Environmental Quality, Air Quality

Section R307-110-28

Regional Haze

Notice of Proposed Rule

(Amendment)

DAR File No.: 34350
Filed: 01/06/2011 06:33:53 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section R307-110-28 incorporates by reference Utah's Regional Haze State Implementation Plan (SIP). The Air Quality Board adopted a comprehensive Regional Haze SIP in 2003 that was based on the recommendations of the Grand Canyon Visibility Transport Commission. This SIP contained provisions to address the multiple emission sources and pollutants that contribute to regional haze in national parks and wilderness areas throughout the West. The SIP was based on the regional haze rule established by EPA at 40 CFR 51.309. In 2005, 40 CFR 51.309 was vacated because it was linked to EPA's Best Available Retrofit Technology (BART) rule, which had been vacated in 2002. EPA revised the stationary source requirements in the regional haze rule in 2006 to respond to the court's concerns about BART. In 2008, the Air Quality Board adopted revisions to the stationary source provisions of the SIP to meet the requirements of the 2006 regional haze rule. The revised SIP established regional milestones for SO2 to ensure that significant emission reductions are achieved by 2018. The milestones establish the emission reduction goal without mandating how sources in the region will meet that goal. This allows sources to find the most cost-effective way to reduce the haze in the region. If the milestones are not met, then a backstop regulatory trading program will be triggered to guarantee that the environmental goals are met. Since 2008, the Utah Division of Air Quality has been working with EPA and the other participants (Wyoming, New Mexico, and the City of Albuquerque) in the regional program to further demonstrate that the SO2 milestones show greater reasonable progress than BART. During this timeframe, there have also been changes in the expectations for future emissions from power plants in the region that affect the underlying assumptions of the milestones. In the fall of 2010, the three states that are continuing to participate in the regional milestones and backstop trading program developed the proposed revisions to the regional milestone to address EPA's concerns.

Summary of the rule or change:

This amendment incorporates two sets of changes to the Regional Haze SIP Text. Proposed Changes to the SO2 Milestones and Backstop Trading Program: 1) the SO2 milestones for the years 2008-2018 have been changed. The proposed SO2 milestone in 2018 is 141,849 tons. Arizona is no longer participating in the trading program and is instead focusing resources on developing a single SIP under section 308 of the regional haze rule. The trading program was designed to accommodate changes and the milestone has been reduced to reflect the smaller number of sources in the program. The base year for the milestones (2006) has not been changed, but emission reductions between 2006 and 2010 have been included for individual plants. New source growth estimates for utilities have been reduced substantially to account for changing projections for new coal-fired power plants in the region. The new source growth estimate is 2,600 tons of SO2 for new plants in the region by 2018. All power plants that are subject to BART are assumed to meet the presumptive BART emission rate of 0.15 lb/MMBtu. This assumption is appropriate because the trading program was designed to achieve reasonable progress from all stationary sources of SO2, with BART as a secondary goal. After seven successful years of implementing the program, there is greater certainty about regional emissions; therefore, the headroom/uncertainty factor is no longer needed. A smelter set-side is no longer included in the program because this provision was primarily needed to address increased utilization of smelters in Arizona. The portion of the smelter set-aside attributed to Kennecott Utah Copper (100 tons) is insignificant within the context of the overall program; 2) several changes to the allocation methodology were made to reflect the reduced number of states and changing emissions in the region. A tribal set-aside of 2,500 allowances is included in the program. This set-aside is "below the line" and is available as a special allocation if the program is triggered. The renewable energy credit is no longer included in the program because other incentives are achieving the goal; 3) sections D.2 and D.3 of the SIP contain a summary of the stationary source provisions. These sections were revised to reflect the detailed changes described above; and 4) several definitions were changed in the Appendix to the SIP to reflect the changes described above. Proposed Changes to the 2008 SIP to Correct Errors and Clarify the Provisions of the SIP: 1) in Section D.6.c, Table 4 "Subject to BART Modeling" has been updated to reflect the final modeling that was completed in April 2007. The 2008 SIP included modeling results from an earlier draft from January 2007. The minor changes do not affect the determination of sources that are subject to BART; 2) in section D.6.d of the SIP, an error was discovered in the post-control BART modeling that is summarized in Table 7. This table was included for information purposes, and was not relied upon for the SIP analysis. The table has been removed from the SIP; 3) the estimated in-service date of the Hunter and Huntington upgrades were updated to reflect the current construction schedule; 4) other minor wording changes were made to section D.6 for consistency and to correct minor errors; and 5) section K.1.b of the SIP describes the projected changes in emissions in Utah and the GCVTC region. A number of graphs showing the expected decrease in visibility impairment due to these changes have been added to more clearly show the visibility benefit in neighboring states.

State statutory or constitutional authorization for this rule:

• Subsection 19-2-104(3)(q)

This rule or change incorporates by reference the following material:

• Updates State Implementation Plan Section XX, Regional Haze, published by Utah Division of Air Quality, 04/06/2011

Anticipated cost or savings to:

the state budget:

No cost or savings are anticipated with this rule change. No new requirements were created with this rule change that impact state budget.

local governments:

No cost or savings are anticipated with this rule change. No new requirements were created with this rule change that impact local government.

small businesses:

No cost or savings are anticipated with this rule change. No new requirements were created with this rule change that impacted small businesses.

persons other than small businesses, businesses, or local governmental entities:

No cost or savings are anticipated with this rule change. No new requirements were created with this rule change that impacted persons other than small businesses, businesses, or local government entities.

Compliance costs for affected persons:

No costs are anticipated with this rule change. No new requirements were created with this rule change.

Comments by the department head on the fiscal impact the rule may have on businesses:

This action reduces the milestone that Western Backstop (WEB) sources, as defined in Section R307-250-4, shall meet in order to not trigger the WEB Sulfur Dioxide Trading Program, Rule R307-250. If the milestones are not met, a penalty shall be incurred by sources. Current projections show that the amended milestones will be met; therefore, there is no anticipated cost or savings associated with this action.

Amanda Smith, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Environmental Quality
Air Quality
195 N 1950 W
SALT LAKE CITY, UT 84116-3085

Direct questions regarding this rule to:

• Kimberly Kreykes at the above address, by phone at 801-536-4042, by FAX at 801-536-4099, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/03/2011

Interested persons may attend a public hearing regarding this rule:

• 02/24/2011 01:00 PM, DEQ, Four Corners Conference Room, 195 N 1950 W, Salt Lake City, UT

This rule may become effective on:

04/06/2011

Authorized by:

Bryce Bird, Planning Branch Manager

R307. Environmental Quality, Air Quality.

R307-110. General Requirements: State Implementation Plan.

R307-110-28. Regional Haze.

The Utah State Implementation Plan, Section XX, Regional Haze, as most recently amended by the Utah Air Quality Board on [September 3, 2008]April 6, 2011, pursuant to Section 19-2-104, is hereby incorporated by reference and made a part of these rules.

 

KEY: air pollution, PM10, PM2.5, ozone

Date of Enactment or Last Substantive Amendment: [November 10, 2008]2011

Notice of Continuation: March 15, 2007

Authorizing, and Implemented or Interpreted Law: 19-2-104(3)(e)