DAR File No. 42976

Environmental Quality, Air Quality

Section R307-110-17

Section IX, Control Measures for Area and Point Sources, Part H, Emission Limits

Notice of Proposed Rule

(Amendment)

DAR File No.: 42976
Filed: 06/11/2018 12:50:07 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is being amended to change the effective date to match the anticipated Air Quality Board approval date of amendments to Section IX, Part H of the Utah State Implementation Plan (SIP).

Summary of the rule or change:

This amendment changes the amendment date from 12/07/2016 to 09/05/2018.

Statutory or constitutional authorization for this rule:

• Subsection 19-2-104(1)(a)

This rule or change incorporates by reference the following material:

• Updates Utah State Implementation Plan, Emission Limits and Operating Practices, Section IX, Part H, published by Division of Air Quality, 09/05/2018

Anticipated cost or savings to:

the state budget:

The state budget will have anticipated costs due to BACT modifications required on equipment at a state funded university. There is a potential for fiscal benefits to the state budget through increased health of persons and a decrease in medical cost sharing, but the impact is inestimable at this time.

local governments:

This rule change is not expected to have any fiscal impacts on local government expenditures, because no local governments operate or finance the operations of businesses that will be affected by this rule change. There is a potential for fiscal benefits to local governments through increased health of persons and a decrease in medical cost sharing, but the impact is inestimable at this time.

small businesses:

This rule change is not expected to have any fiscal impacts on small businesses revenues or expenditures, because no businesses affected by this rule have less than 50 employees.

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

This rule change is expected to have fiscal impacts on businesses that are required to modify equipment to comply with updated BACT requirements as identified in Section IX, Part H of the Utah State Implementation Plan.

Compliance costs for affected persons:

The costs associated with equipment modifications will vary from source to source depending on the required equipment, maintenance, and labor associated with each project. The costs for each source range from $233,000 to $28,200,000. Detailed descriptions of cost and equipment are listed in individual TSD reports for each source, found at https://deq.utah.gov/legacy/pollutants/p/particulate-matter/pm25/serious-area-state-implementation-plans/control-strategies.htm.

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

The businesses listed in Part H will have to comply with the requirements of the SIP. The costs associated with Part H will mostly be made up of equipment modifications necessary to comply with the TSD BACT analysis. These costs will vary depending on the size of the source and what equipment is needed. The requirements in Part H need to be enforceable and meet the standard of BACT.

Alan Matheson, Executive Director

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

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

Direct questions regarding this rule to:

• Thomas Gunter at the above address, by phone at 801-536-4419, by FAX at , 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:

08/15/2018

This rule may become effective on:

10/04/2018

Authorized by:

Bryce Bird, Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2019	FY 2020	FY 2021
State Government	$5,710,600	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$79,770,250	$0	$0
Other Person	$0	$0	$0
Total Fiscal Costs:	$85,480,850	$0	$0
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Benefits:	$0	$0	$0
Net Fiscal Benefits:	-$85,480,850	$0	$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

For a complete listing of NAICS codes used in this analysis, please contact the agency. There are ten companies operating in Utah that will incur costs necessary to comply with the amendments to the Utah State Implementation Plan, Emission Limits and Operating Practices, Section IX, Part H. These businesses will experience a fiscal cost associated with the installation or replacement of equipment that meets or exceeds Best Available Control Technology (BACT). BACT is required in serious nonattainment areas by Federal law. Although the entirety of the fiscal impact is reported in 2019, it is possible that upgrades may take until 2024 to complete. It is the agency's belief that a majority of upgrades or replacements will be completed by the end of 2019. The costs of upgrades or replacements vary between $233,000 and $28,200,000, depending on each company's individual requirements.

 

It is possible that Local and State Governments could incur a fiscal benefit due to increase air quality and its relation the overall health of affected residents. These benefits would be a result of reductions in subsidized medical coverage to residents suffering from medical conditions connected to air quality. Any qualitative information that would provide estimates of the total benefits will not be known until after the upgrades or replacements of equipment at industrial sites are installed. Therefore, any benefit analysis towards the local and state governments is inestimable at this time.

 

The Executive Director of the Department of Environmental Quality, Alan Matheson, has reviewed and approved this fiscal analysis.

 

 

R307. Environmental Quality, Air Quality.

R307-110. General Requirements: State Implementation Plan.

R307-110-17. Section IX, Control Measures for Area and Point Sources, Part H, Emission Limits.

The Utah State Implementation Plan, Section IX, Control Measures for Area and Point Sources, Part H, Emission Limits and Operating Practices, as most recently amended by the Utah Air Quality Board on [December 7]September 5, 201[6]8, 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: [December 8, 2016]2018

Notice of Continuation: January 27, 2017

Authorizing, and Implemented or Interpreted Law: 19-2-104