertinent court 

decisions, and CAIR requirements remain in effect for Arkansas. The instant actions 

have no impact on the legal status of CAIR or CSAPR. 
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General Overview of CAIR Implementation 

CAIR establishes State-wide emission budgets for SO2 and NOX and is to be 

implemented in two phases. The first phase of NOX reductions started in 2009 and 

continues through 2014, while the first phase of SO2 reductions started in 2010 and 

continues through 2014. The second phase of reductions for both NOX and SO2 starts in 

2015 and continues thereafter. CAIR requires States to implement the budgets by either: 

(1) requiring EGUs to participate in the EPA-administered cap-and-trade programs; or (2) 

adopting other control measures of the State's choosing and demonstrating that such 

control measures will result in compliance with the applicable State SO2 and NOX

budgets. 

The May 12, 2005 and April 28, 2006, CAIR rules provide model rules that States must 

adopt (with certain limited changes, if desired) if they want to participate in the EPAadministered trading programs. With two exceptions, only States that choose to meet the 

requirements of CAIR through methods that exclusively regulate EGUs are allowed to 

participate in the EPA-administered trading programs. One exception is for States that 

adopt the opt-in provisions of the model rules to allow non-EGUs individually to opt into 

the EPA-administered trading programs. The other exception applies to States that 

choose to include all non-EGUs from their NOX SIP Call trading programs in their CAIR 

NOX ozone season trading programs.1

 

States have the flexibility to choose the type of control measures they use to meet the 

requirements of CAIR. EPA anticipated that most States would choose to meet the CAIR 

requirements by selecting an option that requires EGUs to participate in the EPAadministered CAIR cap-and-trade programs. For such States, EPA provides two 

approaches for submitting and obtaining approval for CAIR SIP revisions. States may 

submit full SIP revisions that adopt the model CAIR cap-and-trade rules. If approved, 

these SIP revisions fully replace the CAIR FIPs. Alternatively, States may submit 

abbreviated SIP revisions. These SIP revisions do not replace the CAIR FIPs; however, 

the CAIR FIPs provide that, when approved, the provisions in these abbreviated SIP 

revisions be used instead of or in conjunction with, as appropriate, the corresponding 

provisions of the CAIR FIPs (e.g., the NOX allowance allocation methodology).CAIR is 

scheduled to be implemented in two phases. The first phase of NOX reductions starts in 

2009 and continues through 2014, while the first phase of SO2 reductions starts in 2010 

and continues through 2014. The second phase of reductions for both NOX and SO2

starts in 2015 and continues thereafter. The phased approach provides adequate lead time 

for States to incorporate the new rule into State regulations and allows sources sufficient 

time to comply with the new emission caps. Under CAIR, States will achieve the 

required emissions reductions using one of two options for compliance: 1) require fossilfuel fired boilers to participate in an EPA-administered interstate cap and trade system 

that caps emissions in two stages, or 2) meet an individual State’s air emission limits 

through measures of the State's choosing. 

 

 

1

 Arkansas did not adopt opt-in provisions in the original CAIR SIP submittal. Arkansas is not subject to 

the NOX SIP Call. Therefore, the Arkansas and Louisiana CAIR regulations only pertain to EGUs. 
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The EPA-administered CAIR trading programs are based on the successful cap-and-trade 

dynamics of the Acid Rain Program. EPA has established State emission budgets for 

NOX annual emissions, NOX ozone season emissions, and SO2 emissions. The State 

budgets are in tons of pollutant and provide a cap for each State. Each State allocates the 

emissions budgets for each pollutant to participating sources in the State. Participating 

sources can choose to operate at their allocated emissions level, above, or below it. If a 

source chooses to operate above its allocation amount then the source must obtain 

additional allowances to demonstrate compliance with the program. If a source chooses 

to operate below its allocation amount then the source has a surplus of allowances that 

can be sold to another participating source or banked for future use. 

How does the Clean Air Interstate Rule NOX Annual and Ozone Season Trading 

Programs Work? 

Under both the NOX annual and ozone season trading programs, a CAIR allowance 

represents the authorization to emit one ton of NOX, regardless of the CAIR phase in 

which the allowance is allocated. Compliance is demonstrated separately each control 

period for the NOX annual and ozone season programs. 

How does the Clean Air Interstate Rule SO2 Trading Program Work? 

The SO2 model rule is designed to satisfy the ongoing statutory requirements of the Title 

IV Acid Rain SO2 cap and trade program. As a result, the model SO2 cap and trade rule 

builds on and coordinates with the Title IV SO2 program to ensure that the required 

reductions under CAIR are achieved while preserving the efficacy of the Title IV 

program. The model CAIR SO2 cap and trade program will utilize the Title IV 

allowances for compliance at a ratio of 2 allowances per ton of emissions for allowances 

allocated for 2010 through 2014, and 2.86 allowances per ton of emissions for allowances 

allocated for 2015 or thereafter. Title IV allowances will continue to be freely 

transferable among sources covered by the Acid Rain Program and sources covered by 

the model SO2 cap and trade program under CAIR. However, each Title IV allowance 

used to comply with Title IV will be removed from the source’s allowance tracking 

system and cannot be used again for compliance, either in the CAIR model SO2 cap and 

trade program or the Acid Rain Program. 

 
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III. Summary of State Submittal 

On May 12, 2005, EPA found that Arkansas contributed significantly to the transport of 

8-hour ozone emissions to downwind counties in Texas. Thus, Arkansas was required to 

address CAIR requirements for NOX ozone season emissions. To address the concerns of 

interstate transport, the ADEQ initiated a stakeholder process to work with affected 

industry and EPA Region 6. As a result of the stakeholder process, ADEQ submitted a 

full CAIR NOX Ozone Season SIP revision on August 10, 2007 that incorporated by 

reference the CAIR NOX Ozone Season Trading Program at 40 CFR Part 96, subparts 

AAAA-HHHH, with the exception of EEEE and all references to opt-in units. The full 

CAIR NOX ozone season SIP revision included provisions to replace the allowance 

allocation methodology at EEEE. 

EPA approved the full CAIR NOX ozone season SIP revision through a direct final 

rulemaking action on September 26, 2007 (72 FR 54556). Because EPA received no 

comments on the direct final notice, the AR CAIR NOX Ozone Season Trading Program 

went into effect on November 26, 2007. 

ADEQ presented proposed revisions to the CAIR NOX Ozone Season Trading Program 

on April 24, 2008 to interested stakeholders. After receiving feedback from stakeholders, 

ADEQ proceeded with rulemaking and proposed revisions to the CAIR NOX Ozone 

Season Trading Program on May 26, 2008. The proposed revisions update the 

incorporation by reference of the CAIR NOX Ozone Season Trading Program at 40 CFR 

part 96, subparts AAAA-HHHH (with the exception of subpart EEEE and all references 

to opt-in units) to include the correcting amendments published on October 19, 2007 (72 

FR 52190). The proposal also corrected an abbreviation in the allowance allocation 

methodology at Section 19.1404(A). EPA submitted supportive comments on July 3, 

2008. 

ADEQ did not proceed with adoption of the revisions because of the July 11, 2008, 

vacatur of the CAIR and CAIR FIPs by the U.S. Court of Appeals for the D.C. Circuit. 

ADEQ resumed rulemaking after the Court remanded CAIR to the EPA. On June 26, 

2009, ADEQ adopted the revisions that were proposed May 26, 2008. Governor Beebee 

submitted these SIP revisions on September 16, 2009. 

Incorporation by Reference 

The Arkansas CAIR NOX Ozone Season Trading Program SIP revision at section 

19.1401 incorporates by reference 40 CFR Part 96, Subparts AAAA – HHHH, with the 

exception of EEEE, as promulgated by EPA on May 12, 2005, and further revised on 

April 28, 2006, December 13, 2006, and October 19, 2007. Additionally, section 

19.1401 states that Subpart IIII and all references to opt-in units are not incorporated into 

the Arkansas SIP. 

Allowance Allocation Methodology 

Sections 19.1402 – 19.1404 of the Arkansas CAIR NOX Ozone Season Trading Program 
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SIP revision establish the NOX ozone season allowance allocation methodology that is to 

be used in place of 40 CFR Part 96, Subpart EEEE. Sections 19.1402 and 19.1403 were 

not revised by ADEQ in the September 16, 2009 SIP revision. These Sections are 

presented below to provide information about the program, they are not under review. 

State Ozone Season Trading Budget 

Section 19.1402 establishes that the Arkansas NOX Ozone Season budget is 11,515 tons 

per control period from 2009-2014 and 9,596 per control period starting with the 2015 

control period. These budgets are as listed in 40 CFR 51.123(q)(2) (11,515 tons in 2009-

2014 and 9,596 tons in 2015 and thereafter); ensuring that the Arkansas allocation 

methodology will not allocate more allowances than the state NOX ozone season budget, 

consistent with 40 CFR 51.123. 

Allowance Allocation Timing Requirements 

Section 19.1403 establishes the dates by which the ADEQ must submit NOX ozone 

season allocations to EPA for recordation in CAIR compliance accounts. Section 

19.1403 is divided further based on operating history; 19.1403(A) provides the allowance 

allocation timing for the EGUs with a baseline gross electric generation as defined in 

19.1404(A), and 19.1403(B) provides the allowance allocation timing for the EGUs 

without a baseline gross electric generation. No later than April 30, 2007, the ADEQ will 

determine and submit to the EPA the CAIR NOX ozone season allowances for the control 

periods 2009, 2010, and 2011, for EGUs with a baseline gross electric generation. 

Additionally for the EGUs with a baseline gross electric generation, the ADEQ will 

determine and submit to the EPA the CAIR NOX ozone season allowances by October 

31, 2008, for the year 2012, and by October 31 of each year thereafter for the 4th year 

after the notification deadline. For EGUs without a baseline gross electric generation, the 

ADEQ will determine and submit to EPA the NOX ozone season allowance allocations 

by July 31 of the year for which the allowances are allocated. 

Determining Baseline Gross Electric Generation 

Baseline gross electric generation is determined in accordance with section 19.1404(A) 

for CAIR units that have operated each calendar year during a period of five or more 

calendar years. The baseline gross electric generation is the average of the three highest 

amounts of a CAIR unit’s control period gross electrical output over the five years 

immediately preceding the year in which allocations are due to EPA. If a generator is 

served by two or more units, the gross electrical output of the generator will be 

apportioned to each unit based on the unit’s share of the total control period heat input for 

that year. 

The ADEQ submitted a letter to the EPA dated June 7, 2007, to further explain section 

19.1404(A). Once a unit has operated for five or more calendar years before the 

allocation submittal deadline and had a calculable baseline gross electric generation, the 

unit cannot be considered a non-baseline unit in the future. For example, if a unit 

operated from 2000-2006, the unit would have a calculable baseline gross electric 
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generation used for the 2007, 2008, and 2009 control period allocations. If the unit 

shutdown or suspended operations for 2007 and started operating again in 2008, the unit 

would still be considered a baseline unit. The year 2007 would have zero electric output 

recorded in the baseline calculation. 

The ADEQ revised Section 19.1404(A) to correct the unit abbreviation used in 

determining the baseline gross electric generation. The rule has been revised to correctly 

use MWh rather than MW, as was initially adopted. 

Allowance Allocation Methodology for Units with Baseline Gross Electric Generation 

Section 19.1404(c) establishes the allocation methodology for CAIR units with a baseline 

gross electric generation as calculated pursuant to section 19.1404(A). For each control 

period, the ADEQ will allocate to all units with a calculable baseline a total amount of 

allowances equal to 95% of the total ozone season budget established in 19.1402. These 

units will receive allowances proportional to their share of the total baseline gross electric 

generation for all such units; i.e., the ratio of the unit’s baseline gross electric generation 

to the total baseline gross electric generation multiplied by the total amount of allowances 

allocated each control period to units with baseline data. 

Allowance Allocation Methodology for Units without Baseline Gross Electric Generation 

Section 19.1404(D) establishes the allocation methodology for CAIR units without a 

calculable baseline. For these units, the ADEQ will establish a new unit set-aside for 

each control period equal to 5% of the total ozone season budget in section 19.1402. 

Starting with the later of the 2009 control period or the first control period after the 

control period in which the CAIR unit commences commercial operation, the Designated 

Representative for the non-baseline units may submit a request to the ADEQ for the setaside allowances. This request must be submitted to the ADEQ no later than January 1st

of the first control period in which the new unit set-aside allowances are requested and 

after the date in which the new unit commences commercial operation. The request for 

allowances may not exceed the unit’s total tons of NOX emissions during the previous 

control period. 

On or after February 1st of each control period, the ADEQ will determine the total 

amount of new unit set-aside allowances requested. If the total amount of allowances 

requested is less than the total new unit set-aside pool (5% of the overall State budget) the 

ADEQ will allocate the new unit set-aside allowances as requested to each unit. If the 

total amount of requested allowances is greater than the total new unit set-aside pool, the 

ADEQ will determine the allocations by multiplying the ratio of each unit’s requested 

number of allowances to the total amount of requested allowances by the new unit setaside amount. The ADEQ will then notify each unit’s Designated Representative of the 

amount of new unit set-aside allowances the unit will receive. 

If there are allowances remaining in the new unit set-aside after the non-baseline units 
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receive their allocations, the ADEQ will allocate these remaining allowances to units 

with calculable baseline gross electric generation. The ADEQ will multiply the 

remaining number of allowances by the ratio of the baseline unit’s allocation for that 

control period to the total amount of allowances allocated to the baseline units (95% of 

the overall State budget in section 19.1402). 

Comments Received on the State Submittal 

ADEQ conducted a public hearing on June 26, 2008, for the proposed revisions to 

Regulation 19 that updated the CAIR NOX Ozone Season Trading Program incorporation 

by reference date and corrected a unit abbreviation. During the public comment period, 

the ADEQ received supportive comments from EPA Region 6. 

The SIP revision submitted for review included a copy of each comment received and 

ADEQ’s analysis and response to each comment. Additionally, the SIP submittal clearly 

identified where revisions were made as a result of comments received. 
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IV. Technical Review 

This technical review of the September 16, 2009 Arkansas CAIR NOX Ozone Season 

Trading Program SIP revision consists of a comparison between the relevant CAA 

requirements and the corresponding sections in the SIP submittal. The submittal is first 

reviewed for completeness as a SIP submittal under Part 51, Appendix V. Second, the 

CAIR revisions are reviewed using the SIP requirements for CAIR specific requirements 

and for CAIR trading program specific requirements. Finally, a section-by-section 

review of the submittal in comparison to 40 CFR Part 51 is presented to determine 

whether the submittal satisfies the requirements for preparation, adoption, and submittal 

of a SIP revision. These analyses produce a written evaluation that was used to make a 

determination of whether or not the Arkansas CAIR NOX Ozone Season Trading 

Program SIP submittal was in agreement with the CAA and other EPA policies or 

guidance. 

A. Part 51, Appendix V Completeness Determination for the September 16, 2009, 

Arkansas SIP Revision 

B. Evaluation of the September 16, 2009 Revisions with respect to the Arkansas SIP 

C. Evaluation of the Arkansas CAIR NOX Ozone Season Trading Program SIP 

Revision with respect to Section 110(l) of the Clean Air Act 

 
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A. Part 51, Appendix V Completeness Determination for the September 16, 

2009, Arkansas SIP Revision 

The criteria for completeness determination are found in Appendix V to Part 51 - Criteria 

for determining the completeness of plan submissions and are outlined below: 

1.0 Purpose: This appendix V sets forth the minimum criteria for determining whether 

a State implementation plan submitted for consideration by EPA is an official 

submission for purposes of review under § 51.103. 

1.1 The EPA shall return to the submitting official any plan or revision thereof which 

fails to meet the criteria set forth in this appendix V, and request corrective action, 

identifying the component(s) absent or insufficient to perform a review of the 

submitted plan. 

1.2 The EPA shall inform the submitting official whether or not a plan submission 

meets the requirements of this appendix V within 60 days of EPA's receipt of the 

submittal, but no later than 6 months after the date which the State was required to 

submit the plan or revision. If a completeness determination is not made by 6 

months from receipt of a submittal, the submittal shall be deemed complete by 

operation of law on the date 6 months from receipt. A determination of 

completeness under this paragraph means that the submission is an official 

submission for purposes of §51.103. 

The attached checklist outlines the basic criteria included under 2.1, 2.2, and 2.3 of 

Appendix V. 
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SIP Completeness Checklist for the September 16, 2009, Arkansas 

SIP Revision 

When preparing a SIP revision request, the SIP reviewer should go through this list to 

help identify that the package submitted to EPA is complete. States can use the check list 

to assure SIP submittals meet Appendix V criteria. 

Administrative Materials (2.1) 

1. The package is sent with a formal submittal letter from the Governor or his or her 

designee requesting EPA's approval of the revision. 

The Arkansas CAIR NOX Ozone Season Trading Program SIP revision was 

submitted by Governor Mike Beebe on September 16, 2009. 

2. Evidence is included that the State has adopted the revision in the State code or 

body of regulations, or that the State has issued the permit, order, consent 

agreement (hereafter document) in final form. This evidence would include the 

date of adoption or final issuance and the effective date of revision, if different 

from adoption/issuance date. 

The revisions to Regulation Number 19, Regulations of the Arkansas Plan of 

Implementation for Air Pollution Control, were adopted by the Arkansas 

Pollution Control and Ecology Commission on December 5, 2008 and June 26, 

2009, and became effective on January 15, 2009 and July 18, 2009, respectively. 

3. Evidence is included that the State has necessary legal authority under State law 

to adopt and implement the revision, e.g., a citation of the appropriate State 

authority. 

The authority for promulgating changes to the Arkansas State Implementation 

Plan, Regulation Number 19 is found in the Arkansas Code Annotated (A.C.A.) 

§8-1-203(b)(1). 

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

and incorporation by reference into the SIP including an indication of the changes 

made to the existing approved plan where applicable. The submittal shall 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 shall, whenever possible, be indicated in 

the document itself. 

 

The SIP submittal included a copy of the actual revisions to Regulation 19. The 

SIP submittal also included a copy of the Arkansas Register Transmittal Sheet 

that demonstrates ADEQ submitted the adopted revisions to Regulation 19 for 

publication in the Arkansas Register. 
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5. Evidence is included that the State followed all the procedural requirements of its 

laws and/or its constitution in the conducting and completing the 

adoption/issuance of the plan. 

The SIP submittal included a demonstration by Mike Bates, Air Director of the 

ADEQ, that the ADEQ followed all the procedural requirements of its laws 

and/or its constitution in the conducting and completing the adoption/issuance of 

the plan. Additionally, Michael O’Mally, the Administrative Hearing Officer of 

the Arkansas Pollution Control and Ecology Commission, certified that the rules 

were adopted in compliance with Act 434 of 1967 as amended. 

6. Evidence is included that public notice was given of the proposed changes 

consistent with the procedures approved by EPA, including the date of publication 

of such notice, (e.g., notarized or certified copies of any public notices published 

in newspapers). (The notice should be at least 30 days prior to the public 

hearing(s). 

Notice of public comment period and hearing for the SIP revision was published 

on May 26 and 27, 2008, in the Arkansas Democrat Gazette. A copy of the notice 

published in the Arkansas Democrat Gazette was provided as an example. 

7. A certification is included indicating that public hearing(s) was/were held in 

accordance with the information provided in the public notice(s) and the State's 

laws and constitution, if applicable. 

William Thompson, Chairman of the Arkansas Pollution Control and Ecology 

Commission, certified that the revisions to Regulation 19 were adopted pursuant 

to public notice and hearing, and in consideration of public comments received. 

The State’s legal authority to adopt and implement revisions to the SIP is found in 

the Arkansas Code Annotated (A.C.A.) §8-1-203(b)(1). 

 

8. A compilation of public comments and the State's response is included. 

During the public comment period, the ADEQ received comments from EPA 

Region 6. The SIP submittal included a copy of all public comments and the 

State’s responsiveness summary. 
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Technical Support (2.2) 

The State should include the following technical information in its SIP revision request 

package. 

1. Identification of all regulated pollutants affected by the revision is included. 

This submittal incorporates by reference the Federal CAIR NOX ozone season 

trading program, with the exception of the Federal allowance allocation 

provisions. This SIP revision also establishes the Arkansas allowance allocation 

methodology to be used in place of the Federal methodology in the CAIR NOX

Ozone Season Trading Program. 

2. Identification of the locations of affected sources including the EPA 

attainment/nonattainment designation of the locations and the status of the 

attainment plan for the affected area(s) is included. 

CAIR subject sources are located throughout the State of Arkansas. Participation 

in CAIR is not contingent upon an area’s attainment or nonattainment 

designation. 

3. Quantification of the changes in SIP allowable emissions from the affected 

sources is included. (Examples include estimates of changes in current actual 

emissions from affected sources and/or, where appropriate, quantification of 

changes in actual emissions from affected sources through calculations of the 

differences between certain baseline levels and allowable emissions anticipated if 

the revisions were approved.) 

 The September 16, 2009 AR CAIR NOX Ozone Season Trading Program SIP 

revision does not revise the SIP-approved Section 19.1402. Section 19.1402

establishes that the statewide NOX ozone season emission budgets will be 

equivalent to the tons of NOX emissions listed for Arkansas in the State ozone 

season trading budgets under 40 CFR 51.123 and 96.340. EPA’s technical 

support for CAIR provided the estimated change in actual NOX emissions from 

the affected sources. 

4. Demonstration is included that the NAAQS/PSD increments/RFP demonstration 

and visibility as applicable would be protected if the revision were approved and 

implemented. 

EPA provided demonstration in the May 12, 2005, final CAIR that the cap and 

trade mechanisms would provide for a decrease in emission levels on a national 

level (70 FR 25195 and its accompanying technical support). 
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5. FOR REDESIGNATIONS: 

 a. Is there a fully approved maintenance plan for the primary ambient air 

quality standards for at least 10 years as required by §175A of the Clean 

Air Act? 

 Not applicable. 

 b. Are contingency measures included? 

 Not applicable. 

7. Modeling information, if applicable, is required to support the proposed revision. 

EPA provided modeling information in the development and proposal of the CAIR 

programs; this modeling supported the inclusion of the State of Arkansas in 

CAIR. 

7. Evidence is included where necessary, that emission limitations are based on 

continuous emission reduction technology (e.g., add-on controls, 

industrial/process equipment designs, reformulated materials, etc.). 

Evidence of emission limitations based on CEM technology is not applicable. 

However, since Arkansas has incorporated by reference the Federal CAIR NOX

Ozone Season Trading Program monitoring and reporting requirements at 40 

CFR part 96, subpart HHHH, the CAIR sources in Arkansas must comply with the 

requirements in 40 CFR part 75. 

8. Evidence is included indicating that a SIP revision contains emission limitations, 

work practice standards, and recordkeeping/reporting requirements to ensure 

stated emission levels. 

The State’s rules are clear about what entities are affected, the dates by which the 

ADEQ must submit the NOX ozone season allocations to EPA, and the methods 

the ADEQ will use in calculating the allocations. The methodology for 

calculating an affected entity’s NOX ozone season allowances is replicable 

because the methodology relies on the gross electric generation and emissions 

determined from monitoring and recordkeeping requirements in 40 CFR part 75. 

9. Compliance/enforcement strategies including how compliance will be determined 

in practice (including at what frequency). 

Determination of compliance is specified on case-by-case basis in each individual 

permit. Each individual permit holder is required to hold allowances at the end 

of the control period that total the amount of NOX ozone season tons emitted 

during the control period. 
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10. As appropriate, special economic and technological justifications are included per 

applicable EPA policies or an explanation why such justifications are not 

necessary should be included. For example, requests for alternative RACT may 

require such justification. 

These justifications are not applicable for this CAIR SIP revision. EPA provided 

economic and technical analyses in the development of the CAIR FIP programs. 

Exceptions (2.3) 

The EPA, for purposes of expediting the review of the plan, has adopted a procedure 

referred to as “parallel processing.” Parallel processing allows a State to submit the plan 

prior to actual adoption by the State and provides an opportunity for the State to consider 

EPA comments prior to submission of a final plan for final review and action. 

Governor Beebe did not request parallel processing of this SIP revision. Therefore, this 

exception does not apply to the Arkansas CAIR NOX Ozone Season Trading Program SIP 

revision.

The September 16, 2009 SIP Submittal revising the Arkansas CAIR NOX Ozone 

Season Trading Program meets the completeness criteria at Part 51, Appendix V, 

Sections 2.1 – 2.3. 
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B. Evaluation of the September 16, 2009, Submittal with respect to the 

Arkansas SIP

Arkansas is subject to the requirements of 40 CFR 51.123(q) – (cc). Arkansas chose to 

adopt a CAIR SIP revision that incorporated by reference the CAIR NOX Ozone Season 

Trading Program at 40 CFR Part 96, Subparts AAAA – HHHH; with the exception of 

EEEE, which the ADEQ replaced with a state-specific allocation methodology in the 

Arkansas SIP. EPA approved the Arkansas CAIR NOX Ozone Season SIP on September 

26, 2007, as fully implementing the requirements of the CAIR NOX Ozone Season 

Program by requiring certain EGUs to participate in the EPA-administered CAIR capand-trade program for NOX ozone season emissions. See 72 FR 54556. The record for 

this decision includes EPA’s analysis of how the Arkansas CAIR NOX Ozone Season SIP 

and allocation methodology satisfy all required elements of the CAA and CAIR. 

The September 16, 2009, SIP revision amended the existing SIP-approved CAIR NOX

Ozone Season SIP and allocation methodology, but did not replace any of the 

fundamental elements of the approved Arkansas CAIR NOX Ozone Season Program. As 

such, EPA is not going to evaluate the basis for the original approval of the Arkansas 

CAIR NOX Ozone Season Program in this TSD. Rather, this review focuses on the 

changes submitted on September 16, 2009, to the existing Arkansas SIP and whether 

these changes are consistent with the CAA and EPA’s regulations and guidance 

pertaining to CAIR. 

ADEQ has submitted one revision to the Arkansas CAIR NOX Ozone Season regulations 

covering two separate rule adoptions: 

 ADEQ adopted revisions to Regulation 19, Chapter 14 on December 5, 2008. 

These revisions were submitted on September 16, 2009. 

 ADEQ also adopted revisions t Regulation 19, Chapter 14 on June 26, 2009 and 

submitted these revisions on September 16, 2009. 

The following table provides a line item evaluation of each of the submitted revisions 

against the SIP-approved Arkansas CAIR NOX Ozone Season Program. 
19 

Table 1: Analysis of Revisions to the AR CAIR NOX Ozone Season Program 

SIP Approved 9/26/2007 at 72 FR 54556 As adopted by ADEQ on June 22, 2007 

Adopted on December 5, 2008 Submitted on September 16, 2009 

Adopted on June 26, 200Submitted on September 

Reg. 19.1401 Adoption of Regulations40 CFR Part 96, Subparts AAAA-HHHH for the CAR NO, Ozone Season Trading Program, as finalized by the U.S. Environmental Protection Agency (EPA) on May 12, 2005, and further revised by EPA on April 28, 2006, with correcting amendments on December 13, 2006, are herein incorporated by reference with the exception of Subpart EEEE (CAIR NOx Ozone Season Allowance Allocations) and all references to CAR NO, Ozone Season Opt-in Units, which, along with Subpart 1111 (CAR NOx Ozone Season Optin Units), are not incorporated. The following regulations replace 40 CFR 96 Subpart EEEE. 

No change 40 CFR Part 96, Subparts 

CAIR NO, Ozone Season finalized by the U.S. EnviAgency (EPA) on May 12revised by EPA on April 2amendments on Decembe

October 19,2007, are herereference with the excepti(CAIR NOx Ozone SeasoAllocations) and all refereOzone Season Opt-in Units, whic1111 (CAIR NO, Ozone Snot incorporated. The follreplace 40 CFR 96 SubpaThis revision is approvablmost recent federal changcogeneration revisions. 

Reg. 19.1402 State Trading BudgetThe Arkansas State trading budgets for annual allocations for CAIR NOx Ozone Season allowances have been set by EPA as follows: for the control periods of 2009 through 2014, 11,515 tons per control period; and for the control periods for 2015 and beyond, 9,596 tons per control period. The total number of allowances allocated by the State of Arkansas shall not exceed these budgets for their respective control periods. 

No change No change 

Reg. 19.1403 Timing Requirements for CAIR NOx Ozone Season Allowance Allocations(A). For EGUs allocated allowances under Reg. 

19.1404(B) and (C), the Department will 

No change No change 
20

SIP Approved 9/26/2007 at 72 FR 54556 As adopted by ADEQ on June 22, 2007 

Adopted on December 5, 2008 Submitted on September 16, 2009 

Adopted on June 26, 200Submitted on September 

determine and notify the Administrator of each unit's allocation of CAR NO, Ozone Season allowances by April 30,2007, for 2009,2010, and 201 1 and by October 31,2008, and October 3 1 of each year thereafter for the 4th year after the notification deadline. 

(B). For EGUs allocated allowances under Reg. 

19.1404(D), the Department will determine and notify the Administrator of each unit's allocation of CAIR NOx Ozone Season allowances by July 3 1 of the year for which the CAR NO, Ozone Season allowances are allocated. 

No change No change 

Reg. 19.1404 CAIR NOx Ozone Season Allowance Allocations(A). The baseline gross electric generation (in 

MW) used with respect to CAIR NOx Ozone Season allowance allocations under paragraph (B) of this section for each CAIR NOX Ozone 

Season unit that has operated each calendar year during a period of 5 or more consecutive calendar years, the average of the 3 highest amounts of the unit's control period gross electrical output over the 5 years immediately preceding the year in which allocations are due to EPA, provided that gross electrical output of a generator served by two or more units will be attributed to each unit in proportion to each unit's share of the total control period heat input of such units for the year. For the allocations allocated for 2009, 2010, 2011, baseline data will be determined using gross electrical output for years 2000 through 2004. 

(A). The baseline gross electric generation (in 

MW) used with respect to CAIR NOx Ozone Season allowance allocations under Reg. 

19.1404(B) paragraph (B) of this section for each CAIR NOx Ozone Season unit that has operated each calendar year during a period of 5 or more consecutive calendar years, the average of the 3 highest amounts of the unit’s control period gross electrical output over the 5 years immediately preceding the year in which allocations are due to EPA, provided that gross electrical output of a generator served by two or more units will be attributed to each unit in proportion to each unit’s share of the total control period heat input of such units for the year. For the allocations allocated for 2009, 2010, 2011, baseline data will be determined using gross electrical output for years 2000 through 2004. 

(A). The baseline gross el

MWh) used with resp

Ozone Season allowaReg. 19.1404(B) parafor each CAIR NOx has operated each calperiod of 5 or more cyears, the average of the unit’s control peroutput over the 5 yeapreceding the year in due to EPA, provided output of a generator units will be attributeproportion to each uncontrol period heat inyear. For the allocati2010, 2011, baseline 
21

SIP Approved 9/26/2007 at 72 FR 54556 As adopted by ADEQ on June 22, 2007 

Adopted on December 5, 2008 Submitted on September 16, 2009 

Adopted on June 26, 200Submitted on September 

This revision is non-substantive correction for formatting. Revision is approvable.

using gross electrical through 2004. 

This revision is non-substformatting. Revision is ap

(B). With regard to the timing requirements 

contained in Reg. 19.1403, for each control period in 2009 and thereafter, the Department will allocate to all CAIR NOx Ozone Season units in the State that have baseline gross electric generation (as determined under paragraph (A) of this section) a total amount of CAIR NOX Ozone Season allowances equal 

to 95 percent for a control period, of the tons of NOx emissions in the State trading budget under Reg. 19.1402 (except as provided in paragraph (E) of this section). 

(B). With regard to the timing requirements 

contained in Reg. 19.1403, for each control period in 2009 and thereafter, the Department will allocate to all CAIR NOx Ozone Season units in the State that have baseline gross electric generation (as determined under Reg. 

19.1404(A) paragraph (A) of this section) a total amount of CAIR Nox Ozone Season allowances equal to 95 percent for a control period, of the tons of Nox emissions in the State trading budget under Reg. 19.1402 (except as provided in Reg. 19.1404 (E) paragraph (E) of this section). 

This revision is non-substantive correction for formatting. Revision is approvable.

No further changes 

(C). The Department will allocate CAIR NOX

Ozone Season allowances to each CAIR NOX

Ozone Season unit under paragraph (B) of this section in an amount determined by multiplying the total amount of CAIR NOx Ozone Season allowances allocated under paragraph (B) of this section by the ratio of the baseline gross electric generation of such CAIR NOx Ozone Season unit to the total amount of baseline gross electric generation of all such CAIR NO, Ozone Season units in the State and rounding to the nearest whole allowances as appropriate. 

(C). The Department will allocate CAIR NOx 

Ozone Season allowances to each CAIR Nox Ozone Season unit under Reg. 19.1404(B) 

paragraph (B) of this section in an amount determined by multiplying the total amount of CAIR NOx Ozone Season allowances allocated under paragraph (B) of this section by the ratio of the baseline gross electric generation of such CAIR NOx Ozone Season unit to the total amount of baseline gross electric generation of all such CAIR NOx Ozone Season units in the State and rounding 

No further changes 
22

SIP Approved 9/26/2007 at 72 FR 54556 As adopted by ADEQ on June 22, 2007 

Adopted on December 5, 2008 Submitted on September 16, 2009 

Adopted on June 26, 200Submitted on September 

to the nearest whole allowances as appropriate. 

This revision is non-substantive correction for formatting. Revision is approvable.

(D). For each control period in 2009 and thereafter, 

the Department will allocate CAIR NOX

Ozone Season allowances to CAIR NOx Ozone Season units in the State that do not yet have a baseline gross electric generation (as determined under paragraph (A) of this section), in accordance with the following procedures: 

(D). For each control period in 2009 and 

thereafter, the Department will allocate CAIR Nox Ozone Season allowances to CAIR NOx Ozone Season units in the State that do not yet have a baseline gross electric generation (as determined under Reg. 19.1404(A) 

paragraph (A) of this section), in accordance with the following procedures: 

This revision is non-substantive correction for formatting. Revision is approvable.

No further changes 

1. The Department will establish a separate 

new unit set-aside for each control period. Each new unit set-aside will be allocated CAIR NOx Ozone Season allowances equal to 5 percent of the amount of tons of NOx emissions in the State trading budget under Reg. 19.1402. 

No changes No changes 

2. The CAIR designated representative of 

such a CAIR NOX Ozone Season unit 

may submit to the Department a request, in a format specified by the Department, to be allocated CAIR NOX Ozone Season 

allowances, starting with the later of the control period in 2009 or the first control period after the control period in which the CAIR NOx Ozone Season unit commences commercial operation and until the first control period for the which the unit is allocated CAIR NOX Ozone 

Season allowances under paragraph (B) 

2. The CAIR designated representative of 

such a CAIR NOx Ozone Season unit may submit to the Department a request, in a format specified by the Department, to be allocated CAIR NOx Ozone Season allowances, starting with the later of the control period in 2009 or the first control period after the control period in which the CAIR NOx Ozone Season unit commences commercial operation and until the first control period for the which the unit is allocated CAIR NOx Ozone Season allowances under Reg. 

No further changes 
23

SIP Approved 9/26/2007 at 72 FR 54556 As adopted by ADEQ on June 22, 2007 

Adopted on December 5, 2008 Submitted on September 16, 2009 

Adopted on June 26, 200Submitted on September 

of this section. The CAIR NOX Ozone 

Season allowance allocation request must be submitted on or before January 1 of the first control period for which the CAIR NOX Ozone Season allowances are 

requested and after the date on which the CAIR NOX Ozone Season unit commences commercial operation. 

19.1404(B) paragraph (B) of this section. 

The CAIR Nox Ozone Season allowance allocation request must be submitted on or before January 1 of the first control period for which the CAIR NOx Ozone Season allowances are requested and after the date on which the CAIR NOx Ozone Season unit commences commercial operation. 

This revision is non-substantive correction for formatting. Revision is approvable.

3. In a CAIR NOx Ozone Season allowance 

allocation request under paragraph (D)(2) of this section, the CAIR designated representative may request for a control period CAIR NOx Ozone Season allowances in an amount not exceeding the CAIR NOx Ozone Season unit's total tons of NOx emissions during the control period immediately before such control period. 

3. In a CAIR NOx Ozone Season allowance 

allocation request under Reg. 

19.1404(D)(2) paragraph (D)(2) of this section, the CAIR designated representative may request for a control period CAIR NOx Ozone Season allowances in an amount not exceeding the CAIR NOx Ozone Season unit’s total tons of NOx emissions during the control period immediately before such control period. 

This revision is non-substantive correction for formatting. Revision is approvable.

No further changes 

4. The Department will review each CAIR 

NOx Ozone Season allowance allocation request under paragraph (D)(2) of this section and will allocate CAIR NOx Ozone Season allowances for each control period pursuant to such request as follows: 

4. The Department will review each CAIR 

NOx Ozone Season allowance allocation request under Reg. 19.1404(D)(2) 

paragraph (D)(2) of this section and will allocate CAIR NOx Ozone Season allowances for each control period pursuant to such request as follows: 

This revision is non-substantive correction for formatting. Revision is approvable.

No further changes 
24

SIP Approved 9/26/2007 at 72 FR 54556 As adopted by ADEQ on June 22, 2007 

Adopted on December 5, 2008 Submitted on September 16, 2009 

Adopted on June 26, 200Submitted on September 

a) The Department will accept an allowance 

allocation request only if the request meets, or is adjusted by the Department as necessary to meet, the requirements of paragraphs (D)(2) and (3) of this section. 

a) The Department will accept an allowance 

allocation request only if the request meets, or is adjusted by the Department as necessary to meet, the requirements of Reg. 19.1404(D)(2) and (3) paragraphs 

(D)(2) and (3) of this section. 

This revision is non-substantive correction for formatting. Revision is approvable.

No further changes 

b) On or after February 1 of the control 

period, the Department will determine the sum of the CAIR NOX Ozone Season 

allowances requested (as adjusted under paragraph (D)(4)(a) of this section) for the control period. 

b) On or after February 1 of the control 

period, the Department will determine the sum of the CAIR NOx Ozone Season allowances requested (as adjusted under Reg. 19.1404(D)(4)(a) paragraph 

(D)(4)(a) of this section) for the control period. 

This revision is non-substantive correction for formatting. Revision is approvable.

No further changes 

c) If the amount of CAIR NOx Ozone 

Season allowances in the new unit setaside for the control period is greater than or equal to the sum under paragraph (D)(4)(b) of this section, then the Department will allocate the amount of CAIR NOX Ozone Season allowances 

requested (as adjusted under paragraph (D)(4)(a) of this section) to each CAIR NOx Ozone Season unit covered by paragraph (D)(4)(a) of this section. 

c) If the amount of CAIR NOx Ozone 

Season allowances in the new unit setaside for the control period is greater than or equal to the sum under Reg. 

19.1404 paragraph (D)(4)(b) of this section, then the Department will allocate the amount of CAIR NOx Ozone Season allowances requested (as adjusted under Reg. 19.1404 paragraph (D)(4)(a) of this section) to each CAIR NOx Ozone Season unit covered by Reg. 19.1404 paragraph (D)(4)(a) of this section. 

This revision is non-substantive correction for formatting. Revision is approvable.

No further changes 

d) If the amount of CAIR NOx Ozone 

Season allowances in the new unit setaside for the control period is less than 

d) If the amount of CAIR NOx Ozone 

Season allowances in the new unit setaside for the control period is less than 

No further changes 
25

SIP Approved 9/26/2007 at 72 FR 54556 As adopted by ADEQ on June 22, 2007 

Adopted on December 5, 2008 Submitted on September 16, 2009 

Adopted on June 26, 200Submitted on September 

the sum under paragraph (D)(4)(b) of this section, then the Department will allocate to each CAIR NOX Ozone Season unit 

covered by an allowance allocation request accepted under paragraph (D)(4)(a) of this section the amount of the CAIR NOX Ozone Season allowances 

requested (as adjusted under paragraph (D)(4)(a) of this section), multiplied by the amount of CAIR NOx Ozone Season allowances in the new unit set-aside for the control period, divided by the sum determined under paragraph (D)(4)(b) of this section, and rounded to the nearest whole allowance as appropriate. 

the sum under Reg. 19.1404 paragraph 

(D)(4)(b) of this section, then the Department will allocate to each CAIR NOx Ozone Season unit covered by an allowance allocation request accepted under Reg. 19.1404 paragraph (D)(4)(a) of this section the amount of the CAIR NOx Ozone Season allowances requested (as adjusted under Reg. 19.1404 paragraph (D)(4)(a) of this section), multiplied by the amount of CAIR NOx Ozone Season allowances in the new unit set-aside for the control period, divided by the sum determined under Reg. 19.1404 paragraph (D)(4)(b) of this section, and rounded to the nearest whole allowance as appropriate. 

This revision is non-substantive correction for formatting. Revision is approvable.

e) The Department will notify each CAIR 

designated representative that submitted an allowance allocation request of the amount of CAIR NOX Ozone Season 

allowances (if any) allocated for the control period to the CAIR NOx Ozone Season unit covered by the request. 

No changes No changes 

(E). If, after completion of the procedures under 

paragraphs (D)(4) of this section for a control period, any unallocated CAIR NOx Ozone Season allowances remain in the new unit set-aside for the control period, the Department will allocate to each CAIR NOX

Ozone Season unit that was allocated CAIR 

(E). If, after completion of the procedures 

under Reg. 19.1404 paragraphs (D)(4) of 

this section for a control period, any unallocated CAIR NOx Ozone Season allowances remain in the new unit setaside for the control period, the Department will allocate to each CAIR 

No further changes 
26

SIP Approved 9/26/2007 at 72 FR 54556 As adopted by ADEQ on June 22, 2007 

Adopted on December 5, 2008 Submitted on September 16, 2009 

Adopted on June 26, 200Submitted on September 

NOX Ozone Season allowances under 

paragraph (B) of this section an amount of CAIR NOX Ozone Season allowances equal 

to the total amount of such remaining unallocated CAIR NOX Ozone Season 

allowances, multiplied by the unit's allocation under paragraph (B) of this section, divided by 95 percent of the amount of tons of NOX emissions in the 

State trading budget under Reg. 19.1402, and rounded to the nearest whole allowance as appropriate. 

NOx Ozone Season unit that was allocated CAIR NOx Ozone Season allowances under Reg. 19.1404 paragraph 

(B) of this section an amount of CAIR Nox Ozone Season allowances equal to the total amount of such remaining unallocated CAIR NOx Ozone Season allowances, multiplied by the unit’s allocation under Reg. 19.1404(B) paragraph (B) of this section, divided by 95 percent of the amount of tons of NOx emissions in the State trading budget under Reg. 19.1402, and rounded to the nearest whole allowance as appropriate. This revision is non-substantive correction for formatting. Revision is approvable.

Table 1 above demonstrates that the revisions to the AR CAIR NOX ozone season program at Regulation 19, ChaDecember 5, 2008, and June 26, 2009 and submitted on September 16, 2009 are approvable. These revisions sub

IBR date to reflect the most current federal revisions to the CAIR NOX ozone season program. There are also num

substantive revisions to correct for formatting.
27 

C. Evaluation of the Arkansas CAIR NOX Ozone Season Trading Program SIP 

Revision with respect to Section 110(l) of the Clean Air Act 

Section 110(l) of the CAA states: 

Each revision to an implementation plan submitted by a State under this Act shall 

be adopted by such State after reasonable notice and public hearing. The 

Administrator shall not approve a revision of a plan if the revision would 

interfere with any applicable requirement concerning attainment and reasonable 

further progress (as defined in section 171), or any other applicable requirement 

of this Act. 

EPA approved the Arkansas CAIR NOX Ozone Season Trading Program as part of the 

Arkansas SIP on September 26, 2007. The September 16, 2009, revisions to the Arkansas 

SIP amend the existing SIP-approved CAIR program. EPA developed the CAIR in an 

effort to reduce the transport of SO2 and NOX emissions that contribute significantly to 

nonattainment of the 8-hour ozone and PM2.5 NAAQS. During the development process, 

EPA demonstrated through modeling the projected ozone and PM2.5 nonattainment areas 

in 2010, 2015, and 2020, that CAIR will not interfere with attainment of the standards; 

rather this modeling demonstrated that CAIR in concert with other Federally approved 

control measures will actually bring existing areas of ozone and PM2.5 nonattainment into 

attainment with the ozone and PM2.5 NAAQS.2 Additionally, sources subject to CAIR 

are still bound by their permit conditions under New Source Review and Title V. These 

sources can participate in the cap-and-trade aspects of the CAIR but cannot exceed their 

permit limits for NOX. The Arkansas New Source Review and Title V permitting 

programs are designed such that the issuance of a permit will not interfere with existing 

SIP requirements or with the attainment of a NAAQS. As long as the adopted rules are 

consistent with the SIP development requirements at 40 CFR Part 51 and the specific 

CAIR program requirements, then EPA finds that the program will not interfere with 

attainment or reasonable further progress or any other applicable requirement of the Act. 

 

 

2

 Please see EPA’s analysis titled “Contributions of CAIR/CAMR/CAVR to NAAQS Attainment: Focus on 

Control Technologies and Emission Reductions in the Power Sector” prepared by the Office of Air and 

Radiation on April 18, 2006. 
28

V. Conclusion 

This technical support document has evaluated the revisions to the Arkansas CAIR NOX

Ozone Season trading program adopted on December 5, 2008 and July 26, 2009 and 

submitted as a revision to the Arkansas SIP on September 16, 2009. EPA’s evaluation 

demonstrates that the ADEQ has appropriately updated the IBR date to reflect EPA’s 

most recent revisions to the CAIR applicability. EPA also evaluated numerous formatting 

and typographical revisions and found those to improve clarity and readability of the SIP. 

It is recommended that EPA propose approval of the September 16, 2009 revision. 

Because these are noncontroversial revisions EPA should consider a direct final approval.