Firnuently Asked Questir is rega 'ding. Act 1302 Implcmertation. Auzu-t 7, 2013

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1 Firnuently Asked Questir is rega 'ding Act 1302 Implcmertation Auzu-t 7, 2013 This document is intended to be a "living" document to assist the regulated community and our staff in the implementation of air permitting and planning in consideration of the provisions contained in Act 1302 of the 89 th General Assembly of the State of Arkansas, 2013 Regular Session (hereinafter "Act 1302"). ADEQ intends to update this document as new questions of general interest are raised. 1. Why is ADEQ creating this document? Act 1302 specifically and immediately prohibits ADEQ from considering air dispersion modeling when issuing permits in most circumstances. These questions and answers are intended to provide guidance as to how the new law alters pre-act 1302 permitting processes and the Department's path forward. 2. In view of the restrictions put in place by Act 1302, if the owner/operator voluntarily proposes and agrees to the use and consideration of air dispersion modeling for criteria pollutants during the permit decision making process, but does not submit dispersion modeling as part of the application can the Department continue the past practice of conducting an initial screening of emissions using modeling? Yes. It is the Department's position that if the owner/operator agrees to the use/consideration of air dispersion modeling related to criteria pollutants then we can use the screening procedures as a tool during our review and permit decision making process. If the initial screen indicates a National Ambient Air Quality Standard (hereinafter "NAAQS") compliance issue, the Department may require the owner/operator applicant to conduct refined modeling or revise its operational parameters in order to resolve NAAQS compliance issues prior to proceeding to a draft permit. 3. When is an owner/operator required to submit modeling data/a demonstration/alternative information/or a description of compliance to the Department? The Clean Air Act's requirements for preconstruction review have been incorporated into the Arkansas Pollution Control and Ecology Commission's (hereinafter "APC&EC") regulations in various places. Relevant sections an owner/operator should review in

2 order to ascertain its obligations in regards to the applicable requirement of protection of the NAAQS include, but are not limited to, the following regulatory provisions: 1. For Prevention of Significant Deterioration (hereinafter "PSD") sources: a. APC&EC Regulation 19, Chapter 9 (Group II sources from Interim Air Permitting Path Forward document). 2. For sources Minor for Title I and Minor for Title V (Group III sources from Interim Air Permitting Path Forward document): a. APC&EC Regulation 19, Chapter 3; b. APC&EC Regulation 19, Chapter 4; and c. APC&EC Regulation 19, Chapter For sources Minor for Title I and Major for Title V (Group IV sources from Interim Air Permitting Path Forward document): a. APC&EC Regulation 19, Chapter 3; b. APC&EC Regulation 19, Chapter 5; c. APC&EC Regulation 19, Chapter 11; and d. APC&EC Regulation If an owner/operator voluntarily "opts in" to the use/consideration of air dispersion modeling for criteria pollutants, can it later withdraw such decision? No. Once a decision has been tendered by an owner/operator to "opt in", that decision applies throughout the review and final decision making process for that application. 5. May an owner/operator "opt in" for one application and "opt out" for subsequent applications? Yes. The owner/operator will be asked to make a declaration to the Department for each application submitted in regard to the use/consideration of air dispersion modeling for criteria pollutants. 6. If an owner/operator "opts out" (does not voluntarily submit to and authorize air dispersion modeling for criteria pollutants), how will the Department process the application? Applications for non-title V sources (typically those that are not a major source as defined under APC&EC Regulation 26, Chapter 2) will continue to be processed without modeling of criteria pollutants (except for lead, see Item #12) and without a requirement to submit information that the new or modified sources can be constructed or modified to operate without exceeding a national ambient air quality standard.

3 Title V sources will be required to submit information regarding compliance with the applicable requirement of NAAQS protection for Department review before an application for new construction or modification of an existing source will be deemed administratively complete. 7. Will an application that has previously (pre-act 1302) been deemed to be "administratively complete" now be subject to another administrative completeness determination for the "opt-in/opt-out/n.a." declaration? No. "Administratively complete" determinations made prior to the effective date of Act 1302 will not be rescinded. However, applicants should be aware that ADEQ will be unable to further process applications that are pending without an acknowledgement from the owner/operator as to its intentions regarding the use/consideration of modeling (whether that be "opt-in, opt-ouvn.a.'9. 8. If dispersion modeling is used, what models and parameters will be used? Can I submit a screening model such as AERSCREEN? If dispersion modeling is performed, it must conform to APC&EC Reg This regulation requires that air dispersion modeling shall be based on the requirements specified in 40 C.F.R. Part 51, Appendix W 9. What constitutes acceptable alternative information/ description of compliance other than dispersion modeling? If applicable, the alternative information/ description of compliance must clearly show that the applicant is protective of the NAAQS at any point defined as ambient air, i.e. outside the fence line of a facility or other facility-specific ADEQ approved NAAQS compliance demonstration point. Other than that requirement, there are no constraints on the submittal of the alternative information/ description of compliance. 10. Can I use the last permit modeling as alternative information/description of compliance without committing to new modeling? Yes, as long as the previous model is still valid (methodology, sources, same NAAQS, etc.) and any increase or change in emissions is accounted for in the previously permitted (PTE) analysis. 11. Are revisions to facility operations that do not increase emission rates or add new criteria pollutant emissions automatically excluded from submission of a NAAQS compliance information/description of compliance? No. A revision to facility operations could be any change in the nature of the emission source, such as stack height, temperature, etc. (also refer to FAQ #3). Revisions of this

4 nature may not increase the rate of emissions addressed in an existing permit but could very well impact the dispersion characteristics (and compliance with the NAAQS) upon which the permit was based. If a revision impacts compliance with the NAAQS in ambient air (protection of NAAQS), the owner/operator is subject to NAAQS compliance information/description of compliance. 12. How are lead emissions affected? Permit applications that indicate lead emissions greater than 0.5 tons per year will be present will be required to submit modeling or other information/description of compliance for all lead emissions in regard to the NAAQS. Federal ambient air monitoring requirements at 40 CFR 58, Appendix D 4.5(a) specify that all non-airport lead emission sources of 0.5 tpy or more be monitored using a source-specific monitor unless EPA approves a wavier for the source-specific monitor based on the source contribution to ambient air impact of less than 50% of the NAAQS. Demonstrations for waivers are typically based on modeling; presently all affected lead emitters at or above the 0.5 tpy threshold are excluded from the source-specific monitoring requirements due to approved waivers. If a new or modified source chooses not to submit modeling or other form of information to support a waiver demonstration, source-specific monitors will be required to be sited. Lead compounds are considered hazardous air pollutants (hereinafter "HAPs") and will also be evaluated as part of the Non-Criteria Pollutant Control Strategy (hereinafter "NCPCS') 13. Does Act 1302 impact the analysis of non-criteria pollutants in permit applications? Act 1302 only addresses criteria pollutants. 14. Are HAPs that are also criteria pollutants, such as organic HAP for VOC excluded from modeling per Act 1302 unless consent is given? As strictly related to a NAAQS, organic HAPS for VOC will be addressed consistent with other criteria pollutants. However, these emissions can still be evaluated as part of the NCPCS. 15. If an owner/operator submits its alternative information/description of compliance regarding protection of the NAAQS, but the Department is not "reasonably satisfied" with the submittal, what action will ADEQ take on the application? The Department always strives to work with a permit applicant in order to ultimately arrive at a draft decision of an "Intent to Approve". Given that ADEQ cannot predict

5 what types of information/ description of compliance may be provided by an owner/operator, Department review will be made on a case-by-case basis initially. 16.If a Draft Permit has been issued (prior to the enactment of Act 1302) that included use/consideration of modeling of criteria pollutants and the applicant "opts out" how will the permit process proceed? The Draft Permit cannot proceed to Final Permit issuance in this circumstance. Both the permit application and the permit record will need to be revised to remove modeling data. The Department would have to re-evaluate the application without using or considering air dispersion modeling of criteria pollutants. If the application is related to the construction or modification of a Title V source and is not subject to PSD review, another form of information/ description of compliance relating to protection of the NAAQS would need to be submitted for Department review. A new draft permit and administrative record for that proposed decision would result from the review without modeling consideration. 17.The pre-act 1302 practice of the Department was that non-title V (minor) source applications (those that have emissions that fall below Title V major definition) were not subjected to air dispersion modeling nor were applicants required to submit an alternative form of information/description of compliance regarding non-interference with/protection of the NAAQS. VIM is practice continue to be applied? The pre-act 1302 practice related to non-title V source applications will continue for now. However, with the adoption of the new/revised NAAQS with lower concentrations and shorter averaging times, the Department will be re-evaluating the technical and scientific basis for continuation of this practice. This will be addressed in the development of the upcoming NAAQS State Implementation Plan (hereinafter "SIP") contemplated by Act Any proposed SIP) revision will be subject to public notice and comment prior to submission to EPA for review and action. 18. How will the Department respond to a third party's submission of modeling as official comments to a Draft Permit where the owner/operator "opted out" of the use/consideration of modeling of criteria pollutants? The response to comment document developed in regard to the final permitting decision will explain that in accordance with Act 1302, the Department cannot review or consider the third party's modeling in arriving at a final decision on the application.

6 19.1n relation to the above question, if the owner/operator chose to request the Department to use/consider the third party submitted modeling data or other modeling data subsequent to the issuance of the Draft Permit, could the Department address such modeling considerations in the response to comments and proceed to Final decision? A new draft permit and administrative record would have to be public noticed for public comment before moving to a Final decision. In such a case the original application may have to be withdrawn by the applicant and a new application submitted for public review and comment. 20.Will compliance with the applicable requirement of NAAQS protection be evaluated through the SIP development process as contemplated by Act 1302? The federal Clean Air Act mandates that each state evaluate its air quality when new or revised NAAQS are promulgated. Act 1302 does not alter our obligations in this regard. However, the Act does establish a new kind of SIP a NAAQS SIP - that directs the Department to "establish measures for the attainment and maintenance of the NAAQS" and specifically prohibits the use or consideration of air dispersion modeling in certain permitting decisions unless authorized by the source owner/operator until such provisions are incorporated into a revised SIP submitted to EPA. Regardless of the new requirements for a NAAQS SIPs under Act 1302, a "modernization" of the way ADEQ has historically developed SIPs for areas of the state that were not designated as Non- Attainment is in order. Much of the reasoning for this is based on the lower concentrations and shorter averaging times of some of the new or revised standards and the current values for some pollutants at existing monitoring stations. The development of SIPs will place greater emphasis on potential control measures in areas of the State that are near the NAAQS. The overall goal, as always, is to protect the NAAQS and maintain healthy air for the citizens of the State. In areas that are designated as non-attainment for a pollutant, the goal will be to return the area to attainment within EPA specified timeframes. 21.1s there a need to expand the existing monitoring network, particularly in view of the new or revised federal NAAQS in areas of the state that can reasonably be expected to be in excess of the NAAQS? Expansion, beyond that required by EPA monitoring rules, at least with special purpose or temporary monitors, may be necessary based on pollutant load analysis conducted for NAAQS SIP development and will be considered as attainment/non-attainment recommendations are made. 22.What happens when the new NAAQS for PM2.5, NO 2 and SO 2 are adopted?

7 Owners/operators proposing projects involving new or modified sources that are subject to permitting under Arkansas regulations will need to consider proposed emissions for compliance with the new standards when preparing permit applications. Existing sources without any change in emissions do not need to address the new standards in the permit application. 23.Can a facility withdraw the permit application once it agrees to modeling and resubmit it without modeling? No, if the modeling predicted NAAQS exceedances. Otherwise the Department will have a record of possible nonattainment issues as part of the public record; thus the permit will not be defensible nor comply with the Department's mandate under existing regulations. 24. Has EPA provided any input to ADEQ in regard to permit procedural changes the Department must implement in order to comply with Act 1302? Yes. EPA has reviewed our interim path forward procedures. (Please see the ADEQ web site for a copy of the interim procedures.) EPA has expressed concerns in regard to the impact that Act 1302 and the interim procedures may have in relation to ADEQ's ability to comply with the requirements of the Arkansas SIP and the federal requirements as set forth at 40 C.F.R and the Clean Air Act Section 110(a)(2)(C). As a result, EPA has stated that effective oversight by ADEQ and EPA of the SIP-approved air permitting requirements, including the minor New Source Review (NSR) program is necessary to ensure that new permitted sources or modification will not interfere with attainment or maintenance of NAAQS nor lead to health based impacts to the public. Additionally, EPA has requested: * ADEQ maintain a publically available list of new sources and proposed minor modifications that are less than 100 tpy (Group III - Non-Title V minors) and for Group IV (Title V Non-PSD New Source Review) Sources. For Group IV Sources, EPA requests that the above mentioned list identify those applicants that "opt-out" of the use/consideration of air dispersion modeling. EPA has also advised that its review of its authority under CAA is continuing and additional actions may be necessary if it is determined that implementation of Act 1302 would result in a violation of applicable portions of the control strategy or interfere with attainment or maintenance of the NAAQS. EPA's letter may be viewed at letter to adeq pdf

8 25. Are de mhimis changes (APC&EC Reg (c)) and minor mod!fications (APCaEC Reg ) excluded from an owner/operator's requirement to submit information/description of compliance regarding non-interference with/protection of the NAAQS? A De minimis change is not considered to be "Modification" as that term is defined in Regulation 19. As such, some of the NAAQS protection obligations are not necessarily imposed; however, an applicant should also look to Regulation to ascertain that de minimis changes being contemplated will satisfy the General Emission Limitation requirement described therein (also refer to FAQ #11). Permit changes under Regulation 26, among other criteria, must not violate any applicable requirement (which includes protection of the NAAQS) in order to be processed as minor modifications. See Item # 3 above for further information relative to protection of the NAAQS applicable requirements.